/raid1/www/Hosts/bankrupt/TCRAP_Public/121218.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
Tuesday, December 18, 2012, Vol. 15, No. 251
Headlines
A U S T R A L I A
BULLER WINES: Family Owned Winery Enters Administration
MIDWEST VANADIUM: Moody's Cuts CFR to 'Caa2'; Outlook Negative
C H I N A
* CHINA: Moody's Says Banking System's Asset Quality Negative
H O N G K O N G
EVERTEAM TRADING: Final Meetings Set for Jan. 14
FNT PURCHASING: Members' Final Meeting Set for Jan. 8
GLOBAL STAR: Camballaw Steps Down as Liquidator
GOLDEN THEME: Sung Mi Yin Mella Steps Down as Liquidator
GRANDWARD INVESTMENTS: Final General Meeting Set for Jan. 10
HK CYBERGAMES: Final General Meeting Set for Dec. 29
IHC MOTION: Hans Pieter Slappendel Steps Down as Liquidator
JIN-YUE TECHNOLOGIES: Members' Final Meeting Set for Jan. 8
JOINT PACIFIC: Members' Final Meeting Set for Jan. 10
MERRY PEACE: Members' Final Meeting Set for Jan. 18
MIGHTYWAY INVESTMENTS: Final General Meeting Set for Jan. 11
OTTO REGENT: Creditors' Proofs of Debt Due Jan. 7
PMW-GB AGENCY: Members' Final General Meeting Set for Jan. 11
POWER BASE: Creditors' Meeting Set for Dec. 19
PROFIT LEAD: Creditors' Meeting Set for Dec. 28
ROVI HK: Creditors' Proofs of Debt Due Jan. 8
R.R. DONNELLEY: Creditors' Proofs of Debt Due Dec. 28
SONEX TRADERS: Members' Final General Meeting Set for Jan. 10
STIEFEL LABORATORIES: Ying and Chan Step Down as Liquidators
WANG WAN: Members' Final Meeting Set for Jan. 8
I N D I A
AJAY PROTECH: ICRA Assigns 'B' Rating to INR8.23cr Cash Credit
A.R.S. METALS: ICRA Reaffirms 'BB' Rating on INR18.70cr Loan
ASACO PRIVATE: ICRA Reaffirms '[ICRA]D' Rating on INR29.1cr Loans
BMM CEMENTS: ICRA Cuts Rating on INR378cr Loans to '[ICRA]BB-'
CENTURY TEXOFIN: ICRA Reaffirms 'B+' Rating on INR20.71cr Loans
DEEPAK COSMO: ICRA Assigns 'B' Rating to INR27cr Fund-Based Loan
EURASIAN MINERALS: ICRA Puts '[ICRA]C' Rating on INR12.5cr Loans
HES INFRA: Delays in Loan Payment Cues ICRA Junk Ratings
IQBAL AHMED: ICRA Assigns '[ICRA]B' Rating to INR25.5cr Loans
LOK CHEMICALS: ICRA Hikes Rating on INR20cr Loan to 'BB+'
SAINOV SPIRITS: ICRA Assigns 'B' Rating to INR75cr LT Loan
SHREE KANTA: ICRA Rates INR5cr Fund Based Limits at '[ICRA]B'
SUPER STAINLESS: ICRA Rates INR8cr Cash Credit at '[ICRA]B'
TRIBHUVAN SPINTEX: ICRA Assigns 'B+' Rating to INR30.5cr Loans
J A P A N
GODO KAISHA 6: S&P Lowers Ratings on Two Note Classes to 'CC'
SHARP CORP: Fitch Keeps 'B-' IDR on Rating Watch Negative
SHINSEI BANK: S&P Raises Subordinated Debt Rating to 'BB+'
* JAPAN: Moody's Says Mega-Banks' Growth Not Yet Credit Negative
K O R E A
KOREA GAS: S&P Revises Stand-Alone Credit Profile to 'bb+'
N E W Z E A L A N D
CAPITAL + MERCHANT: SFO Losses Appeal on 'Hub' Deals
ROSS ASSET: Court Appoints Liquidators to RAM and 3 Related Firms
* NEW ZEALAND: Developer Avoids Jail for Bankruptcy Fraud
P H I L I P P I N E S
DEVELOPMENT BANK: Fitch Affirms 'BB+' LT Issuer Default Rating
LAND BANK: Fitch Hikes LT Issuer Default Ratings to 'BB+'
S I N G A P O R E
BAXUS MARINE: Court Enters Wind-Up Order
NORDLINGER AUTOMATION: Court to Hear Wind-Up Petition Dec. 21
QIAN HUI: Creditors' Proofs of Debt Due Dec. 28
SEALS INVESTMENT: Creditors' Proofs of Debt Due Dec. 31
WISELEY MANAGEMENT: Court to Hear Wind-Up Petition Dec. 21
X X X X X X X X
* BOND PRICING: For the Week Dec. 10 to Dec. 14, 2012
- - - - -
=================
A U S T R A L I A
=================
BULLER WINES: Family Owned Winery Enters Administration
-------------------------------------------------------
Cara Waters at SmartCompany reports that Buller Wines entered
into administration last week. Simon Wallace-Smith and Salvatore
Algeri -- salgeri@deloitte.com.au -- of Deloitte Touche Tohmatsu
were appointed as administrators to the historic family owned
winery founded in 1921, the report says.
According to the report, the causes of the winery's collapse are
still not clear but Australia's wine industry has been struggling
as a result of exports which have been hurt by recession in key
export markets and a soaring Australian dollar, which has made
wine exports uncompetitive against rising competition from new
low-cost wine producers.
At the same time, wineries have had to deal with a total loss of
market power to the dominant supermarket giants, changing
consumer preferences and a vast oversupply of wine and wine
grapes which have forced down prices and forced many producers
out of business, SmartCompany states.
Simon Rushton, spokesperson for Deloitte, told SmartCompany he
was unable to provide any details of the cause of the
administration or the major creditors impacted by the collapse
until the first meeting of creditors, which will be held at the
end of this week.
"It's a matter of business as usual as far as the business is
concerned while the administrators review the situation,"
SmartCompany quotes Mr. Rushton as saying.
A first meeting of creditors will be held on December 21 at
Deloitte's offices in Melbourne.
Buller Wines has around 25 employees and is a fourth generation
family winery which sells wine in Australia, New Zealand,
Singapore, Hong Kong, China, Canada, the USA, the UK and Denmark.
Buller Wines is based in Rutherglen and Swan Hill in Victoria.
MIDWEST VANADIUM: Moody's Cuts CFR to 'Caa2'; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
senior secured ratings of Midwest Vanadium Pty Ltd (MVPL) to Caa2
from Caa1. The outlook remains negative.
Ratings Rationale
"The rating downgrade reflects continued concerns with regard to
MVPL's capacity to maintain sufficient liquidity to fund ongoing
ramp up and meet its obligations to service its debt", says
Matthew Moore, a Moody's Assistant Vice President -- Analyst.
Slower than expected ramp-up of ferrovanadium production due to
performance issues in its crushing, milling and beneficiation
circuit has delayed cash flow generation.
The company recently secured the consent of the majority of its
US$335 million secured note holders to provide for the release of
US$9.9 million from MVPL's existing restricted cash reserves.
"The funds released provide much needed funding for project ramp
up. However, the release of funds from the restricted cash in the
interest reserve account raises the degree of uncertainty around
the company's ability to meet future debt service requirements",
says Moore.
In addition to the $335 million secured notes raised in February
2011, MVPL's parent company, Atlantic Limited (unrated), has
raised over $116 million in additional capital in the form of
equity and convertible bonds between 2011 and September 2012 to
support MVPL's liquidity. While these actions improved liquidity
for working capital purposes and project ramp up, the company is
yet to reach project completion. The company forecasts production
to be in the range of 140-171 tonnes for the quarter ending
December 2012, compared to design capacity of 6,200 -- 6,700
tonnes per annum.
The company is currently targeting to reach breakeven levels of
production by the March Quarter of 2013. "Moody's believes this
would mean MVPL could require additional external funding for
working capital and debt service until it reaches breakeven
levels," added Moore.
Moody's also understands that the company expects to receive a
Research and Development tax claim of around $22 million from the
Australian Taxation Office. The claim related to eligible
research and development activities during the commissioning of
the Windimurra plant in 2011/12 financial years. Moody's notes
that MVPL's liquidity position and overall credit profile would
improve if the company receives this claim in a timely manner.
The negative outlook reflects Moody's expectation that the
company's liquidity will continue to be tight until at least it
reaches breakeven levels of production. A further downgrade would
be considered if liquidity deteriorates more rapidly than
expected or there are further material delays in production ramp
up.
A delay in the company receiving the expected tax claim prior to
the next interest payment on the bonds would also place negative
pressure on the rating.
The rating/outlook could undergo a favorable trend if MVPL is
able to achieve the current ramp up schedule and start generating
positive free cash flow, receives the $22 million tax refund as
expected and/or the company secures further external funding,
such that liquidity position strengthens to a level that Moody's
views as comfortably supporting its ramp up and financial
obligations.
The principal methodology used in rating Midwest Vanadium Pty Ltd
was the Global Mining Industry Methodology published in May 2009.
Midwest Vanadium Pty Ltd a 100% owned subsidiary of Atlantic Ltd
(Atlantic), an Australian publicly listed company. The company
has completed the redevelopment of the Windimurra vanadium mine,
located approximately 400km east of Geraldton in central Western
Australia. MVPL holds tenements covering a 27 kilometer strike
length. The project is expected to produce 6,300 tonnes of
contained vanadium and has an expected mine life of over 28
years.
=========
C H I N A
=========
* CHINA: Moody's Says Banking System's Asset Quality Negative
-------------------------------------------------------------
Moody's Investors Service says the outlook for the Chinese
banking system for the next 12-18 months remains stable despite
an economic slowdown and long-term challenges because of
deregulation.
"China's economic performance has come in at the weaker end of
the 7.5%-8.5% GDP growth range that we had assumed in our
previous outlook for the banking system in April," says Bin Hu, a
Moody's Vice President and Senior Analyst, who speaking on the
release of Moody's latest "Banking System Outlook -- China".
"Nonetheless, we expect long-term economic growth drivers, such
as urbanization and productivity gains, to underpin a stable and
moderate rate of growth," says Mr. Hu.
"Furthermore, our baseline GDP growth assumption of 7%-8% in 2013
continues to support our expectation that the operating
environment of Chinese banks will remain stable," says Mr. Hu.
"At the same time, softer economic indicators, an acceleration
towards interest-rate liberalization, and signs of rising non-
performing loans (NPLs) are challenging the banks."
"Nevertheless, our overall assessment is that the Chinese banks
will, by and large, weather these threats over the next 12 to 18
months" adds Mr. Hu.
This latest report assesses the banking system's asset quality as
negative, based in part on the latest Chinese bank results, which
signal a rise in problems in this area, and Moody's expectation
of more visible NPL deterioration throughout 2013.
"Most of the asset quality pressures have been felt in export-
related industries located in the coastal regions, and these
sectors, as well as sectors with overcapacity, will continue to
be the principal sources of new problem loans and credit costs in
2013," adds Mr. Hu.
"However, a material deterioration during the horizon of our
outlook now seems unlikely, as we note recent progress in
addressing significant areas of asset quality concern," says
Mr. Hu.
The outlook on profitability is modestly negative, with the
growth of pre-provision profits slowing because of the impact of
lower interest rates and interest-rate liberalization.
Moody's research shows that the sector's net interest margin,
which is currently healthy, will decline modestly by 4-6 basis
points in 2012, and Moody's base case assumes a further drop of
10-13 basis points in 2013 as a result of the greater flexibility
the banks now enjoy in setting interest rates.
In terms of capitalization, with a stable assessment, the banks
are protected from rising defaults by their strong loss reserves
and capital buffers. Moreover, their adoption of the Basel III
regime will have a limited impact on capitalization. The banks
are also taking a more proactive approach to capital planning,
and those with weaker capital positions will be keen to raise
equity when market conditions improve.
Liquidity and funding positions are stable. Although the
liberalization of interest rates and the continued growth of
disintermediation channels may lead to lower stability in
deposits over time, they will not materially impact system
liquidity over the horizon of this outlook.
Moody's assessment of systemic support is stable for the system
in general, and material changes to Moody's assumptions in this
area are not expected during the outlook horizon even though the
regulators are reviving efforts to establish a deposit insurance
scheme.
Moody's rates 16 banks in China. They collectively account for
about 67% of total system assets.
================
H O N G K O N G
================
EVERTEAM TRADING: Final Meetings Set for Jan. 14
-----------------------------------------------
Members and creditors of Everteam Trading Limited, which is in
creditors' voluntary liquidation, will hold their final meetings
on Jan. 14, 2013, at 10:00 a.m., and 10:30 a.m., respectively at
8/F, Price's Building, 10 Chater Road, Central, in Hong Kong.
At the meeting, Fergal Power and Patrick Cowley, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
FNT PURCHASING: Members' Final Meeting Set for Jan. 8
-----------------------------------------------------
Members of FNT Purchasing Limited, which is in members' voluntary
liquidation, will hold their final general meeting on Jan. 8,
2013, at 10:00 a.m., at 2/F, Block A and B, Tontex Industrial
Building, 2-4 Sheung Hei Street, San Po Kong, in Kowloon.
At the meeting, Chen Min Chun, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
GLOBAL STAR: Camballaw Steps Down as Liquidator
-----------------------------------------------
Leigh Man Sung Camballaw stepped down as liquidator of Global
Star Industrial Investment Consultants Limited on Nov. 30, 2012.
GOLDEN THEME: Sung Mi Yin Mella Steps Down as Liquidator
--------------------------------------------------------
Sung Mi Yin Mella stepped down as liquidator of Golden Theme
Investments Limited on Nov. 30, 2012.
GRANDWARD INVESTMENTS: Final General Meeting Set for Jan. 10
------------------------------------------------------------
Members of Grandward Investments Limited, which is in members'
voluntary liquidation, will hold their final general meeting on
Jan. 10, 2013, at 10:00 a.m., at Rm 1102, 11/F, Henan Building,
23 Jaffe Road, Wanchai, in Hong Kong.
At the meeting, Lee Siu Yin, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HK CYBERGAMES: Final General Meeting Set for Dec. 29
----------------------------------------------------
Members of Hong Kong Cybergames Organization Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on Dec. 29, 2012, at 10:00 a.m., at 2/F, 101 Kwong Fuk
Road, Tai Po, in New Territories.
At the meeting, Lau Wai Yung Alice, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
IHC MOTION: Hans Pieter Slappendel Steps Down as Liquidator
-----------------------------------------------------------
Hans Pieter Slappendel stepped down as liquidator of IHC Motion
Control Hong Kong Limited on Nov. 29, 2012.
JIN-YUE TECHNOLOGIES: Members' Final Meeting Set for Jan. 8
-----------------------------------------------------------
Members of Jin-Yue Technologies Limited, which is in members'
voluntary liquidation, will hold their final meeting on Jan. 8,
2013, at 2:00 p.m., at Room 1903, Paul Y. Centre, 51 Hung To
Road, Kwun Tong, Kowloon, in Hong Kong.
At the meeting, Chan Cho Wing, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
JOINT PACIFIC: Members' Final Meeting Set for Jan. 10
-----------------------------------------------------
Members of Joint Pacific International Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on Jan. 10, 2013, at 10:30 a.m., at Room 2111, 21 Floor,
Wing On Centre, 111 Connaught Road Central, in Hong Kong.
At the meeting, Tong Piu, the company's liquidator, will give a
report on the company's wind-up proceedings and property
disposal.
MERRY PEACE: Members' Final Meeting Set for Jan. 18
---------------------------------------------------
Members of Merry Peace Enterprises Limited, which is in members'
voluntary liquidation, will hold their final meeting on Jan. 18,
2013, at 10:00 a.m., at Flat C, 26/F, Tsui Kung Mansion, Taikoo
Shing, in Hong Kong.
At the meeting, Yan Shui Lau Francis, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
MIGHTYWAY INVESTMENTS: Final General Meeting Set for Jan. 11
------------------------------------------------------------
Members of Mightyway Investments Limited, which is in members'
voluntary liquidation, will hold their final general meeting on
Jan. 11, 2013, at 10:30 a.m., at the Meeting Room of Hang Seng
Bank Limited Level 8, 83 Des Voeux Road Central, in Hong Kong.
At the meeting, Li Chi Chung and Tang Yam Lun Alan, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
OTTO REGENT: Creditors' Proofs of Debt Due Jan. 7
-------------------------------------------------
Creditors of Otto Regent Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Jan. 7,
2013, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Nov. 29, 2012.
The company's liquidator is:
Lam Ying Sui
Allied Kajima Building
138 Gloucester Road
Wanchai, Hong Kong
PMW-GB AGENCY: Members' Final General Meeting Set for Jan. 11
-------------------------------------------------------------
Members of PMW-GB Agency Limited, which is in members' voluntary
liquidation, will hold their final general meeting on Jan. 11,
2013, at 10:00 a.m., at Flat C, 2/F, Block 2, Sai Kung Garden,
No. 16 Chan Man Street, Sai Kung, New Territories, in Hong Kong.
At the meeting, Yang Chun Thomas, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
POWER BASE: Creditors' Meeting Set for Dec. 19
----------------------------------------------
Creditors of Power Base Global Logistics Company Limited will
hold their meeting on Dec. 19, 2012, at 11:30 a.m., for the
purposes provided for in Sections 241, 242, 243, 244, 251, 255A
and 283 of the Companies Ordinance.
The meeting will be held at 29th Floor, Caroline Centre, Lee
Gardens Two, 28 Yun Ping Road, in Hong Kong.
PROFIT LEAD: Creditors' Meeting Set for Dec. 28
-----------------------------------------------
Creditors of Profit Lead (Hong Kong) Limited will hold their
meeting on Dec. 28, 2012, at 12:30 p.m., for the purposes
provided for in Sections 241, 242, 243, 244, 251 and 255A of the
Companies Ordinance.
The meeting will be held at 5/F, Kam Sang Building, 255-257 Des
Voeux Road Central, Sheung Wan, in Hong Kong.
ROVI HK: Creditors' Proofs of Debt Due Jan. 8
---------------------------------------------
Creditors of Rovi Hong Kong Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Jan. 8, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Lay Hong Tan
John Chi Wai Wong
21/F, Edinburgh Tower
The Landmark
15 Queen's Road
Central, Hong Kong
R.R. DONNELLEY: Creditors' Proofs of Debt Due Dec. 28
-----------------------------------------------------
Creditors of R.R. Donnelley Financial Asia Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Dec. 28, 2012, to be included in the company's
dividend distribution.
The company's liquidators are:
Edward Simon Middleton
Lui Yee Man
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
SONEX TRADERS: Members' Final General Meeting Set for Jan. 10
-------------------------------------------------------------
Members of Sonex Traders Limited, which is in members' voluntary
liquidation, will hold their final general meeting on Jan. 10,
2013, at 10:00 a.m., at 4304, 43/F, China Resources Building, at
26 Harbour Road, Wanchai, in Hong Kong.
At the meeting, Heng Poi Cher, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
STIEFEL LABORATORIES: Ying and Chan Step Down as Liquidators
-------------------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Stiefel Laboratories (Hong Kong) Limited on Nov. 28, 2012.
WANG WAN: Members' Final Meeting Set for Jan. 8
-----------------------------------------------
Members of Wang Wan World-Wide Limited, which is in members'
voluntary liquidation, will hold their final meeting on Jan. 8,
2013, at 10:00 a.m., at Rooms 201-205, at 2nd Floor, Alliance
Building, 130-136 Connaught Road Central, in Hong Kong.
At the meeting, Ng Kwok Tung and Chan Wai Kee, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
=========
I N D I A
=========
AJAY PROTECH: ICRA Assigns 'B' Rating to INR8.23cr Cash Credit
--------------------------------------------------------------
ICRA has assigned an '[ICRA]B') rating to the INR 2.23 crore term
loan and INR 6.00 crore cash credit facility of Ajay Protech
Private Limited. ICRA has also assigned an '[ICRA] A4' rating to
the INR 3.50 crore short term non-fund based facilities of APPL.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 6.00 [ICRA]B assigned
Term Loan 2.23 [ICRA]B assigned
Bank Guarantee 3.50 [ICRA]A4 assigned
The assigned ratings are constrained by APPL's small scale of
operation with limited track record, moderate order book
dominated by subcontracted orders offering low profitability;
uncertainty on fresh contracts limiting revenue visibility and
high competitive intensity in the construction segment.
The ratings, however, favorably consider the experience of the
promoters in the construction business and favorable demand
outlook for the construction sector given the government focus on
infrastructure development.
Established in April 2011, Ajay Protech Private Limited is
involved in engineering, procurement and construction (EPC) of
roads and bridges. It is promoted by Mr. Amratlal, Mr. Arvindh
and Mr. Chandresh Patel. The company has recently received "AA"
class contractor certificate in February 2012 from Government of
Gujarat. Currently the company is working on four projects on
subcontract basis with outstanding order book position of INR
78.17 crore.
Recent Results
The company has reported an operating income of INR 22.37 crore
and a net profit of INR0.88 crore for the FY 2012.
A.R.S. METALS: ICRA Reaffirms 'BB' Rating on INR18.70cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB' on
INR18.70 crore1 fund based facilities of A.R.S. Metals Limited.
The outlook on the long-term rating is stable. ICRA has also
reaffirmed the short-term rating of '[ICRA]A4' on INR63.00 crore
non-fund based facilities of ARSML.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund based facilities 18.70 [ICRA]BB (Stable)
Reaffirmed
Non fund based facilities 63.00 [ICRA]A4 reaffirmed
The reaffirmation of ratings considers the experience of
promoters in manufacture of TMT bars, the Company's established
presence and distribution network in the market for TMT bars in
Tamil Nadu and the long-term favorable outlook for the
construction sector which is expected to drive business growth.
The ratings also consider the cyclicality inherent in the steel
business and the high competition in a fragmented and
commoditized market for TMT bars, amidst the prevailing weak
operating environment, which entails risk of volatility in cash
accruals and restricts scope for margin expansion. While the
unfavorable power situation in the state of Tamil Nadu impacts
the production capacities, it is partly mitigated through
purchase of power from third parties. Further, commissioning of
the power plant, which is under construction, is expected to
mitigate this risk. The capital expenditure of INR325 crore
towards setting up the aforementioned power plant, which is being
funded through a leveraged debt-equity mix of 3:1, is likely to
result in the capital structure and coverage metrics being
stretched over the medium term. ARSML's high working capital
intensity, coupled with high interest costs as well as debt
repayments, is likely to exert pressure on future cash flows.
Company Profile Incorporated in 1990, ARSML is primarily engaged
in the manufacture of ingots, billets and TMT bars. The Company
has its manufacturing facility at Gummidipoondi (near Chennai,
Tamil Nadu). It has capacity to manufacture 153,000 TPA of
ingots/billets and 120,000 TPA of TMT bars. The ingots and
billets manufactured by the Company are captively consumed, with
the surplus production being sold to third parties. The Company
is currently setting up a 60 MW thermal power plant at an
estimated cost of INR325 crore, which is expected to commenced
production during the last quarter of the current fiscal. The
Company is closely held by the promoters.
Recent results
ARSML reported a net profit of INR6.3 crore on an operating
income of INR344.8 crore during 2011-12, against a net profit of
INR3.4 crore on an operating income of INR276.2 crore during
2010-11.
ASACO PRIVATE: ICRA Reaffirms '[ICRA]D' Rating on INR29.1cr Loans
-----------------------------------------------------------------
ICRA has reaffirmed a long term rating of '[ICRA]D' to INR 7.28
crore1 (earlier INR 11.60 crore) fund based limits of Asaco
Private Limited. ICRA has also reaffirmed a short-term rating of
'[ICRA]D' to INR 13.50 crore (earlier INR 17.50 crore) non fund
based facilities of APL. ICRA has also reaffirmed the rating of
'[ICRA]D' to INR 8.32 crore (earlier nil) unallocated limits of
APL.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based 7.28 [ICRA]D Reaffirmed
Non Fund Based 13.50 [ICRA]D Reaffirmed
Unallocated Limits 8.32 [ICRA]D Reaffirmed
The rating reaffirmation factors in continuous delays in debt
servicing because of the stretched liquidity position of APL
arising out of high working capital intensity (as reflected by
net working capital / operating income) of 121% in FY 2012 due to
high inventory and high debtors; and low profitability and weak
coverage indicators. The rating also takes into account the
reduction in APL's operating income in last two years owing to
decreased revenue from Hot Isostatic Presses services segment.
ICRA has however taken note of APL's experienced promoters, its
established relationship with reputed customers, moderate
competition in the industry and improvement in its gearing from
1.31 times as on 31 March 2011 to 0.98 times as on 31 March,
2012.
Asaco Private Limited, incorporated in 1969 by Mr. K. Mohandas,
used to supply parts to the Indian metal forming and cable
industries. Later on, APL entered into manufacturing of cable
extrusion lines & optical fibre cable equipment, tension
levelling lines and allied equipment, diamond dies and tools for
wire & cable industry. APL also supplies equipment for defence
organizations which are used in manufacturing engines of rockets.
APL also is into Hot Isostatic Presses (HIPs) services, which are
used in aircrafts and missiles. APL has its manufacturing
facilities located in Kandi district of Hyderabad.
Recent Results
In FY12, APL reported operating income of INR8.97 crore and net
profit of INR0.03 crore as against an operating income of
INR13.61 crore and net profit of INR0.02 crore in the previous
year.
BMM CEMENTS: ICRA Cuts Rating on INR378cr Loans to '[ICRA]BB-'
--------------------------------------------------------------
ICRA has revised the long-term rating outstanding on the
INR328.00 crore term loan facilities and the INR50.00 crore fund
based facilities of BMM Cements Limited to '[ICRA]BB-' from
'[ICRA]BB+'. The outlook on the long-term rating is stable. ICRA
has also revised the short-term rating outstanding on the
INR15.00 crore non-fund based facilities of BCL to '[ICRA]A4'
from '[ICRA]A4+'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term loan facilities 328.00 Revised to [ICRA]BB-
(Stable) from [ICRA]BB+
(Stable)
Fund based facilities 50.00 Revised to [ICRA]BB-
(Stable) from [ICRA]BB+
(Stable)
Non-fund based facilities 15.00 Revised to [ICRA]A4 from
[ICRA]A4+
The revision in ratings reflect the low capacity utilization, on
account of power shortage in the state of Andhra Pradesh, which
exerts pressure on cash flows; the losses expected during the
current fiscal on account of the low utilization, coupled with
the debt-funded capital expenditure, are likely to result in the
capital structure and coverage metrics being stretched over the
medium term. BCL's plant is located proximate to limestone
sources, which is expected to save on logistics cost; while BCL
currently has only surface mining rights, delays in obtaining
approvals for commissioning the limestone mine (for captive
consumption) is likely to have an adverse impact on the operating
cost structure in the near-to-medium term. Cement prices in South
India are currently buoyant; however, the surplus capacities in
this region are likely to exert pressure on realizations and also
result in subdued utilization levels over the medium term. The
ratings consider the experience of management in the cement
business and its intent to commission the power plant in the near
term which is expected to improve the utilization level in the
cement business from 2013-14. The ratings also consider the
vulnerability of BCL's accruals to unfavorable movements in cost
of coal as well as the large investment plans of the group in the
iron and steel sector which is likely to exert some pressure on
the overall liquidity position of the group.
BCL, incorporated in August 2007, is primarily engaged in
manufacturing cement. The Company commenced commercial
production, in April 2012, at its 1.0 million tonne per annum
greenfield cement plant in the Anantapur district of Andhra
Pradesh. It primarily operates in the markets of Tamil Nadu,
Karnataka and Andhra Pradesh, apart from Kerala. BCL is presently
setting up a 25 MW thermal power plant, to cater to the
requirements of the cement plant. BCL forms part of the BMM
group, which has interests in the iron / steel and mining
sectors, apart from cement.
Recent results (unaudited)
BCL reported a loss before tax of INR15.9 crore on revenues of
INR24.6 crore during the first quarter of 2012-13.
CENTURY TEXOFIN: ICRA Reaffirms 'B+' Rating on INR20.71cr Loans
---------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' rating assigned to INR20.71
Crore bank lines of Century Texofin Private Limited. The rating
suspension done in July 2012 due to lack of information has been
revoked.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long Term Fund Based 17.60 [ICRA]B+ (Reaffirmed)
Limits
Long Term Unallocated 3.11 [ICRA]B+ (Reaffirmed)
The rating continues to be constrained by weak financial and
operational profile of Century Texofin Private Limited. The
company's scale of operations remains modest, and with its
presence in a highly fragmented business (Dyed Poplin & Rubia),
which is characterized by low entry barriers, results in high
competitive intensity and correspondingly weak operating margins.
This coupled with track record of low utilization of installed
capacity drives inadequate return metrics as reflected in ROCE of
8.37% for 2011-12. Furthermore, balance sheet of the company
continues to be weakly capitalized despite infusion of
incremental equity in recent past. Hence, the high dependence
upon debt coupled with weak return on invested capital has been
resulting in weak debt protection measures like Total
Debt/OPBDITA of 7.6 times, interest coverage of 1.4 times and
DSCR of 1.17 times. Furthermore, the working capital intensive
nature of operations has been resulting in stretched liquidity
profile as reflected in consistently high utilization of working
capital limits. The rating however continues to favorably factor
in long standing experience of the promoter family in textile
industry and benefits accruing from favorable location of the
facility in Balotra, Rajasthan.
Going forward, ability of the company to improve capacity
utilization and manage working capital intensity of operations
will determine extent of improvement in return on invested
capital and incremental requirement of funds. This coupled with
any improvement in capital structure by way of infusion of equity
by promoters will remain key rating sensitivities.
Incorporated in 2007, Century Texofin Private Limited is engaged
in business of fabric processing with its processing unit based
out of Balotra, Rajasthan, which is hub for processing of poplin
fabric due to favorable weather conditions. The company has
installed capacity for processing 5 million meter of fabric per
month, and is promoted by Mr. Shantilal Balar, who has been
involved in this line of business for over three decades. Prior
to 2007, the operations were conducted under a partnership firm.
In 2011-12, the company reported sales of INR77.58 crore against
INR79.99 crore reported in 2010-11.
DEEPAK COSMO: ICRA Assigns 'B' Rating to INR27cr Fund-Based Loan
----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to the
INR27 crore, fund-based facilities and a short-term rating of
'[ICRA]A4' to the INR2 crore non fund-based facilities of Deepak
Cosmo Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund-based facilities 27.00 [ICRA]B assigned
Non-Fund-based facilities 2.00 [ICRA]A4 assigned
The ratings are primarily constrained by DCL's highly leveraged
capital structure which together with its low profitability
margins owing to commoditised nature of the product and presence
in low value-add trading operations, translates into stretched
debt coverage and liquidity indicators. While assigning the
ratings, ICRA has also taken into consideration DCL's modest
scale of operations which exposes it to intense competition in
the sector and results in limited pricing power -exerting a
further pressure on its profitability indicators, particularly in
periods of volatile raw material prices. The ratings, however,
derive strength from the long-standing experience of DCL's
promoters in the man-made fibre yarn and trading businesses and
their established relationships with customers resulting in
healthy product off-take and repeat orders. The rating also draws
comfort from company's diversified operations which render
stability to the business.
In ICRA's view, DCL's ability to gradually improve its scale of
operations without further leveraging of its capital structure;
strengthen its net-worth base; improve its profitability
indicators and manage its working capital cycle effectively to
improve its liquidity, will be the key rating sensitivity.
Incorporated in 1990 as an investment company by Mr. Gian Chand
Garg, DCL is a Nalagarh-based closely-held spinning company
engaged in manufacturing of synthetic yarns. The company ventured
into the spinning business in 1995 with the acquisition of
Himachal Worsted Mills having a capacity of 2,400 spindles, from
the Government of Himachal Pradesh. Over the years, the company
has expanded its manufacturing capacity to 7,500 spindles. In
2003, the company also set up a fancy yarn unit with 70 machines.
At present, DCL's product range in the manufacturing division
includes acrylic yarn, acrylic-blended yarn, polyester yarn,
polyester-blended yarn, viscose yarn, cotton yarn, metallic yarn,
fancy yarn and nylon yarn.
Besides manufacturing yarn, the company also has presence in
trading of yarn, coal, steel and eggs, with yarn and coal trading
accounting for a significant portion of the segment's revenues.
Recent Results DCL reported an operating income of INR77.92 crore
and profit after tax (PAT) of INR0.30 crore in FY12 as compared
to an operating income of INR48.41 crore and a PAT of INR0.05
crore in FY11.
EURASIAN MINERALS: ICRA Puts '[ICRA]C' Rating on INR12.5cr Loans
----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]C' to INR12.50
crore bank limits of Eurasian Minerals & Enterprises Private
Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loans 8.25 [ICRA]C assigned
Working Capital Limits 3.00 [ICRA]C assigned
Unallocated 1.25 [ICRA]C assigned
The assigned rating factors in the limited track record of
EMEPL's operations, competitive and low value additive nature of
the business and exposure of company's profitability to
volatility in the prices of raw material. The rating also take
into consideration the fact that the iron ore beneficiation plant
which is expected to be the major revenue driver for the company
going forward has commissioned operations in May 2012 and the
operations of the plant are yet to stabilize. However, the rating
draws comfort from EMEPL experienced management with long track
record of operations in the mining/ minerals industry. Also, the
company has entered into mining off take agreements/extraction
agreements with the mining lease holders thus ensuring partial
raw material supplies for the Iron Ore Beneficiation plant.
EMEPL is a private limited firm which was set up in May 2007 for
the mining of minerals and selling in the open market as well as
the beneficiation of iron ores in order to sell the washed iron
ores to the pelletization plants. The company has its mining
operations in Jabalpur, Madhya Pradesh and has set up the iron
ore beneficiation plant also over there. The rationale behind
setting up the iron ore beneficiation plant was that the iron
ores mined had low iron content and thus in order to increase
their salability and sell them to pelletization plants in Madhya
Pradesh they had to be washed mainly to increase the iron content
and remove the impurities.
Recent Results
The company reported an operating income of INR7.17 crore and a
net profit of INR0.08 crore in FY2012 (provisional).
HES INFRA: Delays in Loan Payment Cues ICRA Junk Ratings
--------------------------------------------------------
ICRA has revised the rating assigned to INR90 crore fund based
limits, INR300 crore non-fund based limits and INR60 crore term
loan of HES Infra Private Ltd. from '[ICRA]BB+' to '[ICRA]D'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loan 60 [ICRA]D
Fund Based Limits 90 [ICRA]D
Non-Fund Based Limits 300 [ICRA]D
The rating revision takes into account on-going delays in debt
servicing by HES due to delays in realization of payments from
debtors. Besides, ICRA notes that although the September'12 order
book of the company is strong with pending work of almost
INR3,012 crore (or 5.6 times of FY12 operating income), there are
several large projects where the progress is extremely slow due
to approval and Right of Way issues. Further, the rating of the
company continues to remain constrained by its high geographical
concentration, its limited track record of operation in the new
geographies and the intensely competitive nature of industry.
Moreover, the company's borrowing level has gone up for funding
its increased working capital requirement; total debt (excluding
share application money) increased from -INR58 crore as on
March 31, 2011 to -INR112 crore as on March 31, 2012.
HES was incorporated in 1997 as a partnership firm in the name of
Hindustan Engineers Syndicate, with Mr. M.Kesava Raju and
Mr. I.V.R. Krishnam Raju being equal partners. The firm was
subsequently converted into a private limited company in June
2007 and renamed as HES Infra Pvt. Ltd. HES is mainly involved in
water & irrigation projects and construction of road & bridges.
For the year ended March 31, 2012, HES posted a Profit after Tax
(PAT) of INR29.5 crore on an Operating Income of INR536.4 crore.
IQBAL AHMED: ICRA Assigns '[ICRA]B' Rating to INR25.5cr Loans
-------------------------------------------------------------
ICRA has assigned a long- term rating of '[ICRA]B' and a short -
term rating of '[ICRA]A4' to the INR37 Cr for fund based and non-
fund based bank limits of Iqbal Ahmed Infra Projects Pvt Ltd.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long term Fund based 4.32 [ICRA]B (Assigned)
limits: Term Loan
Long term Fund based 20.00 [ICRA]B (Assigned)
limits: Cash Credit
Long term Fund based 1.18 [ICRA]B (Assigned)
limits: Unallocated
Short term Non-Fund 11.50 [ICRA]A4 (Assigned)
limits
The ratings take into consideration the modest scale of
operations with the company reporting INR39.35 Cr of revenue in
FY12 and executing projects limited to the state of Karnataka.
The rating also reflects the leveraged capital structure of the
company with gearing of 1.66 as on March 31, 2012 and interest
coverage at 2.02 times and the strained liquidity profile on
account of delayed realizations from customers which are
primarily State and Central government departments such as PWD
Mangalore and PWD Udupi.
Nevertheless, the rating draws comfort from the relatively strong
order book size of INR100 Cr for the company to be executed in
FY13 which provides visibility to the revenues going forward; the
management track record of 21 years and it being Class-I
contractor of State and Central government department and the
healthy operating margins (operating margin of 14.1% in FY2012)
enjoyed by the company in the business.
Iqbal Ahmed Infra Projects Pvt Ltd is a Class-I contractor that
is involved in the construction and development of roads,
bridges, canals and culverts for various state and central
entities. The company has been in operation for the last 21 years
and was converted into a private limited company in February 2010
after the amalgamation of the proprietary business concern of the
Managing Director, Mr. Iqbal Ahmed. The company mainly executes
civil works contracts allotted by the central and state
government department, especially road works allotted by PWD
Mangalore Division, PWD Udupi Division, N.H. Bangalore, MCC
Mangalore etc with order book size to the tune of INR101.08 Cr to
be executed in FY13. The company also has a Bitumen mix plant in
Karkala, Udupi Taluk, which combines Bitumen and jelly to make a
binder to cover road stones.
The company reported operating income of INR39.35 Cr as on
March 31, 2012 with operating profit of INR5.55 Cr and net profit
of INR1.27 Cr.
LOK CHEMICALS: ICRA Hikes Rating on INR20cr Loan to 'BB+'
---------------------------------------------------------
ICRA has upgraded the long term rating assigned to the
INR20 crore fund based limits of Lok Chemicals Private Limited
from '[ICRA]BB' to '[ICRA]BB+'. ICRA has also upgraded the short
term rating assigned to the INR70 crore non-fund based limits
from '[ICRA]A4' to '[ICRA]A4+'. The outlook on the long term
rating is stable.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based Limits 20.00 [ICRA]BB+ (Stable) upgraded
Non-Fund Based Limits 70.00 [ICRA]A4+ upgraded
The upgrade in ratings takes into accounts the company's healthy
revenue growth and improvement in gearing levels and coverage
indicators for FY 2012. The ratings also continue to factor in
the experience of the directors in the chemical trading business,
diversified customer base comprising of reputed clients, multi-
channel distribution activities and the benefits derived from
being the sole distributor of USA based refining and chemicals
company, Flint Hills Resources Plc, which ensures LCPL a stable
share of FHRP's business in India.
The ratings, however, remain constrained by the susceptibility of
the company's profitability to raw material price movements which
in turn are linked to crude oil prices and the foreign exchange
fluctuations. Further, the profitability levels of the company
remain low owing to the limited value addition in the trading
business.
About Lok Chemicals
Lok Chemicals Pvt. Ltd. was established in 1999 by the Lohia
family. The company is engaged in import and trading of chemicals
which it imports mainly from USA and China. The business is
managed by Mr. Rahul Lohia, who is assisted by his elder brother
Mr. Ajay Lohia and mother Mrs. Bimala Lohia. The company has its
office in Juhu, Andheri and eight godowns in Bhiwandi out of
which two are owned and rest is rented.
Recent results:
LCPL recorded a net profit of INR2.13 crore on an operating
income of INR248.92 crore for the year ending March 31, 2012.
SAINOV SPIRITS: ICRA Assigns 'B' Rating to INR75cr LT Loan
----------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to INR75.00
crore fund-based facilities and a short-term rating of '[ICRA]A4'
to INR25 crore fund based facilities (Sub-limit of Long-Term fund
based facilities) of Sainov Spirits Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long-Term Fund Based 75.00 [ICRA]B Assigned
Facilities
Short-Term Fund Based 25.00 [ICRA]A4 Assigned
Facilities
The rating takes comfort from the track record of promoters
having relevant experience in alcoholic/ FMCG/ beverages
industries; leveraging on which the company is generating good
business volumes during its initial years of operations. During
FY-12, Sainov increased its operating income to INR106.5 crore as
compared to INR19.8 crore in the previous financial year. The
growth was mainly driven by trading activities undertaken by the
company for ENA which accounted for 81% of its revenues and the
revenue contribution of relatively higher margin IMFL retailing
segment remained minimal at 7% during FY12. Owing to nature of
trading operations, the operating profit margins remained low at
9% which coupled with high growth and high working capital
intensity (41% in FY-12) resulted in increased funding
requirements thereby increasing its reliance on working capital
borrowings. Further, to supplement its IMFL retailing business,
Sainov acquired a distillery in February 2011, which was
substantially funded through debt. Due to its high vintage and
adverse cost structure, the distillery witnessed low capacity
utilization (16% in FY-12) thereby resulting in limited
contribution to company's profitability. As a result of the above
acquisition and working capital borrowings, the company witnessed
sharp increase in its overall debt levels without a corresponding
increase in profitability. While the equity infusion by promoter
group protected the deterioration in capital structure to an
extent as reflected in a gearing of 1.26 times as on March 31,
2012, however in the backdrop of low profitability, the debt
coverage indicators of the company remained weak. This is
reflected by Total Debt/OPBDITA at 6.4 times, OPBDITA/Interest at
1.3 times and Net Cash accruals/Total debt at 9% as on March 31,
2012. ICRA has taken a note of competitive nature of industry,
vulnerability to Government's policies and high entry barriers
from already established brands of various domestic and
international players. Given the focus of Sainov to improve its
presence in IMFL retailing business; ICRA notes that the
gestation period in this business segment of company could be
longer, however it is expected to be supported by the
profitability from the ENA trading segment. Going forward,
ability of the company to effectively maintaining its liquidity
through calibrated growth, managing working capital in its
trading operations and optimally utilize its distillery on
profitable basis will be key rating sensitivities. ICRA also
notes that, to efficiently utilize its distillery, Sainov may
require further capital investments; hence the scale and the
funding mix of the same will also remain rating sensitivities.
Sainov Spirits Private Limited, incorporated in April-2008 is an
alcoholic beverage company promoted by -- Mr. Sanjay Lamba and
Mr. Rajesh Mehta. Based in Delhi, the company is engaged in
manufacturing & trading of ENA, manufacturing & marketing of IMFL
and concentrates in India and abroad.
SHREE KANTA: ICRA Rates INR5cr Fund Based Limits at '[ICRA]B'
-------------------------------------------------------------
ICRA has assigned '[ICRA]B' rating to the INR5.00 crore fund
based limits of Shree Kanta Rice and General Mills.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund based limits 5.00 [ICRA]B assigned
The rating takes into account the highly competitive and low
value additive nature of the rice milling industry with limited
pricing power vis-a-vis consumers and suppliers (paddy farmers).
These factors, coupled with the small size and non-value added
nature of the firm's rice milling unit have resulted in
relatively weak profitability indicators and given the
fundamental industry dynamics, ICRA does not expect any change in
the near future. Further, the firm's working capital intensive
operations have been largely debt funded resulting in high
gearing and weak debt coverage indicators. ICRA also factors in
the vulnerability of firm's operations to agro climatic risks,
which can affect the pricing and availability of paddy. ICRA
however draws comfort from the proximity of the mill to a major
rice growing area which results in easy availability of paddy and
stable demand outlook given that India is a major consumer (rice
being an important staple of the Indian diet) and exporter of
rice.
Incorporated in the year 2006, Shree Kanta Rice and General Mills
was a partnership firm till March 31, 2012, and with effect from
1st April, 2012, the business is run as a proprietorship concern.
The entity is engaged in milling of rice with an installed
capacity of 4 tons/hour. The firm is mow run by Mr. Rakesh Kumar
Garg as a proprietor.
Recent Results
The firm reported a net profit after tax of INR0.03 crores on an
operating income of INR29.62 crores in 2011-12 as against a
profit after tax of INR0.05 crores on operating income of
INR25.46 crores in 2010-11.
SUPER STAINLESS: ICRA Rates INR8cr Cash Credit at '[ICRA]B'
-----------------------------------------------------------
The rating of '[ICRA]B' has been assigned to the INR 8.00 crore
cash credit facility of Super Stainless Steel. The rating of
'[ICRA]A4' has also been assigned to the INR2.00 crore short-term
non-fund based limit of SSS.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit 8.00 [ICRA]B assigned
Bank Guarantee 2.00 [ICRA]A4 assigned
The assigned ratings are constrained by SSS's modest scale of
operations and weak financial profile characterized by thin
profitability, adverse capital structure and weak coverage
indicators. The ratings also take into account the vulnerability
of firm's profitability with adverse fluctuations in stainless
steel prices, high competitive intensity with fragmented industry
structure and dependence on limited number of suppliers resulting
in limited bargaining power with respect to credit period
received for procurement. The ratings also factor in the high
working capital requirements owing to long credit periods
extended to the customers and high level of inventory required to
be maintained resulting in stretched liquidity position as
indicated by near full utilization of working capital limits.
While assigning the ratings ICRA has also noted the risks of
capital withdrawals that are inherent in proprietorship firms.
The ratings, however, favorably take into account the long track
record of the firm in stainless steel trading business and its
established relationships with the suppliers. The ratings also
take comfort from the consistent increase in trading volumes and
sales realizations leading to healthy growth in the operating
income, broad customer base of the firm leading to limited risk
of customer concentration and stable demand outlook for stainless
steel driven by the expected growth in domestic demand for steel
products.
Super Stainless Steel is a proprietor ship firm, established in
the year 2002 by Mr. Devendra Patel. From 2002 to 2005, the firm
was mainly involved in the trading of the ammonium alum. From
2005 onwards, the firm discontinued trading of ammonium alum and
started the trading of the stainless steel sheets, coils and
plates. In the year 2007, the firm acquired the dealership of
Jindal Stainless Ltd. The firm currently also undertakes trading
of stainless steel products of SAIL.
Recent Results
For the year ended March 31, 2012, SSS has reported operating
income of INR88.46 crore and profit after tax (PAT) of INR0.38
crore as against operating income of INR86.07 crore and PAT of
INR0.65 crore for the year ended March 31, 2011.
TRIBHUVAN SPINTEX: ICRA Assigns 'B+' Rating to INR30.5cr Loans
--------------------------------------------------------------
A rating of '[ICRA]B+' has been assigned to the INR4.00 crore
fund-based cash credit facility and INR26.50 crore term loan
facility of Tribhuvan Spintex Private Limited. A rating of
'[ICRA]A4' has also been assigned to the INR1.94 crore short term
non fund based bank guarantee facility, INR6.40 crore foreign
letter of credit (sublimit of term loan) and INR0.13 crore of
credit exposure facility of TSPL.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loan 26.50 [ICRA]B+ assigned
Cash Credit 4.00 [ICRA]B+ assigned
Bank Guarantee 1.94 [ICRA]A4 assigned
Letter of Credit (6.40) [ICRA]A4 assigned
Credit Exposure Limit 0.13 [ICRA]A4 assigned
The assigned ratings are constrained by the risks associated with
timely completion of the green field project and stabilization of
the proposed plant as per expected operating parameters. ICRA
also factors in the highly competitive business environment given
the fragmented nature of cotton industry thus, limiting the
company's ability to fully pass on the increase in raw material
prices; and vulnerability of profitability given the unexpected
movements in cotton bales prices which are subject to seasonality
and crop harvest. ICRA also takes notes of the debt funded
project undertaken by the company and high working capital
intensity of planned operations which is expected to stretch the
capital structure and credit metrics.
The rating, however, favorably take into account the long
experience of management in the cotton and spinning industry;
close proximity to raw material sources as the company is located
in a major cotton growing belt of India; and operational support
from group concern ensuring steady supply of raw material (cotton
bales).
Tribhuvan Spintex Private Limited was incorporated in May 2011 by
Mr. Pankaj Talati and Mr. Devjibhai Kanani along with 35 other
shareholders. TSPL is in the process of installing a cotton yarn
spinning mill plant with the planned installed capacity to
manufacture 2,347 TPA of 30s combed hosiery cotton yarn. The
proposed plant is located at Surendranagar, Gujarat. The company
expects to commence the commercial production from April 2013.
The management has an experience in cotton and spinning industry
through other group concerns.
=========
J A P A N
=========
GODO KAISHA 6: S&P Lowers Ratings on Two Note Classes to 'CC'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'CC (sf)' from 'CCC
(sf)' its ratings on the class C and D floating-rate notes issued
under the Godo Kaisha Orso Funding CMBS 6 transaction, and has
withdrawn its ratings on classes C to F. "The class A and B notes
fully redeemed on the payment date in November 2012, and we
withdrew our rating on the interest-only class X notes in October
2010. We lowered to 'CC (sf)' from 'CCC (sf)' our ratings on
classes E and F on Aug. 1, 2012," S&P said.
"The sale of the property that backed the transaction's remaining
TMK bond is complete, and the outstanding principal on the
securitized portion of this TMK bond exceeds the amount collected
through the property sale. Although the total loss incurred on
the property sale has not yet been determined because the
liquidation of the TMK that issued the TMK bond is not yet
complete, we do not expect class C to fully redeem," S&P said.
"Following the completion of the sale of the property, the
arranger requested that we withdraw our ratings on classes C to
F. We consider that full principal payments on classes C and D
are now unlikely to be made, and downgraded these classes to
reflect this view and then withdrew our ratings on classes C to
F," S&P said.
Godo Kaisha Orso Funding CMBS 6 is a multiborrower commercial
mortgage-backed securities (CMBS) transaction. TMK bonds and
loans issued by/extended to six obligors initially secured the
floating-rate notes, while 32 real estate properties originally
backed the TMK bonds and loans. The former Bear Stearns (Japan)
Ltd., Tokyo Branch (currently, JPMorgan Securities Japan Co.
Ltd.) arranged the transaction.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS LOWERED
Godo Kaisha Orso Funding CMBS 6
JPY29.9 billion floating-rate notes due November 2013
Class To From Initial issue amount
C CC (sf) CCC (sf) JPY3.6 bil.
D CC (sf) CCC (sf) JPY3.6 bil.
RATINGS WITHDRAWN
Godo Kaisha Orso Funding CMBS 6
Class Rating Initial issue amount
C CC (sf) JPY3.6 bil.
D CC (sf) JPY3.6 bil.
E CC (sf) JPY3.0 bil.
F CC (sf) JPY0.2 bil.
SHARP CORP: Fitch Keeps 'B-' IDR on Rating Watch Negative
---------------------------------------------------------
Fitch Ratings is maintaining Japan-based Sharp Corporation's
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) of 'B-' on Rating Watch Negative (RWN).
The RWN reflects growing risks to Sharp's liquidity position in
the short-term, due to its upcoming debt maturity and limited
access to the capital market, as the technology company struggles
to turn its business around.
Sharp's cash balance was JPY221bn as of end-September 2012,
significantly short of the JPY898bn debt maturing within the next
one year. In addition, Sharp is likely to see the previously
agreed capital injection of JPY67bn from Hon-Hai Group reduced
following the fall in its share price to around 60% below the
JPY550/share agreed with Hon Hai Group. The company is
undertaking asset sales to raise cash.
Although Sharp succeeded in raising JPY360bn secured loans from
its major banks in September 2012, continuing support from these
creditors may not be forthcoming when the loans fall due in June
2013.
Fitch does not foresee any meaningful operational turnaround in
the company's core business over the short- to medium-term due to
deterioration in its market position as well as in price
competitiveness as a result of a high Japanese yen. Its LCD TV
shipments fell 43% yoy during H1FY13 (year ending March 2013).
In addition, Sharp's advanced technology for small- and medium-
sized panels has failed to make any meaningful profit
contribution so far.
Sharp posted another record loss during H1FY13 as revenue fell
16% yoy to JPY1,104bn with a negative 15.3% EBIT margin (H1FY12:
2.6%) due to ongoing operational difficulties at its core LCD
TV/panel business. In addition, its weak performance was
exacerbated by the continuing price decline of solar cells due to
intense competition and weak demand. Cash flow from operations
(CFO) also worsened further to negative JPY104bn. (H1FY12:
negative JPY28bn).
A 'RR4' Recovery Rating on its local-currency senior unsecured
debt rating indicates average recovery (31%-50%) in the event of
a default.
What Could Trigger A Rating Action?
The Rating Watch will be resolved within the next three to six
months, depending on further developments on the liquidity
position.
Negative: Future developments that may, individually or
collectively, lead to negative rating action include
-- failure to obtain further sources of liquidity to meet
short-term obligations
Positive: The ratings are currently on RWN. As a result, Fitch's
sensitivities do not currently anticipate developments with a
material likelihood, individually or collectively, of leading to
a positive rating action.
List of rating actions:
-- Long-Term Foreign- and Local-Currency IDRs 'B-' remain on
RWN
-- Local-currency senior unsecured rating 'B-' remains on RWN;
-- Recovery Rating is 'RR4'
-- Short-Term Foreign- and Local-Currency IDRs 'B' remain on
RWN
SHINSEI BANK: S&P Raises Subordinated Debt Rating to 'BB+'
----------------------------------------------------------
Standard & Poor's Ratings Services revised to stable from
negative its outlook on the long-term counterparty credit rating
on Shinsei Bank Ltd., following the ratings agency revision of
the bank's stand-alone credit profile (SACP) to 'bbb'. "The SACP
excludes the likelihood of government extraordinary support. The
SACP revision is based on our view that the balance between the
bank's risk volume and capital and earnings has improved, thanks
to a reduction in risk assets resulting from improved asset
quality and accumulated retained earnings. At the same time, we
raised the debt rating on the bank's perpetual subordinated debt
by one notch to 'BB+' from 'BB' and upgraded the preferred
securities by three notches to 'BB' from 'B'. In addition, we
affirmed the 'BBB+' long-term and 'A-2' short-term counterparty
credit ratings on Shinsei Bank, the 'BBB+' debt rating on its
long-term senior bonds, and the 'BBB' debt rating on its dated
subordinated bonds," S&P said.
'Our outlook revision is based on a change in our assessment of
Shinsei Bank's capital and earnings to 'adequate' from 'moderate'
and an upward revision of the bank's SACP to 'bbb' from 'bbb-'.
Previously, the outlook on the long-term counterparty credit
rating on the bank reflected that on the long-term sovereign
rating on Japan (AA-/Negative/A-1+). However, with Shinsei Bank's
current 'bbb' SACP and our assessment of its 'moderately high'
likelihood of extraordinary government support in a time of need,
the outlook on the bank is not directly affected by that on the
sovereign rating on Japan. The long-term counterparty credit
rating on the bank is one notch higher than the SACP because it
takes into account the likelihood of extraordinary government
support," S&P said.
"For the past several years, Shinsei Bank's revenues were
squeezed by credits costs due to factors including weak real
estate market conditions and deterioration in the consumer
finance industry. However, we believe the bank's revenues have
become more stable and it now faces a lower risk of incurring
material losses. The consumer finance market has also shown signs
of stabilizing and the bank has made progress in disposing of
nonperforming loans. In the first half of fiscal 2012 (April 1 to
Sept. 30, 2012), Shinsei Bank posted a JPY4.7 billion
nonrecurring loss arising from impairment losses on real estate
nonrecourse finance and other factors. The losses, including
refunds of overcharged interest in its consumer finance business,
have decreased substantially from a half-year average of JPY30.9
billion for the past two years. In addition, the balance between
its risk volume and capital and earnings has been improving due
to a reduction in risk assets, such as securitized products, in
our view. We expect the bank's risk-adjusted capital (RAC) ratio,
which we view as a key indicator of credit quality, to be at mid-
7% in the next 12 to 18 months," S&P said.
"We upgraded Shinsei Bank's preferred securities to 'BB' from 'B'
because we revised upward the SACP and narrowed the degree of
notch-down in the rating on the preferred securities from the
SACP to three notches from five notches. This was based on our
view that the bank now faces a lower risk of running short of
distributable reserves to make dividend payments, thanks to
accumulated profits and a lower risk of losses. Previously, the
degree of notch-down in the rating on Shinsei Bank's preferred
securities from its SACP was greater than that of the general
preferred securities issued by other Japanese banks because
Shinsei Bank's distributable reserves, which could be a trigger
to defer its dividend payments, were limited. Meanwhile, the
notch-down in the rating on the bank's perpetual subordinated
debt remains unchanged. However, we raised the debt rating on the
perpetual subordinated debt to 'BB+' from 'BB' in tandem with the
upward revision of the SACP," S&P said.
"The stable outlook reflects our view that the bank will maintain
its credit quality at a level commensurate with the current
rating in the medium term. We may consider lowering the ratings
if the bank's risk assets increase at a faster pace than our
assumptions and the likelihood of the RAC ratio falling below 7%
heightens due to a delay in capital accumulation through
earnings. If we see a higher likelihood of deterioration in the
bank's financial performance that exceeds our assumptions due to
material losses from worsening business conditions, that could
also be a downgrade trigger for the bank. Conversely, we may
upgrade the bank if we believe it has further strengthened its
capitalization, which could be indicated by a rise in its RAC
ratio to over 10%. We may also consider an upgrade if it improves
its risk position. Specifically, the ratings may get a boost if
the bank's credit concentration continues to improve while its
credit costs continue to fall below the normalized losses that
Standard & Poor's has calculated in its RAC framework," S&P said.
* JAPAN: Moody's Says Mega-Banks' Growth Not Yet Credit Negative
----------------------------------------------------------------
Moody's Japan K.K. says the overseas expansion of Japanese mega-
banking groups -- Mitsubishi UFJ Financial Group, Inc, Sumitomo
Mitsui Financial Group, Inc, and Mizuho Financial Group, Inc --
has not yet raised material credit concerns.
While their expansion overseas has been sufficiently disciplined
so far, execution will be key. It is quite possible that there
will be different credit outcomes for specific banks, depending
on how they manage the associated risks.
According to Moody's just-released special comment titled,
"Japanese Mega-Banks: Overseas Expansion Not Yet a Credit
Negative, Although Challenges Apparent," there was a significant
acceleration in overseas activities by the three mega-banks in
the fiscal year ended March 2012 (FYE3/2012).
The three banks recorded double-digit growth in overseas loans in
FYE3/2012 and for the second quarter of FYE3/2013. As a result,
such loans rose to 20% of their total outstanding loans at end-
September 2012 from 16% in FYE3/2010.
And given that the Yen was strengthening during this period, the
rate of increase in the banks' overseas loans, after excluding
foreign currency effects, was higher than the rate of increase
calculated in Yen.
According to Moody's, the benefits of overseas expansion -- and
hence its credit positive character -- include (1) the addition
of assets that generate higher returns than available on purely
domestic Japanese assets, and which could mitigate the rate of
decline in net interest income on domestic assets; and (2) better
geographical diversification with a concomitant reduction in
concentration to the Japanese economy.
Contributions from the banks' overseas business will play a
greater role in augmenting their overall profitability. For
example, net interest income from overseas has been growing, and
is somewhat offsetting the decline in domestic net interest
income.
On the downside, however, Moody's notes several risks associated
with the banks' continued expansion overseas.
These include (1) their difficulties in assessing non-Japanese
credit and market risks because of lower familiarity with markets
abroad and weaker relationships with non-Japanese clients; (2) a
potential lack of pricing discipline in the face of robust
competition with local banks, their global peers and other
Japanese peers; and (3) increased reliance on overseas funding
which creates risks that may not be within the banks' ability to
manage.
However, the three mega-banks are, as indicated, maintaining a
disciplined approach to expansion and are also adopting a
cautious approach towards managing their foreign-currency
liquidity.
In this regard, the banks are also limiting their exposures to
peripheral European countries, and most of their exposures are to
blue chip multi-national companies, whose businesses are not
largely dependent on the local economies.
Furthermore, the banks are managing their overseas loans within
their foreign-currency deposits, including certificates of
deposits. In addition, they are enhancing their foreign funding
sources -- through issuances of foreign-currency commercial paper
and bonds -- to support their overseas operations.
Looking ahead, Moody's expects the pace of overseas expansion
will slow as the banks' ability to expand their holdings of
relatively low-cost USD deposits reaches its natural limits.
Beyond this point, they would need to increase their reliance on
FX Yen swaps, or other forms of market funding, which are
relatively high cost and highly confidence sensitive. But Moody's
does not expect the Japanese banks to resort to such a vulnerable
funding strategy.
On a geographic basis, the largest increase in loans outstanding
by the mega-banks has been in Asia and the US, where economic
growth has been healthier than in Europe. The retreat by European
banks from Asia is also offering opportunities for Japanese
banks.
The mega-banks have made various major overseas acquisitions
since 2010, and Moody's expects to continue to see selective
transactions.
=========
K O R E A
=========
KOREA GAS: S&P Revises Stand-Alone Credit Profile to 'bb+'
----------------------------------------------------------
Standard & Poor's Ratings Services affirmed its long-term and
short-term corporate credit ratings on Korea Gas Corp. (KOGAS) at
'A+' and 'A-1'. "At the same time, we revised the stand-alone
credit profile (SACP) for KOGAS to 'bb+' from 'bbb-'. The outlook
is stable," S&P said.
"Our affirmation of our ratings on KOGAS reflects our view that
potential extraordinary support from the government of the
Republic of Korea (foreign currency rating A+/Stable/A-1; local
currency rating AA-/Stable/A-1+) in the event of financial stress
at the company would be 'extremely high.' We base this assessment
on our view of the 'very strong' link between KOGAS and the
government of Korea due to the government's majority ownership,
strong ongoing financial support, and tight supervision and
control through the Ministry of Knowledge and Economy. We
continue to view KOGAS' role as critical for the economy of Korea
because it is the sole wholesale distributor of natural gas in
the country," S&P said.
"We revised the SACP for KOGAS to 'bb+' from 'bbb-' because we
expect the company's financial risk profile to deteriorate owing
to aggressive debt-financed investment in overseas exploration
and production (E&P) businesses in line with government efforts
to strengthen the nation's energy security by increasing its
self-sufficiency in natural gas, particularly nontraditional gas
such as shale gas. The lower SACP also reflects a marginal
weakening of the company's business risk profile due to increased
exposure to
the E&P sector, which we view as inherently more risky that
KOGAS' core domestic business," S&P said.
"The company's rapid expansion of overseas E&P businesses will
increase volatility in earnings and additionally burden its
constrained financial risk profile, though we expect dividend
income from acquired assets to grow. We also believe KOGAS could
face additional capital commitments to those projected from its
overseas liquefied natural gas (LNG) investments. We base this
view on the recent global performance of LNG projects, which have
suffered large cost increases," S&P said.
"We expect the company's annual investment in natural gas assets
to remain high, at close to Korean won (KRW) 3 trillion over the
next two years. While we expect the government to strengthen the
company's capital structure through financial support such as a
KRW200 billion capital injection in 2013, along with regulatory
support such as tax benefits and a special loan for which
repayment hinges on a project's success, we believe such an
investment burden will constrain its FFO interest coverage ratio
to slightly below 2x and the ratio of its FFO to debt to be below
5% over the next two years. The SACP for KOGAS is likely to come
under pressure if its interest coverage ratio falls further
toward 1.5x," S&P said.
"We assess KOGAS as having 'adequate' liquidity, as defined in
our criteria, because of its strong access to the domestic
capital market, benefitting as it does from being an important
government-related entity in Korea. Also, the company has good
access to domestic and global capital markets and good support
from lending institutions. These qualitative factors more than
offset our assessment of the company's liquidity sources, which
we expect to be less than 1.2x its liquidity uses in the next 12
months. We estimate the company will have KRW3.4 trillion in
liquidity--comprising cash, short-term investments, FFO,
committed credit facilities, and a government capital injection--
compared with about KRW3.1 trillion in needs for debt maturities
in the next six months, working capital needs, and committed
capital spending. Further supporting our liquidity assessment is
our belief that KOGAS will not commit to a significant portion of
its capital expenditure program until it has sufficient available
funding to do so," S&P said.
"The stable outlook on our ratings on KOGAS reflects the stable
outlook on our sovereign ratings on Korea and our expectation
that there is an 'extremely high' likelihood of extraordinary
support from the government of Korea in the event of financial
distress at the issuer, because it continues to play an essential
role as a sole wholesale distributor of natural gas in the
country," S&P said.
"Our ratings on KOGAS could come under pressure if KOGAS' policy
role weakens or its link to the government loosens, such as
through a government decision to reduce its shares in the
company," S&P said.
"Any change in our sovereign ratings on Korea would lead to a
corresponding change in our ratings on KOGAS," S&P said.
====================
N E W Z E A L A N D
====================
CAPITAL + MERCHANT: SFO Losses Appeal on 'Hub' Deals
----------------------------------------------------
BusinessDesk reports that the Serious Fraud Office has lost the
first round in it its bid to appeal a ruling clearing Capital +
Merchant Finance directors Wayne Douglas and Neal Nicholls over
the so-called "Hub loans."
In the High Court in Auckland, Justice Edwin Wylie turned down
the Crown's application for the judge to revisit three questions
of law surrounding the Palmerston North property transactions
involving some NZ$14.4 million of investor funds, according to a
judgment obtained by BusinessDesk.
BusinessDesk relates that the Crown wanted Justice Wylie to
review whether he had erred in his judgment in the first of two
trials of the Capital + Merchant duo that cleared them of
wrongdoing in those transactions, which the Crown would then use
in its application to the Court of Appeal.
The report says the judge backed his acquittals, saying the Crown
had not proved beyond reasonable doubt the trust deed had been
breached or that accounting standards had been broken and that it
was not appropriate for him to state an opinion for the Court of
Appeal.
According to the report, Justice Wylie was not swayed by the
Crown's submissions that his findings could affect other SFO
cases, which is not a factor he takes into account.
"I simply concluded that on the materials before me, the Crown
had failed to prove its case beyond reasonable doubt," Justice
Wylie said in the judgment. "It is difficult to see how this
finding could materially impact on other prosecutions."
BusinessDesk notes that Messrs. Douglas and Nicholls were
convicted and jailed for fraud in the second of the Capital +
Merchant trials, as was former chief executive Owen Tallentire.
The second trial related to some NZ$28 million of transactions.
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.
ROSS ASSET: Court Appoints Liquidators to RAM and 3 Related Firms
-----------------------------------------------------------------
PricewaterhouseCoopers Partners John Fisk -- john.fisk@nz.pwc.com
-- and David Bridgman -- david.bridgman@nz.pwc.com -- as
receivers and managers to Ross Asset Management Limited and
related entities on Dec. 17, 2012, made applications to the High
Court in Wellington for their appointment as liquidators to a
number of the Ross Group companies. This step was anticipated in
their report to the Court on November 13 as the most appropriate
way to manage a number of the issues arising from the Ross Group
receiverships.
The High Court has ordered John Fisk and David Bridgman be
appointed liquidators of the following Ross Group companies:
-- Ross Asset Management Limited (In Receivership);
-- Bevis Marks Corporation Limited (In Receivership);
-- McIntosh Asset Management Limited (In Receivership); and
-- Mercury Asset Management Limited (In Receivership).
In addition, the Court was advised shareholder resolutions are to
be passed Monday to appoint John Fisk and David Bridgman as
Liquidators to these Ross Group companies:
-- Dagger Nominees Limited (In Receivership);
-- Ross Investment Management Limited (In Receivership);
-- Ross Unit Trust Management Limited (In Receivership); and
-- United Asset Management Limited (In Receivership).
PwC says the first liquidators' statutory report for all of the
above companies will be produced and posted to investors later
this week.
Mr. Fisk notes, "Our appointment as Liquidators gives us greater
powers to investigate complex transactions and issues, and to
distribute assets, which we did not have as Receivers. There are
a number of matters that will need to be addressed in the
liquidations early in the New Year. This includes a meeting of
creditors that will be conducted by postal vote by 8 February
2013 to confirm our appointment as Liquidators and to form a
Liquidation Committee to provide investor input to assist with
the liquidations."
In regard to forming a Liquidation Committee, the Liquidators are
requesting investors and creditors to nominate members of the
Committee by sending details of nominees to them at the PwC
website at http://www.pwc.co.nz/rossassetmanagement/
It is important all nominations for the Liquidation Committee are
received within the next 48 hours so that voting forms can be
included in the report to be sent to all investors and creditors
later this week.
Mr. Fisk says, "Given the significant shortfall in assets
available to investors at present, we need to be mindful that
whatever actions are taken in this process are cost effective and
recognize the difficult financial position many investors now
find themselves in. There have been a number of comments in the
media about significant liquidation and legal costs that may be
incurred in recovering money from investors who received
repayments from their portfolios within the last two years. The
issues in this insolvency are very complex and involve difficult
areas of law and ones that we have not formed a final view on.
"We wish to emphasize it would be premature to assume anything at
this stage in regards to third party recoveries; further
investigation and legal advice is required. This will then be
considered by the Liquidators and the Liquidation Committee. Any
decisions on pursuing third party recoveries will be considered
against the costs, risks and benefits of the potential claims.
The last thing we want is for investors to get ahead of
themselves by incurring additional legal costs or expecting great
recoveries from this source."
Given the number of companies involved in the liquidations and
the intermingled nature of how the companies appear to have
operated, Mr. Fisk says, "A further option being considered as a
priority will be whether an application will be made to the Court
to have all assets and liabilities of the companies pooled under
the applicable provisions in the Companies Act."
As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, the High Court 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. The 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;
* Ace Investments Limited or Ace Investment Trust Limited or
Ace Investment Trust;
* Vivian Investments Limited; and
* Ross Units Trusts Limited.
The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.
Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.
* NEW ZEALAND: Developer Avoids Jail for Bankruptcy Fraud
---------------------------------------------------------
Australian Associated Press reports that Auckland property
developer Marcus Julian Friedlander has avoided a jail term for
an elaborate scheme to prevent him being declared bankrupt.
AAP relates that Mr. Friedlander, 58, was sentenced to seven
months' home detention in the High Court at Auckland after
admitting 25 fraud-related charges.
With the help of 31-year-old Ralph Anthony Vuletic, he attempted
to stave off bankruptcy in 2003, when his businesses were failing
and he owed more than NZ$10 million to creditors, the report
relays.
AAP says the pair created a false paper trail to help support an
offer from Mr. Friedlander to his creditors that would see him
pay less than what he owed them.
It included a backdated sale and purchase agreement for a
property in Albany, owned by Vuletic, and a false debt also owed
to Vuletic, the report notes.
The attempt failed and Mr. Friedlander was bankrupted in 2003.
Mr. Vuletic also pleaded guilty and was sentenced to nine months'
home detention last month, AAP adds.
=====================
P H I L I P P I N E S
=====================
DEVELOPMENT BANK: Fitch Affirms 'BB+' LT Issuer Default Rating
--------------------------------------------------------------
Fitch Ratings has upgraded Land Bank of the Philippines' Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to
'BB+' from 'BB' and its Viability Rating (VR) to 'bb+' from 'bb'.
At the same time, the agency has affirmed Development Bank of the
Philippines' (DBP) Long-Term Foreign- and Local-Currency IDRs at
'BB+' and its VR at 'bb+'. The Outlooks on both banks are
Stable. A full rating breakdown is provided below.
The upgrade of LBP reflects its improved risk profile, with a
reduced burden of legacy non-performing assets over the past
several years. Its risk profile is now comparable with that of
DBP and similarly-rated institutions in other emerging markets.
The IDRs and National Ratings of DBP and LBP are driven by their
'bb+' VRs, reflecting their satisfactory capitalisation, funding
and earnings profiles but also asset-related risks, including
that of policy-oriented loans, and large borrower concentration.
Despite their policy role, the banks still adopt a largely
commercial approach, including towards credit risk assessment.
The '3' Support Rating and 'BB' Support Rating Floor for both
banks reflect Fitch's belief of a moderate probability of
extraordinary support from the government, in case of need. This
is because the agency views the banks to be systemically
important in the Philippines in light of their 100% state
ownership, policy mandates and sizeable presence in the domestic
banking system. However, the timeliness of state support could
be tempered by the Philippine government's moderate financial
capacity, as underscored by its IDR of 'BB+'.
Fitch sees limited rating upside to the banks' VRs, which are
rather high for quasi-policy banks and relative to major domestic
banks. This means any upgrade to the banks' IDRs is unlikely to
be driven by individual financial strength as underlined by their
VRs. Instead, upgrade prospects are more likely to come from
increased state support, on a sovereign rating upgrade, that is
manifested in a Support Rating Floor higher than the VR.
Pressure on the VRs may arise from a sharp increase in credit
losses leading to capital impairment, possibly as a result of
state-directed lending or protracted difficulties in domestic
operating conditions. However, Fitch views these as remote
prospects given the firm domestic economy, the banks' modest risk
appetite and sound loss-absorption capacity.
Asset quality at DBP and LBP has been comparable with that of
major domestic peers through recent cycles, despite risks from
large loan concentration and mandated lending. LBP has over time
reduced its non-performing assets, which had been a drag on its
financial profile.
Fitch expects both banks to maintain their high core
capitalisation which, along with satisfactory profit generation,
supports their capacity to absorb cyclical losses, to carry out
their public policy roles with minimal state financial support,
and to still pay dividends regularly to the government. Strong
links with the Philippine government support the banks' access to
official development assistance funds and public sector deposits,
thereby aiding their funding.
The 'BB+' rating of the senior notes is at the same level as
DBP's IDR, as the senior notes constitute the bank's direct,
unconditional and unsecured obligations and, hence rank equally
with its unsecured and unsubordinated obligations. The 'B+'
hybrid rating is three notches below DBP's VR due to the
instrument's deeply subordinated status and dividend deferral
mechanism. Changes of the IDR and VR would likely affect the
ratings of DBP's senior notes and hybrids, respectively.
The full list of rating actions is as follows:
LBP:
-- Long-Term Foreign-Currency IDR upgraded to 'BB+' from 'BB';
Stable Outlook
-- Long-Term Local-Currency IDR upgraded to 'BB+' from 'BB';
Stable Outlook
-- National Long-Term Rating upgraded to 'AA(phl)+' from
'AA(phl)'; Stable Outlook
-- Viability Rating upgraded to 'bb+' from 'bb'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB'
DBP:
-- Long-Term Foreign Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Long-Term Local-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- National Long-Term Rating affirmed at 'AA+(phl)'; Stable
Outlook
-- Viability Rating affirmed at 'bb+'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB'
-- USD300m 5.5% senior notes 25 March 2021 affirmed at 'BB+'
-- USD130m perpetual callable subordinated hybrid notes
affirmed at 'B+'
LAND BANK: Fitch Hikes LT Issuer Default Ratings to 'BB+'
---------------------------------------------------------
Fitch Ratings has upgraded Land Bank of the Philippines' Long-
Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to
'BB+' from 'BB' and its Viability Rating (VR) to 'bb+' from 'bb'.
At the same time, the agency has affirmed Development Bank of the
Philippines' (DBP) Long-Term Foreign- and Local-Currency IDRs at
'BB+' and its VR at 'bb+'. The Outlooks on both banks are
Stable. A full rating breakdown is provided below.
The upgrade of LBP reflects its improved risk profile, with a
reduced burden of legacy non-performing assets over the past
several years. Its risk profile is now comparable with that of
DBP and similarly-rated institutions in other emerging markets.
The IDRs and National Ratings of DBP and LBP are driven by their
'bb+' VRs, reflecting their satisfactory capitalisation, funding
and earnings profiles but also asset-related risks, including
that of policy-oriented loans, and large borrower concentration.
Despite their policy role, the banks still adopt a largely
commercial approach, including towards credit risk assessment.
The '3' Support Rating and 'BB' Support Rating Floor for both
banks reflect Fitch's belief of a moderate probability of
extraordinary support from the government, in case of need. This
is because the agency views the banks to be systemically
important in the Philippines in light of their 100% state
ownership, policy mandates and sizeable presence in the domestic
banking system. However, the timeliness of state support could
be tempered by the Philippine government's moderate financial
capacity, as underscored by its IDR of 'BB+'.
Fitch sees limited rating upside to the banks' VRs, which are
rather high for quasi-policy banks and relative to major domestic
banks. This means any upgrade to the banks' IDRs is unlikely to
be driven by individual financial strength as underlined by their
VRs. Instead, upgrade prospects are more likely to come from
increased state support, on a sovereign rating upgrade, that is
manifested in a Support Rating Floor higher than the VR.
Pressure on the VRs may arise from a sharp increase in credit
losses leading to capital impairment, possibly as a result of
state-directed lending or protracted difficulties in domestic
operating conditions. However, Fitch views these as remote
prospects given the firm domestic economy, the banks' modest risk
appetite and sound loss-absorption capacity.
Asset quality at DBP and LBP has been comparable with that of
major domestic peers through recent cycles, despite risks from
large loan concentration and mandated lending. LBP has over time
reduced its non-performing assets, which had been a drag on its
financial profile.
Fitch expects both banks to maintain their high core
capitalisation which, along with satisfactory profit generation,
supports their capacity to absorb cyclical losses, to carry out
their public policy roles with minimal state financial support,
and to still pay dividends regularly to the government. Strong
links with the Philippine government support the banks' access to
official development assistance funds and public sector deposits,
thereby aiding their funding.
The 'BB+' rating of the senior notes is at the same level as
DBP's IDR, as the senior notes constitute the bank's direct,
unconditional and unsecured obligations and, hence rank equally
with its unsecured and unsubordinated obligations. The 'B+'
hybrid rating is three notches below DBP's VR due to the
instrument's deeply subordinated status and dividend deferral
mechanism. Changes of the IDR and VR would likely affect the
ratings of DBP's senior notes and hybrids, respectively.
The full list of rating actions is as follows:
LBP:
-- Long-Term Foreign-Currency IDR upgraded to 'BB+' from 'BB';
Stable Outlook
-- Long-Term Local-Currency IDR upgraded to 'BB+' from 'BB';
Stable Outlook
-- National Long-Term Rating upgraded to 'AA(phl)+' from
'AA(phl)'; Stable Outlook
-- Viability Rating upgraded to 'bb+' from 'bb'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB'
DBP:
-- Long-Term Foreign Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Long-Term Local-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- National Long-Term Rating affirmed at 'AA+(phl)'; Stable
Outlook
-- Viability Rating affirmed at 'bb+'
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB'
-- USD300m 5.5% senior notes 25 March 2021 affirmed at 'BB+'
-- USD130m perpetual callable subordinated hybrid notes
affirmed at 'B+'
=================
S I N G A P O R E
=================
BAXUS MARINE: Court Enters Wind-Up Order
----------------------------------------
The High Court of Singapore entered an order on Nov. 30, 2012, to
wind up the operations of Baxus Marine Pte Ltd.
Chia Soo Hien and Leow Quek Shiong filed the petition against the
company.
The company's liquidators are:
Chia Soo Hien and
Leow Quek Shiong
c/o BDO LLP
21 Merchant Road, #05-01
Royal Merukh S.E.A. Building
Singapore 058267
NORDLINGER AUTOMATION: Court to Hear Wind-Up Petition Dec. 21
-------------------------------------------------------------
A petition to wind up the operations of Nordlinger Automation Pte
Ltd will be heard before the High Court of Singapore on Dec. 21,
2012, at 10:00 a.m.
Sibghatullah s/o Mohammed Akhtar and Mohammed Abdullah filed the
petition against the company on Dec. 5, 2012.
The Petitioner's solicitors are:
Rajah & Tann LLP
No. 9 Battery Road
#25-01 Straits Trading Building
Singapore 049910
QIAN HUI: Creditors' Proofs of Debt Due Dec. 28
-----------------------------------------------
Creditors of Qian Hui Manufacturing (S) Pte Ltd are required to
file their proofs of debt by Dec. 28, 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
SEALS INVESTMENT: Creditors' Proofs of Debt Due Dec. 31
-------------------------------------------------------
Creditors of Seals Investment Holdings Pte Ltd, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Dec. 31, 2012, to be included in the company's
dividend distribution.
The company's liquidator is:
Sajjad A. Akhtar
c/o 146 Robinson Road #08-01
Singapore 068909
WISELEY MANAGEMENT: Court to Hear Wind-Up Petition Dec. 21
----------------------------------------------------------
A petition to wind up the operations of Wiseley Management Pte
Ltd will be heard before the High Court of Singapore on Dec. 21,
2012, at 10:00 a.m.
Income Growth Securities Limited filed the petition against the
company on Dec. 5, 2012.
The Petitioner's solicitors are:
Drew & Napier LLC
10 Collyer Quay
#10-01 Ocean Financial Centre
Singapore 049315
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Dec. 10 to Dec. 14, 2012
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
COM BK AUSTRALIA 1.50 04/19/22 AUD 70.32
EXPORT FIN & INS 0.50 06/15/20 NZD 73.29
MIDWEST VANADIUM 11.50 02/15/18 USD 58.91
MIDWEST VANADIUM 11.50 02/15/18 USD 59.00
MIRABELA NICKEL 8.75 04/15/18 USD 75.00
MIRABELA NICKEL 8.75 04/15/18 USD 72.38
NEW S WALES TREA 0.50 09/14/22 AUD 68.47
NEW S WALES TREA 0.50 10/07/22 AUD 68.28
NEW S WALES TREA 0.50 10/28/22 AUD 68.11
NEW S WALES TREA 0.50 11/18/22 AUD 68.78
NEW S WALES TREA 0.50 12/16/22 AUD 68.57
NEW S WALES TREA 0.50 02/02/23 AUD 68.21
NEW S WALES TREA 0.50 03/30/23 AUD 67.80
TREAS CORP VICT 0.50 08/25/22 AUD 68.86
TREAS CORP VICT 0.50 03/03/23 AUD 68.58
TREAS CORP VICT 0.50 11/12/30 AUD 50.59
CHINA
-----
CHINA GOVT BOND 4.86 08/10/14 CNY 104.19
CHINA GOVT BOND 1.64 12/15/33 CNY 68.45
INDIA
-----
AKSH OPTIFIBRE 1.00 02/05/13 USD 67.56
JCT LTD 2.50 04/08/11 USD 20.00
JSL STAINLESS LT 0.50 12/24/19 USD 66.63
MASCON GLOBAL LT 2.00 12/28/12 USD 10.00
PRAKASH IND LTD 5.63 10/17/14 USD 68.51
PRAKASH IND LTD 5.25 04/30/15 USD 66.51
PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00
REI AGRO 5.50 11/13/14 USD 68.33
REI AGRO 5.50 11/13/14 USD 68.33
SHIV-VANI OIL 5.00 08/17/15 USD 50.04
SUZLON ENERGY LT 5.00 04/13/16 USD 42.43
JAPAN
-----
EBARA CORP 1.30 09/30/13 JPY 100.09
ELPIDA MEMORY 2.03 03/22/12 JPY 14.50
ELPIDA MEMORY 2.10 11/29/12 JPY 14.50
ELPIDA MEMORY 2.29 12/07/12 JPY 14.50
ELPIDA MEMORY 0.50 10/26/15 JPY 14.00
ELPIDA MEMORY 0.70 08/01/16 JPY 15.13
JPN EXP HLD/DEBT 0.50 09/17/38 JPY 63.19
JPN EXP HLD/DEBT 0.50 03/18/39 JPY 63.05
KADOKAWA HLDGS 1.00 12/18/14 JPY 105.64
SHARP CORP 1.42 03/19/14 JPY 54.13
SHARP CORP 0.85 09/16/14 JPY 51.63
SHARP CORP 1.14 09/16/16 JPY 44.25
SHARP CORP 2.07 03/19/19 JPY 41.25
SHARP CORP 1.60 09/13/19 JPY 41.13
SOFTBANK CORP 1.50 03/31/13 JPY 150.34
TOKYO ELEC POWER 2.35 09/29/28 JPY 67.88
TOKYO ELEC POWER 2.40 11/28/28 JPY 69.13
TOKYO ELEC POWER 2.21 02/27/29 JPY 67.88
TOKYO ELEC POWER 2.11 12/10/29 JPY 66.25
TOKYO ELEC POWER 1.96 07/29/30 JPY 64.63
TOKYO ELEC POWER 2.37 05/28/40 JPY 62.00
MALAYSIA
--------
DUTALAND BHD 7.00 04/11/13 MYR 0.69
PHILIPPINES
-----------
BAYAN TELECOMMUN 13.50 07/15/49 USD 20.50
BAYAN TELECOMMUN 13.50 07/15/49 USD 20.50
SINGAPORE
---------
BAKRIE TELECOM 11.50 05/07/15 USD 58.00
BAKRIE TELECOM 11.50 05/07/15 USD 57.90
BLD INVESTMENT 8.63 03/23/15 USD 60.77
BLUE OCEAN 11.00 06/28/12 USD 37.75
BLUE OCEAN 11.00 06/28/12 USD 39.16
CAPITAMALLS ASIA 2.15 01/21/14 SGD 99.62
CAPITAMALLS ASIA 3.80 01/12/22 SGD 100.42
DAVOMAS INTL FIN 11.00 12/08/14 USD 28.63
DAVOMAS INTL FIN 11.00 12/08/14 USD 28.63
F&N TREASURY PTE 2.48 03/28/16 SGD 100.22
KOREA
-----
CN 1ST ABS 8.00 02/27/15 KRW 33.15
CN 1ST ABS 8.30 11/27/15 KRW 34.48
EXP-IMP BK KOREA 0.50 08/10/16 BRL 71.94
EXP-IMP BK KOREA 0.50 09/28/16 BRL 71.41
EXP-IMP BK KOREA 0.50 10/27/16 BRL 70.90
EXP-IMP BK KOREA 0.50 11/28/16 BRL 70.34
EXP-IMP BK KOREA 0.50 12/22/16 BRL 70.17
EXP-IMP BK KOREA 0.50 10/23/17 TRY 71.54
EXP-IMP BK KOREA 0.50 11/21/17 BRL 64.77
EXP-IMP BK KOREA 0.50 12/22/17 BRL 64.04
EXP-IMP BK KOREA 0.50 12/22/17 TRY 70.78
GREAT KO 3RD ABS 10.00 12/29/14 KRW 30.66
GYEONGGI MUTUAL 8.50 08/29/14 KRW 86.23
HYUNDAI SWISS BK 8.50 10/02/13 KRW 93.69
HYUNDAI SWISS BK 8.50 07/15/14 KRW 87.81
HYUNDAI SWISS BK 7.90 07/23/15 KRW 77.37
KIBO GRE 1ST ABS 10.00 01/25/15 KRW 30.54
SINBO 4TH ABS 8.00 08/18/14 KRW 30.14
SINBO 7TH ABS 8.00 09/22/14 KRW 29.90
SINBO CO 3RD ABS 10.00 09/29/14 KRW 30.66
SRI LANKA
---------
SRI LANKA GOVT 5.80 01/15/17 LKR 71.73
SRI LANKA GOVT 5.80 07/15/17 LKR 71.08
SRI LANKA GOVT 7.50 08/15/18 LKR 73.21
SRI LANKA GOVT 5.65 01/15/19 LKR 64.14
SRI LANKA GOVT 8.50 05/01/19 LKR 75.29
SRI LANKA GOVT 8.00 11/01/19 LKR 71.88
SRI LANKA GOVT 8.00 06/01/20 LKR 69.83
SRI LANKA GOVT 6.20 08/01/20 LKR 61.47
SRI LANKA GOVT 8.00 01/01/22 LKR 66.23
SRI LANKA GOVT 7.00 10/01/23 LKR 59.31
SRI LANKA GOVT 5.35 03/01/26 LKR 45.33
SRI LANKA GOVT 8.00 01/01/32 LKR 56.75
THAILAND
--------
BANGKOK LAND 4.50 10/13/03 USD 5.50
*********
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 ***