/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130124.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, January 24, 2013, Vol. 16, No. 17 Headlines A U S T R A L I A BIOCANE: Goes Into Voluntary Administration COFFS HARBOUR: Creditors to Decide on Club's Future PPI CORPORATION: Appoints PPB Advisory as Voluntary Administrator * AUSTRALIA: APS120 Change Could Boost SF Issuance, Fitch Says * Fitch Says Likely Aussie Dollar Decoupling Bad News for Miners C H I N A LONGFOR PROPERTIES: Moody's Assigns 'Ba3' Senior Unsecured Rating H O N G K O N G ACP INSURANCE: Ying and Chan Step Down as Liquidators ASIA RICH: Creditors' Proofs of Debt Due Feb. 19 CANWAY CONSULTANTS: Creditors' Proofs of Debt Due Feb. 18 HHR SUMMIT: Members' Final Meeting Set for Feb. 19 HK (ASIA): Wan and Fung Step Down as Liquidators HK MEDICAL: Creditors' Proofs of Debt Due Feb. 19 INFO-SOURCE MEDIA: Commences Wind-Up Proceedings INSPECTORATE HK: Wong Poh and Wong Tak Step Down as Liquidators INTERTEXTILE TRADING: Members' Final Meeting Set for Feb. 18 MEDICORP 2000: Wan and Fung Step Down as Liquidators I N D I A BHADRAKALI COTTON: CRISIL Assigns 'B' Rating to INR70MM Loans CMJ BREWERIES: CRISIL Places 'B-' Rating on INR139.4MM Loans EXPRESS INFOCOM: CRISIL Assigns 'B-' Rating to INR295MM Loans HI-MAC CASTINGS: CRISIL Puts 'B' Rating on INR104.7MM Loans KALIKA CEMENT: CRISIL Rates INR65MM Cash Credit at 'B+' KINGFISHER AIRLINES: Needs $186MM to Revive, Minister Says KINGFISHER AIRLINES: ILFC Says Six Airbus A320s 'Held Hostage' MOCHIKO SHOES: CRISIL Assigns 'BB-' Rating to INR139MM Loans PREMIUM SERUMS: Delay in Loan Payment Cues CRISIL Junk Ratings SACHIN FINECOT: CRISIL Assigns 'B' Ratings to INR89MM Loans SHAKTI AGRO: CRISIL Assigns 'B-' Rating to INR45MM Cash Credit SSV ENGINEERS: CRISIL Cuts Ratings on INR500MM Loans to 'D' J A P A N ELPIDA MEMORY: Micron Takeover Seen Restoring PC RAM Profits K O R E A * KOREA: Moody's Says Downgrade Rating Pressure to Increase N E W Z E A L A N D CRAFAR FARMS: Animal Abuse Trial Date Yet to be Set S I N G A P O R E CHIAN KEONG: Court to Hear Wind-Up Petition on Feb. 1 CHINA CITYONE: Court Enters Wind-Up Order EQUINOX OFFSHORE: Court to Hear Judicial Management Bid on Mar. 1 EVERVAST CONSTRUCTION: Court to Hear Wind-Up Petition on Feb. 1 HENG SHENG: Creditors Get 9.945% Recovery on Claims LINGUA TECH: Court to Hear Wind-Up Petition on Feb. 1 STANSFIELD GROUP: Court to Hear Wind-Up Petition on Jan. 25 S R I L A N K A VALLIBEL FINANCE: Fitch Affirms 'BB-' National LT Rating X X X X X X X X * Moody's Says Asian Firms Expect to Ease in Next 12 Months - - - - - ================= A U S T R A L I A ================= BIOCANE: Goes Into Voluntary Administration ------------------------------------------- ABC News reports that BioCane, a Sunshine Coast company, set up to produce cattle feed from sugarcane has been placed in voluntary administration. The deputy chairman of Australian Sugar Cane Feeds Pty Ltd, trading as BioCane, says a meeting of creditors will be held shortly to decide the future of the Nambour-based company, according to ABC News. The report relates that John Rivett says it will be up to the administrators, HLB Mann Judd, to decide on the future of BioCane's workforce. The company has more than 240 shareholders, including local cane growers. COFFS HARBOUR: Creditors to Decide on Club's Future --------------------------------------------------- Coffs Coast Advocate reports that creditors will meet next week to decide the future of the financially troubled Club Coffs on West High. The report relates that proxy votes will be cast on whether to place Coffs Harbour Recreation and Sporting Club Pty Ltd into liquidation or allow the club a new lease on trading. According to the report, the club's administrator Clout and Associates said the company was unable to provide returns of 100-cents on the dollar. Therefore, creditors must decide to either wind up the company or allow for a variation of the Deed of Company Arrangement. Unable to find an amalgamation partner or source banking finance, the club has obtained prospective finance of $1.1 million from private lender, McMillian Superannuation Custodian Pty Ltd, according to Coffs Coast Advocate. This injection would enable a further distribution of 50 cents in the dollar to creditors making a total return of 84 cents on their original claims, the report says. In return for lending the money, the report relates, the lender would take a first mortgage over the club's real estate and first charge over its assets. If creditors vote to wind up the company, Clout and Associates said all creditors would receive 100 cents in the dollar returns, the report relays. After liquidation, the distribution to ordinary unsecured creditors is dependent on the sale of the club property. The creditors meeting will be held at Club Coffs on West High on Jan. 30, 2013. Club Coffs, formerly known as Catholic Club, went into voluntary administration on Jan. 31, 2011. Morgan Chubb and David Morgan, from insolvency firm Clout and Associates, were appointed as administrators. The Advocate says Club Coffs president Paul Griffin and CEO Carl Mower cited the withdrawal of lending facilities by the National Australia Bank; an expensive legal battle; general community hardship and a decrease in turnover throughout all areas of the club as the reasons for the move, which allowed the club to continue providing its usual services and facilities. PPI CORPORATION: Appoints PPB Advisory as Voluntary Administrator ----------------------------------------------------------------- The directors of PPI Corporation Pty Ltd have appointed Stephen Longley -- slongley@ppbadvisory.com , David McEvoy -- dmcevoy@ppbadvisory.com , and Michael Owen -- mowen@ppbadvisory.com -- of PPB Advisory as voluntary administrators. PPI is a leading manufacturer and supplier of products for irrigation, drainage, water supply and domestic watering. It is headquartered in Brisbane and employs 275 staff. PPI has a national footprint with factories and sales offices located in Brisbane, Perth and Adelaide, and sales offices in Melbourne, Sydney and Hobart. PPI develops, manufactures and distributes polyethylene pipes and fittings, hoses and garden products, irrigation, drainage and filtration systems for the plumbing, resources and agricultural industries, and consumer/retail markets. Its principal brand names include PPI and Neta. Mr. Longley commented: "It has been necessary to cease manufacturing and temporarily stand down the workforce without pay. During the stand-down period the administrators will be conducting an urgent assessment of the viability of the business to determine whether operations can resume, with a view to selling the business as a going concern. "In the meantime, we will be holding urgent discussions with employees, union representatives, customers and suppliers." Patrick Stafford at SmartCompany relates that the collapse comes after the latest results from the Australian Industry Group showed the manufacturing index contracted during December. PPB is now searching for buyers for the company, with assets including a large customer base across the retail, plumbing and agricultural industries, along with a headquarters in Brisbane and factories and sales offices across the country, SmartCompany relays. A meeting of creditors will be held in Brisbane on Jan. 25, 2013. * AUSTRALIA: APS120 Change Could Boost SF Issuance, Fitch Says -------------------------------------------------------------- Regulatory changes could have a significant impact on Australian structured finance issuance in 2013, Fitch Ratings says. Specifically, the potential revision of Prudential Standard APS120 would have a direct impact on issuance levels by determining the capital treatment of securitisations and potentially opening up new issuance structures. "A draft paper on APS120 is expected early this year. The possible changes mooted by the Australian Prudential Regulation Authority include allowing date based call mechanisms and allowing an issuer to own more than 20% of its own issuance if securitisation is used for funding purposes. As a result, the changes may allow the introduction of RMBS Master Trusts for Australian issuers," Fitch says. "If so, we would expect at least the major Australian banks, already the dominant RMBS issuers in the country, to make use of the new structures, which will give them greater flexibility and speed in coming to market, and for issuance to increase accordingly. "If the APS120 revisions are forthcoming, we would expect an even greater increase in Australian SF supply this year, on top of the 10%-20% growth we already forecast. This forecast reflects more competitive pricing following a period of spread tightening, and potentially higher demand for Australian RMBS by offshore investors. "These pricing and demand considerations also apply to non-bank issuers. If spreads continue to tighten, we expect non-banks in both the prime and non-conforming RMBS space to increase originations of loans with more confidence of continuity of funding. This in turn can be expected to result in greater issuance towards the end of 2013 and into 2014. "Australian SF issuance in 2012 totalled AUD18.5 billion. RMBS issuance was again the dominant asset class in Australia with total issuance of AUD13.4 billion. "We expect ABS to have a strong issuance year and continue to take a growing market share of issuance compared with RMBS. 2012 ABS issuance levels reached AUD5.1 billion via 11 issues from eight issuers and we expect the continued expansion of the ABS market into 2013 on the back of tighter pricing and good historical performance of the asset class." Australian SF collateral is performing within expectations and Fitch continues to have a stable asset outlook on both RMBS and ABS collateral. For further information refer to 2013 Outlook: Australia and New Zealand Structured Finance and Covered Bonds available at www.fitchratings.com. * Fitch Says Likely Aussie Dollar Decoupling Bad News for Miners ---------------------------------------------------------------- The Australian dollar has an increasingly important role as a reserve currency. This could remove the smoothing impact that the currency's historically strong correlation with commodity prices has had on the reported results of Australian mining companies, Fitch Ratings says. The strong correlation between the Australian dollar and price of commodities such as iron ore and coal smoothed the results of mining companies and was of particular benefit when the performance of both was weak. Lower US dollar revenues from depressed commodity prices were partially offset by the translation of Australian dollar costs to the company's US dollar-denominated profit statement at a lower rate. However, Australia's strong economic performance in recent years has increased the Australian dollar's popularity as a reserve currency to such an extent that the International Monetary Fund is considering whether to include it in the fund's regular report on foreign exchange holdings. Relatively high interest rates compared with other developed markets also continue to attract investors. "This demand for the Australian dollar helped the currency remain strong in 2012 despite a drop in commodity prices. This is likely to continue to support the currency in the near term and will add to the pressure we expect mining companies to face from a combination of cost inflation and stagnant commodity prices in 2013," Fitch states. "It is unclear if this decoupling will become permanent as economic conditions in other developed markets improve. But if it does continue, it will increase volatility in mining companies' reported results as factors other than commodity prices have a bigger influence on the currency. The impact will be greatest on companies whose operations and assets are concentrated in Australia and use the US dollar as the functional currency, such as Fortescue Metals Group Limited. For the global mining companies like BHP Billiton and Rio Tinto, the impact will be mitigated by conservative financial and leverage profiles and by their commodity and geographic diversification," Fitch adds. ========= C H I N A ========= LONGFOR PROPERTIES: Moody's Assigns 'Ba3' Senior Unsecured Rating ----------------------------------------------------------------- Moody's Investors Service has assigned a Ba3 senior unsecured rating to Longfor Properties Company Limited's proposed bond issuance. At the same time, Moody's will continue to review for upgrade the company's Ba2 corporate family rating and Ba3 senior unsecured bond rating. Longfor plans to use a substantial portion of the proceeds for refinancing and the remainder for general corporate purposes. Ratings Rationale "The proposed bond issuance will further strengthen Longfor's liquidity position and debt maturity profile," says Kaven Tsang, a Moody's Vice President and Senior Analyst. "Furthermore, the new issuance will have a limited impact on Longfor's key credit metrics -- including adjusted debt/capitalization and EBITDA/interest -- as the proceeds will be used mainly to repay existing bank loans," adds Tsang, also Moody's Lead Analyst for the company. Based on its 1H 2012 results, the company's EBITDA/interest was 5.5x (on a last-12-month basis) and its adjusted debt/capitalization was 52%. These metrics are strong for its current Ba2 corporate family rating. Moody's also expects market conditions in 2013 to remain stable. This situation will allow Longfor to maintain its operating and financial profiles. In its assessment, Moody's will review Longfor's: 1) 2012 financial results, 2) future business and land acquisition strategies, and 3) funding needs and debt leverage in the next two years. If Longfor sustains its favorable credit metrics, in addition to cash/total assets of around 10%, then there would be pressure for an upgrade. The principal methodology used in rating Longfor Properties Company Limited was the Global Homebuilding Industry Methodology published in March 2009. Longfor Properties Company Limited is one of the leading developers in China's residential and commercial property development sector. Founded in 1994, the company began its business in Chongqing and has since established a leading brand name in the municipality. As of December 31, 2012, the company had 80 projects in 18 different cities under development or planning with a total land bank of approximately 41.0 million sqm in GFA. ================ H O N G K O N G ================ ACP INSURANCE: Ying and Chan Step Down as Liquidators ----------------------------------------------------- Ying Hing Chiu and Chan Mi Har stepped down as liquidators of ACP Insurance Brokers Limited on Jan. 9, 2013. ASIA RICH: Creditors' Proofs of Debt Due Feb. 19 ------------------------------------------------ Creditors of Asia Rich Holdings Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 19, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 18, 2013. The company's liquidator is: Ng Ching Na Room 1205, 12/F Manulife Provident Funds Place No. 345 Nathan Road Kowloon CANWAY CONSULTANTS: Creditors' Proofs of Debt Due Feb. 18 --------------------------------------------------------- Creditors of Canway Consultants Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 18, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 9, 2013. The company's liquidators are: Chan Cheuk Ying Lee Cho Yiu Julia Suite 1, 8/F New Henry House 10 Ice House Street Central, Hong Kong HHR SUMMIT: Members' Final Meeting Set for Feb. 19 -------------------------------------------------- Members of HHR Summit Fitness Center (HK) Limited will hold their final general meeting on Feb. 19, 2013, at 10:00 a.m., at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong. At the meeting, Ying Hing Chiu and Chan Mi Har, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. HK (ASIA): Wan and Fung Step Down as Liquidators ------------------------------------------------ Dr. Terence Ho Yuen Wan and Henry Fung stepped down as liquidators of Hong Kong (Asia) Exhibition Company Limited on Jan. 7, 2013. HK MEDICAL: Creditors' Proofs of Debt Due Feb. 19 ------------------------------------------------- Creditors of Hong Kong Medical & Healthcare Forum Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 19, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 10, 2013. The company's liquidator is: Chan Mei Bo Mabel Suites 2208-11, 22nd Floor Tower One, Times Square 1 Matheson Street Causeway Bay, Hong Kong INFO-SOURCE MEDIA: Commences Wind-Up Proceedings ------------------------------------------------ Members of Info-Source Media Limited, on Jan. 11, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Poon Wai Hung Richard Room 1410, Harbour Centre No. 25 Harbour Road Wanchai, Hong Kong INSPECTORATE HK: Wong Poh and Wong Tak Step Down as Liquidators --------------------------------------------------------------- Wong Poh Weng and Wong Tak Man Stephen stepped down as liquidators of Inspectorate Hong Kong Limited on Jan. 11, 2013. INTERTEXTILE TRADING: Members' Final Meeting Set for Feb. 18 ------------------------------------------------------------ Members of Intertextile Trading Limited will hold their final meeting on Feb. 18, 2013, at 10:00 a.m., at 20/F, Fung House, No. 19-20 Connaught Road Central, in Hong Kong. At the meeting, Ng Chit Sing, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MEDICORP 2000: Wan and Fung Step Down as Liquidators ---------------------------------------------------- Dr. Terence Ho Yuen Wan and Henry Fung stepped down as liquidators of Medicorp 2000 Limited on Jan. 7, 2013. ========= I N D I A ========= BHADRAKALI COTTON: CRISIL Assigns 'B' Rating to INR70MM Loans ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Bhadrakali Cotton Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 23.5 CRISIL B/Stable SME Credit 2.5 CRISIL B/Stable Cash Credit 30.0 CRISIL B/Stable Proposed Long-Term 14.0 CRISIL B/Stable Bank Loan Facility The rating reflects BCI's below average financial risk profile, marked by small net worth, high gearing, and modest debt protection metrics, and susceptibility to adverse regulatory changes. These rating weaknesses are partially offset by the extensive industry experience of BCI's partner in the cotton business and the locational advantage of being in the cotton belt of Andhra Pradesh. Outlook: Stable CRISIL believes that Bhadrakali Cotton Industries (BCI) will continue to benefit from its promoters industry experience over the medium term. The outlook may be revised to 'Positive' if BCI increases its revenues significantly and along with it improves its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' if BCI undertakes a larger-than- expected debt-funded capital expenditure programme or its sales volumes and profitability decline sharply. Incorporated in July 2009, Bhadrakali Cotton Industries stared its commercial operations from March 2010. The day to day operations is handled by Mr. N. Suresh. The firm is based out of Karimnagar district of Andhra Pradesh. The firm is engaged in ginning and pressing of raw cotton (Kapas) with a capacity of 160 bales per day. The firm processes raw cotton (kappas) in to cotton bales and cotton seeds and caters to domestic market as well as international market through export agents. BCI reported a profit after tax (PAT) of INR1.1 million on net sales of INR231.7 million for FY12' as against a PAT of INR0.6 million on net sales of INR216.2 million for FY11'. CMJ BREWERIES: CRISIL Places 'B-' Rating on INR139.4MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B-/Stable' rating to the long- term bank facilities of CMJ Breweries Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 39.4 CRISIL B-/Stable Term Loan 100 CRISIL B-/Stable The rating reflects expected weakening of CBPL's finanacial risk profile owing to its large ongoing capital expenditure (capex), risk related to timely execution and scale-up of the capex, and vulnerability of operating margins to volatility in raw material prices. These rating weaknesses are partially offset by the extensive experience of the promoters across various industries. Outlook: Stable CRISIL expects CBPL financial risk profile will remain over the medium term weak due to its large on-going capex. The outlook may be revised to 'Positive' in case the company stabilises its on- going capital expansion (capex) programme within the set timelines and budgeted cost, and generates higher-than-expected cash accruals to service its debt obligations over the medium term. The outlook may be revised to 'Negative' if there is a significant time or cost overrun in CBPL'S on-going project or if the company undertakes any additional large, debt-funded capex leading to more-than-expected deterioration in the company's financial risk profile, especially its liquidity. CBPL, incorporated in 2007, is promoted by Mr. Ronak Jain. The company is engaged in the manufacturing of beer for Mohan Meakin group. The company manufactures two brands 'Meakins 10000' and 'Asia 72'. The company has its manufacturing facility located at Byrnihat, Meghalaya,). The company is also setting up an integrated bottling plant in Byrnihat (Meghalaya) to manufacture Extra Neutral Alcohol (ENA), Indian Made Foreign Liquor (IMFL), along with captive power generation. EXPRESS INFOCOM: CRISIL Assigns 'B-' Rating to INR295MM Loans ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the long- term bank facilities of Express Infocom Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Overdraft Facility 30 CRISIL B-/Stable Term Loan 265 CRISIL B-/Stable The rating reflects EIPL's weak financial risk profile, marked by weak debt protection metrics and high geographic concentration in revenue profile. These weaknesses are partially offset by the extensive experience of EIPL's promoters in the real estate industry, the favourable location of its hotel, and benefits it derives from its association with the Sarovar group. Outlook: Stable CRISIL's believes that EIPL's credit risk profile will remain sensitive to the timely infusion of funds by its promoters to service its debt, given its low cash accruals due to its initial years of operations. The outlook may be revised to 'Positive' if EIPL achieves higher-than-expected average room rent and occupancy rates in its initial phase of operations, resulting in comfortable accruals and thus improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of any delay in funding support from the promoters to meet its term debt obligations. Incorporated in 2006 and based in Delhi, EIPL is engaged in running a business hotel under the brand name Express Sarovar Portico at Surajkund, Faridabad (Haryana). For 2011-12 (refers to financial year, April 1 to March 31), EIPL reported a loss of INR27.8 million on net revenues of INR61.3 million, against a loss of INR22.8 million on net revenues of INR44 million in 2010-11. HI-MAC CASTINGS: CRISIL Puts 'B' Rating on INR104.7MM Loans ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Hi-Mac Castings Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 54.7 CRISIL B/Stable Letter of Credit 20 CRISIL A4 Cash Credit 50 CRISIL B/Stable Bank Guarantee 5.1 CRISIL A4 Bill Discounting 8.2 CRISIL A4 The ratings reflect HMCPL's weak financial profile, marked by high gearing and weak debt protection metrics, and small scale of operations in the intensely competitive castings industry. These rating weaknesses are partially offset by the extensive industry experience of HMCPL's promoters and established relationships with customers. Outlook: Stable CRISIL believes that HMCPL will maintain a stable business risk profile over the medium term, driven by extensive experience of promoters. The outlook may be revised to 'Positive' in case of larger-than-expected cash accruals, backed by increased order flow and improvement in profitability ,and improvement in working capital management, leading to improvement in liquidity. Conversely, the outlook may be revised to 'Negative' if HMCPL's order flow or profitability declines or there is deterioration in financial risk profile due to higher than expected capital expenditure plan, or deterioration in its liquidity profile due to stretch in working capital requirement. Incorporated in 2006, HMCPL manufactures cast iron castings used in automobile components. HMCPL is currently managed by Dr. K M Kanani. HMCPL reported a net loss of INR11 million on a net sales of INR288.3 million for 2011-12 (refers to financial year, April 1 to March 31), as against a net profit of INR1.36 million on net sales of INR139.55 million for 2010-11. KALIKA CEMENT: CRISIL Rates INR65MM Cash Credit at 'B+' ------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank loan facilities of Kalika Cement Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 65 CRISIL B+/Stable Letter of Credit 97.5 CRISIL A4 The ratings reflect KCL's stretched liquidity owing to working- capital-intensive operations, and its below-average financial risk profile, marked by low profitability and weak debt protection measures. These rating weaknesses are partially offset by the benefits that KCL derives from its diversified and established customer base. To arrive at the rating, CRISIL has treated unsecured loans of INR50 million-provided to KCL by its promoters, and their friends and relatives-as neither debt nor equity. This is because, the promoters have provided an undertaking to CRISIL that these loans will not be withdrawn from the business in the next three years. Outlook: Stable CRISIL believes that KCL will benefit over the medium term from its diversified and established customer base. The outlook may be revised to 'Positive' if KCL's financial risk profile, particularly liquidity, improves, backed by higher-than-expected cash accruals, prudent working capital management, or equity infusion by promoters. Conversely, the outlook may be revised to 'Negative' if liquidity or financial risk profile weakens on account of stretch in working capital or significant debt-funded capex. KCL was set up in 1995 by Mr. Sumit Bagaria as Kalika Cement Company Pvt Ltd. In 2008, the company was acquired by Kolkata- based Goel family, and reconstituted as a public limited company, KCL. KCL trades in clinker and cement. The company also operates a cement grinding unit at Asansol, West Bengal. KCL manufactures ordinary portland cement (OPC). KINGFISHER AIRLINES: Needs $186MM to Revive, Minister Says ---------------------------------------------------------- Karthikeyan Sundaram at Bloomberg News reports that India Civil Aviation Minister Ajit Singh said Kingfisher Airlines Ltd. needs at least INR10 billion ($186 million) to restart operations. "They need to prove they've the ability to scale up funds to sustain operations," Mr. Singh told reporters in New Delhi Tuesday, Bloomberg relates. Kingfisher Airlines also needs to obtain statements from creditors, including banks, airport operators and employees that they don't object to a resumption of flights, Mr. Singh, as cited by Bloomberg, said. Bloomberg notes that Mr. Singh's estimate on funds required by Kingfisher exceeds a 6.5 billion-rupee recovery plan that Chairman Vijay Mallya, a founder of the airline, outlined to employees on Jan. 10. According to Bloomberg, a Civil Aviation Ministry official, who declined to be identified citing government rules, said India's government is willing to support Kingfisher's efforts to restart business provided the carrier pays employees back wages in full. Kingfisher, the only Indian carrier with orders for Airbus SAS A380 superjumbos, hasn't paid workers since May, the report says. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 5, 2012, The Times of India said Kingfisher Airlines has been given a reality check by its auditors in the company's annual report 2011-12. The company had current liabilities, including borrowings and trade payables of INR8,436 crore, against current assets of INR1,618.8 crore at the end of March 2012. According to TOI, the Vijay Mallya-promoted company has defaulted in repayment of loans to banks and financial institutions, for which several lenders have had to take a hit by setting aside more funds, with overdues estimated at nearly INR800 crore at the end of March 2012. Kingfisher, which has been unprofitable since it was created in 2005, accumulated losses of $1.9 billion between May 2005 and June 30 of this year, The Wall Street Journal reported citing Sydney-based consultant CAPA-Centre for Aviation. The airline also owes about $2.5 billion to lenders, suppliers, leasing companies and investors, the Journal added. According to The Times of India, the company began showing signs of weakness in November 2011 when it ran out of money to operate most of its flights and started reducing its flights to cut cost. The airline also failed to pay salaries to its employees for a long time following which the employees went on an indefinite strike. Its flying license was finally suspended in October 2012, TOI reported. KINGFISHER AIRLINES: ILFC Says Six Airbus A320s 'Held Hostage' -------------------------------------------------------------- Andrea Rothman and Karthikeyan Sundaram at Bloomberg News report that International Lease Finance Corp. is struggling to retrieve six Airbus SAS aircraft in India formerly operated by Kingfisher Airlines Ltd., saying it's being "held hostage" by local government authorities. According to Bloomberg, the world's second-biggest aircraft leasing company had sought to repossess the planes, saying the carrier was in default of contract conditions. Bloomberg relates that ILFC Chief Executive Officer Henri Courpron said while India's civil aviation authority said it has deregistered four aircraft and will soon proceed with the other two, ILFC still can't get them back because other government bodies have yet to cooperate. "Deregistration is only one of the steps you need to get the airplanes out of the country," the report quotes Mr. Courpron as saying in an interview in Dublin at a conference sponsored by Airline Economics. "There are other authorities in the country, like airports and tax authorities, who have an ax to grind against Kingfisher and we are being held hostage to this process." About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 5, 2012, The Times of India said Kingfisher Airlines has been given a reality check by its auditors in the company's annual report 2011-12. The company had current liabilities, including borrowings and trade payables of INR8,436 crore, against current assets of INR1,618.8 crore at the end of March 2012. According to TOI, the Vijay Mallya-promoted company has defaulted in repayment of loans to banks and financial institutions, for which several lenders have had to take a hit by setting aside more funds, with overdues estimated at nearly INR800 crore at the end of March 2012. Kingfisher, which has been unprofitable since it was created in 2005, accumulated losses of $1.9 billion between May 2005 and June 30 of this year, The Wall Street Journal reported citing Sydney-based consultant CAPA-Centre for Aviation. The airline also owes about $2.5 billion to lenders, suppliers, leasing companies and investors, the Journal added. According to The Times of India, the company began showing signs of weakness in November 2011 when it ran out of money to operate most of its flights and started reducing its flights to cut cost. The airline also failed to pay salaries to its employees for a long time following which the employees went on an indefinite strike. Its flying license was finally suspended in October 2012, TOI reported. MOCHIKO SHOES: CRISIL Assigns 'BB-' Rating to INR139MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long- term bank facility of Mochiko Shoes Pvt Ltd (MSL; part of the Mochiko group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 110 CRISIL BB-/Stable Term Loan 29 CRISIL BB-/Stable The rating reflects the benefits that the Mochiko group derives from the extensive industry experience of its promoters and established relationship with its customers. These rating strengths are partially offset by the Mochiko group's high customer concentration, working capital intensive operations and moderate financial risk profile, marked by highly leveraged capital structure and moderate debt protection metrics. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of MSL and Mochiko Shoes, together referred to as the Mochiko group. This is primarily because both entities are controlled by the same management and are in the footwear manufacturing business. The entities also derive considerable operational, financial, and business synergies from each other. MSL holds 20% stake in MS. Outlook: Stable CRISIL believes that the Mochiko group will continue to benefit over the medium term from its promoters' extensive industry experience and its established relationship with customers. The outlook may be revised to 'Positive' if the group scales up its operations and diversifies its customer base, thereby improving its financial risk profile. Conversely, the outlook may be revised to 'Negative' if the company's order book shrinks, or its financial risk profile deteriorates, owing to stretched working capital cycle or decline in its operating income or operating profitability. About the Group Incorporated in 2007 by Mr. Virender Awal, MSL manufactures sports shoes. Its manufacturing facilities are at Dehradun (Uttarakhand) and Noida (Uttar Pradesh). Established in 2010, Mochiko Shoes (MS, a partnership firm manufactures sports shoes. Its manufacturing facility is at Dehradun (Uttarakhand). MSL reported a profit after tax (PAT) of Rs4.9million on net sales of INR843.5 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR18.9 million on net sales of INR766.9 million for 2010-11. PREMIUM SERUMS: Delay in Loan Payment Cues CRISIL Junk Ratings -------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the bank facilities of Premium Serums and Vaccines Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Working Capital 20 CRISIL D Demand Loan Cash Credit 4 CRISIL D Term Loan 96 CRISIL D The rating reflects instances of delay by PSVPL in servicing its debt; the delays have been caused by the company's weak liquidity. PSVPL has weak liquidity because of its depressed cash accruals, which are on account of the fact that the company has recently commenced operations, and has large working capital requirements. PSVPL also has a weak financial risk profile, marked by a small net worth and a high gearing, and small scale of operations. However, the company benefits from its promoters' extensive industry experience and the funding support that it receives from them. PSVPL was set up in 2008-09 (refers to financial year, April 1 to March 31) by Dr. Shyam Dhawan and Dr. Girish Kolwankar. The company manufactures anti-snake venom serum, anti-snake venom plasma, and anti-rabies serum. The company's manufacturing facilities are located at Narayangaon (Maharashtra). SACHIN FINECOT: CRISIL Assigns 'B' Ratings to INR89MM Loans ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Sachin Finecot Fibers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 65 CRISIL B/Stable Term Loan 24 CRISIL B/Stable The rating reflects SFF's startup nature of operations in a highly competitive and fragmented cotton ginning industry, susceptibility of its margins to volatility in cotton prices and vulnerability to regulatory regime governing the cotton industry. The rating also factors in the firm's below-average financial risk profile marked by modest net worth, high gearing and subdued debt protection metrics. These rating weaknesses are partially offset by extensive experience of SFF's partners in the cotton ginning business. Outlook: Stable CRISIL believes that SFF will benefit from its partners' extensive experience in the cotton ginning business. The outlook may be revised to 'Positive' if the firm records a significant and sustained improvement in its scale of operations, while improving its capital structure. Conversely, the outlook may be revised to 'Negative' if the firm reports lower than expected revenues or margins or its working capital cycle lengthens significantly resulting in weakening of its financial risk profile. SFF was set up as a partnership firm in May 2012 by Mr. Navin Tayal and Mr. Hitesh Tayal and started cotton ginning and pressing operations in December 2012. The partners have been involved in the cotton ginning business for over two decades through the group entity Sachin Agro Industries. SFF's manufacturing unit is located at Aurangabad, Maharashtra. SHAKTI AGRO: CRISIL Assigns 'B-' Rating to INR45MM Cash Credit -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the cash credit facility of Shakti Agro Cold Storage. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 45 CRISIL B-/Stable (Assigned) The rating reflects the weak financial risk profile along with small scale of operations and fragmented nature of the cold storage industry. These rating weaknesses are partially offset by SACS's moderate business risk profile aided by proprietor's long standing experience in the cold storage industry. Outlook: Stable CRISIL believes that SACS will continue to benefit over the medium term from its proprietor's extensive experience in the cold storage industry. The outlook may be revised to 'Positive' if the company is able to scale up its operations, while it improves its profitability or its capital structure, leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if SACS's liquidity is constrained by delays in repayments by farmers, lower-than- expected cash accruals or any debt-funded capex. SACS was incorporated in the year 2005 by Mr Suresh Govind Rodekar as a proprietorship firm. Based in Belgaum, Karnataka the firm is engaged in providing cold storage services primarily temperature controlled warehosuing(TCW). For 2011-12 (refers to financial year, April 1 to March 31), SACS reported a profit after tax (PAT) of INR3.23 million on net sales of INR6.52 million, against a PAT of INR2.70 million on net sales of INR5.07 million for 2010-11. SSV ENGINEERS: CRISIL Cuts Ratings on INR500MM Loans to 'D' ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of SSV Engineers Pvt Ltd (SSV) to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL BB/Stable/CRISIL A4+'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 180 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') Letter of credit & 50 CRISIL A4 (Downgraded from Bank Guarantee 'CRISIL A4+') Proposed Bank Guarantee 50 CRISIL A4 (Downgraded from 'CRISIL A4+') Proposed Cash Credit 100 CRISIL B+/Stable(Downgraded Limit from 'CRISIL BB/Stable') Proposed Long-Term Bank 20 CRISIL B+/Stable (Downgraded Loan Facility from 'CRISIL BB/Stable') Term Loan 200 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') The rating downgrade reflects deterioration in SSV's liquidity on account of unprecedented stretch in its working capital requirements. The sharp increase in topline and continued high gross current assets of over 220 days as on March 31, 2012 have led to significant pressure on the company's liquidity. Consequently, despite enhancement in working capital bank lines, there is no cushion available to the company. The ratings reflect SSV's below-average financial risk profile, marked by average net worth, high gearing, and weak debt protection metrics, large working capital requirements, customer and end-user industry concentration in revenue profile, and susceptibility to volatility in raw material prices. These rating weaknesses are partially offset by the benefits that SSV derives from its promoter's industry experience and its established relationships with its customers. Outlook: Stable CRISIL believes that SSV's financial risk profile will be constrained by highly leveraged capital structure and weak liquidity. The outlook may be revised to 'Positive' if there is significant improvement in SSV's gearing and liquidity, most likely through equity infusion. Conversely, the outlook may be revised to 'Negative' if SSV's liquidity comes under further pressure owing to stretch in working capital cycle or sharp deterioration in profitability. SSV commenced operations by acquiring two proprietary concerns, SSV Engineers and Steel Wind Energy, owned by Mr. V M Shinde, with effect from April 2008. SSV is engaged in fabrication of mild steel structurals (such as platform structures for boilers and heavy foundations of windmills), and components (pressure vessel covers), mainly for pressure vessels. The main processes carried out by SSV are cutting, bending, welding, and finishing. The company has three fabrication units: two based near Pune (one each in Pimpri and Chakan) and one at Indapur (all in Maharashtra). SSV reported a profit after tax (PAT) of INR18.6 million on an operating income of INR951.4 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR34.3 million on an operating income of INR644.5 million for 2010-11. ========= J A P A N ========= ELPIDA MEMORY: Micron Takeover Seen Restoring PC RAM Profits ------------------------------------------------------------ Tim Culpan at Bloomberg News reports that Micron Technology Inc.'s takeover of Elpida Memory Inc. and the exits of Taiwanese makers could help challengers to PC memory-chip leader Samsung Electronics Co. return to profit after losing $21 billion in five years. Prices of benchmark dynamic random-access memory chips, the most common component in personal computers, have climbed 49 percent since Nov. 30, Bloomberg relates citing TrendForce Corp.'s DRAMeXchange, which tracks the market. That rebound followed a 23 percent drop in the previous six months that pushed prices below break-even levels, the report relays. Micron, the largest U.S. maker of memory chips, agreed in July to buy bankrupt Elpida for JPY200 billion ($2.2 billion) as it seeks to compete with South Korea's Samsung and SK Hynix Inc. Closure of that deal and moves by Taiwan-based manufacturers to leave the business would put at least 90% of the market under the control of three companies, Bloomberg notes. "Hynix and Micron had been making a bit of a loss at these prices, but going forward I think they are going to go into profitability by the end of the year," Bloomberg quotes Mark C. Newman, a Hong Kong-based analyst for Sanford C. Bernstein, as saying. Mr. Newman rates Micron and Samsung outperform and SK Hynix market perform, the report notes. About Elpida Memory Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. ========= K O R E A ========= * KOREA: Moody's Says Downgrade Rating Pressure to Increase ----------------------------------------------------------- Moody's Investors Service says that sovereign credit fundamentals in North Asia -- specifically China (Aa3 positive), Japan (Aa3 stable) and Korea (Aa3 stable) -- will remain resilient to global headwinds, as policy frameworks will support economic growth in 2013. In addition, each country's corporate and banking sectors will face a mix of similar and individually specific challenges. "With the sovereign outlook, leadership changes in these big three North Asian economies in late 2012 should prove positive for pro-growth policies in the near term, although Japan in particular faces long-term challenges," says Tom Byrne, a Senior Vice President with Moody's Sovereign Risk Group. "At the same time, rising geopolitical tensions over the past year -- involving all three -- have emerged over maritime territorial disputes, and may have significant economic ramifications if not constructively managed," adds Byrne. Moody's conclusions were contained in three newly released outlooks -- authored by its analytical teams in the region -- for Asia Pacific's sovereigns, corporates and banks over the course of 2013. For Asia Pacific as a whole, Moody's expects sovereign credit profiles to withstand the risks related to both the headwinds to global growth and the persistence of extraordinary monetary easing by the US Federal Reserve. The region will also continue to grow faster relative to other regions, and growth in China will moderate, with no hard landing. "With the corporate outlook, for Asia (ex-Japan), Moody's expects downward rating pressure to ease in the next 12 months, given stabilizing economic growth in China and manageable refinancing risks," says Chris Park, a Vice President and Senior Credit Officer for Moody's Corporate Finance Group. Specifically, the credit quality of Chinese corporate issuers should stabilize, supported by a more benign environment for market liquidity, modest growth in property sales, and public investments in infrastructure projects. In the case of Korea, downward rating pressure on private sector corporate issuers could increase, driven by a sluggish housing market, subdued private consumption, the won's appreciation, and aggressive investment strategies. "However, negative rating actions will still outpace positive ones, although to a much less extent, because the weak growth in the developed markets and the lower plateau for Chinese economic growth will continue to pressure Asia's export-oriented corporates and those in cyclical sectors," says Park. The sectors in North Asia most vulnerable to any economic down- turn are coal mining (negative); refining & marketing (stable); shipping (negative); steel (stable); and consumer electronics (negative) & semiconductors. Moody's also expects the short-term liquidity risks of rated Asian corporates to remain manageable in 2013, supported by a benign liquidity environment, relatively low levels of offshore bonds maturing over the next 12 months, and the variety of funding channels currently available to high-yield corporates. For the banks in the region, the broad credit outlook is stable on the expectation that they will remain largely insulated from the negative credit pressures affecting their peers in many Western economies. "We consider that this stable outlook is driven mainly by the region's economic resilience; its relatively accommodative monetary policy; and the banks' own strong liquidity when compared to global norms, as well as their relatively robust capital buffers," says Stephen Long, the Managing Director for Moody's Financial Institutions Group in Asia Pacific. "In terms of individual banking systems, with the Chinese banks, the risks of a systemic crisis materializing in 2013 are low. Meanwhile, with Japan, the credit conditions for its banks will remain stable despite a generally weak economic outlook," says Long. For banks in several export-related economies, such as Hong Kong, Taiwan and Korea, macroeconomic recovery will mean that any cyclical rise in non-performing loans (NPLs) will be modest. All the banking systems in North Asia -- China, Hong Kong, Japan, Korea and Taiwan -- have stable outlooks. ==================== N E W Z E A L A N D ==================== CRAFAR FARMS: Animal Abuse Trial Date Yet to be Set --------------------------------------------------- The Daily Post reports that a date is yet to be set for the trial of five parties linked to the running of Crafar Farms, who between them face hundreds of charges of animal abuse. The parties' lawyers appeared in Rotorua District Court on January 22 where the case was adjourned until a further callover on February 21, the report says. The five accused are Craig Coote (farm manager), Raymond Griffen (farm worker), Southland dairy management company MilkPride and company directors Murray Flett and Ross Cottier, the Daily Post discloses. They have been charged with failing to prevent suffering, cruelty and ill treatment of animals, the report notes. About Crafar Farms Crafar Farms, New Zealand's largest family owned dairy business, runs about 20,000 milking cows, and carries about 10,000 of other stock. The company employed 200 staff. Crafar Farms was placed in receivership in October 2009, by its lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson Finance. The banks, owed around NZ$200 million, put KordaMentha partners Michael Stiassny and Brendon Gibson in as receivers after Crafar Farms breached covenants on its loans. The four Crafar companies in receivership are Plateau Farms, Ferry View Farms, Hillside Limited and Taharua Limited. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 5, 2012, Radio New Zealand said the Crafar family farms are now legally in the hands of their new Chinese owner. Radio NZ said the Shanghai Pengxin group had to overcome legal challenges from New Zealand farming and Maori interests but finally took possession of the 16 North Island farms on Nov. 30, 2012. ================= S I N G A P O R E ================= CHIAN KEONG: Court to Hear Wind-Up Petition on Feb. 1 ----------------------------------------------------- A petition to wind up the operations of Chian Keong Trading Pte Ltd will be heard before the High Court of Singapore on Feb. 1, 2013, at 10:00 a.m. Malayan Banking Berhad filed the petition against the company on Jan. 4, 2013. The Petitioner's solicitors are: Rajah & Tann LLP No. 9 Battery Road #25-01 Straits Trading Building Singapore 049910 CHINA CITYONE: Court Enters Wind-Up Order ---------------------------------------- The High Court of Singapore entered an order on Jan. 11, 2013, to wind up operations of China Cityone Communications Limited. The company's liquidators are: Chee Yoh Chuang Mr Abuthahir Abdul Gafoor care of Messrs Stone Forest Corporate Advisory Pte Ltd 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 EQUINOX OFFSHORE: Court to Hear Judicial Management Bid on Mar. 1 ----------------------------------------------------------------- An application to place Equinox Offshore Accommodation Limited under judicial management will be heard before the High Court of Singapore on March 1, 2013, at 10:00 a.m. Steven Yit Chee Wah has been nominated as judicial manager. The Applicant's solicitors are: Pan Asia Wikborg Rein LLC 6 Raffles Quay #10-05/06 Singapore 048580 EVERVAST CONSTRUCTION: Court to Hear Wind-Up Petition on Feb. 1 --------------------------------------------------------------- A petition to wind up the operations of Evervast Construction Pte Ltd will be heard before the High Court of Singapore on Feb. 1, 2013, at 10:00 a.m. The Comptroller of Goods and Services Tax and The Comptroller of Income Tax filed the petition against the company on Jan. 10, 2013. The Petitioner's solicitors are: Infinitus Law Corporation 77 Robinson Road #16-00, Robinson 77 Singapore 068896 HENG SHENG: Creditors Get 9.945% Recovery on Claims --------------------------------------------------- Heng Sheng Corporation Pte Ltd declared the first and final dividend on Jan. 21, 2013. The company paid 9.945% to the received claims. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng Stone Forest Corporate Advisory Pte Ltd 8 Wilkie Road #03-08, Wilkie Edge Singapore 228095 LINGUA TECH: Court to Hear Wind-Up Petition on Feb. 1 ----------------------------------------------------- A petition to wind up the operations of Lingua Tech (S) Pte Ltd will be heard before the High Court of Singapore on Feb. 1, 2013, at 10:00 a.m. Cheng Yuk Ching Nickson filed the petition against the company on Jan. 15, 2013. The Petitioner's solicitors are: Lawrence Quahe & Woo LLC 180 Clemenceau Avenue #02-02 Haw Par Centre Singapore 239922 STANSFIELD GROUP: Court to Hear Wind-Up Petition on Jan. 25 ----------------------------------------------------------- A petition to wind up the operations of The Stansfield Group Pte Ltd now known as TSG Investments Pte Ltd will be heard before the High Court of Singapore on Jan. 25, 2013, at 10:00 a.m. ACIES Law Corporation filed the petition against the company on Jan. 8, 2013. The Petitioner's solicitors are: ACIES Law Corporation 79 Robinson Road #25-08 CPF Building Singapore 068897 ================ S R I L A N K A ================ VALLIBEL FINANCE: Fitch Affirms 'BB-' National LT Rating -------------------------------------------------------- Fitch Ratings Lanka has revised Vallibel Finance Plc's Outlook to Negative from Stable. At the same time, the agency has affirmed VFL's National Long-Term rating at 'BB-(lka)'. The revision of the Outlook reflects VFL's declining capitalisation, as measured by its equity/assets ratio, and the deterioration in its asset quality indicators as a result of rapid lending. The rating may be downgraded if VFL is unable to stem the decline in these metrics, resulting in a significant shift in its financial profile away from similarly rated peers. The Outlook may be revised to Stable if VFL is able to curtail the increase in its non-performing loans (NPLs) through improved portfolio monitoring, supported by new IT systems, and if core capitalisation strengthens alongside slower loan expansion. VFL's rating reflects its small but expanding asset base, its moderate profitability and a developing franchise. VFL's portfolio expanded strongly (79% in the financial year to March 2012), driven by lower import duties on vehicles and by branch expansion. Consequently, its equity/assets ratio fell to 9.6% at end-H113 (FYE12:10.3%; FYE11:12%). Loan growth slowed to 16% in H113 due to a reduction in credit demand and an increase in import duties on vehicles after 31 March 2012. VFL's asset quality weakened, particularly for loans that are three months overdue, with its gross NPL ratio rising to 14.1% at end-H113 (FYE12: 8.2%) due to the seasoning of its loan portfolio. Consequently, its net three-month NPLs/equity ratio nearly doubled to 112.3% during the same period. VFL's gross NPL ratio for loans that are six months overdue also weakened to 2.4% from 1.7% during this period. Its net six-month NPLs/equity ratio rose to 8.4% at end-H113 from 5.3% at FYE12. VFL's pre-tax return on assets (ROA) fell to 6% (annualised) in H113 (FY12: 7.5%) due to reduced net interest margins (NIM) and higher provisioning costs. NIM contracted in H113, as VFL's cost of funds increased due to rising market interest rates. Given intense competition for deposits, controlling funding costs will be a challenge for VFL. Deposits increased 24.5% in H113, outpacing lending growth. This caused VFL's net loans/deposits ratio to improve to 138.9% at end-H113 (FY12: 149.2%). Customer deposits, the primary source of funding for VFL, accounted for 60% of total assets at end-H113. The company had issued LKR375m unsecured subordinated redeemable debentures during FY12 and in H113 to strengthen its tier 2 capital base and to support lending. The issue was subscribed in full by an entity related to its largest shareholder. VFL is a LFC 72.87% held by Vallibel Investments (Pvt) Limited, an investment company owned by high-net-worth businessman K.D.D Perera. It operates through 11 outlets and accounted for 1.7% of LFC sector assets at end-December 2011. =============== X X X X X X X X =============== * Moody's Says Asian Firms Expect to Ease in Next 12 Months ----------------------------------------------------------- Moody's Investors Service says that the downward rating pressure on Asian corporates (ex-Japan) should ease in the next 12 months, mainly driven by a stabilizing Chinese economy, an expectation of continued accommodative monetary policies, and the manageable level of refinancing risks. "Moody's expects fewer negative rating actions for corporates in Asia in 2013 versus 2012, based on Moody's central macroeconomic scenario that the Asian region (ex-Japan) as a whole, will significantly outperform the weak global economy," says Clara Lau, a Moody's Group Credit Officer. "Moody's expectation that economic conditions will be largely unchanged in 2013 suggests a gradual shift towards more stable rating trends overall, and modest improvements in the credit trends for some industries," adds Lau. Moody's conclusions were contained in a just-released report titled, "Asian Corporates (ex-Japan): 2013 Outlook -- Downward Rating Pressure to Ease but Challenges Remain for Cyclical and Commodity Sectors". "However, negative rating actions will still outpace positive ones, although to a lesser extent, because the weak growth in the developed markets and the lower plateau of Chinese economic growth will continue to pressure Asia's export-oriented corporates and those in cyclical commodity sectors," says Lau. The report identifies the most vulnerable sectors to the lower pace of economic growth as: coal mining (negative); shipping (negative); and consumer electronics (negative) & semiconductors. The industries that will be affected to a lesser extent are: steel (stable); refining & marketing (stable); and Chinese property developers (stable). "Moody's also expects the refinancing risks for Asian corporates (ex-Japan) to be manageable, given the relatively low levels of offshore bonds maturing in the next 12 months, and the benign liquidity environment, which made various funding channels available for high-yield issuers," says Simon Wong, a Moody's Vice President and Senior Analyst, and one of the co-authors of the report. In terms of specific markets, the report says that the credit quality of Chinese corporate issuers should stabilize, supported by continued ample market liquidity, modest growth in property sales, and public investments in infrastructure projects. For Korea, Moody's expects downward rating pressure on private sector companies in general, mainly driven by a sluggish housing market and subdued private consumption, the won's appreciation, and the aggressive investment strategies of Korean firms, despite the limited financial cushions for their rating levels. Finally, the new report notes that the credit quality of firms in Indonesia and India should be stable in 2013, underpinned by economic growth, which will remain broadly similar to 2012, or, in the case of India, slightly better than last year. However, Indian corporates will continue to face the challenges of weak infrastructure support and regulatory constraints, while Indonesian firms in the commodity sector will be pressured by unfavorable demand and supply fundamentals. Geographically, the report's conclusions are based on Moody's analysis of some 240 rated issuers across 14 economies in Asia, namely Mainland China, Hong Kong, Korea, India, Singapore, Indonesia, Malaysia, Taiwan, Macau, the Philippines, Vietnam, Thailand, Mongolia and Pakistan. ********* 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., Washington, D.C., 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 2013. 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$775 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 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***