/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130128.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, January 28, 2013, Vol. 16, No. 19 Headlines A U S T R A L I A BASACAR PRODUCE: Has Days to Pay Creditors or Face Liquidation FESTIVAL COMPANY: Peats Ridge Festival Collapses MANN'S MITRE: Goes Into Liquidation; 50 Workers Lose Jobs SMART ABS 2013-1US: Moody's Assigns 'Ba2' Rating to Cl. E Notes WETTENHALLS GROUP: Appoints BDO as Voluntary Administrators C H I N A CHINA AOYUAN: Fitch Assigns Final 'B+' Rating to USD100MM Notes GREENTOWN CHINA: S&P Assigns 'B-' Rating to Proposed USD Notes LDK SOLAR: Has US$31-Mil. Securities Purchase Pact with Fulai MINGFA GROUP: S&P Assigns 'B' Corporate Credit Rating SINO-FOREST CORP: Plan Implementation Date Expected for Jan. 29 H O N G K O N G AGFA MATERIALS: Members' Final Meeting Set for Feb. 19 ASIA LIGHTING: Members' Final Meeting Set for Feb. 22 CEPTRON HK: Members' Final Meeting Set for Feb. 18 CVIC CONTAINER: Lau Cheuk Man Timothy Steps Down as Liquidator ECO-DISCOVERER LIMITED: Members' Final Meeting Set for Feb. 28 EDEN'S NATURAL: Members' and Creditors Meetings Set for Feb. 6 ENTERPRISE DAY: Members' Final Meeting Set for Feb. 19 FIRST SHANGHAI: Lau Cheuk Man Timothy Down as Liquidator FIT KEY: Lam and Boswell Step Down as Liquidators FOUNDRY TRADERS: Members' Final General Meeting Set for Feb. 22 GBL III: Members' Final General Meeting Set for Feb. 22 HABAS BINA: Members' Final General Meeting Set for Feb. 22 HAINAN WENCHANG: Members' Final General Meeting Set for Feb. 15 HARBOUR SHIPPING: Commences Wind-Up Proceedings HARVEST WORLD: Members' Final Meeting Set for Feb. 19 I N D I A ANNAPURNA STUDIOS: Delays in Loan Payment Cues ICRA Junk Ratings ASHVIRA FASHIONS: ICRA Assigns 'BB' Ratings to INR26cr Loans DML EXIM: ICRA Assigns 'BB' Rating to INR10cr Cash Credit IMPRINT VINIMAY: ICRA Rates INR22.5cr Proposed Term Loan at 'BB-' MANGLAM COTTON: ICRA Assigns 'B' Ratings to INR7.90cr Loans MODERN LAMINATORS: ICRA Assigns 'BB+' Ratings to INR12cr Loans NIRMAL SEEDS: ICRA Reaffirms 'BB' Ratings on INR69.45cr Loans TAJ FROZEN: ICRA Reaffirms 'BB+' Rating on INR4.93cr Loans TIGER STEEL: ICRA Upgrades Rating on INR16cr Loan to 'B+' J A P A N CORSAIR (JERSEY) 2: S&P Puts Series 58 CDO Rating on Watch Neg. M O N G O L I A MONGOLIAN MINING: Moody's Reviews 'B1' CFR for Downgrade N E W Z E A L A N D MATARIKI WINES: Delegat's Group Buys Winery Out of Receivership X X X X X X X X * Moody's Says Sluggish Economy to Hit South & SE Asia Export Cos - - - - - ================= A U S T R A L I A ================= BASACAR PRODUCE: Has Days to Pay Creditors or Face Liquidation -------------------------------------------------------------- Leah Kidd at NewsMail reports that Basacar Produce has just 10 days to come up with AUD15,000 or the company will face liquidation. NewsMail visited the Alloway property on Friday, Jan. 25, to speak with the Basacar family, but found only bare sheds, empty boxes, and a frustrated land owner. The landlord's son, Daniel Gorza, the report cites, fears the Basacars may fail to meet their obligations. "They've gone to Brisbane - they've left everyone up in the air again," NewsMail quotes Mr. Gorza as saying. NewsMail relates that Mr. Gorza said Basacar Produce had sold off its assets to "make the bank happy", but left creditors with nothing. According to the report, Vincent's Chartered Accountants administrator Peter Dinoris -- pdinoris@vincents.com.au -- said the company was liable to pay contributions under the Deed of Company Arrangement. "If the one (contribution) coming up at the moment doesn't get paid, they'll go into liquidation," the report quotes Mr. Dinoris as saying. NewsMail relates that Mr. Dinoris said a default would trigger the process. Under the arrangement, the report relays, Basacar Produce must pay AUD25,555 per month from March 5 until May 30 this year. During the voluntary administration period, Basacar Produce paid AUD56,000. The company has been subject to the deed of company arrangement since June 6 last year. The total to be paid under the deed is AUD400,000, the report notes. "If it's liquidated, it's unlikely creditors will get any distribution," the administrator told NewsMail. If liquidated, Basacar Produce will not be able to trade as the same company. As reported in the Troubled Company Reporter-Asia Pacific on April 24, 2012, Bundaberg News Mail said more than 40 workers have lost their jobs after tomato-farming operation Basacar Produce went into voluntary administration on April 18. The farm's directors -- husband and wife Ayhan and Zubeyde Basacar -- owe creditors more than AUD3.5 million from the debts incurred by the operation, which is run from properties in Goodwood Rd and Moore Park Rd. Administrator Peter Dinoris of Vincents Chartered Accountants said the couple cited effects of the global financial crisis and late payments by clients as reasons for administration. Basacar Produce Pty Ltd was one of Australia's tomato growers. FESTIVAL COMPANY: Peats Ridge Festival Collapses ------------------------------------------------ Andrew Taylor at smh.com.au reports that the organiser of the Peats Ridge music festival aimed to create an event that would show patrons how to live more sustainably. But he has failed to make the festival economically viable, leaving hundreds of performers and production crew unpaid, according to their union. "They have to be paid what they are owed, and the alliance is determined to work with everyone affected to chase unpaid monies," the report quotes Mal Tulloch, of Media, Entertainment & Arts Alliance, as saying. "It is simply not acceptable for them to be left in debt and struggling financially because a particular promoter fails to budget for employment costs as a priority," he added. According to the report, the festival's creative director, Matt Grant, said last week The Festival Company, the company that operated the festival would be wound up. He said the Peats Ridge Sustainable Arts and Music Festival, held in the Glenworth Valley north of Sydney from December 29 to January 1, had not covered costs, smh.com.au reports. "In the wake of what was an incredible 2012 Peats Ridge festival, it is with great regret that I have to announce that the income from ticket sales and other sources fell below that required to meet the costs of the event," smh.com.au quotes Mr. Tullock as saying. "As a result, the festival's accountants have advised that the entity that runs the festival be wound up. We are in discussion with various parties . . . and will release information as soon as it becomes available." In a statement on the festival website, smh.com.au notes, Mr. Grant claimed he had been open and transparent about the festival's financial woes. "The process for payment for artists is a legal one, and the liquidators have been speaking to all creditors to the festival who have contacted them, as we have instructed all festival suppliers to do from the moment we were advised liquidation was the only option facing the festival," Mr. Grant, as cited by smh.com.au, said. Mr. Grant is the director and secretary of the company that runs the festival, the report notes. MANN'S MITRE: Goes Into Liquidation; 50 Workers Lose Jobs --------------------------------------------------------- ABC News reports that Port Adelaide hardware store Mann's Mitre 10 has gone into liquidation with about 50 workers losing their jobs. Staff at the Mann's Mitre 10 on Robe Street were told not to turn up on Jan. 23 and the building was closed to customers, the report relays. The landlord, the Cohen Group, alleges the business is five months behind on its rent and owes more than AUD300,000, ABC News says. According to the report, administrator Tim Clifton said he met with directors Jan. 23 when the decision was made to liquidate the company. "I was advised the landlord had distrained for unpaid rent over the business and that left the directors in the position where the business was untenable," ABC News quotes Mr. Clifton as saying. "I presume at this stage trading was poor and the company just didn't have the money to pay the rent." ABC News relates that Mr. Clifton said workers have been informed of the decision. "Unfortunately, they had to terminate their employment this morning and we've rung them all," Mr. Clifton, as cited by ABC News, said. "We'll do our best to get them their entitlements under the government schemes, and we calculate what they're owed in the next few days and hopefully get that underway for them." The third-generation family-run business has been operating in the area for about 90 years. SMART ABS 2013-1US: Moody's Assigns 'Ba2' Rating to Cl. E Notes --------------------------------------------------------------- Moody's Investors Service has assigned definitive ratings to notes issued by Perpetual Trustee Company Limited in its capacity as trustee of the SMART ABS Series 2013-1US Trust. Issuer: SMART ABS Series 2013-1US Trust USD100.00 million Class A-1 Notes, Assigned P-1 (sf); USD60.00 million Class A-2a Notes, Assigned Aaa (sf); USD70.00 million Class A-2b Notes, Assigned Aaa (sf); USD50.00 million Class A-3a Notes, Assigned Aaa (sf); USD89.00 million Class A-3b Notes, Assigned Aaa (sf); USD106.00 million Class A-4a Notes, Assigned Aaa (sf); USD25.00 million Class A-4b Notes, Assigned Aaa (sf); AUD5.858 million Class B Notes, Assigned Aa2 (sf); AUD19.437 million Class C Notes, Assigned A2 (sf); AUD13.312 million Class D Notes, Assigned Baa2 (sf); AUD11.982 million Class E Notes, Assigned Ba2 (sf). The AUD7.988 million Seller Notes are not rated by Moody's. The Class A-1, Class A-2a, Class A-3a and Class A-4a Notes are fixed rate notes while the Class A-2b, Class A-3b and Class A-4b Notes are floating rate notes. The transaction is a securitisation of a portfolio of Australian novated leases, commercial hire purchase agreements, chattel mortgages and finance leases secured by motor vehicles, originated by Macquarie Leasing Pty Limited. This is Macquarie's first ABS transaction issued in 2013. Ratings Rationale SMART ABS Series 2013-1US Trust replicates structures seen in previous SMART transactions sponsored by Macquarie, and closely follows the structure seen in other SMART ABS Series offered in the US. Notable features of the transaction include the conservative composition of the receivables pool backing the transaction, the USD-denominated senior notes and the pro-rata principal repayment profile. The pool includes a high percentage of novated leases (61%), which exhibit a lower level of risk than other contract types. At the same time, the deal is exclusively backed by motor vehicles, predominantly cars. Past non-US SMART transactions and other Australian ABS transactions typically include 10-15% of other equipment types. Motor vehicles exhibit less pro-cyclical default patterns and, on average, higher recovery rates. As a result, Moody's views the SMART ABS Series 2013-1US Trust pool as having more positive collateral characteristics than peer portfolios. In order to fund the purchase price of the portfolio, the Trust will issue up to twelve classes of notes. The notes will be repaid on a sequential basis in the initial stages (until the subordination percentage increases from the initial 11.0% to 18.9%, and from 12.0% to 19.9% including the liquidity reserve) and during the tail end of the transaction. At all other times, the structure will follow a pro rata repayment profile. This principal paydown structure is comparable to other structures in the Australian ABS market in recent years. The deal will include seven senior, USD-denominated tranches. The Class A-1 Notes are fast-pay money-market notes, rated P-1(sf). The Class A Notes will be repaid sequentially within the Class A Note allocation. The ratings are based on the credit enhancement provided by the subordinated notes and the liquidity reserve, in total equal to 12% for the Class A Notes. An unusual feature of this and previous USD-denominated SMART transactions is that the maturity dates of the Class A Notes were set not with reference to the maturity of the longest dated receivable but rather with reference to the scheduled principal amortisation profile (with a certain buffer to allow for defaults and delinquencies). Moody's has accounted for the possibility of losses and delinquencies during the term of the Class A notes in its assessment of the likelihood of their repayment and believes scheduled principal amortisation to be sufficient to repay the Class A Notes by the maturity dates in full. Moody's base case assumptions are a default rate of 1.80% and a recovery rate of 40.00%. These imply an expected (net) loss of 1.08%. Both the default rate and the recovery rate have been stressed relative to observed historical levels of 1.51% and 53.49% respectively. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for timely payment of interest and ultimate payment of principal by the legal final maturity. VOLATILITY ASSUMPTION SCORES AND PARAMETER SENSITIVITIES The V Score for this transaction is Low/Medium, which is in line with the score assigned for the Australian ABS sector. Among other factors, Moody's notes the availability of a substantial amount of historical performance data in the Australian ABS market as well as on an issuer-by-issuer basis. Here, for instance, Moody's has been provided with detailed vintage and individual default data for the 1998-2012 period. In addition, Moody's observes that Australian auto ABS, and specifically past SMART transactions, have to date been performing stably. With regards to legal and regulatory uncertainty, Moody's assigns a medium due to the recent introduction of the Personal Property Securities Act (PPSA) which may lead to operational issues in the short term. Overall, the V score of Low/Medium allows Moody's to have a material degree of comfort with regard to assumptions made in rating the SMART ABS Series 2013-1US Trust. V Scores are a relative assessment of the quality of available credit information and of the degree of uncertainty around various assumptions used in determining the rating. High variability in key assumptions could expose a rating to more likelihood of rating changes. The V Score has been assigned accordingly to the report "V Scores and Parameter Sensitivities in the Asia/Pacific RMBS Sector", published in March 2009. Parameter Sensitivities are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process - here, the default rate and recovery rate - differed. The analysis assumes that the deal has not aged. Parameter Sensitivities only reflect the ratings impact of each scenario from a quantitative/model- indicated standpoint. In the case of SMART ABS Series 2013-1US Trust, the model indicated rating for the Class A Notes remain investment grade when the default rate rises to 3.6% (double of Moody's assumption of 1.80%) and recovery rate is reduced to 20% (half of Moody's assumption of 40%); the model indicated rating for the Class A-3 Notes drops 1 notch to Aa1 and the model indicated rating for the Class A-4 Notes drop 7 notches to Baa1). While the Class A Notes rank pari passu for losses, the Class A sub-classes pay down sequentially. This results in the Class A-4 Notes being outstanding when the structure is paying pro rata, hence exposing the notes to a relatively higher risk of loss as the dollar value of subordination decreases over time. The model indicated ratings for the Class B notes drop 8 notches to Ba1 in the above scenario. Rating Methodology The principal methodology used in this rating was "Moody's Approach to Rating Australian Asset-Backed Securities" published in July 2009. ABSROM v3.3 was used examining front loss timing, flat loss timing and back loaded loss timing. Therefore, Moody's analysis encompasses the assessment of stress scenarios. WETTENHALLS GROUP: Appoints BDO as Voluntary Administrators ----------------------------------------------------------- Cara Waters at SmartCompany reports that Australian transport and logistics company Wettenhalls Group has collapsed with BDO Chartered Accountants appointed as administrators on Jan. 25, 2013. SmartCompany relates that the collapse follows the withdrawal of funding for the company. According to the report, Luke Targett, Rachel Burdett-Baker -- rachel.burdett-baker@bdo.com.au -- and Dennis Turner -- dennis.turner@bdo.com.au -- of BDO have been appointed as voluntary administrators while, independently, Wettenhall's major financier has appointed Ferrier Hodgson as receivers and managers to Wettenhalls. The assets and the control of the business are now the responsibility of the receivers and managers, SmartCompany relays. SmartCompany relates that the administrators said they understand Ferrier Hodgson will carry out an assessment of the business and advise all relevant parties in due course. BDO will be communicating with all creditors and a first meeting of creditors will be held during the week commencing Feb. 4, 2013, according to SmartCompany. Wettenhalls Group is a privately owned transport and logistics company. It employs over 500 people at 14 sites nationally and has a turnover in excess of AUD130 million. ========= C H I N A ========= CHINA AOYUAN: Fitch Assigns Final 'B+' Rating to USD100MM Notes --------------------------------------------------------------- Fitch Ratings has assigned China Aoyuan Property Group Limited's (Aoyuan, 'B+'/Stable) USD100 million 13.875% notes due 2017 a final rating of 'B+'. The notes are issued as a tap to the USD125 million notes due 2017 issued in November 2012, with the same terms and conditions. The assignment of the final rating follows the receipt of documents conforming to information already received and the final rating is in line with the expected rating assigned on 21 January 2013. Aoyuan's ratings are supported by its sufficient liquidity and robust sales performance in 2012. The ratings remain constrained by Aoyuan's limited geographical diversification and small business scale. What Could Trigger A Rating Action? Negative: Future developments that may, individually or collectively, lead to negative rating action include: - A significant decrease in 2013 contracted sales from 2012 level of CNY5bn, or contracted sales/ total debt falling below 1x on a sustainable basis (H112: 1.07x of LTM contracted sales/ total debt) - EBITDA margin in 2013 declining to 15% (H112: 24%) - Net debt/ adjusted net inventory rising towards 40% on a sustainable basis (H112: 10.3%) - Deviation from the current fast churn-out and high cash flow turnover business model Positive: Future developments that may, individually or collectively, lead to positive rating action include: - Successful execution of expansion strategy for the next two to three years, where business scale increases substantially, such that contracted sales increase to over CNY15bn per annum with improving profitability where EBITDA margin increases to over 25% on a sustained basis. GREENTOWN CHINA: S&P Assigns 'B-' Rating to Proposed USD Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' long-term issue rating and 'cnB+' long-term Greater China regional scale rating to a proposed issue of U.S. dollar-denominated senior unsecured notes by Greentown China Holdings Ltd. (B/Positive/--; cnBB-/--). The company intends to use the majority of the proceeds to refinance short-term debt and for general corporate purposes. The rating is subject to S&P's review of the final issuance documentation. The issue rating is one notch lower than the long-term corporate credit rating on Greentown to reflect S&P's opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default. S&P anticipates that the company's ratio of priority debt to total assets will continue to be above its notching threshold of 15% for speculative-grade companies. The rating on Greentown reflects the company's limited record of consistent financial management, its improving but still high leverage, and weak profitability. Business and financial support that Greentown could get from its second-largest shareholder, Wharf (Holdings) Ltd. (not rated), Greentown's strong presence in Hangzhou and Zhejiang provinces, and its established brand name temper the above weaknesses. Greentown's business risk profile is "weak" and its financial risk profile is "highly leveraged." The positive outlook on the rating on Greentown reflects S&P's view that the company's financial position is likely to improve in the next 12 months, mainly due to better property sales execution, and further improvement in leverage and funding cost with support from Wharf. S&P expects Greentown to remain cautious toward land acquisitions, reduce its total debt level, and maintain sufficient cash while implementing a business strategy aimed at steady growth. LDK SOLAR: Has US$31-Mil. Securities Purchase Pact with Fulai ------------------------------------------------------------- LDK Solar Co., Ltd., has entered into a share purchase agreement dated Jan. 21, 2013, with Fulai Investments Limited, which has agreed to purchase 17,000,000 newly issued ordinary shares of LDK Solar at a purchase price of US$1.83 per share with an aggregate purchase price of US$31,110,000, subject to the terms and conditions of the share purchase agreement, including a lock-up for 180 days from the closing date of the contemplated transactions. Pursuant to the share purchase agreement, the parties will endeavor to fulfill the closing conditions to consummate the transactions prior to Feb. 28, 2013. Fulai Investments also has the right to designate two non-executive directors to the LDK Solar board upon consummation of the transactions. The net proceeds will be used for general corporate purposes in LDK Solar's operations. About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi- Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. KPMG in Hong Kong, China, said in a May 15, 2012, audit report, there is substantial doubt on the ability of LDK Solar Co., Ltd., to continue as a going concern. According to KPMG, LDK Solar has a net working capital deficit and is restricted to incur additional debt as it has not met a financial covenant ratio under a long-term debt agreement as of Dec. 31, 2011. These conditions raise substantial doubt about the Group's ability to continue as a going concern. LDK Solar's balance sheet at Sept. 30, 2012, showed US$5.76 billion in total assets, US$5.41 billion in total liabilities, US$299.02 million in redeemable non-controlling interests and US$45.91 million in total equity. MINGFA GROUP: S&P Assigns 'B' Corporate Credit Rating ----------------------------------------------------- Standard & Poor's Ratings Services said that it had assigned its 'B' long-term corporate credit rating to China-based property developer Mingfa Group (International) Co. Ltd. The outlook is stable. At the same time, S&P assigned its 'B-' rating to Mingfa's proposed issue of U.S.-dollar-denominated, fixed-rate senior unsecured notes. S&P also assigned its 'cnBB-' Greater China regional scale rating to the company and the 'cnB+' Greater China regional scale rating to the notes. The rating on the notes is subject to S&P's review of the final issuance documentation. Mingfa will use the notes' proceeds to refinance its borrowings and for general corporate purposes. The rating on Mingfa reflects S&P's view that the company has a limited scale of operations and faces execution risks in its aggressive growth plan. Mingfa's liquidity is "less than adequate," as defined in S&P's criteria, due to its large short- term refinancing needs. Mingfa's low land cost, high profit margin, diversified products, and track record in Xiamen and Nanjing temper these weaknesses. S&P We assess the company's business risk profile as "weak" and its financial risk profile as "highly leveraged." "We view Mingfa as having an aggressive expansion appetite and facing high execution risk in new markets," said Standard & Poor's credit analyst Frank Lu. "The company targets to expand quickly from a small base and triple its revenue over the next two years." "Projects outside Mingfa's home market of Xiamen and Nanjing will contribute the bulk of the property sales. However, the company's experience in these new markets is limited because the majority of these projects are under development," Mr. Lu said. Mingfa has mixed sales execution record, partly due to the Chinese government's measures to rein in property prices in the past 18 months. Sales were stagnant in the first half of 2012, although they rebounded in the second half of the year as the property market stabilized. "We believe Mingfa faces modest to high refinancing risk in 2013 due to the potential redemption of two convertible bonds totaling Chinese renminbi 2.4 billion. There is a good chance for redemption because the bonds have been out of the money for most of the past 12 months," Mr. Lu said. Mingfa's low land cost allows it to price its properties competitively while maintaining above-average profit margins. The stable outlook reflects S&P's expectation that Mingfa's cash flows from property sales will improve and the company will maintain its profitability in the next 12 months. This is based on S&P's expectation that the property market in China will remain stable. S&P also expects the company to obtain financing to meet its short-term debt maturities. "We may lower the rating if Mingfa fails to generate satisfactory cash flows in the next 12 months. This could happen if the company's contract sales in 2013 are weaker than Chinese renminbi 6 billion. We could also downgrade Mingfa if it has difficulty in securing new financing to meet potential redemption of convertible bonds, or if the company increases its capital expenditure and land acquisitions more than we expected, such that its EBITDA interest coverage is below 1.5x," S&P said. S&P could raise the rating if Mingfa executes projects in new markets well, increases its operating scale and diversity, and demonstrates a record of operating on a larger scale with disciplined liquidity management. An EBITDA interest coverage staying above 3.0x could indicate such improvement. SINO-FOREST CORP: Plan Implementation Date Expected for Jan. 29 --------------------------------------------------------------- Sino-Forest Corporation on Jan. 24 announced that the Plan Implementation Date, the date on which the Company's CCAA Plan of Compromise and Reorganization dated December 3, 2012 is to become effective, has been extended with the consent of the Initial Consenting Noteholders and the Monitor. While Sino-Forest has been working diligently with the Monitor and counsel to the Initial Consenting Noteholders to complete the implementation of the Plan, certain additional work is still necessary before the Plan can become effective. The Plan Implementation Date is now expected to occur on or about January 29, 2013 and in any event before the end of January 2013. About Sino-Forest Corp. Sino-Forest Corporation -- http://www.sinoforest.com/-- is a commercial forest plantation operator in China. Its principal businesses include the ownership and management of tree plantations, the sale of standing timber and wood logs, and the complementary manufacturing of downstream engineered-wood products. Sino-Forest also holds a majority interest in Greenheart Group Limited, a Hong-Kong listed investment holding company with assets in Suriname (South America) and New Zealand and involved in sustainable harvesting, processing and sales of its logs and lumber to China and other markets around the world. Sino-Forest's common shares have been listed on the Toronto Stock Exchange under the symbol TRE since 1995. Sino-Forest Corporation on March 30, 2012, obtained an initial order from the Ontario Superior Court of Justice for creditor protection pursuant to the provisions of the Companies' Creditors Arrangement Act. Under the terms of the Order, FTI Consulting Canada Inc. will serve as the Court-appointed Monitor under the CCAA process and will assist the Company in implementing its restructuring plan. Gowling Lafleur Henderson LLP is acting as legal counsel to the Monitor. During the CCAA process, Sino-Forest expects its normal day-to- day operations to continue without interruption. The Company has not planned any layoffs and all trade payables are expected to remain unaffected by the CCAA proceedings. ================ H O N G K O N G ================ AGFA MATERIALS: Members' Final Meeting Set for Feb. 19 ------------------------------------------------------ Members of Agfa Materials Hong Kong Limited will hold their final general meeting on Feb. 19, 2013, at 11:00 a.m., at Room 3704, Hong Kong Plaza, at 188 Connaught Road West, in Hong Kong. At the meeting, Fong Ming Wai Howard, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ASIA LIGHTING: Members' Final Meeting Set for Feb. 22 ----------------------------------------------------- Members of Asia Lighting Solutions Limited will hold their final general meeting on Feb. 22, 2013, at 11:00 a.m., at Room 502 Hang Bong Commercial Centre, at 28 Shanghai Street, in Kowloon. At the meeting, Ying Tze Yeuk, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CEPTRON HK: Members' Final Meeting Set for Feb. 18 -------------------------------------------------- Members of Ceptron HK Limited will hold their final meeting on Feb. 18, 2013, at 10:30 a.m., at 602 The China Bank Building, 61-65 Des Voeux Road, Central, in Hong Kong. At the meeting, Wong Tech Meng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CVIC CONTAINER: Lau Cheuk Man Timothy Steps Down as Liquidator -------------------------------------------------------------- Lau Cheuk Man Timothy stepped down as liquidator of CVIC Container Transportation (Dalian) Limited on Jan. 14, 2013. ECO-DISCOVERER LIMITED: Members' Final Meeting Set for Feb. 28 -------------------------------------------------------------- Members of Eco-Discoverer Limited will hold their final general meeting on Feb. 28, 2013, at 10:00 a.m., at Unit 707, 7/F, Wing Fat Industrial Building, 12 Wang Tai Road, Kowloon Bay, Kowloon, in Hong Kong. At the meeting, Fung Ka Kin, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. EDEN'S NATURAL: Members' and Creditors Meetings Set for Feb. 6 -------------------------------------------------------------- Members and creditors of Eden's Natural Synergy (HK) Limited will hold their annual meetings on Feb. 6, 2013, at 3:00 p.m., and 3:30 p.m., respectively at Room 08, 5/F, Chinachem Golden Plaza, at 77 Mody Road, Tsimshatsui East, Kowloon, in Hong Kong. At the meeting, Chung Cheuk Ming, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ENTERPRISE DAY: Members' Final Meeting Set for Feb. 19 ------------------------------------------------------ Members of Enterprise Day Limited will hold their final meeting on Feb. 19, 2013, at 4:00 p.m., at 6/F, Kwan Chart Tower, 6 Tonnochy Road, Wanchai, in Hong Kong. At the meeting, Puen Wing Fai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. FIRST SHANGHAI: Lau Cheuk Man Timothy Down as Liquidator -------------------------------------------------------- Lau Cheuk Man Timothy stepped down as liquidator of First Shanghai CVIC (HK) Food Industrial Limited on Jan. 14, 2013. FIT KEY: Lam and Boswell Step Down as Liquidators ------------------------------------------------- Rainier Hok Chung Lam and Anthony David Kenneth Boswell stepped down as liquidators of Fit Key Limited on Jan. 8, 2013. FOUNDRY TRADERS: Members' Final General Meeting Set for Feb. 22 ---------------------------------------------------------------- Members of Foundry Traders International Limited will hold their final general meeting on Feb. 22, 2013, at 11:15 a.m., at Level 28, Three Pacific Place, at 1 Queen's Road East, in Hong Kong. At the meeting, Natalia K M Seng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GBL III: Members' Final General Meeting Set for Feb. 22 ------------------------------------------------------- Members of GBL III Limited will hold their final general meeting on Feb. 22, 2013, at 2:35 p.m., at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong. At the meeting, Natalia K M Seng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HABAS BINA: Members' Final General Meeting Set for Feb. 22 ---------------------------------------------------------- Members of Habas Bina (Hong Kong) Limited will hold their final general meeting on Feb. 22, 2013, at 10:45 a.m., at Level 28, Three Pacific Place, at 1 Queen's Road East, in Hong Kong. At the meeting, Lam Yan Wing, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HAINAN WENCHANG: Members' Final General Meeting Set for Feb. 15 --------------------------------------------------------------- Members of Hainan Wenchang Shi Changsa Overseas Chinese School Education Fund Limited will hold their final general meeting on Feb. 15, 2013, at 10:30 a.m., at Room 1502, 15/F, 101 King's Road, North Point, in Hong Kong. At the meeting, Ma Kam Man Jasper, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HARBOUR SHIPPING: Commences Wind-Up Proceedings ----------------------------------------------- Members of Harbour Shipping Services Limited, on Jan. 11, 2013, passed a resolution to voluntarily wind-up the company's operations. The company's liquidator is: Yang Sih Yu Samuel Room 2, 1st Floor Block A, Sea View Estate 2-8 Watson Road North Point, Hong Kong HARVEST WORLD: Members' Final Meeting Set for Feb. 19 ----------------------------------------------------- Members of Harvest World (HK) Limited will hold their final meeting on Feb. 19, 2013, at 5:00 p.m., at 6/F, Kwan Chart Tower, 6 Tonnochy Road, Wanchai, in Hong Kong. At the meeting, Puen Wing Fai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ANNAPURNA STUDIOS: Delays in Loan Payment Cues ICRA Junk Ratings ---------------------------------------------------------------- ICRA has revised the long-term rating of '[ICRA]BB' outstanding on the INR247.00 crore bank facilities of Annapurna Studios Private Limited to '[ICRA]D'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Fund 247.00 Downgraded to [ICRA]D from Based Limits ICRA]BB The rating revision reflects the recent and ongoing delays in debt servicing by ASPL following the significant shortfall in its revenues from the earlier estimated levels. Due to insufficient demand for pre-fabricated sets in the current market conditions, ASPL has decided not to set up the back lot facilities which were to contribute to more than 50% of the company's projected revenues. Since cash accruals would be insufficient to service its interest and principal repayment obligations in these revised circumstances, the company has approached its consortium of lenders to extend the moratorium from December 2012 earlier to September 2013 with interest accrued from November 2012 till September 2013 to be repaid in lump sum on September 30, 2013. However, the lenders are yet to approve the debt restructuring proposal and as on date, ASPL has not yet paid the November and December interest payments and the principal repayments that have commenced in December, 2012. ICRA will factor in the revised debt servicing terms approved by the lenders once the formal approval is in place. Even though the company plans to monetize a part of its land to raise the required funds, based on the current demand conditions, repaying accrued interest and principal repayments in a single installment in September 2013 is expected to be challenging. Incorporated in January 2006, ASPL is a leading film/television studio and production house located at Jubilee Hills in Hyderabad where it operates a film studio by the name "Annapurna Studios." "Annapurna Studios" was established in 1976 by the legendary Telugu actor Akkineni Nageswara Rao (ANR) primarily to encourage the migration of the Telugu film industry from Chennai to Hyderabad. Currently, it has four permanent shooting floors (non- A/C), nine ready-to-shoot sets like a police station and a hospital and post-production facilities like editing rooms and a dubbing theatre besides the support infrastructure for production and post-production activities like a warehouse, preview theatre and make up rooms. In FY2012, ASPL has completed construction of five large studio floors with a combined area of about 64000 square feet as part of its Film Entertainment & Media Centre (FEMC) project in its 22 acre prime property in Jubilee Hills. The FEMC, consisting of integrated production and post production facilities is the key revenue driver for the company apart from movie and television serial production. Recent Results (Provisional) ASPL has reported an operating income of INR5.17 crore with an operating profit of INR1.88 crore in the first half of FY2013 (6m,FY2013) as against an operating income of INR32.43 crore with an operating profit of INR0.70 crore in FY2012. ASHVIRA FASHIONS: ICRA Assigns 'BB' Ratings to INR26cr Loans ------------------------------------------------------------ ICRA has assigned an '[ICRA]BB-' rating to the INR15.00 crore term loans and INR5.00 crore cash credit facilities of Ashvira Fashions Limited. ICRA has also assigned an '[ICRA]A4' rating to the INR14.50 crore short term non-fund based bank facilities of AFL. Further ICRA has assigned [ICRA]BB-/[ICRA]A4 rating to the INR6.00 crore unallocated limits of AFL. The long-term rating has been assigned a 'Stable' outlook. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund based long 20.00 [ICRA]BB-(Stable) Assigned term facilities Non fund based short 14.50 [ICRA]A4 Assigned term facilities Unallocated Limits 6.00 [ICRA]BB-(Stable)/[ICRA]A4 Assigned The ratings favourably factor in the established presence of the promoters in the textile industry and the company's diversified customer base. The company has posted a healthy growth in revenues with a compounded annual growth rate (CAGR) of -19% over the last five years. However, the scale of operations of AFL remains small, thereby restricting the economies of scale and further limiting the profit margins. Nonetheless, the financial profile of the company is characterised by a comfortable capital structure with a gearing of 0.7 times for FY2012. The company is proposing to undertake expansion of its capacities and the same is planned to be funded primarily through debt, which is likely to impact the company's capital structure in the medium term. The intense competition in the industry which limits the company's bargaining power coupled with exposure to raw material price fluctuations, constrains the profit margins of AFL. About Ashvira Fashions Ashvira Fashions Limited was incorporated in year 1992 as Ashok Weaving and Textile Mills Limited. The name was later changed to Ashvira Fashions Limited in May 2012. AFL is mainly engaged in the business of manufacturing and trading of fabric for suiting and shirting. The company is promoted by Mr.Ramesh Gupta who has an experience of over two decades in textile business. The company has its registered office at Kalbadevi, Mumbai. The company has two manufacturing facilities both located at Bhiwandi. Recent Results AFL has recorded a profit after tax (PAT) of INR0.56 crore on an operating income (OI) of INR43.99 crore for the year ending March 31, 2012 as against a PAT of INR0.48 crore on an operating income of INR37.32 crore for the year ended March 31, 2011. DML EXIM: ICRA Assigns 'BB' Rating to INR10cr Cash Credit --------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]BB' to the INR10.00 crore (sub limit of short term limit) enhanced amount of cash credit fund based bank facility of DML Exim Private Limited. ICRA has also assigned a short term rating of '[ICRA]A4' to the INR30.00 crore enhanced amount of short term fund based facility (including sub limit of Packing Credit of INR80.00 crore) of DEPL. The outlook assigned on long term rating is stable. ICRA has an outstanding rating of '[ICRA]BB' on INR10.00 crore fund based facility (sub-limit of short term limit) and '[ICRA]A4' on INR100.00 crore short term fund based facility (including packing credit of INR50.00 crore). Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 10.00 [ICRA]BB (stable) assigned Foreign Documentary 30.00 [ICRA]A4 assigned Bill Purchased/Foreign Usance Documentary Bill Purchased Packing Credit 80.00 [ICRA]A4 assigned The ratings continue to be constrained by the low value additive nature of the operations and intense competition resulting from the fragmented industry structure which exerts pressure on margins. The ratings also incorporate the modest financial risk profile of the company characterized by weak profitability and highly leveraged capital structure given the working capital intensive nature of operations. The ratings also take note of the regulatory risk faced by the company in terms of export restrictions on cotton which can restrict opportunities for the company going forward. However, the ratings positively consider the long experience of the promoters in the trading of cotton and agricultural products, favorable location of the company which gives it easy access to quality raw cotton and the operational support it derives from its group companies. While the ratings favorably consider the healthy growth in the operating income over the years, the company's ability to secure additional working capital finances remains important. DEPL was renamed in the year 2008 from D M Lakhani Overseas Pvt Ltd which was established in 1988. The company is located at Rajkot, Gujarat. The present directors Mr. Harish Lakhani, Mr. Darshan Lakhani and Mr. Chirag Lakhani are actively involved in daily operations. The company is a part of DML group which has been in the agri-trading business for more than two decades. The other group concerns include DML World trade Private Limited and DRB commodities Private Limited. Recent Results During FY 2012 the company reported a net profit of INR17.04 crore on an operating income of INR1006.28 crore, and net profit of INR11.39 crore on an operating income of INR660.96 crore during FY 2011. IMPRINT VINIMAY: ICRA Rates INR22.5cr Proposed Term Loan at 'BB-' ----------------------------------------------------------------- ICRA has assigned an '[ICRA]BB-' rating to the INR22.50 crore proposed term loan facility of Imprint Vinimay Private Limited. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 22.50 [ICRA]BB- (stable) (Proposed Term Loan) assigned The rating takes into account the experience and market reputation of the promoters in the real estate business, and the favorable location of the upcoming residential project at the heart of Siliguri, West Bengal, with good road connectivity to airport, railway station and other parts of the city, which strengthens project attractiveness. ICRA notes that a significant portion of the property has already been booked by the customers, which reduces market risk of the project to an extent. The rating, however, factors in the significant funding risk as debt required for the project is yet to be tied-up. Moreover, limited time gap between expected cash inflows from the sale proceeds of the property and proposed debt repayment obligations may lead to cash flow mismatches if there is any delay in project completion. Going forward, the company's ability to complete the project within budgeted cost and time would be the key rating sensitivities. Incorporated in 2005 by the promoters of SBM Group, IVPL is currently developing a residential complex at Siliguri, West Bengal. The proposed residential tower 'SBM Heights' would house eighty eight residential flats and one duplex flat in a ground + 11 storey building along with other amenities like, car parking space, swimming pool, temple, club house, playing park, landscaped garden, security systems etc. The project is scheduled to be completed by October 2015. MANGLAM COTTON: ICRA Assigns 'B' Ratings to INR7.90cr Loans ----------------------------------------------------------- ICRA has assigned the rating of '[ICRA]B' to INR6.30 crore cash credit and INR1.60 crore term loan of Manglam Cotton Industries. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 6.30 [ICRA]B assigned Term Loan 1.60 [ICRA]B assigned The assigned rating is constrained by MCI's small scale of operations; and its high financial risk profile characterized by low return indicators, stretched capital structure and weak debt coverage indicators; the rating is further constrained by the highly competitive and fragmented cotton ginning industry with low entry barriers; exposure of the firm's profitability to adverse movements in cotton prices which coupled with low value additive and seasonal nature of cotton ginning industry, results into weak profitability metrics. ICRA also notes that MCI is a partnership firm and any significant withdrawals from the capital account would affect its net worth and thereby its capital structure. The rating, however, favorably takes into account the proximity of the firm's plant to the cotton producing belt of India which provides regular and easy access to raw materials and the stable demand outlook for cotton and cottonseeds in the domestic as well as international market. Incorporated in 2008, Manglam Cotton Industries is partnership firm consisting of ten partners. The operations of the firm are managed by Mr. Mayur Patel and Mr. Vijay Ganatara. At present, MCI has 24 ginning machines and 1 pressing machine having a capacity of producing 225 bales of cotton per day at its plant located at Mehsana, Gujarat. Recent Results For the year ended 31st March, 2012, the firm reported an operating income of INR29.88 crore and profit after tax of INR0.18 crore as against an operating income of INR27.02 crore and profit after tax of INR0.23 crore for FY 2011. MODERN LAMINATORS: ICRA Assigns 'BB+' Ratings to INR12cr Loans -------------------------------------------------------------- The rating of '[ICRA]BB+' has been assigned to the INR12 crore long-term fund-based facilities and term loans (including unallocated limits, which are interchangeable with short-term limits) of Modern Laminators Limited; the outlook on the rating is Stable. The rating of '[ICRA]A4+' has been assigned to the INR6 crore short-term non-fund based facilities of MLL. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 5.00 [ICRA]BB+ (Stable) assigned Fund-based, Long- 7.00 [ICRA]BB+ (Stable) assigned term facilities Non-fund Based, 6.00 [ICRA]A4+ assigned Short-term facilities In arriving at the ratings, ICRA has taken a consolidated view of MLL with the other Modern Group company, Modern Packaging Private Limited (MPPL), as both companies have a similar business profile with common promoters and common customers. Further, MLL has provided a corporate guarantee for the bank limits of MPPL. The ratings factor in the high competition in the poly-woven sacks industry with low entry barriers and limited product differentiation; customer and sector concentration risks; weak bargaining power with customers and suppliers; and vulnerability of profitability to fluctuations in polymer price, although partly mitigated through in-built escalation clauses. Besides, the financial risk profile is moderate, characterised by low margins and return indicators and moderate gearing levels. The ratings, however, favorably factor in the established track record of the promoters in the poly-woven sacks industry; favorable demand prospects from end-user industries (fertilisers and cement); healthy capacity utilization levels; the established customer base of the company; and operational synergies with MPPL in terms of procurement of raw materials, with both companies being in the same line of business; moderate working capital intensity and comfortable liquidity position of the company as reflected by the low average working capital utilization. The ability of the company to sustain its revenues and improve its profitability, thereby leading to an improvement in the debt coverage metrics will be positive for the ratings going forward. Conversely, any significant debt-funded capex leading to deterioration in capital structure; decline in profitability or deterioration in the liquidity position may put downward pressure on the ratings. Modern Laminators Limited, the flagship of the Modern Group, was established in Gorakhpur (Uttar Pradesh) in 1975 by Mr. Kishanlal Bathwal as an ancillary unit to the Gorakhpur plant of the Food Corporation of India (FCI). It was established as a partnership firm and reconstituted as a public limited company in 1992. The firm initially manufactured jute bags used in packaging. In 1999, MLL began manufacturing high density polyethylene (HDPE) and polypropylene (PP) woven sacks and began establishing a customer base in the fertiliser and cement industries. HDPE/PP bags are used in the packing and transport of products in the fertilisers, cement, textiles, soapstone, food grains, chemicals and salt industries. The raw materials are primarily polymers such as HDPE, PP and low density polyethylene (LDPE), which are sourced domestically. The company has manufacturing facilities for the manufacture of woven sacks/fabrics at Gorakhpur (Uttar Pradesh) as well as Ahmedabad (Gujarat). It is also engaged in the manufacturing of rigid PVC pipes and has promoted a three star hotel in Gorakhpur (Uttar Pradesh). MLL has an installed capacity of 7,900 MTPA at its Gorakhpur unit (increased in FY2012 by 1,000 MTPA from 6,900 MTPA earlier), 4,800 MTPA at the Ahmedabad unit (a total capacity of 11,700 MTPA for woven sacks/bags) and 175 MTPA for PVC pipes in Gorakhpur. NIRMAL SEEDS: ICRA Reaffirms 'BB' Ratings on INR69.45cr Loans ------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]BB' assigned to the INR14.45 crore long-term loans and INR55.00 crore, long- term, fund based facilities (enhanced from INR50.00 crore) of Nirmal Seeds Private Limited. The outlook on the long-term rating is stable. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long-term loans 14.45 [ICRA]BB (stable) reaffirmed Long-term, fund 55.00 [ICRA]BB (stable) reaffirmed based facilities The rating reaffirmation takes into account NSPL's domestic presence with diverse product portfolio enabling the company to tap the high growth hybrid seeds and bio-products demand. The company has a well developed in-house R&D unit which operates in collaboration with several domestic and international organizations with strong product pipeline. ICRA also notes that the newly developed hybrid variants have showcased strong performance in the early phases of commercialisation providing visibility for future revenue growth. Commencement of operation from Guwahati plant enjoying benefits under NEIIPP is another key positive for the company. However, the ratings remain constrained on account of overall lagging performance of hybrid seed division over FY 2012 following decline in output for Rabi seeds due to erratic rainfall pattern, the rise in investment in inventories leading to stretched liquidity profile and rise in leverage. The lagging performance has also impacted coverage ratios; despite improvement in operating margins, impacting profitability. The company continues to have high dependence on mature and less profitable hybrid seed variants while Western Region contribution to sales remains high. The company's plans to expand to new geographies through entry into Ethiopia continue to face bureaucratic hurdles. Established in 1988, Nirmal Seeds Private Limited is engaged in research, production and marketing of seeds of about 40 varieties of crops in fibre, cereals, oil seeds, pulses and vegetables. NSPL is also engaged in R&D, production and marketing of bio- products such as bio-fertilizers, bio pesticides, bio-organic manures and bio plant growth vitalizers. The company is promoted by Mr. Raghunath Patil, Mr. Dilip Deshmukh, Dr. Jaysingh Rajput and Dr. Suresh Patil. Recent Results For the twelve months ending March 31, 2012, NSPL reported profit after tax (PAT) of INR4.6 crore on an operating income of INR163.5crore as compared to a PAT of INR6.3 crore on an operating income of INR156.6 crore for the twelve months ending March 31, 2011. TAJ FROZEN: ICRA Reaffirms 'BB+' Rating on INR4.93cr Loans ---------------------------------------------------------- ICRA has reaffirmed the long term rating at '[ICRA]BB+' assigned to INR3.68 crore (reduced from INR8.33 crore) term loan fund based limits and to INR1.25 crore (enhanced from INR0.50 crore) cash credit fund based limits and the short term rating at '[ICRA]A4+' assigned to INR10.50 crore fund based limits (enhanced from INR5.75 crore) of Taj Frozen Foods India Ltd. ICRA has also assigned a short term rating of [ICRA]A4+ to INR0.35 crore non-fund based limits of TFFIL. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan: Fund 3.68 [ICRA]BB+ (Stable) reaffirmed Based Limits Cash Credit: Fund 1.25 [ICRA]BB+ (Stable) reaffirmed Based Limits Short term Fund 10.50 [ICRA]A4+ reaffirmed Based Limits Non-Fund Based Limits 0.35 [ICRA]A4+ assigned The reaffirmation of ratings continue to favorably factor in the established track record of the promoters in food processing business supported by in-house manufacturing operations, diversified product profile and established business relationship with suppliers and distributors. The ratings also take into account the healthy penetration into the domestic markets along with established international presence and improved market recognition of in-house brands backed by tie-ups with domestic and overseas supermarkets as well as associations with reputed players in the processed food industry. The ratings, however, are constrained by high working capital intensity in the business arising from high inventory holding to mitigate seasonality risk and moderately geared capital structure due to debt funded capex and high reliance on working capital borrowings. The ratings also continue to factor in the vulnerability of operations to the agro-climactic risks which affect the availability of agro based raw materials and high competitive intensity of the processed foods industry. About Taj Frozen Foods TFFIL was incorporated in the year 2004 as a public limited company. TFFIL is mainly engaged in the business of export of Individual Quick Freezer (IQF) Frozen Fruits, Vegetables and ready to eat foods. The company has a registered office at Bhandup, Mumbai and two manufacturing units at Yewalewadi and Jejuri in Pune. Recent results TFFIL recorded a net profit of INR1.24 crore on an operating income of INR32.21 crore for the year ending March 31, 2012 and Profit Before Tax of INR1.19 crore on an operating income of INR18.59 crore for the half year ending September 30, 2012 (provisional). TIGER STEEL: ICRA Upgrades Rating on INR16cr Loan to 'B+' --------------------------------------------------------- ICRA has revised upwards the long-term rating assigned to the INR16.00 crore (reduced from INR40.17 crore) long term fund-based bank limits of Tiger Steel Engineering (India) Pvt Ltd to '[ICRA]B+' from '[ICRA]B'. ICRA has reaffirmed the short-term rating of '[ICRA]A4' assigned to the INR50.08 crore (reduced from INR56.00 crore) short-term non-fund based bank facilities of TSEPL. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long-term Fund- 16.00 Revised upwards to [ICRA]B+ based Limits from [ICRA]B Short-term Non- 50.08 [ICRA]A4 reaffirmed fund based Limits The upwards revision in ratings take into account the improved liquidity profile of the company as reflected by the improvement in the working capital intensity due to reduction in debtor levels; and improvement in the operating profit margins in the first half of 2012-13. The ratings are however, constrained by TSEPL's exposure to raw material price risks given the high inventory holding period; and increased competition in the PEB industry which is likely to put downward pressure on profitability in the future. ICRA also notes the depressed but improving interest cover of the company on account of high interest payment obligations; and the company's exposure to cyclicality associated with the capital goods industry. Nevertheless, the ratings favorably factor in the significant experience of the promoters in the PEB business; and the improvement in gearing levels as on March 31, 2012 on account of infusion of fresh equity by the parent company. The ratings also take into account the improvement in profit and cash accruals from the business in 2011-12 and the first half of 2012-13 as compared to the previous years; and a healthy order book of over INR83 crore as on Jan. 1, 2013, which provides revenue visibility over the short term at least. Incorporated in 1996, TSEPL is in the business of design, fabrication and erection of Pre-Engineered Buildings. The company is a wholly-owned subsidiary of the Tiger Group, based in the United Arab Emirates, which has presence in steel fabrication and trading, civil construction and manufacture of cladding and insulation. TSEPL has manufacturing facilities in Murbad (Maharashtra) and Hardwar (Uttarakhand), with a combined capacity of 30,000 MTPA for hot-rolled products and 40,000 MTPA for cold- rolled products. Recent Results As per the audited results for 2011-12, TSEPL reported a profit after tax of INR2.48 crore on an operating income of INR161.99 crore as compared to a PAT of INR1.73 crore on an operating income of INR151.22 crore in 2010-11. In the period between April 2012 to December 2012, TSEPL reported net sales of INR125.20 crore. ========= J A P A N ========= CORSAIR (JERSEY) 2: S&P Puts Series 58 CDO Rating on Watch Neg. --------------------------------------------------------------- Standard & Poor's Ratings Services said that it has placed its swap risk rating on the reference portfolio of Corsair (Jersey) No. 2 Ltd.'s series 46 credit default swap on CreditWatch with positive implications. At the same time, S&P placed its long- term rating on Corsair (Jersey) No. 2's series 58 synthetic collateralized debt obligation (CDO) on CreditWatch with negative implications. As part of S&P's surveillance of rated synthetic CDO transactions, S&P generally review them every month to determine whether upgrades or downgrades are warranted. Typically, an initial credit committee reviews synthetic CDO tranches at the beginning of each month for potential CreditWatch placements and removals. Then, later in the month, a second credit committee reviews the tranches that are on CreditWatch for possible upgrades or downgrades. The CreditWatch placements, which S&P base on the results of the initial credit committee's reviews in January, reflect the tranches' synthetic rated overcollateralization (SROC) levels. S&P placed its swap risk rating on the series 46 reference portfolio on CreditWatch positive because this tranche had an SROC level that exceeded 100% as of Dec. 31, 2012, and meets S&P's minimum required cushion at a higher rating than the current rating. Meanwhile, S&P placed its long-term rating on the series 58 loan on CreditWatch negative because this tranche had an SROC level that was less than 100% at the current rating as of the same date. The second credit committee will review the tranches by the end of this month. 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 Reports included in this credit rating report are available at http://standardandpoorsdisclosure-17g7.com. RATING PLACED ON CREDITWATCH POSITIVE Corsair (Jersey) No. 2 Ltd. Series 46 credit default swap To From Amount BB-srp (sf)/Watch Pos BB-srp (sf) JPY3.0 bil. RATING PLACED ON CREDITWATCH NEGATIVE Corsair (Jersey) No. 2 Ltd. Fixed rate credit-linked loan series 58 To From Amount B+ (sf)/Watch Neg B+ (sf) JPY3.0 bil. =============== M O N G O L I A =============== MONGOLIAN MINING: Moody's Reviews 'B1' CFR for Downgrade -------------------------------------------------------- Moody's Investors Service has placed Mongolian Mining Corporation's B1 corporate family and senior unsecured ratings under review for downgrade after MMC's profit warning announcement on Jan. 21, 2012, of an expected consolidated loss for its FY 2012 financial results, owing to the decrease in the selling price of coking coal, and increases in its finance costs, as well as inventory loss provisions. Ratings Rationale "MMC was expected to announce a breakeven net profit for 2012. Its warning of a loss, with weaker cash flows anticipated could temper its liquidity and hinder its ability to ride out the relatively lower prices for coking coal," says Simon Wong, a Moody's Vice President and Senior Analyst. "The announcement also comes on top of MMC's weaker-than-expected results for the first half of the year, from poor sales volumes and lower operating margins because of weakened Chinese demand for coking coal," adds Wong. Moody's changed the outlook on MMC's B1 ratings to negative from stable on October 17, 2012 after taking into consideration the expected weakening of the company's operating margins and cash flows for FY 2012 and 2013, its rising leverage and need for waivers under its financial covenants on its bank facilities. Moody's now expects MMC's debt/EBITDA to significantly deteriorate to over 8.0x in FY 2012 from 2.9x in 2011. The company's EBITDA/interest ratio should fall to below 1.0x from 6.0x a year ago. "Under Moody's assumption of a coking coal price of around $155- $165 per ton for 2013, MMC is expected to face a prolonged period of weakened cash flow generation that could lead to a deterioration in liquidity," says Mr. Wong. Moody's coking price assumption is on the basis of a moderate recovery in Chinese demand for steel of 2%-4% year-on-year -- a market which accounts for over 70% of production and consumption in Asia -- but prices are unlikely to return to levels above $200 per ton as seen in FY 2011 because of the ample supply of both domestic coking coal in China and in the seaborne market. Moody's notes that while MMC's near-term liquidity position is adequate, with cash on hand of $451.1 million as of 30 June 2012, its cash position is expected to be eroded by scheduled debt maturities, its interest servicing and ongoing capex plans, and Baruun Naran mine's $105 million adjusted promissory note due in November 2013. Nonetheless, pressure on the company's liquidity in the medium- term will ease, given its reduced capex requirements for railway construction following Mongolia's announcement of a unified railway project. Prior to the announcement, MMC expected to commence constructing and operating the $750 million, 236- kilometer railway line in 2014, from its mine site to the Chinese border, after it obtained the license to do so under its railway concession. MMC also faces heightened regulatory risks from proposed changes in Mongolia's mining laws that will give the government the right to free stakes in mineral projects and the right to dictate output targets which may not be aligned to market demand. During the course of the rating review -- which is expected to be completed by the end of February -- Moody's will assess MMC's 2013 production targets, customer contracts, capex plans, possible breach of covenants and ongoing need for covenant waivers, and liquidity position. The principal methodology used in this rating was the Global Mining Industry Methodology published in May 2009. MMC is the largest privately owned coal mining company in Mongolia. Established in 2005, it was listed on the Hong Kong Stock Exchange in October 2010. It has two producing mines located in the Gobi Desert. The Ukhaa Khudag mine, which produced 7.1 MT of coking coal in 2011 and the Baruun Naran mine, which was acquired in 2011 and commenced production in February 2012. ==================== N E W Z E A L A N D ==================== MATARIKI WINES: Delegat's Group Buys Winery Out of Receivership --------------------------------------------------------------- The Dominion Post reports that listed winemaker Delegat's Group, which makes the Oyster Bay brand, has snapped up a struggling Hawkes Bay vineyard for NZ$8.5 million. According to the report, Delegat said it had bought out a 61- hectare vineyard and winery owned by Matariki Wines and Stony Bay Wines, both in receivership. The Post, citing the first receivers' reports, says the beleaguered companies owe creditors about NZ$11.2 million. Unsecured creditors, owed about NZ$136,000, are unlikely to be paid, the Post relays. The report notes that the purchase brings Delegat's Hawke's Bay vineyard holdings to a total of 500 hectares. The new vineyard is predominantly planted with Merlot, Cabernet Sauvignon and Syrah grapes, and the winery has a processing capacity of 600 tonnes, the Post discloses. Matariki was established in 1981, when its directors John -- a former junior All Black --and Rosemary O'Connor returned to New Zealand after studying wine in Europe. The company is owned by O'Connor Family Holdings, according to the Companies Office. Hawke's Bay winery Matariki Wines was placed into receivership in September 2012 with John Fisk, of PricewaterhouseCoopers, appointed as receiver. =============== X X X X X X X X =============== * Moody's Says Sluggish Economy to Hit South & SE Asia Export Cos ----------------------------------------------------------------- Moody's Investors Service says that sovereign credit fundamentals in Southeast and South Asia should remain relatively resilient to headwinds during 2013, but each country will also have its own specific problems. Similarly, the region's corporate and banking sectors will face a mix of common and individually specific challenges. 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 the headwinds to global growth, given solid macroeconomic fundamentals and an increasing reliance on domestic sources of growth," says Christian de Guzman, a Vice President and Senior Analyst with Moody's Sovereign Risk Group. "The region will continue to grow faster relative to other regions, and growth in China -- a key factor -- will moderate with no hard landing," says Mr. de Guzman. Durable domestic demand will likely sustain stronger growth in a number of mid-size economies in the region. Household consumption will continue to drive momentum in Indonesia and the Philippines, while sizeable public investment programs in Malaysia and Thailand could offset the vulnerabilities from their reliance on international trade. Meanwhile, the on-going pursuit of growth-enhancing opportunities in a number of frontier markets in the region, including Bangladesh and Myanmar, may require increasing global market financing in 2013. "With the corporate sector, the credit quality of Southeast and South Asian corporates overall will remain stable, but export- oriented companies, firms in the commodities industry, and those exposed to cyclical sectors will be vulnerable to the sluggish economic growth apparent in the major developed markets, and to China's lower plateau for GDP growth," says Simon Wong, a Vice President and Senior Analyst with Moody's Corporate Finance Group. The report identifies the most vulnerable sectors as coal mining (negative); shipping (negative); consumer electronics (negative) & semiconductors and, to a lesser extent, refining & marketing (stable) and steel (stable). "Nevertheless, refinancing risks for corporates as a whole will be manageable, given the relatively low levels of offshore bonds maturing in the next 12 months, ongoing quantitative easing by the US and other major central banks, strong demand for capital market debt issued by corporates with solid credit profiles, and an increased variety of funding channels available to high-yield firms for refinancing maturing debt," says Mr. Wong. 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, manageable refinancing risks, and expectations of continued accommodative monetary policies. However, negative rating actions will continue to outpace positive ones, although to a smaller 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 with structural overcapacity. 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. For banks in several export-related economies in the region, such as Singapore, Malaysia, and Thailand, macroeconomic recovery will mean that any cyclical rise in non-performing loans (NPLs) will be modest. However, tightening liquidity will remain a feature as these banks' dollar loan books will keep outstripping deposit gathering in their own currencies. The banking systems for Singapore, Indonesia, Malaysia and Thailand have stable outlooks, while the Philippines is positive, and India and Vietnam are negative. ********* 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 ***