/raid1/www/Hosts/bankrupt/TCRAP_Public/130227.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
Wednesday, February 27, 2013, Vol. 16, No. 41
Headlines
A U S T R A L I A
GUNNS LTD: Former Directors Face Insolvent Trading, Breach Claims
MOWBRAY COLLEGE: Three Execs to Appear in Court on March 26
C H I N A
CHINA PRECISION: Incurs $10.9 Million Net Loss in Dec. 31 Qtr.
H O N G K O N G
BLAZE CONCEPT: First Meetings Slated for March 14
C LABS: Court to Hear Wind-Up Petition on March 20
CROSSPROFIT DEV: Court to Hear Wind-Up Petition on April 10
DAH SING: Fitch Affirms Subordinated Debt Rating at 'BB+'
EAGLETRON TECHNOLOGY: Wong and Arab Appointed as Liquidators
GRAND POST: Court to Hear Wind-Up Petition on March 20
I-GEN HEALTHCARE: Court to Hear Wind-Up Petition on March 20
ITAT GROUP: Court to Hear Wind-Up Petition on March 13
JACKPOT DEVELOPMENT: Court to Hear Wind-Up Petition on April 10
LA' POCHE: Creditors' Proofs of Debt Due March 4
LASERFUND UMBRELLA: Court to Hear Wind-Up Petition on March 27
LINK WISE: Lees and Mat Appointed as Liquidators
O' MACY BEAUTY: First Meetings Slated for March 8
PATINI INTERNATIONAL: Court to Hear Wind-Up Petition on March 20
PS EXIM: First Meetings Slated for March 13
I N D I A
AMIGO INDUSTRIES: CRISIL Assigns 'BB-' Ratings to INR90MM Loans
BRAMHACORP Infrastructures: CRISIL Rates INR600MM Loan at 'B+'
GAYATRI BIOORGANICS: CRISIL Assigns 'D' Ratings to INR480MM Loans
GLOBAL MEDIKIT: Delay in Loan Payment Cues CRISIL to Junk Ratings
HARITASA CHECKMATE: CRISIL Assigns 'BB-' Rating to INR50MM Loan
IENERGIZER LTD: Moody's Assigns (P)B2 CFR; Outlook is Stable
JESSOP AND CO: Declining Liquidity Prompts CRISIL to Junk Ratings
KASHI KANCHAN: CRISIL Upgrades Ratings on INR75MM Loans to 'B'
KINGFISHER AIRLINES: Government Withdraws Flying Slots
MAHADEV SITHARAM: CRISIL Junks Ratings Due to Loan Payment Delays
M.B. LAMINATORS: CRISIL Reaffirms 'BB-' Rating on INR87MM Loans
MY FONE: CRISIL Assigns 'B+' Rating to INR50MM Cash Credit
PIYUSH OVERSEAS: CRISIL Assigns 'B' Ratings to INR59.7MM Loans
S B IMPEX: CRISIL Upgrades Ratings on INR50MM Loans to 'B+'
S K TRANSLINES: CRISIL Assigns 'B+' Ratings to INR80MM Loans
THERELEK ENGINEERS: CRISIL Puts 'BB-' Rating on INR122.3MM Loans
I N D O N E S I A
INDIKA ENERGY: Total SA Stake Purchase No Impact on Fitch Ratings
S O U T H K O R E A
SSANGYONG ENG'G: Files For Debt Workout Program
* One Out of 3 Listed S. Korean Builders Suffer Losses in 2012
N E W Z E A L A N D
SOLID ENERGY: In talks With Banks as Debts Balloon to NZ$389MM
P H I L I P P I N E S
ALBAY ELECTRIC: Avoids Bankruptcy as Firm Set to be Privatized
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
=================
A U S T R A L I A
=================
GUNNS LTD: Former Directors Face Insolvent Trading, Breach Claims
-----------------------------------------------------------------
Matthew Denholm at The Australian reports that former directors of
failed timber company Gunns Ltd. face investigation into whether
the company traded while insolvent, used third party funds for
cash flow, and breached duties to plantation growers.
A report to creditors by administrators PPB Advisory identifies
these "potential breaches" of director duties and suggests they be
further probed by a liquidator, The Australian says.
A meeting of Gunns creditors on March 5, 2013, will vote on PPB
Advisory's recommendation in the report that the collapsed timber
company be placed into liquidation.
According to the Australian, PPB Advisory said that its
investigations into the company were ongoing.
However, it said the company may have been trading while solvent
as early as March last year, when the Singapore-based Richard
Chandler Corporation withdrew a $150 million investment offer, the
report notes.
"As we are yet to form a conclusive view on the date of
insolvency, we are unable to state definitively whether the Gunns
Group traded whist insolvent," the report, as cited by The
Australian, concludes. "Additional investigations will be
required by a liquidator (if appointed) before a view may be
formed."
The report said unsecured creditors, which are owed a combined
AUD135 million, will receive nothing, while outstanding employee
entitlements of AUD10 million are expected to be met, The
Australian relays.
The Australian adds that the report concluded that a banking
syndicate would recoup some but not all of AUD446 million still
owed to it, but offered no certainty for AUD190 million owed to
other secured creditors.
About Gunns Limited
Based in Launceston, Australia, Gunns Limited (ASX:GNS) --
http://www.gunns.com.au/-- was an hardwood and softwood forest
products company. It operated within three segments: Forest
products, Timber products and Other activities. Gunns has about
645 employees in Tasmania, Victoria, South Australia and Western
Australia.
On Sept. 25, 2012, the directors of Gunns Limited and its 35
entities, and the responsible entity of Gunns Plantations Limited
appointed Ian Carson, Daniel Bryant and Craig Crosbie of PPB
Advisory as Voluntary Administrators. KordaMentha has also been
appointed Receivers and Managers.
The appointment came after Gunns failed to secure an equity
investor amid high debt and a prolonged trading halt, The
Australian reported.
MOWBRAY COLLEGE: Three Execs to Appear in Court on March 26
-----------------------------------------------------------
Herald Sun reports that liquidators probing the collapse of
Mowbray College in Melbourne's west have demanded three school
directors submit to a detailed examination of their assets and
provide the source of funds used to purchase five properties.
Herald Sun says former principal and director Anthony Keirsten-
Wakefield, chairman John Ralph Wallace and another director, Keith
Raymond Scott Yates, have been summoned to appear at the Supreme
Court on March 26 for an examination of their financial affairs by
liquidator James Downey.
According to the report, the men have been ordered to hand over
records including tax returns and any assets they acquired after
January 2007 worth more than AUD10,000.
Herald Sun relates that Mr. Wallace has been asked about the
"source of funds used to pay the purchase, stamp duty and
acquisition costs" of properties in Riddells Creek, Melton West
and Gisborne.
Mr. Wallace said he did not understand the request and the
properties were purchased before he became associated with the
school, the report relays.
"I've never received any funds from the school. Any major
expenditure was always approved by the board. I really don't know
where they're coming from," Herald Sun quotes Mr. Wallace as
saying.
Mr. Yates has been asked about the source of funds used to
purchase a property in Kurunjang, while Mr. Keirsten-Wakefield has
been asked about a property in New Gisborne, Herald Sun says.
It is believed the liquidator is trying to establish the extent of
their assets, according to the report.
The men have also been asked about the transfer of more than
AUD300,000 to a Commonwealth Bank account in the school's name
from a National Australia Bank account also in the school's name
in the months before the collapse, the report adds.
About Mowbray College
Mowbray College was a Melbourne-based private school. It had
three campuses with about 1,000 students, and 200 staff. The
college entered voluntary administration in May 2012 with debts
of AUD18 million and is owed about AUD2 million in unpaid fees.
The school was placed into liquidation after a second meeting
with creditors on July 4, 2012.
=========
C H I N A
=========
CHINA PRECISION: Incurs $10.9 Million Net Loss in Dec. 31 Qtr.
--------------------------------------------------------------
China Precision Steel, Inc., reported a net loss of $10.88 million
on $8.16 million of sales revenues for the three months ended Dec.
31, 2012, as compared with a net loss of $3.53 million on $33.66
million of sales revenues for the same period during the prior
year.
For the six months ended Dec. 31, 2012, the Company incurred a net
loss of $15.10 million on $14.12 million of sales revenues, as
compared with a net loss of $4.61 million on $75.82 million of
sales revenues for the same period a year ago.
The Company's balance sheet at Dec. 31, 2012, showed $173.72
million in total assets, $67.76 million in total liabilities, all
current, and $105.95 million in total stockholders' equity.
"During the quarter, we continued to focus on our strategy to
reduce production of negative margin products including many of
our low carbon steel products which resulted in a decline of
revenue period-over-period. However, compared with the immediate
preceding quarter ended September 30, 2012, our revenue increased
37.1% as selling prices showed signs of stabilizing during the
quarter and our sales volume increased 38.1%," commented Mr. Hai
Sheng Chen, CEO of China Precision Steel. "While we continue to
remain cautious about the near-term as the Chinese steel industry
works through its overcapacity, we believe that the Chinese
economy and steel industry will continue to gradually improve
throughout the calendar year 2013 as the new government implements
its policies for economic growth."
A copy of the press release is available for free at:
http://is.gd/ouQlNm
About China Precision
China Precision Steel Inc. is a niche precision steel processing
company principally engaged in the production and sale of high
precision cold-rolled steel products and provides value added
services such as heat treatment and cutting medium and high carbon
hot-rolled steel strips. China Precision Steel's high precision,
ultra-thin, high strength (7.5 mm to 0.05 mm) cold-rolled steel
products are mainly used in the production of automotive
components, food packaging materials, saw blades and textile
needles. The Company primarily sells to manufacturers in the
People's Republic of China as well as overseas markets such as
Nigeria, Thailand, Indonesia and the Philippines. China Precision
Steel was incorporated in 2002 and is headquartered in Sheung Wan,
Hong Kong.
China Precision reported a net loss of $16.94 million for the year
ended June 30, 2012, compared with net income of $256,950 during
the prior fiscal year.
Moore Stephens, in Hong Kong, issued a "going concern"
qualification on the consolidated financial statement for the year
ended June 30, 2012. The independent auditors noted that the
Company has suffered a very significant loss in the year ended
June 30, 2012, and defaulted on interest and principal repayments
of bank borrowings that raise substantial doubt about its ability
to continue as a going concern.
================
H O N G K O N G
================
BLAZE CONCEPT: First Meetings Slated for March 14
-------------------------------------------------
Creditors and contributories of Blaze Concept Limited will hold
their first meetings on March 14, 2013, at 2:30 p.m., and
3:00 p.m., respectively at Units 511-512, 5/F, Tower 1,
Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Ho Man Kit Horace and Kong Sau Wai, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
C LABS: Court to Hear Wind-Up Petition on March 20
--------------------------------------------------
A petition to wind up the operations of C Labs (HK) Limited will
be heard before the High Court of Hong Kong on March 27, 2013, at
9:30 a.m.
Tonthai Investment Enterprises Limited filed the petition against
the company.
The Petitioner's Solicitors are:
Messrs. Winston Chu & Co
Room 608, 6th Floor
One Pacific Place
88 Queensway, Hong Kong
CROSSPROFIT DEV: Court to Hear Wind-Up Petition on April 10
-----------------------------------------------------------
A petition to wind up the operations of Crossprofit Development
Limited will be heard before the High Court of Hong Kong on
April 10, 2013, at 9:30 a.m.
Bank of China (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Li & Partners
22/F, World-Wide House
19 Des Voeux Road
Central, Hong Kong
DAH SING: Fitch Affirms Subordinated Debt Rating at 'BB+'
---------------------------------------------------------
Fitch Ratings has affirmed the ratings of five small Hong Kong
banks -- Chong Hing Bank Limited (CHB), China CITIC Bank
International Limited (CNCBI), Dah Sing Bank (DSB), Shanghai
Commercial Bank Ltd (SCB), and Wing Hang Bank Limited (WHB). The
Long-Term Issuer Default Ratings (IDR) and Viability Ratings (VR)
are 'A-' and 'a-' for SCB and WHB, 'BBB+' and 'bbb+' for CHB and
DSB, and 'BBB' and 'bbb' for CNCBI. The agency has also affirmed
WHB's Macau-based subsidiary Banco Weng Hang (BWH) with its IDR at
'A-'. The Outlook on each bank's IDRs is Stable.
RATING ACTION RATIONALE
The IDRs - all of which are driven by the banks' respective VRs -
reflect these five banks' consistently resilient credit profile,
with adequate capital and liquidity to mitigate risks associated
with their China expansion and to withstand an economic downturn.
The Stable Outlook reflects Fitch's view that the banks will
continue to manage growth cautiously and maintain their prudent
risk appetite and credit controls.
RATING DRIVERS AND SENSITIVITIES - IDRs AND VRs
The banks' VRs and, in turn, their IDRs capture their prudent
credit culture, without materially relaxing their underwriting
criteria to defend market shares. The banks, like most of their
Hong Kong peers, are focusing on expanding abroad to support their
declining domestic market positions and profitability. However,
loan growth remains below the sector's average despite strong
demand from China-related borrowers and for trade-related lending
(H112: 2% non-annualised versus 5% for the sector). This led to a
fall in their combined lending share to 7.2% at end-H112 (2009:
8.7%). However, the banks' impaired loan ratio of 0.4% at end-H112
remains lower than the sector's average of 1%.
Fitch expects that cross-border risks for the banks will continue
to increase and even exceed risks associated with the domestic
property market. Their average share of loans for use outside of
Hong Kong increased to 38% of total loans at end-H112 from 31% at
end-2009 (sector: 35% at end-2012). This compares with an average
35% of domestic property loans at end-H112 (sector's 33% at end-
2012). The majority of their cross-border exposures relate to
China.
CNCBI's gross mainland China exposures (MCEs) to banks and non-
banks stand out at 55% of total assets at end-H112, driven by
business referrals from its Chinese parent. WHB's MCEs are also
growing rapidly (31% of assets) despite a slowdown in trade-
related lending. DSB's risk profile somewhat differs with growth
equally driven by its sizeable domestic unsecured retail lending
(5% of assets) and MCEs (17%). Property and mortgage loans remain
the dominant assets at 22%. SCB has legacy property lending in the
US in its overseas loans, in addition to MCEs (20%). CHB's MCEs
remain in line with the sector at 25%, but increased from 21% at
end-2011, mainly driven by short-term debt securities issued by
banks and trade-related financing. Its loan portfolio is biased
towards domestic real estate-related lending (22% of assets,
including mortgages).
Collateral coverage remains high (end-H112: 78%, 2009: 80%)
despite lower coverage for non-domestic loans. Fitch views the
latter as indicative of limited reliance on cross-border
enforcement. The banks' prudent collateral management, in
combination with stringent regulatory oversight, mitigates growing
risks from the buoyant domestic property market. Margins and pre-
impairment profit remain under pressure (1.1% of average assets in
H112) but, in combination with sound capitalisation (the average
Fitch core capital ratio: 13.7% at end-H112), should still provide
an adequate buffer to absorb potential asset quality
deterioration, based upon historical experiences.
The banks' VRs and IDRs are sensitive to a change in Fitch's
assessment of risk appetite and underwriting standards. They may
be downgraded if risks attached to the banks' increasing China
exposures are no longer balanced by steady profitability, adequate
capital and liquidity. Furthermore Fitch considers that CHB's
ratings are most vulnerable to negative rating actions due to its
concentrated exposures, to large borrowers and directly/indirectly
to the property market, and moderate profitability. Nevertheless,
Fitch recognises CHB's consistently conservative risk appetite,
which allows it to enjoy the strongest asset quality among the
reviewed peers. An upgrade for the peer group is unlikely as Fitch
expects that the lack of both pricing power and regional
diversification will continue to constrain the banks' growth and
profitability.
RATING DRIVERS AND SENSITIVITIES - SUPPORT RATING AND SUPPORT
RATING FLOOR
Support Ratings (SR) and Support Rating Floors (SRF) of CHB, DSB,
SCB and WHB reflect their moderate systemic importance, and a low
probability of support from the Hong Kong authorities, if needed.
The SR and SRF are potentially sensitive to any change in
assumptions around the propensity or ability of the Hong Kong
authorities to provide timely support to these banks. This would
most likely be manifested in a change to Hong Kong's sovereign
rating (AA+/Stable).
CNCBI's SR reflects the bank's strategic importance to its 70.3%
parent China CITIC Bank (CNCB; BBB/Stable) given its complementary
role in its parent's China activities. CNCBI's IDR would not fall
below 'BBB-' on assumed support from CNCB and, ultimately, the
Chinese government in light of the state ownership in CNCB. The SR
is potentially sensitive to any change in assumptions around the
propensity or ability of CNCB to provide timely support to CNCBI.
This may arise from a change in CNCBI's ownership structure.
SUBORDINATED DEBT AND OTHER HYBRID SECURITIES
Subordinated debt and other hybrid capital issued by CHB, CNCBI,
DSB and WHB are all notched down from their VRs in accordance with
Fitch's assessment of each instrument's respective non-performance
and relative loss severity risk profiles. Fitch rates the banks'
lower tier-2 subordinated debts one notch below their respective
VRs to reflect higher loss severity given their subordination to
senior unsecured instruments. Perpetual junior subordinated debt
ratings are notched three levels from the VR for higher loss
severity and greater non-performance risk given their interest
deferral features. Their ratings are primarily sensitive to a
change in these banks' VRs.
SUSBIDIARY RATING DRIVERS AND SENSITIVITIES - Banco Weng Hang
BWH is a wholly owned subsidiary of WHB. BWH's IDRs are aligned
with WHB's because of high probability of support from the latter
given its importance to and integration with parent. BWH's ratings
are sensitive to the same factors that affect WHB's IDR.
The rating actions are:
Chong Hing Bank Limited
Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Lower tier-2 subordinated debt affirmed at 'BBB'
China CITIC Bank International Limited
Long-Term Foreign Currency IDR affirmed at 'BBB'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F3'
Viability Rating affirmed at 'bbb'
Support Rating affirmed at '2'
Senior unsecured securities affirmed at 'BBB'
Lower tier-2 subordinated debt affirmed at 'BBB-'
Dah Sing Bank
Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Senior unsecured debt affirmed at 'BBB+'
Lower tier-2 subordinated debt affirmed at 'BBB'
Perpetual junior subordinated debt affirmed at 'BB+'
Shanghai Commercial Bank Ltd
Long-Term Foreign Currency IDR affirmed at 'A-'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Wing Hang Bank Limited
Long-Term Foreign and Local Currency IDRs affirmed at 'A-';
Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Perpetual junior subordinated notes affirmed to 'BBB-'
Banco Weng Hang
Long-Term Foreign Currency IDR affirmed at 'A-'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Support Rating affirmed at '1'
EAGLETRON TECHNOLOGY: Wong and Arab Appointed as Liquidators
------------------------------------------------------------
Wong Kwok Keung and Osman Mohammed Arab on Nov. 27, 2012 were
appointed as liquidators of Eagletron Technology Limited.
The liquidators may be reached at:
Wong Kwok Keung
Osman Mohammed Arab
29/F Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
GRAND POST: Court to Hear Wind-Up Petition on March 20
------------------------------------------------------
A petition to wind up the operations of Grand Post International
Limited will be heard before the High Court of Hong Kong on
March 20, 2013, at 9:30 a.m.
Chan Suk King filed the petition against the company.
I-GEN HEALTHCARE: Court to Hear Wind-Up Petition on March 20
------------------------------------------------------------
A petition to wind up the operations of I-Gen Healthcare Corp.
Limited will be heard before the High Court of Hong Kong on
March 20, 2013, at 9:30 a.m.
Laboratoires Iprad Sante filed the petition against the company.
The Petitioner's Solicitors are:
Robertsons
57th Floor, The Center
99 Queen's Road
Central, Hong Kong
ITAT GROUP: Court to Hear Wind-Up Petition on March 13
------------------------------------------------------
A petition to wind up the operations of Itat Group Limited will be
heard before the High Court of Hong Kong on March 13, 2013, at
9:30 a.m.
Blue Ridge China Partners L.P. filed the petition against the
company.
The Petitioner's Solicitors are:
Clifford Chance
28th Floor, Jardine House
One Connaught Place
Central, Hong Kong
JACKPOT DEVELOPMENT: Court to Hear Wind-Up Petition on April 10
---------------------------------------------------------------
A petition to wind up the operations of Jackpot Development
Limited will be heard before the High Court of Hong Kong on
April 10, 2013, at 9:30 a.m.
Bank of China (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Li & Partners
22/F, World-Wide House
19 Des Voeux Road
Central, Hong Kong
LA' POCHE: Creditors' Proofs of Debt Due March 4
------------------------------------------------
Creditors of LA' Poche Company Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 4, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Chan Ho Yin Graham
Chan Suk King
Rooms 3719-26, 37/F
Sun Hung Kai Centre
30 Harbour Road
Wanchai, Hong Kong
LASERFUND UMBRELLA: Court to Hear Wind-Up Petition on March 27
--------------------------------------------------------------
A petition to wind up the operations of Laserfund Umbrella Factory
Limited will be heard before the High Court of Hong Kong on March
27, 2013, at 9:30 a.m.
Bank of China (Hong Kong) Limited filed the petition against the
company.
The Petitioner's Solicitors are:
Chu & Lau
Unit A, 33rd Floor
United Centre
No. 95 Queensway
Hong Kong
LINK WISE: Lees and Mat Appointed as Liquidators
------------------------------------------------
Messrs. John Lees and Mat Ng on Nov. 5, 2012 were appointed as
liquidators of Link Wise Furniture Company Limited.
The liquidators may be reached at:
Messrs. John Lees
Mat Ng
JLA Asia Limited
20/F Henley Building
5 Queen's Road
Central, Hong Kong
O' MACY BEAUTY: First Meetings Slated for March 8
-------------------------------------------------
Creditors and contributories of O' Macy Beauty Limited will hold
their first meetings on March 8, 2013, at 3:00 p.m., and
4:00 p.m., respectively at Unit 2611-13A, 26/F, 113 Argle Street,
Mongkok, in Kowloon.
At the meeting, Pang Yiu Kwong and Tso Yin Yee, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
PATINI INTERNATIONAL: Court to Hear Wind-Up Petition on March 20
----------------------------------------------------------------
A petition to wind up the operations of Patini International
Limited will be heard before the High Court of Hong Kong on
March 20, 2013, at 9:30 a.m.
Hong Kong Export Credit Insurance Corporation filed the petition
against the company.
The Petitioner's Solicitors are:
Mayer Brown JSM
18th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
PS EXIM: First Meetings Slated for March 13
-------------------------------------------
Contributories and creditors of PS Exim (HK) Limited will hold
their first meetings on March 13, 2013, at 2:30 p.m., and
3:00 p.m., respectively at Units 511-512, 5/F, Tower 1,
Silvercord, 30 Canton Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Ho Man Kit Horace and Kong Sau Wai, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
=========
I N D I A
=========
AMIGO INDUSTRIES: CRISIL Assigns 'BB-' Ratings to INR90MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facilities of Amigo Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL BB-/Stable (Assigned)
Term Loan 60 CRISIL BB-/Stable (Assigned)
The rating reflects the extensive experience of AI's promoter in
the packaging industry, and the firm's above-average financial
risk profile marked by a moderate gearing and healthy debt
protection metrics. These rating strengths are partially offset by
AI's large working capital requirements, small scale of operations
in the intensely competitive packaging industry along with
customer concentration.
Outlook: Stable
CRISIL believes that AI will continue to benefit over the medium
term from its promoter's extensive industry experience. CRISIL
also believes that the firm will maintain its above-average
financial risk profile over the same period, supported by higher
capacity utilization. The outlook may be revised to 'Positive' in
case AI generates higher-than-expected cash accruals, backed by
improvement in its scale of operations and in its working capital
cycle, leading to improvement in its liquidity .Conversely, the
outlook may be revised to 'Negative' if the firm faces a decline
in offtake from its key customers, adversely affecting its
revenues and margins, thereby leading to deterioration in its
liquidity or if the firm undertakes higher than expected debt
funded capex, leading to deterioration in its capital structure.
AI, established in 2010, manufactures corrugated packaging boxes;
it caters primarily to textile companies. AI is currently managed
by Mr. Kanhaiya Agarwal.
AI reported a net loss of INR17.16 million on net sales of
INR107.49 million for 2011-12 (refers to financial year, April 1
to March 31).
BRAMHACORP Infrastructures: CRISIL Rates INR600MM Loan at 'B+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of BRAMHACORP Infrastructures Pvt Ltd (formerly
known as Bramha Builders).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 600 CRISIL B+/Stable (Assigned)
The ratings reflect BCIPL's susceptibility to risks related to
implementation of its ongoing projects and cyclicality in the real
estate industry in India. These rating weaknesses are partially
offset by the extensive experience of BCIPL's promoters in the
real estate industry and their funding support.
Outlook: Stable
CRISIL believes that BCIPL will continue to benefit from its
promoters' extensive industry experience and their funding
support. The outlook may be revised to 'Positive' if BCIPL's
liquidity improves, most likely driven by timely completion of its
ongoing projects within budgeted costs and limited extension of
loans and advances to group companies and other entities.
Conversely, the outlook may be revised to 'Negative' in case of
pressure on BCIPL's liquidity stemming from time or cost overrun
in the projects, lower-than-expected advances from customers,
leading to less-than-expected cash inflows, large financial
exposure to group companies and other entities or large, debt-
funded future projects.
BCIPL executes real estate projects. The company is executing four
residential real estate projects in Pune (Maharashtra), namely
Vantage, SunCity Platinum, Avenue Phase-3 and F-Residences and a
commercial real estate project called PuneOne. The saleable area
under construction for all four projects is around 1.3 million
square feet. BCIPL was established as a partnership firm in 1982
and was reconstituted as a private limited company in March 2012.
The company is a part of the Pune-based BramhaCorp group.
GAYATRI BIOORGANICS: CRISIL Assigns 'D' Ratings to INR480MM Loans
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Gayatri BioOrganics Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100.00 CRISIL D (Assigned)
Proposed Long-Term 130.00 CRISIL D (Assigned)
Bank Loan Facility
Bank Guarantee 100.00 CRISIL D (Assigned)
Cash Credit 150.00 CRISIL D (Assigned)
The ratings reflect instances of delay by GBL in servicing its
debt; the delays have been caused by the company's weak liquidity,
marked by insufficient net cash accruals vis-a-vis its debt
obligations. On account of the increase in its raw material cost,
GBL's operating margin declined by nearly half (resulting in net
loss) during 2011-12 (refers to financial year, April 1 to March
31) and for the period from April 2012 to December 2012. GBL's
liquidity is also weak because of its working-capital-intensive
operations.
GBL also has a weak financial risk profile, marked by a high
gearing, below-average debt protection metrics and a small net
worth, because of accumulated losses in the past; moreover, the
company's financial flexibility is constrained by its large
maturing debt obligations and working capital requirements.
However, GBL benefits from its long track record of operations and
its established customer base.
GBL (listed on Bombay Stock Exchange) is part of Gayatri Group.
Incorporated in 1994, the company is promoted by Mr. T Sandeep
Kumar Reddy, Mr. P Maruthi Babu, and Mr. C V Rayudu. It processes
and sells maize products; its product portfolio includes starch
and sortibol, and by-products of maize such as maize germ, fiber,
and gluten. The company is based in Hyderabad (Andhra Pradesh).
GBL reported a net loss of INR28.1 million on provisional net
sales of INR1282 million for 2011-12, against a profit after tax
of INR28.7 million on net sales of INR865.1 million for 2010-11.
GLOBAL MEDIKIT: Delay in Loan Payment Cues CRISIL to Junk Ratings
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Global Medikit Ltd. The ratings reflect instances
of delay by GML in servicing its debt; the delays have been caused
by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 66 CRISIL D (Assigned)
Proposed Long-Term 3 CRISIL D (Assigned)
Bank Loan Facility
Cash Credit 40 CRISIL D (Assigned)
Letter of Credit 6 CRISIL D (Assigned)
The rating also factors in the vulnerability of GML's business to
rising raw material prices and sharp increase in foreign exchange
rate impacting its export realisations. The company, however,
benefits from its promoters' extensive experience in the medical
supplies manufacturing industry.
GML, incorporated in April 2001, manufactures medical disposables
such as infusion therapy devices including intravenous (IV)
catheter, IV cannaulae, and IV administration sets. Its main
promoters are Mr. Manish Kumar Sharma and Mr. Susheel Upadhyay.
The company's manufacturing facilities are located in Dehradun
(Uttaranchal).
GML, on a provisional basis, reported a profit after tax (PAT) of
INR26 million on net sales of INR256 million for 2011-12 (refers
to financial year, April 1 to March 31) against a PAT of INR43
million on net sales of INR205 million for 2010-11.
HARITASA CHECKMATE: CRISIL Assigns 'BB-' Rating to INR50MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Haritasa Checkmate Electronics Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL A4+ (Assigned)
Cash Credit 50 CRISIL BB-/Stable (Assigned)
The ratings reflect the extensive experience of HCEPL's promoters
in the electronic surveillance and security industry, leading to
established customer and supplier relationships. The ratings also
factor in the expected financial support from the Checkmate group.
These rating strengths are partially offset by the company's small
scale of operations and large working capital requirements.
Outlook: Stable
CRISIL believes that HCEPL will maintain its business risk profile
over the medium term, backed by its promoters' extensive industry
experience. The outlook may be revised to 'Positive' if HCEPL
improves its scale of operations while sustaining its
profitability, leading to larger cash accruals, or if it improves
its working capital management. Conversely, the outlook may be
revised to 'Negative' if the company's operating margin declines
or if the firm's financial risk profile deteriorates, due to a
more-than-expected, debt-funded capital expenditure, or stretch in
working capital or withdrawal of funds by promoters.
Incorporated in 2011, HCEPL is promoted by Bengaluru (Karnataka)-
based Mr. V Prabhakar and Mrs. Sudha Prabhakar. The company
provides electronic surveillance and security solutions. The
Checkmate group is expected to have a strategic investment in
HCEPL in the near future. The group is engaged in various forms of
security services such as man guarding, cash management, and
housekeeping facility services. The group's flagship company is
Checkmate Services Pvt Ltd (CSPL; rated 'CRISIL BBB-/Stable/CRISIL
A3').
HCEPL reported a profit after tax (PAT) of INR 1.4 million on net
sales of INR52.5 million for 2011-12 (refers to financial year,
April 1 to March 31).
IENERGIZER LTD: Moody's Assigns (P)B2 CFR; Outlook is Stable
------------------------------------------------------------
Moody's Investors Service assigned a provisional (P)B2 corporate
family rating to iEnergizer Limited.
At the same time, Moody's has assigned a provisional (P)B2 foreign
currency rating to the proposed senior secured term Loan B to be
drawn by iEnergizer.
The outlook for both ratings is stable.
This is the first time Moody's has assigned ratings to iEnergizer.
Moody's expects to remove the rating from its provisional status
upon the closing of the term loan and a review of the final terms.
The CFR is also provisional, subject to closing of the term loan,
which will refinance the entirety of the existing payable-on-
demand loans from the company's shareholder and a third party.
Ratings Rationale:
"iEnergizer's (P)B2 Corporate Family Rating reflects its small
size, a situation which is partially mitigated by high margins and
its favorable market position in the publishing outsourcing
sector, which it acquired with the purchase of Aptara Inc in
February 2012," says Alan Greene, a Moody's Vice President and
Senior Credit Officer.
"The $150 million purchase of Aptara has more than doubled
iEnergizer's revenue run rate and given it a strong platform for
organic growth. However, it has also placed, for the first time, a
material level of debt on its balance sheet. And, as a company
with a history of very high dividend payouts, it must now instead
service debt with its substantial cash from operations, less any
modest capex needs," adds Greene, who is Moody's Lead Analyst for
iEnergizer.
The rating is constrained by the company's small scale,
notwithstanding its high margins. Such margins have been achieved
by the use of sub-contractors for all of iEnergizer's traditional
back-office business process outsourcing work and in some areas of
Aptara's content transformation business.
In addition, iEnergizer tolerates a relatively high employee
attrition rate in order to manage its wage costs, relying on
replacements from India's ample pool of well-educated young
adults.
Separately, Moody's notes that in spite of having over 300
customers, its top 10 clients generate around 56% of total
revenue, translating into high concentration risk in an industry
where contract tenures ultimately depend more on performance than
on absolute contract terms.
"Despite fierce competition in both BPO and in publishing
outsourcing, iEnergizer seems able to perform well above the
constraints of its small size," says Greene. "In particular, it
offers one of the broadest product suites in content
transformation, wins BPO work with relatively large clients, and
is unusual in the strength of its support activities for video
game producers" adds Greene.
Moody's notes that Aptara was established over 20 years ago.
However, by contrast, iEnergizer's position today depends heavily
on its promoter and thus key-man risk is high. This executive
plays a crucial role in winning new accounts, particularly in the
BPO area, and his influence is apparent in the sub-contract
arrangements.
While this person's involvement is a major strength for
iEnergizer, it is unusual for a promoter to have so many touch
points with an investment. Moving the company away from such
dependency may present a challenge, but -- in conjunction with the
balancing of shareholder interests with those of existing parties
and new stakeholders -- aspects of corporate governance and
transparency are expected to improve.
The proposed loan to be issued by Aptara and iEnergizer will be
guaranteed by as many subsidiaries as feasible, including the
invoicing entities in Mauritius, such that over 90% of the group's
EBITDA generators will be parties to the loan.
The proceeds will be used to pay down a loan from the shareholder
and a low-cost loan from a third party, as arising from the Aptara
purchase. Future liquidity will depend on the company's dividend
policy and the establishment of working capital lines with banks.
The stable outlook assumes that the term loan is completed. It
also reflects Moody's expectations that iEnergizer's business
model remains consistent and that the company can grow its
business without depending excessively on acquisitions.
Under this scenario, there is also room for EBITDA margins to
decline slightly over time, towards the low 20% range, as a result
both of competitive pressure on revenues and cost pressures, as
the organization grows.
Given size and leverage constraints, there is very limited upside
potential for the ratings. But upgrade pressure could evolve over
the longer term if the company maintains overall EBITDA margins
above 20% and improves its relative market share and revenues
surpass $500 million.
Credit metrics that could support this outcome would include i)
total debt/EBITDA below 4.0x; or ii) free cash flow/total debt of
around 8% to 10% or better, on a sustained basis.
On the other hand, the rating could face downward pressure if free
cash flow is adversely impacted by a decline in revenues and
rising costs, or by an overly aggressive acquisitions policy.
Failure to term out the debt maturity profile could also lead to a
downgrade. Such a scenario could be accompanied by i) total
debt/EBITDA exceeding 4.5-5.0x; ii) free cash flow/total debt
falling below 5%; or iii) (EBITDA-capex)/interest expenses falling
below 1.5x to 2.0x, on a sustained basis.
The principal methodology used in this rating was the Global
Business & Consumer Service Industry Rating Methodology published
in October 2010.
iEnergizer Limited is an Indian-based company providing publishing
outsourcing and other business process outsourcing (BPO) for
businesses in the banking, finance services and insurance, legal,
education and consumer and media sectors. With some 12,000
employees largely in India (including dedicated sub-contractors),
it operates from 11 delivery centers worldwide. Listed on the
Alternative Investment Market of the London Stock Exchange since
Sept. 14, 2010, and with a market capitalization of $857 million
as of Feb. 21, 2013, it is indirectly 65%-owned by Mr. Anil
Aggarwal. iEnergizer reported revenue of $113 million and pre-tax
income of $20.6 million in the 12 months to September 2012.
JESSOP AND CO: Declining Liquidity Prompts CRISIL to Junk Ratings
-----------------------------------------------------------------
CRISIL has downgraded its rating on bank facilities of Jessop and
Co Ltd to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 600 CRISIL D (Downgraded from
'CRISIL C')
Bank Guarantee 450 CRISIL D (Downgraded from
'CRISIL A4')
Letter of Credit 250 CRISIL D (Downgraded from
'CRISIL A4')
The rating downgrade reflects deterioration of JCL's liquidity
resulting in consistent over-utilisation of cash credit limit for
more than 30 days; the deterioration in the liquidity is on
account of stretch in receivables. Moreover, there are instances
of delays by JCL in servicing its debt repayment; however, these
loans are not rated by CRISIL.
The rating also reflects, below-average financial risk profile
marked by moderate gearing and weak debt-protection metrics, and
working-capital-intensive operations. These rating weaknesses are
partially offset by JCL's established brand and diversified
product mix.
JCL was established in the 18th century primarily as a heavy
engineering company. It is an established brand in the
construction of EMU coaches and wagons for the Indian Railways.
Apart from coaches and wagons, the company also manufactures
diversified engineering products, such as bogie frames, cranes,
road rollers, hydraulic cylinders, and undertakes fabrication of
steel structures. JCL also, trades in steel products. Currently,
JCL is owned and managed by Mr. Pawan Kumar Ruia.
For 2011-12 (refers to financial year, April 1 to March 31), JCL
reported a profit after tax (PAT) of INR2.73 million on net sales
of INR2.72 billion as against a PAT of INR237.9 million on net
sales of INR2.68 billion for 2010-11.
KASHI KANCHAN: CRISIL Upgrades Ratings on INR75MM Loans to 'B'
--------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Kashi
Kanchan Pvt Ltd to 'CRISIL B/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 35 CRISIL A4 (Rating Upgraded
from 'CRISIL D')
Cash Credit 70 CRISIL B/Stable (Rating
Upgraded from 'CRISIL D')
Proposed Long-Term 2 CRISIL B/Stable (Rating
Bank Loan Facility Upgraded from 'CRISIL D')
Term Loan 3 CRISIL B/Stable (Rating
Upgraded from 'CRISIL D')
The ratings upgrade reflect an improvement in KKPL's liquidity on
account of enhancement in fund-based bank lines by INR20 million.
The company is expected to sustain the liquidity backed by
increasing accruals.
The rating continues to reflect KKPL's weak liquidity owing to
large working capital requirements and its moderate financial risk
profile constrained by small net worth, and average debt
protection metrics. These weaknesses are partially offset by its
promoters' extensive experience in the civil construction
industry.
Outlook: Stable
CRISIL believes that KKPL's liquidity will remain weak over the
medium term owing to working capital intensity of operations. The
outlook may be revised to 'Positive' if KKPL generates higher-
than-expected accruals and improves its working capital
management, further strengthening the liquidity. Conversely, the
outlook may be revised to 'Negative' if there is a decline in
accruals or stretch in working capital cycle, constraining the
liquidity.
Set up as a partnership concern in 1974 by Mr. Surendra Kumar
Padhi and Mr. Abhimanyu Padhi, KKPL was reconstituted as a private
limited company on July 20, 2005. The company undertakes civil
construction activities involving road, drainage, and building
construction, primarily in Odisha.
For 2011-12 (refers to financial year, April 1 to March 31), KKPL
reported a profit after tax (PAT) of INR5.1 million on revenues of
INR146 million, against a PAT INR6 million on revenues of INR180
million for 2010-11.
KINGFISHER AIRLINES: Government Withdraws Flying Slots
------------------------------------------------------
The Hindu reports that the Union Civil and Aviation Ministry, on
Monday, stripped Kingfisher Airlines Ltd of international and
domestic flying slots.
According to the Hindu, the Civil Aviation Minister, Ajit Singh,
has directed the Airports Authority of India (AAI) to take action
to allot the domestic slots of Kingfisher Airlines to other
domestic airlines. Similarly, various international routes will
now be offered to the rival airlines, the report relates citing an
official statement.
"The government has decided to withdraw all international
bilateral traffic rights allocated to Kingfisher Airlines with
immediate effect,'' the statement added.
The Hindu relates that the statement said these international
traffic rights had been withdrawn from Kingfisher Airlines on
account of non-utilization by the airlines. "The Civil Aviation
Minister has decided to make these international traffic rights
available to other carriers for use. This would give additional
availability of about 25,000 seats a week for use by other Indian
carriers to these eight countries, some of which are much in
demand by these carriers," the statement said.
Further, it said it had been decided to withdraw the domestic
slots which were allocated to Kingfisher Airlines at different
airports for domestic flights.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., served about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintained bases in major cities such as Delhi and
Mumbai.
* * *
Kingfisher Airlines, which has been unprofitable since it was
created in 2005, accumulated losses of $1.9 billion between
May 2005 and June 30, 2012, 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.
MAHADEV SITHARAM: CRISIL Junks Ratings Due to Loan Payment Delays
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Mahadev Sitharam Cotton Mills India Private Limited.
The ratings reflect the instances of delay by MSCMIPL in servicing
its debt; the delays have been caused by the company's weak
liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 15 CRISIL D (Assigned)
Cash Credit 170 CRISIL D (Assigned)
Proposed Long-Term 5 CRISIL D (Assigned)
Bank Loan Facility
MSCMIPL also has a weak financial risk profile marked by high
gearing and modest debt protection metrics, and its business and
profitability are susceptible to adverse government policies.
These rating weaknesses are partially offset by the benefits that
the company derives from its promoters' extensive business
experience in the cotton ginning industry.
MSCMIPL was incorporated in 2006 by Dhananiwala family at Adilabad
District, Andhra Pradesh. The company is engaged in ginning and
pressing of raw cotton (kapas) to make cotton bales and processing
the cotton seeds to produce cotton seed oil and cakes.
M.B. LAMINATORS: CRISIL Reaffirms 'BB-' Rating on INR87MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of M.B. Laminators
continue to reflect the susceptibility of MBL's operating margin
to volatility in raw material prices, and its average debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of the firm's partners in the polymer
bag industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.5 CRISIL A4+ (Reaffirmed)
Cash Credit 55.0 CRISIL BB-/Stable (Reaffirmed)
Letter of Credit 7.5 CRISIL A4+ (Reaffirmed)
Proposed Long-Term 21.0 CRISIL BB-/Stable (Reaffirmed)
Bank Loan Facility
Rupee Term Loan 11.0 CRISIL BB-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that MBL's business risk profile will remain
moderate supported by partners' extensive industry experience. The
outlook may be revised to 'Positive' in case of more-than-expected
increase in the firm's sales and profitability, leading to
improvement in its debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if MBL's financial risk
profile weakens, most likely because of significant decline in its
profitability, large debt-funded capital expenditure, or
withdrawal of capital by its partners.
MBL was set up in 2003 as partnership firm by Mr. Sandeep Morwal
and Mr. Shrikant Morwal. The firm manufactures various types of
high-density polyethylene bags and polypropylene bags, used for
packing cement, textiles, grains, fertilizers, and textiles.
For 2011-12 (refers to financial year, April 1 to March 31), MBL
reported a net loss of INR0.4 million on net sales of INR189.2
million, against a net profit of INR1.2 million on net sales of
INR172.4 million for 2010-11.
MY FONE: CRISIL Assigns 'B+' Rating to INR50MM Cash Credit
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of My Fone Teleservices Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable (Assigned)
The rating reflects the company's modest scale of operations in
the intensely competitive mobile phone distribution business,
working-capital-intensive nature of operations and weak financial
risk profile marked by a modest net worth, a high total outside
liabilities to tangible net worth (TOL/TNW) ratio and subdued debt
protection metrics. These weaknesses are partially offset by the
extensive experience of MFTPL's promoters in dealership business.
Outlook: Stable
CRISIL believes that MFTPL will maintain its stable business risk
profile over the medium term, backed by its promoters' extensive
experience in mobile phones dealership business. The outlook may
be revised to 'Positive' if the company reports a significant and
sustained growth in its revenues and profitability while improving
its capital structure. Conversely, the outlook may be revised to
'Negative' in case of significant decline in MFTPL's revenues and
margins or a substantial lengthening of its working capital cycle
leading to further deterioration of its financial risk profile.
MFTPL, incorporated in 2008 by Mr. Saurabh Garg and his family
members, is a distributor of mobile handsets and accessories
manufactured by Nokia India Private Limited and computers and
laptops of HCL Technologies Ltd. for the Bhopal region of Madhya
Pradesh.
MFTPL reported a profit after tax (PAT) of INR0.2 million on net
sales of INR337 million for 2011-12 (refers to financial year,
April 1 to March 31), as against a PAT of INR1.1 million on net
sales of INR385.6 million for 2010-11.
PIYUSH OVERSEAS: CRISIL Assigns 'B' Ratings to INR59.7MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Piyush Overseas Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 39.7 CRISIL B/Stable (Assigned)
Bank Loan Facility
Letter of Credit 15.0 CRISIL A4 (Assigned)
Foreign Bill Purchase 5.0 CRISIL A4 (Assigned)
Export Packing Credit 20.0 CRISIL A4 (Assigned)
Bank Guarantee 0.3 CRISIL A4 (Assigned)
Cash Credit 20.0 CRISIL B/Stable (Assigned)
The ratings reflect POPL's small scale of operations in the
fragmented ready-made garments (RMG) industry, its below-average
financial risk profile, marked by high gearing and weak debt
protection metrics, and its working-capital-intensive operations.
These rating weaknesses are partially offset by the extensive
experience of POPL's promoters in the RMG business and funding
support extended by them.
Outlook: Stable
CRISIL believes that POPL will continue to benefit over the medium
term from its promoters' extensive experience in the RMG industry.
The outlook may be revised to 'Positive' if the company scales up
its operations significantly while improving its profitability,
resulting in higher-than-expected cash accruals, or its capital
structure improves because of infusion of sizable fresh capital by
the promoters. Conversely, the outlook may be revised to
'Negative' in case of further deterioration in POPL's financial
risk profile, especially its liquidity, most likely caused by
lower cash accruals, larger-than-expected working capital
requirements, or large debt-funded capital expenditure.
POPL incorporated in 2005, was promoted by Mr. Kamal Prakash Goyal
and his family members. The company manufactures garments, mainly
T-Shirts, jackets, and pyjamas, and knitted cloth. Its
manufacturing facility is at Ludhiana (Punjab).
For 2011-12 (refers to financial year, April 1 to March 31), POPL
reported a profit after tax (PAT) of INR 4.25 million on net sales
of INR300.0 million, against a PAT of INR3.05 million on net sales
of INR242.6 million for 2010-11.
S B IMPEX: CRISIL Upgrades Ratings on INR50MM Loans to 'B+'
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
S B Impex to 'CRISIL B+/Stable' from 'CRISIL B/Stable', and has
reaffirmed its rating on the firm's short-term bank facilities at
'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Export Packing Credit 40 CRISIL A4 (Reaffirmed)
Proposed Long-Term 2.5 CRISIL B+/Stable (Upgraded
Bank Loan Facility from 'CRISIL B/Stable')
Term Loan 17.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
The rating upgrade reflects improvement in SBIMP's business risk
profile, marked by significant increase in the firm's scale of
operations, supported by the execution of more-than-expected
export orders by the firm due to expanded network of clients in
countries such as Indonesia, Malaysia, Brazil, and Vietnam. The
rating upgrade also reflects the expected improvement in liquidity
on account of proposed enhancement of bank lines to fund the
firm's incremental working capital requirements. Further, the
absence of any major debt-funded capital expenditure over the
medium term also lends comfort.
The ratings continue to reflect SBIMP's weak financial risk
profile, marked by a high total outside liabilities to tangible
net worth ratio and a small net worth, and constrained financial
flexibility on account of large working capital requirements.
These rating weaknesses are partially offset by the extensive
experience of SBIMP's partners in the tobacco industry.
Outlook: Stable
CRISIL believes that SBIMP will continue to benefit over the
medium term from its partners' extensive industry experience. The
outlook may be revised to 'Positive if the firm significantly
improves its revenues and profitability, while it improves its
capital structure. Conversely, the outlook may be revised to
'Negative' if SBIMP's working capital cycle lengthens because of
delay in realization of bills, or if the firm's capital structure
deteriorates on account of large-than-expected debt-funded capital
expenditure, or if its profitability declines substantially,
leading to further weakening of its financial risk profile.
SBIMP was set up as a partnership firm in 2008 in Guntur (Andhra
Pradesh). The firm exports tobacco, mainly of the flue-cured
virginia and burley varieties. SBIMP is currently being managed by
Mr. S Ramprasad and his son, Mr. S Hemanth. Mr. S Ramprasad has
nearly four decades of experience in the tobacco industry.
S K TRANSLINES: CRISIL Assigns 'B+' Ratings to INR80MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of S K Translines Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 20 CRISIL B+/Stable (Assigned)
Bank Guarantee 30 CRISIL A4 (Assigned)
Cash Credit 60 CRISIL B+/Stable (Assigned)
The ratings reflect SKTPL's average financial risk profile, marked
by a small net worth, high gearing, and moderate debt protection
metrics, and modest scale of operations in the highly fragmented
and competitive freight transport industry. These rating
weaknesses are partially offset by the extensive experience of
SKTPL's promoters in the freight transport industry and its
established relationship with customers.
Outlook: Stable
CRISIL believes that SKTPL will continue to benefit over the
medium term from its promoters' extensive industry experience in
the freight transportation business. The outlook may be revised to
'Positive' if the company reports significant and sustained growth
in revenue and profitability, leading to improvement in its
overall financial risk profile, particularly its liquidity.
Conversely, the outlook may be revised to 'Negative' if there is
significant decline in SKTPL's accruals or deterioration in its
working capital management, or if the company undertakes a large,
debt-funded, capital expenditure programme, resulting in
deterioration in its financial risk profile.
Established as a proprietorship firm under the name S K Transport
Company in 1988 by Mr. Kantilal Kothari, the entity was
reconstituted as a private limited company in 2004 under the name
SKTPL. Mr. Kantilal Kothari is the chairman and the directors on
board include his sons, Mr. Hemant Kothari and Mr. Ujwal Kothari.
The company provides freight transportation services to companies
in various industries, such as pharmaceuticals, fast-moving
consumer goods, lubricants, and white goods across India.
For 2011-12 (refers to financial year, April 1 to March 31), SKTPL
reported, profit after tax (PAT) of INR0.3 million on net sales of
INR410.0 million against a PAT of INR8.2 million on net sales of
INR325.0 million for 2010-11.
THERELEK ENGINEERS: CRISIL Puts 'BB-' Rating on INR122.3MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Therelek Engineers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 32.3 CRISIL BB-/Stable (Assigned)
Letter of Credit 50.0 CRISIL A4+ (Assigned)
Bank Guarantee 30.0 CRISIL A4+ (Assigned)
Cash Credit 90.0 CRISIL BB-/Stable (Assigned)
The ratings reflect extensive experience of TEPL's promoter in the
manufacturing of high temperature furnaces and its diverse end-
user industry base. These rating strengths are partially offset by
TEPL's below-average financial risk profile, marked by high
gearing and moderate debt-protection metrics, and its working-
capital-intensive operations.
Outlook: Stable
CRISIL believes that TEPL will benefit over the medium term from
its promoters' longstanding experience in manufacturing furnaces
and its vast customer base. The outlook may be revised to
'Positive' if TEPL significantly increases its scale of operations
and operating profitability, resulting in improvement in its cash
accruals and capital structure. Conversely, the outlook may be
revised to 'Negative' if the company's profitability margins or
cash accruals decline, or if it undertakes a large, debt-funded
capital expenditure programme, leading to deterioration in its
financial risk profile.
Established in 1981 and based out of Bangalore, TEPL manufactures
high-capacity, heat-treatment furnaces, ovens and related
products.
TEPL reported a profit after tax (PAT) of INR7.6 million on net
sales of INR269.9 million for 2011-12 (refers to financial year,
April 1 to March 31), against a PAT of INR5.6 million on net sales
of INR211.3 million for 2010-11.
=================
I N D O N E S I A
=================
INDIKA ENERGY: Total SA Stake Purchase No Impact on Fitch Ratings
-----------------------------------------------------------------
Fitch Ratings has said that PT Indika Energy Tbk's (B+/Positive)
ratings are not immediately affected by its proposal to acquire a
10% stake in an oil field operated by Total SA (AA/Stable). This
is because the upfront investment and initial exploratory costs
over the next two years are not material in relation to the cash
generation of Indika.
As a result there is no immediate impact on Indika's financial
profile or on Fitch's expectation of Indika's deleveraging over
the next 12 to18 months, which underpin the Positive Outlook on
its rating.
Initial exploratory work on the field is expected to commence in
Q213. Material investments are unlikely to be required before
completion of an assessment of the field's commercial viability,
which is expected to be completed in 2014. Any additional
investments that follow will require Indika to contribute as per
its interest in the concession. Although the company has no prior
direct experience in oil & gas exploration, production and
development, Total SA's involvement as the main shareholder as
well as operator of the asset materially reduces execution risks.
Indika's rating reflects strong dividend inflows from its 46%-held
PT Kideco Jaya Agung, the third-largest coal producer in Indonesia
and increasing earnings contribution from Indika's other coal-
related operations such as contract mining and logistics as well
as from its engineering, procurement and construction business.
The rating may be upgraded if its financial leverage, as measured
by adjusted debt net of cash/operating EBITDAR, falls below 1.5x
on a sustained basis.
====================
S O U T H K O R E A
====================
SSANGYONG ENG'G: Files For Debt Workout Program
-----------------------------------------------
Yonhap News reports that Ssangyong Engineering & Construction Co.,
filed for a debt workout program on Tuesday as part of its efforts
to get back on its feet again amid a cash crunch, a company
official said.
The move came days after the builder said its capital had been
wiped out due to massive losses for the second consecutive year in
2012 amid the country's protracted housing market slump, according
to the news agency.
"We sent an official document to Woori Bank, the main creditor
bank," a Ssangyong E&C official told Yonhap. He expressed
confidence that the debt workout program would pave the way for
the normalization of his company. He asked not to be identified,
citing policy.
According to Yonhap, the builder said in a regulatory filing that
its request for creditor banks' joint management is designed "to
improve its financial structure and normalize its management."
Ssangyong E&C could be placed in a debt workout program again if
75% of Woori Bank and other creditor banks agree with the request,
the report notes. The former construction arm of the now-defunct
Ssangyong Group was released from a separate creditor-led debt
workout program in 2004.
Based in Seoul, Korea, Ssangyong Engineering & Construction Co.,
Ltd. -- http://www.ssyenc.com/eng/-- is involved in the areas of
construction and engineering.
* One Out of 3 Listed S. Korean Builders Suffer Losses in 2012
--------------------------------------------------------------
Yonhap News reports that one out of three listed South Korean
construction companies lost money in 2012, data showed Tuesday, in
the latest sign of deepening woes of local builders struggling to
weather a prolonged property market slump.
According to the data by the Financial Supervisory Service and
online financial information provider Fn Guide, 15 out of 42
listed builders that released earnings statements for the full
year of 2012 were in the red, Yonhap relays.
====================
N E W Z E A L A N D
====================
SOLID ENERGY: In talks With Banks as Debts Balloon to NZ$389MM
--------------------------------------------------------------
press.co.nz reports that the depth of Solid Energy's financial
woes have been laid bare with the Government confirming the
company is in talks with bankers over its debt levels.
According to the report, Finance Minister Bill English said the
Solid Energy board was working with Treasury, advisors and the
banks about further restructuring options, with the aim of
returning the company to a sustainable financial position.
"Despite restructuring, Solid Energy's financial position has
continued to deteriorate. It is in constructive discussion with
banks," press.co.nz quotes Mr. English as saying.
He confirmed there had been differences of opinion for some time
over the direction of the company, whose chief executive resigned
earlier this month, the report relays.
"There will be the opportunity for us to go back and look pretty
hard at the governance and the monitoring."
Mr. English said the Government would not let the company go into
receivership, press.co.nz relates.
He would not directly answer questions about a taxpayer-funded
bailout, but would not rule it out, the report notes.
According to the report, the problems became clear when the
company was placed under "close scrutiny" as preparations for
mixed ownership model.
press.co.nz relates that state-owned Enterprises Minister Tony
Ryall said a number of factors had weighed against the company, in
particular world coal prices dropping by 40%.
"It is facing very serious financial challenges," Mr. Ryall said.
Solid Energy's debt stands at $389 million and its interim result,
which is due shortly, will show additional losses.
Prime Minister John Key earlier said it was very unlikely Solid
Energy would be sold in the near future, the report adds.
Job Cuts at West Coast
Meanwhile, stuff.co.nz reports that Solid Energy's financial
crisis threatens further pain for a struggling West Coast, where
mining is one of its biggest industries.
Late last year, stuff.co.nz recalls, the company shed 450 staff,
including mothballing Spring Creek Mine, near Greymouth, and
making about 220 people redundant.
About 70 contracting jobs were also cut in September at Stockton,
New Zealand's biggest opencast mine, near Westport, the report
says.
Pike River coalmine's November 2010 blast killed 29 men and caused
job losses for about 150 workers at the underground mine inland
from Greymouth.
According to stuff.co.nz, Grey District Mayor Tony Kokshoorn said
Solid Energy's downfall was a harsh blow after a dire 2 years for
the West Coast mining industry.
"Everything has come together for the perfect storm for us. Now we
have got the collapse of Solid Energy, which is hanging the axe
over the West Coast again. We are at a low ebb," stuff.co.nz
quotes Mr. Kokshoorn as saying.
Solid Energy's new chairman, Mark Ford, warned him a few weeks ago
the company was in serious trouble but indicated three parties
wanted to buy into it, adds stuff.co.nz.
About Solid Energy
Solid Energy New Zealand Ltd is a state-owned coal mining company
and an investor in research and commercialisation of sustainable
forms of energy that use coal, coal seam gas, biomass, biodiesel
and solar. The Company's core mining business includes hard
coking coal, primarily for export to steel mills throughout Asia,
and thermal coal for the Huntly power station and other domestic
customers in the steel, dairy and cement industries.
=====================
P H I L I P P I N E S
=====================
ALBAY ELECTRIC: Avoids Bankruptcy as Firm Set to be Privatized
--------------------------------------------------------------
BusinessMirror reports that the Albay Electric Cooperative (Aleco)
is finally heading for privatization in an effort to save the
country's second-biggest power cooperative from total collapse.
But the local Justice Retribution Restitution Coalition (JRRC)
cried foul, saying the privatization efforts are the brainchild of
a few people in the government, the report says.
BusinessMirror notes that JRRC is backed by professionals and
businessmen against the National Electrification Administration
(NEA) and Aleco abuses. JRRC President Melvin Romano said it had
written President Benigno Aquino requesting for a dialogue to
prevent the privatization, the report relays.
According to the report, Aleco-NEA appointed General Manager Rey
Reverente would not answer calls and text messages for
confirmation but Aleco Employees Union President Dexter Brutas was
quoted by JRRC officials as saying that Aleco-NEA executives have
begun ironing out the privatization program in apparent consent of
the Aleco interim board of directors headed by Legazpi Diocese
Bishop Joel Baylon.
BusinessMirror relates that JRRC Vice President and former Albay
Vice Gov. James Calisin said the issue of privatizing Aleco was
earlier raised by Gov. Joey Sarte Salceda in 2010 after the NEA
and the National Power Corp. (Napocor) managed the rehabilitation
of Aleco in 2007 and in 2008-2009. The Albay governor eventually
rated the performance poor. The privatization proposal, however,
was outright rejected by the Church and multisectoral groups.
A Church-led Aleco crisis management committee was created in
early 2011 when the consumer-elected Aleco board of directors was
forced by Mr. Salceda to resign as a condition for NEA to take
over control of Aleco, BusinessMirror recalls. Early last year,
however, the Church-led committee was abolished in favor of a
newly created interim appointed board of directors headed by
Bishop Baylon.
JRRC officers said Aleco and the NEA prepared the terms of
reference for the privatization, the report relates.
BusinessMirror states that among the developments in Aleco under
NEA management was the creation of the Special Payment Arrangement
(SPA) of 10% in consumers' monthly billings started in 2011 to
raise funds for the settlement of the now
PHP1.3-billion account from power generators. The report
discloses that Aleco debts stand at close to PHP4 billion, with
consumers complaining of frequent brownouts, high-system losses,
padded billing and constant threat of power cut-off due to failure
to settle power bills from the Wholesale Electric Spot Market
(WESM). The SPA, according to JRRC, was rejected by the Energy
Regulatory Commission (ERC) but collections continue as shown in
the consumers' monthly billings. The SPA ends in December 2014.
Several JRRC officers who requested anonymity told the
BusinessMirror they believe Aleco can still recover as a viable
cooperative if it is managed correctly. They said the NEA could
not even liquidate the PHP250-million Calamity Assistance
Rehabilitation Efforts (CARE) spent for Aleco's rehabilitation in
2007 after Aleco was devastated by Typhoon Reming in
November 2006.
Aleco earlier faced disconnection of power supply from the main
grid due to its failure to meet its financial obligations with
Philippine Electricity Market Corp., the spot market's operator,
and the National Grid Corp. of the Philippines, the private
company running the country's power transmission highways,
philstar.com reports.
To help the utility improve operations as well as negotiate with
power suppliers, NEA, which administers electric cooperatives with
financial, technical and institutional concerns, took over Aleco
in February this year.
Albay Electric Cooperative distributes electricity to the entire
province of Albay, Philippines.
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
Apr. 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Spring Conference
JW Marriott Chicago, Chicago, Ill.
Contact: http://www.turnaround.org/
Apr. 18-21, 2013
AMERICAN BANKRUPTCY INSTITUTE
Annual Spring Meeting
Gaylord National Resort & Convention Center,
National Harbor, Md.
Contact: 1-703-739-0800; http://www.abiworld.org/
June 13-16, 2013
AMERICAN BANKRUPTCY INSTITUTE
Central States Bankruptcy Workshop
Grand Traverse Resort, Traverse City, Mich.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 11-13, 2013
AMERICAN BANKRUPTCY INSTITUTE
Northeast Bankruptcy Conference
Hyatt Regency Newport, Newport, R.I.
Contact: 1-703-739-0800; http://www.abiworld.org/
July 18-21, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southeast Bankruptcy Workshop
The Ritz-Carlton Amelia Island, Amelia Island, Fla.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 8-10, 2013
AMERICAN BANKRUPTCY INSTITUTE
Mid-Atlantic Bankruptcy Workshop
Hotel Hershey, Hershey, Pa.
Contact: 1-703-739-0800; http://www.abiworld.org/
Aug. 22-24, 2013
AMERICAN BANKRUPTCY INSTITUTE
Southwest Bankruptcy Conference
Hyatt Regency Lake Tahoe, Incline Village, Nev.
Contact: 1-703-739-0800; http://www.abiworld.org/
Oct. 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
TMA Annual Convention
Marriott Wardman Park, Washington, D.C.
Contact: http://www.turnaround.org/
Nov. 1, 2013
AMERICAN BANKRUPTCY INSTITUTE
NCBJ/ABI Educational Program
Atlanta Marriott Marquis, Atlanta, Ga.
Contact: 1-703-739-0800; http://www.abiworld.org/
Dec. 2, 2013
BEARD GROUP, INC.
19th Annual Distressed Investing Conference
The Helmsley Park Lane Hotel, New York, N.Y.
Contact: 240-629-3300 or http://bankrupt.com/
Dec. 5-7, 2013
AMERICAN BANKRUPTCY INSTITUTE
Winter Leadership Conference
Terranea Resort, Rancho Palos Verdes, Calif.
Contact: 1-703-739-0800; http://www.abiworld.org/
*********
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, Psyche A. Castillon, 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 ***