/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130304.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, March 4, 2013, Vol. 16, No. 44 Headlines A U S T R A L I A BASACAR PRODUCE: To be Placed Into Liquidation PINNACLE AND PANORAMA: In Receivership, Apartments for Tender TGHA AVIATION: Receiver Puts Jet & Helicopter Up For Sale C H I N A CHINA FISHERY: S&P Puts 'B+' CCR on CreditWatch Negative YANLORD LAND: Moody's Changes Outlook to Stable; Keeps CFR at Ba3 H O N G K O N G ABAXS LIMITED: Creditors to Get 100% Recovery on Claims AP FAR EAST: Philip Brendan Gilligan Steps Down as Liquidator BANDAI ASIA: Members' Proofs of Debt Due March 22 CHINA VALUE: Creditors' Proofs of Debt Due March 22 ELITE JOY: Members' Final Meeting Set for March 22 MAX SMART: Court Enters Wind-Up Order MOULIN GLOBAL: Creditors Get 2.0% Recovery on Claims MUCH EVER: Court Enters Wind-Up Order PET CLUB: Court Enters Wind-Up Order REDINE (HK): Court Enters Wind-Up Order VAUGHN COMPANY: Court Enters Wind-Up Order WAY AND FUNG: Court to Hear Wind-Up Petition on April 10 WORLDCODE INVESTMENTS: Court Enters Wind-Up Order I N D I A CHAWLA IRON: ICRA Assigns 'B+' Ratings to INR8cr Loans HARIKISHAN TEJMAL: ICRA Rates INR10cr Loans at '[ICRA]B+' MATRIX MEDITEC: ICRA Assigns 'B+' Ratings to INR6.5cr Loans OM GINNING: ICRA Assigns 'B+' Rating to INR6cr Long-Term RP MULTIMETALS: ICRA Cuts Ratings on INR10cr Loan to 'B+' SATANI FORGE: ICRA Assigns 'B+' Ratings to INR9.08cr Loans SHAKTI SUGAR: ICRA Reaffirms 'B+' Ratings on INR20.26cr Loans SHRI BALAJI: ICRA Assigns 'B+' Rating to INR6cr Long Term Loan TIRUPATI COLD: Delays in Loan Payment Cue ICRA to Junk Ratings J A P A N ELPIDA MEMORY: Tokyo Court Approves Micron Acquisition Deal G.K. L-JAC4: S&P Raises Rating on Class B-2 Bonds to 'B+ M O N G O L I A MONGOLIAN MINING: Moody's Lowers CFR and Sr. Bond Ratings to B2 N E W Z E A L A N D MAINZEAL PROPERTY: Placed in Liquidation - - - - - ================= A U S T R A L I A ================= BASACAR PRODUCE: To be Placed Into Liquidation ---------------------------------------------- Emily Prain at News Mail reports that Basacar Produce Pty Ltd will be placed into liquidation after its owners failed to make payments under a deed of company arrangement. News Mail says the arrangement meant the company's directors, Ayhan and Zubeyde Basacar, were to pay AUD400,000 over 24 months so creditors could receive a dividend. "They failed to pay the instalment for February and, on that basis, I'm calling a meeting to put (the company) into liquidation," the report quotes Vincent's Chartered Accountants administrator Peter Dinoris as saying. "They are both now bankrupt." A creditors meeting will be held at Across the Waves at 11:00 a.m. on March 7, where Basacar Produce is likely to be liquidated, the report relays. According to News Mail, Mr. Dinoris confirmed they had moved to Brisbane while the whereabouts of the Basacars since the company went into receivership in April last year have remained unknown, according to the report. News Mail relates that Mr. Dinoris said he had been in contact with them, and had been told the Basacars were not in a position to continue making payments. The fourth report to creditors, which was issued on February 27, said the Basacars were declared bankrupt in November 2012, the report adds. 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, 2012. 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. PINNACLE AND PANORAMA: In Receivership, Apartments for Tender ------------------------------------------------------------- The Morning Bulletin reports that Pinnacle and Panorama have gone into receivership, placing 14 luxury CBD apartments up for tender. The Pinnacle and Panorama Apartments, in Cliff St., include eight standard apartments, dual-level townhouses, one sub-penthouse and two penthouses up for sale, according to The Morning Bulletin. The report notes that an unnamed industry source said the project had been planned and designed six years ago, during the property boom and prior to the global financial crisis. "Raw costs and site costs were more expensive then," the report quoted the source as saying. The report recalls that originally marketed in 2010, Pinnacle and Panorama were pitched at the upper end of the market and a three- bedroom penthouse apartment sold for an undisclosed figure, well over $2 million. The report relates that three years later, the unit blocks were marketed as a combination of "luxury, striking design, quality extras and a spectacular location". Ray White Commercial in conjunction with One Real Estate is marketing the properties on behalf of receivers and managers, McGrath Nicol. Expressions of interest in the two neighbouring properties are being received until March 26. TGHA AVIATION: Receiver Puts Jet & Helicopter Up For Sale --------------------------------------------------------- Adelaide Now reports that Nathan Tinkler's executive jet and helicopter have been put up for sale by the receiver of the coal baron's aviation company. According to the report, Mr. Tinkler's luxury Dassault Falcon 900C executive jet was placed on the market on March 1 with an advertised price of US$13.95 million (AUD13.73 million), while the eight-seater Augusta A109S helicopter has been listed for US$5.95 million (AUD5.86 million). Adelaide Now relates that receiver Nathan Landrey, of Taylor Woodings, said the listings were standard practice in the receivership process and did not prevent Mr. Tinkler from refinancing the aircraft mortgages. "(Mr. Tinkler) has that option right up until we complete a sale," the report quotes Mr. Landrey as saying. "Because they are not distressed assets there is no defined deadline (for the sale). There is the opportunity for the existing borrower to arrange refinancing." The three-engined Dassault jet's features include leather upholstery, three separate seating areas accommodating 14 people, gold plating on fixtures and a galley espresso machine, according to a listing on the website of US aircraft sales company Avpro, the report adds. Taylor Woodings was appointed as receiver of TGHA Aviation in November, 2012, as Mr. Tinkler's business empire faced mounting debt pressures. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 12, 2012, smh.com.au related that former billionaire Nathan Tinkler's legal battles continue, with the ATO confirming it will seek to wind up one of his main private entities, Tinkler Group Holdings Administration, over unspecified debts. Two of Mr. Tinkler's companies, Mulsanne Resources and Patinack Farm Administration, are in liquidation and another, TGHA Aviation, is in receivership. The ATO has also filed wind-up proceedings against Queen St Capital. ========= C H I N A ========= CHINA FISHERY: S&P Puts 'B+' CCR on CreditWatch Negative -------------------------------------------------------- Standard & Poor's Ratings Services said it placed its 'B+' long- term corporate credit rating on China Fishery Group Ltd. and the 'B+' issue rating on the company's senior unsecured notes on CreditWatch with negative implications. At the same time, S&P placed its 'cnBB-' long-term Greater China regional scale rating on China Fishery and on the notes on CreditWatch with negative implications. China Fishery is a fishing company with operations in Russian and Peruvian waters. "China Fishery's proposed takeover of fishmeal producer Copeinca ASA appears an aggressive move to us. We require more clarity over the bid, particularly about the final financing structure," said Standard & Poor's credit analyst Lillian Chiou. In addition, the credit profiles of China Fishery's parents have weakened, constraining the rating on the company. "China Fishery and its parent companies are likely to face higher liquidity and refinancing risks in the next 12 months. Our view reflects the group's large cash outlay, its very low cash position, and weak funds from operations," said Ms. Chiou. Positively, S&P believes the Copeinca acquisition could strengthen China Fishery's "weak" business risk profile. The company's market position could improve if its combined fishing quota increases in Peru. The acquisition of Copeinca would also give China Fishery access to a listed entity for its growing Peruvian fishmeal operations. S&P aims to resolve the CreditWatch placement within the next three months. In resolving the CreditWatch, S&P will focus on: (1) whether the proposed acquisition will proceed and, if so, how it will be financed; and (2) how the operational and liquidity positions will evolve for China Fishery and its parent companies. S&P could lower the rating by one or more notches if it believes China Fishery's liquidity position or financial leverage in the next 12 months will deteriorate substantially and the company will have insufficient cash sources to meet its obligations. The liquidity position and operating performances of PARD and PAIH could also constrain the rating on China Fishery. S&P could affirm the rating if it believes the operating performances of China Fishery and its parent companies can improve, so that financial leverage at PAIH will fall and remain below S&P's downgrade trigger of a total debt-to-EBITDA ratio of 6.0x. In addition, S&P could affirm the rating if the proposed acquisition doesn't drain China Fishery's financial resources and liquidity. YANLORD LAND: Moody's Changes Outlook to Stable; Keeps CFR at Ba3 ----------------------------------------------------------------- Moody's Investors Service has changed Yanlord Land Group Ltd's ratings outlook to stable from negative. At the same time, Moody's has affirmed Yanlord's Ba3 corporate family and B1 senior unsecured debt ratings. Ratings Rationale: "The change in Yanlord's ratings outlook reflects improved sales execution and better-than-expected results during the down-market which prevailed in 2012," says Lina Choi, a Moody's Vice President and Senior Analyst. Yanlord's 2012 contract sales of RMB11.9 billion met its 2012 target of RMB12 billion, indicating that the company has recovered from a period of weak contract sales. Yanlord's turnaround can be attributable to (1) the increase in its inventory of small- and medium-sized products to address demand from the mass market and home buyers looking to upgrade their residences; (2) the easing in bank credit to property purchasers; (3) its good quality products; and (4) its pricing flexibility. Moody's expects Yanlord will continue to achieve moderate sales growth in 2013, based upon a stable environment. But its EBITDA margins will remain in the 30% - 35%, which is lower than the 50% achieved in 2010 or earlier. This is because regulatory measures have led Yanlord to change its business model. "Another favorable development is the improvement in Yanlord's liquidity profile. It has monetized more inventory on-hand which has, in turn, resulted in higher cash inflow," adds Choi, who is also Moody's lead analyst for Yanlord. Yanlord's cash-on-hand of around RMB3.5 billion, together with Moody's estimated presale proceeds of around RMB 12 billion, will more than cover its maturing short-term debt of around RMB2.7 billion and committed land payments of RMB1 billion in the next 12 months. "The change in outlook also recognizes Yanlord's prudent approach to debt management," says Choi. In 2012, Yanlord reduced its total debt by RMB3.2 billion, which included paying down onshore debt and the convertible bond puttable on July 2012 of RMB1.4 billion. This action lowered its debt/total capitalization to around 33% in December 2012 from 41% in December 2011. Under this prudent approach to financial management, Moody's expects Yanlord's debt/capitalization to be at around 40% and its adjusted EBITDA interest coverage to be around 3.0x over the next 12 -- 18 months. Such credit metrics position the company in the Ba3 rating. In addition, Yanlord has become more cautious in land acquisitions. It will consider new acquisitions in locations where it has enjoyed good sales and where it has depleted its land bank. Yanlord's Ba3 corporate family rating continues to reflect its good branding, supported by high-quality properties that generate margins at the higher end of industry range. It also considers Yanlord's good ability to access the debt and capital markets and its history of raising equity to fund development. At the same time, its rating is constrained by (1) its sales concentration and exposure to Shanghai where regulatory measures have led to volatility in property sales; and (2) the fact that some of its inventory are deluxe residential products that need more time to sell. Upgrade pressure could emerge if the company: (1) demonstrates stable sales growth and substantially achieves its presales target; (2) maintains a prudent strategy on land acquisitions; (3) shows improvement in liquidity, and (4) achieves EBITDA/interest coverage above 3.0x--3.5x and maintains adjusted debt/capitalization below 50%, both on a sustained basis. On the other hand, downgrade pressure could arise if Yanlord: (1) fails to execute its sales plan; (2) shows increased liquidity risk due to the absence of proactive actions to refinance its short-term debt; or (3) aggressively acquires land funded by debt. Downgrade pressure could be indicated by EBITDA/interest under 2.0x for a sustained period. The principal methodology used in this rating was the Global Homebuilding Industry Methodology published in March 2009. Yanlord Land Group Limited is a property developer in China. It operates in the major cities of Shanghai, Suzhou, Shenzhen, Tianjin, Zhu Hai and Chengdu. It was established in 1993 and was listed on the Singapore Stock Exchange in 2006. ================ H O N G K O N G ================ ABAXS LIMITED: Creditors to Get 100% Recovery on Claims ------------------------------------------------------- Abaxs Limited, which is in liquidation, will declare dividend to its creditors on or after March 15, 2013. The company will pay 100% for preferential and 100% for ordinary claims. The company's liquidators are: Hou Chung Man Alan Chung Wah Tang 43/F, The Lee Gardens 33 Hysan Avenue Causeway Bay, Hong Kong AP FAR EAST: Philip Brendan Gilligan Steps Down as Liquidator ------------------------------------------------------------- Philip Brendan Gilligan stepped down as liquidator of AP Far East Limited on Feb. 14, 2013. BANDAI ASIA: Members' Proofs of Debt Due March 22 ------------------------------------------------- Members of Bandai Asia Co., Limited, which is in members' voluntary liquidation are required to file their proofs of debt by March 22, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 8, 2013. The company's liquidators are: Thomas Andrew Corkhill Iain Ferguson Bruce 8th Floor, Gloucester Tower Central, Hong Kong CHINA VALUE: Creditors' Proofs of Debt Due March 22 --------------------------------------------------- Creditors of China Value Investment Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 22, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 15, 2013. The company's liquidators are: Chan Chor Ming Raymond Or Wai Lin Winnie Room 1021, Sun Hung Kai Centre 30 Harbour Road Wanchai, Hong Kong ELITE JOY: Members' Final Meeting Set for March 22 -------------------------------------------------- Members of Elite Joy Limited, which is in members' voluntary liquidation, will hold their final meeting on March 22, 2013, at 10:00 a.m., at Room 2702-3, C.C. Wu Building, 302-8 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Ho Sun Fung Allan, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. MAX SMART: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on Aug. 21, 2012, to wind up the operations of Max Smart International Limited. The company's liquidators are Pang Yiu Kwong and Tso Yin Yee. MOULIN GLOBAL: Creditors Get 2.0% Recovery on Claims ---------------------------------------------------- Moulin Global Eyecare Holdings Limited, which is in liquidation, declared sixth Interim dividend to its creditors on or after Feb. 28, 2013. The company paid 2.0% for ordinary claims. The company's liquidators are: Roderick John Sutton John Howard Batchelor Level 22, The Center 99 Queen's Road Central, Central, Hong Kong MUCH EVER: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on Feb. 6, 2013, to wind up the operations of Much Ever Development Limited. The company's liquidator is Teresa S W Wong. PET CLUB: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on Feb. 6, 2013, to wind up the operations of Pet Club Limited. The company's liquidator is Teresa S W Wong. REDINE (HK): Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on Jan. 16, 2013, to wind up the operations of Redine (HK) Limited. The company's liquidators are Pang Yiu Kwong and Tso Yin Yee. VAUGHN COMPANY: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on Jan. 30, 2013, to wind up the operations of The Vaughn Company Limited. The company's liquidators are Pang Yiu Kwong and Tso Yin Yee. WAY AND FUNG: Court to Hear Wind-Up Petition on April 10 -------------------------------------------------------- A petition to wind up the operations of Way and Fung Investment 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 on Feb. 6, 2013. The Petitioner's solicitors are: Li & Partners 22/F, World-Wide House 19 Des Voeux Road Central, Hong Kong WORLDCODE INVESTMENTS: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Hong Kong entered an order on Dec. 5, 2012, to wind up the operations of Worldcode Investments Limited. The company's liquidators are Pang Yiu Kwong and Tso Yin Yee. ========= I N D I A ========= CHAWLA IRON: ICRA Assigns 'B+' Ratings to INR8cr Loans ------------------------------------------------------ ICRA has assigned '[ICRA]B+' rating to the INR8.0 crores fund based limits of Chawla Iron Traders Pvt. Ltd. The rating takes into account the highly competitive nature of the industry, which coupled with the low value additive nature of the business which has led to modest profitability for the company in the past. Moreover, the company remains exposed to cyclicality in the steel industry since the entire price variation risk is borne by the company. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits- 7.00 [ICRA]B+ assigned Cash Credit Fund Based Limits- 1.00 [ICRA]B+ assigned Stand by Line of Credit The ratings also factor in company's high reliance on external debt which has resulted in high gearing (2.33 times as on March 31, 2012) and high working capital intensity of the company. This coupled with modest profitability has resulted into low debt protection metrics of the company (NCA/TD of 2% and Interest coverage ratio of 1.28 times in FY12). Nevertheless, ratings derive some comfort from the significant increase in operating income of the company (CAGR of ~280%) in the last one year, equity infusion by the promoters (infusion of INR4.01 cr in FY11 and FY12) and established promoters of the company. Chawla Iron Traders Private Limited, incorporated in May 2009 is engaged in trading of iron and steel related products which find application mainly in construction and infrastructure companies. The company is promoted by Mr. Nitin Chawla, who has been engaged in the steel trading business since the last 10-12 years. The company has its warehouses in Mundka, Gurgaon and Naraina, Delhi with a total storage capacity of 5000-6000 tonnes. In January 2010, Chawla Steel Links (CSL; formed in 2006) and Chawla Steel Traders (CST; formed in 2008) were merged into CITPL. Both the firms are into same line of business and are family managed. Recent Results In FY12 results, CITPL reported net profit of INR0.07 crores on an operating income of INR39.38 crores as compared to net profit of INR0.02 crores on operating income of INR6.68 crores in FY11. HARIKISHAN TEJMAL: ICRA Rates INR10cr Loans at '[ICRA]B+' --------------------------------------------------------- ICRA has assigned the long term rating of '[ICRA]B+' to the INR10.00 crores fund based bank facilities of HariKishan Tejmal & Company. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits- 10.00 [ICRA]B+ assigned Cash Credit The assigned rating is constrained by weak profitability metrics at operating and net levels in its core business of agro processing, high gearing arising out of substantial debt funding of large working capital requirements coupled with weak coverage indicators. The rating also takes into account high intensity of competition in the agro processing industry and agro climatic risks, which can affect the availability of raw material in adverse weather conditions. The rating however, favorably takes into account long standing experience of promoters with strong relationships with several customers and suppliers and proximity of the mill to major agro product growing area which results in easy availability of wheat, dhania and other raw materials. Recent Results: HKTM reported a net profit of INR0.09 crores on an operating income of INR93.81 crores for the year ended March 31, 2012 and a net profit of INR0.07 crores on an operating income of INR81.16 crores for the year ended March 31, 2011. HariKishan Tejmal & Company was established in the year 2007 as a partnership firm with Mr. Tejmal Nyati, Brijraj Nyati & Rajesh Kumar Nyati as partners in equal ratio. Firm sells its product under the brand name of Banshi, Pepsi and Appu. Firm is engaged in the business of processing and trading of Wheat and Dhania. Firm is also engaged in the trading of other products like Chana, Gwar, Joo, Maize, Maithi etc. Firm sells its product only in the domestic market. Firm is having its manufacturing unit at Chittore Road, Bundi. MATRIX MEDITEC: ICRA Assigns 'B+' Ratings to INR6.5cr Loans ----------------------------------------------------------- A rating of '[ICRA]B+' has been assigned to INR1.00 crore term loans and INR5.50 crore cash credit facility of Matrix Meditec Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 1.00 [ICRA]B+ assigned Cash Credit 5.50 [ICRA]B+ assigned Letter of Credit 0.25 [ICRA]A4 assigned The assigned ratings take into consideration the modest scale of operation of MMPL with sales remaining stagnant over past three years and weak financial profile characterised by adverse capital structure and stretched liquidity position resulting from slow receivables and high inventory requirements. The ratings also incorporate the pressure on margins due to high competitive intensity arising from large players as well as the unorganized sector and susceptibility to raw material price fluctuations. The assigned ratings, however, derive comfort from the experience of promoters in the orthopedic implants industry, company's diverse product profile and a wide distribution cum marketing network across India. Matrix Meditec Private Limited was incorporated in 2004 by Mr. Vipul Sheth and Mr. Falgun Sheth to manufacture orthopedic implants. MMPL's plant is located at Changodar, District- Ahmedabd, Gujarat. The saleable products of the company includes plates, nails, screws, spine and allied orthopedic instruments which are used in trauma implants, spinal Implants and joint replacement implants. Mr. Vipul Sheth is also the director in Life Sight Surgicals Private Limited). LSSPL is C & F agent of ophthalmic surgical equipments and is also engaged in trading of Intraocular Lens. Recent Results For the year ended March 31, 2012, MMPL reported an op erating income of INR10.30 crore and profit after tax of INR0.36 crore. OM GINNING: ICRA Assigns 'B+' Rating to INR6cr Long-Term -------------------------------------------------------- ICRA has assigned the '[ICRA]B+' rating to INR6.00 crore long term fund based limits of Om Ginning and Pressing Factory. The rating factors in the long experience of promoters in the cotton industry and firm's proximity to cotton growing region of the country. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long term, fund based 6.00 [ICRA]B+ assigned Limits-Cash Credit The assigned rating also takes into account the stretched liquidity position of the firm characterized by high gearing levels and weak coverage indicators and moderate scale of operations. The firm is also exposed to adverse movements in cotton and lint prices which coupled with low value additive and seasonal nature of cotton ginning industry, keeps the profitability metrics and cash accruals at modest levels. Also being a partnership entity, any significant withdrawals from the capital account could affect its net worth and thereby its capital structure. Om Ginning and Pressing Factory, a partnership firm incorporated in 2007 promoted by Mr. Ashutosh Agarwal, Mr. Ashok Porwal, Mr. Pritam Bayas and Mr. Shankar Patil is involved in cotton ginning and pressing activity. The firm has its unit at Mhasawad; Dist.Jalgaon. The total processing capacity is 35,000 bales per annum. RP MULTIMETALS: ICRA Cuts Ratings on INR10cr Loan to 'B+' --------------------------------------------------------- ICRA has revised the rating assigned to INR10.00 crore Fund based limits of RP Multimetals Private Limited to '[ICRA]B+' from '[ICRA]BB-' on the long terms scale. ICRA has also reaffirmed the rating assigned to INR30.00 crore Non Fund Based Limits at '[ICRA]A4' on the short term scale. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 10.00 [ICRA]B+; revised from [ICRA]BB Non Fund Based Limits 30.00 [ICRA]A4; reaffirmed The rating revision takes into account a decline in profitability metrics of the company in FY 2011-12 and a significant increase in debt levels as reflected by increase in gearing to 4.24 times as on March 31, 2012, from 2.78 times as on March 31, 2011. The assigned ratings continue to factor in RPMPL's moderate scale of operations, its relatively low value additive nature of business and fragmented nature of steel products manufacturing industry, which have led to low operating margins and modest debt coverage indicators. The ratings also take into consideration the company's susceptibility to adverse movements in foreign exchange rates due to the large share of imports in raw material procurement. However, the ratings draw comfort from the long experience of promoters and strong relationship with its client base. The assigned ratings also positively factor in the favorable location of RPMPL's manufacturing unit which is in proximity to several rolling mills (key consumer of RPMPL's products). RPMPL is engaged in the manufacturing of steel ingots and steel billets & blooms at its manufacturing facility situated in Gobindhgarh, Punjab. The major raw materials used by the company are ferro alloys and scrap metal which are procured chiefly via imports. The steel ingots and billets/blooms manufactured by the company are primarily supplied to steel rolling mills present in Mandi Gobindgarh. RPMPL was established in the year 1999 and has an installed capacity of 66,600 MT per annum. In FY 2012, the company reported an operating income of INR188.28 crore and a profit after tax of INR0.81 crore SATANI FORGE: ICRA Assigns 'B+' Ratings to INR9.08cr Loans ---------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' to the INR4.58 crore Term Loans and INR4.50 crore Cash Credit facility of Satani Forge & Turn. ICRA has also assigned a short term rating of '[ICRA]A4' to the INR3.50 crore Letter of Credit facility (sublimit of cash credit) and the Rs.0.80 crore Bank Guarantee facility of SFT. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan 4.58 [ICRA]B+ assigned Cash Credit 4.50 [ICRA]B+ assigned Bank Guarantee 0.80 [ICRA]A4 assigned Letter of Credit (3.50) [ICRA]A4 assigned The assigned ratings are constrained by SFT's relatively small scale of operations, underutilized capacities given its location in a highly competitive auto component manufacturing region and vulnerability of its profitability to adverse fluctuations in raw material prices & to demand in cyclical automobile sector. The ratings are further constrained by weak financial profile of SFT as reflected by adverse capital structure and high working capital intensity of operations. The assigned ratings, however, favorably factor in the long experience of the promoters in the ceramic industry through associate concern 'Satani Industries', lower counterparty risks given its association with leading client 'National Engineering Industries Ltd' primarily servicing the automobile sector. Established in 2006, Satani Forge & Turn is a Rajkot based supplier of forged and machined components primarily to bearing manufacturers which includes taper, spherical, cylindrical and other types of bearings. SFT initially commenced commercial operations with job work for National Engineering Industries Ltd. (a part of C. K. Birla group), one of the pioneers and largest domestic bearing manufacturer supplying to automotive, railways and manufacturing industries in domestic and export markets. Currently, SFT undertakes both manufacturing and job work activities for NEIL and is an exclusive supplier to NEIL for 50 different components. The firm has an installed capacity of -7,500 MT per annum with its manufacturing facility located at Metoda (Dist: Rajkot). Recent Results For FY 2012, the firm reported profit after tax of INR0.73 crore on an operating income of INR15.35 crore as against profit after tax of INR0.17 crore on an operating income of INR7.25 crore for FY 2011. SHAKTI SUGAR: ICRA Reaffirms 'B+' Ratings on INR20.26cr Loans ------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]B+' to the INR9.00 crore fund based facilities, INR9.86 crore term loan and INR1.40 crore unallocated bank facilities of Shakti Sugar Mills Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Facilities 9.00 [ICRA]B+ reaffirmed Term Loan 9.86 [ICRA]B+ reaffirmed Unallocated Bank Facilities 1.40 [ICRA]B+ reaffirmed The assigned rating continues to be constrained by the modest operating profile of the company characterized by relatively small capacities and lack of forward integration into distilleries and cogeneration which makes the company's performance more vulnerable to vagaries of the sugar cycle. The rating also continues to factor in the vulnerability of the company's sugar business to agro-climatic risks affecting availability of sugarcane, inherent cyclicality in the sugar business and government/regulatory policies governing cane pricing, sugar release and pricing and off-take of by-products. Further, ICRA takes into consideration the company's leveraged capital structure as reflected in a high gearing of 4.37 times as on March 31, 2012. However, the assigned rating derives comfort from the long standing presence of NSPL's promoters in the sugar industry in Madhya Pradesh, linkage between sugar price and cane cost by virtue of being located in an FRP state and satisfactory profitability indicators over the last five years. SSMPL was incorporated in 2008 as a 1250 tcd sugar manufacturing unit. The company has since expanded its crushing capacity to 1500 tcd by 2012. The mill has a 2 MW captive power generation capacity which it fuels using bagasse generated in the sugar production. The unit commenced commercial operations in November 2009. The company is one of the three sugar mills belonging to the Maheshwari Group of companies based in Madhya Pradesh. The group also engages in trading of grains through its other set ups. The sugar mills namely Ramdev Sugars Pvt. Ltd, Narmada Sugars Pvt. Ltd and Shakti Sugar Mill Pvt. Ltd with a total crushing capacity of 6,500 tcd are all located in the fertile areas of Narsinghpur and Hoshangabad districts of central MP where the climatic conditions are fairly viable and irrigation is primarily through tube wells. The group is held by two brothers namely Mr. Navneet Lal Maheshwari and Mr. Rajesh Maheshwari. In FY 2011-12, SSMPL reported an operating income of INR29.61 crore and a profit after tax of INR0.48 crore. SHRI BALAJI: ICRA Assigns 'B+' Rating to INR6cr Long Term Loan -------------------------------------------------------------- ICRA has assigned the '[ICRA]B+' rating to INR6.00 crore long term fund based limits of Shri Balaji Ginning Factory. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long term, fund based 6.00 [ICRA]B+(assigned) limits-Cash Credit The rating favorably factors in easy availability of raw cotton on back of favorable location and vast experience of the promoters in the cotton ginning industry. The rating is however constrained by low profit margins inherent in the cotton ginning industry, stretched capital structure of the firm due to working capital intensive operations and small scale of operations. ICRA also takes note of vulnerability associated with agro climatic conditions and regulatory environment which has direct bearing on capacity utilization and profitability of the firm. SBGF was started by Mr. Ashok Goyanka in 2004 and is involved in Ginning, Pressing cotton and crushing of cotton seeds. The firm's manufacturing facility is located in Hinganghat in Wardha district. The plant has 36 gins with annual capacity of 60000 bales. TIRUPATI COLD: Delays in Loan Payment Cue ICRA to Junk Ratings -------------------------------------------------------------- ICRA has assigned an '[ICRA]D' rating to the INR4.50 crore cash credit facility, INR0.75 crore working capital limits, INR0.36 crore working capital term loan, INR0.12 crore bank guarantee limits and INR1.27 crore unallocated bank limits of Tirupati Cold Storage Pvt. Ltd. TCSPL's unallocated bank limits are entirely interchangeable between long term and short term, for which ICRA has assigned an '[ICRA]D' rating. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 4.50 [ICRA]D Assigned Working Capital 0.75 [ICRA]D Assigned Working Capital Term 0.36 [ICRA]D Assigned Loan Bank Guarantee 0.12 [ICRA]D Assigned Unallocated 1.27 [ICRA]D Assigned The ratings take into consideration recent delays in servicing of debt obligations by TCSPL, company's weak financial profile with nominal profits, high gearing and weak debt coverage indicators, high working capital intensity leading to stretched liquidity position and small scale of operations with a single cold storage unit. The ratings take into account TCSPL's exposure to agro- climatic risks, with its business performance being entirely dependent upon a single agro commodity, i.e. potato, counter party risk arising from loans extended to farmers by TCSPL, which may lead to delinquency, if potato prices fall to a low level and the regulated nature of the industry, making it difficult to pass on the increase in the operating costs in a timely manner, leading, in turn, to a downward pressure on profitability. The ratings take into account the long track record of the promoters in the cold storage business, and the locational advantage of TCSPL by way of presence of its cold storage unit in West Bengal, a state with large potato production. TCSPL operates one cold storage unit at Memari, in the Burdwan district of West Bengal with annual storage capacity of around 19,500 tonnes. The company is primarily engaged in the business of storage and preservation of potatoes for farmers. Recent Results TCSPL reported a net profit of INR0.15 crore during FY12 on an OI of INR2.03 crore as against a net profit of INR0.12 crore and an OI of INR1.87crore during FY11. ========= J A P A N ========= ELPIDA MEMORY: Tokyo Court Approves Micron Acquisition Deal ----------------------------------------------------------- Reuters reports that Micron said the Tokyo district court issued an order approving its acquisition of Japanese memory chipmaker Elpida after creditors agreed to the plan. According to the news agency, Micron, which is losing money due to a crumbling PC industry, wants to create larger economies of scale and offered in July to buy Elpida for about $750 million in cash and to pay creditors a total of $1.75 billion in annual installments through 2019. Reuters says Elpida's creditors voted to approve the deal on Feb. 26, 2013. In October, the report recalls, the Tokyo court referred the reorganization plan to creditors for approval after it dismissed a rival proposal promoted by a group of bondholders led by hedge funds Linden Advisors, Owl Creek Asset Management and Taconic Capital Advisors. Micron said finalization of the approval order could come with four weeks, presuming no appeal is filed, Reuters relates. Micron and Elpida also need approval from the U.S. Bankruptcy Court in Delaware, where the opposed bondholders have shifted their fight, Reuters adds. About Elpida Memory Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. G.K. L-JAC4: S&P Raises Rating on Class B-2 Bonds to 'B+ -------------------------------------------------------- Standard & Poor's Ratings Services said that it has raised to 'B+ (sf)' from 'B (sf)' its rating on the class B-2 bonds issued under the G.K. L-JAC4 Funding transaction, and affirmed its ratings on the class A-2, C-2, D-3A, D-3B, E-3, F-3, and G-3 bonds. Of the five underlying loans that initially backed the bonds at their issuance in May 2007, a single loan remains. The loan, which is due to mature in May 2013, originally represented about 34% of the total initial issuance amount of the bonds. A metropolitan resort hotel in Urayasu City, Chiba Prefecture backs the transaction's remaining loan. S&P had revised downward its assumption for the likely collection amount from the hotel to reflect the adverse effects of the March 2011 disasters. Under S&P's revised assumption, it estimated the property value as of July 2011 to be about 44% of its initial underwriting value. This time, S&P upgraded class B-2 because it raised its assumption for the likely collection amount from the hotel, reflecting its improved performance. S&P currently estimates the property value to be about 54% of its initial underwriting value, which is in line with its estimate before the disasters. Meanwhile, despite raising S&P's assumption for the likely collection amount from the hotel, it affirmed its ratings on classes A-2 and C-2 because it believes that its revised assumption does not justify upgrading these classes. S&P took this view primarily because the hotel, like other collateral of the same type, has cash flows that fluctuate wildly. S&P also affirmed its ratings on classes D-3A, D-3B, E-3, F-3, and G-3 because the borrower of the transaction's remaining loan maturing in May 2013 is working to secure refinancing, and the loan has not yet defaulted. L-JAC4 is a multiborrower commercial mortgage-backed securities (CMBS) transaction that Lehman Brothers Japan Inc. arranged. Five nonrecourse loans extended to three sponsors originally secured the bonds, and 34 properties initially backed the loans. Premier Asset Management Co. acts as the servicer for this transaction. The ratings reflect S&P's opinion on the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date in May 2015 for the class A-2 to G-3 bonds. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATING RAISED G.K. L-JAC4 Funding JPY78.7 billion floating-rate/fixed-rate bonds/certificates due May 2015 Class To From Initial issue amount B-2 B+ (sf) B (sf) JPY5.2 bil. RATINGS AFFIRMED G.K. L-JAC4 Funding Class Rating Initial issue amount A-2 BBB (sf) �25.0 bil. C-2 B- (sf) �4.8 bil. D-3A B- (sf) �1.0 bil. D-3B B- (sf) �2.3 bil. E-3 B- (sf) �1.2 bil. F-3 B- (sf) �1.1 bil. G-3 B- (sf) �0.4 bil. Classes A-1, B-1, C-1, D-1, D-2, E-1, E-2, F-1, F-2, G-1, and G-2 have already fully redeemed. S&P withdrew its ratings on the class X-1 and X-2 certificates on Oct. 29, 2010. =============== M O N G O L I A =============== MONGOLIAN MINING: Moody's Lowers CFR and Sr. Bond Ratings to B2 --------------------------------------------------------------- Moody's Investors Service downgraded the corporate family and senior unsecured bond ratings of Mongolian Mining Corporation to B2 from B1. The ratings outlook is stable. This concludes the rating review for downgrade initiated on 24 January 2013. Ratings Rationale: "The downgrade reflects the weakened financial profile of MMC and Moody's expectation that its credit metrics are unlikely to improve materially over the next 12-18 months to a level that is appropriate for a B1 rating, as a result of the prolonged weakness in coking coal prices," says Simon Wong, a Moody's Vice President and Senior Analyst. Moody's expects MMC's adjusted debt/EBITDA will remain above 5.5x in 2013, while its EBIT/Interest will range between 1.0 and 1.5x 2013. Such a financial profile is more consistent with a B2 rating. "Coking coal prices have firmed recently, largely due to restocking demand, but there is still some uncertainty over whether prices will continue to rise for the remainder of this year. Moody's expects prices to average $165-$175 per ton for the next 12 to 18 months due to the moderation in the growth in demand for steel and the ample level of coking coal supplies", adds Wong, the Lead Analyst for MMC. China's economic growth and demand growth for steel have slowed and therefore coking coal prices are unlikely to return to levels seen in the last five years. "MMC's strong cash position provides a buffer against the current weak operating environment, but such a buffer will decline in 2013 due to scheduled debt maturities, interest servicing and ongoing capex plans", say Wong. "MMC is also expected to report further financial covenant breaches on its bank loans in FY2013, but the current rating factors in Moody's expectation that MMC will address its ongoing financial covenant breaches, including obtaining the necessary waivers on a timely basis. It has obtained all necessary waivers for breaches in respect of the covenant test date on 31 December 2012," adds Wong. Capex requirements have eased in the medium term following Mongolia's announcement of a unified railway project. Capex for 2013 is expected to fall significantly to approximately $60 million for the completion of its coal handling and preparation plant, and water exploration projects. The current rating also factors in a high level and evolving nature of regulatory risks in Mongolia. The stable outlook reflects Moody's expectation that MMC will obtain waivers for future breaches of financial covenants on a timely basis, as well as continuing its focus on capital preservation and cost control to tide itself through the current challenging operating environment. Upward rating pressure is limited. However, if the company expands its production capacity as planned, while reducing its debt and interest burden, such that adjusted debt/EBITDA falls below 4.0- 4.5x and adjusted EBIT/interest exceeds 2.5x on a sustained basis, Moody's will consider upgrading the ratings. Downward pressure could emerge if (a) the industry's fundamentals deteriorate, such that the benchmark Queensland coking coal price falls below $165/ton on a sustained basis, or (b) any adverse changes in laws and regulations that would affect MMC's business and its ability to service its debt. Indicators that Moody's would consider for a downgrade include adjusted debt/EBITDA above 6.0x and adjusted EBIT/interest below 1.0-1.5x on a sustained basis. 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 million tons 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 ==================== MAINZEAL PROPERTY: Placed in Liquidation ---------------------------------------- NBR Online reports that liquidators have been appointed to a raft of Mainzeal Property and Construction Ltd and Richina Inc., related companies at the request of the shareholder. BDO's Andrew Bethell -- andrew.bethell@bdo.co.nz -- and Brian Mayo-Smith -- brian.mayo-smith@bdo.co.nz -- have been appointed liquidators of the group companies, including the first firm to fall over, Mainzeal Property and Construction, NBR Online relates citing documents lodged with the Companies Office. NBR Online says the appointments were made on February 28 by a special resolution of the shareholder, as opposed to being court appointed. The companies put into liquidation include Mainzeal Property and Construction, Mainzeal Living, 200 Vic, Mainzeal Group, Building Futures Group, Mainzeal Construction, Mainzeal Ltd, Mainzeal Construction SI, MPC NZ Ltd and RGRE Ltd., NBR Online discloses. A number of Richina-related companies and limited partnerships are still active, according to the Companies Office. According to the report, the liquidators said they are investigating the companies' affairs and their first report is due within five days. "It is our intention to hold a creditors meeting to enable creditors to meet with the liquidators, ensure the liquidators are fully aware of their concerns and to elect a creditors committee to work with and assist the liquidators with their investigations into the reasons for the failure of the group, the consequent losses to contractors, creditors and other stakeholders," the liquidators, as cited by NBR Online, said. "The liquidators are meeting with the receivers of Mainzeal in the next few days to obtain more financial and operational information about the group." About Mainzeal Property Mainzeal Property and Construction Ltd is a New Zealand-based property and construction company. The company forms part of the Mainzeal Group, which is owned by Richina Inc, a privately held New Zealand-based company with a strong China focus. Colin McCloy and David Bridgman, partners from PricewaterhouseCoopers, on Feb. 6, 2013, were appointed receivers to Mainzeal Property and Construction Limited and associated entities as a result of a request made by its director to BNZ. Mainzeal's director, Richard Yan advised that following a series of events that had adversely affected the Company's financial position coupled with a general decline in major commercial construction activity, and in the absence of further shareholder support, the Company could no longer continue trading. The receivers are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment. ********* 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 ***