/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130306.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, March 6, 2013, Vol. 16, No. 46 Headlines A U S T R A L I A BASSET HOLDINGS: Liquidator Seeks Buyer for Assets GOURMET FOOD: To Shut Down After Receivers Fail to Find Buyer PLY ACT: Nishi Builder Enters Voluntary Administration WAT'S ON TOP: Builder Guilty of Trading While Insolvent, Bankrupt * Moody's Notes Worsening Australian Mortgage Arrears in December H O N G K O N G B.C.G.A. CREDIT: Creditors' Proofs of Debt Due March 22 CEPTRON HK: Briscoe and Wong Step Down as Liquidators CHARMING UNION: Final Meetings Set for March 26 CHINESE CULTURE: Placed Under Voluntary Wind-Up Proceedings COSELSALVAGE LIMITED: Annual Meetings Set for March 21 CRIG INVESTMENTS: Members' Final General Meeting Set for March 28 DELIGHT VIEW: Members' and Creditors' Meetings Set for March 26 DOUCEUR FASHIONS: Creditors' Meeting Set for March 15 DOUBLE FIRST: Final Meeting Set for April 5 E! ENTERTAINMENT: Members' Final Meeting Set for March 22 GRAND OCEAN: Sole Member's Final Meeting Set for March 25 KASTRON INVESTMENT: Members' Final Meeting Set for March 25 KEEP JUMP: Members' Final Meeting Set for March 26 KIND FAMOUS: Creditors' Proofs of Debt Due March 25 LADY ANGELICA: Members' and Creditors' Meetings Set for March 26 TRIUMPH INVESTMENT: Members' Final Meeting Set for March 22 WAY OF LIFE: Creditors' Proofs of Debt Due March 22 WORLDWIDE TECHNOLOGY: Puen and Lo Step Down as Liquidators I N D I A DINESH SEAMLESS: CRISIL Assigns 'B' Ratings to INR90MM Loans JAYACHANDRA BEARINGS: CRISIL Ups Ratings on INR150M Loans to BB- JHANWAR INDUSTRIES: CRISIL Rates INR100MM Cash Credit at 'B+' KANERIYA SAND: CRISIL Assigns 'B+' Ratings to INR49.6MM Loans M. P. JEWELLERS: CRISIL Rates INR85MM Cash Credit at 'BB-' POMMYS GARMENTS: CRISIL Assigns 'B+' Ratings to INR90MM Loans RIVAA EXPORTS: CRISIL Raises Ratings on INR232.8MM Loans to 'BB+' SERVOTECH POWER: CRISIL Assigns 'BB-' Ratings to INR100MM Loans SHREE GANPATLAL: CRISIL Rates INR150MM Cash Credit at 'BB' SOVA ISPAT: CRISIL Upgrades Ratings on INR440MM Loans to 'C' STESALIT LTD: CRISIL Assigns 'BB' Ratings to INR350MM Loans J A P A N MIZUHO CAPITAL: Fitch Raises Preferred Securities Rating to 'BB' N E W Z E A L A N D ALLIED FARMERS: Sells Toxic Loans After Lender Demands Payment ASIA PACIFIC MGMT: In Receivership, 16 Apartments for Tender LM FIRST MORTGAGE: Auditors Raise Doubt Over AUD344-Mil. Fund LOMBARD FINANCE: Directors May Face Tougher Sentences S I N G A P O R E NUMBER 1: Court to Hear Wind-Up Petition on March 15 PREDIKTOR SINGAPORE: Creditors' Proofs of Debt Due on March 28 PREMIERE VISIONE: Court to Hear Wind-Up Petition on March 8 PROGEN ENGINEERING: Creditors' Proofs of Debt Due on March 15 SILVIA SHIPTRADE: Court to Hear Wind-Up Petition on March 8 X X X X X X X X * Moody's Releases Comparative Report on Global RMBS Markets * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= BASSET HOLDINGS: Liquidator Seeks Buyer for Assets -------------------------------------------------- dissolve.com.au reports that Basset Holdings Pty Ltd liquidator Nick Cooper of BRI Ferrier seeks urgent offers for the purchase of the business and/or assets of the company trading as Bean Bar. The holdings firm is the head franchisor of the Bean Bar chain of cafes in Adelaide CBD and also runs its own store from leased premises located at 50 Flinders Street also in Adelaide. The company assets offered for sale included Freehold Plant and Equipment, stock, franchise rights and intellectual property. Leased premises may be available subject to landlord's consent. In July 2012, the ATO commenced its own proceedings against Basset Holdings in the Federal Court, which culminated in the winding up of the company and appointment of Nick Cooper of BRI Ferrier as liquidator, The Advertiser reported. Immediate offers for purchase of the business and/or assets are required by March 6, 2013, dissolve.com.au says. GOURMET FOOD: To Shut Down After Receivers Fail to Find Buyer ------------------------------------------------------------- ABC News reports that the food maker Rosella will close down after nearly 120 years in business, with the company's 70 remaining Sydney-based workers to lose their jobs in the next few weeks. According to the report, receivers Ferrier Hodgson said they have not been able to sell the business and will now try to sell its brands including Rosella tomato sauce and Stromboli pasta sauces. The Gourmet Food Group, which includes Rosella Foods, was placed in receivership in November. Other parts of the group have already been sold or are in the process of being sold. ABC News relates that Rosella's receiver Jim Sarantinos thanked staff for their efforts throughout the receivership. "The loss of jobs is disappointing but unavoidable due to the scale of losses the business was sustaining on a weekly basis," ABC News quotes Mr. Sarantinos as saying. "We had hoped that a suitable buyer would have been able to breathe new life into the business and preserve these jobs . . . we have exhausted all options for a sale and unfortunately we have no alternative but to cease trading." About Gourmet Group Gourmet Group is an Australian food manufacturer. The group's interests include sauce, spice and chutney manufacturer Rosella; organic soups and pre-made meals maker Pitango; and crispbreads and cracker maker Waterwheel. Steve Sherman, John Lindholm and Jim Sarantinos of Ferrier Hodgson were appointed joint and several receivers and managers of Gourmet Food Holdings and related entities on Nov. 30, 2012, pursuant to the provisions of a registered debenture charge created by the Gourmet Group: -- Gourmet Food Holdings Pty Limited -- Australian Company Number -- Rosella Foods Pty Limited -- Philemon Pty Limited (t/as Waterwheel Industries) -- TCM Foods Pty Limited -- Gourmet Food Holdings New Zealand Limited -- Pitango Innovative Cuisine Limited PLY ACT: Nishi Builder Enters Voluntary Administration ------------------------------------------------------ ABC News reports that Ply ACT Pty Ltd, the building contractor for Canberra's Nishi development, has entered voluntary administration. Ply ACT has been building the AUD550 million Nishi complex at New Action for developer Molonglo Group. Several other Ply ACT projects in Canberra are also affected, including the Astin Apartments and Rex Hotel redevelopment. According to the report, administrator Alan Hayes said he is conducting an urgent assessment of Ply ACT's financial position. "The cash flow of the company is insufficient to meet its debts right now," the report quotes Mr. Hayes as saying. "So there are subbies (subcontractors) owned money. Equally there is money owing to the company in the form of debtors, retentions, there's money in the bank, there's assets available to the administrator. ABC News relates that Mr. Hayes said most work has stopped on the Nishi site. The Nishi site is open for (the cinema contractor) to continue their work, otherwise they've been locked down and suspended for safety reasons until we can access what the safety is on the site," Mr. Hayes, as cited by ABC News, said. Nishi Developers 'Shocked' at Collapse The Canberra Times reports that the developers of the stricken Nishi building in Acton said they are shocked by the collapse of the main contractor on the AUD550 million project. According to Canberra Times, the Molonglo Group said it has paid all its bills to contractor Ply ACT Ltd, which called in the administrators on Monday evening, allegedly owning local builders millions of dollars. But a spokesman for Molonglo subsidiary Nishi Residential Building Ltd said in a statement on Tuesday that it he was "confident" that the massive building job would be finished on time, Canberra Times relays. WAT'S ON TOP: Builder Guilty of Trading While Insolvent, Bankrupt ----------------------------------------------------------------- SmartCompany reports that Timothy Watson, who traded under the company Wat's on Top Constructions, has been found guilty of trading while insolvent and ordered to complete 250 hours of unpaid community service in a year. SmartCompany recalls that in August 2009, Mr. Watson was made bankrupt but continued to trade without advising some customers he was an undischarged bankrupt. The report says Mr. Watson obtained AUD73,372 by promising to supply goods and services to a person without informing them of his financial status. According to SmartCompany, Mr. Watson was convicted in the Dromana Magistrates' Court earlier this month and, in sentencing, Magistrate Holzer said Mr. Watson had misled the customer and needed to understand the consequences of his bankruptcy status. PPB Advisory partner and insolvency expert Mark Robinson told SmartCompany individuals who are insolvent cannot obtain money from a person for their product or services unless they have informed a credit provider. "An individual under the Bankruptcy Act is not allowed to incur credit over a certain threshold without informing the credit provider. Certainly an individual cannot gain credit more than their threshold amount without informing their provider," the report quotes Mr. Watson as saying. "As long as the bankrupted person has disclosed to the credit provider they are an undisclosed bankrupt and the provider of money is still happy to lend, then it's okay. This typically happens in family arrangements." * Moody's Notes Worsening Australian Mortgage Arrears in December ----------------------------------------------------------------- Moody's Investors Service says that Australian prime mortgage arrears worsened in December versus the previous month. As published in Moody's Global Structured Finance Collateral Performance Review, Moody's says arrears in excess of 30 days in the Australian prime residential mortgage market were 1.44% in December, up from 1.30% in November but down from 1.59% the same period one year earlier. Thirty-day-plus arrears in the Australian non-conforming market were lower at 6.65% compared with 7.54% in November and 7.56% in December 2011. "Looking ahead, we expect the performance trends witnessed in 2012 to continue over 2013 with stable delinquencies, underpinned by expected GDP growth of 2.5% to 3.5%, a continuation of the low interest rate environment, and a steady unemployment rate of 4.5% to 5.5%" says Jennifer Wu, a Moody's Vice President and Senior Credit Officer. About Moody's Global Collateral Performance Report Moody's Global Collateral Performance Report is updated monthly and covers the collateral performance of 41 structured finance sectors located globally. In the US, the performance metrics of 12 asset classes are covered, in Europe: 19, in Japan: 7, in Australia: 2, and in Canada: 1. The report features typical aggregate performance metrics, such as delinquencies and losses, as well as sector-specific metrics that include residential and commercial property prices, loans in special servicing, refinancing profiles, average WARF levels, senior OC levels, payment rates, and excess spread. The underlying data is also included. The metrics are accompanied by sector commentary and outlooks, and projected losses by vintage where applicable. Australian data focuses on: - Australian Prime RMBS - Australian Non-conforming RMBS - Australian Home Prices ================ H O N G K O N G ================ B.C.G.A. CREDIT: Creditors' Proofs of Debt Due March 22 ------------------------------------------------------- Creditors of B.C.G.A. Credit Union, which is in liquidation, are required to file their proofs of debt by March 22, 2013, to be included in the company's dividend distribution. The company's liquidators are: Wong Lung Tak Patrick Lau Yuk Ming Room 1101, 11/F China Insurance Group Building 141 Des Voeux Road Central, Hong Kong CEPTRON HK: Briscoe and Wong Step Down as Liquidators ----------------------------------------------------- Stephen Briscoe and Wong Teck Meng stepped down as liquidators of Ceptron HK Limited on Feb. 18, 2013. CHARMING UNION: Final Meetings Set for March 26 ---------------------------------------------- Members and creditors of Charming Union Investments Limited will hold their final meetings on March 26, 2013, at 10:30 a.m., and 11:00 a.m., respectively at 8th Floor, Prince's Building, at 10 Chater Road, Central, in Hong Kong. At the meeting, Jacky CW Muk, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CHINESE CULTURE: Placed Under Voluntary Wind-Up Proceedings ----------------------------------------------------------- At an extraordinary general meeting held on Feb. 7, 2013, creditors of Chinese Culture on Net Foundation Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan Kim Fai Unit 1902, 19th Floor CLI Building, No. 313 Hennessy Road Wanchai, Hong Kong COSELSALVAGE LIMITED: Annual Meetings Set for March 21 ------------------------------------------------------ Members and creditors of Coselsalvage Limited will hold their annual meetings on March 21, 2013, at 11:00 a.m., and 11:30 a.m., respectively at 22nd Floor, Prince's Building, 10 Chater Road, Central, in Hong Kong. At the meeting, David R Hague, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CRIG INVESTMENTS: Members' Final General Meeting Set for March 28 ----------------------------------------------------------------- Members of Crig Investments Limited will hold their final general meeting on March 28, 2013, at 3:00 p.m., at Flat B, 7/F, On Hing Building, at 1 On Hing Terrace, Central, in Hong Kong. At the meeting, Cheng Chi Pang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. DELIGHT VIEW: Members' and Creditors' Meetings Set for March 26 --------------------------------------------------------------- Members and creditors of Delight View Azabu (HK) Limited will hold their final general meetings on March 26, 2013, at 10:00 a.m., and 10:30 a.m., respectively at 602 The Chinese Bank Building, 61-65 Des Voeux Road Central, in Hong Kong. At the meeting, Wong Teck Meng, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. DOUCEUR FASHIONS: Creditors' Meeting Set for March 15 ----------------------------------------------------- Creditors of Douceur Fashions Limited will hold a meeting on March 15, 2013, at 11:00 a.m., at Suite 1704, 17th Floor, 625 King's Road, North Point, in Hong Kong. At the meeting, Jackson Ip, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. DOUBLE FIRST: Final Meeting Set for April 5 ------------------------------------------- Members of Double First Company Limited will hold their final meeting on April 5, 2013, at 10:00 a.m., at Unit 9, 17/F, Citicorp Centre, at 18 Whitfield Road, Causeway Bay, in Hong Kong. At the meeting, Lau Cheuk Man Timothy, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. E! ENTERTAINMENT: Members' Final Meeting Set for March 22 --------------------------------------------------------- Members of E! Entertainment Hong Kong Limited, which is in members' voluntary liquidation, will hold their final meeting on March 22, 2013, at 10:00 a.m., at 22nd Floor, Tai Yau Building, 181 Johnston Road, Wanchai, in Hong Kong. At the meeting, Victor Robert Lew, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. GRAND OCEAN: Sole Member's Final Meeting Set for March 25 --------------------------------------------------------- Sole Member of Grand Ocean International Trading Limited will hold their final meeting on March 25, 2013, at 3:00 p.m., at Suite No. A, 11th Floor, Ritz Plaza, 122 Austin Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, Sung Mi Yin Mella, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KASTRON INVESTMENT: Members' Final Meeting Set for March 25 ----------------------------------------------------------- Members of Kastron Investment Limited will hold their final general meeting on March 25, 2013, at 5:00 p.m., at its registered office. At the meeting, Ho Tak Kwong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KEEP JUMP: Members' Final Meeting Set for March 26 -------------------------------------------------- Members of Keep Jump Limited, which is in members' voluntary liquidation, will hold their final meeting on March 26, 2013, at 11:00 a.m., at 5/F, Effectual Building, 16 Hennessy Road, Wanchai, in Hong Kong. At the meeting, Yip Tak On, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KIND FAMOUS: Creditors' Proofs of Debt Due March 25 --------------------------------------------------- Creditors of Kind Famous Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 25, 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: Chan Chi Bor Li Fat Chung Unit 402, 4/F, Malaysia Building No. 50 Gloucester Road Wanchai, Hong Kong LADY ANGELICA: Members' and Creditors' Meetings Set for March 26 ---------------------------------------------------------------- Members and creditors of Lady Angelica Limited will hold their final meetings on March 26, 2013, at 9:30 a.m., and 10:00 a.m., respectively at 32nd Floor, One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. TRIUMPH INVESTMENT: Members' Final Meeting Set for March 22 ----------------------------------------------------------- Members of Triumph Investment Fund Limited, which is in members' voluntary liquidation, will hold their final meeting on March 22, 2013, at 10:00 a.m., at Room 803, Tung Hip Commercial Building, 248 Des Voeux Road, Central, in Hong Kong. At the meeting, Zhuo Shuijia, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WAY OF LIFE: Creditors' Proofs of Debt Due March 22 --------------------------------------------------- Creditors of The Way of Life Church 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. 17, 2013. The company's liquidator is: Lee, Tak Kuen Flat M, 5/F, Haven Court 134 Leighton Road Causeway Bay, Hong Kong WORLDWIDE TECHNOLOGY: Puen and Lo Step Down as Liquidators ---------------------------------------------------------- Puen Wing Fai and Lo Yeuk Ki Alice stepped down as liquidators of Worldwide Technology Partners (Asia) Limited on Feb. 14, 2013. ========= I N D I A ========= DINESH SEAMLESS: CRISIL Assigns 'B' Ratings to INR90MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facilities of Dinesh Seamless Tubes Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B/Stable Proposed Long-Term 30 CRISIL B/Stable Bank Loan Facility The rating reflects DSTPL's marginal scale of operations, and weak financial risk profile marked by a small net worth and a high total outside liabilities to tangible net worth ratio. These rating weaknesses are partially offset by the benefits that DSTPL derives from its promoters' extensive experience in the pipe trading business and its established relationships with its customers and suppliers. Outlook: Stable CRISIL believes that DSTPL will continue to benefit over the medium term from its promoters' extensive experience in the pipe trading business however its financial risk profile will remain weak over the medium term. The outlook may be revised to 'Positive' if the company's financial risk profile improves most likely due to a significant improvement in its capital structure and its profitability. Conversely, the outlook may be revised to 'Negative' in case DSTPL there is a further deterioration in its capital structure or working capital management. DSTPL, incorporated in 2009, is managed by Mr. Champaklal K Shah and Mr. Dhruv Sanjay Gupta. The company trades in carbon steel seamless pipes and alloy steel seamless pipes. DSTPL is based in Mumbai (Maharashtra). DSTPL reported a profit after tax (PAT) of INR4.6 million on net sales of INR632.0 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR4.1 million on net sales of INR582.0 million for 2010-11. JAYACHANDRA BEARINGS: CRISIL Ups Ratings on INR150M Loans to BB- ---------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank loan facilities of Jayachandra Bearings (India) Pvt Ltd to 'CRISIL BB- /Stable' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 130 CRISIL BB-/Stable (Downgraded from 'CRISIL BB/Stable') Standby Line of 10 CRISIL BB-/Stable (Downgraded Credit from 'CRISIL BB/Stable') Proposed Long-Term 10 CRISIL BB-/Stable (Downgraded Bank Loan Facility from 'CRISIL BB/Stable') The rating downgrade reflects CRISIL's belief that JBIPL's financial risk profile will be weaker than earlier expectations, mainly because of substantial increase in its working capital requirements. The company's working capital requirements have increased because of significant stretch in its receivables; its receivables increased to 125 days as on December 31, 2012, as against normal receivables of around 60 days previously. JBIPL's incremental working capital requirements are expected to remain high and will predominantly be funded through bank debt. Consequently, the company's total outside liabilities to tangible net worth (TOLTNW) ratio is expected to remain high at around 4 times over the medium term. CRISIL believes that JBIPL's financial risk profile will remain constrained over the medium term by its large working capital requirements. The rating reflects the benefits that JBIPL derives from its promoters' experience in trading in bearings and its established relationships with its customers and principals. These rating strengths are partially offset by JBIPL's working-capital- intensive operations, and weak financial risk profile marked by a small net worth and high TOLTNW. Outlook: Stable CRISIL believes that JBIPL will continue to benefit over the medium term from its promoters' industry experience. The outlook may be revised to 'Positive' if the company significantly scales up its operations, while improving its operating margin, leading to sustained improvement in its cash accruals and TOLTNW ratio. Conversely, the outlook may be revised to 'Negative' if JBIPL's liquidity deteriorates because of further stretch in its working capital requirements, or if there is considerable deterioration in its financial risk profile because of lower profitability or revenues, or if the company undertakes a significant, debt-funded capital expenditure programme. JBIPL was originally established as a proprietorship concern in 1968; this concern was reconstituted as a partnership firm in 1977 and then as a private limited company in 2005. JBIPL trades in bearings. JBIPL reported a profit after tax (PAT) of INR4.8 million on net sales of INR363.7 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR4.9 million on net sales of INR341.9 million for 2010-11. JHANWAR INDUSTRIES: CRISIL Rates INR100MM Cash Credit at 'B+' ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash credit facility of Jhanwar Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable The rating reflects JI's small scale of operations in a fragmented industry along with weak financial risk profile owing to working capital intensive operations. These rating weaknesses are partially offset by extensive experience of JI's promoters in rice industry. Outlook: Stable CRISIL expects JI to maintain a stable business risk profile over the medium term on the back of promoter's extensive experience in the rice milling industry. The outlook may be revised to 'Positive' in case of better than expected financial risk profile due to equity infusion or better working capital management. Conversely, the outlook may be revised to 'Negative' in case of less than expected demand or in case the firm under takes substantial debt-funded expansions that further deteriorate the capital structure or any equity withdrawal by the partners. JI, located in Bundi (Rajasthan), is engaged in milling and sorting of rice with a capacity of 2 tons per hour (TPH). The entity is managed by its partners Mr. B.L Jhanwar and Mr. P.D. Jhanwar. JI reported profit after tax (PAT) of Rs 3.9 million on net sales of Rs 286 million for 2011-12 (refers to financial year, April 1 to march 31), against PAT of Rs 2.7 million on net sales of Rs 246 million for 2010-11. KANERIYA SAND: CRISIL Assigns 'B+' Ratings to INR49.6MM Loans ------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Kaneriya Sand & Aggregates Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 8.5 CRISIL B+/Stable Term Loan 41.1 CRISIL B+/Stable The rating downgrade reflects the substantially weaker than expected performance by the company in 2011-12 (refers to financial year, April 1-March 31), and CRISIL's expectation that profitability will unlikely recover in 2012-13. On account of the decline in profitability, KSAPL's gearing is expected to remain high over the near-term, impacted also by its traditionally low net worth. The ratings also continue to factor KSAPL's relatively short track record and geographic concentration as the company generates most of its sales from the Surat (Gujarat) region. The rating weaknesses are partially offset by the company's strong customer profile, moderate revenue visibility on account of the contracts with its key clients and the promoters' extensive experience in the sector. Outlook: Stable CRISIL expects KSAPL will maintain its credit profile on the back the long experience of the promoters in sand and aggregates manufacturing. The outlook may be revised to 'Positive' if the company's scale of operations increases substantially and on a sustained basis, most likely by entering into sales contracts with more clients, and without significantly impacting profitability. Conversely the outlook may be revised to 'Negative' in case of significant deterioration in profitability or increases in working capital, or any debt funded capital expenditures. Incorporated in 2010, KSAPL started operations in January 2011; based in Surat, the company is involved in the manufacturing and distribution of sand and aggregates, which are used in the construction sector. The company operates a crushing plant at a distance of about 60 kilometres from Surat. KSAPL is promoted by Mr. Hasmukh Kaneriya and Mr. Dilip Kaneriya, who were earlier involved in the same sector through companies held by the Kaneriya family. KSAPL reported a net loss of INR2.1 million on net sales of INR10.4 million for 2011-12. M. P. JEWELLERS: CRISIL Rates INR85MM Cash Credit at 'BB-' ---------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable' rating to the cash credit facility of M. P. Jewellers (BS) & Co. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 85 CRISIL BB-/Stable The rating reflects the benefits that MPBS derives from the extensive experience of its promoters in the jewellery industry. These rating strengths are partially offset by MPBS's small scale of operations in the intensely competitive and fragmented jewellery industry, and below-average financial risk profile, marked by weak capital structure. Outlook: Stable CRISIL believes that MPBS will continue to benefit over the medium term from its partners' extensive experience in the jewellery industry. The outlook may be revised to 'Positive' if the firm reports robust growth in revenue and profitability or improvement in the capital structure, resulting in an improved financial risk profile. Conversely, the outlook may be revised to 'Negative' if MPBS working capital cycle is stretched, significant capital withdrawals by partners, or large capital expenditure plans leading to weakening in its financial risk profile. MPBS was set up as a partnership firm in 2009-10 (refers to financial year, April 1 to March 31) by Mr. Chandrakanta Roychowdhury, Mr.Biplabankur Roychowdhury and Mr. Pushparag Roychowdhury. MPBS manufactures and retails gold, gems, diamond, platinum and silver jewellery. POMMYS GARMENTS: CRISIL Assigns 'B+' Ratings to INR90MM Loans ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Pommys Garments India Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 5.8 CRISIL B+/Stable Cash Credit 70.0 CRISIL B+/Stable Proposed Long-Term 14.2 CRISIL B+/Stable Bank Loan Facility The rating reflects the company's weak financial risk profile marked by modest networth, high gearing and subdued debt protection indicators and modest scale of operations in a highly competitive industry. These rating weaknesses are partially offset by the promoter's extensive experience in the industry and established market position of PGIPL. Outlook: Stable CRISIL believes that PGIPL will continue to benefit over the medium term from its established market position coupled with the extensive experience of the promoter. The outlook may be revised to 'Positive if the company generates significantly better-than- expected revenue and margins and revenue while improving its capital structure and debt protection indicators. Conversely, the outlook may be revised to 'Negative' if PGIPL's working capital cycle lengthens significantly or if it faces significant decline in the revenue or profitability margins. PGIPL was incorporated in the year 2009 by Mr. A. Inico Inbaraj and Mr. K. Raja. The company is engaged in manufacturing of readymade garments for women and kids. Its manufacturing facilities are located in Dhalavaipuram (Tamil Nadu). The promoters have been engaged in the readymade garment manufacturing since 1998, through other entities. PGIPL recorded a profit after tax (PAT) of INR 0.9 million on net sales of INR282 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR 0.6 million on net sales of INR180 million for 2010-11. RIVAA EXPORTS: CRISIL Raises Ratings on INR232.8MM Loans to 'BB+' ----------------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of Rivaa Exports Ltd to 'CRISIL BB+/Stable' from 'CRISIL BB-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 26.8 CRISIL BB+/Stable ('Upgraded from CRISIL BB-/Stable') Cash Credit 100.0 CRISIL BB+/Stable ('Upgraded from CRISIL BB-/Stable') Proposed Long-Term 106 CRISIL BB+/Stable ('Upgraded Bank Loan Facility from CRISIL BB-/Stable') The rating upgrade reflects the expected improvement in Rivaa's financial risk profile, particularly in its liquidity, on account of infusion of equity by the company's promoters and absence of any large, debt-funded capital expenditure (capex) plans. Rivaa's promoters have infused INR90 million over the two years through 2011-12; the same has led to improvement in the company's overall capital structure, with a gearing of 0.6 times as on March 31, 2012 (CRISIL has treated unsecured loans from the company's promoters as neither debt nor equity). Rivaa's gearing is expected to remain at a similar level over the medium term, in the absence of any large capex plans. The company's debt protection metrics are also expected to remain healthy, with interest coverage ratio of over 6 times over the medium term. The company's utilisation of bank lines has also declined, with average bank limit utilisation at 74% over the 12 months through October 2012, on account of its management's increased focus towards better working capital management. CRISIL believes that Rivaa will sustain its healthy financial risk profile, particularly its liquidity, over the medium term. The rating reflects the benefits that Rivaa derives from its promoters' extensive industry experience and its moderate operating efficiency; the rating also factors in the company's healthy financial risk profile marked by a moderate net worth and gearing, and comfortable debt protection metrics. These rating strengths are partially offset by Rivaa's small scale of operations, and limited product and revenue diversity. Outlook: Stable CRISIL believes that Rivaa will continue to benefit over the medium term from its promoters' industry experience, its established relationships with its customers and suppliers, and steady cash accruals from its operations. The outlook may be revised to 'Positive' if the company substantially scales up its operations, while it maintains its profitability and capital structure. Conversely, the outlook may be revised to 'Negative' if Rivaa undertakes any large, debt-funded capex programme or registers deterioration in its profitability, or if its working capital cycle lengthens. Rivaa, incorporated in 2004, is promoted by the Virmani family. The company, based in Surat (Gujarat), manufactures blended fabric for the salwar, kameez, and dupatta segment of the textiles industry. Rivaa reported a profit after tax (PAT) of INR26.5 million on net sales of INR1.09 billion for 2011-12, against a PAT of INR19.8 million on net sales of INR1.07 billion for 2010-11. SERVOTECH POWER: CRISIL Assigns 'BB-' Ratings to INR100MM Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Servotech Power System Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 5 CRISIL BB-/Stable (Assigned) Cash Credit 50 CRISIL BB-/Stable (Assigned) Proposed Long-Term 45 CRISIL BB-/Stable (Assigned) Bank Loan Facility Proposed Short-Term 55 CRISIL A4+ (Assigned) Bank Loan Facility Letter of Credit 30 CRISIL A4+ (Assigned) Bank Guarantee 15 CRISIL A4+ (Assigned) The ratings reflect the extensive experience of Servotech's promoter in the power storage equipment industry, and average financial risk profile marked by moderate debt protection metrics. These rating strengths are partially offset by Servotech's large working capital requirements and its marginal scale of operations in a fragmented industry. Outlook: Stable CRISIL believes that Servotech will benefit from its promoter's extensive industry experience over the medium term. The outlook may be revised to 'Positive' in case the company improves its scale of operations significantly while sustaining its profitability and capital structure, or in case of improvement in its working capital management. Conversely, the outlook may be revised to 'Negative' if the company's liquidity deteriorates further due to larger-than-expected working capital requirements or if it undertakes a larger-than-expected, debt-funded capital expenditure programme. Servotech was set up in 1994 as a proprietorship firm and was reconstituted as a private limited company in 1998. It manufactures uninterruptible power supply, inverters, batteries, Light-emitting diode lights, and solar controllers. It is based in New Delhi with manufacturing facilities at Parwanoo (Himachal Pradesh) and New Delhi. Servotech reported a profit after tax (PAT) of INR8.3 million on net sales of INR214.6 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR5.7 million on net sales of INR198.3 million for 2010-11. SHREE GANPATLAL: CRISIL Rates INR150MM Cash Credit at 'BB' ---------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank facility of Shree Ganpatlal Onkarlal Agarwal & Co. (part of the Swastik group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL BB/Stable The rating reflects the Swastik group's established position in the coal trading market and the healthy demand prospects for imported non-coking coal in India. These rating strengths are partially offset by the Swastik group's financial risk profile, marked by gearing leveraged capital structure, and working- capital-intensive operations. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of SGOAC, Swastik Coal International Pvt Ltd (SCIPL) and Swastik Coal Corporation Pvt Ltd (SCCPL), together referred to as the Swastik group. This is because both SCCPL and SCIPL trade in coal, while SGOAC provides logistics services for the two group entities. Furthermore, the three entities are held and managed by the same promoters and are expected to financially support each other if and when the need arises. Outlook: Stable CRISIL believes that the Swastik group will benefit over the medium term from its established sourcing network and healthy demand prospects for imported non-coking coal in India. The outlook may be revised to 'Positive' if the group significantly scales up its operations while maintaining stable profitability. Conversely, the outlook may be revised to 'Negative' if the group faces any adverse regulatory change, thereby disrupting its supplies, or if it undertakes any large debt-funded capital expenditure programme. Based in Indore (Madhya Pradesh), the Swastik group trades in indigenous and imported coal. The group also provides logistics services through its firm, SGOAC. Established in 1984 by members of the Bindal family as a trader of indigenous coal, the group is now focused on imported coal; it both directly imports coal from international suppliers and also relies on merchant importers in India. The Swastik group is promoted by Mr. Hitesh Bindal and Mr. Vishnu Bindal. The Swastik group reported a profit after tax (PAT) of INR77.2 million on net sales of INR7.6 billion for 2011-12 (refers to financial year, April 1 to March 31), as against a PAT of INR39.5 million on net sales of INR4.5 billion for 2010-11. SCOAC reported PAT of INR24.9 million on net sales of INR1.3 billion for 2011-12, compared PAT of INR20.9 million on net sales of INR1.1 billion in 2010-11. SOVA ISPAT: CRISIL Upgrades Ratings on INR440MM Loans to 'C' ------------------------------------------------------------ CRISIL has upgraded its rating on the bank facilities of Sova Ispat Alloys (Mega Projects) Limited to 'CRISIL C' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL C (Upgraded from 'CRISIL D') Funded Interest 62.4 CRISIL C (Upgraded from Term Loan 'CRISIL D') Proposed Long-Term 76.3 CRISIL C (Upgraded from Bank Loan Facility 'CRISIL D') Term Loan 75.8 CRISIL C (Upgraded from 'CRISIL D') Working Capital Term 165.5 CRISIL C (Upgraded from Loan 'CRISIL D') The upgrade follows improvement in the company's near term liquidity profile following restructuring of its outstanding loans, wherein, it does not have any repayments till December 2013. Over the medium term, however, its ability to generate adequate cash accruals to service its debt obligations on time remains a key rating sensitivity factor. SIAL's weak financial profile is marked by low net worth base and weak debt protection metrics. The company also has large working capital requirements and its operating margin is susceptible to volatility in raw material prices. However, SIAL continues to benefit from its promoter's extensive experience in the ferroalloys industry. SIAL was incorporated in 2004 and started commercial operations in 2008. SIAL manufactures ferro-manganese and silico-manganese. SIAL reported a net loss of INR36.7 million on net sales of INR322.9 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR5.76 million on net sales of INR455.3 million for 2010-11. STESALIT LTD: CRISIL Assigns 'BB' Ratings to INR350MM Loans ----------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank facilities of Stesalit Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 300 CRISIL BB/Stable Proposed Long-Term 50 CRISIL BB/Stable Bank Loan Facility The rating reflects Stesalit's promoters' extensive experience in manufacturing electronic and engineering products and its above- average financial risk profile. This rating strength is partially offset by Stesalit's working-capital-intensive operations and high revenue dependence on Indian Railways (IR) for business. Outlook: Stable CRISIL believes that Stesalit will benefit from its promoters' extensive industry experience, over the medium term. The outlook may be revised to 'Positive' if Stesalit diversifies its customer profile or improves its working capital management, thereby improving its liquidity. Conversely, the outlook may be revised to 'Negative' in case of deterioration in its working capital requirements, lower-than-expected cash accruals or if the company undertakes any large, debt-funded capital expenditure, causing its liquidity to weaken. Set up in 1987, Stesalit manufactures electronic and engineering products, such as transformers, contractors, smoothing reactors, motors, and alternator regulators, mainly for IR. All these products are used in coaches, locomotives, and signaling systems. The day-to-day operations of Stesalit are managed by Mr. A K Khemka and his son, Mr. Hemant Khemka. Stesalit reported a profit after tax (PAT) of INR223.9 million on net sales of INR2.22 billion for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR183.6 million on net sales of INR1.68 billion for 2010-11. ========= J A P A N ========= MIZUHO CAPITAL: Fitch Raises Preferred Securities Rating to 'BB' ---------------------------------------------------------------- Fitch Ratings has upgraded the Viability Ratings (VRs) of Mizuho Financial Group, Inc., and Sumitomo Mitsui Financial Group, Inc. and their subsidiaries. Fitch has also upgraded the VRs of Mitsubishi UFJ Financial Group, Inc.'s banking subsidiaries as well as their Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs). The ratings of Sumitomo Mitsui Trust Bank, Limited have been affirmed. Key Rating Drivers and Sensitivities - VRs The upgrade of the VRs reflects sustained improvements in the banks' risk absorption capability despite a persistently challenging operating environment. The VRs continue to be underpinned by the banks' strong domestic franchises and solid liquidity, particularly in yen. The affected banks are MHFG, Mizuho Bank, Ltd., Mizuho Trust & Banking Co., Ltd., Mizuho Corporate Bank, Ltd., SMFG and Sumitomo Mitsui Banking Corporation, Bank of Tokyo-Mitsubishi UFJ, Ltd., Mitsubishi UFJ Trust and Banking Corporation. The improvements, which have exceeded Fitch's earlier expectations, are most evident in capitalisation (including internal capital generation) for all mega banks. For MUFG and SMFG in particular, their capitalisation now compares favourably with that of many global peers. Despite solid improvements in MHFG's capital ratios, they remain somewhat lower than the average of 'bbb+' rated peers. However, today's action incorporates Fitch's expectation that Mizuho group's internal capital generation will improve further from additional cost reductions through their ongoing group restructuring. Fitch therefore expects MHFG's Basel III-compliant common equity tier 1 ratio (on a fully implemented basis) to reach 8% by end-March 2016, from around 7% currently. The upgrades also reflect reduced equity exposure, gradual earnings diversification and sound asset quality. Fitch believes these improvements will be sustained. This is because of the banks' risk-averse nature, which in part contributes to modest core profitability, their moderate offshore expansion, and a likely less negative, albeit still challenging, domestic operating environment. The affirmation of the VR for SMTB reflects its strong liquidity, modest risk appetite and solid asset quality consistent with its trust banking model, limited interest rate risk and adequate capitalisation. Prospects for improving its core capital are lessrelative to its peers while its smaller franchise than the three mega banking groups' also constraints the ratings. Fitch believes it will take time for synergies from the merger between Sumitomo Trust and Banking Co., Ltd. and Chuo Mitsui Trust and Banking Company, Limited in April 2012 to improve SMTB's internal capital generation to levels comparable with higher-rated banks. The Short-Term IDRs have been affirmed at 'F1' to reflect the banks' strong access to funding on the back of their substantial franchises and extensive liquidity within the system. The VRs are sensitive to the broader operating environment and a number of potential risks to which the banks remain exposed. Negative rating action on the banks' VRs is currently not envisaged as their substantial exposures to investment stocks and, in particular, Japanese government bonds are well covered by the banks' improved capitalisation. Fitch views the outlook for economic and market conditions as somewhat supportive for continuing improvements to their financial profiles. Nevertheless, Fitch expects the banks to maintain improvements even in challenging domestic operating conditions. The VRs may be negatively affected by material stress in the operating environment - beyond Fitch's own stress test assumptions. Downward pressure may also result from an unexpected increase in risk appetite without a corresponding increase in capital buffers, leading to potentially higher earnings volatility or slower internal capital generation. The potential for further VR upgrade is limited for MUFG's subsidiaries, in light of the ratings' proximity to the sovereign IDRs (A+/Negative). Nevertheless, any positive action would likely stem from further substantial improvement in the domestic operating environment resulting in accelerated internal capital generation. Contributions from overseas operations are likely to be moderate in the short- to medium-term with no major changes to the risk/return profile. For SMTB, upside for the VR would arise if successful integration benefits internal capital generation. Similarly, any further positive rating action on the VRs of MHFG and SMFG entities would reflect a structurally improved operating environment as well as further material improvement in their capitalisation without a material increase in risk appetite. In the case of MHFG, given that the rating already factors in meaningful improvement in capitalisation, prospects for a further upgrade in the medium-term are limited. Rating Drivers and Sensitivities - IDRs, Senior Debt, Support Ratings and Support Rating Floor The upgrade of the IDRs of MUFG's banking subsidiaries follows the upgrade of the VRs. Conversely a downgrade in the VRs of MUFG's banking subsidiaries would directly impact their IDRs and senior debt instrument ratings given that their IDRs are driven by the VRs. Any downgrade in VRs of SMFG, MHFG and SMTB would not immediately affect their IDRs, since the IDRs are at their Support Rating Floors (SRF). On the other hand, an upgrade in the VRs of SMFG and SMTB would in turn lead to an upgrade of their IDRs. Currently, MHFG's VR is one notch below its IDR of 'A-'. Therefore, an upgrade in the VR of MHFG would not lead to an upgrade of the IDR unless it is by more than two notches. Fitch expects the banks' Support Ratings (SR) of '1' and SRF of 'A-' to be maintained, even if the sovereign's ratings were downgraded to 'A'. This is based on Fitch's belief that the government's propensity to support the major banks, if necessary, remains intact. Also, the notching between the SRFs of systemically important banks and the sovereign ratings tends to narrow as the latter fall to lower rating categories. However, any downgrade of the sovereign's IDRs to below 'A' would negatively affect the SR and SRF of all banks as well as the support-driven IDRs of MHFG. Subordinated Debt and Other Hybrid Securities - Rating Drivers and Sensitivities Preferred securities issued by subsidiaries of MUFG, MHFG and SMFG are rated four notches below the respective parents' VRs - two notches for loss severity and two notches for non-performance risk due to the constraint of coupon suspension - in line with Fitch's criteria on performing instruments. Subordinated debt under Basel ll are rated one notch below the IDRs, reflecting Fitch's expectations that sovereign support, if required by the banks, would preclude them from legal failure. As a result, subordinated debt, like senior debt, would not default. Subsidiary and Affiliated Company - Rating Drivers and Sensitivities The IDRs of Sumitomo Mitsui Banking Corporation Europe Limited (SMBCE) are in line with the ratings of its 100% parent, SMBC, given its role as the European operational arm of SMBC. The Long-Term IDRs of ACOM CO., LTD (ACOM) have been upgraded following the upgrade of the Long-Term IDRs of affiliated banks under their 40% major shareholder MUFG. ACOM is viewed as a strategically important subsidiary within the group, as a provider of core consumer financial services. Hence, the IDRs are notched down one level from MUFG banking subsidiaries' IDRs. Any change in the notching approach would likely be driven by changes in MUFG's ability or propensity to support ACOM, including due to changes in ownership levels or strategic importance. The rating actions are: Entities under MHFG MHFG, MHBK, MHTB: - Long-Term Foreign and Local Currency IDRs affirmed at 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating upgraded to 'bbb+' from 'bbb' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' MHCB: - Long-Term Foreign and Local Currency IDRs affirmed at 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating upgraded to 'bbb+' from 'bbb' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' - Senior unsecured debt affirmed at 'A-' Mizuho Capital Investment (USD) 1 Limited - Preferred securities upgraded to 'BB' from 'BB-' Mizuho Financial Group (Cayman) Limited: - Senior subordinated debt (Lower Tier 2 bonds under Basel ll) affirmed at 'BBB+' Entities under SMFG SMFG: - Long-Term Foreign and Local Currency IDRs affirmed at 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating upgraded to 'a-' from 'bbb+' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' SMBC: - Long-Term Foreign and Local Currency IDRs affirmed at 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating upgraded to 'a-' from 'bbb+' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' - Senior unsecured debt affirmed at 'A-' SMBCE: - Long-Term Foreign Currency IDR affirmed at 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Support Rating affirmed at '1' SMFG Preferred Capital GBP 1 Limited, SMFG Preferred Capital USD 1 Limited: - Preferred securities upgraded to 'BB+' from 'BB' Entities under MUFG BTMU: - Long-Term Foreign and Local Currency IDRs upgraded to 'A' from 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating upgraded to 'a' from 'a-' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' - Senior unsecured debt upgraded to 'A' from 'A-' - Senior subordinated debt (Lower Tier 2 bonds under Basel II) upgraded to 'A-' from 'BBB+' MUTB: - Long-Term Foreign and Local Currency IDRs upgraded to 'A' from 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating upgraded to 'a' from 'a-' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' MUFG Capital Finance 1 Limited, MUFG Capital Finance 2 Limited, MUFG Capital Finance 4 Limited and MUFG Capital Finance 5 Limited: - Preferred securities upgraded to 'BBB-' from 'BB+' ACOM: - Long-Term Foreign and Local Currency IDRs upgraded to 'A-' from 'BBB+'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F2' - Support Rating upgraded to '1' from '2' - Senior unsecured debt upgraded to 'A-' from 'BBB+' Entity under Sumitomo Mitsui Trust Group SMTB: - Long-Term Foreign and Local Currency IDRs affirmed at 'A-'; Outlook Stable - Short-Term Foreign and Local Currency IDRs affirmed at 'F1' - Viability Rating affirmed at 'a-' - Support Rating affirmed at '1' - Support Rating Floor affirmed at 'A-' ==================== N E W Z E A L A N D ==================== ALLIED FARMERS: Sells Toxic Loans After Lender Demands Payment -------------------------------------------------------------- Paul McBeth at BusinessDesk reports that Allied Farmers has kept itself alive for now by selling a series of toxic loans for as much as NZ$600,000, after facing a call on debt that had to be satisfied March 4. BusinessDesk relates that the Hawera-based firm sold various loan assets with zero book value to a confidential third party for an immediate payment of NZ$100,000 and up to a further NZ$500,000. The top-ups depend on outcomes that are still unknown, and the net proceeds will be used to reduce debt, the report relays. According to the report, Allied was in talks with various parties Monday, including secured lender Crown Asset Management, to find an acceptable repayment of a NZ$540,000 loan including interest, secured over a NZ$3.75 million loan asset that it hasn't been able to realise. If Allied couldn't come up with an acceptable deal, it faced liquidation, the report notes. BusinessDesk recalls that the call on the loan was made last month, and was followed by the Inland Revenue Department making a statutory demand for NZ$3.7 million in unpaid taxes. Allied is trying to rebuild itself after its disastrous acquisition of financial assets from Hanover and United Finance for NZ$394 million in 2009. It has ring-fenced what's left of the assets in its Allied Farmers Investments unit, which had assets of NZ$25.7 million, according to its first-half accounts obtained by BusinessDesk. About Allied Farmers Based in New Zealand, Allied Farmers Limited (NZE:ALF) -- http://www.alliedfarmers.co.nz/-- is engaged in livestock, real estate, finance, wool brokering and manufacturing (meat and timber). Rural Services comprise livestock, merchandise and real estate operations. The Company's Rural Services activities are carried out in Taranaki, Waikato, King Country and Manawatu. Its Financial Services activities are carried out by Allied Nationwide Finance Limited in Auckland, Wellington and Christchurch. Timber processing comprises the Company's discontinued sawmilling operations. As reported in Troubled Company Reporter-Asia Pacific on March 29, 2012, nzherald.co.nz said the future of Allied Farmers is in doubt after its accounts revealed it needs to sell property, collect money owed to it, and reach an agreement with its rural creditors in order to survive as a going concern. The rural services business, which acquired the assets of Hanover and United Finance in December 2009, revealed its position in half- year accounts filed to the NZX on March 26. The unaudited accounts show the company made a NZ$9 million loss for the six months to December 2011, an improvement on the NZ$20.6 million loss it made in the same prior period. But a note in the accounts also reveals it faces significant challenges to continue operating, said nzherald.co.nz. Allied Farmers Limited reported an unaudited loss of NZ$14.1 million for the year ended June 30, 2012, compared with NZ$40.9 million in 2011. A significant part of this loss, NZ$10.3 million (last year NZ$34.1 million), largely relates to the further impairment of assets acquired from Hanover and United Finance. Also included were NZ$0.7 million costs related to the disposal of the rural merchandise business. ASIA PACIFIC MGMT: In Receivership, 16 Apartments for Tender ------------------------------------------------------------ Luke Balvert at Sunlive News reports that Asia Pacific Management Limited, the original developers of Mount Maunganui's Pacific Apartments on Maunganui Road, has gone into receivership forcing 16 apartments to be put up for tender. Asia Pacific Management Limited went into receivership in November 2012 with Corporate Finance Limited in Auckland appointed the receivers for the 16 residential apartments owned by the developer of the complex completed in 2009, according to Sunlive News. Sixteen Pacific Apartments in Mount Maunganui are up for tender. Realty Services Group Chief Executive Ross Stanway sid that other than the 16 apartments up for tender the rest of the complex apartments are already owned, the report discloses. A number of enquires have been made into the apartments with tenders closing, the report adds. LM FIRST MORTGAGE: Auditors Raise Doubt Over AUD344-Mil. Fund ------------------------------------------------------------- NBR Online reports that the auditors of LM first mortgage fund, an Australian mortgage fund favored by Kiwi investors, said it might go bust. NBR relates that Ernst & Young partner Paula McLuskie said there is "significant uncertainty" whether the LM first mortgage fund, now valued at AUD344 million, can continue as a going concern. In her opinion on the annual report of Kiwi-born Peter Drake's fund, Ms. McLuskie said the scheme's financing facilities expire in June and there is material uncertainty whether it can sell developments for the sums estimated or repay debts in the amounts stated, according to the news agency. NBR notes that Ms. McLuskie said LM is negotiating with external financiers to get enough money to complete developments on which loans and receivables are secured. Forecasted cashflows from these projects are "subject to significant risks", she said. "There is significant uncertainty whether the scheme will be able to complete these projects and realise its assets at the amounts stated in the financial report." Notes to the accounts say: "In the event that funding beyond 30 June 2013 is unable to be obtained from financiers, or cash receipts from assets sales are delayed and/or less than currently envisaged and the scheme is unable to continue to comply with repayment obligations, the scheme may not be able to continue as a going concern." LM's currency protected fund -- a feeder into the first mortgage fund -- has been favored by about 2,000 Kiwi investors, to the tune of AUD82 million, NBR discloses. Mr. Drake's fund, which backs Australian property developments, has been frozen for three years, since the global financial crisis hit. It has 27 loans outstanding, down from 55 in 2009, the report notes. LOMBARD FINANCE: Directors May Face Tougher Sentences ----------------------------------------------------- Hamish Fletcher at The New Zealand Herald reports that four Lombard Finance directors -- including former Justice Ministers Sir Douglas Graham and Bill Jeffries -- could face tougher sentences as their case goes to the Court of Appeal this week. The Herald notes that Messrs. Graham and Jeffries, with fellow Lombard directors Lawrence Bryant and Michael Reeves, were found guilty last year of making untrue statements about Lombard's position in its offer documents in December 2007. In a case brought by the Financial Markets Authority, Messrs. Graham and Bryant last March were sentenced to 300 hours' community service and ordered to pay NZ$100,000 reparation, while Jeffries and Reeves, were sentenced to 400 hours' community service. But all four men are appealing against their convictions and the FMA is also appealing against the sentences, the Herald relays. Both appeals are being heard in Wellington, with proceedings started Monday. The case is expected to run for four days before Justices Anthony Randerson, John Wild, and Christine French, the Herald says. According to the report, FMA chief executive Sean Hughes said the authority was not satisfied with the sentences imposed by Justice Robert Dobson last year but could not comment on the submissions in this week's appeal. About Lombard Finance Lombard Finance & Investments Limited is a wholly owned subsidiary of Lombard Group, a diversified company specializing in the financial services sector offering a number of lending options and providing investment opportunities for its shareholders and investors. Lombard Finance was placed into receivership on April 10, 2008, by its trustee, Perpetual Trust Limited. PricewaterhouseCoopers partners John Fisk and John Waller have been appointed receivers of the company. The receivership also applies to three other subsidiaries of Lombard Group, being Lombard Asset Finance Limited, Lombard Property Holdings Limited and Lombard Asset Finance No 2 Limited. The receivership does not impact on Lombard Group Limited. ================= S I N G A P O R E ================= NUMBER 1: Court to Hear Wind-Up Petition on March 15 ---------------------------------------------------- A petition to wind up the operations of Number 1 Costume Costume Pte Ltd will be heard before the High Court of Singapore on March 15, 2013, at 10:00 a.m. Jack Investment Pte Ltd filed the petition against the company on Feb. 19, 2013. The Petitioner's solicitors are: Bee See & Tay 10 Anson Road #24-11 International Plaza Singapore 079903 PREDIKTOR SINGAPORE: Creditors' Proofs of Debt Due on March 28 -------------------------------------------------------------- Creditors of Prediktor Singapore Pte Ltd, which is in compulsory liquidation, are required to file their proofs of debt by March 28, 2013, to be included in the company's dividend distribution. The company's liquidators are: Chee Yoh Chuang Abuthahir Abdul Gafoor c/o 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 PREMIERE VISIONE: Court to Hear Wind-Up Petition on March 8 ----------------------------------------------------------- A petition to wind up the operations of Premiere Visione Resources Inc. Private Limited will be heard before the High Court of Singapore on March 8, 2013, at 10:00 a.m. Lim Choo Sun filed the petition against the company on Feb. 15, 2013. The Petitioner's solicitors are: Han Wah Teng Allister Lim & Thrumurgan 111 North Bridge Road #11-04 Peninsula Plaza Singapore 179098 PROGEN ENGINEERING: Creditors' Proofs of Debt Due on March 15 ------------------------------------------------------------- Creditors of Progen Engineering Pte Ltd, which is in compulsory liquidation, are required to file their proofs of debt by March 15, 2013, to be included in the company's dividend distribution. The company's liquidators are: Chee Yoh Chuang Lim Lee Meng c/o Stone Forest Corporate Advisory Pte Ltd 8 Wilkie Road #03-08 Wilkie Edge Singapore 228095 SILVIA SHIPTRADE: Court to Hear Wind-Up Petition on March 8 ----------------------------------------------------------- A petition to wind up the operations of Silvia Shiptrade (S) Pte Ltd will be heard before the High Court of Singapore on March 8, 2013, at 10:00 a.m. Birnam Limited filed the petition against the company on Feb. 15, 2013. The Petitioner's solicitors are: Gurbani & Co. 78 Shenton Way #31-02 Singapore 079120 =============== X X X X X X X X =============== * Moody's Releases Comparative Report on Global RMBS Markets ------------------------------------------------------------ The Japanese, Australian, Dutch and UK residential mortgage-backed securities and mortgage markets differ in a number of key ways, says Moody's Investors Service in a Special Comment report entitled "A Primer: Comparing Japanese, Australian, Dutch and UK RMBS and Mortgage Markets." Key differences include, among others, the exposure to bullet repayment risk, use of third-party credit protection, portfolio structure (i.e., dynamic versus static) and the significance of set-off risk. In Moody's view, Dutch and UK interest-only (IO) mortgage loans expose investors to bullet repayment risk because borrowers pay only the interest portion for the entire life of the loan. Conversely, Japanese and Australian IO loans do not expose the borrower to bullet repayment risk because they are typically IO for no more than five years (in Australia) or one year (in Japan) before fully amortizing. Moody's notes that, lenders mortgage insurance (LMI) mitigates credit risk in Australian and Dutch RMBS. However, LMI is not used in the UK, while lenders in Japan obtain a guarantee, generally from a subsidiary. Comparing portfolio structure, Dutch and UK master trust portfolios change on a regular basis as the seller adds new loans to the portfolio. As such, the portfolio can lose the benefits of more seasoned borrowers building equity in their homes over time. Typically, new loans are not added to Australian and Japanese portfolios, the static nature of which leaves them more vulnerable than dynamic portfolios to the performance of any one vintage of mortgage loans. In Moody's view, set-off risk is a more significant risk in Dutch RMBS than the other markets because the tax law encourages the use of IO mortgage loans in combination with repayment vehicles, usually a savings or insurance policy provided by an insurance company. If the insurance company becomes bankrupt, the borrower can set off the value of the policy against the outstanding amount of the mortgage loan (i.e., insurance set-off risk). Over time, this risk increases because the value of the policy increases over time. Moody's will publish a more detailed, in-depth version of this report by the end of the second quarter of 2013. * 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 ***