/raid1/www/Hosts/bankrupt/TCRAP_Public/130321.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, March 21, 2013, Vol. 16, No. 57
Headlines
A U S T R A L I A
MOGS PTY: Court Names Grant Thornton as Provisional Liquidators
MONDELLO FARMS: Placed in Receivership
STARMAID GROUP: Placed in Receivership
WINDSOR FARM: Administrators Seek Expressions of Interest
WINDSOR FARM: Dick Smith May Step In to Save Cannery
* AUSTRALIA: ASIC Reports Record High Insolvencies
C H I N A
TIANNENG POWER: Fitch Assigns 'BB' Issuer Default Rating
TIANNENG POWER: Strong Performance Cues Moody's to Assign Ba3 CFR
* Pricing Reform in Gas Sector No Impact on Margins, Fitch Says
* Moody's Sees Stabilizing Credit Trends for Chinese Firms
H O N G K O N G
GIANT GALAXY: Seng and Lo Step Down as Liquidators
GOLDEN YEAR: Placed Under Voluntary Wind-Up Proceedings
GOLDWISE LEATHERWARE: Creditors' Proofs of Debt Due April 30
GOOD QUALITY: Seng and Lo Step Down as Liquidators
GOODMAN FANLING: Cowley and Mitchell Step Down as Liquidators
HK JOCKEY: Members' Final General Meetings Set April 17
HK WISDOM: Final Meetings Set April 10
HOSPIRA HK: Lai and Haughey Step Down as Liquidators
JIAN SING: Creditors' Proofs of Debt Due March 28
JUMBO REGENT: Creditors' Proofs of Debt Due April 9
KARWIN GROUP: Members' Final Meetings Set April 9
KISWOOD HOLDINGS: Commences Wind-Up Proceedings
LIPMAR HERO: Creditors' Proofs of Debt Due April 3
I N D I A
APARNA CONSTRUCTIONS: CRISIL Reaffirms 'BB+' INR2.17B Loan Rating
JUGAL KISHORE: CRISIL Reaffirms 'BB' Rating on INR40MM Loan
NSN REDDY: CRISIL Downgrades Rating on INR260MM Loan to 'D'
PANNALAL COLD: CRISIL Assigns 'D' Ratings to INR57.1MM Loans
PARK HEALTH: CRISIL Cuts Ratings on INR180MM Loans to 'D'
PC JAIN: CRISIL Reaffirms 'BB-' Rating on INR45MM Loans
RENAATUS PROJECTS: CRISIL Puts 'BB-' Ratings on INR323.4MM Loans
SHREE SHYAM: CRISIL Lowers Rating on INR70MM Loans to 'BB'
SREE ANJANEYA: CRISIL Lowers Rating on INR48.8MM Loan to 'D'
TARAK NATH: CRISIL Upgrades Rating on INR70MM Loans From 'D'
UNITED WIRE: CRISIL Reaffirms 'B+' Rating on INR100MM Loans
J A P A N
PANASONIC CORP: To End Plasma TV Production in Fiscal 2014
N E W Z E A L A N D
AIR VANUATU: Technically Insolvent, CEO Says
LM INVESTMENT: Administrators Appointed to Frozen Mortgage Fund
P H I L I P P I N E S
EXPORT AND INDUSTRY: PDIC Declares Failed Re-Bidding For Rehab
S I N G A P O R E
PREMIERE VISIONE: Court Enters Wind-Up Order
REFLECT GEOPHYSICAL: Judicial Management Bid Hearing on April 5
UNIVERSAL ASSETS: Creditors Get 100% Recovery on Claims
S O U T H K O R E A
SSANGYONG ENG'G: Banks Agree to KRW170-Bil. Debt-Equity Swap
* Fitch Says Korean Telcos Margin Slump May Result to Rating Cuts
- - - - -
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A U S T R A L I A
=================
MOGS PTY: Court Names Grant Thornton as Provisional Liquidators
---------------------------------------------------------------
The Australian Securities & Investments Commission has obtained
further court orders in its ongoing investigation into two
Queensland-based self-managed superannuation fund advice companies
accused of misleading investors about their investments.
ASIC's investigation has so far found Royale Capital Pty Ltd (now
known as ACN 143 832 053) and ActiveSuper Pty Ltd raised
AUD4.75 million from more than 200 investors.
On March 19, 2013, following a hearing on Feb. 26, 2013, the
Federal Court of Australia made orders appointing Michael Gerrard
McCann and Robert Graham Killer of Grant Thornton as joint and
several provisional liquidators to MOGS Pty Ltd.
Previously, following a hearing on Dec. 3, 2012, orders were made
appointing provisional liquidators to companies in Australia, the
British Virgin Islands (BVI) and the Cayman Islands, and several
persons associated with the companies were prevented from leaving
Australia.
On Dec. 3, 2012, Damian Templeton and Darren Lewis of KPMG were
appointed joint provisional liquidators to:
-- Syndicated Property Group Ltd;
-- Worldwide Property Opportunities Ltd; and
-- Cayco Management (registration number Cayman Islands
CR-265977).
The provisional liquidators' role is to secure the assets of the
various companies and establish the current financial position of
each of them before reporting back to the court.
In addition, the following persons were added to the proceedings:
-- Jeffrey George, the director of SPG, WPO and Cayco
-- Graeme Sydney Stonehouse and Ms Marina Ulrika Lovisa Gore,
-- the directors of MOGS
-- Mark Gordon Adamson, a former director of MOGS; and
-- Craig Kirrin Gore, the husband of Marina Gore.
On December 3, the court also made orders preventing
Mr. Stonehouse, Mr. Gore, Mr. Adamson and Ms. Gore from leaving
Australia. These orders continue.
The matter returns to Court on Aug. 26, 2013.
In November 2012, ASIC obtained ex parte court orders appointing
Mr. Darren Lewis and Mr. Damien Templeton of KPMG provisional
liquidators to four companies based in the United States. These
companies were collectively known as LLC Companies.
In July 2012, ASIC obtained orders restraining Royale and Active,
as well as their directors Justin Gibson and Jason Burrows, from
dealing with any real properties purchased with their clients'
self-managed superannuation funds.
MONDELLO FARMS: Placed in Receivership
--------------------------------------
Cameron England at news.com.au reports that potato company
Mondello Farms has been placed in receivership.
Restructuring and corporate advisory firm McGrathNicol was
appointed as receivers following Heard Phillips being appointed
administrators of the company, according to news.com.au.
"We will continue the company's operations as normal whilst an
urgent assessment is undertaken of the requirements for the
management and harvesting of existing crops and preparations were
made for planting the winter crop. . . . "We will be working
closely with contract growers, employees, customers, critical
suppliers and the Mondello Farms management team over the next two
weeks to stabilise the business operations, including reviewing
existing supply and distribution arrangements. . . . It is too
early to fully determine all the reasons for Mondello Farms
failure, but it is noted that the company was under-capitalised
and had incurred significant operating losses from which it was
not able to recover when industry prices for potatoes fell in
2011/2012. . . . The Mondello Farms business will soon be taken to
market for a sale on a going-concern basis," the report quoted
McGrathNicol partner Sam Davies as saying.
Mondello Farms is a large scale wholesaler of processed potatoes
in the national potato industry and employs about 140 staff in its
South Australian and Victorian operations.
Mondello Farms' operations are comprised of potatoes grown on
owned and leased land in South Australia and Victoria, potatoes
sourced from third party growers, a substantial processing
packaging facility.
STARMAID GROUP: Placed in Receivership
--------------------------------------
SmartCompany reports that the Starmaid Group has been placed in
receivership in another blow to the manufacturing sector. PPB
Advisory has been appointed as receivers and managers over
Starmaid Group, Starmaid Housewares and Star Maid International,
the report says.
PPB Advisory is calling for expressions of interest in the
business, according to the report.
Michael McLean, chief performance officer at manufacturing
advisory firm Manufacturship, told SmartCompany the strong
Australian dollar meant plastics manufacturers have to cope with
cheaper imports.
"We have a strong economy, we have 3.1% economic growth and our
strong dollar means we are one of the few nations with AAA credit
rating," SmartCompany quotes Mr. McLean as saying. "We have to
get over that. It is a strong dollar and that is the way it is
going to be."
However, Mr. McLean said the strong Australian dollar has assisted
some manufacturers who create plastic products, the report notes.
Starmaid Group manufactures and wholesales storage products and
uses premium food-grade materials to manufacture over 500 plastic
houseware and professional products across 50 brands, including
Fresh Seal, Clea and Hobbibox.
WINDSOR FARM: Administrators Seek Expressions of Interest
---------------------------------------------------------
dissolve.com.au reports that Grant Thornton, the Voluntary
Administrator of Windsor Farm Foods Group Limited, invites
expressions of interest for the purchase of a renowned and well-
established food processing and packaging business based in Cwora
and a dry goods repackaging and blender of spices business based
in Sydney.
The sale includes land, building and cannery equipment in Cowra,
stock in Sydney and Cowra, stock in Sydney and Cowra, and
intellecual property, the report relates.
Expression of interest closes on March 28, at 5:00 p.m.,
dissolve.com.au reports
About Windsor Farm
Windsor Farm Foods Group's principal activities comprise the
canning of food products for the retail and food service industry,
and the preparation and distribution of dry food products to the
food service industry and manufacturing.
Grant Thornton Recovery and Reorganisation Partners, Trevor
Pogroske, Said Jahani and Paul Billingham were appointed Joint and
Several Voluntary Administrators of Windsor Farm Foods Group
Limited, Windsor Farm Foods Pty Limited, Cowra Export Packers
Limited and Cowra Canners Pty Limited on March 12, 2013.
The Administrators will conduct investigations and review the
business in an effort to try to sell the business and realise
assets for the benefit of all creditors.
WINDSOR FARM: Dick Smith May Step In to Save Cannery
----------------------------------------------------
Dugald Saunders at ABC News reports that entreprenuer Dick Smith
may step in to save the Windsor Farm cannery at Cowra, which went
into voluntary administration last week.
ABC News notes that the Windsor Farms cannery in Cowra was last
week placed in voluntary administration, leaving 70 people out of
work and creating uncertainty for the primary producers which
supplied the factory. However there is some hope for the
country's last Australian-owned cannery.
According to the report, local beetroot farmer Ed Fagan said he's
spoken to Dick Smith's representatives, and is hopeful the cannery
will be operational again.
"Dick Smith's office has told me they're committed to getting what
we have here processed," the report quotes Mr. Fagan as saying.
"Where and how is something I'm sure people are working through."
Mr. Smith was in the United States when news of the cannery's
closure broke, the report says.
"I haven't been able to get onto the issue yet, other than knowing
it's going to be quite difficult to do something, because there
are huge debts and the factory itself is quite old," ABC News
quotes Mr. Smith as saying. "But the factory I understand still
has a lot of orders, both from us and a huge order from Aldi,
which is a contract for two years."
ABC News relates that Mr. Smith said pressure from major retailers
to bring down the price of canned foods like beetroot is making it
harder for processors to stay in business.
About Windsor Farm
Windsor Farm Foods Group's principal activities comprise the
canning of food products for the retail and food service industry,
and the preparation and distribution of dry food products to the
food service industry and manufacturing.
Grant Thornton Recovery and Reorganisation Partners, Trevor
Pogroske, Said Jahani and Paul Billingham were appointed Joint and
Several Voluntary Administrators of Windsor Farm Foods Group
Limited, Windsor Farm Foods Pty Limited, Cowra Export Packers
Limited and Cowra Canners Pty Limited on March 12, 2013.
The administrators will conduct investigations and review the
business in an effort to try to sell the business and realise
assets for the benefit of all creditors.
* AUSTRALIA: ASIC Reports Record High Insolvencies
--------------------------------------------------
Steve Lewis and Phil Jacob at The Daily Telegraph report that the
Australian Securities & Investments Commission revealed that
insolvencies have hit a record high over the past 12 months, led
by widespread failures in manufacturing and construction, which
accounted for almost one-fifth of collapses.
The new data from ASIC showed there were 10,632 company collapses
for the 12 months to March 1 -- averaging 886 a month -- with the
number of firms being placed in administration more than 12%
higher than during the global financial crisis, according to The
Daily Telegraph.
While the high Australian dollar is seen as the main factor behind
manufacturing closures, experts said the carbon tax is adding to
increasing cost burdens for many firms struggling to stay afloat,
The Daily Telegraph notes.
=========
C H I N A
=========
TIANNENG POWER: Fitch Assigns 'BB' Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has assigned Tianneng Power International Limited, a
Chinese manufacturer of lead-acid motive batteries, a Long-Term
Foreign Currency Issuer Default Rating (IDR) of 'BB' with Stable
Outlook, and a senior unsecured rating of 'BB'.
Fitch has also assigned Tianneng's proposed USD notes an expected
rating of 'BB'(EXP). The final ratings are contingent upon receipt
of documents conforming to information already received.
Key Rating Drivers
Small scale constrains ratings: Tianneng's ratings are constrained
by its small scale (an estimated EBITDA of around USD185m in 2012)
and reliance on a single niche product to generate almost its
entire revenue.
Leader with established network: Tianneng is a leading Chinese
manufacturer of lead-acid motive battery used on electric bikes
with a 28% market share in 2012, due to its established nationwide
distribution and services network with over 1,300 distributors.
Tianneng started to build this network in early 1998, when it
started its operations, and it would be difficult for competitors
to replicate this in a short period of time.
Demand remains strong: Electric bikes, because of their low cost
and environment-friendliness, are popular for short-distance
transportation in both urban and suburban areas in China. There
were approximately 141 million electric bikes in China at end-2012
(compared with 2.2 million at end-2002) and this number is
expected to grow by more than 8% annually by 2020, according to
industry research. The Stable Outlook is supported by the long-
term growth of electric bike usage in China, which drives demand
for new and replacement batteries.
Dominant and mature technology: Lead-acid motive battery, a mature
technology, dominates the Chinese electric bike market due to its
low cost, safety stability, and high recyclability. Total battery
sales in China in 2012 were 315 million units with two-thirds of
that from replacement demand. This dominance allows producers such
as Tianneng to pass on price volatility of the main production
input, lead, to buyers, leading to stable margins. Tianneng's
EBITDA margins have remained well above 10% - the minimum
threshold consistent with the current ratings - over the last five
years.
Regulations support market leaders: To eliminate lead pollution
generated during the manufacturing process, the Chinese government
has since mid-2011 been phasing out smaller and underdeveloped
lead-acid battery production facilities. This accelerates industry
consolidation and benefits industry leaders such as Tianneng,
whose market share grew to 28% in 2012 from 15.7% in 2010.
Low leverage: Tianneng maintained funds from operations (FFO)-
adjusted net leverage below 1.0x until end-2011, but Fitch
estimates that this number will fluctuate around 1.5x over the
next three years, peaking in 2013 at just under 2.0x. This is due
to the company's rapid expansion of production and lead recycling
capacity to cater to increased sales growth. The company
outsourced nearly 20% of its production in 2011 and 2012, because
demand exceeded its production capacity. As this results in lower
margins Fitch does not believe outsourcing to be a sustainable
option.
Negative free cash flow: In common with many of its Chinese peers,
Tianneng has been consistently generating negative free cash flow
due to its sustained large capex programme. Fitch does not expect
free cash flow to turn positive before 2016, particularly given
that capex might be higher if market demand remains strong.
However, Tianneng has the flexibility to decelerate capex if
demand falls below expectations.
Rating Sensitivities
Positive: Future developments that may collectively lead to
positive rating action include:
- A materially increase in scale in terms of annual EBITDA
- Neutral free cash flow generation
- EBITDA margin above 15% on a sustained basis
- FFO-adjusted net leverage below 1.0x on a sustained basis
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
- Loss of current position in core markets
- EBITDA margin below 10% on a sustained basis
- FFO-adjusted net leverage above 2.0x on a sustained basis
TIANNENG POWER: Strong Performance Cues Moody's to Assign Ba3 CFR
-----------------------------------------------------------------
Moody's Investors Service assigned a first-time Ba3 corporate
family rating to Tianneng Power International Limited and a Ba3
senior unsecured debt rating to its proposed USD notes.
The ratings outlook is stable.
Ratings Rationale:
"The Ba3 rating reflects Tianneng Power's established track record
in the industry, strong industry position, good brand name, and
extensive distribution network," says Jiming Zou, a Moody's
Analyst, and the International Lead Analyst for Tianneng Power.
Founded in 1986, the company is among the top manufacturers of
lead acid batteries for electric bicycles in China, and serves
both primary market addressing new vehicle installation and
secondary market addressing demand from replacement.
Its large scale which supports its strong market position,
includes an annual production capacity of 80 million units from
eight facilities in four provinces.
Its strong brand name -- which is especially important for the
secondary market -- is reinforced by its large network of 1,314
distributors, serving 80,000 sales points, across China.
"The sizeable extent of the electric bicycle market in China,
which supports Tianneng Power's business growth in the medium
term, is also a driver of the company's ratings," says Zou.
Tianneng Power enjoyed strong sales growth in the last 4 years
when sales increased by more than 300%. According to the China
Automotive Technology & Research Center, electric bicycle
ownership in China was around 140 million units at end-2012.
Their popularity is likely to continue because they are
affordable, environmentally friendly, energy efficient, and
suitable for traffic-congested urban areas.
"The ratings have factored in Tianneng Power's competitive
position and relatively high operating standards in an industry
where the government is seeking consolidation," says Ping Luo, a
Moody's Vice President and Senior Analyst.
Tianneng Power's sales growth in the past few years has been
helped by government measures to close manufacturing facilities
below environmental standards. According to the Ministry of
Environmental Protection in China, about 1,500 plants closed or
stopped production in the last 2 years.
In contrast, Tianneng Power -- which is able to meet the standards
-- has taken over some of the market shares of the eliminated
players.
"Furthermore, despite high growth, the company has sustained a
strong financial profile which supports its Ba3 rating" says Luo,
who is also the Local Market Analyst for Tianneng Power.
Tianneng Power showed a strong financial profile from 2009 to 1H
2012 with debt/EBITDA below 2x and EBITDA/interest well above 10x.
Moody's notes that it will need to expand capacity to manage its
larger market share, thereby increasing debt leverage. If it
maintains a disciplined approach to expansion, then its credit
metrics -- debt/EBITDA at 2x - 3x, and EBITDA/interest at 5.5x -
7.5x in the next two years -- will continue to support the
company's Ba3 rating.
"At the same time, the Ba3 also reflects single-product risk,"
says Luo.
Tianneng Power's sales of lead acid batteries for electric
bicycles account for over 90% of its revenue. Any change in
government policy over the use of electric bicycles or the
emergence of new affordable batteries could challenge its business
and market position.
Moody's believes that the current large number of electric bicycle
users, who include many in low-income groups, may make it
difficult for the authorities to eliminate such vehicles until an
alternative is available. In addition, they have a strong
advantage in that they do not generate pollution.
Tianneng Power continues to spend on research and development.
Thus, it is appropriately managing the obsolescent risk of lead
acid batteries.
The Ba3 rating also considers the challenges for its operations
and costs from stricter environmental measures and the cyclical
lead price.
Tianneng Power shows a weak capital structure with a high level of
short-term debt -- over 90% of total debt in December 2012 --
thereby exposing the company to high refinancing risk.
In addition, its fast expansion has resulted in large working
capital requirements that pressure operating cash flow. Thus, its
liquidity position is weak.
But Moody's expects the company to refinance its maturing domestic
borrowings, given its strong market position and track record of
profitable operations. Its proposed notes issuance will also
strengthen its liquidity position.
Tianneng Power has aggregate secured debt and subsidiary debt that
exceed 15% of its total assets -- 39% in June 2012 -- meaning that
subordination risk is high for unsecured debt at the parent
company level.
But it plans to use part of the proceeds from the proposed USD
notes to reduce subsidiary debt, such that priority debts will
fall to 15% of total assets. Thus, Moody's has not applied
notching to the notes. Should it not achieve this reduction in
subsidiary debt, then the rating of the notes would be under
downward pressure.
The rating outlook is stable, based upon Moody's expectation that
Tianneng Power maintains a strong market position, exercises a
disciplined approach to expansion and can refinance its domestic
short-term debts.
Upward rating pressure is limited in the near term due to the
company's current weak capital structure and lack of product
diversity. However, positive rating pressure could arise if the
company (1) improves its liquidity position through reducing its
refinancing risk and improving its working capital management; (2)
maintains its strong market position; (3) increases product
diversity; and (4) maintains a stable financial profile, while
also expanding.
On the other hand, downward rating pressure could emerge if the
company (1) shows weak liquidity -- a declining cash balance and
no improvement in its capital structure; (2) suffers declining
sales or profit margins; (3) fails to comply with government
environmental standards; or (4) engages in aggressive debt-funded
acquisitions or expansion, therefore impairing its financial
position.
Credit metrics indicating downgrade pressure include debt/EBITDA
above 4x -- 4.5x and EBITDA/Interest below 4.0x -- 4.5x on a
consistent basis.
The principal methodology used in this rating was the Global
Manufacturing Industry Methodology published in December 2010.
Tianneng Power International Limited is principally engaged in the
production and sale of lead acid batteries for electric bicycles.
The company was founded in 1986 and is headquartered in Zhejiang,
China. The company has been listed on the Hong Kong Stock Exchange
since 2007.
* Pricing Reform in Gas Sector No Impact on Margins, Fitch Says
----------------------------------------------------------------
Fitch Ratings says pricing reform in the Chinese gas sector is
unlikely to materially impact gas distributors' margins, and low
gas prices in the US are unlikely to materially influence the
price at which gas is transacted in the Asia-Pacific (APAC) region
in the medium-term. These were among the key points of discussion
during recent round-table meetings with international investors
based in Hong Kong and Singapore.
Investors cited China's gas pricing reforms and their implications
for China's city gas distributors as a key uncertainty in the APAC
energy and utilities sector. Fitch expects China to gradually
implement pricing reform in the energy sector, including how gas
is priced domestically. Currently gas prices are controlled by the
state which has led China National Petroleum Corporation (CNPC,
A+/Stable) to generate losses due to high costs of natural and
liquefied natural gas (LNG) imports.
Fitch believes demand for natural gas from industries and
households will continue to be strong notwithstanding likely
higher costs to consumers following the price reforms. This is
because natural gas is substantially more cost-effective than
alternative sources. At the same time, Fitch believes that city
gas companies should be able to pass on cost increases to
consumers leaving the profitability of gas supply operations
largely intact, although some compression of margins can be
expected initially.
Investors also raised the possibility for APAC gas prices to
decouple from global oil prices in the medium term. Fitch believes
there is increased pressure from buyers to link APAC gas prices to
a broader benchmark that captures significantly lower gas prices
currently available in the US - around USD4 per mmbtu (million
British Thermal units) versus USD mid-teens in APAC.
Fitch expects APAC gas transactions to gradually track a "basket
of global gas prices", but does not expect a material change to
APAC gas prices in the medium-term, particularly not before the
region starts to see meaningful quantities of shale gas exports
from the US. Export of gas from the US is facing a number of
headwinds including opposition from environmental groups and slow
government approvals to convert unused gas import terminals into
gas liquefaction facilities. Higher gas exports from Russia to
Asia over the medium-term will also exert some downward pressure
on gas prices in APAC.
* Moody's Sees Stabilizing Credit Trends for Chinese Firms
----------------------------------------------------------
Moody's Investors Service reports that credit trends for Chinese
corporates are likely to stabilize in 2013 because of the
improvement in the domestic economy and the continuation of a
benign liquidity environment.
"We expect to take fewer negative rating actions on Chinese
companies in 2013 than in 2012, as the revenues and earnings of
most firms will recover. This view is based on expectations for
gradual improvements in the fundamentals of some industry sectors,
against the backdrop of our central macroeconomic scenario," says
Kai Hu, a Moody's Vice President and Senior Analyst.
According to the report, Moody's central macroeconomic scenario
now forecasts GDP growth for China at the current level of 7.5%-
8.5% in 2013, up by 0.5 percentage point from Moody's previous
forecast, and in the range of 7.0%-8.0% in 2014.
"In addition, the liquidity environment will, as indicated, remain
favorable, thereby supporting the refinancing and investment needs
of rated Chinese companies," he adds.
Hu was speaking on a just-released Moody's report titled, "Chinese
Corporate Credit Trends to Stabilize on Improving Economy." He is
the lead author of the report.
Increased state-directed investments in infrastructure and the
stabilization of the property market have boosted the economic
recovery in the Mainland and have helped offset weak growth in
exports.
These two factors will remain the major drivers of growth in 2013,
directly benefiting companies in related sectors, such as
property, steel, building materials and construction.
Issuers in these sectors -- which faced the bulk of Moody's
negative rating actions on Chinese firms in 2012-- will see their
revenues and earnings recover from the lows in seen 2012.
The government's expansionary fiscal policies and its continued
efforts to expand urbanization will also fuel spending on
infrastructure. At the same time, Moody's expects property sales
to grow in single-digit percentage terms in China, as developers
shift towards mass-market housing to meet increasing demand.
Companies in the steel, building materials and construction
sectors, which derive a high proportion of their revenues from
infrastructure projects and property construction, will see a
modest improvement in their revenues and earnings in 2013,
although their financials will remain weak.
In addition, the increase in demand for construction-related
commodities, such as steel and cement, will alleviate the pressure
on selling prices and, in turn, lift the profit margins of those
issuers exposed to this segment. The recovery will, however, be
limited by lingering overcapacity problems in these sectors.
Moody's also expects energy consumption in China to increase from
2012 levels, driven by the rebound in industrial output.
"The positive impact of the modest growth in property sales and
higher infrastructure investment will filter down to energy-
related industries, such as oil & gas, power utilities and
mining," says Hu.
Furthermore, a steady increase in domestic consumption will
support sectors such as retail, consumer goods, TMT (telecom,
media and technology) and autos.
The report also notes that investment-grade companies -- mainly
comprising state-owned enterprises -- will continue to enjoy
favorable access to the bank loans and capital markets, while the
refinancing risk for high-yield companies will remain manageable
through to 2016.
Nevertheless, many Chinese issuers share some broad risks in the
near-to-medium term. These include: (1) generally weak liquidity
management and asset-liability structures, weak corporate
governance, and low transparency; (2) challenges and uncertainties
associated with the reform and rebalancing of the Chinese economy;
and (3) shifts in the global competitiveness of Chinese
manufacturers as both wages and skills increase.
================
H O N G K O N G
================
GIANT GALAXY: Seng and Lo Step Down as Liquidators
--------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Giant Galaxy Limited on March 2, 2013.
GOLDEN YEAR: Placed Under Voluntary Wind-Up Proceedings
-------------------------------------------------------
At an extraordinary general meeting held on March 1, 2013,
creditors of Golden Year Limited resolved to voluntarily wind up
the company's operations.
The company's liquidator is:
Wong Sun Keung
21/F, Tung Hip Commercial Building
248 Des Voeux Road
Central, Hong Kong
GOLDWISE LEATHERWARE: Creditors' Proofs of Debt Due April 30
------------------------------------------------------------
Creditors of Goldwise Leatherware (MFG.) Company Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by April 30, 2013, to be included in the company's
dividend distribution.
The company's liquidator is:
Ha Man Kit Marcus
Room 1402, Wanchai Central Building
89 Lockhart Road
Wan Chai, Hong Kong
GOOD QUALITY: Seng and Lo Step Down as Liquidators
--------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Good Quality Enterprises Limited on March 2, 2013.
GOODMAN FANLING: Cowley and Mitchell Step Down as Liquidators
-------------------------------------------------------------
Patrick Cowley and Paul Edward Mitchell stepped down as
liquidators of Goodman Fanling Investments No. 1 Limited on
Jan. 24, 2013.
HK JOCKEY: Members' Final General Meetings Set April 17
-------------------------------------------------------
Members of Hong Kong Jockey Club Institute of Chinese Medicine
Limited will hold their Final general meetings on April 17, 2013,
at 11:00 a.m., at 62/F, One Island East, 18 Westlands Road, Island
East, in Hong Kong.
At the meeting, Stephen Liu Yiu Keung and Koo Chi Sum, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.
HK WISDOM: Final Meetings Set April 10
--------------------------------------
Members and creditors of Hong Kong Wisdom Holding Limited will
hold their Final meetings on April 10, 2013, at 11:00 a.m., and
11:30 a.m., respectively at Unit 2105, 21/F, Exchange Tower, 33
Wang Chiu Road, Kowloon Bay, Kowloon, in Hong Kong.
At the meeting, Lam Tin Faat, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HOSPIRA HK: Lai and Haughey Step Down as Liquidators
----------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Hospira Hong Kong Limited on Feb. 27, 2013.
JIAN SING: Creditors' Proofs of Debt Due March 28
-------------------------------------------------
Creditors of Jian Sing Nominees Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 28, 2013, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Feb. 23, 2013.
The company's liquidators are:
Yeung Betty Yuen
Ho Siu Pik
Level 28, Three Pacific Place
1 Queen's Road East
Hong Kong
JUMBO REGENT: Creditors' Proofs of Debt Due April 9
---------------------------------------------------
Creditors of Jumbo Regent Development Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by April 9, 2013, to be included in the company's dividend
distribution.
The company's liquidator is:
Liu Kam Lung
Unit B, 12/F
Success Commercial Building
245 Hennessy Road
Wanchai, Hong Kong
KARWIN GROUP: Members' Final Meetings Set April 9
-------------------------------------------------
Members of Karwin Group Limited will hold their Final meetings on
April 9, 2013, at 4:00 p.m., at 6/F, Kwan Chart Tower, 6 Tonnochy
Road, Wanchai, in Hong Kong.
At the meeting, Puen Wing Fai, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
KISWOOD HOLDINGS: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Kiswood Holdings Limited, on Feb. 27, 2013, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Hue Yat Lun Sansom
Room 1902, 19/F
Henan Building, 90-92 Jaffe Road
Wanchai, Hong Kong
LIPMAR HERO: Creditors' Proofs of Debt Due April 3
--------------------------------------------------
Creditors of Lipmar Hero Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by April 3,
2013, to be included in the company's dividend distribution.
The company's liquidators are:
Kennic Lai Hang Lui
Yuen Tsz Chun Frank
5th Floor, Ho Lee commercial Building
38-44 D'Aguilar Street
Central, Hong Kong
=========
I N D I A
=========
APARNA CONSTRUCTIONS: CRISIL Reaffirms 'BB+' INR2.17B Loan Rating
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Aparna Constructions
and Estates Pvt Ltd continue to reflect ACEPL's strong market
position, its promoters' sound track record in the real estate
industry, and its above-average financial risk profile marked by
healthy net worth and robust debt protection metrics. These rating
strengths are partially offset by ACEPL's exposure to risks
related to timely completion and saleability of its large ongoing
projects, and to the cyclicality inherent in the Indian real
estate industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 50.0 CRISIL A4+ (Reaffirmed)
Secured Overdraft 350.0 CRISIL BB+/Stable (Reaffirmed)
Facility
Cash Credit 25.0 CRISIL BB+/Stable (Reaffirmed)
Term Loan 1,745.0 CRISIL BB+/Stable (Reaffirmed)
Working Capital 50.0 CRISIL BB+/Stable (Reaffirmed)
Demand Loan
Outlook: Stable
CRISIL believes that ACEPL will continue to benefit over the
medium term from its strong position in the Hyderabad (Andhra
Pradesh) real estate market. The outlook may be revised to
'Positive' if ACEPL generates larger-than-expected cash flows,
most likely driven by higher than expected bookings. Conversely,
the outlook may be revised to 'Negative' if there are delays in
execution or if the company witnesses lower booking rates, for its
large projects or if ACEPL contracts a larger-than-expected
quantum of debt for its ongoing/future projects, thereby
considerably weakening its financial risk profile, particularly
its liquidity.
ACEPL was incorporated in 1996 and promoted by Mr. S S Reddy and
Mr. C V Reddy. The company executes real estate projects in
Hyderabad. Currently, ACEPL has six projects under various stages
of implementation, with a total saleable area of 5.6 million sq
ft. Out of these projects; three commenced from the second half of
2012 and are expected to be completed by September 2016.
For 2011-12 (refers to financial year, April 1 to March 31), ACEPL
reported a profit after tax (PAT) of INR374 million on an
operating income of INR2851 million, against a PAT of INR249
million on an operating income of INR2204 million for 2010-11.
JUGAL KISHORE: CRISIL Reaffirms 'BB' Rating on INR40MM Loan
-----------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Jugal Kishore
Mahanta continue to reflect its moderate financial risk profile,
marked by low gearing and robust debt protection metrics, and
healthy business prospects in the civil construction sector in
Assam. These rating strengths are partially offset by JKM's small
scale of operations, limited revenue diversity, and large working
capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 110 CRISIL A4+ (Reaffirmed)
Cash Credit 40 CRISIL BB/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that JKM will benefit over the near to medium term
from the healthy growth prospects for the infrastructure and
construction sector in Assam. The outlook may be revised to
'Positive' in case of significant improvement in its revenue
profile while sustaining its operating margin and maintaining its
financial risk profile. Conversely, the outlook may be revised to
'Negative' in case of lower than expected revenues or
profitability or larger than expected working capital requirements
leading to deterioration in financial risk profile.
Update
JKMs net sales have grown by around 30 per cent to INR356.3
million in 2011-12 (refers to financial year, April 1 to
March 31) from INR274.2 million in 2010-11. The growth in revenues
is largely on account of steady order execution. JKM has achieved
sales of INR100 million for the nine months ended December 31,
2012. Sales have been subdued in the nine months ended December
31, 2012, due to heavy rains in Assam during 2012-13, limiting
firm's order execution. However, with the firm having healthy
orderbook of around INR634 million to be executed over the next
two years, it is expected to maintain its present scale of
operations.
JKM reported operating margins of 10.7 per cent for 2011-12,
compared to 16.7 per cent for 2010-11. The operating margins have
been varied in the range of 7.7 per cent to 16.4 per cent over the
past five years as firm is exposed to raw material price
volatility, as there is no price escalation clause in its
contracts. Hence, firm's profitability is expected to remain
vulnerable to volatility in key raw material prices primarily
bitumen.
JKM has not incurred any capital expenditure (capex) in 2011-12,
as firm had incurred major capex during the previous two years to
the tune of INR108 million to purchase various construction
equipments. However, firm is expected to incur capex of around
INR22 million in 2012-13, as it has purchased construction
equipments such as bulldozer and excavator. Firm's future capex
will remain contingent on its order inflow.
JKM's operations are working capital intensive on account of high
inventory levels and significant security deposits. Firm has
reported gross current asset (GCA) of 218 days as on March 31,
2012, which is lower than 260 days reported as on March 31, 2011.
Firm has reported high inventory levels of 88 days as on March 31,
2012. Firm maintains working-in-progress inventory of around 80-90
days in order to ensure timely execution of contracts. The high
working capital requirements are also on account of security
deposits of INR27.5 million maintained as on March 31, 2012. As on
March 31, 2012, debtors of the company stood at 74 days, compared
to 60 days as on March 31, 2011. CRISIL believes that JKM's
operations will continue to remain working capital intensive over
the near to medium term.
JKM has healthy financial risk profile, marked by a moderate net
worth, conservative gearing, and healthy debt protection metrics.
The company had moderate net worth of INR125.0 million as on March
31, 2012. Further, company has conservative gearing of 0.34 times,
as on March 31, 2012. The gearing is expected to remain healthy in
the absence of any debt funded capital expenditure over the near
to medium term. JKM has healthy debt protection metrics with
interest coverage ratio of 3.6 times and net cash accruals to
total debt ratio 64 per cent for 2011-12. The debt protection
metrics are expected to remain healthy over the medium term, with
company expected to maintain its existing scale of operations
resulting in healthy cash accruals.
JKM has adequate liquidity, marked by healthy net cash accruals
against which it has modest term debt repayment obligations,
sufficient headroom in bank facilities, and healthy current ratio.
The company reported a healthy current ratio of 2.1 times as on
March 31, 2012. JKM funds its working capital requirements through
cash credit facilities of INR40 million, which were moderately
utilised, at an average of 47 per cent for the 12 months ended
December 2012.
JKM generated net cash accruals of INR27.1 million in 2011-12, and
is expected to generate healthy net cash accruals over the medium
term against which it has term debt repayment obligations of
INR10.0 million over the next two years. The company had an
unencumbered cash and bank balance of around INR30 million as on
March 31, 2012.
JKM reported a profit after tax (PAT) of INR9.4 million on net
sales of INR356.3 million for 2011-12 (refers to financial year,
April 1 to March 31), as against a PAT of INR8.4 million on net
sales of INR274.2 million for 2010-11.
Jugal Kishore Mahanta, based out of Dibrugarh in Assam, was
established in 2000 by Mr. Jugal Kishore Mahanta as proprietorship
firm. JKM is engaged in civil and infrastructure construction
primarily in the roads and highways segments.
NSN REDDY: CRISIL Downgrades Rating on INR260MM Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of NSN Reddy
Rice Industry to 'CRISIL D' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 260 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The rating downgrade reflects instances of delays in repayment of
term debt obligations; the delays have been caused by the firm's
weak liquidity resulting from large working capital requirements.
NSN also has a moderate financial risk profile constrained by weak
debt protection metrics, and the operating margin of the firm is
exposed to adverse regulatory changes and volatility in raw
material prices. The firm, however, benefits from the extensive
industry experience of NSN's partners and largely assured off take
from Food Corporation of India.
Set up in 2006 as a partnership firm in Kakinada (Andhra Pradesh)
by Mr. N.Bheemeshwar Reddy, Mrs. Prasanna Lakshmi, Mr.
N.Satyanarana Reddy, and Mr. N.Suryanarayana Reddy, NSN mills and
processes paddy into raw and parboiled rice, rice bran, broken
rice, and husk. It has installed paddy milling capacity of 15
tonnes per hour (tph) for parboiled rice and 10 tph for raw rice.
Mr. N.Satyanarana Reddy (father of Mr. N Bheemeshwar Reddy) and
Mr. N.Suryanarayana Reddy (brother of Mr. N Bheemeshwar Reddy)
left the firm in 2011; the firm is currently managed by Mr.
N.Bheemeshwar Reddy and his wife, Mrs. Prasanna Lakshmi. The
promoters have nearly four decades of experience in the rice
milling industry.
PANNALAL COLD: CRISIL Assigns 'D' Ratings to INR57.1MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Pannalal Cold Storage Pvt Ltd. The ratings reflect
delay by PCSPL in servicing its term debt, and non-repayment of
its cash credit limit within due date; the delays have been caused
by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital Facility 2.7 CRISIL D (Assigned)
Term Loan 45.0 CRISIL D (Assigned)
Proposed Long-Term 0.7 CRISIL D (Assigned)
Bank Loan Facility
Bank Guarantee 1.2 CRISIL D (Assigned)
Cash Credit 7.5 CRISIL D (Assigned)
PCSPL is also exposed to a highly regulated and fragmented cold
storage industry in West Bengal. The company has a weak financial
risk profile, marked by small net worth, high gearing, and weak
debt protection metrics. However, the company benefits from its
moderate business risk profile, supported by its promoters'
experience in potato trading business.
Incorporated in 2010-11, PCSPL provides cold storage facility to
the potato farmers and traders. The company is owned by West
Bengal-based Bali family who has prior experience in potato
trading. PCSPL's cold storage is located at Hooghly district of
West Bengal. The company commenced commercial operation from 2012-
13 potato season.
PARK HEALTH: CRISIL Cuts Ratings on INR180MM Loans to 'D'
---------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facilities of Park Health Systems Private Limited to 'CRISIL D'
from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 137.0 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long-Term 43.0 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by PHSPL in
servicing its debt; the delays have been caused by the company's
weak liquidity.
PHSPL also has a weak financial risk profile, marked by small net
worth, high gearing and below-average debt protection metrics. The
company also has a modest scale of operations, and a high degree
of geographical concentration in its revenue profile. These rating
weaknesses are partially offset by the benefits that the company
derives from its promoters' extensive experience in the healthcare
industry.
PHSPL, incorporated in 2007, operates the 100-bed multi-specialty
hospital, Deccan Hospital. The hospital commenced operations in
July 2009 and provides primary, secondary, and tertiary medical
care. The Hyderabad-based company is promoted by Mr. Chinchod
Damodar Reddy and his wife, Ms. Sura Supreetha Reddy.
PC JAIN: CRISIL Reaffirms 'BB-' Rating on INR45MM Loans
-------------------------------------------------------
CRISIL's ratings on the bank facilities of P.C. Jain and Company
continue to reflect PCJC's small scale of operations,
susceptibility to intense competition in the construction
industry, customer and geographic concentration, and
susceptibility to volatility in raw material prices. These rating
weaknesses are partially offset by the extensive experience of
PCJC's proprietor in the civil construction sector, established
customer relationships, and its moderate financial risk profile,
marked by low gearing.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 115 CRISIL A4+ (Reaffirmed)
Overdraft Facility 35 CRISIL BB-/Stable (Reaffirmed)
Proposed Long-Term 10 CRISIL BB-/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that PCJC will benefit over the medium term from
the extensive experience of PCJC's proprietor, with stability in
its financial risk profile, supported by low gearing. The outlook
may be revised to 'Positive' if PCJC significantly scales up its
operations, while maintaining its profitability and financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
PCJC undertakes a larger-than-expected debt-funded capital
expenditure (capex) programme, or reports a decline in its
profitability, weakening its financial risk profile, particularly
liquidity.
Update
PCJC reported net sales of INR167 million in 2011-12 (refers to
financial year, April 1 to March 31), in line with CRISIL's
expectations. CRISIL believes that PCJC will have small scale of
operations over the medium term due to its regional presence and
limited order book of INR323 million till January 2013. PCJC
reported a decline in operating margin to 7.2 per cent in 2011-12
from 15.8 per cent in 2010-11 due to intense industry competition
and high customer and geographic concentration. CRISIL believes
that PCJC's operating margin will remain low over the medium term
due to high industry competition.
PCJC's financial risk profile remains moderate, marked by low
gearing and moderate debt protection metrics, albeit constrained
by small net worth. PCJC's small net worth of INR56.9 million as
on March 31, 2012, is because of low accretion to reserves due to
small scale of operations. Due to no large incremental working
capital requirements or debt-funded capex over the medium term,
PCJC's gearing has remained low at around 0.76 times as on March
31, 2012. However, due to a decline in operating margin, PCJC's
debt protection metrics declined in 2011-12, reflected in interest
coverage and net cash accruals to total debt ratios of 1.4 times
and 0.09 times, respectively, as against 2.0 times and 0.23 times,
respectively, in 2010-11. CRISIL believes that PCJC's financial
risk profile will remain moderate over the medium term, marked by
low gearing, moderate debt protection metrics, and small net
worth.
PCJC's liquidity is supported by moderately utilised bank limits
and adequate net cash accruals. PCJC has utilised its bank limits
at an average of 81 per cent over the 12 months ended December
2012. Furthermore, it is expected to generate net cash accruals in
excess of INR7 million in 2012-13 vis-…-vis debt of INR5.1
million. CRISIL believes that PCJC will generate sufficient net
cash accruals over the medium term to adequately service the term
loan.
Set up as a proprietorship firm in 1975 in Rajasthan by Mr. P C
Jain, PCJC provides turnkey construction services, mainly for
civil works of roads and bridges for authorities such as public
works department (PWD) of Rajasthan and Nagar Palika.
For 2011-12, PCJC reported a profit after tax (PAT) of
INR1.5 million and net sales of INR166.7 million; the firm
reported a PAT of INR3.1 million on net sales of INR74.2 million
for 2010-11.
RENAATUS PROJECTS: CRISIL Puts 'BB-' Ratings on INR323.4MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Renaatus Projects Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Working Capital 23.4 CRISIL BB-/Stable(Assigned)
Demand Loan
Bank Guarantee 400 CRISIL A4+ (Assigned)
Overdraft Facility 300 CRISIL BB-/Stable(Assigned)
The ratings reflect RPPL's established track record in the civil
construction industry, backed by its experienced management and a
healthy order book. The ratings also factor in the company's
above-average financial risk profile, marked by healthy capital
structure and debt protection metrics. These rating strengths are
partially offset by RPPL's working-capital-intensive operations
and susceptibility of its operating margin to volatility in raw
material prices and to intense competition in the civil
construction segment.
Outlook: Stable
CRISIL believes that RPPL will continue to benefit over the medium
term from its experienced management and healthy order book. The
outlook may be revised to 'Positive' if the company scales up its
operations and significantly improves its operating profitability,
while maintaining its capital structure. Conversely, the outlook
may be revised to 'Negative' if RPPL's revenues decline, or if the
company faces any significant delay in project execution or in
receipt of payment from its customers, thereby weakening its
financial risk profile, especially its liquidity.
Set up in 2006 by Mr. Selvasundaram and based in Erode (Tamil
Nadu), RPPL is engaged in undertaking civil construction
contracts. Recently, it has also undertaken a real estate
development project in Hosur (Tamil Nadu). The company was
initially named RPP Selvam Infrastructure Pvt Ltd, but was renamed
in 2009.
RPPL posted a Profit After Tax (PAT) of INR46 million on a net
sales of INR1.3 billion during 2011-12 (refers to financial year,
April 1 to March 31) as against PAT of INR48 million on a net
sales of INR1.3 billion during 2010-11.
SHREE SHYAM: CRISIL Lowers Rating on INR70MM Loans to 'BB'
----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facilities of Shree Shyam Pipes Pvt Ltd to 'CRISIL BB/Negative'
from 'CRISIL BB+/Negative', while reaffirming its rating on the
company's short term facilities at 'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4+(Reaffirmed)
Cash Credit 30 CRISIL BB/Negative (Downgraded
from 'CRISIL BB+/Negative')
Corporate Loan 40 CRISIL BB/Negative(Downgraded
from 'CRISIL BB+/Negative')
Letter of Credit 15 CRISIL A4+(Reaffirmed)
The rating downgrade reflects deterioration in SSPL's liquidity
over the past 12 months, driven by lower-than-expected cash
accruals in 2012-13 (refers to financial year, April 1 to
March 31), after the company reported cash losses in 2011-12 due
to fluctuations in foreign exchange rates. SSPL's cash accruals
are expected to be lower than expected in 2012-13 due to lower
ramp up in sales, and higher interest costs. The downgrade also
reflects the increase in SSPL's gearing and weakening of its debt
protection metrics, due to muted profitability and higher debt
contracted in 2012-13.
The ratings continue reflect the extensive industry experience
SSPL's promoters. This rating strength is partially offset by the
company's weak financial risk profile, industry segment
concentration in its revenue profile, small scale of operations,
and susceptibility to intense competition in the copper pipes
segment.
Outlook: Negative
CRISIL believes that SSPL's financial risk profile will remain
constrained, with weak liquidity, over the medium term, because of
its low cash accruals. The ratings may be downgraded further in
case of a delay in SSPL's planned sale of property, or if its
promoters do not infuse adequate unsecured loans to support the
timely servicing of its debt. Conversely, the outlook may be
revised to 'Stable' if SSPL achieves higher-than-expected revenue
growth with a significant improvement in its profitability,
resulting in higher-than-expected cash accruals.
SSPL was established in 1980 by Mr. Ajay Gupta. The company
manufactures copper pipes and copper tubular components. Its unit
in Noida (Uttar Pradesh) has a capacity of around 1800 tonnes per
annum. Its products are used by manufacturers of air-conditioners
and refrigerators.
SSPL reported a net loss of INR39.7 million on net sales of
INR355.4 million for 2011-12, against a profit after tax of INR4.9
million on net sales of INR496.5 million for 2010-11.
SREE ANJANEYA: CRISIL Lowers Rating on INR48.8MM Loan to 'D'
------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Sree
Anjaneya Medical Trust to 'CRISIL D/CRISIL D' from 'CRISIL
BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 48.8 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Term Loan 258.7 CRISIL D (Downgraded from
'CRISIL A4+')
The rating downgrade reflects instances of delay by SAMT in
servicing its debt; the delays have been caused by the trust's
weak liquidity.
SAMT also has a below-average financial risk profile, marked by
weak capital structure, geographical concentration in its revenue
profile, and susceptibility to regulatory changes in the education
sector. SAMT, however, benefits from the trustees' extensive
industry experience in medical education segment, healthy revenue
stream from its multi-specialty medical hospital, and the benefits
it is likely to reap from the healthy demand prospects for higher
education in Calicut (Kerala).
Established in Kerala in 2005, SAMT is a charitable trust
constituted under the Indian Trust Act. The trust commenced
operations in 2010. SAMT runs a multi-specialty hospital and
operates an educational institute, Malabar Medical College and
Research Hospital.
SAMT reported a net deficit of INR22 million on income of INR249
million for 2011-12 (refers to financial year, April 1 to
March 31), against a net deficit of INR20 million on income of
INR138 million for 2010-11.
TARAK NATH: CRISIL Upgrades Rating on INR70MM Loans From 'D'
------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank facilities
of Tarak Nath Das to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 60 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The upgrade in ratings reflects timely servicing of debt by TND in
the past six months ended January 31, 2013. Though TND is expected
to have weak liquidity over the medium term, its promoters are
likely to extend need-based funding support to meet its debt
obligations on time.
TND, however, has a below-average financial risk profile with
working-capital-intensive and small scale of operations. However,
TND continues to benefit from its established market position,
supported by its promoters' extensive experience in the
construction industry.
For arriving at the ratings, CRISIL had earlier combined the
business and financial risk profiles of BCPL and Tarak Nath Das
(TND). This was because these entities have common promoters,
operate in the same segment, and jointly leverage on the
experience of their main promoter, Mr. Tarak Nath Das. Moreover,
TND had extended a corporate guarantee against the bank loan
facilities of BCPL and cash flows were expected to be highly
fungible between the two entities. However, barring the
continuance of the corporate guarantee, there has been no
substantial fungible cash flows between them; CRISIL does not
anticipate any support to be extended by TND to BCPL or any
operational linkages between the two entities, over the medium
term. Hence, CRISIL has now taken a standalone view for assessing
the credit risk profile of TND.
Outlook: Stable
CRISIL believes that TND will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' if TND's credit risk profile
improves significantly, most likely because of capital infusion by
the promoters and better-than-expected revenues and profitability
along with improvement in its working capital cycle. Conversely,
the outlook may be revised to 'Negative' in case of deterioration
in TND's operating income and profitability, or if the company's
working capital cycle deteriorates, or it undertakes a large,
debt-funded, capital expenditure programme, resulting in a highly
leveraged capital structure.
Set up in 2007 as a proprietorship firm by Mr. Tarak Nath Das, TND
is a first-class contractor and undertakes construction work for
various projects of the Government of India. The projects
primarily include construction of roads, bridges, and government
office buildings on contractual basis. TND operates in Odisha.
UNITED WIRE: CRISIL Reaffirms 'B+' Rating on INR100MM Loans
-----------------------------------------------------------
CRISIL's rating on the bank facilities of United Wire Products
continues to reflect UWP's weak financial risk profile marked by a
small net worth, high gearing, and weak debt protection metrics;
small scale of operations with a constrained profitability in the
intensely competitive wire manufacturing industry; and working-
capital-intensive operations. These ratings weaknesses are
partially offset by the benefits that the firm derives from its
partners' extensive industry experience and its diversified
customer profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable (Reaffirmed)
Term Loan 6.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long-Term 3.5 CRISIL B+/Stable (Reaffirmed)
Bank Loan Facility
Outlook: Stable
CRISIL believes that UWP will continue to benefit over the medium
term from its partners' extensive industry experience. The outlook
may be revised to 'Positive' if the firm significantly scales up
its operations and improves its profitability, leading to
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case UWP's financial risk profile
deteriorates on account of larger-than-expected debt-funded
working capital requirements or pressure on profitability.
Update
UWP registered an operating income of INR355 million in 2011-12
(refers to financial year, April 1 to March 31) compared with
INR302 million in the preceding year. The company is estimated to
register flat revenue growth of around INR370 million for 2012-13.
The stagnation in revenue growth is mainly because of the
company's stretched working capital cycle and general slowdown in
demand due to high steel prices. The company's operating margin
has also declined to around 5 per cent as on March 31, 2012 as
against 6.7 per cent in the preceding year due to volatility in
raw material costs. The operating margin over the medium term is
also expected to remain vulnerable to steel prices.
UWP's working capital requirements have remained high; the
company's debtor, inventory, and creditor levels stood at 65 days
of sales, 75 days of sales, and 4 days of purchases, respectively,
leading to gross current assets of around 150 days, as on March
31, 2012. UWP's financial risk profile has been below-average,
marked by high gearing, small net worth and below-average debt-
protection metrics. It had a gearing of 2.5 times as on March 31,
2012, mainly because of high reliance on bank borrowings for
meeting its incremental working capital requirements. It had a net
worth of INR50 million as on March 31, 2012; the net worth has
remained small because of low accretions to reserves. UWP's debt
protection metrics have remained below average because of high
reliance on incremental working capital debt. Its interest
coverage and net cash accruals to total debt ratios were at 1.4
times and 0.04 times, respectively, for 2011-12. UWP has a weak
liquidity. Its cash accruals for 2012-13 are likely to be around
INR6.5 million against debt obligations of INR1.2 million. The
company's average bank limit utilisation has been high at 95 per
cent over the 12 months ended December 31, 2012 with frequent
availment of adhoc limits.
UWP, set up in 1994, manufactures several types of mild steel (MS)
wires such as galvanised wires, earth wires, barbed wires, binding
wires, chain link fencing, stitch wires and black annealed wires,
catering to the automobile, construction, and electricity boards,
and agricultural-based industries, among others.
UWP reported a profit after tax (PAT) of INR4.6 million on net
sales of INR352 million for 2011-12, as against a PAT of INR4.3
million on net sales of INR299 million for 2010-11.
=========
J A P A N
=========
PANASONIC CORP: To End Plasma TV Production in Fiscal 2014
----------------------------------------------------------
The Japan Times reports that Panasonic Corp. may withdraw from
plasma display TV operations in fiscal 2014 to focus more on
profitable products, corporate sources said Monday.
Panasonic is being forced to abandon the technology because it
failed to keep up with the strides being made in liquid crystal
display TVs aggressively sold by Samsung Electronics Co., Sony
Corp. and others, the report relates.
The Japan Times says Panasonic is expected to formally announce
the downsizing of its TV operations later this month when it
releases a new midterm business plan.
According to the report, the sources said Panasonic is arranging
to cease production of plasma TV panels at its plant in Amagasaki,
Hyogo Prefecture, as soon as the business year ending in March
2015.
Panasonic, which has already ended research and development on
plasma panels, will assess the timing of its complete withdrawal
from the money-losing business while gradually reducing the output
volume, because it still needs to win agreement on the move from
its partners, the report adds.
Other than TVs, it is possible that Panasonic will entirely pull
out of plasma panel operations for electronic blackboards and
other products as well, the sources, as cited by Japan Times,
said.
The Japan Times adds that sources said the Osaka-based company
will also consider relocating the plant's workers.
Having posted net losses in three of the past four fiscal years,
the company best known for its Viera TV sets is redoubling its
efforts to streamline operations to return to profit, The Wall
Street Journal said. Panasonic forecast a net loss of
JPY765 billion ($8.61 billion) for this fiscal year ending
March 31, citing hefty restructuring costs, the Journal added.
Panasonic Corporation, formerly Matsushita Electric Industrial
Co., Ltd., -- http://www.panasonic.co.jp/-- is engaged in the
production and sales of electronic and electric products in an
array of business areas. It offers products, systems and
components for consumer, business and industrial use. Most of
the company's products are marketed under the Panasonic brand
name worldwide, along with other product, or region, specific
brand names, including National primarily for home appliances and
household electric equipment sold in Japan, and Technics for
certain high-fidelity products.
In February, Fitch Ratings Panasonic Corporation's Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDR) and local
currency senior unsecured ratings at 'BB', respectively. The
Outlook on the Long-Term IDRs is Negative. Simultaneously,
Panasonic's Short-Term Foreign- and Local-Currency IDRs have been
affirmed at 'B'.
The speculative-grade ratings reflect Panasonic's weak
competitiveness in its core businesses, particularly in TVs and
panels, as well as weak cash generation from operations (CFO).
The Negative Outlook reflects the agency's view that the
company's financial profile is not likely to show a material
improvement in the short- to medium-term. Fitch acknowledges that
the company is heading in the right direction with its
restructuring efforts which could potentially lead to margin
recovery over the long-term. However, the company's turnaround
programme remains exposed to execution risk.
====================
N E W Z E A L A N D
====================
AIR VANUATU: Technically Insolvent, CEO Says
--------------------------------------------
Radio New Zealand International reports that the chief executive
of Air Vanuatu, Jean Paul Virelala, said the airline has been
technically insolvent for the past five years and has only been
able to operate through government guarantees.
He has compiled an Air Vanuatu Recovery Plan for the government,
the report says.
According to the report, Mr. Virelala said in order to resolve the
problems, it is important to understand what went wrong.
Since 2007, Air Vanuatu has faced a severe financial setback and
an ongoing cash flow crisis due mainly to the wrong strategic
decisions being made by unqualified, unskilled and inexperienced
but highly paid staff, Mr. Virelala, as cited by Radio NZ, said.
Air Vanuatu flies from Sydney, Melbourne, Brisbane, Auckland,
Noumea, Nadi, Honiara to Vanuatu and domestically around the 83
Islands of Vanuatu.
LM INVESTMENT: Administrators Appointed to Frozen Mortgage Fund
---------------------------------------------------------------
Hamish Fletcher at New Zealand Herald reports that voluntary
administrators have been appointed to LM Investment Management, a
beleaguered Australian firm that controlled a frozen mortage fund
which New Zealanders had more NZ$100 million tied up in.
Thirteen hundred New Zealand investors had put money into the
Currency Protected Australian Income Fund run by Queensland-
headquartered LM Investment.
This fund acted as a feeder into LM First Mortgage Income Fund,
which has a number of commercial Australian property investments
but was frozen in the wake of the global financial crisis.
At the time of the freeze in March 2009, New Zealand investors had
A$95 million ($119 million) in this fund, although LM said last
year they will now only get around 59c in the dollar back.
According to the report, a spokesperson from LM said Wednesday
that first repayments of capital had been made to investors
earlier this month. But further redistributions could now be
delayed after it was announced that voluntary administrators had
been called into LM by its directors.
Administrators John Park -- john.park@fticonsulting.com -- and
Ginette Muller -- ginette.muller@fticonsulting.com -- of FTI
Consulting said they would co-operate with LM's senior management
to "produce a comprehensive strategy to meet all obligations to
its investors and creditors," the Herald reports.
LM Investment Management was founded in 1993 by expat
New Zealander Peter Drake and claims to have assets worth more
than AUD3 billion under management.
=====================
P H I L I P P I N E S
=====================
EXPORT AND INDUSTRY: PDIC Declares Failed Re-Bidding For Rehab
--------------------------------------------------------------
The Bidding Committee formed by the Philippine Deposit Insurance
Corporation (PDIC) to oversee the conduct of the re-bidding of the
rehabilitation of the closed Export and Industry Bank (EIB)
declared a failed bidding after no strategic third party investor
(STPI) submitted a letter of interest or pre-bid documentary
requirements as of 5:00 p.m., March 18, the deadline for the
submission of the pre-bid documents.
"Under Section XI of the Terms and Conditions for the Re-bidding
and Re-bidding Procedures on the Rehabilitation of the closed EIB,
non-receipt of letter of interest or pre-bid documentary
requirements is a ground for the declaration of failure of
bidding," PDIC said in a statement.
PDIC General Counsel Romeo M. Mendoza, Jr., Chairperson of the
Bidding Committee, said that under these circumstances, the
submission of bids scheduled on March 20, 2013 can no longer push
through.
Last week, the PDIC announced that it will re-bid EIB's
rehabilitation via purchase of assets and assumption of
liabilities.
"The PDIC vigorously exerted efforts to facilitate the
rehabilitation of EIB in order to help maximize the potential
recovery of the closed bank's depositors and creditors. With this
development, the task at hand is for PDIC to make a final
determination on whether EIB may be rehabilitated, then submit its
report to the Monetary Board," General Counsel Mendoza said.
Meanwhile, BusinessWorld Online reports that the liquidation of
Exportbank will be proposed by PDIC following another failed
bidding of the assets and liabilities of the shuttered bank.
The bidding committee will have until March 25 to submit to the
PDIC board its final assessment of whether Exportbank can still be
rehabilitated, Nancy L. Sevilla-Samson, PDIC vice president for
receivership and bank management group said in an interview,
BusinessWorld relates.
"To be able to rehabilitate the bank, a huge amount of capital is
needed to be infused in the bank," the report quotes Ms. Sevilla-
Samson as saying. She elaborated, "In this case that there were
no STPIs that submitted pre-bid documents, then it is obvious what
the bidding committee's proposal on the fate of Exportbank would
be. It will be for liquidation."
According to the report, Ms. Sevilla-Samson said that after the
bidding committee submits its recommendation, the PDIC board, will
submit the findings to the Bangko Sentral ng Pilipinas, which will
then have to issue a resolution placing Exportbank under
liquidation.
Headquartered in Makati City, Manila, Export & Industry Bank
-- http://exportbank.com.ph/-- has 50 branches and has revived
former Urban Bank unit under new names. Its principal activity
is the provision of commercial banking services such as deposit
taking, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange and trust services.
ABS-CBNnews.com said Bangko Sentral ng Pilipinas was placed EIB
under receivership on April 26, 2012. The Monetary Board cited
the bank's "inability to meet obligations as they becomes due,
insufficient realizable assets to meets its liabilities and its
inability to continue its business without involving probable
losses to its depositors and creditors." The PDIC took over the
Export & Industry Bank on April 27, 2012, to implement Monetary
Board Resolution No. 686 dated April 26, 2012. As Receiver, PDIC
will gather all the assets of the closed bank and verify and
validate all bank records.
=================
S I N G A P O R E
=================
PREMIERE VISIONE: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on March 8, 2013, to
wind up Premiere Visione Resources Inc Private Limited operations.
Lim Choo Sun filed the petition against the company.
The company's liquidator is:
Don Ho Mun Tuke
Don Ho & Associates
20 Cecil Street #12-02 Equity Plaza
Singapore 049705
REFLECT GEOPHYSICAL: Judicial Management Bid Hearing on April 5
---------------------------------------------------------------
An application to place Reflect Geophysical Pte Ltd under judicial
management will be heard before the High Court of Singapore on
April 5, 2013, at 10:00 a.m.
Chee Yoh Chuang and Abuthahir Abdul Gafoor of Stone Forest
Corporate Advisory Pte Ltd have been nominated as judicial
managers.
The Applicant's solicitors are:
WongPartnership LLP
63 Market Street #02-01
Singapore 048942
UNIVERSAL ASSETS: Creditors Get 100% Recovery on Claims
-------------------------------------------------------
Universal Assets Group Pte Ltd declared the preferential dividend
on March 5, 2013.
The company paid 100% to the received claims.
The company's liquidator is:
The Official Receiver
The URA Centre East Wing
45 Maxwell Road #06-11
Singapore 069118
====================
S O U T H K O R E A
====================
SSANGYONG ENG'G: Banks Agree to KRW170-Bil. Debt-Equity Swap
------------------------------------------------------------
Yonhap News reports that creditors of Ssangyong Engineering &
Construction Co. agreed Tuesday to rescue the troubled builder
through a debt-to-equity swap program worth KRW170 billion ($152.9
million), creditor bank officials said.
Yonhap relates that the officials said the builder's creditor
banks, including Woori Bank and Shinhan Bank, held a meeting
headed by the Financial Supervisory Service (FSS), the country's
financial watchdog, later in the day to discuss the matter and
agreed to the plan.
The swap will prevent the cash-strapped builder from having to be
delisted from the stock market, as it is expected that the company
will soon go through a normalization process including a debt
workout program, according to the report.
Earlier this month, Yonhap recalls, creditor banks agreed to delay
credit retrievals for the next three months as part of efforts to
salvage the nation's 13th-largest builder from the brink of
bankruptcy.
Creditor banks have just begun conducting due diligence on
Ssangyong E&C to determine ways to deliver a debt workout program
to the builder. The results of the due diligence won't be ready
until mid-April.
Ssangyong E&C filed for debt-rescheduling program on Feb. 26,
2013, after it has suffered from capital erosion due to massive
losses for the second straight years in 2012 amid the lackluster
housing market, Yonhap reported.
Based in Seoul, Korea, Ssangyong Engineering & Construction Co.,
Ltd. -- http://www.ssyenc.com/eng/-- is involved in the areas of
construction and engineering.
* Fitch Says Korean Telcos Margin Slump May Result to Rating Cuts
-----------------------------------------------------------------
Fitch Ratings says that ongoing decline in Korean telcos' margins
could result in rating downgrades, and that the gap in credit
strength between the top four and the smaller operators in
Indonesia is likely to widen. In India, regulatory pressures
remain on Bharti Airtel (BBB-/Negative), albeit softening, and
that in China, Baidu, Inc.'s (A/Stable) ownership structure is
stronger than some other variable interest equity (VIE)
arrangements. These were among the key points Fitch made at recent
round-table meetings with credit investors based in Hong Kong and
Singapore. Fitch's feedback to investors' key questions is set out
below.
Q: What is your view on the Korean telecom sector, why is SK
Telecom (SKT, A-/Stable) rated a notch below KT Corporation (KT,
A/Stable), and how does Fitch view KT's interest in Maroc Telecom?
In the last 5-10 years we have seen many European telcos migrate
from the mid-'A' category to the 'BBB' category. Given the level
of competition and margin decline in Korea, there is a risk that
this market may go the same way as some of those European markets.
Currently rating headroom for the Korean telcos is low.
We downgraded SKT to one notch below KT following its acquisition
of Hynix Semiconductor (SK Hynix, BB/Stable), not only because
credit metrics weakened but also because we thought that the
acquisition was a poor strategic fit and that the risk of another
creditor-unfriendly deal has increased.
Any deal KT does to acquire a stake in Maroc Telecom will weaken
its credit profile. However, Fitch is treating this potential
acquisition as event risk. That is, if the deal proceeds, the
extent of any downgrade, if any, will depend on the details of the
transaction, including financing. However KT's ratings headroom is
currently low.
Q: What is your view on the Indian telecommunications sector, and
why do you rate Bharti investment-grade?
We have had a negative outlook on this sector for a number of
years now. India has been the toughest major telecoms market in
the region for both operators and investors due to a high level of
competition leading to low prices and an unstable regulatory and
legislative framework.
Bharti's 'BBB-' rating reflects its leading position in the Indian
market and a likely winner in the medium term. The Negative
Outlook continues to reflect ongoing regulatory uncertainty in its
Indian operations relating to a one-time charge for excess
spectrum (over 6.2MHz) and spectrum refarming. However, the
charges are now likely to be phased over the life of the licence,
rather than paid up-front, which will aid Bharti's deleveraging
efforts. Difficulties faced by smaller telcos are likely to lead
to some exiting the market or scaling back operations which we
expect to strengthen the larger operators' pricing power.
While Bharti's African operations are developing slower than the
company's initial expectations, their position as the number two
player in large African markets and number one in smaller markets
provides a platform for this business. The geographical
diversification to some extent mitigates the high sovereign-risk
environment.
Q: What is happening in the South-East Asia telecoms markets?
Not all SE Asian markets are the same. In Singapore and the
Philippines we are expecting margins to decline this year, but
leverage should improve as capex is likely to be lower than in
2012 in both countries. In Malaysia most telcos are likely to
maintain their operating EBITDAR margins this year due to stable
voice tariffs and rising data revenue. Malaysian wireless telcos'
free cash flow (FCF) margins will remain robust as capex will stay
low.
In Indonesia, the dominant top four operators will generate
adequate cash from operations (CFO) to support continued high
capex. For 2013 these companies' revenue will rise by the mid-
single digits, and operating EBITDAR margins will remain above
50%. Smaller telcos will continue to be weak amid declining
tariffs, low profitability and stretched balance sheets.
Fitch is positive on the credit outlook for the Thai telecom
sector based on our expectation that the operators will be less
exposed to policy and regulatory risks following the issuance of
3G licences. Technology upgrades to 3G should also support growth
in non-voice revenue, given an improvement in data network
quality. Credit metrics may deteriorate due to high capex and
licence fees, but we believe the two largest mobile operators,
Advanced Info Service Public Company Limited (BBB+/Stable) and
Total Access Communication Public Company Limited (BBB-/Positive),
have sufficient headroom in their ratings.
Q: Why do you rate Baidu at 'A'? Is Baidu's VIE mechanism not a
risk and how does Fitch look at these structures?
Baidu's leading position in the Chinese internet search market
will enable it to generate strong cash flows even if its market
share and margins decline, as we expect. The prospects for organic
growth are strong as China's internet penetration is currently low
and we expect on-line advertising to increase its share compared
with TV and print media.
"We assess VIE structures on a case-by-case basis. For Baidu, we
took comfort from the fact that over 70% of revenues come from
(and almost all cash and assets are held within) wholly owned
subsidiaries rather than contractually controlled, consolidated
entities. In addition, there is ownership alignment between Baidu
and Baidu Netcom (the VIE entity)," Fitch says.
There remains a risk that Baidu's control over Baidu Netcom could
be lost due to breach of contract by the equity owners of Baidu
Netcom, or via government regulation/interference. However, we
believe, first, that founding chairman's (Robin Li) equity control
over both Baidu, Inc. and Baidu Netcom mitigates the ownership
risk. Second, Fitch believes the company's beneficial relationship
with the Chinese government mitigates the regulatory risk.
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Ivy B. Magdadaro, Julie Anne L. Toledo,
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 ***