/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130422.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, April 22, 2013, Vol. 16, No. 78 Headlines A U S T R A L I A CREDIT UNION: S&P Withdraws 'BB/B' Issuer Credit Ratings J&J O'BRIEN: ANZ Bank Calls in PPB Advisory as Receivers MULSANNE RESOURCES: Liquidator Files Insolvent Trading Case PEPPER RESIDENTIAL 10: S&P Assigns BB Rating to Class E Notes PORT VILLAGE: Resort Placed Into Liquidation C H I N A CHINA FRUITS: Reports $128K Net Income in 2012 FUWEI FILMS: Incurs RMB54.4-Mil. Net Loss in 2012 GOLDEN WHEEL: Moody's Rates Proposed RMB Notes Issuance '(P)B2' GOLDEN WHEEL: S&P Rates Chinese-Renminbi-Denominated Notes 'B' HIDILI INDUSTRY: S&P Lowers Corporate Credit Rating to 'CCC+' XINYUAN REAL: Fitch Assigns 'B+' Long-Term Issuer Default Rating I N D I A GOOD LUCK: ICRA Reaffirms 'BB' Rating on INR3.85cr Term Loans MANSAROVAR COLD: ICRA Assigns 'D' Ratings on INR5.96cr Loans MARUTI OIL: ICRA Assigns 'B' Ratings to INR6.48cr Loans MONOPOLY YARNS: ICRA Cuts Ratings on INR6.55cr Loans to 'B' NATIONAL CENTRE: ICRA Rates INR8.80cr Loan at '[ICRA]B+' SHREE DURGA: ICRA Lowers Ratings on INR123.2cr Loans to 'BB+' SHRI DAMODAR: ICRA Reaffirms 'BB-' Ratings on INR21.83cr Loans SP JAISWAL: ICRA Downgrades Ratings on INR65cr Loans to 'D' SYSCON ENGINEERS: ICRA Assigns 'BB' Rating to INR5.5cr Loan UNITED HOTELS: ICRA Downgrades Ratings on INR35cr Loans to 'D' N E W Z E A L A N D STARPLUS HOMES: Mitre 10 Pushes Liquidation of Chinese Builder S R I L A N K A BANK OF CEYLON: Fitch Assigns 'BB-' Rating to US$500MM New Notes T A I W A N TRANSAKT LTD: KCCW Accountancy Raises Going Concern Doubt X X X X X X X X * CVC Capital to Launch 4th Asian Fund - - - - - ================= A U S T R A L I A ================= CREDIT UNION: S&P Withdraws 'BB/B' Issuer Credit Ratings -------------------------------------------------------- Standard & Poor's Ratings Services' said that it has withdrawn its 'BB/B' issuer credit ratings on Credit Union North following a transfer of that credit union's assets and liabilities to First Credit Union (FCU; BB/Stable/B). J&J O'BRIEN: ANZ Bank Calls in PPB Advisory as Receivers -------------------------------------------------------- SmartCompany reports that PPB Advisory was appointed on April 16 as receivers for the J&J O'Brien group of companies by the ANZ bank. PPB Advisory's Marcus Ayres -- mayres@ppbadvisory.com -- and Stephen Parbery -- sparbery@ppvadvisory.com -- have been appointed as receivers and managers to the group and Quentin Olde -- quentin.olde@fticonsulting.com -- and Michael Ryan -- michael.ryan@fticonsulting.com -- of FTI Consulting have been appointed as administrators, according to SmartCompany. SmartCompany says the receivership follows the recent collapse of iconic Sydney pubs The Annandale Hotel, The Sando and of pub group National Leisure & Gaming which operated 35 pubs in New South Wales and Queensland. At the time, these collapses were blamed on heavy handed action by the banks and onerous lease obligations but it is unclear whether either of these issues are a factor in J&J O'Brien's collapse, the report relates. Mr. Ayres told SmartCompany it is still "very early days" in the receivership process and the receivers have not identified the cause of the group's collapse. "[J&J O'Brien] hasn't complied with its banking requirements; it's pretty hard to identify what is going on," the report quotes Mr. Ayres as saying. "We just want to keep everything running smoothly for the time being." In the meantime, the receivers will continue to operate J&J O'Brien's four venues, the report adds. "We are just making an assessment of the business and it is still business as usual but we will develop a strategy to put the assets on the market," Mr. Ayres told SmartCompany. SmartCompany relates that Mr. Ayres said the group had a turnover of AUD23 million last year and its major creditors are the breweries and ANZ bank. A first meeting of creditors is scheduled for April 29 in Sydney, the report relays. J&J O'Brien is a Sydney pub group which includes high profile venue Jacksons on George. It also owns and operates the Belvedere Hotel, the Cohibar and The Watershed Hotel. MULSANNE RESOURCES: Liquidator Files Insolvent Trading Case ----------------------------------------------------------- Leo Shanahan at The Australian reports that one-time coal billionaire Nathan Tinkler is set to face a claim of trading while insolvent after liquidators from his company Mulsanne Resources said they would start proceedings as a result of his attempt to take over miner Blackwood Corp. The Australian says the court action means Mr. Tinkler could face a potentially bankrupting compensation payout to Blackwood, a AUD220,000 fine or up to five years in jail. Citing an affidavit filed on April 18 in the NSW Supreme Court by Mulsanne liquidator Robyn Duggan, The Australian relates that it was alleged Mr. Tinkler as a director of Mulsanne engaged in insolvent trading when he made the AUD28.4 million offer last year. "I am of the belief that at the time of entry into the SPA (share purchase agreement), there were no reasonable grounds for the directors of Mulsanne to expect that Mulsanne could pay the $28.4 purchase price under the SPA when it fell due to remain solvent," the affidavit, obtained by The Australian, stated. According to the report, Ms. Duggan, representing liquidator Ferrier Hodgson, also said while it was clear Mulsanne, which was a AUD1 company, did not have the resources to pay the purchase price, there had been no other finances made available to fund the takeover from other parts of Mr. Tinkler's business empire. The Australian adds that Ms. Duggan said as a result the liquidators would begin a "commencement of proceedings in the Supreme Court of NSW against the directors of Mulsanne for insolvent trading". Liquidators will also file Mulsanne's company records with the Australian Securities & Investment Commission, and with the Australian Taxation Office, the report relays. The Australian says Blackwood is set to fund the litigation led by the liquidators, which could lead to a compensation payout and the potential bankruptcy of Mr. Tinkler. The miner successfully applied to have Mr. Tinkler's Mulsanne Resources placed in liquidation last year after he failed to proceed with an agreement to buy a one-third stake in Blackwood, the report notes. PEPPER RESIDENTIAL 10: S&P Assigns BB Rating to Class E Notes -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its ratings to the seven classes of nonconforming residential mortgage-backed securities (RMBS) issued by GT Australia Nominees Ltd. as trustee of Pepper Residential Securities Trust No.10. Pepper Residential Securities Trust No.10 is a securitization of nonconforming residential mortgages originated by Pepper HomeLoans Pty Ltd. (Pepper). The ratings reflect: -- S&P's view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date. -- S&P's view that the credit support is sufficient to withstand the stresses it applies. This credit support comprises note subordination for each class of rated note. The availability of a retention amount built from excess spread, and applied monthly to the most subordinated rated note at that time. -- The availability of a yield reserve built from excess spread, and made available to meet interest shortfalls on the class A and class B notes. -- The extraordinary expense reserve of A$150,000, funded from day one, available to meet extraordinary expenses. The reserve will be topped up via excess spread if drawn. -- S&P's expectation that the various mechanisms to support liquidity within the transaction, including a liquidity facility equal to 1.9 % of the outstanding balance of the notes plus A$2.1 million, and principal draws, are sufficient under S&P's stress assumptions to ensure timely payment of interest. -- The condition that a minimum margin will be maintained on the assets. A copy of Standard & Poor's complete report for Pepper Residential Securities Trust No.10 can be found on Global Credit Portal, Standard & Poor's Web-based credit analysis system, at: http://www.globalcreditportal.com The issuer has not informed Standard & Poor's (Australia) Pty Limited whether the issuer is publically disclosing all relevant information about the structured finance instruments the subject of this press release or whether relevant information remains non- public. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com/1465.pdf REGULATORY DISCLOSURES Please refer to the initial rating report for any additional regulatory disclosures that may apply to a transaction. RATINGS ASSIGNED Class Rating Amount (mil. A$) A-1 AAA (sf) 245.0 A-2 AAA (sf) 38.85 B AA (sf) 18.2 C A (sf) 17.15 D BBB (sf) 12.25 E BB (sf) 8.05 F B (sf) 5.6 G N.R. 4.9 N.R.--Not rated. PORT VILLAGE: Resort Placed Into Liquidation -------------------------------------------- Peter Williams at The West Australian reports that Port Village Accommodation, a Pilbara accommodation development which collapsed last year owing BHP Billiton and other creditors an estimated AUD125 million, has been placed into liquidation. There are still hopes the Port Hedland project can be revived in some form by companies interested in picking up the liquidated assets of the developer, the report says. According to The West Australian, creditors voted on April 18 to wind up PVA after several proposals to administrators to take over the incomplete resort, known as The Landing, were withdrawn or rejected. KPMG, which had been handling the administration, has been appointed liquidator. The liquidators told creditors they had a chance of getting back 12 cents in the dollar at best and zero at worst, the report relays. The West Australian notes that BHP sank about AUD50 million into helping to finance the development. That was part of an agreement to rent rooms in the hotel and in the workers accommodation complex. It was BHP that forced the troubled developer into receivership last November, the report says. The collapse of the project left builders, suppliers and contractors claiming to be owed up to AUD50 million, the report discloses. ========= C H I N A ========= CHINA FRUITS: Reports $128K Net Income in 2012 ---------------------------------------------- China Fruits Corporation filed on April 15, 2013, its annual report on Form 10-K for the year ended Dec. 31, 2012. Lake & Associates CPA's LLC, in Schaumburg, Ill., expressed substantial doubt about China Fruits' ability to continue as a going concern, citing the Company's accumulated deficit and negative cash flow from operations. The Company reported net income of $128,421 on $3.7 million of revenues in 2012, compared with a net loss of $376,002 on $3.5 million of revenues in 2011. According to the regulatory filing, the net income during the year of 2012 was also due to the grants received from the local government in amount of $1.2 million, which was to encourage the Company's efforts on modern agricultural development. "Without the government grant, we suffered loss of $1,091,310 from operations." The Company's balance sheet at Dec. 31, 2012, showed $6.2 million in total assets, $3.7 million in total liabilities, and stockholders' equity of $2.5 million. A copy of the Form 10-K is available at http://is.gd/OeSYtn Headquartered in Nan Feng County, Jiang Xi Province, P.R.C., China Fruits Corporation is principally engaged in the manufacturing, trading and distributing of fresh tangerines and other fresh fruits in the PRC. FUWEI FILMS: Incurs RMB54.4-Mil. Net Loss in 2012 ------------------------------------------------- Fuwei Films (Holdings) Co., Ltd., filed on April 11, 2013, its annual report on Form 20-F for the year ended Dec. 31, 2012. Kabani & Company, Inc., in Los Angeles, expressed substantial doubt about Fuwei Films' ability to continue as a going concern. The independent auditors noted that the Company has incurred a net loss of RMB54.4 million and may not have sufficient working capital to meet its planned operating activities over the next twelve months. The Company reported a net loss of RMB54.4 million on RMB372.9 million of sales in 2012, compared with net income of RMB21.0 million on RMB537.6 million of sales in 2011. The Company's balance sheet at Dec. 31, 2012, showed RMB747.5 million in total assets, RMB229.1 million in total liabilities, and stockholders' equity of RMB518.4 million. A copy of the Form 20-F is available at http://is.gd/jeiulb Weifang Shandong, P.R.C.-based Fuwei Films (Holdings) Co., Ltd., develops, manufactures and distributes high quality plastic film using the biaxially-oriented stretch technique, otherwise known as BOPET film (biaxially-oriented polyethylene terephthalate). GOLDEN WHEEL: Moody's Rates Proposed RMB Notes Issuance '(P)B2' --------------------------------------------------------------- Moody's Investors Service assigned a provisional (P)B2 senior unsecured rating to the proposed RMB notes issuance of Golden Wheel Tiandi Holdings Co Ltd (B2 stable). The rating outlook is stable. Golden Wheel plans to use the proceeds primarily to fund new property projects, and for general corporate purposes. Moody's will remove the provisional status from the rating after Golden Wheel completes the issuance on satisfactory terms and conditions. Ratings Rationale: "The proposed notes will provide Golden Wheel the funding it needs to grow its investment property portfolio and expand its scale of property development," says Franco Leung, a Moody's Assistant Vice President and Analyst. The company plans to adopt a fast growth strategy, and the proposed notes will help it achieve its target of increasing its contract sales by nearly four times to over RMB2 billion by 2015 from RMB525 million in 2012. "The planned expansion, if successful, will help the firm diversify its sales," adds Leung. Currently, Golden Wheel has a limited number of development projects on hand, and which could result in cash flow concentration risk and volatility in its sales performance. For instance, its book revenue of RMB964 million for 2012 came from only four projects, while about 60% of its development land bank is located in Nanjing. The proceeds from the notes will help the company fund three to six new development projects. Most of these projects are scalable, and Golden Wheel will have the flexibility to determine the time period for their completion. Therefore, it will have better control over its financial profile. Moody's expects the company to maintain debt/total capitalization of 30%-40% and EBITDA/interest of around 3x after the notes are issued. These metrics will still be consistent with its B2 rating. Golden Wheel's B2 rating is supported by its good track record in developing diverse property projects in Nanjing, and the recurring rental income from its investment properties. In addition, the firm has a track record of conservatively managing its financials, as highlighted by its low debt leverage compared with other B- rated Chinese developers. However, the rating is constrained by its small operating scale and geographic concentration. As indicated earlier, the company is exposed to cash flow concentration risk and volatility in sales performance. Moreover, it could face operational and financial risks owing to its fast growth strategy. The stable rating outlook reflects Moody's expectation that the company will preserve adequate liquidity, adopt a disciplined approach for expansion, and develop a pipeline of investment properties that generate stable recurring income. Moody's would consider upgrading the rating if Golden Wheel: (1) grows its scale through stable revenue growth; (2) achieves net rental income that covers a significant portion of its gross interest expenses; (3) maintains a stable financial profile when pursuing expansion; and/or (4) maintains a solid liquidity profile. On the other hand, downgrade pressure could emerge if Golden Wheel: (1) experiences a significant shortfall in sales, and net rental income to gross interest declines below 0.3x on a sustained basis; (2) materially increases its debt-funded investment projects; or (3) fails to maintain an adequate liquidity profile. The principal methodology used in this rating was the Global Homebuilding Industry Methodology published in March 2009. Golden Wheel is an integrated commercial and residential property developer, owner and operator focusing on developing projects in Jiangsu and Hunan provinces. These developments are physically connected or in close proximity to metro stations or other transportation hubs. The company leases and manages shopping malls owned by third parties. As of end-2012, the company had a total land bank of 347,080 sqm in gross floor area located in Nanjing, Yangzhou and Zhuzhou. GOLDEN WHEEL: S&P Rates Chinese-Renminbi-Denominated Notes 'B' -------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B' long-term issue rating and its 'cnBB-' long-term Greater China regional scale rating to a proposed issue of Chinese-renminbi-denominated senior unsecured notes by Golden Wheel Tiandi Holdings Co. Ltd. (GW Tiandi: B/Stable/--; cnBB-/--). The ratings are subject to S&P's review of the final issuance documentation. GW Tiandi, a Nanjing-based property developer, intends to use the notes' proceeds to fund new property projects and for general corporate purposes. S&P has equalized the issue rating to the corporate credit rating on GW Tiandi because S&P believes the company's ratio of priority debt to total assets will likely remain below its 15% notching threshold for speculative-grade issuers. The rating on GW Tiandi reflects the company's revenue concentration in a limited number of projects and cities, its small land bank, and the execution risk associated with accelerated expansion. GW Tiandi's small but growing recurring income from investment properties, and relatively disciplined financial management temper these risks. S&P views the company's business risk profile as "vulnerable" and its financial risk profile as "aggressive," as S&P's criteria define these terms. The stable outlook on GW Tiandi reflects S&P's expectation that the company will generate sufficient cash flow to fund its land acquisition and expansion needs. S&P also believes the company will maintain some discipline in land acquisition to maintain "adequate" liquidity, as defined in S&P's criteria. GW Tiandi is likely to continue to increase its investment properties to generate more recurring rental income. HIDILI INDUSTRY: S&P Lowers Corporate Credit Rating to 'CCC+' -------------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on China-based coking coal producer Hidili Industry International Development Ltd. to 'CCC+' from 'B-'. The outlook is negative. At the same time, S&P lowered the rating on the company's senior unsecured notes to 'CCC' from 'CCC+'. S&P also lowered its long-term Greater China regional scale rating on Hidili to 'cnCCC+' from 'cnB-', and on the notes to 'cnCCC' from 'cnCCC+'. S&P removed all ratings from CreditWatch, where they had been placed with negative implications on Jan. 23, 2013. The downgrades reflect the adverse impact of prolonged mine closures in the Sichuan province on Hidili's business risk profile and diminished financial flexibility. The company's production volumes fell about 15% in 2012. As a result, the company's liquidity has weakened. In S&P's view, the company's EBITDA interest coverage could be less than 1x, and its ability to repay its 2015 bullet maturity on its senior unsecured notes has diminished. S&P assess Hidili's business risk profile as "vulnerable" and financial risk profile as "highly leveraged," as the terms are defined in S&P's criteria. "We believe Hidili's total production level in 2013 will be less than our original projections because of the mine closures," said Standard & Poor's credit analyst Jian Cheng. "Although Hidili has a reasonable safety record, the authorities ordered all coal mines in Panzhihua, Sichuan province, closed for safety checks because of accidents in the mines of other companies." Hidili's mines in the Guizhou and Yunnan provinces have resumed production after safety check suspensions recently. In Panzhihua, two out of five mining regions have resumed production. The two regions contribute more than 50% of the production of Panzhihua. However, as Panzhihua accounted for most of Hidili's production in the past, the closures will still affect its overall output. S&P considers that Hidili's financial flexibility has diminished. The company refinanced its convertible bonds early in 2013, but the interest costs associated with the new debt have risen to a point where the company may not generate enough cash flow to meet interest payments in the next 12 months. In addition, S&P believes the company's cash flow will not be sufficient to repay its bond maturity in 2015. "The negative outlook reflects our view that Hidili's coal mining operations may not generate enough cash flow to cover the high interest burden in the next 12 months. The outlook also reflects the company's limited options for repaying its debt, and the possibility that it will be unable to roll over its short-term debt," Mr. Cheng said. S&P may lower the rating if, over the next six months, it believes that Hidili will: -- Fail to roll over its short-term loans, or -- Miss an interest payment, or -- Fall into a technical default, which would lead to accelerated payment of outstanding bonds. S&P could also lower the rating if it was to further reduce its base-case forecast for Hidili's production volumes. S&P may revise the outlook back to stable if it believes the company can pay its interest burden using its own operating cash flow, the likelihood of bond payment acceleration is low, and Hidili's short-term debt will be rolled over. This could occur if the company is successful in obtaining new funding or selling assets. XINYUAN REAL: Fitch Assigns 'B+' Long-Term Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has assigned US-listed China-based homebuilder Xinyuan Real Estate Co., Ltd. a Long-Term Issuer Default Rating (IDR) of 'B+' with Stable Outlook and a senior unsecured rating of 'B+' and Recovery Rating 'RR4'. Fitch has also assigned Xinyuan's proposed senior unsecured USD notes an expected 'B+(EXP)'/'RR4' rating. The notes are rated at the same level as Xinyuan's senior unsecured rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company. The final rating is contingent on the receipt of final documents conforming to information already received. Key Rating Drivers Financial strength balances scale: Xinyuan's rating is dependent on its financial strength remaining solid, especially in maintaining sufficient cash to meet short-term debt obligations. Its small scale constrains its business diversity in terms of a narrow product mix, limited geographical spread, and a small number of projects being sold in a year relative to peers. Xinyuan's low EBITDA margin of about 13% on a five-year rolling average basis reflects that it is susceptible to sudden sharp home price swings, such as that in 2008. Asset-light small homebuilder: Xinyuan's small holding of property development assets give its creditors less protection in the event of asset liquidation. Its land bank by saleable gross floor area (GFA) of 1.2 million square metres (sqm) at end-2012 was less than the size of similarly rated peers. Even including the new land Xinyuan is close to acquiring, its land bank will still be less than half of that of its peers. Further, its land acquisition strategy will continue to focus on fast-growing 2nd and 3rd tier cities with a concentration on Henan Province. Xinyuan's contracted sales of CNY5.2bn in 2012 were, however, comparable to other 'B+' rated Chinese homebuilders. Land cost affects margin: Xinyuan's high proportion of land cost versus its selling price kept profit margin low. Land cost has been between 20% and 30% of its average selling prices (ASP). This is compared with less than 20% for most Chinese homebuilders. The higher proportion of land cost was in part due to its land being acquired in land auctions and also partly because Xinyuan's fast turnover business model does not allow for much land price appreciation, given the short lead time between land acquisition and the start of presales. However, the company aims to partly mitigate this acquiring land plots through negotiated land auctions, whereby land costs may be closer to 20% of ASP. Healthy credit metrics: Xinyuan has been in a net cash position since 2011. Its low inventory levels are a result of its high asset turnover strategy, thus minimising investments in development properties. The company's 2012 contracted sales/total debt ratio of 2.7x was the highest among Fitch-rated Chinese homebuilders. Replicating home base success: Xinyuan has developed 24 projects since 2001, 16 of which are in Zhengzhou. Since 2007, Xinyuan has replicated its successful Zhengzhou developments in other cities. This has helped Xinyuan gain new markets in Jinan, Kunshan, Chengdu, Suzhou and Xuzhou. These new markets are now growth opportunities for Xinyuan as seen by its development presence in Jinan, Suzhou, and Xuzhou. Undergoing faster expansion: Xinyuan has gone through financial consolidation between 2008 and 2012 in the face of market uncertainty. Its financial strength makes it an attractive strategic partner to local land authorities for participation in early stage land development. This will help Xinyuan undergo a faster pace of land acquisition in Zhengzhou. Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include: - reduction of scale as reflected by a fall in GFA land bank to less than two years - contracted sales falling below CNY5bn - net debt/adjusted inventory falling below 25 - changes to its fast turnover model where contracted sales/gross debt fall below 1.5x Positive: Positive rating action is not expected in the next 18-24 months due to Xinyuan's small operational scale and lack of business diversification. However, future developments that may, individually or collectively, lead to positive rating action include: - significant increase in scale as reflected by contracted sales exceeding CNY15bn - increase in business diversification by geography, by product mix as well as in presence in a greater number of cities - maintaining a strong financial profile ========= I N D I A ========= GOOD LUCK: ICRA Reaffirms 'BB' Rating on INR3.85cr Term Loans ------------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]BB' to the INR10.35 crore (reduced from INR10.76 crore) fund based bank facilities and INR0.41 crore proposed facilities of Good Luck Corporation. The outlook on the long term rating remains "Stable". Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 3.85 [ICRA]BB (Stable) reaffirmed Fund Based Limits 6.50 [ICRA]BB (Stable) reaffirmed/ (Cash Credit) Assigned Proposed Limits 0.41 [ICRA]BB (Stable) Assigned The rating reaffirmation takes into account the firm's modest financial profile as indicated by low net margins and high working capital intensity (NWC/OI of 52% in FY 2012) owing to stretched inventory and receivables position. The rating continues to remain constrained by GLC's modest scale of operations which increases its vulnerability to competitive pressures in a fragmented weaving industry and susceptibility of profitability to fluctuations in yarn prices. The rating however continues to draw comfort from the experience of the promoters in the manufacture of grey fabric favorable capital structure, along with the firm's long standing relationships with its suppliers and customers. GLC was incorporated in 1990 as a proprietorship entity and was changed to a registered partnership firm in November, 2002. Managed by two partners, Mr. JK Mundhra and Mr. Praveen Bansal, it is engaged in the business of manufacturing grey fabrics for curtains from Polyester Texturised Filament Yarn of count 150-700 Denier.GLC has a registered office in Mumbai and a manufacturing unit at Bhiwandi, Maharashtra. Recent Results: GLC recorded a profit before tax of INR3.53 crore on an operating income of INR17.08 crore for the nine months ending December 31, 2012 (provisional). MANSAROVAR COLD: ICRA Assigns 'D' Ratings on INR5.96cr Loans ------------------------------------------------------------ ICRA has assigned the rating of '[ICRA]D' to INR5.96 crore long term fund based bank limits of Mansarovar Cold Storage. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Pledge Loan 2.32 [ICRA]D assigned Cash Credit 0.20 [ICRA]D assigned Term Loan 3.44 [ICRA]D assigned The assigned rating takes into consideration the stretched liquidity position of the company resulting in delays in interest servicing obligations and the small scale and limited track record of the operations of the firm. Besides, the firm's capital structure is highly leveraged resulting from the predominantly debt funded setting up of the cold storage unit; gearing is expected to remain high going forward as well given the working capital intensive nature of operations arising from the need to provide advances to farmers/customers. Further, ICRA's rating takes into consideration the partnership nature of concern; withdrawals from capital account can adversely affect gearing of the firm. The rating, however, favorably considers the experience of the partners in potato trading business and favorable location of the firm in Deesa (Gujarat), an area with a high output of potato. Mansarovar Cold Storage started commercial operations from Feb 2012. The firm is located at Deesa, Gujarat; it is engaged in the business of providing cold storage facility for potatoes. The company has a total capacity to stock 1,50,000 bags of potato of 50 kg each. MCS has received capital subsidy of INR1.14 crore from National Horticulture Board for setting up cold storage and receives interest subsidy of 6% from Gujarat Agro Industries Corporation. MARUTI OIL: ICRA Assigns 'B' Ratings to INR6.48cr Loans ------------------------------------------------------- ICRA has assigned an '[ICRA]B' rating to the INR6.48 crore of long-term fund based limits of Maruti Oil Mills. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 5.75 [ICRA]B Assigned Term Loan 0.73 [ICRA]B Assigned The assigned rating is constrained by the weak financial risk profile of the firm marked by low profitability with operating margins of 1.9%, stretched coverage indicators with NCA/TD of 5%, TD/OPBDIT of 3.44 times and high gearing of 1.74 times as on 31st March 2012. The rating is also constrained on account of low value additive nature of operations and relatively small scale of MOM in a highly fragmented nature of industry thereby limiting its ability to pass on any adverse raw material price fluctuations to its customers. The rating further takes into account the high geographical concentration of the firm with more than 70% of the revenues in FY12 accounted from sale of cotton lint in Tamil Nadu. However, the rating favorably factors in the promoter's long track record of over two decades in the cotton ginning industry, proximity of the firm's ginning unit to cotton growing areas in Warangal (Andhra Pradesh) facilitating easy procurement of raw materials. Setup in 2007, Maruti Oil Mills is engaged in cotton ginning, pressing and extraction of cotton seed oil. The firm's plant is located in Warangal district of Andhra Pradesh with a capacity of 24 gins, 1 pressing unit and 6 oil expellers for ginning, pressing and oil extraction. Recent Results As per provisional 11MFY13 results, the firm registered an operating income of INR39.6 crore with an operating profit of INR0.40 crore. During FY12, the OI and PAT of the firm stood at INR21.9 crore and INR0.10 crore, respectively. MONOPOLY YARNS: ICRA Cuts Ratings on INR6.55cr Loans to 'B' ----------------------------------------------------------- The long term rating for the INR6.55 crore fund based facility of Monopoly Yarns Pvt. Ltd. has been revised to '[ICRA]B' from '[ICRA]B+'. The short term rating for the INR0.50 crore non fund based facility of MYPL has been reaffirmed at '[ICRA]A4'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan 5.05 Revised to [ICRA]B Long term Fund Based Limits (CC) 1.50 Revised to [ICRA]B Short term Fund Based Limits (BG) 0.50 [ICRA]A4 reaffirmed Short term Non Fund Based Limits (Import LC) (0.30) [ICRA]A4 reaffirmed Short term Non Fund Based (0.75) [ICRA]A4 reaffirmed Limits (Import /Inland LC The rating revision reflects the slow ramp up of operations as compared to levels envisaged earlier and consequently weak financial profile characterized by negative networth, high debt levels and consequently weak coverage indicators. Net losses in the past have led to erosion of networth while debt levels have been high on account of the debt funded expansion undertaken by the company. The rating also takes into consideration the susceptibility of profitability margins to volatility in prices of polyester chips and a concentrated customer and supplier base resulting in weak bargaining power. Monopoly Yarns Pvt. Ltd. (formerly Advin Tradefin Pvt. Ltd), incorporated in 1995 is part of Shri Damodar Group, engaged in processing and manufacturing of polyester filament yarn and 20D mono polyester filament yarn. MYPL has a group concern, Shri Damodar Yarn Manufacturing Pvt. Ltd. (Rated [ICRA]BB- (Stable)/[ICRA]A4), engaged in the business of manufacturing and processing of yarn. MYPL has a registered office in Mumbai and manufacturing unit at Silvassa, Gujarat. Recent Results: During 2011-12, the company has reported a net loss of INR1.45 crore on an operating income of INR11.43 crore. As per the 9M unaudited results of 2012-2013, the company has reported a sale of INR8.90 crore. NATIONAL CENTRE: ICRA Rates INR8.80cr Loan at '[ICRA]B+' -------------------------------------------------------- ICRA has assigned an '[ICRA]B+' rating to the INR8.8 crore fund based facilities of National Centre for Development of Technical Education. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based limits 8.80 [ICRA]B+ assigned The rating reflects the small scale of operations with a single institute at present, limited number of courses offered by the college, limited track record of operations and an adverse student faculty ratio, which is lower than the prescribed norms. The rating also reflects the limited financial flexibility of the Trust with respect to determining the fee structure, which is entirely regulated by the State Government, and hence limits profitability. The ratings are supported by favorable demand outlook for higher education in India, the accreditation of the college and courses by AICTE, and moderate capital structure and coverage indicators of the company. ICRA also notes that the trust is in the process of starting new courses in the near term which is likely to mitigate the risks arising out of limited number of courses. National Centre for Development of Technical Education is a charitable trust established in 2007 with a motive to impart higher education in India. The trust currently manages Global Institute of Management and Technology which was established in 2009 at Krishnanagar, West Bengal. GIMT offers bachelor degree in five streams viz. Computer Science & Engineering, Electronics & Communication Engineering, Electrical Engineering, Civil Engineering and Mechanical Engineering. The total intake capacity is 360 at present. Recent Results: NCDTE posted a PAT of INR1.30 crores on an OI of INR4.02 crore in 2011-12. During 2010-11, it posted a PAT of INR0.61 crores on the back of an OI of INR2.44 crores. SHREE DURGA: ICRA Lowers Ratings on INR123.2cr Loans to 'BB+' ------------------------------------------------------------- ICRA has revised the long-term rating assigned to INR123.20Cr. (enhanced from INR26.41 crore) long term fund based facilities of Shree Durga Syntex Private Limited to '[ICRA]BB+' from '[ICRA]BBB-'. ICRA has also revised the short-term rating assigned to INR2.00 crore (reduced from INR10.00 crore - sublimit of CC limit) short-term facilities of SDSPL from '[ICRA]A3' to '[ICRA]A4+'. The outlook has been revised from Stable to Negative. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based-Cash Credit 15.00 Revised from [ICRA]BBB- (Stable) to [ICRA]BB+(negative) Fund Based-Term Loans 108.20 Revised from [ICRA]BBB- (Stable) to [ICRA]BB+(negative) Short Term-Non Fund 2.00 Revised from [ICRA]A3 to Based [ICRA]A4+ The revision in ratings factors in deterioration in the capital structure of the company on account of aggressive debt-funded capacity expansion incurred during FY 13 and decline in operating margins due to increased power and fuel cost and limited ability of the company to fully pass on the same to customers. The ratings are, further, constrained by the highly fragmented nature of the textile industry leading to intense competition from organised as well as unorganised players which limits the pricing power of the company, availability of natural gas at competitive prices for the company in order to maintain a competitive conversion cost and achieve desired utilization levels, vulnerability of profitability to adverse fluctuations in raw material prices which are ultimately linked to crude oil prices and low bargaining power of the company due to reliance on a limited number of raw material suppliers who also happen to be large industry players. ICRA also takes note of the proposed debt funded expansion plan of FDY capacity which may result in material weakening of debt protection metrics of the company over the short to medium term. The ratings, however, take into consideration the long experience and established track record of the promoters in the textile industry; consistent growth in operating income as well as healthy capacity utilization maintained by the company over the last four years. ICRA also notes that the SDSPL continues to receive substantial operational support from other group entities which act as consistent source of demand for company's products. Apart from this, access to established marketing network of the group spanning the major yarn consumption centres partly mitigates the marketing risk for the company. The ratings also positively factor in the possible benefits to be derived from the company's backward integration into manufacturing of PET chips/melt with respect to improvement in cost competitiveness and quality of the final product. Incorporated in 2003, Shree Durga Syntex Private Limited is promoted by Mr. Bachharaj Begani and his son Mr. Pawan Begani. The company has implemented fully drawn yarn (FDY) and grey fabric manufacturing facility at Surat in Gujarat having a capacity of around 65 TPD (Tonnes per day) and 25 TPD respectively. The company commenced commercial operations in September 2007 and has steadily ramped up its operations. The Begani group is engaged in processing/trading/weaving of synthetic fabrics like furnishing, sarees and dress materials in Surat for more than two decades. During FY 13, the company has backward integrated into manufacturing of PET chips by setting up a continuous polymerization plant of 300 TPD capacity. SHRI DAMODAR: ICRA Reaffirms 'BB-' Ratings on INR21.83cr Loans -------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB-' rating assigned to the INR21.83 crore (previous year INR16.93 crore) long term fund based facilities of Shri Damodar Yarn Manufacturing Pvt. Ltd. The '[ICRA]A4' rating for the INR3.00 crore (previous year INR2.50 crore) short term non fund based facilities has also been reaffirmed. The outlook assigned on the long term rating is "Stable". Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan I 4.07 [ICRA]BB-(Stable) reaffirmed Term Loan II 1.01 [ICRA]BB-(Stable) reaffirmed Term Loan III (New) 5.75 [ICRA]BB-(Stable) reaffirmed Long term Fund Based 11.00 [ICRA]BB-(Stable) reaffirmed Limits (CC) Short term Fund 1.00 [ICRA]A4 reaffirmed Based Limits Short term Non Fund 3.00 [ICRA]A4 reaffirmed Based Limits The rating reaffirmation continues to factor in the modest financial profile of the firm characterized by a highly leveraged capital structure, weak coverage indicators and tight liquidity resulting in high utilization of bank limits. The ratings are also constrained by DYMPL's moderate scale of operations in a highly competitive and fragmented industry together with fluctuating raw material prices affecting the margins. The rating however favorably takes into consideration the entrenched experience of the promoters in the business of yarn processing, diversified and reputed client base, operational backing from group concerns and moderate growth in revenues and profit margins in the last three financial years. Shri Damodar Yarn Manufacturing Pvt. Ltd., incorporated in 1983 is a part of Shri Damodar Group engaged in the business of manufacturing and processing of yarn. DYMPL has a group concern, Monopoly Yarns Pvt. Ltd. (Rated [ICRA]B/[ICRA]A4), engaged in manufacture of polyester filament yarn and 20D mono polyester filament yarn. DYMPL has a registered office in Mumbai and manufacturing unit at Sarigam, Gujarat. Recent Results: During 2011-12, the company has reported a net profit of INR1.71 crore on an operating income of INR55.43 crore. As per the 9M unaudited results of 2012-2013, the company has reported a sale of INR70.02 crore. SP JAISWAL: ICRA Downgrades Ratings on INR65cr Loans to 'D' ----------------------------------------------------------- ICRA has downgraded the rating assigned to the INR62 crore long term bank lines of S. P. Jaiswal Estates Private Limited to '[ICRA]D' from '[ICRA]BBB+'. ICRA has also downgraded the rating assigned to the INR3 crore non fund based bank limits of SPJEPL to '[ICRA]D' from '[ICRA]A2+'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 57.75 Downgraded to [ICRA]D Fund Based Limits 4.25 Downgraded to [ICRA]D Non Fund Based Limits 3.00 Downgraded to [ICRA]D The revision in the rating takes into account the recent delays made by the company in servicing its debt in a timely manner. SPJEPL was incorporated in 1969 with the setting up of a hotel in Kolkata under the brand name 'The Hotel Hindusthan International' (HHI). Subsequently, the company set up a hotel each in Varanasi and Bhubaneshwar in 1988 and 2007 respectively. SPJEPL also acquired a hotel in Bangalore in Sep'11. Currently, the company has a total room inventory of 433 rooms spread across these four cities. The company also provides hotel management education under the name 'Regency HHI Institute of Hotel Management & Catering Technology' in Varanasi. SYSCON ENGINEERS: ICRA Assigns 'BB' Rating to INR5.5cr Loan ----------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]BB' for INR5.50 Crore fund based facilities of Syscon Engineers. ICRA has also assigned a short-term rating of '[ICRA]A4+' to the INR1.75 Crore non fund based facilities of SE. The long term rating carries a stable outlook. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 5.50 [ICRA]BB (stable) assigned Bank Guarantee 1.25 [ICRA]A4+ assigned Letter Of Credit 0.50 [ICRA]A4+ assigned The assigned ratings take into account the long experience of promoters in execution of fabrication for moderately complex structures which have resulted in strong relationships with its customers comprising of reputed companies and assisting in procuring repeat orders. The rating also positively factors in the wide product portfolio of the firm which reduces industry specific risks and its healthy profitability indicators as reflected by RoCE of 27% in FY12. The ratings are, however, constrained by the modest scale of operations of the firm with revenue growth linked to timeliness of project execution by its large clients; the competition from established peers and the vulnerability of profitability to any unfavorable fluctuations in prices of key raw materials given the fixed price nature of equipment supply contracts. The ratings are further constrained by the working capital intensive nature of operations on account of long fabrication timelines. Syscon Engineers, incorporated in 1995 by two mechanical engineers- Mr. C.A.Benadikar and Mr. Gautam Ghosh, is engaged in providing process equipments and solutions required for chemical, power, petrochemical, fertiliser, water treatment, pharmaceutical and other associated industries. SE also undertakes turnkey projects involving, engineering, procurement, fabrication, supply and erection of mechanical systems. SE has its fabrication unit in Ambernath, Thane with an installed capacity of 1,000 MTPA Recent results SE has reported a profit after tax (PAT) of INR0.66 crore on an operating income of INR20.02 crore in FY12 as against a PAT of INR0.47 crore on an operating income of INR13.38 crore in FY11. UNITED HOTELS: ICRA Downgrades Ratings on INR35cr Loans to 'D' -------------------------------------------------------------- ICRA has downgraded the rating assigned to the INR35 crore long term bank lines of United Hotels & Properties Private Limited to '[ICRA]D' from '[ICRA]BB+'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 34 Downgraded to [ICRA]D Fund Based Limits 1 Downgraded to [ICRA]D The revision in the rating takes into account the recent delays made by the company in servicing its debt in a timely manner. Incorporated in 1992, UHPL was acquired by the present management in 2007. UHPL has leased out its assets (land, building and other equipments) at Bhubaneshwar to S. P. Jaiswal Estates Private Limited, the flagship company of the HHI group. The company is earning a lease rental from SPJEPL for its Bhubaneshwar property. The company has also set up a 3 star hotel at Pune in 2012, branded as 'The HHI Pune'. ==================== N E W Z E A L A N D ==================== STARPLUS HOMES: Mitre 10 Pushes Liquidation of Chinese Builder -------------------------------------------------------------- Waikato Times reports that Mitre 10 Hamilton has asked the High Court to put Chinese house builder Starplus Homes into liquidation. The Times relates that the big hardware outlet said Starplus Homes, which ceased trading over earlier this month, owes it NZ$1.1 million in unpaid bills. According to the report, Hamilton lawyer Murray Branch of Harkness Henry said Hamilton Hardware Retail, which owns Mitre 10 Hamilton, has applied to the High Court at Hamilton for an interim liquidator to be appointed. The Times previously reported that Starplus, which was heading to be the Waikato's biggest house building company, had ceased trading and let go its sales staff amid reports of contractors and subcontractors owed hundreds of thousands of dollars. Mr. Branch said the application to the High Court would be heard on April 24, the report notes. ================ S R I L A N K A ================ BANK OF CEYLON: Fitch Assigns 'BB-' Rating to US$500MM New Notes ---------------------------------------------------------------- Fitch Ratings has assigned Sri Lanka-based Bank of Ceylon's USD500 million unsecured notes due 2018 a final rating of 'BB-'. This follows the receipt of the final documents conforming to information previously received. The final rating is at the same level as the expected rating assigned on 28 March 2013 (see 'Fitch Affirms Bank of Ceylon's 'BB-' IDRs' on www.fitchratings.com). The notes have a maturity of five years and coupon payments will be at a fixed rate of 5.325% on a semi-annual basis. The issue proceeds are to be partly used for refinancing near-term maturities, as well as for balance sheet growth. Key Rating Drivers The notes are rated at the same level as BOC's Long-Term Foreign Currency Issuer Default Rating (IDR) as they will constitute direct, unsubordinated and unsecured obligations of the bank, and will rank equally with all its other unsecured and unsubordinated obligations. BOC's Long-Term IDR is driven by the Government of Sri Lanka's (GOSL) high propensity but somewhat limited ability to provide timely support to the bank at times of distress. In Fitch's view, the state's high propensity stems from BOC's systemic importance as the largest bank in the country - accounting for nearly 20% of banking system's deposits and assets - its quasi-sovereign status, its role as a key lender to the government and full government ownership. The state's limited ability is reflected in the 'BB- '/Stable sovereign rating. Rating Sensitivities Any change in the GOSL's ability or propensity to extend support to BOC will result in a corresponding change in BOC's IDRs and hence the issue rating. =========== T A I W A N =========== TRANSAKT LTD: KCCW Accountancy Raises Going Concern Doubt --------------------------------------------------------- TransAKT Ltd. filed on April 15, 2013, its annual report on Form 10-K for the year ended Dec. 31, 2012. KCCW Accountancy Corp., in Diamond Bar, Calif., expressed substantial doubt about TransAKT Ltd.'s ability to continue as a going concern, citing the Company's accumulated deficit of $3,911,792 at Dec. 31, 2012, including net losses of $1,338,033 and $337,463 during the years ended Dec. 31, 2012, and 2011, respectively. The Company reported a net loss of $1.3 million on $202,636 of sales in 2012, compared with a net loss of $337,463 on $nil sales in 2011. The Company's balance sheet at Dec. 31, 2012, showed $11.7 million in total assets, $4.6 million in total liabilities, and stockholders' equity of $7.1 million. A copy of the Form 10-K is available at http://is.gd/uvFBrh Based in Yangmei City, Taoyuan, Taiwan, TransAKT Ltd., a Nevada corporation, has operated principally as a research and development company since the Company's inception but abandoned its telecommunications technology business in fiscal 2012. Through its wholly owned subsidiary, Vegfab Agriculture Technology Co., Ltd., the Company is now engaged in the manufacture, marketing and sale of hydroponic and LED based agricultural equipment for commercial and home use. =============== X X X X X X X X =============== * CVC Capital to Launch 4th Asian Fund -------------------------------------- Karlee Weinmann of BankruptcyLaw360 reported that London private equity house CVC Capital Partners is preparing to launch its fourth Asian fund, this time setting a target of about $3 billion -- well below the goal for its 2008 Asia-focused effort, which brought in $4.1 billion, sources told Dow Jones Newswires on Thursday. The new vehicle's lower target comes as a generally weak economy has investors keeping a tighter grip on their pocketbooks, especially as private equity owners strain to unload the big- ticket assets already in their portfolios, the report said. ********* 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, 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 ***