/raid1/www/Hosts/bankrupt/TCRAP_Public/130429.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 29, 2013, Vol. 16, No. 83
Headlines
A U S T R A L I A
BAROSSA VALLEY: Woolies Backs Out of Talks, Delegat's Bid Wins
PATINACK FARM: Owner Expects to Finalize Sale 'Within Weeks'
TAMAR VALLEY: To Trade On as Creditors Agree on Revamp Offer
B A N G L A D E S H
* Moody's Outlook on Bangladesh's Ba3 Rating is Stable
C H I N A
YINGDE GASES: Fitch Assigns 'BB' Rating to New Unsecured Notes
* Retail Investors Drive Falling Chinese MMF Assets, Fitch Says
* Fitch Says Quake Has Limited Impact on Insurers' Performance
* Property Market in China Remain Bullish Says Moody's
I N D I A
EMERALD VITRO: CRISIL Assigns 'B-' Rating to INR83MM Loans
GOURAV POULTRIES: CRISIL Assigns 'B+' Ratings to INR164.5MM Loans
MANIRANJAN DIESEL: CRISIL Reaffirms 'BB' Rating on INR65MM Loans
PUSHPAM TECHNO: CRISIL Rates INR120MM Term Loan at 'BB-'
SBIW STEELS: CRISIL Upgrades Rating on INR100.7MM Loans to 'B-'
SUMA SHILP: CRISIL Reaffirms 'BB-' Rating on INR1.2BB Loans
SURYA INDUSTRIES: CRISIL Rates INR90MM Cash Credit at 'BB-'
SWAN ENVIRONMENTAL: CRISIL Ups Rating on INR62.8MM Loans to 'BB'
T MADHAVA: Delay in Loan Payment Cues CRISIL to Assign D Ratings
T MADHAVA RAO: CRISIL Assigns 'B-' Rating to INR45 Million Loan
TECHNOY MOTORS: CRISIL Assigns 'BB' Rating to INR100MM Loans
J A P A N
NEC CORP: To Get JPY130BB Financing, Sell Stake in Phone Unit
N E W Z E A L A N D
STARPLUS HOMES: In Receivership, Owes $25 Million
WESTERN PACIFIC: Liquidators Still Wait For NZ$34MM Payments
ZION WILDLIFE: Consultant Seeks to Wind Up Park Operator
- - - - -
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A U S T R A L I A
=================
BAROSSA VALLEY: Woolies Backs Out of Talks, Delegat's Bid Wins
--------------------------------------------------------------
The Sydney Morning Herald reports that Woolworths Limited has
walked away from talks to purchase the wine assets of Barossa
Valley Estate, with Delegat's Group making a successful offer to
buy the vineyard for AUD24.7 million.
According to the report, Delegat's Group, owner of the popular
Oyster Bay wine brand, announced its acquisition of Barossa Valley
Estate to the New Zealand Stock Exchange earlier Friday.
SMH says Woolworths has been a keen acquirer of vineyard assets,
scooping up Dorrien Estate Winery and Vinpac when it bought wine
club group Cellarmasters in 2011. It was reported Woolworths had
made a AUD13 million offer for Barossa Valley Estate, says SMH.
The winery has processing facilities capable of crushing up to
4,000 tonnes of grapes, the report notes.
The Construction Index said Delegat's Group bought the assets of
Barossa Valley Estate for A$24.7 million, just two months after
snapping up the distressed vineyard and winery assets of Matariki
Wines and Stony Bay Wines.
The Auckland-based winemaker said in a statement that it will
acquire a 5,000 tonne winery, a 41 hectare vineyard in the Barossa
Valley, grape grower contracts and inventory and brands, according
to The Construction Index.
The report relates that the deal is expected to settle in June,
and will be funded through existing bank facilities.
"The acquisition of the assets of Barossa Valley Estate is an
ideal fit with the group's portfolio of high quality wine assets.
. . . These wine styles are complementary to the group's current
business and provide an opportunity for substantial future sales
growth globally," the report quoted Managing Director Jim Delegat
as saying.
About Barossa Valley
Barossa Valley Estate is a South Australia-based group winery
cooperative. The group was placed in receivership on Jan. 15,
2013, with reported debts of AUD20 million. Sam Davies and
Rob Kirman of McGrathNicol were appointed receivers.
McGrathNicol on Feb. 14 announced the sale of BVE as a going
concern.
"Since our appointment on January 15, we have been working
closely with BVE management and contract growers to prepare the
BVE business and assets for sale and we are now in a position to
launch the sale," said Receiver Sam Davies.
Mr. Davies said the BVE brand and winery had already attracted
significant interest from local, national and international
parties.
PATINACK FARM: Owner Expects to Finalize Sale 'Within Weeks'
------------------------------------------------------------
Australian Associated Press reports that Patinack Farm owner
Nathan Tinkler expects to finalize the sale of his massive racing
and breeding operation within weeks.
According to AAP, Mr. Tinkler was at Doomben racetrack on Saturday
to watch his promising two-year-old Hooked win, and he opened up
about the personal impact of his decision to sell Patinack Farm,
which has been mired in controversy in recent months.
"Let's just say there's bad luck and there's Patinack luck and
we'll put it down to that," the report quotes Mr. Tinkler as
saying.
AAP relates that Mr. Tinkler said he was working through
expressions of interest from Australian and overseas buyers.
"We've got a lot of people interested," Mr. Tinkler, as cited by
AAP, said.
"They're a great team of staff and a great bunch of horses, so we
should be able to finalise things in the next couple of weeks."
As reported in the Troubled Company Reporter-Asia Pacific on
April 22, 2013, The Australian said Mr. 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 said 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 related that it
was alleged Mr. Tinkler as a director of Mulsanne engaged in
insolvent trading last year.
TAMAR VALLEY: To Trade On as Creditors Agree on Revamp Offer
------------------------------------------------------------
Rose Grant at ABC News reports that creditors of the Launceston-
based yoghurt maker, Tamar Valley Dairy, have agreed to allow the
company to trade on.
At a meeting on April 26, all the creditors have agreed
conditionally to a restructuring proposal, to increase the
company's liquidity, according to ABC News.
ABC News relates that managing director, Archie Matteo, said the
company is recovering from costly problems in commissioning its
new AUD20 million factory.
He says the mood of the creditors meeting was supportive and the
trading partners are remaining loyal, the report relays.
"We are in a tight spot, we've had a liquidity problem," the
report quotes Mr. Matteo as saying. "But the company is
profitable and we'll go into the future and be maintained in
Tasmanian hands."
ABC News adds that Mr. Matteo said the company's financial
problems are not related to its 10-year contract with Coles
supermarkets.
Tamar Valley Dairy is a Launceston-based yoghurt maker.
===================
B A N G L A D E S H
===================
* Moody's Outlook on Bangladesh's Ba3 Rating is Stable
------------------------------------------------------
Moody's Investors Service says that Bangladesh's Ba3 rating and
stable outlook reflect Moody's assessment of four factors: its
"low" economic, institutional and government financial strengths,
as well as its "low" susceptibility to risks from financial,
economic and political events.
According to a just-released Moody's report titled, "Credit
Analysis: Bangladesh," the country's strong and stable growth
support its rating. Macroeconomic stability was regained in 2012,
as seen in the shift in the current account back to surplus and
the decline in inflation. However, persistent labor disruptions
and bank stability pose risks going forward.
Importantly, the International Monetary Fund's Extended Credit
Facility (ECF) approved in March 2012 is providing a framework for
prudent policies. The government has passed two major pieces of
legislation -- the Bank Companies Act (BCA), which aims to enhance
the mandate of Bangladesh Bank, the country's central bank; and a
landmark revision to the VAT law.
The rating also incorporates economic, government financial, and
institutional weaknesses. Fiscal imbalances have constrained
Bangladesh's government financial strength, mainly because of its
extremely low revenue to GDP ratio of 13% resulting not from a
policy of low taxation, but from a low tax base and poor
compliance.
Bangladesh's governance weaknesses became more apparent in the
past year, as seen in the World Bank's suspending funding for the
Padma Bridge Project in June 2012 and a state-owned bank's,
Sonali, misappropriation of funds a few months later.
The incident involving Sonali Bank highlighted the weak governance
structure of state-owned commercial banks and prompted the
government to significantly tighten the regulatory framework to
prevent the recurrence of such incidents.
Moreover, escalating political tensions in the run-up to
parliamentary elections -- due between October 2013 and January
2014 -- are a deterrent to investment and are disruptive to
economic growth. Although political strife is unlikely to spiral
out of control, Moody's would view prolonged unrest as credit
negative.
=========
C H I N A
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YINGDE GASES: Fitch Assigns 'BB' Rating to New Unsecured Notes
--------------------------------------------------------------
Fitch Ratings has assigned China-based Yingde Gases Group Company
Limited's proposed USD senior unsecured notes an expected rating
of 'BB(EXP)'. The notes are to be issued as a tap to the USD300m
8.125% bonds due 2018 issued in April 2013, with the same terms
and conditions. The notes will be issued by Yingde Gases
Investment Limited and unconditionally and irrevocably guaranteed
by Yingde.
The proceeds will be used for refinancing certain existing
indebtedness. The final rating of the proposed notes is contingent
upon the receipt of documents conforming to information already
received.
Key Rating Drivers
Utility type business: Yingde's on-site gas supply business, which
contributed to 88% of its revenue in 2012 (82% in 2011), generates
stable cash flow similar to utilities companies. This operation
benefits from the cost pass-through and minimum off take mechanism
in the long-term contracts between Yingde and its on-site
customers.
Stable profitability: Relative to peers in the industry, Yingde
enjoys more stable profitability with its high contribution from
the on-site business. Gross profit has risen every year with
growing capacity. Yingde's gross margin (2012: 32%; 2008-2011:
between 34% and 41%) showed slight volatility since its merchant
sales business, which enjoys high gross margins of over 80%, is
subject to volatile demand and pricing. Yingde's competitors, who
have higher exposure to this segment, tend to have a more volatile
earnings profile.
Diversified funding sources: Yingde's strengthening access to
various funding sources has given it greater financial flexibility
to fund its long-standing projects. This is demonstrated by the
following financing arrangements - offshore syndicated loans
amounting to USD300m, onshore CNY880m MTN notes, and long-term
project financing loans with long maturities of more than five
years.
Negative free cash flow (FCF) constrain ratings: High capex over
the next three to five years will put Yingde in negative FCF.
Yingde is still at an expansionary stage and its cash flow will be
insufficient to fully fund its capex unless capex stabilises at
CNY2bn by 2015. The high capex has caused funds from operations
(FFO) net leverage to rise to 4.1x in 2012, above Fitch's negative
rating guideline of 3.5x. However, Fitch expects this to be
temporary. Expedited capex in 2012 will result in higher cash flow
generation from 2014.
Small by global standards: The international industrial gases
sector is dominated by top international players who have strong
market positions in the merchant market and with financial
strength to compete in the on-site business. Although Yingde has a
stronghold in the Chinese on-site segment, the scale of the
company is still small by global standards.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- deterioration of Yingde's business profile demonstrated by
falling cash gross profit per unit for the on-site gas supply
business
-- failure to secure long-term funding for future growth
-- FFO adjusted net leverage being sustained above 3.5x, or
higher than 4.5x in any single year
-- FFO fixed charge coverage being sustained below 4.0x
Positive: Positive rating action is not expected in the next 12-18
months due to Yingde's high capex needs and negative FCF. However,
future developments that may, individually or collectively, lead
to positive rating action include:
-- significant increase in business scale increases without
deterioration in financial metrics
-- positive FCF on a sustained basis
* Retail Investors Drive Falling Chinese MMF Assets, Fitch Says
---------------------------------------------------------------
Assets at Chinese open-ended money market funds declined about 9%
in Q113, almost solely because of outflows from retail MMFs,
according to Fitch Ratings' calculations. The outflows were
significant but not surprising given the remarkable growth seen
last year and the increased appetite for riskier products from
retail investors since late 2012. "We expect assets under
management for retail offerings to remain volatile, while MMFs
aimed at institutional investors may see a period of
consolidation," Fitch says.
Total AuM fell to CNY520bn at the end of Q113 from CNY573bn at the
end of 2012. The decline was primarily driven by redemptions of
retail offerings (A-class) as investors opted to invest in riskier
equity and balanced funds instead. The switch followed big gains
for equities in the final quarter of last year, although equity
markets traded sideways in Q113. As a result, retail MMFs lost
almost 20% of their assets, ending the quarter with about
CNY241bn.
Assets in institutional offerings were stable with estimated
assets of about CNY279bn. This confirms their stickier nature, as
many investors are treasurers, some of whom will be restricted
from investing in equities. While this will help to prevent
outflows, more gradual inflows are expected in the near term,
given that last year's growth of 245% was unsustainable. For the
first time in the market's history, institutional MMFs surpassed
the level of the retail market, ending the quarter with a market
share of about 53%. Market concentration among the ten leading
MMFs increased in the quarter to about two-thirds as institutional
investors tend to favor larger funds.
The recent trend of strong growth in fund managers' short-term
wealth management products came to a stop in Q113. These products
are not required to provide the same liquidity as MMFs and
therefore provide higher yields. Despite new launches the majority
of existing products suffered outflows and more than half of them
now have less than CNY500m AuM, which makes it much harder for
managers to market them. "We estimate total AuM in the sector to
be around CNY112bn and given the sharp decline, we believe these
products are less likely to attract a significant portion of the
traditional MMF customer base in the near term," Fitch says.
At end-Q113 the traditional Chinese MMF sector consisted of 73
funds, of which 53 provide B-class offerings designed to meet the
needs of institutional investors.
* Fitch Says Quake Has Limited Impact on Insurers' Performance
--------------------------------------------------------------
Fitch Ratings does not expect the April 20, 2013, earthquake in
China's south-western Sichuan province to have a significant
impact on Chinese insurers' financial performance or solvency
position. While market-wide claim statistics are scarce and the
losses are still developing, initial claim figures from several
insurance companies and the insurance regulator suggest that the
losses on an incurred basis from the catastrophe are manageable
and will not trigger market-wide solvency issues for Chinese
insurers.
The insured losses from this event are unlikely to be material as
the affected regions lack large manufacturing plants or raw
material production centres. Additionally, insurance coverage in
the key quake area remains low, likely less than 1% in terms of
the ratio of insured loss to economic loss.
Economic losses for the May 2008 7.9-magnitude quake in Wenchuan
county of Sichuan, which destroyed infrastructure and properties
extensively, amounted to USD124bn while the total insured losses
were about USD366m.
While Fitch believes the claim cases of the April 2013 disaster
will escalate, the accumulated incurred losses are unlikely to
substantially exacerbate the underwriting margin of major non-life
players such as PICC Property and Casualty Company (PICC) and Ping
An Property and Casualty Company (Ping An) which are active in
Sichuan province.
PICC and Ping An together captured a market share of more than 60%
in the property and casualty segment in Sichuan, according to the
2011 statistics from the China Insurance Regulatory Commission
(CIRC). Nonetheless, premiums written from Sichuan, mainly from
the provincial capital Chengdu, generally accounted for less than
7% of most major non-life insurers' total written premiums.
The destructive 7.0-magnitude earthquake this month hit Lushan
county of Ya'an city in Sichuan, causing at least 193 fatalities
and injuring more than 12,000 people. According to CIRC, about 295
claim cases were reported while the claim payment amounted to
CNY10.02m at April 21, 2013.
* Property Market in China Remain Bullish Says Moody's
------------------------------------------------------
Moody's Investors Service, in the latest edition of its China
Property Focus newsletter, says the contract sales of Mainland
property companies remained strong in March 2013, while growth in
property prices continued.
"The strong sales growth in March was helped by the solid demand
for residential properties, as well as the low base in early 2012
when the effect of home-purchase restrictions took its toll on
property developers," says Kaven Tsang, a Moody's Vice President
and Senior Analyst.
"Moreover, many buyers purchased their homes in March before the
local governments finalized the details of the latest round of
regulatory controls on the property sector in April," Tsang adds.
According to the newsletter, nationwide contract sales grew 52.5%
year-on-year to RMB569 billion in March, while cumulative sales
for the first three months of 2013 grew 69% to RMB1,200 billion.
"Meanwhile, property prices in China's 70 major cities continued
to grow in March, led by first-tier cities, such as Beijing,
Shanghai Guangzhou and Shenzhen," says Tsang.
The number of cities with year-on-year growth in prices stood at
67 in March, the highest level since October 2011. By comparison,
the number was 62 in February.
Moreover, in 12 cities, prices increased more than 5% year-on-year
versus four in the previous month.
Beijing and Guangzhou reported the highest growth in property
prices, at 11.2% each, followed by 9.1% in Shenzhen and 7.8% in
Shanghai. However, Moody's expects recent regulatory restrictions
on the sector to somewhat slow down growth in both sales and
property prices.
"In addition, while the increased focus on mass-market housing and
the shift away from luxury housing will support growth in sales,
they will prevent prices from increasing sharply in the near
term," Tsang adds.
For 2012, the reported results of most of Moody's-rated companies
were in line with expectations while China Overseas Land &
Investment Limited's (COLI, Baa1 stable) and Longfor Properties
Company Limited's (Ba1 stable) robust results led to an upgrade of
their ratings.
Of the 35 developers that reported their 2012 results, 26 recorded
growth in recognized revenues in 2012. In general, growth in
revenues partly offset the drop in profit margins.
Nevertheless, Moody's has already factored in the possibility of a
moderate decline in profit margins into the companies' ratings.
The profit margins of developers will continue to decline in the
next 6-12 months, as they book presales conducted at lower prices
during the down cycle in late 2011 and early 2012. The increased
focus on mass-market housing will also weigh on their
profitability.
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I N D I A
=========
EMERALD VITRO: CRISIL Assigns 'B-' Rating to INR83MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Emerald Vitro Muro Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 39 CRISIL B-/Stable (Assigned)
Letter of Credit 12 CRISIL A4 (Assigned)
Bank Guarantee 5 CRISIL A4 (Assigned)
Cash Credit 44 CRISIL B-/Stable (Assigned)
The rating reflects EVMPL's below-average financial risk profile
marked by negative net worth, high gearing and weak debt
protection metrics, large working capital requirements and small
scale of operations in the competitive building materials segment.
These rating weaknesses are partially offset by the extensive
experience of EVMPL's promoters in the industry and funding
support from promoters.
Outlook: Stable
CRISIL believes that the company's financial risk profile will
remain constrained by its small cash accruals. The outlook may be
revised to 'Positive' if EVMPL reports more-than-expected growth
in revenues and profitability, leading to improvement in financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if EVMPL's financial risk profile deteriorates due to large
working capital requirements or lower-than-expected profitability
margins.
EVMPL was incorporated in 2008 in Mumbai by Mr. Kettan S Karkhanis
and Mr. Prasant B Nachane. It is engaged in facade engineering and
erection and installation of glass and aluminium glazing systems
and curtain walling.
For 2011-12 (refers to financial year, April 1 to March 31), EVMPL
reported a profit after tax (PAT) of INR1.7 million on net sales
of INR54.0 million; the company reported a PAT of INR1.4 million
on net sales of INR27.3 million for 2010-11.
GOURAV POULTRIES: CRISIL Assigns 'B+' Ratings to INR164.5MM Loans
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank loan facilities of Gourav Poultries India Private Limited
(GPPL, a part of Rathi Group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B+/Stable (Assigned)
Term Loan 134.5 CRISIL B+/Stable (Assigned)
The rating reflects Rathi Group's modest scale of operations with
vulnerability to risks inherent in poultry industry, intense
competition in the industry and it's below average financial risk
profile. These rating weaknesses are partially offset by extensive
industry experience of Rathi group's promoters and their
integrated operations with presence in feed processing along
hatchery cum broiler farms.
For arriving at its rating, the team has combined the business and
financial risk profiles of GPPL, Rathi Feed Pvt Ltd and Rathi
hatcheries Pvt Ltd, together referred to as Rathi group. This is
because the companies are in the same line of business, extends
financial support to each other in case requirements come and have
same management.
Outlook: Stable
CRISIL believes that Rathi group will benefit from its promoter's
extensive experience in the poultry industry and its integrated
operations. The outlook may be revised to 'Positive' if the group
increases its accruals substantially, leading to improvement in
its financial risk profile marked by improvement in its capital
structure and debt protection metrics. Conversely, the outlook may
be revised to 'Negative' if the group's accruals declines, leading
to further weakening of its financial risk profile or if its
capital structure weakens because of a large debt-funded capital
expenditure.
RHPL and GPPL are engaged in the business of poultry breeding,
hatching and broiling, and RFPL is into feed processing.
RHPL was set up in 2003 by the Haryana based Mr. Krishan Rathi and
family as a hatchery cum broiler unit. RHPL has day old chick
breeder farms with a capacity of 200,000 parent birds at Jind,
Haryana.
GPPL is a recently set up company in the group, set up in 2012,
and it also has a hatchery cum broiler unit. It has day old chick
breeder farms with a capacity of 100,000 parent birds at Jind,
Haryana.
RFPL was set up in 2008 and is a feed processing unit and fulfill
feed requirements of Rathi Group. The group internally consumes
around 50 per cent of feed processed by RFPL and sells the balance
in the open market. Its feed processing capacity is 200 tons per
day (TPD).
GPPL reported a profit after tax (PAT) of INR6.2 million on an
operating income of INR57.2 million for 2011-12 (refers to
financial year, April 1 to March 31).
MANIRANJAN DIESEL: CRISIL Reaffirms 'BB' Rating on INR65MM Loans
----------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Maniranjan Diesel
Sales and Services Pvt Ltd continues to reflect the benefits that
Maniranjan derives from its promoters' extensive experience, its
long-standing relationship with its principal, healthy prospects
for diesel and gas engines in the industrial and automotive
segments, and moderate financial risk profile marked by moderate
gearing and debt protection metrics, albeit with a small net
worth. These rating strengths are partially offset by the
company's small scale of operations and limited geographical
reach.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 5 CRISIL BB/Stable (Reaffirmed)
Channel Financing 60 CRISIL BB/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Maniranjan will continue to benefit over the
medium term from its established relationship with key suppliers
and customers. The outlook may be revised to 'Positive' if the
company demonstrates higher-than-expected revenue growth, with a
sustained operating margin and improvement in its capital
structure. Conversely, the outlook may revised to 'Negative' in
case of pressure on the company's margins or if it undertakes
larger-than-expected debt-funded capital expenditure programme,
leading to significant deterioration in its financial risk profile
Maniranjan, set up as a partnership firm in 1995 by Mr. D
Narasinha and Mr. N Thakur, was reconstituted as a private limited
company in 1996. The company is an authorised dealer of Cummins
India Ltd (Cummins) in Karnataka and Tamil Nadu. Maniranjan sells
Cummins's diesel engine spare parts and lubricants and also takes
up annual maintenance services for its customers.
PUSHPAM TECHNO: CRISIL Rates INR120MM Term Loan at 'BB-'
--------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the proposed
long-term bank facility of Pushpam Techno Consultant Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 120 CRISIL BB-/Stable (Assigned)
The rating reflects the benefits that PTCPL will be deriving from
the purchase of preleased, prime location properties, revenue
visibility associated with these properties because of long-term
lease contracts, and its promoters' experience in the real estate
leasing industry. These rating strengths are partially offset by
PTCPL's expected tightly matched cash flows and debt repayment
obligations, expected weak financial risk profile, its expected
small scale of operations and high customer concentration.
Outlook: Stable
CRISIL believes that PTCPL will improve its business risk profile
backed by expected steady cash flows from lease rentals. The
outlook may be revised to 'Positive' if PTCPL's revenues increase
significantly leading to improvement in cash accruals vis-…-vis
debt obligations. Conversely the outlook may be revised to
'Negative' in case of any unexpected termination of lease contract
adversely affecting cash flows from lease rentals vis-…-vis
maturing debt obligations.
Incorporated in 1995, PTCPL is a closely held company of Gidwani
family based at Pune (Maharashtra). There was no business in the
company till March 2013; however it is presently purchasing two
preleased properties, one each in Pune and Mumbai, the lease
rental from which are expected to start in near term.
PTCPL's promoters have been in Pune's real estate leasing business
for past two decades and they also have business interests in
trading in industrial and office automation products,
manufacturing of ceramic ink, specialised pottery products etc.
SBIW STEELS: CRISIL Upgrades Rating on INR100.7MM Loans to 'B-'
---------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of SBIW
Steels Pvt Ltd to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 32.0 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Bank Guarantee 60.0 CRISIL A4 (Upgraded from
'CRISIL D')
Term Loan 68.7 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade reflects SBIW's timely servicing of its debt
over the five months through February 2013. The upgrade also
factors in CRISIL's belief that SBIW will generate sufficient cash
accruals to service its debt over the medium term.
The ratings reflect SBIW's weak financial risk profile, marked by
a small net worth and weak capital structure, its small scale of
operations in the highly fragmented steel industry, and its
susceptibility to volatility to raw material prices. These rating
weaknesses are partially offset by the extensive industry
experience of SBIW's promoters.
Outlook: Stable
CRISIL believes that SBIW will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if SBIW generates large cash
accruals, or in case of significant equity infusion, leading to
improvement in its capital structure. Conversely, the outlook may
be revised to 'Negative' if the company's working capital cycle
gets stretched, or it undertakes a large, debt-funded, capital
expenditure programme, thereby adversely affecting its liquidity.
Incorporated in 2006, SBIW was promoted by Mr. Jagdish P Goel and
his family and friends. However, the plant became operational in
January 2010. The company is engaged in manufacturing and
processing of thermo-mechanically treated (TMT) bars from mild
steel ingots and billets. In June 2011, it has entered into an
exclusive job-work contract with Steel Authority of India Ltd for
conversion of billets and ingots into TMT bars.
For 2011-12 (refers to financial year, April 1 to March 31), SBIW
reported a profit after tax (PAT) of INR11.8 million on net sales
of INR220.7 million, against a net loss of INR59.9 million on net
sales of INR180.3 million for 2010-11.
SUMA SHILP: CRISIL Reaffirms 'BB-' Rating on INR1.2BB Loans
-----------------------------------------------------------
CRISIL's has reaffirmed its rating of 'CRISIL BB-/Stable' to on
the long-term bank facilities of Suma Shilp Ltd. The rating
continues to reflect the benefits that SSL derives from the prime
location of its property, its revenue visibility from long-term
lease contracts, and its promoter's extensive experience in the
real estate industry. These rating strengths are partially offset
by SSL's small scale of operations, and high customer
concentration in its revenue profile.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 250 CRISIL BB-/Stable (Reaffirmed)
Term Loan 950 CRISIL BB-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SSL will continue to benefit over the medium
term from its promoter's extensive experience in the real estate
leasing industry. The outlook may be revised to 'Positive' if
SSL's capital structure and liquidity improve significantly, most
likely because of equity infusion by the promoters. Conversely,
the outlook may be revised to 'Negative' in case of unexpected
termination of the company's existing leases, leading to lower
lease rentals vis-a-vis debt-servicing obligations, or if SSL
undertakes larger-than-expected, debt-funded capital expenditure
or acquisition programmes, or if there is more-than-expected
stretch in its receivables from the Maharashtra Electricity Board.
Update
For 2012-13 (refers to financial year, April 1 to March 31), SSL
is expected to report an operating income of INR536.3 million,
higher than CRISIL's earlier expectation. The company generates
revenues from three streams: lease rental, real estate
development, and sale of power through wind mills. Lease rental
revenues contribute to about 30 per cent of its total operating
income. SSL has three commercial properties: Down Town Centre
(DTC), Suma House, and Suma Centre in Pune (Maharashtra), which
have been given on lease. DTC, a 10-floor building owned by SSL,
contributed the most (estimated at about INR120 million) to its
revenues in 2012-13. The entire lease rentals here are generated
from the Cummins group. SSL sold its first five floors at DTC
(including the ground floor) in 2006. In 2012-13, the company sold
off its fifth floor to a private firm, generating revenues of
INR260 million, thus increasing the income from real estate
development. This income resulted in a spurt in the company's
total operating income in 2012-13, which was not anticipated by
CRISIL. The remaining 20 per cent of the revenues was generated
from its windmill division. The company set up 12 windmills, each
with capacity of 1.25 megawatt (MW), in Dhule (Maharashtra). It
generated around 21.4 million units of power in 2012-13, with the
average peak load factor ranging between 17 to 19 per cent.
Sale of a floor in DTC resulted in healthy cash flows, which have
been invested in fixed deposits; SSL had a balance of INR440
million in fixed deposits as on January 31, 2013. As on March 31,
2012, it had unencumbered fixed deposits of over Rs180 million,
which generated interest income of about INR24 million during
2011-12. This surplus is likely to be used towards some real
estate development in the near term. SSL has executed seven
projects in the past 10 years, out of which one is commercial and
remaining all are residential. In the five years between 2006 and
2011, SSL's major source of revenue was real estate, with over
INR1800 million generated from this segment during this period.
SSL's liquidity is supported by steady cash flows from lease
rentals, leading to a moderate debt service coverage ratio,
estimated of over 1.6 times for 2012-13, and fixed deposits
maintained in the bank; however, its liquidity will remain
sensitive to any aggressive debt-funded real estate development
over the medium term.
SSL's profit after tax (PAT) and net operating income are
estimated at INR30 million and INR207 million respectively for
2011-12; the firm reported a PAT of INR24.3 million on net sales
of INR146.8 million for 2010-11.
Incorporated in 1984 and promoted by Mr. Pramod Naralkar, SSL is
engaged in developing residential and commercial property. The
company has also leased out space in four commercial properties in
Pune. It also generates revenues from windmills, installations of
which were done in Dhule from 2006-07 for the purpose of tax
management. The installed capacity of all the windmills is 15 MW.
SURYA INDUSTRIES: CRISIL Rates INR90MM Cash Credit at 'BB-'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facility of Surya Industries (Warangal).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL BB-/Stable (Assigned)
The rating reflects the benefits that SI derives from extensive
experience of its promoters in, and healthy growth prospects for
the rice processing industry. These rating strengths are partially
offset by SI's modest scale of operations with limited capacities,
the vulnerability to raw material price volatility, to adverse
regulatory changes, and to erratic rainfall, and below-average
financial risk profile, marked by high gearing, small net worth,
and weak debt protection measures.
Outlook: Stable
CRISIL believes that SI will continue to benefit over the medium
term from its promoters' extensive experience in rice processing
industry. The outlook may be revised to 'Positive' if the firm's
revenues and profitability increase substantially, leading to
larger-than-expected cash accruals or in case of significant
equity infusion, resulting in improvement in SI's capital
structure. Conversely, the outlook may be revised to 'Negative' if
the firm's financial risk profile especially liquidity
deteriorates further because of larger-than-expected working
capital requirements; a large debt funded capex undertaken or
declined cash accruals.
Set up in 1998 as a partnership firm, SI is engaged in milling and
processing of paddy into rice. Its rice milling facilities are
located in Warangal (Andhra Pradesh).
SI reported a net profit of INR111.9 million on net sales of
INR278.3 million for 2011-12 (refers to financial year, April 1 to
March 31), against a net profit of INR57.8 million on net sales of
INR279.3 million for 2010-11.
SWAN ENVIRONMENTAL: CRISIL Ups Rating on INR62.8MM Loans to 'BB'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Swan Environmental Pvt Ltd (SEPL; part of the Swan group) to
'CRISIL BB/Stable' from 'CRISIL BB-/Stable'; the rating on its
short-term bank facilities has been reaffirmed at 'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35.0 CRISIL BB/Stable (Upgraded
from 'CRISIL BB-/Stable')
Term Loan 0.4 CRISIL BB/Stable (Upgraded
from 'CRISIL BB-/Stable')
Standby Line of Credit 10.0 CRISIL BB/Stable (Upgraded
from 'CRISIL BB-/Stable')
Letter of Credit 10.0 CRISIL A4+ (Reaffirmed)
Bank Guarantee 60.0 CRISIL A4+ (Reaffirmed)
Proposed Long-Term 17.4 CRISIL BB/Stable (Upgraded
Bank Loan Facility from 'CRISIL BB-/Stable')
The rating upgrade reflects improvement in the Swan group's
business risk profile, backed by substantial and sustained
increase in its scale of operations, while maintaining its
moderate profitability. The upgrade also reflects CRISIL's belief
that the Swan group will maintain its healthy financial risk
profile, backed by efficient working capital management and
absence of any debt-funded capital expenditure plan.
The Swan group is estimated to have registered a healthy
compounded annual growth rate of around 45 per cent in its
revenues from 2010-11 (refers to financial year, April 1 to
March 31) to 2012-13; the operating profit of the group is
estimated to have remained moderate at around 12 to 15 per cent
over this period. The healthy revenue growth of the group has been
driven by increased demand for pollution control and monitoring
equipments in India. CRISIL believes that the group will continue
to register moderate growth in its revenues over the medium term,
supported by its established presence in pollution control and
monitoring equipment trading industry and the group's continued
focus on addition of new customers. The group continues to manage
its working capital cycle efficiently, as reflected in its
estimated current assets of around 150 days as on March 31, 2013;
the efficient working capital management continues to result in
the group's lower total indebtedness. The lower indebtedness of
the group is estimated to have resulted in its low total outside
liabilities to tangible net worth (TOLTNW) ratio of around 1.2
times as on March 31, 2013.
The ratings reflect the extensive experience of the Swan group's
promoters in the pollution control and monitoring equipment
trading industry, and its above-average financial risk profile,
marked by its small net worth, low TOLTNW ratio and robust debt
protection metrics. These rating strengths are partially offset by
group's modest scale of operations, and exposure to risks
associated with product concentration in its revenue profile.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SEPL and Startech Labs Pvt Ltd,
together referred to as Swan Group. This is because both the
companies are in the same line of business and SEPL owning 60 per
cent stake in SLPL.
Outlook: Stable
CRISIL believes that Swan group will continue to benefit over the
medium term from the extensive industry experience of its
promoters and its established relationships with customers. The
outlook may be revised to 'Positive' in case of sustained
improvement in the group's profitability, while registering a
healthy revenue growth or if there is substantial increase in its
net worth, backed by equity infusion from promoters. Conversely,
the outlook may be revised to 'Negative' in case of a steep
decline in the group's profitability or if there is a significant
deterioration in its capital structure on account of larger-than-
expected working capital requirements.
Established in 1987, SEPL trades in pollution control and
monitoring equipments related to environment, water, agricultural
(agri) food, and pharmaceuticals. In addition to the trading
activity, SEPL has two other sources of revenues - commission on
those products that are sold directly by the principal in the
country and also revenues from maintenance activities. SLPL has
testing laboratory that specialises in measurement of quality of
air and water.
T MADHAVA: Delay in Loan Payment Cues CRISIL to Assign D Ratings
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of T. Madhava Rao High Power Crushers Pvt Ltd. The
ratings reflect the instances of delay by TMPL in servicing its
debt; the delays have been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 50 CRISIL D (Assigned)
Bank Guarantee 15 CRISIL D (Assigned)
Cash Credit 35 CRISIL D (Assigned)
TMPL also has a weak financial risk profile, marked by a small net
worth, high gearing, and weak debt protection metrics. Moreover,
the company also has small scale of operations, resulting in small
cash accruals. However, TMPL benefits from the funding support
that it receives from its promoters and their extensive industry
experience.
Incorporated in 1999, TMPL is in the business of stone crushing
and manufactures blue metal, sand and other related construction
aggregates. The company is promoted by Mr. T Madhav Rao.
For 2011-12 (refers to financial year, April 1 to March 31), TMPL
reported a net loss of INR17.2 million on net sales of INR50.9
million, against a net loss of INR26.4 million on net sales of
INR4.3 million for 2010-11.
T MADHAVA RAO: CRISIL Assigns 'B-' Rating to INR45 Million Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of M/s. T. Madhava Rao & Company.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Assigned)
Overdraft Facility 45 CRISIL B-/Stable (Assigned)
The ratings reflect TMRC's weak financial risk profile, marked by
a leveraged capital structure, moderate debt protection metrics,
and stretched liquidity. These rating weaknesses are partially
offset by the extensive experience of the firm's promoters in the
construction sector.
Outlook: Stable
CRISIL believes that TMRC will continue to benefit over the medium
term from its promoters' extensive experience in the stone
crushing industry. The outlook may be revised to 'Positive' if the
firm registers higher-than-expected growth in its revenues and
profitability while improving its working capital management,
leading to improvement in its financial risk profile, particularly
its liquidity. Conversely, the outlook may be revised to
'Negative' if TMRC's working capital management deteriorates, most
likely because of stretch in its debtors, or if its revenues and
profitability are lower-than-expected, resulting in lower cash
accruals, or if the firm undertakes a large, debt-funded capital
expenditure programme, leading to pressure on its liquidity.
TMRC was originally set up in 1990 as a proprietorship firm, T
Madhav Rao; the firm was subsequently reconstituted as a
partnership firm with the current name in 2012, with Mr. T Madhav
Rao and his wife as partners. Based in Hanamakonda (Andhra
Pradesh), TMRC is engaged in stone crushing.
For 2011-12 (refers to financial year, April 1 to March 31), TMRC
reported a profit after tax (PAT) of INR4.8 million on net sales
of INR188.2 million, against a PAT of INR1.5 million on net sales
of INR52.7 million for 2010-11.
TECHNOY MOTORS: CRISIL Assigns 'BB' Rating to INR100MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term
bank facilities of Technoy Motors.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL BB/Stable (Assigned)
Electronic Dealer 50 CRISIL BB/Stable (Assigned)
Financing Scheme(e-DFS)
The rating reflects TM's moderate business risk profile and
established association with Maruti Suzuki India Ltd (MSIL; rated
'CRISIL AAA/Stable/CRISIL A1+'), along with the benefits accrued
from low inventory and debtors risk. These rating strengths are
partially offset by TM's average financial risk profile and
exposure to intense competition in the automobile dealership
industry.
Outlook: Stable
CRISIL believes that TM will maintain its moderate business risk
profile over the medium term, backed by its established relations
with its principal and low inventory and debtor risk. The outlook
may be revised to 'Positive' in case of improvement of the firm's
financial risk profile backed by higher accruals or equity
infusion. Conversely, the rating outlook may be revised to
'Negative' in case of less-than-anticipated cash generation or
larger-than-expected, debt-funded capital expenditure, adversely
impacting gearing and key debt protection metrics.
TM is an Udaipur (Rajasthan)-based firm. It runs an authorised
service station and a TruValue outlet for the passenger car
segment of MSIL. It also operates an MSIL authorised dealership.
It is promoted by Mr. Dinesh Jain.
TM reported a net profit of INR5.77 million on net sales of
INR1024.0 million for 2011-12 (refers to financial year, April 1
to March 31), as against a net profit of INR5.12 million on net
sales of INR942.4 million for 2010-11.
=========
J A P A N
=========
NEC CORP: To Get JPY130BB Financing, Sell Stake in Phone Unit
-------------------------------------------------------------
Naoko Fujimura at Bloomberg News reports that NEC Corp. will get
JPY130 billion ($1.3 billion) of financial support from lenders
and sell its stake in a mobile phone sales unit to Marubeni Corp.
Bloomberg relates that NEC said the financial support includes
subordinated loans from Sumitomo Mitsui Banking Corp., Development
Bank of Japan Inc. and three other lenders. The company will sell
its stake in NEC Mobiling Ltd. to Marubeni for JPY40.8 billion.
According to Bloomberg, NEC is reorganizing its operations to
focus on corporate services and selling assets as it plans to use
these loans to strengthen its finances and make strategic
investments. Bloomberg says the maker of La Vie computers has cut
about 10,000 jobs and sold assets including a stake in Lenovo
Group Ltd. last year.
Bloomberg notes that the company also said earnings would fall
this year, with net income to drop to JPY20 billion in the 12
months ending March from JPY30.4 billion a year earlier. That
compares with the JPY53.2 billion average of nine analyst
estimates compiled by Bloomberg.
NEC Corporation (TYO:6701) -- http://www.nec.com/-- is a Japan-
based manufacturer. The Information Technology (IT)/Network (NW)
Solution segment provides system integration, support and
outsourcing services for government offices and communication
companies.
====================
N E W Z E A L A N D
====================
STARPLUS HOMES: In Receivership, Owes $25 Million
-------------------------------------------------
Andrea Fox at Waikato Times reports that Waikato and Auckland
house builder Starplus Homes is in receivership, a move guaranteed
to raise the fears of dozens of creditors believed to be owed
about $25 million.
Westpac Bank appointed Corporate Finance's Andrew McKay and John
Cregten as receivers, further confusing the situation around a
property company failure thought to be the biggest in the Waikato
since the start of the global financial crisis in 2008, according
to Waikato Times.
The report notes that up to 140 Hamilton, Cambridge and Auckland
house sites and partially completed houses may be involved.
Waikato Times says that Starplus' Chinese owner, Richard Lee, put
the company into voluntary liquidation. A receiver's demands for
assets trumps that of a liquidator, the report notes.
Waikato Times discloses that Mr. Lee's appointed liquidator, John
Buchanan, an Auckland chartered accountant, was just realising the
enormity of the job and seeking high-powered help, when Westpac
called in receivers.
But Mr. Buchanan said the receivership promised to be complex and
involved "a lot" of creditors, Waikato Times relays.
Waikato Times inquiries have indicated that about $40 million of
assets and $25 million secured debt may be involved in the
company's failure.
Starplus ceased trading this month.
Waikato Times relays that Mitre 10 Hamilton, which is claiming
$1.1 million in unpaid bills, applied to the High Court in
Hamilton for an interim liquidator to be appointed. But Mr.
Buchanan was appointed liquidator by Mr Lee, Starplus' sole
shareholder, the report discloses.
Unsecured creditors include many Waikato tradespeople and sub-
contractors, understood to be owed hundreds of thousands of
dollars. Sources say many mezzanine, or non-bank, financiers are
involved.
A meeting of creditors would be held on Monday, May 6, in Auckland
to seek approval for the joint liquidator appointment.
Other secured debtors according to Companies Office records
include:
-- Marac Finance,
-- ASAP Finance,
-- Ricoh Finance,
-- Goldstar Heat Pumps in the Waikato,
-- along with timber, plastering, carpet and roofing
companies.
WESTERN PACIFIC: Liquidators Still Wait For NZ$34MM Payments
------------------------------------------------------------
Simon Hartley at Otago Daily Times reports that liquidators of
failed boutique Queenstown insurer Western Pacific are still
waiting for NZ$34 million in payments from its reinsurers, more
than two years after the company collapsed.
Western Pacific fell over in April 2011, following claims for just
NZ$6 million of the first quake-related Christchurch claims. Total
claims by creditors and policyholders at one point were estimated
at NZ$65 million, says ODT.
Now, claims from the September 2010 and February 2011 quakes total
NZ$48.2 million but, after estimates of the reinsurance recovery
payouts, the policyholders still face a NZ$16.1 million shortfall,
the report relates.
ODT notes that following a court decision, separate policyholders
outside Christchurch and other creditors will probably miss out on
about NZ$27.6 million in claims. According to the report, Grant
Thornton has filed 10 reports since taking on Western's
liquidation and is still seeking premiums held by brokers.
However, little has changed since its previous report in October.
According to ODT, Grant Thornton retained the reinsurance polices
during the liquidation by paying NZ$430,000 in premiums, with a
further NZ$2 million premium owed for 2011 treaties. Expected
recoveries are estimated at about NZ$34 million.
About Western Pacific
Western Pacific Insurance is a New Zealand-owned and operated
insurance company. It was established in April 2005, and is
principally a broker brand that offers a broad range of
commercial, domestic and specialty products as well as programmes
for affinity groups, underwriting agents and preferred brokers.
It has about 7,000 policy holders in New Zealand.
David Ruscoe and Simon Thorn of Grant Thornton New Zealand were
appointed liquidators of Western Pacific on April 1, 2011, after
Western Pacific's directors became concerned about the solvency
of their company. The company's potential liabilities stood at
more than NZ$10 billion, Otago Daily Times discloses.
ZION WILDLIFE: Consultant Seeks to Wind Up Park Operator
--------------------------------------------------------
Andrew Campbell at sunlive.co.nz reports that a Tauranga business
consultant is seeking to liquidate the operator of Zion Wildlife
Park after he claims he wasn't paid for more than three months
work.
According to sunlive.co.nz, Sam Bailey has made an application in
the High Court in Tauranga to liquidate Earth Crest Limited who
operates the park where the Lion Man previously worked.
The application had its first reading in Tauranga on April 23
before the case was adjourned until May 21, the report says.
sunlive.co.nz relates that Mr. Bailey claims he was employed by
the owner and sole director of the park's operating company --
Suzanne Eisenhut -- after Lion Man Craig Busch's return to the
park in February 2012.
Justin Arnold, who appeared as agent for the defendant's lawyers,
said the application will be defended on the grounds it is an
Employment Court matter, and that the defendant is not insolvent.
He also questioned the venue saying is should be heard in
Whangarei, the report says.
If successful the liquidation application will put the parks 34
big cats at risk, sunlive.co.nz adds.
Zion Wildlife Gardens is a famous park in New Zealand.
David Bridgman and Colin McCloy of PwC were appointed receivers
of the Company that operates Zion Wildlife Gardens, Zion Wildlife
Gardens Limited on July 26, 2011. The Official Assignee was
subsequently appointed liquidator of the Company on Aug. 22,
2011. In February 2012, Zion Wildlife Gardens was sold to Zion
Wildlife Kingdom Ltd.
*********
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
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Information contained herein is obtained from sources believed
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TCR-AP subscription rate is US$775 for 6 months delivered via e-
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***