/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130501.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Wednesday, May 1, 2013, Vol. 16, No. 85 Headlines A U S T R A L I A ACL BEARING: Receivers Seek Buyer for Business KAGARA LTD: Administrators Seek 5-Mo. Extension to Revive Firm MULSANNE RESOURCES: Court OKs Funding for Insolvent Trading Case URBAN CONTRACTORS: ASIO HQ Bldg. Project Impact Small Business WESTPOINT GROUP: Norm Carey Accused of "Asset Stripping" * AUSTRALIA: High Debt Driving Farms Into Receivership C H I N A GOLDEN WHEEL: Fitch Places 'B' Rating on CNY600MM Unsecured Notes XINYUAN REAL: Fitch Assigns 'B+' Rating to US$200MM Unsec. Notes I N D I A AACHI SPICES: CARE Rates INR8.60cr LT Loan at 'CARE BB' AEP INDUSTRIES: CARE Rates INR3.79cr Loan at 'CARE BB' ATLANTIS PRODUCTS: CARE Rates INR6.75cr Loan at 'CARE BB-' BINANI ZINC: CARE Reaffirms 'BB+' Rating on INR11.25cr Loan CHINTPURNI STEEL: CARE Assigns 'B' Rating to INR15.07cr LT Loan G KISHANLAL: CARE Rates INR4.68cr LT Bank Loan at 'CARE BB-' JAJOO EXPORTS: CARE Assigns 'BB-' Rating to INR4.16cr Loan JAJOO RASHMI: CARE Assigns 'BB-' Rating to INR6.75cr Loan K & K JEWELLERS: CARE Rates INR15cr LT Loan at 'CARE B+' KNIGHT DEALTRADE: CARE Rates INR20cr Loan at 'CARE BB-' RAJIV PETROCHEMICALS: CARE Rates INR10.85cr Loan at 'CARE BB-' ROLTA INDIA: Fitch Assigns 'BB-' Issuer Default Ratings N E W Z E A L A N D HANOVER FINANCE: SFO Concludes Finance Company Investigations STARPLUS HOMES: Unsecured Creditors Unlikely to Get Paid S O U T H K O R E A * South Korean Firms Sees Negative Business Outlook For May X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= ACL BEARING: Receivers Seek Buyer for Business ---------------------------------------------- ABC News reports that ACL Bearing that is being put on the market has already attracted interest from potential buyers. Receivers have decided to sell ACL Bearing and have informed employees, according to ABC News. The report recalls that the company went into receivership in 2009 and 150 jobs at the company have been cut. Receiver manager Matt Byrnes said it is the right time to try and sell, the report notes. "That's a decision that we've contemplated a number of times since we've been in control of ACL. . . . We have had some interest recently from a couple of parties, while that's not the sole reason for us making our decision its certainly a factor," the report quoted Mr. Byrnes as saying. Mr. Byrnes said it is too early to tell how the sale will affect workers, the report notes. "Until we progress those discussions with the interested parties, and understand what their interest level is, we won't know exactly how many employees that'll impact and how," Mr. Byrnes said, the report adds. ACL Bearing is a Launceston car parts maker. KAGARA LTD: Administrators Seek 5-Mo. Extension to Revive Firm -------------------------------------------------------------- Neale Prior at The West Australian reports that Kagara Ltd administrators have asked for another five months to resuscitate the stricken base metals group in the face of creditor claims of more than AUD90 million and a potential insolvent trading inquiry. While pushing for more time for asset sales and for long-time director Joe Treacy to put together a rescue deal, the administrators have told creditors they could also carry out investigations into other potential recovery actions, the report says. In a letter sent to creditors promoting a potential restructure, the West Australian relates, Mr. Treacy said they would receive cash plus shares in return for their debt and be able to participate in the "predicted upswing" in metal prices. At the centre of the revived group would be its undeveloped Admiral Bay zinc and lead project, about 200km south of Broome, and a stake in its sharemarket-listed precious metals spin-off Mungana Goldmines, the West Australian notes. According to the West Australian, the mooted restructure could see creditors of the West Perth-based Kagara parent entity get a return of 50 cents for every dollar of debt, yet creditors of the group's troubled Queensland base metals mining and exploration operations could receive as little as 2.4 cents in the dollar. The West Australian, citing an administrators' report, discloses that between AUD2.4 million and AUD58.2 million could potentially be recovered from insolvent trading actions, depending on whether the company was ultimately found to be insolvent in early December or when ANZ pulled support in April. But the administrators warned that directors could have a defence to any insolvent trading actions with arguments that they expected cash from asset sales, were trying to raise new capital and had ANZ's support, the West Australian relates. Creditors will meet in Perth, Brisbane, Cairns, Townsville and Sydney on May 6. According to the West Australian, administrators recommend creditors vote in favor of what they describe as a holding deed of company arrangement, giving Mr. Treacy until September 30 to come up with a plan that would underpin a more permanent deed. They said this left the way open for creditors to later put the company into liquidation, while allowing assets sales to be carried out in the meantime without perceptions of a fire sale, the report notes. About Kagara Ltd Kagara Ltd (ASX: KZL) -- http://www.kagara.com.au/-- engages in exploration, development, and production of mineral properties in Western Australia and North Queensland. It primarily focuses on the exploration of zinc, copper, gold, lead, and nickel. Michael Joseph Patrick Ryan, Mark David Peter Englebert, Quentin James Olde and Stefan Dopking of Taylor Woodings were appointed Joint and Several Administrators of Kagara Ltd and certain subsidiaries on April 29, 2012. MULSANNE RESOURCES: Court OKs Funding for Insolvent Trading Case ---------------------------------------------------------------- The Sydney Morning Herald reports that Nathan Tinkler can now be sued by liquidators after the NSW Supreme Court approved a funding agreement between Blackwood and the liquidators of one of his failed companies, Mulsanne Resources. According to the report, Justice Black gave the liquidators' lawyers the opportunity to view the judgment before it was published to ensure no commercially sensitive information was made public. As reported in the Troubled Company Reporter-Asia Pacific on April 22, 2013, The Australian said Mr. Tinkler was facing 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 when he made the AUD28.4 million offer last year. Australian Associated Press reported in November last year Mulsanne Resources was wound up and liquidators were appointed after it failed to pay a AUD28.4 million debt to coal explorer Blackwood Corporation. According to AAP, Blackwood sued Mulsanne Resources after Mr. Tinkler's company agreed to buy a 33.85% stake in it for AUD28.4 million, but then failed to follow through with the deal. AAP related that NSW Supreme Court senior deputy registrar Nicholas Flaskas on Tuesday ordered Mulsanne Resources be wound up and Robyn Duggan and John Melluish from Ferrier Hodgson be appointed as liquidators in order for Blackwood to recover the debt. URBAN CONTRACTORS: ASIO HQ Bldg. Project Impact Small Business -------------------------------------------------------------- The Brisbane Times reports that the federal small business advocate is investigating the impact on Canberra's building industry of the capital's new ASIO headquarters. According to the report, two construction firms working on the project have called in administrators, citing money owed on the giant federal government job as a key factor in their financial woes. Brisbane Times relates that the companies, Urban Contractors and Tread Lightly Earthmoving, owe millions between them to smaller contractors and businesses in Canberra and the region. A spokeswoman for federal Small Business Commissioner Mark Brennan confirmed the problems surrounding the ASIO project had been referred to his office but would provide no details about what the commissioner could do for the stricken businesses, the report says. "The matter has been brought to the Commissioner's attention," the report quotes the spokeswoman as saying. "As the Commissioner has not completed the examination, it is not appropriate to be commenting at this time on the issues involved." The ASIO site in Russell has been plagued by delays and budget blowouts, the report notes. Brisbane Times notes that construction costs have ballooned from AUD460 million to AUD633 million, and the spy agency is still months away from moving in. Urban Contractors called in administrators in October last year, citing difficulties with its contract with lead contractor Bovis Lend Lease for work on the ASIO site as one of the primary causes its problems, the report recalls. A report from administrator BCR Advisory found that Urban did not have the finance facilities and structure to cope with the working capital requirements of the Lend Lease contract, says Brisbane Times. Earlier this month, the report says, Queanbeyan company Tread Lightly Earthmoving, a key creditor of Urban Contractors, were also forced to call in administrators. Both companies continued to trade as they sought a resolution with Lend Lease, but now, following the concerns of Tasmanian Greens Senator Peter Whish-Wilson, the Australian Small Business Commissioner has been called in to investigate, the Brisbane Times reports. WESTPOINT GROUP: Norm Carey Accused of "Asset Stripping" -------------------------------------------------------- Neale Prior at The West Australian reports that property and investment entrepreneur Norm Carey was accused Monday of engaging in asset stripping on the day that receivers were appointed to flagship company Westpoint Corporation Pty Ltd. A District Court jury was told that Mr. Carey and Westpoint Corp secretary Graeme Rundle dishonestly backdated the transfer of an option to buy the Warnbo Fair Shopping Centre knowing that the company was facing dire financial circumstances, the West Australian says. According to the report, prosecutor Alan Macsporran said the option transfer to Mr. Carey's family trust company Bowesco Pty Ltd came a month after Stan Perron's Perron Group offered AUD1 million for the right to buy the shopping centre and adjacent development land. The West Australian relates that Mr. Macsporran made the allegations in opening the trial of Mr. Carey and and Mr. Rundle on charges that they dishonestly used their position at Westpoint Corp to give an advantage to Bowesco. They have pleaded not guilty, the report notes. The report says the jury was told that the Australian Securities and Investments Commission became concerned about Westpoint's solvency in August 2005. Auditor KPMG told ASIC in December it had concerns. According to the West Australian, Mr. Macsporran said Mr. Carey had considered putting forward a deed of company arrangement to allow developments to go ahead and for mezzanine debt to be repaid, allowing the company to trade its way out of trouble. But financier Perpetual appointed accountants from KordaMentha as receivers of Westpoint Corp on Jan. 24, 2006 -- the day the Warnbro Fair option was transferred to Bowesco. The transfer was dated Oct. 7, 2005. "What's alleged here is asset stripping," the report quotes Mr. Macsporran as saying. The West Australian adds that Mr. Carey's barrister Sam Vandongen said the option contract repeatedly contemplated it being exercised by Westpoint Corp or a nominee company. Mr. Vandongen said Westpoint Corp's role was never to carry out developments, which were done by other companies within the group, the report relays. About Westpoint Group Headquartered in Perth, Western Australia, the Westpoint Group -- http://westpoint.com.au/-- was engaged in property development and owned or managed retail and commercial properties with a total value of over AU$300 million. The Group's troubles began in 2005 when the Australian Securities and Investments Commission commenced investigations on 160 companies within the Westpoint Group. The ASIC's investigation led to ASIC initiating action in late 2005 in the Federal Court of Australia against a number of mezzanine companies in the Westpoint Group, including winding up proceedings. The ASIC contended that Westpoint projects are suffering from significant shortfall of assets over liabilities so that hundreds of investors are at serious risk of not receiving repayment of their investments. The ASIC also sought wind-up orders after the Westpoint companies failed to comply with its requirement to lodge accounts for certain financial years. These wind-up actions are still continuing. In February 2006, the Federal Court in Perth issued a wind-up order against Westpoint Corporation Pty Ltd. The ASIC had applied to wind up the company on grounds of insolvency. The ASIC believed that Westpoint Corporation is responsible for arranging, managing and coordinating Westpoint Group's property projects as well as holding money for other group companies. The ASIC was concerned that Westpoint Corporation was unable to pay its debts, including its obligations under the guarantees given to the mezzanine companies to make good expected shortfalls in the repayment of amounts owed to investors. The Westpoint Group's collapse is considered by many as the largest of its type in recent years, with small investors being the biggest group affected. Investors are currently joining forces to commence a class action against Westpoint and its advisors. * AUSTRALIA: High Debt Driving Farms Into Receivership ------------------------------------------------------ Elysse Morgan at ABC News reports that there has been a large jump in the number of farms going into administration because of high debts, and administrators say the problem is getting worse. Scores of farms across the country are in receivership, or in some form of financial distress, because farmers borrowed against land that is now falling in value, according to ABC News. The report relates that the problem is particularly bad for dairy farmers, which have also been hit with low milk prices. In Queensland alone, farm debt jumped 19 per cent over the two years to 2011 to around $17 billion, the report discloses. The report notes that Chris Honey from corporate advisory and insolvency firm McGrathNicol says more farmers are losing their properties. "In sectors such as the northern beef sector, the dairy sector in New South Wales and northern Victoria, we are just beginning to see signs of distress in the cropping areas of central New South Wales," the report quoted Mr. Honey as saying. The Federal Government is now offering low interest loans to farmers, but farming bodies are dubious about how much they will help, the report adds. ========= C H I N A ========= GOLDEN WHEEL: Fitch Places 'B' Rating on CNY600MM Unsecured Notes ----------------------------------------------------------------- Fitch Ratings has assigned China-based homebuilder Golden Wheel Tiandi Holdings Company Limited (GWTH)'s CNY600 million 11.25% senior unsecured notes due 2016 a final 'B' rating. This final rating follows the receipt of documents conforming to information already received, and is in line with the expected rating assigned on April 17, 2013. Key Rating Drivers Small scale: GWTH's business scale is smaller than B-rated peers, as reflected by recognised sales of only CNY863m in 2012. Cash flow and sales performance can be volatile, due to concentration on only five to six major projects at any one time. In addition, the company's focus on small commercial projects linked to metro stations may also curb the speed of expansion of its business scale. Limited diversification: GWTH has not diversified meaningfully outside of its home base in Nanjing. In 2012, projects in Nanjing accounted for 65% of its land bank. This, together with its small scale, exposes GWTH to potential competition from larger regional or national players which may affect margins, and, eventually, liquidity. Unique model mitigates: GWTH has a proven track record in developing small-sized commercial projects linked to metro stations mainly in Nanjing. The unique locations and commercial projects have the potential to boost the value of its investment properties. They also allow the company to make superior margins. At end-2012, it recorded a 52% gross profit margin and 45% EBITDA margin. As China builds more subways in second tier cities, GWTH's business model should remain sustainable. These factors mitigate risks posed by its small scale. Healthy financial position: GWTH's prudent financial management is demonstrated by the low 7.5% net debt/adjusted inventory ratio at end-2012. Fitch expects this ratio to rise to 15% at end-2013, following an increase in debt to fund new projects. Investment properties strengthen profile: GWTH's recurring EBITDA from its investment property portfolio provided a1.7x coverage of its gross interest expense in 2012. Fitch expects this ratio to range around 0.5x over the next three years, as an increase in debt outpaces rental income growth. Nonetheless, its investment property portfolio, valued at CNY3.1bn at 2012, provides financial flexibility. Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include: - A significant year-on-year decrease in contracted sales plus sales after completion - EBITDA margin falling below 25% on a sustained basis - Net debt/ adjusted inventory rising above 30% on a sustained Basis - Deviation from the current focus on metro-linked projects Positive: No positive rating action is expected over the next 12- 18 months given the company's current small scale. However, positive rating action may result from: - Increase in the value of investment properties to over CNY5bn and annual contracted sales plus sales after completion to CNY3bn - Recurrent EBITDA interest coverage rising over 1x on a sustained basis XINYUAN REAL: Fitch Assigns 'B+' Rating to US$200MM Unsec. Notes ---------------------------------------------------------------- Fitch Ratings has assigned US-listed China-based Xinyuan Real Estate Co., Ltd.'s senior unsecured USD200 million 13.25% notes a final 'B+' rating. The assignment of the final rating follows the receipt of documents conforming to information already received, and is in line with the expected rating assigned on April 18, 2013. 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 gives 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 second and third 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 price (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 mitigate this by 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 the company to gain new markets in Jinan, Suzhou, Xuzhou, Kunshan and Chengdu; and Xinyuan's business in the first three of these cities continues to expand with growth opportunities. 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 rising above 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 ========= AACHI SPICES: CARE Rates INR8.60cr LT Loan at 'CARE BB' ------------------------------------------------------- CARE assigns 'CARE BB' rating to the bank facilities of Aachi Spices And Foods Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.60 CARE BB Assigned Rating Rationale The rating assigned to the bank facilities of Aachi Spices and Foods Private Limited is constrained by the limited track record of operations of the company, its regional nature of operations confined to South India, limited value addition inherent to this business and consequent intense competition from a number of organized and unorganized players, susceptibility of profitability to the volatility associated with raw material prices and ASFPL's strained financial risk profile characterized by thin profit margin, low cash accruals, high leverage and weak coverage indicators. The rating is further constrained by the significantly large debt-funded capex plans of the company. The rating, however, favorably factors in the vast experience of promoters in Fast Moving Consumer Goods marketing, the synergies derived from being part of the Aachi group of companies, which has a relatively strong brand recall through the "Aachi" brand, The ability of ASFPL to leverage on the widespread and established distribution network of the Aachi group spread across Tamil Nadu region and the continued support from the promoters by way of unsecured loans. Going forward, the ability of ASFPL to expand its footprint across India, through a competitive pricing strategy and the ability to introduce new products to attract new clients and catering to their preferences, while sustaining the quality of the products and retaining existing clients would be the key rating sensitivities. The ability of ASFPL to improve its profit margin in the highly fragmented industry will also be a key rating sensitivity. Aachi Spices & Foods Private Limited was promoted in 2008 as a proprietorship firm by Mr. A. D. Padmasingh Isaac and was later incorporated as a private limited company in March 2010. It belongs to the Aachi group, which was established in 1995. The Aachi group was focused on preparation of various spices and masala powders until 2008. ASFPL was established with the Aachi group's objective of entering into the ready to cook, ready to eat food product segment. The group has also been able to establish its brand image of "Aachi". The brand has been built through a strong and sustained marketing campaign on television and newspaper ASFPL manufactures both 'Ready-to-cook' and 'Ready-to- eat' items such as Gulab jamun mix, Badam drink mix, Ragi flour, Payasam mix, veg and non-veg pickles, spices, rava idly mix, masala rice for biryani etc. The company's main facilities are located at Padi and Red hills. ASFPL's products are marketed to the consumers through 3,500 agents and 10 lakh retailers through its group company Aachi Masala Foods Private Limited [AMFPL]; AMFPL is a marketing arm of ASFPL. AMFPL also procures food products from various MSME manufacturers. AEP INDUSTRIES: CARE Rates INR3.79cr Loan at 'CARE BB' ------------------------------------------------------ CARE assigns 'CARE BB' and 'CAREA4' to the bank facilities of AEP Industries Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 3.79 CARE BB Assigned Long-term/Short-term Bank 2.70 CARE BB/ CARE A4 Facilities Assigned Rating Rationale The ratings assigned to the bank facilities of AEP Industries Private Limited are primarily constrained on account of its modest scale of operations in the highly fragmented industry coupled with declining margins, moderately leveraged capital structure and elongated collection period. The ratings further continue to be constrained due to volatility associated with the raw material prices and project implementation risk associated with the ongoing capex. These constraints outweigh the benefits derived from the experienced promoters, reputed customer profile and support from the group company on operational front. The ability of AEPIPL to increase its scale of operations, completion of the project within time and cost parameters along with improvement in profitability and capital structure are the key rating sensitivities. AEPIPL, earlier known as Powergrip (India) Fasteners Private Limited was incorporated in 1996. AEPIPL specializes in manufacturing and supply of all kinds of high-tensile and stainless-steel fasteners in size above 3/8" diameter (M10). In 2009, AEPIPL diversified into investment casting (lost wax process) and started a plant at Vithal Udyognagar, Gujarat, with an installed capacity of 480 MTPA. AEPIPL is a sister concern of AEP Company (rated 'CARE BB; CARE A4'), which was established in 1975. Besides, Unique Forging (India) Private Limited (UFPL) and Unique Industries (UI) are also its sister concerns which are engaged in the manufacturing of forging components. As against a net profit of INR0.09 crore on a total operating income of INR6.15 crore in FY11 (refers to the period April 1 to March 31), AEPIPL reported a net profit of INR0.22 crore on a total operating income of INR9.94 crore during FY12. ATLANTIS PRODUCTS: CARE Rates INR6.75cr Loan at 'CARE BB-' ---------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4+' ratings to the bank facilities of Atlantis Products Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.75 CARE BB- Assigned Short-term Bank Facilities 0.50 CARE A4+ Assigned Long-term/Short-term Bank 13.00 CARE BB-/CARE A4+ Facilities Assigned Rating Rationale The ratings assigned to the bank facilities of Atlantis Products Private Limited are constrained on account of its highly leveraged capital structure, relatively weak debt coverage indicators and increasing working capital requirements. The ratings are further constrained due to its presence in a highly competitive business segment and vulnerability of its profitability to the volatility in the prices of raw materials. The ratings, however, favorably take into consideration the vast experience of the promoters in trading business and increase in the scale of operations over the last two years catering to a reputed clientele. Increase in the scale of operations with improvement in profitability, rationalization of capital structure and efficient management of working capital requirements would be the key rating sensitivities. Incorporated in April 2009 by Rajiv Vastupal Mehta, APPL is part of the Rajiv group based at Ahmedabad (Gujarat). The company is engaged in the manufacturing of Poly-Propylene/ High-Density Polyethylene (HDPE) woven sacks, woven fabrics and tarpaulins at its manufacturing facilities at Dholka (Ahmedabad) with an installed capacity of 9,000 Metric Tonnes Per Annum (MTPA) and trading of PP/HDPE granules. Sales from manufacturing activity, trading activity and other income constituted 69%, 29% and 2%, respectively, of total operating income during FY12 (refers to the period April 01 to March 31). During FY12, APPL reported a total operating income of INR73.26 crore (P.Y.: INR51.08 crore) with losses of INR2.06 crore (P.Y.: Profit of INR0.29 crore). During the nine months ending December 2012, the company has reported total operating income of INR61.76 crore with PAT of INR0.51 crore. BINANI ZINC: CARE Reaffirms 'BB+' Rating on INR11.25cr Loan ----------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Binani Zinc Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 11.25 CARE BB+ Reaffirmed Long-term Bank Facilities 15.00 CARE BBB- (SO) Reaffirmed Short-term Bank Facilities 247.00 CARE A 3 (SO) Reaffirmed Rating Rationale The bank facilities of Binani Zinc Limited aggregating INR262 crore are backed by an unconditional and irrevocable corporate guarantee extended by Binani Industries Limited (BIL; rated 'CARE BBB- /CARE A3') for the repayment obligations of these bank facilities. The standalone rating of BZL continues to be constrained by fluctuating realisations and profitability margins due to volatile zinc prices, absence of captive sources of raw materials and power, low cash accruals and stressed debt coverage indicators. The ratings, however, continue to factor in the promoter's long- standing experience in the domestic zinc business and revival in demand from the end-user industries. The ability of BZL to achieve financial closure and necessary clearances for the domestic mining projects is the key rating sensitivity. Rating Rationale- BIL The ratings continue to factor in the long track record and diversified business operations, experience of the promoters in the cement, zinc and glass fibre businesses and Binani's strong brand image. The ratings also factor in the proposed divestment of 40% stake in Binani Cement Limited (BCL), in which BIL holds 98.43% stake, the proceeds from which will be partly utilized to retire a part of BIL's debt and thereby ease the strain on its capital structure. The ratings are, however, constrained by continued underperformance of its subsidiaries resulting in subdued performance on consolidated basis, high dependence on its cement subsidiary for growth, high leverage on account of the debt-funded acquisitions and the volatile nature of industries in which the subsidiaries of BIL operate. The ability of the BIL's subsidiaries to turn around and improve their performance alongwith BIL's ability to timely monetise its investments constitute the key rating sensitivities. BZL, a subsidiary of BIL, has been in operations since 1967. The company is engaged in the manufacturing of zinc with an installed capacity of 38,000 Tonne Per Annum (TPA) at its plant located at Binanipuram in Kerala. Mr Braj Binani is the promoter and chairman of BZL. The company also produces Sulphuric Acid and Cadmium which are generated as by-products. BZL registered a net loss of INR14.56 crore on a total operating income of INR406.95 crore in FY12 (refers to the period April 1 to March 31) as against a net loss of INR8.57 crore on a total operating income of INR415.34 crore in FY11. CHINTPURNI STEEL: CARE Assigns 'B' Rating to INR15.07cr LT Loan --------------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the Bank Facilities of Chintpurni Steel Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 15.07 CARE B Assigned Short-term Bank Facilities 1.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Chintpurni Steel Private Limited are primarily constrained by its modest scale of operations, low capacity utilization, declining PBILDT margin, leveraged capital structure and working capital intensive nature of operations. The ratings are further constrained by its presence in the highly fragmented industry, susceptibility to cyclicality of steel industry and raw material price volatility. The ratings, however, take comfort from the experience of the promoters of CSL. Going forward, the ability of CSL to increase its scale of operations while improving its capacity utilization and capital structure, better working capital management and the ability to manage the raw material price fluctuation risk would be the key rating sensitivities. Chintpurni Steel Private Limited was incorporated in 2004 by Mr Jamnadass Manek and others (family friends and relatives). The company is engaged in the manufacturing of sponge iron, trading of iron-ore and its by-product (i.e. fines). In FY12 (refers to the period April 1 to March 31), the company also started manufacturing of Mild Steel (MS) Ingots. During FY11 and FY12, the company generated revenue from other income (approximately 10% of the total income) in the form of contract receipt pertains to supervision of open cast mines of coal in Jharkhand and nearby region. The manufacturing facility of the company is located at Ramgarh, Jharkhand, with an installed capacity of 60,000 Tonnes per annum (TPA) for sponge iron and 18,900 TPA for MS ingots. For FY12, CSL achieved a total operating income of INR44.61 crore and PAT of INR0.88 crore. For 11M FY13 (refers to the period April 1 to February 28), CSL achieved a total operating income of INR63 crore. G KISHANLAL: CARE Rates INR4.68cr LT Bank Loan at 'CARE BB-' ------------------------------------------------------------ CARE assigns 'CARE BB-' rating to the Bank Facilities of G Kishanlal Jewels. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 4.68 CARE BB- Assigned Rating Rationale The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of G. Kishanlal Jewels as on March 31, 2012. The rating may undergo a change in case of withdrawal of capital by the partners in addition to the financial performance and other relevant factors. The rating of G Kishanlal Jewels is constrained by the partnership nature of the firm, highly fragmented and competitive nature of the industry, small size and limited track record of operations, volatility in raw material prices and working capital intensive nature of operations. The ratings favorably factor in the experience of the management team in trading activities, franchise agreement with Gitanjali Jewellery Retail Pvt Ltd and prime location of the showroom. The ability of the company to improve the scale of operations, profitability margins and manage working capital efficiently will be key sensitivities. G Kishanlal Jewels is a partnership firm started in September 2010 by Vishnu Naredi and his relatives. GKJ has its showroom at Jubliee Hills, Hyderabad with a store space of 2,500 square feet. GKJ entered into a franchise agreement with Gitanjali Jewellery Retail Pvt Ltd in January 2011 and commenced operations from July 2011. Mr Vishnu Naredi and Mr. Varun Naredi are the Managing Partners of the firm who looks into day-to-day operations of the firm. GKJ has registered a PAT of INR0.15 crore out of total income of INR8.44 crore in FY12 (refers to the period April 01 to March 31). GKJ registered a PAT of INR0.25 cr on total revenue of INR12.54 cr for 11MFY13. JAJOO EXPORTS: CARE Assigns 'BB-' Rating to INR4.16cr Loan ---------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Jajoo Exports. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 4.16 CARE BB- Assigned Short-term Bank Facilities 9.50 CARE A4 Assigned The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the firm at present. The ratings may undergo change in case of the withdrawal of capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Jajoo Exports are primarily constrained by its moderate financial risk profile marked by the moderately low profitability, leveraged capital structure, moderately weak debt coverage indicators and liquidity position. The ratings are further constrained on the account of vulnerability of profit margin to volatility in the foreign exchange rates and JES's presence in highly fragmented and competitive refractory industry. The ratings, however, derive strength from the long standing track record of the operations and wide experience of the promoter in the industry. The ability of JES to increase the scale of operations in light of the competitive nature of the industry and increase in the presence in market along with improvement in the profitability and improvement in the capital structure are the key rating sensitivities. Jaipur (Rajasthan)-based JES was established as a proprietorship concern in the year 1997 by Sudhir Jaju. The firm is engaged in the manufacturing of ferro alloys and ramming mass (used as lining in furnace). JES is also involved in the trading of the ferro alloys which comprises approximately 20% of the total income during last three years ended FY12 (refers to the period April 1 to March 31). The firm caters only to the overseas markets of Africa, Europe and Middle East Countries. The manufacturing facilities are located in Jaipur with an installed capacity of 6,000 metric tonnes per annum (MTPA) for ferro alloys and 3,600 MTPA for manufacturing ramming mass as on March 31, 2012. During FY12, as per the audited results, JES reported a total operating income of INR35.70 crore (FY11: INR31.08 crore) and a Profit After Tax of INR1.01crore (FY11: INR0.83 crore). During FY13 (provisional), JES had achieved the total operating income of INR43.10 crore and PAT of INR1.10 crore. JAJOO RASHMI: CARE Assigns 'BB-' Rating to INR6.75cr Loan --------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Jajoo Rashmi Refractories Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term/Short-term Bank 6.75 CARE BB- Assigned Facilities Short-term Bank Facilities 1.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Jajoo Rashmi Refractories Private Limited are primarily constrained by its moderate financial risk profile marked by the low profitability, leveraged capital structure, weak debt coverage indicators and liquidity position. The ratings are further constrained on the account of JRPL's presence in highly fragmented and competitive refractories industry. The ratings, however, derive strength from the long-standing track record of the operations and wide experience of the promoters in the industry. The ability of JRPL to increase the scale of operations in light of competitive nature of industry and increase in the presence in market along with improvement in the profitability and improvement in the capital structure are the key rating sensitivities. Jaipur (Rajasthan)-based JRPL, incorporated in 1995, promoted by Sudhir Jaju and Sunil Jaju. The company is engaged in the manufacturing of ferro alloys and ramming mass. JRPL is also involved in the trading of the ferro alloys which comprises more than 20% of the total income during last three years ended FY12 (refers to the period April 1 to March 31). The manufacturing of the ferro alloys and ramming mass (used as lining in furnace) accounted for nearly 50% and 30%, respectively, of its total operating income during FY12. The manufacturing facilities are located in Jaipur with an installed capacity of 4,800 metric tonnes per annum (MTPA) for ferro alloys and 24,000 MTPA for manufacturing ramming mass as on March 31, 2012. JRPL also possess quartz mines in Rajasthan, which is the main raw material for manufacturing ramming mass. During FY12, as per the audited results, JRPL reported a total operating income of INR22.75 crore (FY11: INR24.34 crore) and a Profit After Tax of INR0.20 (FY11: INR0.18 crore). During FY13 (provisional), JRPL had achieved the total operating income of INR38.00 crore and PAT of INR0.42 crore. K & K JEWELLERS: CARE Rates INR15cr LT Loan at 'CARE B+' -------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of K & K Jewellers. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 15 CARE B+ Assigned The rating assigned by CARE is based on the capital deployed by the proprietor and the financial strength of the entity at present. The rating may undergo a change in case of withdrawal of the capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of K & K Jewellers (K&K) is constrained by modest scale of operations and weak financial risk profile marked by declining profitability margins, weak debt coverage indicators and high leverage. The rating is further constrained by operations in a highly fragmented and competitive G&J industry, customer concentration risk, foreign exchange fluctuation risk and constitution of the entity as proprietorship. These factors far offset the benefits derived from the experienced and qualified proprietor, and his financial support in the past. The ability of K&K to increase the scale of operations along with improvement in the overall financial risk profile and efficient management of working capital cycle are the key rating sensitivities. K & K Jewellers, established in 2007 as proprietorship concern by Balasaheb Kadam, is engaged in manufacturing of gold jewellery and trading of diamonds. K & K mainly deals in 22 carat gold jewellery which contributed around 50% of the total income in FY12 (refers to the period April 01 to March 31). The revenues primarily generated domestically with exports (mainly to the U.S.A., U.A.E and Hong Kong) contributing around 34% of the total income in FY12. However, the entire key raw material viz gold and diamond are procured domestically. During FY12, K&K reported total operating income of INR122.32 crore (vis-a-vis INR51.58 crore in FY11) and PAT of INR0.77 crore (vis-a-vis INR0.10 crore in FY11). Furthermore, during provisional FY13, the entity has posted revenue of INR128 crore and PAT of INR0.90 crore. KNIGHT DEALTRADE: CARE Rates INR20cr Loan at 'CARE BB-' ------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Knight Dealtrade Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long term Bank Facilities 20.00 CARE BB- Assigned Short term Bank Facilities 9.50 CARE A4 Assigned Rating Rationale The ratings are constrained by KDPL's short track record of operation, volatile input prices, significant non business exposure, and high gearing levels. The rating is also constrained by low profitability margins business and entry of large number of unorganised players intensifying competition in the industry. These constraints are partly offset by the experience of promoters and established group. The ability of the company to enhance the scale of operation and profit levels in addition to manage working capital effectively would be the key rating sensitivities. Knight DealTrade Pvt Ltd, part of the Kolkata-based Mani Group, commenced operations from June 30, 2011, is engaged in the trading of construction materials mainly cement and steel. It stocks the material at its subsidiary's (Mani Pushpak Nirman Pvt Ltd) godown of 2,61,360 square feet. KDPL was originally incorporated on March 20, 2007 under the name of Kuber Residency Pvt Ltd and was involved in the trading of edible oil and tea. Mani group, promoted by Shri Sanjay Jhunjhunwala in 1980, is a well-known Kolkata based real estate group with around 60 completed projects comprising both residential and commercial projects (retail, entertainment, IT, hospitality and education) mostly in Kolkata, under various companies. During FY12 (refers to the period July 1, 2011 to March 31, 2012), the company reported a PBILDT of INR0.0 crore and a loss of INR0.1 crore on the total operating income of INR13.2 crore. In M9FY13 (provisional), KDPL has achieved net sales of INR52.3 crore. RAJIV PETROCHEMICALS: CARE Rates INR10.85cr Loan at 'CARE BB-' -------------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4+' ratings to the bank facilities of Rajiv Petrochemicals Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 10.85 CARE BB- Assigned Short-term Bank Facilities 43.75 CARE A4+ Assigned Rating Rationale The ratings assigned to the bank facilities of Rajiv Petrochemicals Private Limited are constrained on account of its highly leveraged capital structure and increasing working capital requirements. The ratings are further constrained due to its presence in a highly competitive trading business having low profitability which is susceptible to volatile raw materials prices and foreign exchange fluctuations. The ratings, however, favorably takes into consideration the vast experience of the promoters in trading business and its established track record of operations of two decades. Increase in the scale of operations with improvement in profitability, rationalization of capital structure and efficient management of working capital requirements would be the key rating sensitivities. Incorporated in October 1993 by Rajiv Vastupal Mehta, RPPL is part of the Rajiv group based at Ahmedabad (Gujarat). The company is engaged in the trading of Polyvinyl Chloride (PVC) resins, Low-Density Polyethylene (LDPE) and High-Density Polyethylene (HDPE) polymers, Polypropylene (PP) granules and polyester films. In addition to trading activity, it also acts as the consignment agent for plastic granules for some companies. During FY12 (refers to the period April 01 to March 31), RPPL reported a total operating income of INR308.47 crore (P.Y.: INR384.08 crore) with profit of INR0.18 crore (P.Y.: Profit of INR1.20 crore). During the 11 months ended February 2013, RPPL has reported TOI of INR317.39 crore. ROLTA INDIA: Fitch Assigns 'BB-' Issuer Default Ratings ------------------------------------------------------- Fitch Ratings has assigned technology company Rolta India Limited Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) of 'BB-'. The Outlook is Stable. Fitch also has assigned a foreign-currency senior unsecured rating of 'B+' and Rolta, LLC's proposed USD guaranteed senior notes an expected foreign currency senior unsecured 'B+(EXP)' and placed them on Rating Watch Positive (RWP). The final rating of the proposed notes is contingent upon the receipt of documents conforming to information already received. Rolta, LLC is a wholly owned subsidiary of Rolta. Rolta plans to use the proceeds from the notes for the repayment of a portion of its secured debt, as well as for working capital and general corporate purposes. Key Rating Drivers Proposed notes notched down: The senior unsecured and debt ratings are notched down a level below the IDR. This is because while the notes will be fully guaranteed by Rolta and its main operating subsidiaries on a senior basis, they will be subordinated to the company's secured debt. The latter accounted for close to 90% of the total debt at end of the financial year to June 2012 (end- FY12). The RWP reflects Rolta's plan to use 75% of the bond proceeds to refinance a portion of its secured debt. The senior unsecured and debt ratings will then be upgraded to 'BB-' if sufficient proceeds are raised and used to pay down enough secured debt to reduce the subordination of senior unsecured creditors. Small scale, low diversification: Despite its high profitability Rolta's ratings are constrained by its small scale of operations. Given its size, Fitch believes that the company's growth strategy will continue to rely partly on acquisitions of core technologies to strengthen its intellectual properties which will require high capex and limit its ability to deleverage. Increase in leverage: Fitch forecasts that Rolta's funds flow from operations (FFO)-adjusted leverage will increase well above 3x by end-FY13 from 2.8x at end-FY12 due to capex. Rolta's free cash flow (FCF) is likely to remain negative over the medium term as capex will only slowly decline from a peak of INR14bn in FY12. Niche-market operation: Rolta's key credit strength lies in its established market position in engineering and geospatial services which have high entry barriers. This has led to solid revenue growth and operating EBITDAR margins over 40%, which compare favorably with industry peers. In addition, Indian defence spending is likely to grow which will continue to be a foundation for Rolta's growth over the long term. Transition to IP-led strategy: Rolta's gradual transition to an IP-led solution provider is a sound strategy as it creates long- term recurring revenues in the form of licence sales and maintenance fees. The company's target to improve the IP-driven revenue share to 25%-30% in the next two to three years from the current 15% should add stability to revenue growth and operating margins. Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include - FFO-adjusted leverage increasing above 4x. However, Fitch expects the company to maintain leverage below 4x in the medium term, driven by a gradual decrease in capex and stable FFO growth. Rolta's IDRs are constrained by the small scale of its operations. As such, Fitch does not foresee any positive rating action over the medium term. The RWP on the senior unsecured and the proposed notes' instrument ratings will be resolved post the bond issue and the refinancing of its secured debt. ==================== N E W Z E A L A N D ==================== HANOVER FINANCE: SFO Concludes Finance Company Investigations ------------------------------------------------------------- The Serious Fraud Office said it has completed its investigation of Hanover Finance Limited, bringing to an end its investigations into the 2007/08 finance company collapses. That process, which saw SFO investigate 15 separate companies, resulted in criminal prosecutions in relation to nine companies. Overall, 23 individuals have faced charges laid by SFO. The last of the investigations, into Hanover Finance Limited and related companies, took 32 months. SFO announced it will not be proceeding with criminal charges in this case. "This has been by far the most extensive and challenging of the finance company investigations undertaken by SFO," said Acting SFO Chief Executive Simon McArley. Since September 2010, SFO has analysed more than 107,000 pages of documentary evidence and interrogated over 3,730 gigabytes of electronic data. Fifty-four interviews have been conducted over 120 hours, and more than 30 individual loans or other transactions of interest have been identified and reconstructed. Overall, around 12,700 hours have been spent analysing that evidence. Expert opinion advice has also been considered from eight external advisors. From that evidence and advice, SFO believes that serious questions arise as to: * The consistency between the overall view of the nature and financial condition of the companies disclosed to investors in the period from December 2007, and the actual position of the companies; * The solvency of the companies at the times that dividends were paid during the six months immediately prior to the suspension of payments to depositors in July 2008; * The propriety of a number of transactions entered into in the three months immediately prior to the suspension of payments to depositors that appear to have provided little or no benefit to the companies, while conferring some significant benefits on the related parties; * The accuracy of the valuation of the companies' assets in the financial statements supporting the Debt Repayment Proposal put to investors in November 2008. However, in order for criminal charges to be successful it is necessary not only to prove beyond reasonable doubt that these circumstances occurred and that they breached the companies' legal obligations, but that identified individuals in control of the companies had both knowledge of the circumstances and caused them to occur with dishonest intent. "Recent decisions relating to other failed finance companies have highlighted how difficult it is to satisfy this standard," said Simon McArley. "SFO's prosecution decisions must also be made within the context of the Solicitor-General's Prosecution Guidelines. These require me to be satisfied that there is a reasonable prospect, based on credible and admissible evidence, that an impartial jury could be satisfied, beyond reasonable doubt, that the person prosecuted has committed a criminal offence. On the basis of the evidence currently available, SFO is not able to reach that threshold. As a result it is unable to commence any criminal charges in relation to Hanover Finance and its related companies." Simon McArley said SFO remains open to reconsider its decision if fresh evidence as to the actual knowledge and intent of those in control of the company becomes available. "While many may view the conduct that occurred at Hanover Finance as egregious, that alone is not sufficient for me to commence a prosecution," he said. "This is a case that has attracted huge public attention and is of significant public interest. I believe that this justifies the vast time and resources that SFO has dedicated to it. However, we have now exhausted every available avenue of enquiry and the time has come to move on and focus our resources elsewhere." "While this has been an extremely difficult decision to make, I'm convinced that it is not only the right one but the only possible decision on the basis of the available evidence. The decision has not been reached in a vacuum. I have consulted with the Crown Solicitors, leading criminal Queen's Counsel, and the Deputy Solicitor-General," he said. SFO has coordinated its activities fully with the civil claims being pursued by the Financial Markets Authority (FMA), and will provide all the information and evidence possible to assist FMA in those claims for compensation of the investors. "The vast majority of the information we have accumulated has already been shared with FMA, but if there is any additional material we can provide to assist we will do so," said Simon McArley. "We will now be reviewing the evidence we have gathered to see if other referrals are appropriate," he said. About Hanover Finance Hanover Finance Limited -- http://www.hanover.co.nz/-- was New Zealand's third-largest privately-owned finance company with total assets of NZ$796 million at December 31, 2007. The company was established in 1984 to provide finance to the rural sector and began lending to property developers and investors in 1995. The loan portfolio has been gradually downsized since 2006 as a result of a more cautious approach to lending in the face of retail funding constraints. Hanover Finance's investors in December 2008 voted in favor of the company's Debt Restructure Proposals, including a plan to fully repay NZ$552.6 million principal it owes over five years. However, Hanover Finance said in November 2009 it is no longer likely to fully repay investors under a debt restructuring plan due to a deterioration in the commercial property development market, a TCR-AP report on Nov. 12, 2009, said. In December 2009, investors agreed to swap their Hanover interests for shares in Allied Farmers Ltd. The Serious Fraud Office commenced an investigation into the affairs of Hanover Finance Ltd in September 2010 after considering complaints received from the Securities Commission, Allied Farmers and others. The Financial Markets Authority, on March 30, 2012, filed civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd, and United Finance Ltd. Proceedings under the Securities Act have been filed against Mark Hotchin, Eric Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and Dennis Broit. They relate to statements made in the December 2007 prospectuses, subsequent advertising, and the March 2008 prospectus extension certificate. STARPLUS HOMES: Unsecured Creditors Unlikely to Get Paid -------------------------------------------------------- Stuff.co.nz reports that the first liquidator's report into collapsed Starplus Homes has indicated unsecured creditors owed an estimated NZ$13.6 million are likely to be repaid less than NZ$1.5 million if anything at all, once receivers and liquidators fees are taken into account. That's after first security holder Westpac Bank and other preferential creditors are paid, including the Inland Revenue Department (owed NZ$75,000) and staff (NZ$80,000 in wages and holiday pay), the report says. Stuff.co.nz notes that Starplus' Chinese owner, Richard Lee, put the company into voluntary liquidation on April 22 but Westpac Bank then appointed a receiver late last week who has control over any secured assets. Any surplus assets left over after Westpac and other preferential creditors have been paid, will be returned to the liquidator, according to the report. When the liquidator was appointed the company had up to 140 properties in various stages of development in Hamilton, Cambridge and Auckland. The company's owner and director has estimated the value of these properties at about NZ$7 million but the liquidator, who released his report at the close of business on April 29, reported the value as unknown, Stuff.co.nz relates. Waikato Times inquiries have indicated that about NZ$40 million of assets and NZ$25 million secured debt may be involved in the company's failure. ==================== S O U T H K O R E A ==================== * South Korean Firms Sees Negative Business Outlook For May ----------------------------------------------------------- Yonhap News Agency reports that South Korea's major companies predict their business conditions will take a turn for the worse in May for the first time in three months due to bleak economic prospects stemming from the Japanese yen's weakness and poor job reports in the United States, a poll showed Monday. The monthly business survey index came to 99.8 for May, down from 101.5 in April, the news agency discloses citing a poll of the country's 600 companies by sales by the Federation of Korean Industries (FKI). The index, which had been above the benchmark 100 in March and April, turned negative for next month, the lobby for the country's large businesses said, citing its survey conducted between April 17 and April 23, Yonhap relates. A BSI reading below 100 means pessimists outnumber optimists, the report notes. According to Yonhap, the FKI cited the yen's decline against the U.S. dollar and poor jobs report in the U.S. as negative external factors that could affect the local economy. =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, 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 ***