/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130516.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, May 16, 2013, Vol. 16, No. 96 Headlines A U S T R A L I A LEETON SOLDIERS: Board Regains Control Following Deed Signing LIBERTY PRIME: Fitch Affirms 'BB' Rating on Class E Notes MISSION NEW ENERGY: SLW Held 83.8% Shares as of April 17 SONDEI BRANDS: William Buck Seeks Buyers for Patents I N D I A BHANWARDEEP COPPER: CARE Puts 'CARE B' Rating on INR4.30cr Loan HAPPY HOME: CARE Assigns 'BB-' Rating to INR273.57cr LT Loan JAKHOTIA PLASTICS: CARE Rates INR7.52cr LT Loan at 'CARE BB' JAYSHRI PROPACK: CARE Assigns 'B' Rating to INR11.38cr LT Loan KISSAN HATCHERIES: CARE Assigns 'B+' Rating to INR16.47cr Loan MADHAV GINNING: CARE Assigns 'B' Rating to INR12cr Loan MECHVAC FABRICATORS: CARE Rates INR8.82cr LT Loan at 'B' R.D. DYEING: CARE Rates INR2.5cr LT Loan at 'CARE B+' SHARP REALTORS: CARE Assigns 'BB+' Rating to INR75cr Loan SHIVAM COT: CARE Assigns 'B' Rating to INR6.8cr LT Loan SRIVALLI SHIPPING: CARE Assigns 'D' Rating to INR8.25cr Loans TULSI PAPER: CARE Assigns 'BB-' Rating to INR48cr LT Loan VRISHABH COTTON: CARE Rates INR8.67cr LT Loan at 'CARE B' N E W Z E A L A N D ASCENSION WINE: Receivership Jeopardizes Nuptials P H I L I P P I N E S EXPORT AND INDUSTRY: Chairman Says PDIC Charge is "False" S O U T H K O R E A STX GROUP: Creditors Move to Approve Liquidity Infusion S R I L A N K A SRI LANKA INSURANCE: Fitch Assigns 'BB-' IFS Rating - - - - - ================= A U S T R A L I A ================= LEETON SOLDIERS: Board Regains Control Following Deed Signing ------------------------------------------------------------- Irrigator.com.au reports that the Leeton Soldiers Club board has been handed back control of the facility following the official signing of the deed of company arrangement on May 13. The club was placed into voluntary administration last month, with the unsecured creditors voting in favour of the deed on May 8. As part of the arrangement, the report relates, the club still needs to raise AUD500,000. According to the report, club president Barry Greatz said it was now time to look forward. "From my perspective, the public has to understand we have been given a second chance, a lifeline, by the creditors," the report quotes Mr. Greatz as saying. "It's definitely not a case of everything being fixed . . . there is a lot of work to do. We need to raise that money and we need to get people back to the club." LIBERTY PRIME: Fitch Affirms 'BB' Rating on Class E Notes --------------------------------------------------------- Fitch Ratings has affirmed Liberty PRIME Series 2009-2's (Liberty 2009-2) and Liberty PRIME 2010-1's notes. The transactions are securitisations of Australian prime residential mortgages originated by Liberty Financial Pty Ltd. The rating actions are as follows: Liberty PRIME Series 2009-2: AUD40.4m Class A3 (ISIN AU3FN0009304) affirmed at 'AAAsf'; Outlook Stable AUD6.3m Class AB (ISIN AU3FN0009312) affirmed at 'AAAsf'; Outlook Stable AUD1.8m Class B (ISIN AU3FN0009320) affirmed at 'AAsf'; Outlook Stable AUD1.5m Class C (ISIN AU3FN0009338) affirmed at 'Asf'; Outlook Stable AUD0.9m Class D (ISIN AU3FN0009346) affirmed at 'BBBsf'; Outlook Stable AUD0.8m Class E (ISIN AU3FN0009353) affirmed at 'BBsf'; Outlook Stable Liberty PRIME Series 2010-1: AUD89m Class A2 (ISIN AU3FN0011250) affirmed at 'AAAsf; Outlook Stable AUD10.4m Class AB (ISIN AU3FN0011268) affirmed at 'AAAsf'; Outlook Stable AUD3.6m Class B (ISIN AU3FN0011276) affirmed at 'AAsf'; Outlook Stable AUD3.6m Class C (ISIN AU3FN0011284) affirmed at 'Asf'; Outlook Stable AUD3.4m Class D (ISIN AU3FN0011292) affirmed at 'BBBsf'; Outlook Stable AUD1m Class E (ISIN AU3FN0011300) affirmed at 'BBsf'; Outlook Stable Key Rating Drivers The affirmation of the notes reflects Fitch's view that credit enhancement levels are able to support the notes' current ratings. The credit quality and performance of the loans within the Liberty 2009-2 collateral pool have remained in line with the agency's expectations, while Liberty 2010-1 has improved in performance since the last rating action in June 2012. The transactions are well protected at each rating level by credit enhancement which has continued to grow due to sequential amortisation and reserve accounts funded through historical excess spread. Excess spread has been available to both transactions. Arrears have historically been high for both transactions; however, Liberty 2010-1 has seen a reduction since peak levels in early 2012 with 30+ days arrears at 0.94% at end-March 2013, below Fitch's 30+ days conforming Dinkum Index of 1.46%. Liberty 2009-2 has seen 30+ days arrears remain stable at 3.99%. The arrears levels are mitigated by the more-than-adequate credit support available. Losses have been low since issue, with AUD31,118 for Liberty 2010-1 and AUD23,195 for Liberty 2009-2 - all covered by excess spread. As at end-March 2013, the weighted average current loan-to-value ratio of the pools was 60.1% for Liberty 2009-2 and 68.3% for Liberty 2010-1. Investment loans accounted for 18.3% and 14.5% of the pools respectively. Rating Sensitivities In Liberty 2009-2 the class E notes are most susceptible to rating volatility. Given Fitch's 'BBsf' loss severity assumptions and all else being equal, an increase of 90+days arrears by 7.1 percentage points might lead to a downgrade. For Liberty 2010-1, the class D notes are the most susceptible to rating volatility and a corresponding increase of 8.9 percentage points would be expected before downgrades would be considered, given Fitch's 'BBBsf' loss severity assumptions. Both scenarios are considered unlikely given the historical performance of the collateral pool. Concentration risk is increasing in Liberty 2009-2, with 273 obligors remaining at end-March 2013. As concentration continues to increase, the likelihood of any rating upgrade will reduce. The increase in the weighted average coupon on the notes may reduce excess available income, in turn leaving lower rated notes exposed to concentration risk. The most senior notes are not expected to be impacted by a reduction of excess available income. MISSION NEW ENERGY: SLW Held 83.8% Shares as of April 17 -------------------------------------------------------- In an amended Schedule 13D filing with the U.S. Securities and Exchange Commission, SLW International, LLC, and Stephen L. Way disclosed that, as of April 17, 2013, they beneficially owned 55,127,081 ordinary shares of Mission New Energy Limited representing 83.8% of the shares outstanding. On Feb. 22, 2013, SLWI entered into a Loan Facility Agreement with the Company, pursuant to which SLWI has agreed to lend the Company up to an aggregate $5,000,000 for working capital purposes during the 24-month term of the Loan Agreement. In consideration of the lending commitment under the Loan Agreement, SLWI will receive a fee equal to the greater of 25 percent of the greatest principal balance of the note issued under the Loan Agreement or $1,000,000. Advances under the Loan Agreement are to be made by SLWI to the Company upon request from time to time in amounts of at least $200,000 and subject to the satisfaction of various conditions specified in the Loan Agreement. On April 17, 2013, SLWI and the Company entered into an amendment to the Loan Agreement whereby SLWI provided conditional consent to the Company's prospective sale of a biodiesel refinery in Malaysia, subject to certain terms and conditions. Under that amendment, SLWI and the Company agreed that the lending commitment under the Loan Agreement would not be reduced by the proceeds of the prospective sale of the subject refinery and that a fee of $1,000,000 together with all outstanding advances under the Loan Agreement would be paid to SLWI concurrently with the consummation of the prospective asset sale. On April 17, 2013, SLWI and the other holders of the Series 3 Notes provided a conditional waiver letter to the Company concerning the prospective sale of the Malaysian refinery subject to the terms and conditions, including the redemption of AUD7,500,000 in face value of the Series 3 Notes to the noteholders pro-rata in accordance with their holdings. In addition, on April 17, 2013, SLWI and the other holders of the Series 3 Notes entered into a letter agreement containing, among other things, an agreement regarding access to information concerning the transactions described therein and a mutual release. A copy of the regulatory filing is available for free at: http://is.gd/dOXEVD About Mission New Energy Based in Subiaco, Western Australia, Mission New Energy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. Grant Thornton Audit Pty Ltd, in Perth, Australia, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred operating cash outflows of AUD4.9 million during the year ended June 30, 2012, and, as of that date, the consolidated entity's total liabilities exceeded its total assets by AUD24.4 million. The Company's consolidated balance sheet at Dec. 31, 2012, showed AUD7.05 million in total assets, AUD27.29 million in total liabilities and a AUD20.24 million net deficit. SONDEI BRANDS: William Buck Seeks Buyers for Patents ---------------------------------------------------- Dissolve.com.au reports that William Buck is seeking expressions of interests for the technological/meteorological innovation patents of Sondei Limited. The report says the patents include ground based, high resolution and acoustic sensors that can detect adverse atmospheric conditions such as wake vortices and wind shear. Dissolve.com.au relates that the patents allow for more accessibility of meteorological information for guiding decisions regarding air traffic flow. They are also capable of measuring meteorological variability for the reduction of the figures of unexpected events like wind shear. Moreover, they can also develop some solutions which can meet the needs for improving capacity, operations and safety. The patents are registered in Australia, Europe, China, USA, Canada and Japan. They are also advertised as being capable of creating new business services and products based on certain information. Expressions of interests must be registered on June 7, 2013, the report notes. Robert Whitton has been appointed as voluntary administrator of Sondei Brands Pty. Ltd. on May 1, 2013. ========= I N D I A ========= BHANWARDEEP COPPER: CARE Puts 'CARE B' Rating on INR4.30cr Loan --------------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Bhanwardeep Copper Strips Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 4.30 CARE B Assigned Short-term Bank Facilities 4.28 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Bhanwardeep Copper Strips Pvt Ltd are primarily constrained on account of its modest scale of operations and weak financial risk profile characterized by high leverage, modest debt coverage indicators and weak liquidity. The ratings are further constrained on account of the low bargaining power of BCSPL vis-a-vis its customers and suppliers, susceptibility of operating margins to volatility in raw material prices and its presence in the highly fragmented copper products industry. The ratings, however, draw strength from the experience of the promoters in manufacturing copper products, established track record of operations and reputed clientele base of BCSPL. The ability of BCSPL to increase its scale of operations along with improvement in its leverage and liquidity profile while managing volatility associated with the key raw material prices are the key rating sensitivities. BCSPL was incorporated by Mr. D. C. Bafna and family members in 1999 at Bhopal. BCSPL is a family-run business with the board of directors comprising of the Bafna family members. BCSPL is engaged in the manufacturing of copper strips and flats, insulated wires, bus bars and connectors, shunts as well as forged components. BCSPL has two manufacturing units: Unit-I having an installed manufacturing capacity of 1,200 Metric Tonnes Per Annum (MTPA) and Unit-II having an installed capacity of 325 MTPA of copper products. In addition, BCSPL is also engaged in doing job work for Bharat Heavy Electricals Ltd (BHEL) and other capital goods manufacturers. As per the audited results for FY12 (refers to the period April 1 to March 31), BCSPL reported a total operating income of INR17.31 crore (FY11: INR14.56 crore) and PAT of INR0.41 crore (FY11: INR0.26 crore). During FY13 (provisional), BCSPL registered a total income of INR12.50 crore. HAPPY HOME: CARE Assigns 'BB-' Rating to INR273.57cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE BB-' rating to the bank facilities of Happy Home Corporation. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 273.57 CARE BB- Assigned The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo a change in case of withdrawal of capital or unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Happy Home Corporation is primarily constrained on account of the risk associated with the implementation and salability of its large number of the ongoing real estate projects, constitution as a partnership firm and the inherent risks associated with the real estate sector. The rating, however, favorably takes into account the partner's experience and established track record of the firm in the real estate market of Surat. The rating also factors in HHC's growth in income along with an improvement in the profitability indicators. HHC's ability to successfully complete its ongoing projects within envisaged cost and time parameters, timely receipt of booking advances and sale of units at envisaged price along with timely infusion of the envisaged partner's capital are the key rating sensitivities. HHC is a partnership firm formed in 2003 by first-generation entrepreneurs Mr. Himmat Sorathia and Mr. Mukesh Patel. Over the last decade, the firm has developed around 30 projects (both residential and commercial) in and around the city of Surat with a total saleable area of around 51.97 lakh sq ft (lsf). Currently, HHC is executing 19 real estate projects (mix of residential and commercial) in Surat with a total saleable area of around 83.35 lakh sq. ft. During FY12 (refers to the period April 1 to March 31), HHC reported a total operating income of INR98.93 crore (FY11: INR31.62 crore) with a PAT of INR24.50 crore (FY11: PAT of INR6 crore). As per the provisional results for 9MFY13, HHC has reported a total operating income of INR69.79 crore with a PBT of INR4.86 crore. JAKHOTIA PLASTICS: CARE Rates INR7.52cr LT Loan at 'CARE BB' ------------------------------------------------------------ CARE assigns 'CARE BB' rating to the bank facilities of Jakhotia Plastics Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 7.52 CARE BB Assigned Rating Rationale The rating assigned to the bank facilities of Jakhotia Plastics Private Limited is constrained by decline in the company's turnover and low profitability margins during FY10-FY12, and dependency on a single supplier with high competition from other players. The rating, however, derives strength from the experienced promoters and support from the group concerns, established business relations with reputed clients and positive demand outlook for PP woven fabrics resulting from high use of plastic by end-user sectors like fertilizers and cement. The ability of the company to scale up its operations with improvement in profitability margins is the key rating sensitivity. Jakhotia Plastics Private Limited was incorporated in the year 1992 and promoted by Mr. Om Prakash Jakhotia (Managing Director), Mr. Balkishan Jakhotia and Ms Lathabai Jakhotia. JPPL is a part of the Jakhotia Group and is engaged in the manufacturing of plastic woven sacks, which find utility as industrial packaging materials ideally suited for cement, sugar, food grains, etc. JPPL operates from two manufacturing units located at Jeedimetla, Hyderabad, and Kondiam, Goa, with an overall installed capacity of 492 lakh bags per year. Jakhotia Poly Fibre Pvt Ltd, Jakhotia Polysack Pvt Ltd, Raghuram Synthetics Pvt Ltd, Jakhotia Polymers Pvt Ltd and Revati Synthetics Pvt Ltd, are the other group concerns of under the Jakhotia Group. During FY12 (refers to the period April 2011 to March 2012), JPPL reported a total operating income of INR47.62 crore and a PAT of INR0.34 crore. JAYSHRI PROPACK: CARE Assigns 'B' Rating to INR11.38cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Jayshri Propack Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 11.38 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Jayshri Propack Private Limited is primarily constrained by cash losses in its short track record of operations, highly leveraged capital structure, weak liquidity position and modest scale of operations in the highly fragmented industry. The rating is further constrained on account of the working capital intensive nature of operations and vulnerability of profitability to fluctuations in the raw material prices. The rating, however, derives strength from the qualified and resourceful promoters, manufacturing facility equipped with latest technology and reputed clientele. The ability of the company to increase its scale of operations through geographical and customer diversification and improvement in profitability and capital structure along with continued financial support from the promoters are the key ratings sensitivities. Jayshri Propack Private Limited, incorporated in the year 2008, is engaged in the manufacturing of high-performance barrier film, which finds application in packaging of array of products like pouches of edible oil, processed meats, frozen food, coffee, tea, nutritional shakes, pet food, pharmaceuticals, cosmetic and lami tubes, dairy products and pickles and spices. JPPL is promoted by five directors and is a part of the Jetpur-based Jayshri group of Gujarat. The group is managed by the Hirpara family and is involved in the printing and processing of textile fabrics since 1974. JPPL is having a manufacturing facility in Ahmedabad spreading across an area of 20,000 sq mt and has an installed capacity of 2,400 Metric Tonne Per Annum (MTPA) as on March 31, 2012. During FY12 (refers to the period April 1 to March 31), JPPL reported a total operating income of INR24.37 crore with a loss of INR4.78 crore. KISSAN HATCHERIES: CARE Assigns 'B+' Rating to INR16.47cr Loan -------------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Kissan Hatcheries Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 16.47 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Kissan Hatcheries Private Limited is constrained by its short track record of operations with declining profitability margins, leveraged capital structure and weak debt service coverage indicators. The rating is further constrained by the susceptibility of margins to the fluctuation in the agro-based raw material prices and the inherent risk associated with the poultry industry coupled with high competition from local players. The rating, however, draws comfort from the experienced promoters and positive demand outlook for poultry feeds. Going forward, the ability of KHPL to increase its scale of operations while improving profitability margins and capital structure would be the key rating sensitivities. Incorporated in June 2003, KHPL was promoted by Mr. Subhash Deshwal and his cousin brother Mr. Karan Singh. KHPL is engaged in the manufacturing of poultry feeds for different types of poultry units like broiler, layers and hatchery units. Apart from manufacturing, the company is also engaged in the trading of broiler chicks. The company's manufacturing facility is located in Jind, Haryana, with an installed capacity of 33,040 tonnes per annum (TPA) as on March 31, 2012. KHPL has increased its capacity from 33,040 TPA to 87,600 TPA in FY13 (refers to the period April 01 to March 31). KHPL reported PAT of INR0.10 crore on a total income of INR34.39 crore in FY12. Furthermore, in FY13 (provisional), KHPL has reported the total income of INR55 crore. MADHAV GINNING: CARE Assigns 'B' Rating to INR12cr Loan ------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Madhav Ginning & Pressing Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term/Short-term 12 CARE B/CARE A4 Bank Facilities Assigned Rating Rationale The ratings assigned to the bank facilities of Madhav Ginning & Pressing Private Limited are primarily constrained on account of its weak financial risk profile marked by fluctuating income, consistent decline in its operating profit margins over the past years ended FY12 (refers to the period April 1 to March 31), highly leveraged capital structure and weak debt coverage indicators. The ratings are further constrained on account of its presence in the highly competitive and fragmented cotton-ginning business with limited value addition, volatility associated with the raw material prices, working capital intensive operations and susceptibility to the changes in the government policy for cotton. The above constraints far offset the benefits derived from the experience of the promoters in the cotton ginning business and proximity to the cotton-producing region of Gujarat. The ability of MGPPL to move upward in the textile value chain along with improvement in the financial risk profile and better working capital management remains the key rating sensitivity. MGPPL was incorporated in 2005 by Mr. Chhaganbhai Kakadiya, at Amreli district, Gujarat, and is engaged in the cotton ginning and pressing business. As on March 31, 2012, MGPPL had a total ginning capacity of 13,000 bales of cotton and 24,000 metric tonnes per annum (MTPA) of cotton seeds. MGPPL is also engaged in the trading of cotton bales and cotton seeds. During FY12, MGPPL reported a loss of INR0.05 crore on a TOI of INR78.21 crore, as against PAT of INR0.28 crore on a TOI of INR104.27 crore in FY11. As per the provisional results for 11MFY13, MGPPL reported a TOI of INR72.67 crore and a PBDT of INR0.92 crore. MECHVAC FABRICATORS: CARE Rates INR8.82cr LT Loan at 'B' -------------------------------------------------------- CARE assigns 'CARE B' & 'CARE A4' ratings to the bank facilities of Mechvac Fabricators (I) Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.82 CARE B Assigned Short-term Bank Facilities 2.95 CARE A4 Assigned Rating Rationale The ratings of Mechvac Fabricators (I) Private Limited are constrained by its weak financial profile characterized by small scale of operations, eroded net worth, low liquidity and stretched liquidity position. The foresaid constraints far outweigh the experienced management and established relationship with its customers. Improving the overall scale of operations and financial risk profile, along with the efficient management of working capital cycle, are the key sensitivities for Mechvac's credit profile. Mechvac Fabricators India Private Limited was incorporated in 2004 by Mr. Rajendra Chodankar and started commercial operations in 2006. During 2012, Neetnav Realtors Pvt Ltd (NRPL) acquired majority stake in the company and the directors of NRPL are actively involved in the operations of the company. Currently, Mechvac is engaged in the manufacturing of ultra-precision products under own brand name and also on job-work basis. Over the years the company has diversified into optical component manufacturing and flow-forming activity. Till FY12, the company used to deal primarily with the government entities however, in FY13 it has further diversified the customer base to include private players. However, the job work undertaken for the government entities continue to form the major portion of the revenue. The manufacturing facility of Mechvac is located at Nerul, Navi Mumbai. During FY12, Mechvac reported total operating income of INR5.25 crore (up by 73.79% vis-a-vis FY11) and loss of INR1.81 crore. During 9MFY13, the company marked total operating income of INR5.25 crore with PBT of INR0.58 crore. R.D. DYEING: CARE Rates INR2.5cr LT Loan at 'CARE B+' ----------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of R.D. Dyeing & Printing Mills Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 2.50 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of R.D. Dyeing & Printing Mills Pvt Ltd is primarily constrained on account of RDDP's fluctuating income and profitability and weak liquidity position. The rating is further constrained on account of the modest scale of operations in highly fragmented nature of the fabric processing industry and cyclicality associated with the textile sector. The rating, however, draws strength from the vast experience of the promoters in textile business, RDDP's favourable location in textile manufacturing hub and moderate capacity utilization albeit sharp decline in FY12 (refers to the period April 1 to March 31). The ability of RDDP to improve its overall financial risk profile with increase in the scale of operations, profitability and effective working capital management are the key rating sensitivities. RDDP was incorporated in September 2003 by Mr. Nandkishore Kothari and Mr. Harivallabh Kothari. However, the commercial operations commenced from March 2006. RDDP is engaged in the business of job- work of fabric processing viz bleaching, printing, dyeing and finishing of polyester fabric which is mainly used for making sarees and ladies dress material. RDDP operates from its sole processing facility in Surat with a total installed capacity of 50,000 Meters Per Day (MPD) as on March 31, 2013. RDDP also has an associate firm namely R.D. Exports (RDE) which is in the business of exporting the finished fabrics after procuring grey fabrics and getting processed from outside parties. As per the audited results for FY12, RDDP reported a total operating income of INR8.27 crore (FY11: INR22.79 crore) and loss of INR3.01 crore (FY11: PAT of INR0.65 crore). During FY13 (provisional), RDDP registered a total income of INR24.20 crore and PAT of INR0.79 crore. SHARP REALTORS: CARE Assigns 'BB+' Rating to INR75cr Loan --------------------------------------------------------- CARE assigns 'CARE BB+' rating to the bank facilities of Sharp Realtors. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 75 CARE BB+ Assigned (including proposed loan of INR60 crore) Rating Rationale The rating assigned to the bank facilities of Sharp Realtors is constrained by the project execution risk of the mall, pending receipt of Commencement Certificate (CC) and pending partial debt tieup, low margin to absorb any time or cost over runs as the firm has no additional source of revenue except residual inventory from Durvas project, and cyclical nature of the industry. The rating, however, derives strength from experience of the promoters in the real estate industry, established residential area in the vicinity of the ongoing mall development project, Memorandum of Understanding (MOUs) and Letter of Intent (LOIs) signed with tenants covering 76% of the mall's leasable area, anticipated receivables from Tata Housing Development Company Limited escrowed to service the outstanding loan of INR15 crore and moderate overall gearing ratio given the presence in the real estate industry. The ability to raise the proposed debt as planned and complete the project without any time and cost overruns are the key rating sensitivities. M/s Sharp Realtors is promoted by the Swastik group to execute a residential-commercial-retail project as a part of "Yashwant Viva Township" in the Alkapuri locality at Nallasopara (East), Thane. The Swastik group, engaged in the construction business for more than 11 years was started by Mr. Deepak Shah, Mr. Hemant Mhatre, Mr. Kishore Naik, and Mr. Pankaj Thakur. The group has completed over 10.10 lakh square feet (lsf) of construction and has ongoing projects with total area under construction of over 59.10 lsf. SR has undertaken construction of the said township project in phases. For the first phase (Phase I), SR completed the development of a residential project on land admeasuring 31,165 square meters (sqm) having a total saleable area of 3.43 lsf namely 'Durvas' residential project. For the second phase (Phase II), SR is constructing a Mall having a total area of 4.50 lsf. The estimated cost for the project is INR100 crore out of which, the entity has already incurred INR49.14 crore as on December 31, 2012. During FY12 (refers to the period April 1 to March 31), the company earned an income of INR59.21 crore and reported a profit of INR9.22 crore as compared with the income of INR26.59 crore and profit of INR2.33 crore in FY11. SHIVAM COT: CARE Assigns 'B' Rating to INR6.8cr LT Loan ------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Shivam Cot Fibers Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.80 CARE B Assigned Short-term Bank Facilities 0.04 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Shivam Cot Fibers Private Limited are constrained by the working capital intensive nature of its operations in the competitive and fragmented cotton ginning industry, fluctuation in prices and seasonality associated with cotton availability, and impact of government policies related to cotton. The ratings, however, derive strength from the experienced management and group support along with the strategic location of the unit in the cotton-growing areas of Maharashtra. The ability of the company to increase the scale of operations, improve its profitability margins and manage working capital cycle is the key rating sensitivity. Aurangabad-based Shivam Cot Fibers Private Limited (SCF) is a part of the Shivam group, which was established by the late Mr. Devishah Agarwal and the late Mr. Kanhaiyalal Agarwal in the year 1945. Currently, the group has five entities operating in the same line of business of cotton ginning and pressing managed by Mr. Deepak Kumar Agarwal. SCF was incorporated in 2012 and has commenced its commercial operation on January 6, 2013. SCF is engaged in the business of cotton ginning and pressing with the installed capacity of 450 bales per day and 300 quintals of cotton seeds per day as on March 31, 2013. During the first three months of operations from January 6, 2013 to March 31, 2013, SCF earned a total operating income of INR5.31 crore. SRIVALLI SHIPPING: CARE Assigns 'D' Rating to INR8.25cr Loans ------------------------------------------------------------- CARE assigns 'CARE D' rating to bank facilities of Srivalli Shipping & Transport Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 7.0 CARE D Assigned Short-term Bank Facilities 1.25 CARE D Assigned Rating Rationale The rating is constrained by high working capital utilisation with regular overdrawals due to cash flow mismatches. Srivalli Shipping & Transport Pvt Ltd was incorporated in May 2011, to take over the existing business of Srivalli Shipping & Transport; a partnership firm formed in 1994 with Mr. P. Babu Rao and his wife, Ms P.S.V.S Eshwari, as its partners. The company is a logistic service provider with its headquarter in Vishakapatnam. Srivalli provides various logistic services, including acting as Custom House Agents, Clearing & Forwarding (C&F) Agents, stevedoring, material handling, warehousing, transporting, shipping, steamer agency dealing with all the clearances of import & export consignments of various categories. Srivalli has the required licenses to operate as a Custom House Agent, Steamer Agency and for Stevedoring issued by Customs Authorities/Port Authorities. The company has branches located in Chennai, Bengaluru, Mumbai, Hyderabad, Kakinada and other locations. Credit Risk Assessment High working capital utilisation with regular overdrawals. The average working capital utilisation of Srivalli has been over 100% for the 12 months ended November 2012. The company caters to many public sector entities, wherein, the payments are received with delay resulting in cash flow mismatches leading to regular overdrawls in its Cash Credit limits. Srivalli registered net sales of INR66.34 crore with PAT of INR0.21 crore for FY12. Furthermore, as per provisional FY13 financials (Un-audited), the company has registered, the company has registered turnover of INR84.89 crore with net profit of INR2.22 crore for FY13. TULSI PAPER: CARE Assigns 'BB-' Rating to INR48cr LT Loan --------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Tulsi Paper Mills Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 48 CARE BB- Assigned Short-term Bank Facilities 9 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Tulsi Paper Mills Private Limited are constrained by project stabilization risk. The ratings are further constrained by the operations in highly competitive and unorganized industry, susceptibility to volatile raw material prices and foreign exchange fluctuation. The ratings factor in the benefit derived from the experienced management and stable demand indicators for board paper from the packaging industry. The ability of TPMPL to stabilize the operations, and achieve the envisaged revenue and profitability amidst increasing competition are the key rating sensitivities. Incorporated in 2007, Tulsi Paper Mills Private Limited is setting up a unit to manufacture duplex board paper (mainly used for carton packaging) with installed capacity of 49,500 MTPA at Dastan, Gujarat. The total project cost is estimated at INR53.26 crore, being funded through the promoter's contribution in form of equity of INR18.26 crore (34%), term loan of INR33 crore (62%) and balance through unsecured loan from related parties. As on March 23, 2013, the company has already incurred INR50.67 crore, funded through term debt of INR31.26 crore and balance through promoters contribution and unsecured loans. Besides, paper plant, TPMPL is also setting up a 3 MW captive power plant (CPP). VRISHABH COTTON: CARE Rates INR8.67cr LT Loan at 'CARE B' --------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Vrishabh Cotton Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.67 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Vrishabh Cotton Private Limited is primarily constrained by the weak financial risk profile characterized by thin profitability margins, high leverage, weak debt coverage indicators and working capital intensive nature of operations. The rating further factors in the non-operational status of cotton ginning plant, operations in a highly competitive cotton ginning and cattle feed manufacturing industry. The aforesaid constraints are partially offset by the strength derived from the experienced promoters along with continuous financial support in the past. The ability of VCPL to restart the operations of ginning plant, increase its scale of operations along with improvement in capital structure and efficient management of working capital cycle are the key rating sensitivities. Incorporated in 2007, VCPL is promoted by Mr. Ashish Omprakash Mantri and Mr. Dipesh Zumberlal Patni. VCPL is currently engaged in the trading of cattle feed and cotton ginning. During FY12 (refers to the period April 1 to March 31), the company had ventured into manufacturing of cattle feed [contributed 10.75% of revenue in FY12]. However, during FY13, the major contributor to the total income has been manufacturing of cattle feed as the cotton ginning operations were shut down from October 2011 due to non-availability of the cotton. The promoters has taken cattle feed processing unit on lease from Maharashtra State Cotton Growers' Marketing Federation & currently VCPL is operating this unit. During FY12, VCPL reported a total operating income of INR21.23 crore (declined by 45% vis-a-vis FY11) and PAT of INR0.02 crore (declined by 97.78% vis-a-vis FY11). Furthermore, during 9MFY13, VCPL has posted a total income of INR19.22 crore and PAT of INR0.15 crore. ==================== N E W Z E A L A N D ==================== ASCENSION WINE: Receivership Jeopardizes Nuptials ------------------------------------------------- Newstalk ZB reports that there is uncertainty for an Auckland couple who had a wedding planned at Ascension Wine Estate, a popular winery and events venue that was placed into receivership last week. The report says Donna Walker and James Davis paid a NZ$7,000 deposit for their big day on July 20, at Ascension Wine Estate at Matakana in rural north Auckland. According to the report, Donna's sister and bridesmaid, Kerrie Marumaru, said when she spoke to receivers they were unable to tell her whether the wedding could still take place there, or if the deposit was lost and eight weeks out a new venue would have to be found. "We're talking about two half-Maori families. There's so many people they have to cut out of it and my sister's just devastated," the report quotes Ms. Marumaru as saying. NBR Online reported that Ascension Wine Estate was put into voluntary receivership on May 6 when owners Darryl and Bridget Soljan asked the bank to call in the receivers. The Soljans are the fifth-generation of the Soljan family, of Yugoslav origins, to grow grapes and make wine for a living. Receiver Andrew McKay from Corporate Finance said his team will continue to trade the business, and functions and events booked at the venue will go ahead. Ascension Wine Estate is a winery and popular events venue in Matakana, north of Auckland. The home vineyard makes a range of red, white and sparkling wine under the Ascension label. ===================== P H I L I P P I N E S ===================== EXPORT AND INDUSTRY: Chairman Says PDIC Charge is "False" --------------------------------------------------------- Inquirer.net reports that the chief of Export and Industry Bank has decried charges against him and other former bank officers by the state-owned Philippine Deposit Insurance Corp. of having allegedly engaged in "unsafe and unsound" banking practice. "The charge is utterly false and baseless. This may be in retaliation for the case filed by the shareholders of EIB against PDIC questioning the hasty and unwarranted decision to liquidate EIB," Inquirer.net quotes EIB chairman Jaime Gonzales as saying. "Instead of harassing me and other officers of EIB, PDIC should focus on addressing the situation of the depositors of EIB especially as last week I brought a group of foreign investors to meet with both BSP and PDIC for the acquisition of EIB under a deal that is expected to give depositors a better recovery than liquidation," he said. According to the report, Mr. Gonzales said he had not received a copy of the charge and had only come to know of it based on what has been reported in the news. Inquirer.net relates that PDIC said it filed the criminal charges against Gonzales and other bank officers after finding out that EIB had spent P4.8 million in so- called success fee, P3 million of which was disbursed to investment banking firm AO Capital Partners, of which Gonzales is chair. Last April 26, the majority shareholders of EIB went to the Court of Appeals in an attempt to fend off the bank's liquidation, alleging "indecent haste" and "grave abuse of discretion amounting to lack or excess of jurisdiction" among banking regulators that ordered the dissolution. Headquartered in Makati City, Manila, Export & Industry Bank -- http://exportbank.com.ph/-- has 50 branches and has revived former Urban Bank unit under new names. Its principal activity is the provision of commercial banking services such as deposit taking, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. As reported in the Troubled Company Reporter-Asia Pacific on April 27, 2012, ABS-CBNnews.com said Bangko Sentral ng Pilipinas placed EIB under receivership on April 26, 2012. The Monetary Board cited the bank's "inability to meet obligations as they becomes due, insufficient realizable assets to meets its liabilities and its inability to continue its business without involving probable losses to its depositors and creditors." The Philippine Deposit Insurance Corporation (PDIC) took over the Export & Industry Bank on April 27, 2012, to implement Monetary Board Resolution No. 686 dated April 26, 2012. As Receiver, PDIC will gather all the assets of the closed bank and verify and validate all bank records. The Monetary Board (MB) of the BSP this month ordered PDIC to proceed with the liquidation of EIB. The order was issued pursuant to Section 30 of Republic Act 7653 (the New Central Bank Act) after the MB received the report of the PDIC on the non- satisfaction to the conditions for the rehabilitation of EIB. The March 20, 2013 rebidding for the rehabilitation of EIB was declared a failure when no letter of interest was received from any of the pre-qualified strategic third party investors (STPIs). For the bidding last Oct. 18, 2012, no bids were received from the pre-qualified STPIs who submitted letters of interest to participate in the bidding. The net realizable value of EIB's recorded assets estimated at PHP13.65 billion is deficient by PHP11.02 billion to cover its liabilities aggregating to PHP24.67 billion as of December 31, 2012. ==================== S O U T H K O R E A ==================== STX GROUP: Creditors Move to Approve Liquidity Infusion ------------------------------------------------------- Yonhap News Agency reports that creditors of STX Group are moving to accept the group's request to pump liquidity into its troubled heavy industry and engine-making units in return for restructuring efforts, officials said Wednesday. The news agency relates that officials said main creditor Korea Development Bank (KDB) has requested other creditors to decide on whether to approve the supply of a combined KRW190 billion (US$170.6 million) in liquidity to STX Heavy Industries and STX Engine until Thursday. "The creditors have shown no division over the need to salvage the two companies," an official at KDB told Yonhap News. STX Corp. was allowed on May 14 to receive liquidity worth KRW300 billion to help it repay maturing debt, the report notes. STX Group, a South Korean shipbuilding conglomerate, has seen its major affiliates struggling from liquidity shortages as they have been suffering from mounting debt due to the downturn in the shipbuilding and shipping sectors, Yonhap News disclosed. STX Corp., the group's holding company, and its two affiliates have asked the KDB to inject liquidity in return for a voluntary debt relief process to salvage the firm from insolvency. STX Corp. has 11 affiliates including STX Pan Ocean and STX Offshore & Shipbuilding under its wing. IT service provider ForceTec, in which group chief Kang Duk-soo holds 69.4 percent stake, has a 23.1 percent stake in STX Corp. Mr. Kang also holds a 25 percent interest in STX Construction, which applied for a court receivership on April 26, Yonhap added. ================ S R I L A N K A ================ SRI LANKA INSURANCE: Fitch Assigns 'BB-' IFS Rating --------------------------------------------------- This announcement corrects the version published earlier on May 14, which incorrectly stated Sri Lanka's Country Ceiling. Fitch Ratings Lanka has published Sri Lanka Insurance Corporation Limited's (SLIC) Insurer Financial Strength rating (IFS) at 'BB-' with a Stable Outlook. The agency has also affirmed the National Insurer Financial Strength Rating and National Long-Term rating at 'AA(lka)' with a Stable Outlook. Key Rating Drivers The ratings reflect SLIC's strong franchise and capitalisation, supported by sustained profitability and high capital retention. Regulatory solvency at end-2012 was 11x (2011:11.6x) in life and 3.4x (2011: 2.2x) in non-life and compare well with peers. Fitch expects support from the Government of Sri Lanka, if required, due to its 99.9% ownership and SLIC's strategic importance as the largest state-owned insurer. Offsetting the strengths are significant investments in non-core subsidiaries, which are made in line with government policy and a high equity exposure which weakens risk-based capital. SLIC has been in operation for over 50 years and has a network of 135 branches/ customer service centres across the country. The company has an asset base of around LKR132.5bn, making it the largest insurer in Sri Lanka accounting for about 40% of the sector assets. In 2012, the company continued to be a market leader in non-life and had the second-largest share of gross written premium (GWP) in the life business. Competition in the non-life business continued to be intense, with smaller insurers striving to achieve critical mass ahead of the compulsory segregation of life and non-life by 2015. In this context SLIC's non-life premium growth in 2012 of 10.2%, fell behind the industry's 14%. Fitch notes that certain new entrants have been successful in capturing market share at the expense of competitors, including well-established insurers. Increase in the loss ratio and an offsetting decrease in the expense ratio improved SLIC's non-life combined ratio to 90.9% (2011: 93.1%) in 2012. The company recorded a profit of LKR8.2bn against a restated loss of LKR16bn in 2011, as it benefited from high investment income and a one-off property revaluation of LKR4.7bn. These resulted in a return on assets of 6.5% SLIC's investment portfolio is heavily exposed to equities, albeit reduced to 43% at end-2012, from 51% in 2011. However, total equity investments still remain higher than total shareholders' equity. There is also a mismatch in the asset and liabilities of the life business, exposing the company to interest rate risk. This is mainly due to the limited availability of long-term investment opportunities in the Sri Lankan market. Rating Sensitivities SLIC's National ratings may be upgraded if it is able to hold onto its market share while maintaining strong capitalisation and recurring core profitability. Upgrade of the International IFS rating is not possible unless Sri Lanka's country ceiling of 'BB-' is also upgraded. The National and International IFS and the National Long-Term ratings could be downgraded if there is a weakening in the risk capital due to profit volatility or higher equity exposure, deterioration in the non-life combined ratio to above 100% on a sustained basis or a drop in the life regulatory solvency margin below 10x. A weakening in SLIC's importance to the government, increased pressure from the state for higher dividend pay-outs or a significant increase in non-core investments could also place downward pressure on the ratings. ********* 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 ***