/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130619.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, June 19, 2013, Vol. 16, No. 120 Headlines A U S T R A L I A EL ZORRO: Closes Operations, Cuts 26 Jobs FLEXI ABS 2013-1: Moody's Assigns (P)Ba2 Rating to Cl. E Notes FLEXI ABS TRUST: Fitch Assigns 'BB' Rating to Class E Notes LIQUID VISION: SV Partners Appointed as Administrators LISA HO: Fire Sales Begin as Administrators Fail to Find Buyer I N D I A AEON MEDICAL: ICRA Reaffirms 'BB' Ratings on INR11.5cr Loans BRIJ GOPAL: ICRA Assigns 'BB+' Ratings to INR200cr Loans DAYARAM CHEMICALS: ICRA Rates INR10cr Cash Credit at '[ICRA]B+' GOYAL DEVELOPERS: ICRA Rates INR6.50cr LT Loan at '[ICRA]B+' GULMOHAR PARK: ICRA Reaffirms 'BB+' Rating on INR55cr Term Loan IL&FS ENG'G: Court Admits Winding Up Plea Against Firm INDIAN STEEL: ICRA Cuts Ratings on INR684.92cr Loans to 'BB' MULCHAND FIBER: ICRA Assigns 'B' Ratings to INR13cr Loans PETRO CHEM: ICRA Assigns 'B+' Rating to INR5cr Cash Credit PRAHLADRAI & CO: ICRA Assigns 'D' Rating to INR2.95cr Loan RAJ COKE: ICRA Assigns 'D' Ratings to INR6.93cr Loans SETHI COKE: ICRA Assigns '[ICRA]D' Ratings to INR6.88cr Loans SHIVAM COTTON: ICRA Rates INR13cr Cash Credit at 'B' VIPUL ENTERPRISES: ICRA Places 'C+' Ratings on INR5.50cr Loans J A P A N TOKYO ELECTRIC: Execs Voiced Staff Exodus Concerns, Minutes Show S O U T H K O R E A GS ENGINEERING: Faces Probe on Alleged Accounting Fraud STX GROUP: Pan Ocean Falls as Receivership Filing Accepted X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= EL ZORRO: Closes Operations, Cuts 26 Jobs ----------------------------------------- ABC News reports that there's still confusion about the payment of entitlements to sacked workers in Junee at El Zorro Transport. When El Zorro closed its doors 26 employees lost their jobs and some have not received any benefits for six weeks, according to ABC News. The report relates that secretary with the New South Wales Branch of the Rail, Tram and Bus Union Robert Hayden said he held talks with company representatives. While the company is refusing to comment, Mr. Hayden said no decision has been made by the firm on whether it will go into receivership, the report notes. The report discloses that the union official said the workers will start receiving letters from El Zorro about what they are owed and a termination certificate so they can access Centrelink payments. "But the company is saying they won't issue that to employees until the employees have returned all the company's property that they may have still. . . . We think that is a bit over the top and a bit unfair, some of our members haven't been paid for quite some time now. . . . For the company to now to say you won't get information you need to start to get some sort of benefits until you give us our property is a bit over the top," the report quoted Mr. Hayden as saying. The report relays that Mr. Hayden said the company insists workers will get their entitlements but there is confusion about who will pay them. "But whilst the company hasn't gone into receivership at the moment members get no money from anyone," Mr. Hayden said, the report adds. FLEXI ABS 2013-1: Moody's Assigns (P)Ba2 Rating to Cl. E Notes -------------------------------------------------------------- Moody's Investors Service has assigned provisional ratings to notes issued by Perpetual Corporate Trust Limited in its capacity as the trustee of the Flexi ABS Trust 2013-1. Issuer: Flexi ABS Trust 2013-1 $A152.25M Class A Notes, Assigned (P)Aaa (sf) $A11.55M Class B Notes, Assigned (P)Aa2 (sf) $A16.8M Class C Notes, Assigned (P)A2 (sf) $A8.4M Class D Notes, Assigned (P)Baa2 (sf) $A6.3M Class E Notes, Assigned (P)Ba2 (sf) The $A14.7M Class F Notes are not rated by Moody's. The transaction is the cash securitization of a portfolio of Australian operating and financial equipment leases originated by Flexirent Pty Ltd, a subsidiary of FlexiGroup Ltd. This is FlexiGroup's fourth term-securitization and the third rated by Moody's. Ratings Rationale: Flexi ABS Trust 2013-1 is the securitization of operating and financial equipment lease receivables extended to small-to-medium- sized commercial obligors located in Australia. Notable features of the transaction include the following: - strong back-up servicing arrangements - substantial amount of excess spread - 6.3% exposure in the receivables portfolio to a single corporate obligor rated investment grade by Moody's - presence of equipment maintenance components in around 9.9% of the contracts, and - the short-weighted average lives of the notes. The receivables have either been originated by Flexirent through retail vendors at the point of sale or vendor partnerships, or have been purchased by Flexi from other financiers. During the life of the receivables, the obligors will make at least monthly payments to Flexirent or to the vendor itself, which then transfers the aggregate funds to Flexi, typically on a monthly basis. The receivables are unsecured. Flexirent and FlexiGroup are unrated. Consequently, the transaction structure includes back-up servicing arrangements with Dun & Bradstreet (Australia) Pty Limited. Dun & Bradstreet carries out servicing in parallel with Flexirent, providing near 'hot' levels of support and mitigating the risks of a prolonged servicing disruption. Moody's expected default rate for the granular portion of portfolio is 4.2%. The assumption is based primarily on the historical performance data, and incorporates additional stresses to reflect a more stressful economic environment than that evident during the 2004-2012 period covered by the historical data. The final mean default rate used is 4.68%, which incorporates the benefit of 6.3% exposure to an investment grade corporate obligor, and penalties for the presence of vendor commingling risk and potential losses due to the originator providing equipment protection. The coefficient of variation of the mean default rate was assumed at 53.3%, significantly higher than historical observations due to the lack of any stressed economic environment in the historical data, the short length of meaningful historical data in respect of 46% of receivables in the portfolio, and the presence of maintenance components in some contracts, which could expose the transaction to tail losses. The 27.5% subordination is commensurate with the Aaa (sf) rating of the senior notes. It is materially higher that of a typical auto lease ABS transaction. This is attributed to the unsecured nature of the receivables leading to zero recovery values and to the comparatively worse-than-expected performance. In order to fund the purchase price of the portfolio, the Trust has issued six classes of notes. The notes will be repaid on a sequential basis until the later of: (1) the seventh payment date following the Issue Date, (2) increase in the subordination to Class A notes to 30% from 27.5%, and as long as (3) the 10% clean- up call date has not been reached, (4) there are no carryover charge-offs on any note, and (5) the 60 days past due arrears ratio does not exceed 4%. If all those conditions are met, then classes A to E will be amortized on a pro-rata basis. Subsequently, if the subordination to the Class E Notes becomes greater than 15%, the Class F Notes will be repaid pro rata with the other tranches as well, as long as conditions (3) to (5) are still met. The ratings address the expected loss posed to investors by the legal final maturity. The structure allows for the timely payment of interest and the ultimate payment of the principal by the legal final maturity. Volatility Assumption Scores and Parameter Sensitivities The V Score for this transaction is Medium/High. Among other factors, the V Score is driven by the sensitivity of the capital structure to the assumptions relating to timing of defaults, particularly in light of some micro-tranching and amortization of equity (subject to certain conditions). Moody's was provided with detailed, loan-by-loan data for all receivables originated by Flexirent in the 2004-2012 period. A large part of this dataset relates to receivables originated before 2009 when Flexirent shifted its origination strategy towards large tickets (where the asset costs above AUD10,000). As a result, the historical data provided to Moody's might not be accurately reflective of expected future performance. Moody's notes that this shift in Flexirent's book is directed towards better credit quality obligors, while on the other hand, the short length of meaningful historical data on that customer segment reduces the benefit given to this in quantitative assumptions. V Scores are a relative assessment of the quality of available credit information and of the degree of uncertainty around various assumptions used in determining the rating. High variability in key assumptions could expose a rating to more likelihood of rating changes. The V Score has been assigned accordingly to the report "V Scores and Parameter Sensitivities in the Asia/Pacific RMBS Sector", published in March 2009. Parameter Sensitivities are designed to provide a quantitative calculation of how the initial rating might change if key input parameters used in the initial rating process differed. The analysis assumes that the deal has not aged. Parameter Sensitivities only reflect the ratings impact of each scenario from a quantitative/model-indicated standpoint. In the case of Flexi ABS Trust 2013-1, assuming the default rate rises to 5% (compared to Moody's assumption of 4.68%), the model- indicated rating for the Class A Notes becomes Aa1. The principal methodology used in this rating was "Moody's Approach to Rating Australian Asset-Backed Securities" published in July 2009. The cash flow model used to analyze the transaction was ABSROM 3.5, in which, substantially all default scenarios were considered. Therefore, Moody's analysis encompasses the assessment of stress scenarios. FLEXI ABS TRUST: Fitch Assigns 'BB' Rating to Class E Notes ----------------------------------------------------------- Fitch Ratings has assigned Flexi ABS Trust 2013-1 expected ratings. The transaction is a commercial finance receivables- backed securitisation of unsecured commercial lease receivables. The ratings are as follows: AUD152.3m Class A notes: 'AAA(exp)sf'; Outlook Stable; AUD11.6m Class B notes: 'AA(exp)sf'; Outlook Stable; AUD16.8m Class C notes: 'A(exp)sf'; Outlook Stable; AUD8.4m Class D notes: 'BBB(exp)sf'; Outlook Stable; AUD6.3m Class E notes: 'BB(exp)sf'; Outlook Stable; and AUD14.7m Class F notes: not rated. The notes, due June 2018, will be issued by Perpetual Corporate Trust Limited as trustee of Flexi ABS Trust 2013-1. The Flexi ABS Trust 2013-1 is a legally distinct trust established pursuant to a master trust and security trust deed. At the cut-off date, the total collateral pool consisted of 27,516 loan receivables totalling approximately AUD206m, with an average contract size of AUD7,487. The pool comprises loan receivables predominantly originated by Flexirent Capital Pty Limited (Flexi), a subsidiary of FlexiGroup Limited. All receivables are amortising principal and interest operating leases and finance loans with no residual value at maturity of each of the contracts in the pool. The highest concentrations by equipment type in the pool are collectively printers, copiers and faxes (16.9%) and telephone systems (14.1%). The pool contains loans with varying balloon amounts payable at maturity (25.2%), with a weighted average balloon payment of 6.3%. The transaction also benefits from a diversification of a large number of predominantly small to medium sized business borrowers. The pool contains a wide range of vendors supplying predominantly office and business critical equipment, some of which are managed service products (9.9% of the pool) Key Rating Drivers The 'AAAsf' Long-Term rating with Stable Outlook of the Class A notes are based on the quality of the collateral; the 27.5% credit enhancement provided by the subordinate Class B, C, D, E and F notes; a liquidity reserve account of 2% of outstanding rated notes, funded by issue proceeds; the interest rate swap provided by Westpac Banking Corporation (WBC, 'AA-'/Stable/'F1+'); the collections reserve account that will be funded by Flexi at closing; and the underwriting and servicing capabilities of Flexi. The ratings on the Class B, C, D and E notes are based on all the strengths supporting the Class A notes except their credit enhancement levels. The rating of the Class C, D, and E notes is dependent on excess spread to support their respective rating levels. Rating Sensitivities Fitch's stress and rating sensitivity analysis is discussed in the corresponding presale report entitled "Flexi ABS Trust 2013-1", published today, now available on www.fitchratings.com or by clicking on the above link. Included in a corresponding appendix is a description of the representations, warranties and enforcement mechanisms. LIQUID VISION: SV Partners Appointed as Administrators ------------------------------------------------------ Cara Waters at SmartCompany reports that administrators have been appointed to Liquid Vision Plumbing and the Melbourne plumbing business has stopped trading. Richard Cauchi -- richard.cauchi@svp.com.au -- of SV Partners was appointed as administrator last week to the business, which had around 10-20 employees, says the report. Liquid Vision had worked on several large-scale projects throughout Australia, including 67 apartments in the Little Hero complex in Melbourne's Russell Place and 200 apartments and retailers in The Nicholson development in East Coburg, SmartCompany discloses. Mr. Cauchi told SmartCompany it was unclear at this stage what had caused Liquid Vision to collapse, but said he is currently working on a lot of administrations. "They are flying through a million miles an hour at the moment, the economy is not all that you should believe it to be," the report quotes Mr. Cauchi as saying. "The economy is not performing right across the industry base, niche businesses are going alright but generally the economy is at a stagnant time." SmartCompany relates that Mr. Cauchi said Liquid Vision had a turnover last year of around AUD4 million and it is still unclear how much is owing to creditors, which include one of Liquid Vision's directors and quite a few suppliers. A first meeting of creditors was held on June 14, but Mr. Cauchi said more information will be available at the second creditors' meeting, the report says. LISA HO: Fire Sales Begin as Administrators Fail to Find Buyer -------------------------------------------------------------- The Australian reports that administrators have failed to sell designer Lisa Ho's business as a going concern, leaving the Lisa Ho Group to be picked apart and its shops to launch fire sales. According to the report, administrators Barry Taylor and Todd Gammel of HLB Mann Judd said in a statement there had been considerable interest in the business, which went into voluntary administration on May 8 with debts of nearly AUD11 million, but that they had not been able to finalise a sale. "Discussions are continuing with a number of interested parties in relation to the purchase of intellectual property, stock and other assets of the Lisa Ho Group," the administrators said in a statement, adding that they would not focus on closing the remaining Lisa Ho stores, reports The Australian. The Australian relates that the administrators announced an immediate final sale on current season designs, classic evening and bridal dresses at the Lisa Ho stores in the Strand Arcade and at David Jones Elizabeth Street in Sydney, at Chadstone and at David Jones Bourke Street in Melbourne, in the Wintergarden in Brisbane and at www.lisaho.com. The report discloses that Ms. Ho had attempted to float the company on the NSX as recently as February with plans to turn the Australian brand into an "international icon" but was revealed as in need of capital and the IPO was pulled. A group of backers later dropped plans to invest, putting the group in financial dire straits, the report adds. Administrators HLB Mann Judd were appointed as administrators to iconic Australian fashion brand Lisa Ho earlier in May. SmartCompany said Lisa Ho recorded AUD13.05 million in revenue in 2012 but made a loss of AUD2.3 million, which the business attributed to "one-off issues". This led to the appointment of administrators to Lisa Ho Designs and Lisa Ho Retail. The Lisa Ho chain comprises 10 flagship stores in Australia, two clearance stores and an online store. ========= I N D I A ========= AEON MEDICAL: ICRA Reaffirms 'BB' Ratings on INR11.5cr Loans ------------------------------------------------------------ ICRA has reaffirmed '[ICRA]BB' rating outstanding for the INR11.50 crore bank facilities of Aeon Medical Private Limited. The outlook on the long-term rating is retained as "Stable". Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Facilities 6.50 [ICRA]BB (Stable) reaffirmed Bank Guarantee 5.00 [ICRA]BB (Stable) reaffirmed The ratings takes into account AMPL's presence in the premium life support vehicle segment of the Indian ambulance market, the pan India presence of the company with sales offices at various metro cities and a healthy customer profile comprising of public health departments of various state governments and private hospitals. The rating continues to factor in the long experience of the promoters in medical equipment supplies industry. ICRA has also taken note of the anticipated future regulations in ambulance industry that may enhance the growth prospects of the company, while deciding on the rating action. Further, ICRA has also considered the large orders from Ashok Leyland Limited and Bharat Vikas Group, which would help AMPL enhance its current small scale of operations. However, ICRA noted that these orders will be catered through capacity enhancement of the plant, majorly funded through bank loans. The increased debt on the consolidated balance sheet of the AMPL (including its subsidiary) is expected to increase the pressure on the group's credit profile in short term. Additionally, ICRA also noted that dependence on foreign imports will continue to make profit margins vulnerable to forex fluctuations. Going forward, AMPL's ability to increase its scale of operations and maintain its profit margins, manage its working capital intensity and credit profile would remain the key rating sensitivities. Aeon Medical Private Limited was incorporated in 2005. The company is a healthcare integrator and assembles high-end ambulances (Life Support Vehicles) by installing advance life support systems in basic ambulances. The company has an impressive client list which includes both public and private hospitals across India. The primary customers include Apollo Group of Hospitals, Max Group of Hospitals and public health departments of various state governments such as Kerala and Gujarat. It has also catered to fulfill the needs of Corporate such as Cipla Limited and Steel Authority of India Limited. The company currently has an assembling unit located in Pithampur, Madhya Pradesh. Further, it has sales offices at Delhi, Kolkata, Bhubaneswar, Thiruvananthapuram & Hyderabad. All promoters have years of experience in healthcare industry in India prior to starting the company. The CEO, Mr. Abani Tripathy has worked in healthcare sector for many years before starting AMPL. The managing director, Mr. Rabindra Narayan Senapati owns and heads Odisha's largest medical equipment and surgical business house. Mr. Ranjan Roy has worked in the Indian healthcare industry for 15 years before joining AMPL. Dr. Siddhanta Kar is a physician by profession and operates a hospital in Bhubaneswar. Recent Results In 9m, 2012-13, VRL reported Net Sales of INR12.7 Crore, Profit before Depreciation, Interest and Tax (PBDIT) of INR1.6 Crore and Profit after Tax (PAT) of INR0.6 Crore. BRIJ GOPAL: ICRA Assigns 'BB+' Ratings to INR200cr Loans -------------------------------------------------------- ICRA has assigned the long term rating of '[ICRA]BB+' to INR200.0 crore fund based and non-fund based bank facilities of Brij Gopal Construction Company (P) Ltd. The outlook on the long term rating is Stable. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term: Fund 50.00 [ICRA] BB+(Stable)/assigned Based Limits Long Term: Non 150.00 [ICRA] BB+(Stable)/assigned Fund Based Limits The assigned rating favorably factor in demonstrated track record of promoters in the infrastructure development (mainly roads, water and sewerage systems) space and established liasioning relationship of the promoters with the key government departments in Haryana and UP which has supported order-book and thereby steady revenue growth of the company. While BGCCPL has witnessed healthy revenue growth in the past, the same has not been supported by a commensurate growth in operating profits primarily owing to sub-contracting nature of work undertaken by BGCCPL in the past which limited the operating profit margin for the company. However, BGCCPL's sustained efforts at improving its qualification criteria by enhancing fixed asset base (investment in construction equipment) to improve operational capabilities securing of projects directly from the principal contract awarding party may support margin expansion going forward. Though the pending order book as on March 31, 2013 which is equivalent to 1.6 times the FY 2012-13 revenues is adequate and provides revenue visibility over the medium term, it is concentrated on three orders from the same customer (HUDA) in a single state (Haryana). ICRA notes that any slow-down in execution of these orders due to unforeseen events will have a pronounced impact on revenue growth of the company. This said, BGCCPL's efforts to diversify the current order-book may partly alleviate this risk going forward. The assigned rating is also constrained by the elongating working capital cycle due to stretching of receivable collection which along with strong revenue growth has increased the working capital requirement. As the accruals are modest due to weak profitability, this has increased reliance on debt to fund the growth. While the delay in the disbursement of the sanctioned limits had stretched the liquidity of the company in FY 2012-13, however with the disbursal of the limits now, the liquidity is expected to improve but will be subject to containing the overall working capital requirements within sanctioned limits. The rating also takes into consideration the fact that though the debt levels in relation to the net-worth of the company remains comfortable, resulting in comfortable capitalization for the company, however a majority of the net worth (~56% as on 31st March 2013) is blocked in investments in group companies. BGCCPL had invested nearly INR125.00 crore in solar power project in Brij Gas & Power Pvt Ltd in FY2011, a project which did not take off; subsequently BGCCPL has partly monetized the said investment and deployed the proceeds partly to support working capital requirements of the company and partly to further invest in group companies. The ratings take into account the level of investments and unsecured loans already extended by the company and note that timely release of the funding support given by BGCCPL in the form of unsecured loans and timely monetization of investments will be imperative to support BGCCPL's own working capital and fresh margin money requirements to support the growth of business. Going forward, BGCCPL's ability to sustain revenue growth by securing additional orders, improve its operating profitability, prudently reduce its working capital cycle and timely monetize its advances (investments / unsecured loans) to group companies to support business operations will be key rating sensitivities. BGCCPL had invested nearly INR125.00 crore in solar power project in Brij Gas & Power Pvt Ltd in FY2011, a project which did not take off; subsequently BGCCPL has partly monetized the said investment and deployed the proceeds partly to support working capital requirements of the company and partly to further invest in group companies. The ratings take into account the level of investments and unsecured loans already extended by the company and note that timely release of the funding support given by BGCCPL in the form of unsecured loans and timely monetization of investments will be imperative to support BGCCPL's own working capital and fresh margin money requirements to support the growth of business. Going forward, BGCCPL's ability to sustain revenue growth by securing additional orders, improve its operating profitability, prudently reduce its working capital cycle and timely monetize its advances (investments / unsecured loans) to group companies to support business operations will be key rating sensitivities. Established in 1999 as a partnership firm namely Brij Gopal Construction Company (BGCC), Brij Gopal Construction Company (P) Limited (BGCCPL) was incorporated on April 01, 2009 as a private limited company to undertake civil construction work relating to infrastructure development in sectors like roads, highways, water and sewerage and storm water drainage work. The company was promoted by Mr. Ram Goyal and his three sons -- Mr. Vikram Goyal, Mr. Rajan Goyal and Mr. Raman Goyal. While Mr. Ram Goyal is the Chairman of the company and has more than 40 years of experience in the construction industry, the day-to-day affairs of the company are handled by his sons. The company is a closely held company with the entire shareholding with the promoters and their associates either in individual capacity or through holding company. DAYARAM CHEMICALS: ICRA Rates INR10cr Cash Credit at '[ICRA]B+' --------------------------------------------------------------- The rating of '[ICRA]B+' has been assigned to the INR10.00 Crore fund based long-term facility of Dayaram Chemicals Pvt. Ltd. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit (Proposed) 10.00 [ICRA]B+ assigned The assigned rating is constrained by DCPL's weak financial profile as characterized by low profits and cash accruals, high gearing levels and weak coverage indicators. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers and vulnerability of profitability to adverse fluctuations in prices of various traded chemicals majority of which are crude derivatives. However, the rating favorably factors in the long track record of the promoters in the chemical trading business; large trading portfolio comprising of organic chemicals and favorable location of the company in Ankleshwar leading to proximity to various end users. The rating also factors in DCPL's well established relationships with customers and suppliers. Dayaram Chemicals Private Limited (DCPL) was incorporated in 1992 as a proprietorship firm by Mr. Magan Badhani and later on was converted into a private limited company in 2006. The company is engaged in the business of trading chemicals and solvents and has its corporate office and warehouse located in Ankleshwar. Some of the main products traded by DCPL include toluene, dichloromethane, ethyl acetate, acetone, di ethylene glycol and isopropyl alcohol; which find application in pharmaceutical, textiles, paints and lubricants industry. GOYAL DEVELOPERS: ICRA Rates INR6.50cr LT Loan at '[ICRA]B+' ------------------------------------------------------------ ICRA has assigned the '[ICRA]B+' rating to INR6.50 crore long term bank facility of Goyal Developers. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term- 6.50 [ICRA]B+(assigned) Cash Credit The rating favorably factors in long standing experience of promoters in real estate development and presence of escrow mechanism for routing the booking advances and expenses. The rating is however constrained by execution risk associated with the project as it is in nascent stage; high dependence on customer advances and bank debt and high geographic concentration with majority of the projects executed by group located in and around Pune. Established in 2010, Goyal Developers is developing a residential real estate project 'My Home (MH-14) on Talegaon-Chakan Road in Talegaon, Pune. The firm is a part of Goyal Properties. The group is promoted by Mr. Rajendra Goyal having 25 years working experience in real estate development. GULMOHAR PARK: ICRA Reaffirms 'BB+' Rating on INR55cr Term Loan --------------------------------------------------------------- ICRA has re-affirmed the '[ICRA]BB+' rating to the INR55 crore fund based limits of Gulmohar Park Mall Pvt. Ltd. (erstwhile Navratna SG Highway Properties Private Limited). The long term rating has been assigned a stable outlook. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan 55 [ICRA]BB+ (Stable) Re-affirmed The rating reaffirmation favorably factors in GPMPL's improving operating profitability levels aided by increasing occupancy levels and strong mix of brands at the Gulmohar Park mall; the continuing focus on mall management, due to presence of experienced promoters as key stakeholders, which acts as a key differentiator compared to competing malls in the vicinity; attractive location of the property in Ahmedabad; absence of construction risks and no additional capex plans in the company. The rating is however, constrained by the inadequacy of Monthly Minimum Guarantee (MMG)-based lease rentals in servicing monthly debt servicing obligations; exposure to client concentration risks with the top two retailers occupying ~20% of the leasable area; high proportion of area (~17%) leased on pure-revenue sharing basis, and GPMPL's single-asset nature of operations. Further, the rated loan being a Lease Rental Discounting (LRD) loan availed by securitizing lease rentals receivable from retailers occupying the property, any delays in timely remittance of monthly lease rentals from lessees could adversely impact GPMPL's ability to service its debt repayment obligations in a timely manner. GPMPL is a Joint Venture between Kshitij Venture Capital Fund and Navratna Organizers and Developers Pvt. Ltd. whose shareholdings in the company are 90% and 10% respectively. GPMPL owns and operates the Gulmohar Park Mall at Sarkhej-Gandhinagar Highway, Ahmedabad. The name of the company has been changed to Gulmohar Park Mall Pvt. Ltd. from Navratna SG Highway Properties Pvt. Ltd. on May 29, 2012. The Gulmohar Park mall is located on the Sarkhej-Gandhinagar Highway at Satellite Road in Ahmedabad, ~17-19 km. from the airport and 11-12 km. from the railway station. The total leasable area of the mall is 2,22,236 sqft. The property is a standalone mall which is being operated on a 100% lease model. Construction of the mall began in June 2006 and the mall commenced operations in October '08. IL&FS ENG'G: Court Admits Winding Up Plea Against Firm ------------------------------------------------------ The Hindu Business Line reports that Justice Seshasayana Reddy of Andhra Pradesh High court on Monday admitted a company petition seeking winding up of IL&FS Engineering and Construction Co. Limited. The company petition was filed by Vaartha Power Company Limited contending that INR50 crore was due and money is not being paid by Maytas. Justice Seshasayana Reddy rejected the Maytas plea that it cannot repay the amount. The court said that the final notification of winding up will be published in newspaper if INR50 crore is not deposited within 3 months. IL&FS Engineering and Construction Company Limited, formerly known as Maytas Infra Limited, is engaged in infrastructure development, construction and project management. INDIAN STEEL: ICRA Cuts Ratings on INR684.92cr Loans to 'BB' ------------------------------------------------------------ ICRA has revised the rating assigned to INR454.92 crore term loans (earlier INR588.0 crore) and INR230.00 crore (earlier INR185.0 crore) fund based limits of Indian Steel Corporation Limited from '[ICRA]BB+' to '[ICRA]BB'. The outlook on the long term rating is stable. ICRA has also revised the rating assigned to INR1900.00 crore (earlier INR1720.00 crore) non-fund based limits of ISCL from '[ICRA]A4+' to '[ICRA]A4'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term loan 454.92 Revised to [ICRA]BB(Stable) Fund-based Limits 230.00 Revised to [ICRA]BB(Stable) Non-Fund-based Limits 1,900.00 Revised to [ICRA]A4 The rating revision takes into account the pressure on liquidity profile of the company driven by weakening in its profitability, delayed stabilisation of the enhanced capacities, and increased working capital requirements resulting in increased borrowings (including buyer's credit) and hence high gearing which coupled with weak profitability has resulted in deterioration in its debt protection metrics. The stretched liquidity profile of the company has resulted in company opting for debt restructuring; however the same has resulted in improved debt maturity profile with deferment of ISCL's scheduled repayment obligations and reduction in repayment burden in the near term. The rating also factors in the risks arising out of uncertainty in the economic environment which affects off take and pricing; its relatively low margins in the business, given the highly competitive nature of the industry, and vulnerability of its margins to volatility in foreign exchange rates, interest rates and raw material prices. ICRA however notes that the company has strong risk management systems which partly mitigate risks arising out of volatility in raw material prices and forex rates while diversification into value added products may result in an improvement in margins going forward. Further the expected increase in proportion of manufacturing sales in the total sales of the company is likely to help improve profitability going forward. The ratings also continue to draw comfort from ISCL's experienced management, its extensive distribution network, scale benefits arising out of enhanced capacities, its advantage of being located near Kandla port and equity stake of Mitsui and Company Limited, Japan which besides management support also provides technical assistance to ISCL. Indian Steel Corporation Limited is jointly promoted by Ruchi Group of Industries, India and Mitsui & Company, Japan in the year 2004. The company is involved in manufacturing of Cold Rolled (CR) coils & sheets and Galvanised Plain (GP) and Galvanised Corrugated (GC) sheets. The company has set up its manufacturing facilities at village Bhimasar near Kandla port, Gandhidham in the State of Gujarat, in close proximity to Mundra port. Ruchi Group of Industries is a reputed industrial conglomerate in India with interests in businesses ranging from steel to food products. The Group is actively involved in soya processing, edible oils, dairy products, cold rolled sheets and coils, galvanized sheets and coils and a host of other activities. Mitsui & Co. Limited is one of the largest industrial conglomerates in Japan and has variety of business interests such as Metal products and Minerals, Machinery, Electronics, Chemical, Energy, Consumer Products and Services, Logistics and Financial Markets. Mitsui & Co. has presence in 67 countries through their 151 offices. MULCHAND FIBER: ICRA Assigns 'B' Ratings to INR13cr Loans --------------------------------------------------------- ICRA has assigned the '[ICRA]B' rating to INR13.00 crore long term bank facilities of Mulchand Fiber Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term, Fund based 8.92 [ICRA]B (assigned) Limits-Term Loan Long Term, Fund based 4.00 [ICRA]B (assigned) Limits-Cash Credit Long Term, Fund based 0.08 [ICRA]B (assigned) Limits-Unallocated The assigned rating favorably consider the longstanding experience of promoters in the cotton trading and ginning business; easy access to raw cotton owing to company's presence in cotton belt of Maharashtra. The rating is however constrained by deferment in project and debt funded capital expenditure which likely to stretched Company's capital structure over the near to medium term, though company has interest as well as principal moratorium till Dec'13. The company deferred the project in order to avail incentives announced under recent Maharashtra Government Industrial Policy. Going forward, timely commence of project within stipulated cost will be a key rating sensitivity. Incorporated in 2012, MFPL is a project company. The Company has been incorporated to set up an integrated project of Cotton Ginning & Pressing mill with capacity of 160 bales per day production. Mr. Ashok Agrawal and Mrs. Chhaya Agrawal are the directors of MFPL. Presently Mr. Ashok Agrawal is heading Cotton Ginning & Pressing Association, Jalna as President. The Company is promoted by Mulchand Phulchand Krishi Udyog Private Limited which is a holding company having 51% equity stake in MFPL. PETRO CHEM: ICRA Assigns 'B+' Rating to INR5cr Cash Credit ---------------------------------------------------------- The rating of '[ICRA]B+' has been assigned to the INR5.00 Crore fund based long-term facility of Petro Chem Industries. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit (Proposed) 5.00 [ICRA]B+ assigned The assigned rating is constrained by PI's small scale of operation and weak financial profile as characterized by low profits, low cash accruals and high gearing levels. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers and vulnerability of profitability to adverse fluctuations in prices of various traded chemicals majority of which are crude derivatives. While assigning the ratings ICRA has also considered the risks associated with proprietorship form of business in terms of continuity, capital infusions and withdrawals However, the rating favorably factors in the long track record of the promoters in the chemical trading business; trading portfolio comprising of licensed chemicals and favorable location of the firm in Ankleshwar leading to proximity to various end users. The rating also factors in DCPL's well established relationships with customers and suppliers. Petro Chem Industries was incorporated in 2000 as a proprietorship firm by Mr. Hasmukh Badhani. The firm is engaged in the business of trading chemicals and solvents for which regulatory approvals regarding the storage of such products are required and has its corporate office and warehouse located in Ankleshwar. Some of the main products traded by DCPL include Hexane, Methanol, Formic acid and Acetic acid toluene which find application in pharmaceutical, textiles, paints and lubricants industry. PRAHLADRAI & CO: ICRA Assigns 'D' Rating to INR2.95cr Loan ---------------------------------------------------------- ICRA has assigned a long-term rating for the INR1.45crore fund term loan of Prahladrai & Co. at '[ICRA]D'. In addition, ICRA has outstanding rating of '[ICRA]D' on INR3.5 Crores fund based limits and INR1.5 Crores term loan of PRC. ICRA has also withdrawn the short-term rating of '[ICRA]D' outstanding on INR0.75 crores non- fund based limits of PRC as there is no amount outstanding against the rated instrument. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan 2.95 [ICRA]D assigned Fund Based Limits 3.50 [ICRA]D outstanding Non-Fund Based Limits 0.75 [ICRA]D withdrawn The long-term rating reaffirmation factors in the continued delays in repayment of firm's debt obligations due to delayed payments by its clients. While assigning the rating, ICRA also notes PRC's high overall dependence on external debt, its modest debt coverage indicators and PRC's constitution as a partnership firm. Prahladrai and Co., partnership firm promoted by Mr. Kailash Sharma, is engaged primarily in fly ash transportation business for Birla Corporation's units in Chittorgarh(Rajasthan) since 1975. RAJ COKE: ICRA Assigns 'D' Ratings to INR6.93cr Loans ----------------------------------------------------- ICRA has assigned '[ICRA]D' rating to the INR6.50 crore fund based working capital limits and INR0.43 crore non-fund based bank facilities of Raj Coke Industries. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 6.50 [ICRA]D assigned Non-fund Based Limits 0.43 [ICRA]D assigned The rating primarily takes into account the very high working capital intensity characterised by high debtor days as well as pending transport subsidy claims, leading to a stretched liquidity position as reflected by continuous overdrawals in the cash credit account. ICRA further notes that the transport subsidy benefits would expire from June 2014, which is likely to negatively impact the operating profitability of the firm. The rating also takes note of the risks associated with the status of the entity being a partnership firm and its exposure to the volatility in the prices of coal and coke owing to non-integrated nature of operations of the firm. While assigning the rating, ICRA has taken note of the experience of the promoters in the manufacturing of LAM coke and the comfortable capital structure of the firm, however low cash generation leads to negative fund flow from operations. RCI is primarily engaged in the manufacturing of Low ash metallurgical (LAM) coke with its manufacturing facilities situated at Guwahati, Assam. The installed capacity of the plant is 57,240 tons per annum (tpa). Recent Results As per provisional numbers, RCI registered a PAT of INR15.87 crore on the back of operating income of INR35.24 crore in FY13. In FY12, the firm registered a PAT of INR15.68 crore on the back of operating income of INR35.21crore. SETHI COKE: ICRA Assigns '[ICRA]D' Ratings to INR6.88cr Loans ------------------------------------------------------------- ICRA has assigned '[ICRA]D' rating to the INR6.50 crore fund based working capital limits and INR0.38 crore non-fund based bank facilities of Sethi Coke Industries. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 6.50 [ICRA]D assigned Non-fund Based Limits 0.38 [ICRA]D assigned The rating primarily takes into account the very high working capital intensity characterised by high debtor days as well as pending transport subsidy claims, leading to a stretched liquidity position as reflected by continuous overdrawals in the cash credit account. ICRA further notes that the transport subsidy benefits would expire from October 2014, which is likely to negatively impact the operating profitability of the firm. The rating also takes note of the risks associated with the status of the entity being a partnership firm and its exposure to the volatility in the prices of coal and coke owing to non-integrated nature of operations of the firm. While assigning the rating, ICRA has taken note of the experience of the promoters in the manufacturing of LAM coke and the comfortable capital structure of the firm, however low cash generation leads to negative fund flow from operations. SCI is primarily engaged in the manufacturing of Low ash metallurgical (LAM) coke with its manufacturing facilities situated at Guwahati, Assam. The installed capacity of the plant is 57,024 tons per annum (tpa). Recent Results As per provisional numbers, SCI registered a PAT of INR14.99 crore on the back of operating income of INR35.25 crore in FY13. In FY12, the firm registered a PAT of INR15.90 crore on the back of operating income of INR35.14 crore. SHIVAM COTTON: ICRA Rates INR13cr Cash Credit at 'B' ---------------------------------------------------- The rating of '[ICRA]B' has been assigned to the INR13.00 crore long-term fund based facilities of Shivam Cotton Industries. The assigned rating is constrained by the weak financial profile as evident from highly leveraged capital structure, weak debt coverage indicators and low profitability. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers and vulnerability of profitability to any adverse fluctuations in the raw material prices, which are also subject to seasonality, crop harvest and regulatory risks. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 13.00 [ICRA]B assigned However, the ratings favorably factor in the long track record of the firm in the ginning industry; favorable raw material sourcing arrangement from farmers providing easy access and cost advantage. Shivam Cotton Industries was established in the year 1998 and is engaged in the business of ginning and pressing of raw cotton along with crushing of cotton seed to extract cotton seed oil and cotton seed cake. The firm's plant is located in Karjan with production capacity of 300 bales per day. Recent Results For the year ended on March 31, 2012, the firm reported an operating income of INR45.86 crore and profit after tax of INR0.12 crore as against an operating income of INR43.34 crore and profit after tax of INR0.15 crore for FY 2011. VIPUL ENTERPRISES: ICRA Places 'C+' Ratings on INR5.50cr Loans -------------------------------------------------------------- ICRA has assigned the long term rating of '[ICRA]C+' and short term rating of '[ICRA]A4' the INR7.50 crores bank facilities of Vipul Enterprises. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Fund Based- 3.00 [ICRA]C+ assigned Cash Credit Long Term Fund Based- 2.49 [ICRA]C+ assigned Term Loan Short Term Non Fund 1.00 [ICRA]A4 assigned Based-Bank Guarantee Short Term Non Fund 1.00 [ICRA]A4 assigned Based-Letter Of Credit Long Term Non Fund 0.01 [ICRA]C+ assigned Based Unallocated The assigned rating is constrained by Vipul's limited track record in manufacturing solar panels and exposure to the project risk associated with ongoing capital expenditure. Rating also takes into account Vipul's small scale of operation and intense pricing pressures prevailing across the solar upstream value chain due to global supply glut which is expected to continue in the short to medium term. The rating however, favorably takes into account the long standing experience of promoters in running business and their strong relationships with several customers and suppliers. Vipul Enterprises has been set up by Mr. Vipul Arora to supply solar PV products in off grid space including home lighting systems. The company has already installed 117kw of the solar PV power plants for Central Electronics Limited and is in the process of obtaining more orders. The company has set up 25Mw of the solar panel manufacturing facility in Kalaamb Himachal Pradesh which is expected to be operational from May 2013. The promoters have another group company Swatex Excel Private Limited which is engaged in the consultancy business in the irrigation sector. Recent Results: Vipul reported a net profit of INR0.04 crores on an operating income of INR0.92 crores for the year ended March 31, 2012 and a net loss of INR0.02 crores on an operating income of INR0.01 crores for the year ended March 31, 2011. ========= J A P A N ========= TOKYO ELECTRIC: Execs Voiced Staff Exodus Concerns, Minutes Show ---------------------------------------------------------------- Tokyo Electric Power Co. executives spent dozens of meetings fretting about the company's future as hundreds of younger employees quit over salary cuts after Fukushima, according to minutes obtained by Bloomberg News. "The company could quickly deteriorate" as workers leave at "a rapidly accelerating rate," Bloomberg quotes an unidentified executive as saying at an Oct. 4 meeting last year of the government-backed fund designed to bail out the utility. Tepco, as it's known, faces an estimated JPY11 trillion ($116 billion) in cleanup costs from the wrecked Fukushima Dai-Ichi plant, Bloomberg notes. The comments are in redacted proceedings of 23 meetings of the fund's steering committee held from Oct. 3, 2011, to April 8, 2013, obtained through a freedom of information request, says Bloomberg. Almost 1,200 employees voluntarily resigned in the two years ended in March this year, Tepco Managing Executive Officer Mamoru Muramatsu said in an April 8 meeting, according to the minutes cited by Bloomberg. Turnover among employees under 30 accounted for about half of all voluntary departures, President Naomi Hirose said at a Nov. 12 meeting, Bloomberg reports. "The biggest reason is money," Ms. Hirose said, according to the minutes. "It's difficult for us to stop them when they say they have loans and have to take care of kids and so on." The notes offer the first full view of the committee's operations and talks among senior officials involved in the Tokyo-based utility's revival following the Fukushima earthquake and tsunami in March 2011. The workings of the committee are contained in 227 pages, parts of which mask most attendees' names and agenda items deemed too sensitive to be made public, according to a letter from the fund provided to Bloomberg as part of the request. The utility cut annual salaries by 25 percent for managers and 20 percent for workers under its turnaround plan released in May last year. The average annual salary of Tepco employees over the three years ending March 2015 will be reduced to JPY5.9 million, the utility said in a July 25 statement. About Tokyo Electric Tokyo Electric Power Company is the largest electric power company in Japan and the largest privately owned electric utility in the world. TEPCO supplies electricity to meet the increasingly diversified and sophisticated demands of its over 28.09 million customers in the metropolitan Tokyo, which is the political, economic, and cultural center of Japan, and eight surrounding prefectures. Bloomberg News said the utility is battling radiation leaks at the Fukushima Dai-Ichi power plant north of Tokyo after a March 11 earthquake and tsunami knocked out its cooling systems, causing the biggest atomic accident in 25 years. More than 50,000 households were forced to evacuate and Bank of America Corp.'s Merrill Lynch estimates TEPCO may face compensation claims of as much as JPY11 trillion (US$135 billion). As reported in the Troubled Company Reporter-Asia Pacific on May 11, 2012, Bloomberg News said Japan's government took control of Tepco and agreed to provide JPY1 trillion (US$12.5 billion) as part of the nation's largest bailout since the rescue of the banking industry in the 1990s. Bloomberg related that the government will obtain more than 50% of the voting rights in the utility under a 10-year plan approved on May 8 by Trade and Industry Minister Yukio Edano. The government stake may rise to two-thirds if TEPCO fails to meet goals that include cost cuts and compensation payments, said Bloomberg. Under the plan, Bloomberg disclosed, the utility aims for an unconsolidated profit of JPY106.7 billion in the year ending March 2014, based on an electricity rate increase and the restart of the Kashiwazaki Kariwa nuclear station. Bloomberg says nationalization of TEPCO paves the way for the government to restructure the electricity industry monopolized by regional utilities and possibly break up power generation and transmission networks to allow more competition. ==================== S O U T H K O R E A ==================== GS ENGINEERING: Faces Probe on Alleged Accounting Fraud ------------------------------------------------------- Kim Rahn at The Korea Times reports that the Financial Supervisory Service (FSS) is considering launching a probe into GS Engineering and Construction over suspicions of it manipulating its accounts, officials said Sunday. The report relates that the Solidarity for Economic Reform, a civic group, asked the regulator to conduct a special inspection into South Korea's fourth-largest builder last month. If the allegations are confirmed, the FSS may ban the company from issuing new bonds or stock certificates and recommend the dismissal of its chief, according to The Korea Times. The company's CEO Huh Myung-soo already resigned on June 12. He is the younger brother of Huh Chang-soo, GS Group chairman and largest shareholder of the construction arm. According to the report, FSS officials said they are reviewing the case. "We will decide whether to investigate the firm after looking into more details about the case," an official said. They are currently examining the firm's financial documents to ascertain the veracity of the allegations, the report notes. In April, the company said it recorded KRW535.4 billion in operating losses in the first quarter of the year. Its total sales amounted to KRW1.8 trillion, 13.4 percent down from the same period last year, and resulting in KRW386 billion in net losses, The Korea Times discloses. The report relates that the company also said the huge deficit resulted from the increased cost of overseas plant construction projects, accounting for its increased operational costs in the first quarter. However, the civic group said the company was aware of the rise last year but did not calculate it at that time, the report relays. "It is suspected that the delayed inclusion of the loss was in violation of accounting regulations," the group said in a press release obtained by The Korea Times. Based in Seoul, South Korea, GS Engineering & Construction Corporation operates as an engineering, procurement, and construction contractor. The company offers services primarily in the areas of plants, power and environment, civil engineering, housing, architecture, and development. STX GROUP: Pan Ocean Falls as Receivership Filing Accepted ---------------------------------------------------------- Kyunghee Park at Bloomberg News reports that STX Pan Ocean Co. slumped to the lowest level in Seoul trading since its listing after a court accepted its application to seek protection. Bloomberg relates that Pan Ocean fell by its daily 15 percent limit to KRW2,185, the lowest price since September 2007, when it debuted on the Korea Exchange. The report says trading in the shares had been halted since June 6, and the company filed for court receivership the next day. The stock was the worst performer on the benchmark Kospi index on June 17. "This is only the start of more pain for Pan Ocean and other units of STX Group," Bloomberg quotes Cho Byoung Hee, an analyst at Kiwoom Securities Co. in Seoul, as saying. "The court's acceptance will mean investors will see their equity written down and creditors will swap debt for equity as part of the restructuring plan." STX Pan Ocean sought court receivership after Korea Development Bank, the main creditor and Pan Ocean's second-biggest shareholder, decided against buying the company from STX Group, Bloomberg reports. STX Group -- with businesses ranging from shipbuilding to components that go into vessels -- is the largest shareholder of Seoul-based Pan Ocean. The parent has been trying to raise KRW2.5 trillion (US$2.2 billion) by selling stakes in units as a slump in bulk shipping rates caused ship orders to tumble. STX Offshore and two other units of the STX Group had voluntarily sought debt rescheduling with their creditors, Bloomberg notes. =============== 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 ***