/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130716.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 Tuesday, July 16, 2013, Vol. 16, No. 139 Headlines A U S T R A L I A FLEXI ABS: Fitch Upgrades Rating on Class E Notes to 'BB+' C H I N A LDK SOLAR: Shareholders Re-Elect Four Directors YUZHOU PROPERTIES: RMB1.3-Bil. Land Purchase No Impact on Ratings I N D I A A ONE CERAMICS: ICRA Assigns 'B+' Ratings to INR5.05cr Loans ASHA INDUSTRIES: ICRA Assigns 'B-' Ratings to INR9.7cr Loans ASHOKA DYEING: ICRA Assigns 'B+' Ratings to INR11.29cr Loans BNR EGG: ICRA Assigns 'B-' Ratings to INR7.50cr Loans D.S. CONTRACTORS: ICRA Lowers Ratings on INR13cr Loans to 'D' ESKAY HEAT: ICRA Assigns 'B+' Ratings to INR11.26cr Loans HAMSA MINERALS: ICRA Reaffirms 'B+' Rating on INR3.5cr Loans J.R.M. FOODS: ICRA Assigns 'B+' Rating to INR21cr Loans MAHAKALI MOTORS: ICRA Rates INR10cr Fund Based Loan at 'B+' MITHILANCHAL INDUSTRIES: ICRA Puts 'B' Ratings on INR7.81cr Loans RAGHU RAMA: ICRA Assigns 'B' Ratings to INR16cr Loans SHREE NAKODA: ICRA Rates INR1cr Fund Based Loans at 'B' SRI AUROBINDO: ICRA Places 'B+' Ratings on INR11.5cr Loans SRI AYYAPPA: ICRA Reaffirms 'B+' Rating on INR15cr LT Loans SRI SHIVA: ICRA Assigns 'B+' Rating to INR7cr Fund Based Loans SRI VENKATESWARA: ICRA Reaffirms 'B' Rating on INR9cr LT Loan SPACETECH EQUIPMENTS: ICRA Rates INR1.75cr Loan at 'B' SVS FOOD: ICRA Assigns 'B' Rating to INR6.5cr Fund Based Loans U GOENKA: ICRA Rates INR1cr LT Cash Credit Loan at 'B' V CARE: ICRA Assigns 'B' Rating to INR0.59cr Term Loan VEEKAY SMELTERS: ICRA Rates INR7cr Fund Based Loans at 'B+' N E W Z E A L A N D MAINZEAL PROPERTY: Liquidators Claw Back NZ$23MM for Creditors RENAISSANCE CORP: Shuts Four of Nine "Yoobee" Stores TUIGAMALA AND SONS: In liquidation; Owes IRD NZ$80,000 P H I L I P P I N E S QUEZON TRADERS: Placed Under PDIC Receivership S O U T H K O R E A STX PAN OCEAN: Wins Ch. 15 Recognition From US Court X X X X X X X X * APAC Sovereigns See Testing Times, Fitch Says * BOND PRICING: For the Week July 8 to July 12, 2013 - - - - - ================= A U S T R A L I A ================= FLEXI ABS: Fitch Upgrades Rating on Class E Notes to 'BB+' ---------------------------------------------------------- Fitch Ratings has upgraded four classes of Flexi ABS Trust 2012-1 and affirmed one, as shown below. The transaction is a securitisation backed by small balance consumer loan receivables due October 2016. The notes were issued by Perpetual Corporate Trust Limited in its capacity as trustee of Flexi ABS Trust 2012- 1. AUD69.79m Class A2 notes (ISIN AU3FN0016218): affirmed at 'AAAsf'; Outlook Stable AUD20.06m Class B notes (ISIN AU3FN0016226): upgraded to 'AAAsf' from 'AAsf'; Outlook Stable AUD8.2m Class C notes (ISIN AU3FN0016234): upgraded to 'AAsf' from 'Asf'; Outlook Stable AUD4.56m Class D notes (ISIN AU3FN0016242): upgraded to 'BBB+sf' from 'BBBsf'; Outlook Stable AUD3.65m Class E notes (ISIN AU3FN0016259): upgraded to 'BB+sf' from 'BBsf'; Outlook Stable Class A1 notes were paid in full on Feb. 6, 2013 KEY RATING DRIVERS The transaction has performed better than Fitch's initial expectations since closing on Aug. 9, 2012. Total net losses have been well below Fitch's base case to date and excess spread has been more than sufficient to cover any losses experienced. As at May 31, 2013, the 30+days and 90+ day delinquency rates were 1.62% and 0.3% of the collateral pool. Cumulative losses since closing have been low, totalling AUD2.04 million, below Fitch's expected losses of AUD4.22 million. The weighted average remaining term and weighted average seasoning were both17 months, compared with 22 and seven months, respectively, at end-August 2012. As of May 2013, the liquidity reserve was AUD2.3m. The collateral pool consisted of 61,219 loans with a total portfolio balance of AUD113.05 million and an average contract balance of AUD1,847. RATING SENSITIVITIES The prospect for downgrades is considered remote at present given the current performance of the pool, as well as adequate excess spread and subordination. The consumer loans in the collateral pool are vulnerable to a drastic downturn in the Australian economy. Initial key rating drivers and rating sensitivity are described further in the New Issue report dated Aug. 9, 2012. ========= C H I N A ========= LDK SOLAR: Shareholders Re-Elect Four Directors ----------------------------------------------- LDK Solar Co., Ltd., held its annual general meeting on July 10, 2013, at the Company's office in Hong Kong, at which the shareholders approved: (a) the adoption of the 2012 annual report; (b) the adoption of the 2013 stock incentive plan; and (c) the re-election of directors, Peng Xiaofeng (chairman of the board), Liu Zhibin (non-executive director), Liu Xuezhi (non-executive director) and Liang Junwu (independent director). The total number of members of the board of directors of LDK Solar remains at 11. KPMG was re-appointed as LDK Solar's outside auditors for the fiscal year 2013. Shareholders did not approve the issue of warrants in connection with the settlement of an investor's holdings of LDK Solar's 4.75 percent convertible senior notes due April 2013. There were an aggregate of 79,264,399 shares represented in person or by proxy throughout the duration of the meeting, including shares underlying American depositary shares. About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi- Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. LDK Solar Co disclosed a net loss of $1.05 billion on $862.88 million of net sales for the year ended Dec. 31, 2012, as compared with a net loss of $608.95 million on $2.15 billion of net sales for the year ended Dec. 31, 2011. As of March 31, 2013, the Company had $4.99 billion in total assets, $5.29 billion in total liabilities, $356.60 million in redeemable non-controlling interests and a $660.58 million total deficit. KPMG, in Hong Kong, China, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Group has a net working capital deficit and a deficit in total equity as of Dec. 31, 2012, and is restricted from incurring additional indebtedness as it has not met a financial covenant ratio as defined in the indenture governing the RMB-denominated US$-settled senior notes. These conditions raise substantial doubt about the Group's ability to continue as a going concern. YUZHOU PROPERTIES: RMB1.3-Bil. Land Purchase No Impact on Ratings ----------------------------------------------------------------- Moody's Investors Service sees no immediate impact on Yuzhou Properties' B1 corporate family and B2 senior unsecured debt ratings and stable outlook following its Jiading land purchase of RMB1.3 billion. However, in Moody's view, Yuzhou's strategic shift -- from acquiring land in lower-tier cities to higher-tier cities -- could increase its implementation risk in the medium to long term. "While the land acquisition appears sizeable in total price and is at higher unit costs relative to Yuzhou's low-cost land strategy, it adds both quantity and quality to the company's land bank," says Lina Choi, a Moody's Vice President and Senior Analyst. "In addition, Yuzhou can finance the purchase with its operating cash flow and cash-on-hand. The company's contract sales totaled RMB5.7 billion for the first five months of the year, which is well ahead of our expectations, considering the full-year target of RMB7.5 billion," says Choi. While Moody's expects no material impact on Yuzhou's credit metrics from this transaction, the company's land acquisitions will be monitored closely. Yuzhou's strength is in low-cost land acquisition in lower-tier cities. But its most recent purchase demonstrates the management's strategy to pursue higher quality land pieces in tier 1 and 2 cities, where the company has relatively less operating experience and presence than in its core markets. Yuzhou's management attributes this strategy shift to its attempts to build a more balanced land bank portfolio. This is consistent with a trend that Moody's observed recently in the Chinese residential property market; some regional developers, having established market positions in certain locales in the past few years, feel constrained by an oversupply of land in tier 3 & 4 cities and structurally lower margins from the business model that focuses on lower land costs. In order to further expand its operating scale and raise profitability, these developers make strategic moves into tier 1 and 2 cities, where land costs are higher, but demand still outstrips supply significantly. While Moody's understands the strategic rationale behind this move, Yuzhou has yet to establish its brand in the higher tier cities, and there is also a concern about potential implementation risks that accompany such an expansion. The principal methodology used in this rating was Global Homebuilding Industry Methodology published in March 2009. Yuzhou Properties Company Limited is a Fujian-based developer that focuses on residential housing in Xiamen. It had a small land bank (with a legal title) of around 8.5 million square meters (sqm) in gross floor area (GFA) at end-May 2013. Of this land bank, 31% is in Xiamen; 24% in Hefei; 15% in Quanzhou; and the rest are in Bengbu, Shanghai, Tianjin, Fuzhou, Longyan and Zhangzhou. ========= I N D I A ========= A ONE CERAMICS: ICRA Assigns 'B+' Ratings to INR5.05cr Loans ------------------------------------------------------------ A rating of '[ICRA]B+' has been assigned to INR2.55 crore term loans and INR2.50 crore cash credit facility of A One Ceramics Private Limited. A rating of '[ICRA]A4' has also been assigned to INR0.85 crore short-term non-fund based facilities of A One Ceramics Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long term fund 2.55 [ICRA]B+ assigned based-Term Loans Long term fund based- 2.50 [ICRA]B+ assigned Cash Credit Short term non fund 0.85 [ICRA]A4 assigned based-Bank Guarantee The ratings assigned take into account AOCPL's small size of operations which along with the high competitive intensity is likely to exert pressure on margins. The ratings are also constrained by AOCPL's high financial risk profile as reflected by highly geared capital structure, moderate coverage indicators, and high working capital intensity of operations on account of long receivable days and high inventory holding period. ICRA also notes the dependence of operations and cash flows of the company on the performance of the real estate industry which is the main consumer sector, and vulnerability of profitability to increasing prices of gas and power. The ratings however have favorably considered the experience of the key promoters in the ceramic industry, diversified product profile with presence in digital tile printing segment, and location advantage enjoyed by AOCPL giving it easy access to raw material. A One Ceramic Private Limited is engaged in manufacturing of wall tiles with its plant situated at Morbi, Gujarat. The company was established in July 2009 while the operations commenced in January 2010. AOCPL is promoted by Mr. Sanjay Nayakpara along with other directors. The plant has an installed capacity of 21600 MTPA. It currently manufactures wall tiles of size 12"x18", 10"x13"and 12"x12" with the current set of machineries and production facilities. Recent Results In FY 2013 (based on provisional un-audited financials), AOCPL reported an operating income of INR14.78 crore (as against INR14.17 crore in FY 2012) and profit after tax of INR0.43 crore (as against INR0.18 crore in FY 2012). ASHA INDUSTRIES: ICRA Assigns 'B-' Ratings to INR9.7cr Loans ------------------------------------------------------------ The rating of '[ICRA]B-' has been assigned to the INR9.70 Crore fund based long-term facility of Asha Industries. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 6.75 [ICRA]B- assigned Term Loan 2.95 [ICRA]B- assigned The assigned rating is constrained by the weak financial profile of the firm as reflected in its low profitability margins, weak capital structure, modest debt coverage indicators, and tight liquidity position with almost 100% utilization of working capital facilities. The rating is further constrained by the highly competitive and fragmented industry structure owing to low entry barriers and vulnerability of profitability to raw material prices which are subject to seasonality, crop harvest and regulatory risks. While assigning the rating, ICRA has also considered the expected weakening of capital structure and coverage indicators of the firm over the near term on account of the recently completed debt funded capex and risks associated with the partnership form of business in terms of continuity, capital infusion and withdrawals. However, the rating favorably factors in the long track record of the firm in the cotton industry; revenue diversification due to the presence in PVC pipe manufacturing and favorable location of the firm's manufacturing facility in the cotton producing belt giving it an easy access to raw cotton and cotton seeds. Asha Industries was incorporated in the year 1995 and is involved in the business of ginning, pressing of raw cotton, crushing of cotton seed and manufacturing of PVC/UPVC pipes. The firm's plant is located in Morbi (Rajkot). Besides manufacturing, the firm is also engaged in trading of cotton seeds, oilcake, resin and PVC/UPVC pipes etc. ASHOKA DYEING: ICRA Assigns 'B+' Ratings to INR11.29cr Loans ------------------------------------------------------------ ICRA has assigned a long-term rating of '[ICRA]B+' to the INR11.29 crore bank limits of Ashoka Dyeing and Printing Mills Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Loan 6.34 [ICRA]B+ assigned Long Term Cash 4.95 [ICRA]B+ assigned Credit facility The rating is constrained by the company's small scale of operations and weak financial risk profile as reflected by modest profitability margins, high working capital intensity of operations, highly leveraged capital structure and weak debt protection metrics, owing to debt-funded nature of capex undertaken by the company. ICRA further notes that the company operates in a highly fragmented industry characterized by intense competitive pressures, and low barriers to entry, resulting in low profitability margins. The ratings are further constrained by vulnerability of the company's operations to the cyclicality inherent in the textile industry. The rating, however, favorably factors in the established track record of the promoters in the dyeing and printing industry, the company's diversified customer profile and limited exposure to raw material price fluctuations, owing to the job-work nature of its operations. The rating also takes into account the locational advantages available to the company by virtue of its proximity to raw material sources and end customers. Ashoka Dyeing and Printing Mills Private Limited was established in 1993 at Surat (Gujarat) and has since been involved in the dyeing and printing of greige fabric on a job work basis. The customers of the company supply the fabric, which is further processed, viz. dyed and/or printed at the company's facility at Pandesara, Surat. The fabric processed by ADPMPL finds application in designing sarees. The processing unit of the company is currently equipped with 9 printing machines and has an annual production capacity of ~2.50 crore metres of dyed and printed fabric. In FY 2013, ADPMPL reported a profit before tax (PBT) of INR0.61 crore on operating income of INR20.63 crore (provisional). In FY 2012, ADPMPL recorded a profit after tax (PAT) of INR0.31 crore on an operating income of INR17.05 crore. BNR EGG: ICRA Assigns 'B-' Ratings to INR7.50cr Loans ----------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B-' to INR7.12 crore fund based limits of BNR Egg Farms. ICRA has also assigned rating of '[ICRA]B-' to INR0.38 crore unallocated limits of BEF. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund based limits 7.12 [ICRA]B- assigned Unallocated limits 0.38 [ICRA]B- assigned The assigned rating is constrained by project execution risks in the form of time & cost overruns due to nascent stage of construction of godown and feed manufacturing plant; debt funded capital structure which is likely to put pressure on the capitalization and coverage indicators of the firm in the initial period and risks arising from partnership nature of the firm. The rating is also constrained by high sensitivity of BEF's profits to fluctuations in feed costs (mainly maize and soya prices) and the high competitive pressure which adds to the volatility in the business. ICRA however positively factors the experience of the management in layer poultry farming and the healthy demand outlook for the layer segment of the industry on account of increasing acceptance of eggs as a daily meal component. Established in 2010, BNR Egg Farms is a partnership firm engaged in the business of commercial layer poultry farming for the sale of table eggs. The unit is located in Vizanagaram district of Andhra Pradesh and the total capacity of Poultry layer unit is 200,000 layer birds. The day to day operations is looked after by the managing partners, Mr. B. Sayanatha Rao and Mr. P. Seshagiri Rao. The total cost of the project is INR8.37 crore, out of which INR5.40 crore is term loan and the remaining is partner's contribution. The brooder, grower and two layer sheds are in place whereas the construction of godown, two layer sheds and feed manufacturing plant is expected to complete by September, 2013. D.S. CONTRACTORS: ICRA Lowers Ratings on INR13cr Loans to 'D' ------------------------------------------------------------- ICRA has revised the long term ratings assigned to the INR5.00 crore fund based limits of D.S. Contractors Private Limited from '[ICRA]C' to '[ICRA]D'. ICRA has also revised the short term ratings assigned to the INR8.00 crore non-fund based limits of DSCPL from '[ICRA]A4' to '[ICRA]D'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits- 5.0 [ICRA]D Revised from Cash Credit [ICRA]C Non-Fund Based Limit 8.0 [ICRA]D Revised from [ICRA]A4 The revision in ratings of D.S. Contractors Private Limited factors in the company's stretched liquidity position evidenced by ongoing delays in debt servicing towards the repayment of overdraft facility resulting in overutilization of working capital limits for more than 30 consecutive days in recent past and in frequent excessive utilization of its fund based limits. The ratings also factor in delays in execution of majority of the company's projects due to issues related to availability of labor and sand which resulted in a 13% year-on-year de-growth in FY13 revenues and the high client, sectoral, geographic and project concentration risks in the company's order book. However, ICRA notes DSCPL's healthy revenue visibility due to strong unexecuted order book position as of May 2013 equivalent to 2.58x FY12 revenues led by the inflow of new orders of INR38 crore in FY13 and the long-standing experience of the promoters in the construction industry. Incorporated in 1990, DSCPL is a Goa based Construction Company that undertakes civil construction projects for residential, industrial buildings and hotel projects. Founded by Mr. SS Gill, DSCPL is a closely held company with 100% shares held by the promoters. Till date, DSCPL has executed over 70 projects involving civil construction of residential, institutional, industrial buildings and hotel projects for a mix of public sector and private sector clients. Entire company's projects are located in the states of Goa. ESKAY HEAT: ICRA Assigns 'B+' Ratings to INR11.26cr Loans --------------------------------------------------------- ICRA has assigned '[ICRA]B+' rating to INR7.00 crore fund based limits and INR4.26 crore term loan of Eskay Heat Transfers Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long-term fund 7.00 [ICRA]B+ assigned based limits Term Loan 4.26 [ICRA]B+ assigned The assigned ratings are constrained by small scale of operations of the company in heat exchanger manufacturing industry resulting in modest economies of scale; high customer concentration risk with top 3 customers accounting for 29.92% of the revenues in FY2013 and volatility in raw material prices affecting the profitability as witnessed in the past. The ratings however favorably factor in long experience of the promoters in manufacturing of heat exchangers; established relationships with its customers and high value addition in their products. Eskay Heat Transfer Private Limited was incorporated in the year 1989 (Earlier Eskay Industries, a partnership firm established in 1977). The promoters of the company, Mr. Sachidananda N Shetty and Mr. N. Kusha Shetty have experience of over 3 decades in design and manufacturing of heat exchangers. The company's plant is located in Bangalore and the company primarily supplies heat exchangers to diverse industries such as power generation, process, chemical, petrochemical, machine tools and mining industries. Recent Results For FY2013 (unaudited and provisional), the company has reported an operating income of INR21.29 crore and net profits of INR0.76 crore. HAMSA MINERALS: ICRA Reaffirms 'B+' Rating on INR3.5cr Loans ------------------------------------------------------------ ICRA has re-affirmed the '[ICRA]B+' rating outstanding on the INR3.5 crore long term fund based facilities of Hamsa Minerals & Exports. ICRA has also re-affirmed the '[ICRA]A4' rating to the INR10.0 crore (enhanced from INR6.5 crore) short term fund based facilities of HME. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Fund 3.5 [ICRA]B+/Re-affirmed Based Limits Short Term Fund 10.0 [ICRA]A4/Re-affirmed Based Limits The reaffirmation of the ratings continues to factor the promoters' strong background and experience in the granite quarrying industry and business synergies from group companies that are engaged in granite quarrying. Quarries owned / leased by group companies of the Firm provide access to and ensure timely availability of unique variety of granite which is well recognised in the export market. During 2012-13, the firm's volumes witnessed sharp decline owing to subdued demand conditions in the end markets; however, expected revival in those markets together with the firm's foray into granite slab processing are expected to support revenue growth going forward. However, the impact of debt funded capital expenditure continues to remain key monitorable. The ratings continue to factor the Firm's moderate scale of operations, fragmented industry structure with large number of players catering to the export market and vulnerability of profit margins to foreign exchange fluctuations. The ratings also factor the Firm's stretched financial profile marked by weak capital structure and high working capital requirement. Though majority of the debt being extended as unsecured loans by promoters provides comfort, the Firm's ability to improve its capital structure over the medium run would remain key rating sensitivity. Hamsa Minerals & Exports, promoted by Mr. V. Vikram Reddy and family in 2004, is a partnership Firm engaged in granite quarrying and exporting dressed granite blocks to countries such as China, Hong Kong, Taiwan and Switzerland. Initially, the Firm was into iron ore exports business and subsequently got 100 per cent EOU (Export Oriented Unit) certificate from SEZ Vishakhapatnam to export squared and dressed granite blocks. Recent results (Unaudited) The Firm reported net profit of INR0.9 crores on operating income of INR21.3 crores during 2012-13 as against net profit of INR1.2 crore on operating income of INR37.7 crores during 2011-12. J.R.M. FOODS: ICRA Assigns 'B+' Rating to INR21cr Loans ------------------------------------------------------- ICRA has assigned '[ICRA]B+' rating to the INR21.0 crore fund- based limits of J.R.M. Foods Pvt. Ltd. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 21.00 [ICRA]B+ Rating Rationale The rating takes into account the highly competitive and low value added nature of the rice milling industry which coupled with JRM's moderate scale of operations has lead to weak profitability metrics for the company. The rating is also constrained by JRM's high gearing levels (2.78 times as on March 31, 2013), its weak debt protection indicators (NCA/Debt of 3% and OPBDITA/Interest of 1.07 times in FY13) and consistently high utilisation of fund based working capital limits. Nevertheless, the rating derives comfort from JRM's experienced management, healthy growth in its operating income and favourable demand outlook for the rice industry. J.R.M. Foods Pvt. Ltd. was earlier Jain Rice Mill which was a partnership firm established in 1973 by three brothers Mr. Sandeep Jain, Mr. Pritam Jain and Mr. Harish Jain. The firm was incorporated as a private limited company (J.R.M. Foods Pvt. Ltd.) in June 2011. The company is engaged in milling of basmati rice and conversion of semi processed rice into parboiled Basmati rice. Recent Results As per audited results, the company has reported PAT of INR0.53 crore on an operating income of INR99.57 crores in FY13 as compared to PAT of INR0.41 crore on an operating income of INR70.03 crore in FY12. MAHAKALI MOTORS: ICRA Rates INR10cr Fund Based Loan at 'B+' ----------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' to the INR10.00 crore fund based bank limits of Mahakali Motors Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based-Cash Credit 10 [ICRA]B+ assigned The rating takes into consideration MMPL's low profitability, as inherent in the car dealership business, adverse capital structure and depressed coverage indicators. The company is the authorised dealer for Tata Motors Limited's commercial vehicles (CV) segment, which exposes the company to the current difficult operating environment, but ICRA expects the revenue growth to be supported by its expanded reach with the setting up of the new outlet. Notwithstanding the same, its operations remain confined to Bihar leading to geographical concentration risk. The rating also takes into consideration the limited financial flexibility of the company as characterised by high utilisation of bank limits; however, the same is expected to improve with access to channel financing. The rating also takes into account the long experience of the promoters in the car dealership business and the consistent growth in the turnover during the past two years. Established in 2009 by the Choudhury family, MMPL is TML's (Tata Motors Limited) authorized dealer for the sale of commercial vehicles as well as for services and sale of spares in the state of Bihar. The company operates out of two showrooms in the state of Bihar. Recent Results As per provisional numbers, the company has reported a net profit after tax (PAT) of INR1.29 crore in FY13 on an operating income (OI) of INR89.35 crore. The company had earned a PAT of INR0.99 crore on an OI of INR77.02 crore in FY12. MITHILANCHAL INDUSTRIES: ICRA Puts 'B' Ratings on INR7.81cr Loans ----------------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]B' to the INR7.81 crore bank limits of Mithilanchal Industries Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Loan 1.81 [ICRA]B assigned Long Term Cash 6.00 [ICRA]B assigned Credit facility The rating assigned is constrained by the limited track record of operations of the company, with commencement of production in April 2013, the exposure of the company's profitability and cash flows to the fluctuations in raw material prices and the intense competitive pressure arising due to the cyclical and fragmented nature of the textile industry. The rating also factors in the limited bargaining power available to the company due to its dependence on a single supplier for meeting most for its raw material requirements. The rating, however, draws comfort from the long presence of the promoters in the field of manufacturing various jari products and the locational advantage available to the company by virtue of its presence in Surat, in close proximity to raw material sources and end customers. ICRA also notes the operational synergies available to MIPL from the presence of group concerns in similar lines of business. Going forward, the company's ability to scale up operations successfully while maintaining a prudent working capital cycle would remain important from a credit perspective. Mithilanchal Industries Private Limited was incorporated in April 2012 and commenced the commercial production of jari yarn in April 2013. The company was formed by taking over the operations of a group concern, viz. Telstar Enterprise (TE), which had been involved in the production of metallic yarn used in the production of jari. The operations at the existing unit of TE have been discontinued and the facility has been equipped with 8000 hollow spindle machines, five 48-spindle winding machines and 64 pineapple conning machines, with a cumulative installed capacity of 180-200 tonnes per annum. RAGHU RAMA: ICRA Assigns 'B' Ratings to INR16cr Loans ----------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B' to INR15.20 crore fund based limits of Raghu Rama Rice Industry. ICRA has also assigned rating of '[ICRA]B' to INR0.80 crore unallocated limits of RRRI. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund based limits 15.20 [ICRA]B assigned Unallocated limits 0.80 [ICRA]B assigned The assigned rating is constrained by nascent stage of operations of RRRI with commercial operations starting in June, 2013; debt funded capital structure which is likely to put pressure on the capitalization and coverage indicators of the firm in the initial period and risks arising from partnership nature of the firm. The rating is further constrained by intensely competitive nature of the rice industry with presence of several small-scale players which increases the pressure on the operating margins; susceptibility to agro-climatic risks which impact the availability of the paddy in adverse weather condition and the government policy restrictions on the quantity of rice which can be sold in the open market limit the flexibility and realizations for the firm. The ratings however take comfort from the long experience of the promoters in the rice mill business; easy availability of paddy from proximity of plant in major paddy cultivating region of the country and favorable demand prospects of the industry with India being the second largest producer and consumer of rice internationally. Raghu Rama Rice Industry is established in March 2012 as a partnership firm by Mr. V. Rudrayya Chowdary and other family members. The firm is engaged in milling of paddy to produce raw and boiled rice and the firm commenced its operation in June, 2013. RRRI is located in the East Godavari District of Andhra Pradesh. The production capacity of the plant installed is 8 tons per hour. SHREE NAKODA: ICRA Rates INR1cr Fund Based Loans at 'B' ------------------------------------------------------- ICRA has assigned an '[ICRA]B' rating to the INR1.00 crore fund- based bank facilities of Shree Nakoda Global Ltd. ICRA has also assigned an '[ICRA]A4' rating to the INR14.00 crore non-fund based bank facilities of SNGL. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund-Based Limits 1.00 [ICRA]B; assigned (Cash Credit) Non-Fund Based Limits 14.00 [ICRA]A4; assigned The assigned ratings take into consideration the long track record of SNGL's promoters in the steel sector, which helps secure business for the company, and an improvement in SNGL's profitability during the last two years, though profits have remained low in absolute terms. However, the ratings are constrained by SNGL's adverse financial risk profile as reflected by an increasing gearing and depressed levels of coverage indicators, relatively small size of the company's operations at present, the ongoing weakness in the steel industry as reflected by a significant decline in SNGL's sales during 2012-13 and the cyclicality associated with the steel industry, which is likely to keep its profitability and cash flows volatile in future. The company was incorporated in January 1993 by the Raipur based Shree Nakoda Group, promoted by Mr. Virendra Goel. The operations of the company are being managed by his younger brother, Mr. Surendra Goel and Mr. R. K. Agarwal. The company is involved in trading of various steel products such as plates, sheets etc. and minerals. Recent Results In 2012-13, as per the provisional financial statements, SNGL reported an operating income of INR111.48 crore and a net profit of INR0.32 crore as against an operating income of INR271.43 crore and a net profit of INR0.44 crore in 2011-12. SRI AUROBINDO: ICRA Places 'B+' Ratings on INR11.5cr Loans ---------------------------------------------------------- ICRA has assigned long term rating of '[ICRA]B+' to the INR7.0 crore term loan facilities and the INR4.5 crore fund-based facilities of Sri Aurobindo Packagers Private Limited. ICRA has also assigned short term rating of '[ICRA]A4' to the INR0.5 crore non fund based facilities of SAPL. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term loans 7.0 [ICRA]B+/assigned Fund Based limits 4.5 [ICRA]B+/assigned Non Fund Based limits 0.5 [ICRA]A4/assigned The assigned ratings factors the long standing experience of the promoters in the industry, reputed customer profile diversified across various industries with low customer churn lending stability to volumes, steady growth in revenues over the years backed by increasing off-take from existing customers and acquisition of new customers and favorable demand prospects for the flexible packaging industry due to increased usage in FMCG products and other industries. However, the rating is constrained by the fragmented nature of the flexible packaging industry leading to intense competition and constrained margins, limited bargaining power exposing earnings to volatile raw material prices, risk of high customer concentration with major customers contributing to more than 60% of revenues and relatively small scale of operations. The rating also factors in the financial profile characterized by moderately high gearing and thin accruals owing to capacity constraints and working capital intensive nature of operations. With the capital expenditure being undertaken to result in increased debt levels, the company's financial profile would critically depend on the utilization levels of its expanded capacity especially in view of the high debt repayment obligations. Sri Aurobindo Packagers Private Limited is a manufacturer of flexible packaging material based out of Chennai, Tamil Nadu. SAPL was started in 1999 by the promoters for manufacturing laminated packaging material. The company initially started with capacity of 6T/month and has expanded to current levels of 100T/month. The company currently manufactures packaging material, in roll form as well as pouch form, through the printing and laminating of plastic films. The major customers are Aachi masala, MRF and Auro Foods. The company is in the process expanding its capacity to 400T/month and has plans for backward integration into manufacturing of plastic and metallised films. SRI AYYAPPA: ICRA Reaffirms 'B+' Rating on INR15cr LT Loans ----------------------------------------------------------- ICRA has reaffirmed the long term rating assigned to INR15.00 crore fund based limits of Sri Ayyappa Rice Industries at '[ICRA]B+'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Fund 15.00 [ICRA]B+ reaffirmed Based Limits The rating reaffirmation takes into account the modest financial profile characterized by low operating margins & moderate coverage indicators; intensely competitive and fragmented nature of the rice milling industry which limits the ability of the firm to pass on hike in input costs to its customers. Further, the firm also remains susceptible to policy risks affecting the quantum of the more lucrative open market sales, and agro climatic risks, which might affect the availability of paddy. The ratings however favorably factor in long-standing experience of promoters in the industry, easy availability of raw material- the mill being present in rice-belt of Andhra Pradesh and the presence of the firm in retail market through its own brands 'Double Horse' and 'Sri Chakra' with branded sales accounting for 44% of turnover. Operating income grew by 4.4% FY13 primarily on account of improvement in sales realization. Firm sold 30973 MT rice in FY13 as compared to 33,407 MT rice sold in FY12. The gearing of the firm has decreased from 1.39 as on FY12 end to 0.83 as on FY13 end on account lower utilization of working capital limits. Working capital intensity of the firm is high at 22.38% in FY13 on account of high inventory days as the firm keeps an inventory of raw material throughout the year. Rice mills are required to hold high inventory of paddy due to seasonality of the crop and significant seasonal variations in both price and quality of paddy. As on Mar 31, 2013, the total debt of SARM comprises of unsecured loans of INR1.50 Cr (16%) and working capital borrowings of INR8.00 Cr (84%). Sri Ayyappa Rice Industries is a partnership firm established in the year 2008 and is engaged in the milling of paddy. It produces raw and boiled rice. It was promoted by Mr. S. Venkata Reddy and partners. The firm has a milling unit in Polamuru (East Godavari district) of Andhra Pradesh with a milling capacity of 90,000 MTPA. According to provisional FY 2012-13 results, the firm has recorded an operating income of INR62.92 crores with an operating profit of INR3.02 crore. SRI SHIVA: ICRA Assigns 'B+' Rating to INR7cr Fund Based Loans -------------------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B+' to INR7.00 crore fund based limits of Sri Shiva Parvathi Industries. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 7.00 [ICRA]B+ assigned The assigned rating is constrained by intensely competitive nature of rice industry with presence of several small-scale players which puts pressure on the operating margins; moderate financial profile of the firm characterised by low profitability & moderate gearing levels; and risks inherent in a partnership nature of the firm. These apart, the rating is also constrained by the susceptibility of profitability & revenues to agro-climatic risks which impact the availability of the paddy in adverse weather conditions. The rating however takes comfort from the long track record of the promoters in the rice milling business and favorable demand prospects for rice with India being the second largest producer and consumer of rice internationally. Founded in the year 2009 as a partnership firm, Sri Shiva Parvathi Industries is engaged in the milling of paddy and produces raw & boiled rice. The rice mill is located at Ramunipatla village of Medak district, Andhra Pradesh. The firm is also having unit in Dubbaka village of Medak district. The installed production capacity of the rice mill is 6 tons per hour and ravva mill is 2 tons per hour. Recent Results In FY2013 (unaudited and provisional), the firm reported an operating income of INR21.33 crore and operating profits of INR1.59 crore. SRI VENKATESWARA: ICRA Reaffirms 'B' Rating on INR9cr LT Loan ------------------------------------------------------------- ICRA has reaffirmed the long term rating assigned to INR9.00 crore fund based bank facilities of Sri Venkateswara Rice Mill at '[ICRA]B'. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Fund 9.00 [ICRA]B reaffirmed Based Limits The rating reaffirmation takes into account the modest financial profile characterized by low operating margins & weak coverage indicators; intensely competitive and fragmented nature of the rice milling industry which limits the ability of the firm to pass on hike in input costs to its customers. Further, the firm also remains susceptible to policy risks affecting the quantum of the more lucrative open market sales, and agro climatic risks, which might affect the availability of paddy. The ratings however favorably factor in long-standing experience of promoters in the industry, easy availability of raw material- the mill being present in rice-belt of Andhra Pradesh and the presence of the firm in retail market through its own brands 'SVR Double Horse' with branded sales accounting for 20% of turnover. Operating income grew by 20% during FY13 primarily on account of increase in sales volume by 35% in FY13 as firm sold 16484 MT rice in FY13 as compared to 12257 MT sold in FY12. However the operating profitability of the firm decreased in FY13 from 8.13% to 5.59% on account of increase in manufacturing and employee expenses. The gearing of the firm decreased on account of lower working capital utilization. Working capital intensity of the firm is high at 25.39% in FY13 primarily on account of increase in inventory holding as the firm keeps an inventory of raw material throughout the year. Rice mills are required to hold high inventory of paddy due to seasonality of the crop and significant seasonal variations in both price and quality of paddy. Sri Venkateswara Rice Mill is a partnership firm established in the year 1999 and is engaged in the milling of paddy. It produces raw and boiled rice. It was promoted by Mr. S. Venkata Rama Krishna Reddy and partners. The firm has its milling unit in Mahendrawada (East Godavari district) of Andhra Pradesh with a milling capacity of 99,000 MTPA. According to provisional FY 2012-13 results, the firm has recorded an operating income of INR35.59 crore with an operating profit of INR1.99 crore. SPACETECH EQUIPMENTS: ICRA Rates INR1.75cr Loan at 'B' ------------------------------------------------------ ICRA has assigned an '[ICRA]B' rating to the INR1.75 crore fund- based bank facilities of Spacetech Equipments & Structurals Private Limited. ICRA has also assigned an '[ICRA]A4' rating to the INR4.2 crore non-fund based bank facilities of the company. ICRA has assigned [ICRA]B and/or [ICRA]A4 rating to the INR0.05 crore unallocated fund-based/non-fund based bank facilities of SESPL. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund-Based Limits 1.75 [ICRA]B assigned Non-fund Based Limits 4.20 [ICRA]A4 assigned Fund Based/Non-fund 0.05 [ICRA]B and/or [ICRA]A4 Based Unallocated Limits assigned The assigned ratings take into account the tight liquidity profile of the company owing to delayed payments from the customers, which is also reflected by recent instances of LC devolvement. The ratings are also constrained by SESPL's weak financial risk profile characterised by a leveraged capital structure, depressed coverage indicators and nominal accruals; small scale of operations of the company and its exposure to steel price volatility, given the high inventory levels maintained by the company. ICRA also notes that the company remains exposed to forex risks due to its export presence, in the absence of a formal hedging mechanism. Nevertheless, the ratings favorably factor in the long experience of the promoters in the fabrication business and reputed customer base of the company, which indicates good product quality and ensures repeat orders. The ratings also take into account the increased export presence of the company in 2012- 13 and in the current year, which reduces geographical concentration risks and improves the company's operating profile. Established in 1982, SESPL is engaged in the fabrication of pressure vessels, with its facility located at Ambernath in Thane district of Maharashtra. SESPL's fabrication facility is ISO 9001- 2000 certified and the pressure vessels manufactured by the company find application mainly in the steel, oil & gas, power and engineering sectors. Recent Results In 2011-12, SESPL reported a net profit of INR0.1 crore on the back of net sales of INR13.1 crore. As per the provisional results for 2012-13, the company reported a net profit of INR0.3 crore on the back of net sales of INR13.7 crore. SVS FOOD: ICRA Assigns 'B' Rating to INR6.5cr Fund Based Loans -------------------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B' to INR6.50 crore fund based limits and ratings of '[ICRA]B/[ICRA]A4' to INR0.50 crore unallocated limits of SVS Food Processors Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based limits 6.50 [ICRA]B assigned Unallocated limits 0.50 [ICRA]B/[ICRA]A4 assigned The assigned ratings are constrained by relatively high operating risks in SVSPL's core business of manufacturing food products arising out of low value additive nature of its operations and small scale of operation restricting economies of scale. The ratings also take into account company presence in a highly fragmented and competitive agro commodities industry which may exerts pressures on its margins, susceptibility of its business operations to volatility in pricing of wheat and performance of the agricultural sector, which is further impacted by a combination of factors like climatic conditions, government policies and prevailing demand-supply scenario. The rating is further constrained by significant execution risk as the project is in the construction stage and lack of promoters experience in flour mill industry. However, the rating favorably factor in positive demand outlook of flour, as it forms an important part of the staple Indian diet; also, the shorter order completion time limits the exposure to volatility in prices; and moderate project gearing of 0.89 times. The rating also draws comfort from cushion available to the company in term loan repayment with repayment commencing from July 2014 whereas expected COD is September 2013. Incorporated in 2012, SVS Food Processors Private Limited is proposing to set up a flour mill with 45000 TPA (ton per annum) capacities. The proposed unit is located at Singanna Guda Village, Medak district, Andhra Pradesh, which is around 30 kms from Hyderabad. The company is promoted by Mr. D. Narendra Reddy and Mr.Ch. Narsimha Reddy. The promoters have prior experience in cement and pipes manufacturing industry. U GOENKA: ICRA Rates INR1cr LT Cash Credit Loan at 'B' ------------------------------------------------------ ICRA has assigned a long term rating of '[ICRA]B' to the INR1.00 crore cash credit facility and a short term rating of '[ICRA]A4' to the INR22.00 crore short term non-fund based facility of U Goenka Sons Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long Term Fund Based 1.00 [ICRA]B assigned Cash Credit Facility Short Term Non Fund 22.00 [ICRA]A4 assigned Based Letter of Credit The ratings are constrained by the weak financial profile of the company reflected by a low profitability and weak capital structure, limited value addition which limits any substantial improvement in profitability and highly competitive and fragmented nature of industry resulting in low barriers to entry. The ratings also factor in the vulnerability of operations to any adverse agro climatic conditions and government regulations on imports and export which may impact the raw material availability and exposure of profitability to any adverse foreign currency exchange rates. The ratings, however, favorably factor in the more than three decades long experience of the promoters in agro trading business, healthy growth in operating income over the past six years and low risk of customer and geographical concentration given the wide customer base spread across India. Established in February 1991, U Goenka Sons Private Limited is engaged in the business of importing and trading of beans, pulses and other agro commodities. The company is based out of Mumbai and caters to the domestic markets. V CARE: ICRA Assigns 'B' Rating to INR0.59cr Term Loan ------------------------------------------------------ ICRA has assigned a long-term rating of '[ICRA]B' to INR0.59 crore term loan and a short term rating of '[ICRA]A4' to the INR5.00 crore demand loan of V Care Agritech. ICRA has also assigned ratings of [ICRA]B/[ICRA]A4 to INR2.41 crore unallocated limits of V Care Agritech. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan 0.59 [ICRA]B assigned Demand Loan 5.00 [ICRA]A4 assigned Unallocated Limits 2.41 [ICRA]B/[ICRA]A4 assigned The assigned ratings are constrained by the high client concentration risk; thin profitability levels given the limited value addition in seed processing, high working capital intensity of the firm due to inventory stocking resulting from seasonal nature of the business and presence in a highly competitive market exposed to agro-climatic conditions. The ratings, however, favorably factor in the established presence of the promoters in the seeds industry; the client-relationships built by the V-care group over the years with various government agencies and improved profitability levels in the last financial year. V Care Agritech is a partnership firm incorporated in the year 2009 and is run by five partners Mr. S Rajashekharappa, Mr.D. Kotiswamy, Mr.D. Venkata Rao, Mr. D. Kiran Kumar and Mr. A. Babaiah. The firm started commercial operations in 2010-11 and is into the business of commercial seeds processing .The firm has a production facility with a processing capacity of 100 MT per day at Mahbubnagar in Andhra Pradesh. The firm procures breeder seeds from various agricultural universities in Andhra Pradesh and then supplies the same to farmers for multiplication to commercial seeds, which are then processed by the firm and sent for certification. The firm sells the processed and certified seeds mainly to group concern V Care Seeds Private Limited (VSPL) and plans to diversify its client base to private players in the current fiscal. Recent Results As per the provisional results for FY 2013, the firm reported profit before tax of INR0.15 crore on turnover of INR11.41 crore as against profit after tax of INR0.08 crore on turnover of INR13.37 crore during FY 2012(audited results). VEEKAY SMELTERS: ICRA Rates INR7cr Fund Based Loans at 'B+' ----------------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B+' for INR7.00 crore fund based limits of Veekay Smelters Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 7.00 [ICRA]B+ assigned The assigned rating is constrained by small scale of operations in the ferro alloy industry restricting economies of scale; exposure to cyclicality inherent in the steel industry due to direct linkage to steel industry prospects; and moderate execution risk with erection of plant & machinery going on currently. The rating is further constrained by absence of captive raw material sources which exposes company profitability to volatility in raw material prices and commoditized nature of the ferro alloy products. ICRA also notes that the debt funded ferro alloy plant construction may put pressure on debt servicing initially owing to plant stabilization issues and lower cash accruals in the initial years. However, the rating favorably factors in long experience of the promoter in the ferro alloy industry; favorable demand outlook for ferro alloys; and limited impact on the company profitability following power cost increases in Andhra Pradesh owing to less power intensive production process of low carbon ferro alloy production. Veekay Smelters Private Limited was incorporated as a private limited company in the year 2010. The company is proposing to set up a ferro alloy manufacturing unit to produce 6000 TPA of low carbon ferro manganese. The proposed unit is located at Peddapuram Village, Vijayanagaram, Andhra Pradesh, which is around 120 kms from the Vishakhapatnam port and 17 kms from Kakinada port. The promoter is well experienced in ferro alloy production the unit will run under the direct supervision & control of the Mr. P.S Vijay. ==================== N E W Z E A L A N D ==================== MAINZEAL PROPERTY: Liquidators Claw Back NZ$23MM for Creditors -------------------------------------------------------------- NZN reports that the liquidators of the failed Mainzeal group of companies have successfully managed to haul back more than NZ$23 million into the pot to pay off creditors. NZN recalls that liquidators Andrew Bethell, Brian Mayo-Smith and Stephen Tubbs went to the High Court at Auckland last month, arguing Mainzeal had restructured to "denude of any value" companies which owed money to about 2,000 creditors. There were 13 companies in liquidation, while two companies, Richina Global Real Estate and Isola Vineyards, remained unaffected, according to the report. NZN relates that the liquidators said the companies, controlled by Richard Yan, were so closely related that none had identifiable separate businesses. In a decision released July 11, NZN says Justice Patrick Keane backed the liquidators, and ordered the 15 companies be treated as one company for liquidation. That meant RGEL and Isola Vineyards must contribute NZ$23,415,619 to the liquidation, the report relays. About Mainzeal Property Mainzeal Property and Construction Ltd is a New Zealand-based property and construction company. The company forms part of the Mainzeal Group, which is owned by Richina Inc, a privately held New Zealand-based company with a strong China focus. On Feb. 6, 2013, Colin McCloy and David Bridgman, partners from PricewaterhouseCoopers, were appointed receivers to Mainzeal Property and Construction Limited and associated entities as a result of a request made by its director to BNZ. Mainzeal's director, Richard Yan advised that following a series of events that had adversely affected the Company's financial position coupled with a general decline in major commercial construction activity, and in the absence of further shareholder support, the Company could no longer continue trading. On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were appointed liquidators to those three companies in receivership and nine others in the group that were not in receivership. The companies now under the control of the liquidators are Mainzeal Group, Mainzeal Property and Construction, Mainzeal Living, 200 Vic, Building Futures Group Holding, Building Futures Group, Mainzeal Residential, Mainzeal Construction, Mainzeal, Mainzeal Construction SI, MPC NZ and RGRE. Mainzeal is estimated to owe NZ$11.3 million to the BNZ, NZ$70 million to unsecured creditors and NZ$5.2 million to employees, NZN discloses. Subcontractors are among the unsecured creditors, says NZN. RENAISSANCE CORP: Shuts Four of Nine "Yoobee" Stores ---------------------------------------------------- NBR Online reports that Renaissance Corp, the retailer of Apple products and operator of a design school, said annual earnings will be another disappointing result due to its ailing retail unit, and it's shutting four of nine "Yoobee" stores in a bid to restore profitability. According to the report, the company on Monday closed Apple reseller stores in Albany, Britomart, Sylvia Park and Dunedin as part of a plan to get its retail unit back in shape. NBR relates that Renaissance said the remaining stores in Newmarket, Hamilton, Wellington and Christchurch will offer full service functions in an effort to differentiate them from competitors." "In the first instance we have to get retail back to break-even," the company said, NBR reports. "We do not underestimate the difficulty of that task, but management has a plan and part of that plan was implemented with the closure of four stores." The company posted a first-half loss of NZ$3.1 million on sales of NZ$24.7 million, and took a NZ$2.99 million impairment to write off goodwill on its retail division, NBR discloses. NBR notes that Renaissance has been in a protracted due diligence process with a party interested in the education unit, formerly known as Natcoll Design Technology, and received a proposal on July 12 which the board is still working through. Based in Christchurch, New Zealand, Renaissance Corp Limited (NZE:RNS) -- http://www.renaissance.co.nz/-- engages in the retail of Apple and third party products in New Zealand. It markets and sells Apple products, and associated peripheral hardware and computer software to its digital technology consumers through its YOOBEE retail outlets and online stores. It operates approximately 10 stores. TUIGAMALA AND SONS: In liquidation; Owes IRD NZ$80,000 ------------------------------------------------------ Anna Cross at NewstalkZB reports that the business of the former All Black known as 'Inga the Winger' has been placed into liquidation. Va'aiga Tuigamala's company Tuigamala and Sons Funeral Services was put into liquidation on July 5. It owes the IRD between NZ$80,000 to NZ$90,000, NewstalkZB discloses. According to the report, liquidator Derek Ah Sam said shareholders signed a resolution to put the company into liquidation. NewstalkZB relates that Mr. Ah Sam said Mr. Tuigamala is gutted about it but he'd admitted he has made a few mistakes in business. Several years ago he had to place his gym business into liquidation, the report notes. ===================== P H I L I P P I N E S ===================== QUEZON TRADERS: Placed Under PDIC Receivership ---------------------------------------------- The Monetary Board (MB) placed the Quezon Traders Rural Bank of Candelaria, Inc. under the receivership of the Philippine Deposit Insurance Corporation (PDIC) by virtue of MB Resolution No. 1122 dated July 11, 2013. As Receiver, PDIC took over the bank on July 12, 2013. Quezon Traders Rural Bank of Candelaria is a single-unit bank located at Cabunag St., Pahinga, Poblacion, Candelaria, Quezon. Latest available records show that as of March 31, 2013, Quezon Traders Rural Bank of Candelaria had 582 accounts with total deposit liabilities of PHP46.56 million. A total of 565 deposit accounts or 97.08% of the accounts have balances of PHP500,000 or less and fully covered by deposit insurance. Total insured deposits amounted to PHP46.17 million or 99.15% of the total deposits. PDIC said that upon takeover, all bank records shall be gathered, verified and validated. The state deposit insurer assured depositors that all valid deposits shall be paid up to the maximum deposit insurance coverage of PHP500,000.00. The PDIC also announced that it will conduct a Depositors- Borrowers Forum on July 17, 2013, 9:00 a.m., at the Municipal Covered Court, Poblacion, Candelaria, Quezon, to inform depositors of the requirements and procedures for filing deposit insurance claims. Claim forms will be distributed during the Forum. The schedule and venue of the Forum will be posted in the bank premises and in the PDIC website, www.pdic.gov.ph. The claim forms and the requirements and procedures for filing are likewise available for downloading from the PDIC website. Depositors may update their addresses with the PDIC representatives at the bank premises or during the Forum using the Mailing Address Update Forms to be furnished by PDIC representatives. Duly accomplished Mailing Address Update Forms should be submitted to PDIC representatives accompanied by a photo-bearing ID of the depositor with signature. Depositors may update their addresses until July 18, 2013. Depositors with valid deposit accounts with balances of PHP15,000.00 and below need not file deposit insurance claims. But depositors who have outstanding obligations with the Quezon Traders Rural Bank of Candelaria including co-makers of the obligations, and have incomplete and/or have not updated their addresses with the bank, regardless of amount, should file deposit insurance claims. For depositors that need not file deposit insurance claims, PDIC targets to start mailing payments to these depositors at their addresses recorded in the bank no later than the start of the fourth week of July. For depositors that are required to file deposit insurance claims, the PDIC targets to start claims settlement operations for these accounts no later than the fourth week of July. The schedule of the claims settlement operations will be announced through notices to be posted in the bank premises and other public places as well as through the PDIC website, www.pdic.gov.ph. According to the latest Bank Information Sheet (BIS) as of December 31, 2012 filed by the Quezon Traders Rural Bank of Candelaria with the PDIC, the bank is majority-owned by Ann Michelle G. Asayo (13%), Eufronio A. Gonzalvo (13%), Ma. Gracia N. Licup (13%) and Aida A. Gallano (13%). Its Chairman and President is Aida A. Gallano. ==================== S O U T H K O R E A ==================== STX PAN OCEAN: Wins Ch. 15 Recognition From US Court ---------------------------------------------------- Jeff Sistrunk of BankruptcyLaw360 reported that a New York bankruptcy judge granted recognition to South Korean cargo company STX Pan Ocean Co. Ltd.'s Chapter 15 bankrutcy proceedings, extending the company protection from its American creditors following recent detentions of its ships in the U.S. According to the report, U.S. Bankruptcy Judge Shelley C. Chapman granted recognition to Seoul-based STX's recently launched reorganization proceedings in South Korea, shielding the company from claims by creditors in the U.S. while they undergo proceedings overseas. =============== X X X X X X X X =============== * APAC Sovereigns See Testing Times, Fitch Says ----------------------------------------------- Fitch Ratings says its latest overview that Asia Pacific sovereigns, while broadly on Stable Rating Outlook, will be tested by shifting investor risk appetite amid a relative shift in the outlook for emerging versus advanced economies. "This will emphasise the importance of credit fundamentals such as credible policy frameworks and robust fiscal positions," said Andrew Colquhoun, Head of Asia-Pacific Sovereigns at Fitch. Fitch reviewed the sovereign ratings for all three of the region's giants during the quarter. The agency downgraded China's Long-term Local Currency Issuer Default Rating to 'A+/Stable from 'AA- '/Negative on April 9. China faces the prospect of greater economic and financial volatility as its economy rebalances, with June's shock in the interbank market offering an example. Japan's ratings were affirmed 'A+' with Negative Outlook on May 16. Japan's ratings remain under pressure from high and rising public indebtedness, although Abenomics could still help to stabilise the ratings if Fitch gains confidence that it can deliver sustained higher real and nominal GDP growth. Fitch revised the Outlooks on India's 'BBB-' ratings to Stable from Negative on June 12. Tighter fiscal policy and some structural reforms have helped to stabilise India's credit profile in the most recent assessment, although fiscal slippage in the new fiscal year to March 2014, if it happened, could still see negative pressure re-emerge. The Overview also covers Macao for the first time, following the agency's publication of a 'AA-' IDR with Stable Outlook for the sovereign credit on May 22. This edition of the Overview additionally presents the results of audience polls taken in Hong Kong and Singapore during June's Global Banking Conference tour. Audience members were polled on their assessment of the chances that shadow banking would provoke a financial crisis in China, and on their views on the impact of Fed "tapering". * BOND PRICING: For the Week July 8 to July 12, 2013 ---------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- GRIFFIN COAL MINING 9.50 12/1/2016 USD 39.00 GTL INFRASTRUCTURE 2.53 11/9/2017 USD 40.43 MIDWEST VANADIUM 11.50 2/15/2018 USD 63.50 MIDWEST VANADIUM 11.50 2/15/2018 USD 71.12 NEW S WALES TREA 0.50 9/14/2022 AUD 68.46 NEW S WALES TREA 0.50 10/7/2022 AUD 68.23 NEW S WALES TREA 0.50 10/28/2022 AUD 68.03 NEW S WALES TREA 0.50 11/18/2022 AUD 67.82 NEW S WALES TREA 0.50 12/16/2022 AUD 68.00 NEW S WALES TREA 0.50 2/2/2023 AUD 67.52 NEW S WALES TREA 0.50 3/30/2023 AUD 66.97 TREAS CORP VICT 0.50 8/25/2022 AUD 69.41 TREAS CORP VICT 0.50 3/3/2023 AUD 68.12 TREAS CORP VICT 0.50 11/12/2030 AUD 46.75 CHINA ----- CHINA GOVT BOND 1.64 12/15/2033 CNY 68.83 INDIA ----- 3I INFOTECH LTD 5.00 4/26/2017 USD 30.10 COROMANDEL INTL 9.00 7/23/2016 INR 16.31 DR REDDY'S LABOR 9.25 3/24/2014 INR 5.00 GRAMEEN FIN SERV 14.05 6/7/2016 INR 54.59 JCT LTD 2.50 4/8/2011 USD 20.00 MASCON GLOBAL LT 2.00 12/28/2012 USD 10.00 PRAKASH IND LTD 5.63 10/17/2014 USD 59.49 PRAKASH IND LTD 5.25 4/30/2015 USD 59.66 PUNJAB INFRA DB 0.40 10/15/2024 INR 33.83 PUNJAB INFRA DB 0.40 10/15/2025 INR 30.79 PUNJAB INFRA DB 0.40 10/15/2026 INR 28.03 PUNJAB INFRA DB 0.40 10/15/2027 INR 25.53 PUNJAB INFRA DB 0.40 10/15/2028 INR 23.31 PUNJAB INFRA DB 0.40 10/15/2029 INR 21.37 PUNJAB INFRA DB 0.40 10/15/2030 INR 19.62 PUNJAB INFRA DB 0.40 10/15/2032 INR 16.62 PUNJAB INFRA DB 0.40 10/15/2033 INR 15.34 PYRAMID SAIMIRA 1.75 7/4/2012 USD 1.00 REI AGRO 5.50 11/13/2014 USD 70.16 REI AGRO 5.50 11/13/2014 USD 70.16 SHIV-VANI OIL 5.00 8/17/2015 USD 30.15 SUZLON ENERGY LT 7.50 10/11/2012 USD 65.12 SUZLON ENERGY LT 5.00 4/13/2016 USD 49.87 INDONESIA ---------- BUMI INVESTMENT 10.75 10/6/2017 USD 74.00 JAPAN ----- ELPIDA MEMORY 2.03 3/22/2012 JPY 14.37 ELPIDA MEMORY 2.10 11/29/2012 JPY 14.37 ELPIDA MEMORY 2.29 12/7/2012 JPY 14.37 ELPIDA MEMORY 0.50 10/26/2015 JPY 8.12 JPN EXP HLD/DEBT 0.50 9/17/2038 JPY 67.41 JPN EXP HLD/DEBT 0.50 3/18/2039 JPY 67.93 TOKYO ELECTRIC 2.36 5/28/2040 JPY 70.25 PHILIPPINES ----------- BAYAN TELECOMMUN 13.50 7/15/2006 USD 22.75 BAYAN TELECOMMUN 13.50 7/15/2006 USD 22.75 SINGAPORE --------- BAKRIE TELECOM 11.50 5/7/2015 USD 40.00 BAKRIE TELECOM 11.50 5/7/2015 USD 37.87 BLD INVESTMENT 8.63 3/23/2015 USD 70.00 BLUE OCEAN 11.00 6/28/2012 USD 39.37 BLUE OCEAN 11.00 6/28/2012 USD 39.37 DAVOMAS INTL FIN 11.00 12/8/2014 USD 25.75 DAVOMAS INTL FIN 11.00 12/8/2014 USD 25.75 INDO INFRASTRUCT 2.00 7/30/2049 USD 1.87 SOUTH KOREA ----------- CHEJU REGION DEV 3.00 12/29/2034 KRW 67.09 EXP-IMP BK KOREA 0.50 9/28/2016 BRL 64.45 EXP-IMP BK KOREA 0.50 10/27/2016 BRL 72.04 EXP-IMP BK KOREA 0.50 11/28/2016 BRL 69.49 EXP-IMP BK KOREA 0.50 12/22/2016 BRL 68.07 EXP-IMP BK KOREA 0.50 10/23/2017 TRY 69.15 EXP-IMP BK KOREA 0.50 11/21/2017 BRL 66.35 EXP-IMP BK KOREA 0.50 12/22/2017 TRY 67.85 EXP-IMP BK KOREA 0.50 1/25/2017 TRY 73.97 SRI LANKA --------- SRI LANKA GOVT 6.20 8/1/2020 LKR 73.80 SRI LANKA GOVT 7.00 10/1/2023 LKR 67.80 SRI LANKA GOVT 5.35 3/1/2026 LKR 56.88 SRI LANKA GOVT 8.00 1/1/2032 LKR 71.08 THAILAND -------- G STEEL 3.00 10/4/2015 USD 8.00 MDX PUBLIC CO 4.75 9/17/2003 USD 16.25 ********* 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 ***