/raid1/www/Hosts/bankrupt/TCRAP_Public/131009.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, October 9, 2013, Vol. 16, No. 200
Headlines
A U S T R A L I A
AUSTRALIA'S RESIDENTIAL: Faces Possible Probe Over Collapse
MANUFACTURING INDUSTRY: Clifton Hall Appointed as Liquidators
REDBANK POWER: In Receivership After Debt Revamp Deal Fails
VIRGIN AUSTRALIA: Fitch Expects to Rate Class C Notes at 'B+'
C H I N A
CHINA AUTO: Gets Nasdaq Listing Non-Compliance Notice
CHINA CABLECOM: Incurs $20.7-Mil. Net Loss in 2011
CHINA PRECISION: To Report $69 Million Net Loss in Fiscal 2013
MOUNTAIN CHINA: Posts Net Loss of C$5.51 Mil. in 2nd Qtr. 2013
H O N G K O N G
GREENLAND HONG KONG: S&P Raises Corporate Credit Rating From 'B-'
I N D I A
AGARWAL TMT: CARE Rates INR43.5cr LT Bank Loans at 'B'
AMITARA OVERSEAS: CARE Assigns 'BB' Rating to INR10.72cr Loans
ARTHOS BREWERIES: CARE Assigns 'D' Rating to INR14.26cr Loans
ASAN MEMORIAL: CARE Rates INR10cr LT Bank Loans at 'BB'
FOX LIGHT: CARE Assigns 'BB-' Rating to INR9cr LT Bank Loans
GREENWAY BUILDING: CARE Rates INR11cr LT Bank Loans at 'BB-'
INDORE COMPOSITE: CARE Reaffirms 'BB-' Rating on INR18.5cr Loans
JAGUAR LAND: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
KARGWAL ENTERPRISES: CARE Cuts Rating on INR19.23cr Loans to 'BB'
KRIDHAN INFRA: CARE Assigns 'B+' Rating to INR2cr LT Loans
PASCHAL FORMWORK: CARE Cuts Rating on INR12cr Bank Loan to 'BB+'
ROYAL PROPTECH: CARE Assigns 'B' Rating to INR3cr Loan
SAHNI SALES: CARE Assigns 'B' Rating to INR6cr LT Bank Loan
SHRI MADHUR: CARE Assigns 'BB-' Rating to INR7cr LT Bank Loans
SUMIT ENTERPRISES: CARE Assigns 'BB' Rating to INR4.9cr Loans
VIJAY STEEL: CARE Reaffirms 'B+' Rating on INR1.5cr LT Loans
VKS GORMI: CARE Assigns 'BB+' Rating to INR25cr LT Loans
J A P A N
EACCESS LTD: S&P Raises Rating on Senior Unsecured Bonds to 'BB'
N E W Z E A L A N D
INSURED GROUP: Fails to File Annual Report On Time
S O U T H K O R E A
* SOUTH KOREA: More Than 100 SMEs May Face Debt Restructuring
T A I W A N
TAICHUNG COMMERCIAL: Fitch Revises Outlook on BB+ IDR to Negative
X X X X X X X X
* Upcoming Meetings, Conferences and Seminars
- - - - -
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A U S T R A L I A
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AUSTRALIA'S RESIDENTIAL: Faces Possible Probe Over Collapse
-----------------------------------------------------------
Chris Vedelago at The Sydney Morning Herald reports that the
administrators of failed construction company Australia's
Residential Builder have warned that "substantive investigations"
will be needed to determine responsibility for its collapse, which
has so far cost creditors more than AUD7.2 million.
SMH relates that the wind-up of the Port Melbourne-based firm --
approved by creditors earlier this month -- comes as administrator
Hamilton Murphy cancelled building contracts for 70 homes, leaving
buyers scrambling to find replacement builders.
Michael Caspaney of Hamilton Murphy declined to comment on any
potential investigation when contacted by BusinessDay, the report
relays.
But the minutes of a creditors' meeting filed with the corporate
regulator show preliminary inquiries had "identified potential
offences" that could be investigated by liquidators, SMH relates.
SMH adds that the Tax Office has also flagged concerns about
transactions made to "the Partners IP account".
Questions have also been raised about the circumstances under
which one of the directors, Robert Wiederstein, resigned before
the company's collapse in early August, SMH reports citing
documents filed with the Australian Securities and Investments
Commission.
MANUFACTURING INDUSTRY: Clifton Hall Appointed as Liquidators
-------------------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed as
Joint and Several Liquidators of Manufacturing Industry Skills
Advisory Council South Australia Inc.
REDBANK POWER: In Receivership After Debt Revamp Deal Fails
-----------------------------------------------------------
Brett Cole at Business Spectator reports that Redbank Power
Station, the 151-megawatt coal-fired power station in New South
Wales' Hunter Valley, has gone into receivership after
negotiations on restructuring its AUD192.7 million of debt broke
down as Redbank's cash flow couldn't meet its creditors' repayment
schedule.
Creditors have been in discussion with Redbank since 2010, the
report says.
"The operation of the power station will continue as normal," a
statement obtained by Business Spectator said. "The secured
creditors have signaled their intention to work constructively
with the receivers of the power station."
Redbank's net cash from operating activities fell to
AUD7.2 million in 2013 compared with AUD13.5 million in 2012,
Business Spectator said citing Redbank's annual report. The
company's cash and cash equivalents fell to AUD5.4 million this
year compared with AUD16.6 million last year.
In June and July this year, Merrill Lynch bought about 4 per cent
of Redbank's debt from Bankwest and 21 per cent of the debt of
Bank of Scotland International, the report discloses.
Business Spectator reports that KordaMentha's Martin Madden and
Janna Robertson have been appointed receivers of Redbank Project
Ltd and Redbank Construction Ltd. The appointment of receivers did
not include the ASX-traded Redbank Energy Ltd, the statement said.
VIRGIN AUSTRALIA: Fitch Expects to Rate Class C Notes at 'B+'
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Fitch Ratings expects to assign the following expected ratings to
Virgin Australia's proposed enhanced equipment notes (EEN), series
2013-1 (VA 2013-1) subject to review of final documents:
-- $474.0 million Class A Notes (A-Tranche) with an expected
maturity of October 2023 'A(EXP)';
-- $120.7 million Class B Notes (B-Tranche) with an expected
maturity of October 2020 'BB+(EXP)';
-- $137.9 million Class C Notes (C-Tranche) with an expected
maturity of October 2018 'B+(EXP)';
The final legal maturities for the Class A and B notes are
scheduled to be 18 months after the expected maturities.
The ratings reflect the application of Fitch's criteria for rating
aircraft enhanced equipment trust certificates (EETC). Key ratings
considerations include the quality of the aircraft collateral,
significant overcollateralization, the Australian and New Zealand
insolvency regimes coupled with the transaction's underlying
structure, the liquidity facilities, Virgin Australia Holdings
Limited's (VAH, not rated) credit quality, and various additional
structural elements.
Fitch also noted such positive credit factors as low balloon
payments for all tranches, short 7.0 year and 5.0 year expected
maturities for the class B and the class C notes with weighted
average maturities of 3.3 and 2.8 years, respectively, and rapid
amortization of the notes resulting in significant LTV
improvements for all tranches within one to two years.
This is the first EETC-type transaction relying on the Australian
insolvency regime, which is different in key aspects compared to
the Section 1110 and Cape Town Convention (CTC, which incorporates
most elements of Section 1110 protection in countries that have
ratified the treaty) legal frameworks seen in most EETCs. Even
though Australia signed the CTC into law in late June of 2013, its
implementation will not be completed prior to the issuance of the
notes. The CTC rules are not expected to apply retroactively and
VA 2013-1 will be governed under the current Australian insolvency
law. New Zealand is a CTC signatory and the CTC will cover the six
aircraft in this transaction that are leased in New Zealand.
Transaction Overview
This will be VAH's first EEN transaction, and the structure
largely follows the U.S. EETC template (SPV, debt tranching,
liquidity facility, cross-provisions, etc.) with aircraft
collateral and initial LTVs comparable to recent EETCs. The
structure crosses three legal jurisdictions (Australia, New
Zealand, and the United States) and it contains several SPVs. All
of the aircraft to be included in the VA 2013-1 transaction are
currently owned by subsidiaries of VAH and will be unencumbered by
existing debt within several months of the time the transaction
prices and immediately prior to delivery into the transaction.
Through this transaction VAH will refinance some existing debt and
generate some additional funds for general corporate purposes.
The issuer will be Perpetual Corporate Trust Limited, an
Australian company acting solely in its capacity as trustee for
the Class A, B, and C trusts (EEN Trusts). The proceeds of the
proposed EEN transaction will be used to acquire the underlying
equipment notes from Virgin Australia 2013-1 Issuer Co Pty Ltd (VA
2013-1 Issuer), an Australian special purpose entity which will be
an indirect wholly-owned subsidiary of VAH. VA 2013-1 Issuer will
own a pool of 24 aircraft (21 737-800s, two 737-700s and one 777-
300ER). It is anticipated that the issuance of the equipment notes
and the delivery of each aircraft into the transaction will occur
simultaneously.
As the equipment notes are issued, VA 2013-1 Issuer will purchase
the underlying aircraft from VAA/VA LeaseCo. VA 2013-1 Issuer will
lease the aircraft to various indirect wholly-owned subsidiaries
of VAH and its affiliate Virgin Australia International Holdings
Pty Ltd (VAIH) (finance leases). Six of the leased aircraft are
expected to be sub-leased (operating leases) to Virgin Australia
Airlines (NZ) Limited, a subsidiary of VAIH organized under New
Zealand law, pursuant to a separate sub-lease agreement. The
aggregate payments of leases will cover the interest and principal
payments on the equipment notes which will be passed through to
make corresponding payments on the notes issued by VA 2013-1. VAH
will guarantee obligations under the equipment notes, as well as
obligations under lease and sub-lease agreements. The purpose of
the various transactions is to create a favorable structure in the
context of the Australian and New Zealand insolvency regimes, as
discussed below.
Security for the EEN's will consist of all of the assets of the
issuer (in its capacity as trustee of the EEN trust) and the EEN
Trusts, consisting mainly of the equipment notes. Security for the
equipment notes will consist of all of the assets of VA 2013-1
Issuer, including the aircraft, as well as the assets of several
other VAH subsidiaries.
The proceeds from the offered notes will initially be held in
escrow by Credit Agricole (rated 'A'/'F1' with a Stable Outlook)
the designated depository, until the aircraft are delivered.
The A-Tranche will feature a 10-year tenor and an initial LTV (per
the offering circular) of 55.5%. Fitch calculates the initial LTV
at 60.3% using values from an independent appraiser. The B-Tranche
will feature a seven-year tenor and an initial offering circular
LTV of 69.7%. Fitch calculates the initial B-Tranche LTV at 75.6%.
The C-Tranche will feature a five-year tenor and an initial
offering circular LTV of 85.8%. Fitch calculates the initial C-
Tranche LTV at 93.3%. The weighted average (WA) lives for the A-
Tranche, the B-Tranche and the C-Tranche are 4.0 years, 3.3 years
and 2.8 years, respectively. Overall, the valuations Fitch used to
calculate initial LTVs were approximately 9% below the appraisals
(lower of mean or median) in the transaction documents.
Key Rating Drivers
Strong Collateral Pool (Tier 1 aircraft): The transaction will be
secured by a perfected first priority security interest in 24 Tier
1 aircraft: 21 737-800s, two 737-700s and one 777-300ER. The
aircraft vintages range from 2003 to 2011, making the initial age
of the pool older than in most recent EETCs. Fitch considers the
737-800 to be the highest quality Tier 1 narrow body aircraft due
to its wide user base, large number of aircraft in service, and
single engine option. The popularity of this aircraft mitigates
the risk of remarketing/re-selling the planes in the event of a
bankruptcy/rejection by VAH. The 777-300ER is also a strong Tier 1
aircraft which is considered the most popular wide body aircraft
in use. The 737-700 is also a Tier 1 aircraft, with 1,096 aircraft
delivered as of September 2013.
The quality of the collateral remains strong throughout the life
of transaction as older aircraft gradually drop out of the pool,
maintaining the weighted average age of the pool below 12 years
throughout the majority of the transaction's life. Additionally,
all aircraft are expected to be phased out of the pool before
reaching 15 years of age, the point at which aircraft migrate from
Tier 1 to Tier 2 in Fitch's analysis. The first two aircraft drop
out in Oct. 2015 (two 737-700s). Thereafter, the aircraft drop out
of the collateral gradually with four in Oct. 2017, seven
(including the 777-300ER) in Oct. 2018, four in Oct. 2019, one
each in Oct. 2020 and Oct. 2021, and three more in Oct. 2022. As
the older collateral begins to fall out of the pool, the average
age of the pool improves, leaving the newer and more attractive
aircraft in the pool towards the end of the transaction's life.
Amortization Profile: VA 2013-1 features a rapid amortization
schedule and low balloon payment for the A-Tranche, resulting in a
rapid decline of the collateral LTV and significant improvements
in the transaction's overcollateralization. Within three years
from the issuance, Fitch's base value LTVs will decline to
approximately 44% from 60% for the A-Tranche, 53% from 76% for the
B-Tranche and 62% from 93% for the C-Tranche. This compares
favorably to recently issued EETC transactions which tend to
feature balloon payments of approximately 30% to 35%,
significantly reducing the pace of LTV improvement. Even though
the maturities of VA 2013-1's tranches are comparable with those
of the recently issued EETC transactions, the low balloon payment
results in significantly shorter WA lives. For instance, the 4.0
year WA life for A-Tranche is approximately five years shorter
than an approximately nine years WA life for a typical EETC A-
Tranche.
High Affirmation Factor: The relatively large percentage of the
company's primary aircraft type contained in this transaction
makes it unlikely that the company would reject the pool in the
case of administrative proceedings, in Fitch's view. The 737-800
is VAH's main aircraft type, fitting well with the airline's
primarily short-haul business profile. The importance of the 737-
800 to VAH is supported by the company's order book, which
consists mainly of 737's, other than a few A320's on order at a
recently-acquired subsidiary. The 21 737-800 aircraft in the VA
2013-1 pool represent approximately 30% of VAH's current 737-800
fleet. The total pool of 24 aircraft makes up 18% of VAH's fleet
of 133 aircraft excluding Tigerair's eleven A320s. This
constitutes the highest fleet percentage among recent EETC
transactions, which have generally contained between 2 - 4% of the
issuer's total fleet.
The transaction's percentage of the fleet is projected to decline
to below 4% beginning 2021, weakening the affirmation factor of
the remaining pool as the transaction ages; however Fitch believes
this is mitigated by the low expected LTVs at that time. The
pool's characteristics and composition are consistent with those
of VAH's fleet as a whole, with the average age of the pool at 6.4
years, slightly younger than the average age of VAH's full fleet
of approximately 6.8 years.
Cross-default and Cross-collateralization Provisions: All
equipment notes are fully cross-collateralized, and all indentures
and leases will be cross-defaulted from the beginning of the
transaction, limiting VAH's ability to 'cherry-pick' aircraft
within this EEN. The rest of VAH's fleet is largely financed
through bank debt and other sources of funding, where the aircraft
are not cross-collateralized. The large percentage of other
aircraft in VAH's fleet that are not subject to cross
collateralization/cross default provisions supports the high
affirmation factor.
Liquidity Facilities: The Class A and Class B certificates will
benefit from 18-month liquidity facilities provided by Natixis
(rated 'A'/'F1' with a Stable Outlook).
A-Tranche Rating
The A-Tranche rating is primarily driven by a top-down analysis
which evaluates the level of overcollateralization and likely
recovery in a stress scenario. The initial offering circular loan-
to-value ratio (LTV) is listed at 55.5%, and the maximum LTV
produced by Fitch's 'A-rating' stress scenario is 94.8%, which
implies a significant amount of cushion for senior tranche note
holders. The ratings are also supported by a strong collateral
package consisting of Tier 1 aircraft, an 18-month liquidity
facility, cross-collateralization/cross-default features, and
Fitch's assessment of the Australian and New Zealand insolvency
regimes. The rating incorporates a secondary dependence on the
credit quality of VAH as the guarantor of the equipment notes and
the lease payments of its indirect wholly owned subsidiaries as
the obligors under the leases.
VA 2013-1 benefits from strong collateral as the bulk of the pool
consists of 737-800s, which are generally considered the most
liquid collateral in the aircraft finance industry; a strong
affirmation factor as the pool of the collateral represents nearly
18% of VAH's total fleet; short weighted average life of the
transaction at 3.7 years; and moderate diversification of the pool
by inclusion of a 777-300ER and two 737-700 aircraft. The
transaction features a low 2% balloon payment driven by the
maturity schedule of the underlying equipment notes with the
largest quarterly payment equaling approximately 9.9% of the
initial balance of the notes and 8.4% of the collateral's offering
circular base value.
Stress Case: Fitch's stress analysis assumes that all aircraft are
rejected in a severe global aviation downturn. The analysis
incorporates a full draw on the liquidity facilities (increasing
the LTV by roughly 6.4%) and an assumed repossession/remarketing
cost of 5% of the total portfolio value. Various haircuts are then
applied to the aircraft values according to Fitch's assessment of
the quality of the collateral. As all aircraft in this transaction
are considered to be Tier 1 collateral, Fitch's analysis
incorporates a value stress range of 20 - 30% for the A-rating
level test, which this transaction passes.
Additionally, Fitch uses its own depreciation assumption of
5%/year for the younger aircraft in the portfolio and 6%/year as
the aircraft age beyond 10 years. This compares to blended
depreciation rates utilized in the transaction documents of
roughly 3.8% at the beginning of the transaction, increasing to
between 4 - 5% as the deal ages.
The newer vintage 737-800s (2010 - 2011, 30% of the collateral
pool value) receive a 20% haircut in Fitch's stress case. Fitch
applied a 25% stress to the 2003-2005 vintages (47% of the pool)
to account for higher price volatility of the older aircraft. The
737-800 is considered the strongest tier one aircraft due to its
large operator base and the size of the active fleet (more than
2,600 aircraft in service with more than 130 operators). Boeing's
current backlog for the model stands at 1,370 planes as of the end
of September, not including the popular new MAX version. The
popularity and wide user base of this aircraft are well above
nearly any other model (aside from the A320) on the market, making
it one of the highest grades of collateral available to back an
EETC.
The 777-300ER (18% of the collateral pool) received a 30% haircut,
or the high-point of the Tier 1 stress range. Fitch considers the
777-300ER a solid Tier 1 aircraft, but applies a harsher stress
level to account for the greater historical volatility experienced
by wide-body jets compared to the most popular narrow bodies. The
777-300ER is the best-selling aircraft of its size with a diverse
base of global operators, solid backlog and limited competition.
With an average age of 3.8 years, the 777-300ER is relatively
young in its life cycle, with no replacement aircraft in near
term, although Fitch expects Boeing to officially launch the 777X,
with delivery likely in the 2019 - 2020 timeframe. While Airbus'
A350-1000 will feature a longer range and lower fuel consumption
and is expected to compete with the 777-300ER, its first delivery
is not expected until 2017.
The 737-700s (5% of the collateral pool) receive a 25% haircut.
Although Fitch considers the 737-700 to be a solid Tier 1 aircraft
due to its wide user base and considerable market penetration
(more than 1,000 aircraft in service with roughly 74 operators),
the middle of the Tier 1 stress range is applied to reflect higher
popularity of 737-800s.
These assumptions produce a maximum stress LTV of 94.8% throughout
the life of the transaction, suggesting full recovery for the A-
Tranche holders. The highest stress LTV occurs immediately upon
issuance and declines throughout the life of the transaction due
to the pool's weighted average age of 6.4 years and the rapid
scheduled amortization of A-Tranche notes. The A-Tranche stressed
LTV declines faster than those of recent EETC transactions due to
the rapid amortization and a low balloon payment percentage. Fitch
expects VA 2013-1's LTV to decline to approximately 60% by the end
of four years since the date of issuance under Fitch's 'A' level
stresses as compared to a stressed LTV of approximately 80% for
recent EETC transactions. The stressed LTV for the A-Tranche is
expected to remain around 60% from 2018 to 2020, gradually
declining thereafter to 39% by expected maturity.
Fitch's analysis considers the potential impact on 737NG
(including the -800 and -700) valuations from Boeing's new 737 MAX
family, which had accumulated 1,567 orders through the end of
September. Final assembly for the MAX should begin in 2015, with
first flight in 2016 and entry into service in the third quarter
of 2017. VAH ordered 23 MAX aircraft in July 2012, and deliveries
will reportedly be in the 2019 - 2021 timeframe.
Fitch believes that the NG's fleet size and large operator base
will mitigate the MAX impact on NG valuations, possibly into the
next decade. The NG continues to perform well, with an order
backlog of 1,900 aircraft (1,370 for the -800) as of the end of
September. Delivery slots are scarce, and production rates are
scheduled to increase to 42/month in the first half of 2014, up
from the current rate of 38/month. Orders continue to be healthy,
including 305 through September for the 737-800, with 175 of those
coming from a large Ryanair booking.
B-Tranche Rating
The 'BB+' rating for the B-Tranche is based on an estimated uplift
compared with VAH's stand-alone credit profile, largely based on a
high affirmation factor and availability of the liquidity
facility, as discussed above. The affirmation factor for this pool
is considered high and Fitch believes that the likelihood of these
aircraft being affirmed in a restructuring scenario effectively
reduces the B-Tranche probability of default compared to VAH's
credit profile. The rating is also supported by the Class B note
holders' right in certain cases to purchase all of the Class A
notes at par plus accrued and unpaid interest. Additionally, the
interest payments on the Class B notes are senior to the principal
distributions to the Class A notes.
C-Tranche Rating
The 'B+' rating for the C-Tranche is based on an estimated uplift
compared with VAH's stand-alone credit profile, largely based on a
high Affirmation Factor and expected collateral recovery
prospects. While the affirmation factor for this pool is
considered high, collateral coverage for the C-Tranche is
considered weak, which combined with the absence of a liquidity
facility supports the rating differential from the B-Tranche. The
rating is also supported by the Class C note holders' right in
certain cases to purchase all of the Class A notes and Class B
notes at par plus accrued and unpaid interest. Additionally, the
interest payments on the Class C notes are senior to the principal
distributions to the Class A and B notes.
Legal Framework
Bankruptcy/insolvency law is a key component of Fitch's aircraft
EETC rating methodology. Fitch's EETC rating approach largely
rests on creditors' ability to quickly repossess aircraft, and the
influence this has on airlines' incentive to affirm aircraft in
bankruptcy (while paying all interest and principal on time and in
full). Section 1110 of the U.S. Code (which offers unique legal
protection to aircraft creditors in U.S.) and the CTC are two
examples of legal frameworks applied in Fitch's EETC rating
methodology.
The VA 2013-1 transaction is governed by both Australian law and
the CTC in New Zealand. Fitch's legal analysis focused on the
Australian insolvency regime for EEN trusts, the equipment notes,
and the Australian leases. The analysis focused on the CTC for the
New Zealand sub-leases (six out of 24 aircraft).
Fitch considers Australia's general insolvency regime to be strong
and reliable for creditors, including definite time periods for
repossession of the collateral during an insolvency process if
certain structures are in place. However, Fitch notes that there
are no special carve-outs for aviation assets similar to 1110 or
the CTC. The Australian legal framework and several structural
elements of the transaction provide significant credit protection,
making possible the application of Fitch's EETC criteria to this
transaction.
Fitch believes Australia's legal framework combined with the
structure of this transaction create a situation similar to
Section 1110/CTC as it allows creditors access to collateral in
the event of insolvency. Under Australian insolvency law, a
creditor with security from all or substantially all of a debtor's
assets is known as a 'substantial chargee' and has the ability to
enforce its security within 13 business days of the beginning of
an administration without the approval of the court or the
administrator. In this transaction the Security Trustee is a
substantial chargee over the equipment note issuer.
In addition, there are creditor protections at the lease level in
this transaction. For leased assets, an administrator has five
business days to decide whether to keep or reject an aircraft and
will become personally liable for the lease payments attributable
to the period from the end of five business days after the
administration until the end of the administration or return of
the aircraft. Repossession in Australia is expected to take
approximately one to two months with an additional 10 days if
court orders are required.
Fitch believes the Australian insolvency regime is slightly less
beneficial to note holders than Section 1110 or the CTC, although
the ratings in this transaction were not affected. The Australian
regime is not aircraft-specific, unlike Section 1110 and the CTC.
Also, the structure in this transaction has not been tested in
court to the extent that Section 1110 has been tested. Finally,
the Australian insolvency regime does not have a cure requirement,
unlike Section 1110/CTC. If a distribution date falls within the
five business day decision period (described above) and the
decision was made to retain the aircraft and continue paying rent,
the administrator does not have an obligation to cure the default
during the prior period. VA 2013-1's structure addresses the lack
of a cure requirement as the liquidity provider would step in to
pay uncured interest and future excess lease payments will flow
through the waterfall first to pay the liquidity provider, and
thereafter to pay outstanding principal.
While Fitch concluded that with VA 2013-1's specific structure the
EETC would work in Australia, Fitch believes that this type of
structure would not likely work in other countries with less
proven, more debtor-friendly legal systems.
Fitch views the creditor protection provided by CTC as ratified in
New Zealand to be similar to the legal protection provided by
Section 1110 in the U.S. New Zealand adopted Article XI,
Alternative A of the CTC with a 60 day waiting period. However,
the CTC has yet to be tested in New Zealand courts, adding some
uncertainty, but Fitch does not view this as a significant concern
given the reliability of its legal system.
Rating Sensitivities
Fitch does not expect positive rating actions for the senior
tranche. Potential ratings concerns for the senior tranche
primarily consist of unexpected declines in aircraft values. For
the 777-300ER, Fitch is concerned by the possible devaluation of
the aircraft following the introduction of A350-1000 and 777-9X.
Similarly, the values of 737-800 could eventually be impacted by
the introduction of A320 NEO and 737-8 MAX. Fitch does not expect
these risks will have a material impact on market values in the
near-to-intermediate term. The ratings of the subordinated
tranches are influenced by Fitch's view of VAH's credit quality. A
negative rating action could be considered if Fitch believes VAH's
credit profile weakens.
Pre-sale Report: Fitch will publish a pre-sale report for VA 2013-
1, which will be available at www.fitchratings.com.
Fitch expects to assign the following ratings:
Virgin Australia Enhanced Equipment Notes 2013-1
-- Class A Notes 'A(EXP)';
-- Class B Notes 'BB+(EXP)';
-- Class C Notes 'B+(EXP)'.
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C H I N A
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CHINA AUTO: Gets Nasdaq Listing Non-Compliance Notice
-----------------------------------------------------
China Auto Logistics Inc. on Oct. 3 disclosed that it received a
letter from the Listings Qualification Department of the Nasdaq
Stock Market ("NASDAQ") stating that on September 27, 2013, for
the previous 30 consecutive business days, the market value of
publicly held shares ("MVPHS") of the Company's common stock had
closed below the minimum $5 million requirement for continued
inclusion on The Nasdaq Global Market pursuant to Nasdaq Listing
Rule 5450(b)(1)Copyright.
The letter states that the Company will be provided 180 calendar
days, or until March 26, 2014, to regain compliance with the
minimum MVPHS requirement. In accordance with Rule 5810(c)(3)(D),
the Company can regain compliance if at any time during the 180-
day period the closing MVPHS is at least $5 million for a minimum
of 10 consecutive business days. In the event the Company does
not regain compliance with the MVPHS requirement prior to March
26, 2014, the Common Stock will be subject to delisting.
The Company said it intends to monitor the MVPHS of the Common
Stock and may, if appropriate, consider implementing available
options to regain compliance or submitting an application to
transfer to The Nasdaq Capital Market. However, there can be no
assurance that the Company will be able to regain compliance or
successfully transfer to The Nasdaq Capital Market.
Mr. Tong Shiping, Chairman and CEO of the Company, stated, "We
remain committed to growing our business in the Chinese luxury
auto market where we continue to be a significant player. We
further believe that at some point investors will recognize our
strengths and value our shares more realistically."
About China Auto Logistics
China Auto Logistics Inc. -- http://www.chinaautologisticsinc.com/
-- is one of China's top sellers of imported luxury vehicles, and
also manages China's largest imported auto mall in Tianjin.
CHINA CABLECOM: Incurs $20.7-Mil. Net Loss in 2011
---------------------------------------------------
China Cablecom Holdings, Ltd., filed on Oct. 2, 2013, its annual
report on Form 20-F for the fiscal year ended Dec. 31, 2011.
UHY Vocation HK CPA Limited, in Hong Kong, said the Company has
incurred significant losses during 2011, 2010 and 2009, and has
relied on debt and equity financings to fund their operations.
The independent auditors noted that these conditions raise
substantial doubt about the Company's ability to continue as a
going concern.
The Company reported a net loss of $20.7 million for the year
ended Dec. 31, 2011, compared to a net loss of $14.4 million for
the year ended Dec. 31, 2011.
Management fee income for the year ended Dec. 31, 2011, were
$4.6 million, an increase of $0.1 million from $4.5 million for
the year ended Dec. 31, 2010.
"From September 2011, the business operation in Binzhou
Broadcasting was suspended as a result of the Government of
Shandong Province's initiatives to consolidate all cable operators
within the province into Shandong Broadcasting and Television
Network Co., Ltd. The Company has not reached any settlement
agreement with either Binzhou SOE or Shandong Broadcasting and
Television Network Co., Ltd., by the time of this report and
decided to make a full provision of $9.8 million on its investment
in Binzhou Broadcasting."
The Company's balance sheet at Dec. 31, 2011, showed $52.4 million
in total assets, $44.4 million in total liabilities, and
shareholders' equity of $8.0 million.
A copy of the Form 20-F is available at http://is.gd/SvIpL5
Prior to March 2012, China Cablecom Holdings, Ltd., was a joint-
venture provider of cable television services in the PRC,
operating in partnership with a local state-owned enterprise
authorized by the PRC government to control the distribution of
cable TV services ("SOE"). The Company acquired the networks it
previously operated in Binzhou, Shandong Province in
September 2007 and in Hubei Province in June 2008 by entering into
a series of asset purchase and services agreements with companies
organized by SOEs owned directly or indirectly by local branches
of the State Administration of Radio, Film, and Television (SARFT)
to serve as holding companies of the relevant businesses.
Following the recent disposal of its interest in the Hubei network
and suspension of operations in Binzhou, the Company is a dormant,
non-operating company.
China Cablecom Holdings, Ltd., is headquartered in Jinan, People's
Republic of China.
CHINA PRECISION: To Report $69 Million Net Loss in Fiscal 2013
--------------------------------------------------------------
China Precision Steel, Inc., disclosed in a regulatory filing with
the U.S. Securities and Exchange Commission that current assets
declined by approximately $59 million, or 51 percent, year-on-
year, to approximately $56 million as of June 30, 2013. In
addition, net loss increased by approximately $52 million, to
approximately $69 million for the year ended June 30, 2013,
compared to approximately $17 million for the year ended June 30,
2012. The increase in net loss is attributable to a combination
of the factors, including a material decline in sales revenues, a
negative gross profit margin, and a substantial allowance for bad
and doubtful debts.
The Company was unable, without unreasonable effort or expense,
able to file its annual report on Form 10-K for the fiscal year
ended June 30, 2013, by Sept. 30, 2013. The Company anticipates
that it will file its Form 10-K within the "grace" period provided
by Securities Exchange Act Rule 12b-25.
About China Precision
China Precision Steel Inc. is a niche precision steel processing
company principally engaged in the production and sale of high
precision cold-rolled steel products and provides value added
services such as heat treatment and cutting medium and high
carbon hot-rolled steel strips. China Precision Steel's high
precision, ultra-thin, high strength (7.5 mm to 0.05 mm) cold-
rolled steel products are mainly used in the production of
automotive components, food packaging materials, saw blades and
textile needles. The Company primarily sells to manufacturers in
the People's Republic of China as well as overseas markets such
as Nigeria, Thailand, Indonesia and the Philippines. China
Precision Steel was incorporated in 2002 and is headquartered in
Sheung Wan, Hong Kong.
China Precision reported a net loss of $16.94 million for the
year ended June 30, 2012, compared with net income of $256,950
during the prior fiscal year.
For the nine months ended March 31, 2013, the Company incurred a
net loss of $28.59 million on $22.68 million of sales revenues, as
compared with a net loss of $7.93 million on $105.32 million of
sales revenues for the same period a year ago.
The Company's balance sheet at March 31, 2013, showed $163.25
million in total assets, $70.61 million in total liabilities, all
current, and $92.63 million in total stockholders' equity.
Moore Stephens, in Hong Kong, issued a "going concern"
qualification on the consolidated financial statement for the
year ended June 30, 2012. The independent auditors noted that
the Company has suffered a very significant loss in the year
ended June 30, 2012, and defaulted on interest and principal
repayments of bank borrowings that raise substantial doubt about
its ability to continue as a going concern.
MOUNTAIN CHINA: Posts Net Loss of C$5.51 Mil. in 2nd Qtr. 2013
--------------------------------------------------------------
Mountain China Resorts (Holding) Limited CA recently reported its
financial results for the quarter ended June 30, 2013. MCR
reports its results in Canadian Dollars.
Financial Results
Total revenue and the net results for the Reporting Period were
from resort operations with no real estate sales revenue. The
Company's resort operations business at its Sun Mountain Yabuli
Resort is seasonal and there is typically little or no revenue
generated in the second quarter because winter operations usually
end in the first quarter and summer operations do not start until
the third quarter.
For the quarter ended June 30, 2013, the Company generated
revenues from resort operations of $0.08 million and a net loss of
$5.51 million or $0.02 per share compared to $0.025 million and a
net loss of $3.7 million or $0.01 per share in 2012 Q2. Resort
Operations EBITDA from continuing operations for the second
quarter of 2013 were ($0.85 million) compared to $1.4 million last
year. The lower EBITDA and net loss in the Reporting Period
compared to the previous year was because in the second quarter of
2012, the Company received a $2.2 million insurance compensation
for certain equipment damage and that was included as other income
for that period.
Resort operations expenses from continuing operations totaled
$0.74 million for the quarter ended June 30, 2013 compared to
$0.68 million in 2012. Operations expenses within the resorts are
mainly attributable to snow making, grooming, staffing, fuel and
utilities, which also include the G&A expenses relating to the
resort's senior management, marketing and sales, information
technology, insurance and accounting.
Other income for the Reporting Period totaled $0.09 million
(2012:2.3 million), which mainly consisted of income recognized
from the deposit by Club Med of $0.08 million. As mentioned
earlier, for the same period in 2012, a major portion of other
income included a $2.2 million insurance compensation received for
the damage to Gondola B as well as $0.08 million recognized from
the deposit by ClubMed.
Corporate general and administrative expenses totaled $0.29
million for the Reporting Period compared to $0.31 million in
2012. This amount mainly comprised executive employee costs,
public company costs, and corporate information technology costs.
Depreciation and amortization expense from continuing operations
totaled $2.77 million for the quarter ended June 30, 2013 compared
to $2.96 million in 2012.
The Company incurred financing cost of $1.58 million for the
Reporting Period from continuing operations compared to $1.85
million in 2012. Financing costs were mainly related to the loan
interests, and also included bank administrative fees, and service
charges.
Cash and cash equivalents totaled $9.97 million and the Company
has a working capital deficiency of $72.76 million as at June 30,
2013.
Sun Mountain Yabuli - Real Estate Development
At the end of Fiscal 2010, the Company had finished working on the
exterior decoration of the 55 villas of which three were completed
with interior finishing. At the time of this release, certain
construction is still needed on the exterior grounds to complete
lighting, roads and utility connections. As of June 30, 2013, the
Company had not been successful in selling any of the villas.
Management is of the opinion that in order to complete sales it is
necessary to first complete the exterior construction. Management
estimates these additional construction costs to be $4.70 million
and has plans to commence construction in the autumn of 2013.
Since 2010, due to a combination of temporary Chinese government
policies trying to cool down the rapid growing housing price in
mainland China, the property investment demand have gone down
significantly, which also impacted the Yabuli area. At the same
time, with a tight expense budget and shortage of working capital,
the Company had decided for the time being not to take the risk by
inputting its limited working capital into the villa's remaining
public infrastructure construction (for example:public
lighting)(for example:roads)(for example:landscape engineering)
and a full scale marketing and advertising regime. However, the
Company does have confidence with its first of a kind ski-in and
ski-out villas in China. And the Company will be reasonably
flexible with its pricing when the market shows sign of a turn-
around. No other detail milestones for the above matter are
available from the Company as the related government policies are
set to be temporary but with durations undetermined.
The Company has an accumulated deficit, a working capital
deficiency and has defaulted on a bank loan, which cast a
substantial doubt on the Company's ability to continue as a going
concern. The Company's ability to meet its obligations as they
fall due and to continue to operate as a going concern is
dependent on further financing and ultimately, the attainment of
profitable operations. These consolidated financial statements do
not include any adjustments to the amounts and classifications of
assets and liabilities that might be necessary should the Company
be unable to continue as a going concern. Management of the
Company plans to fund its future operation by obtaining additional
financing through loans and private placements and through the
sale of the properties held for sale. However, there is no
assurance that the Company will be able to obtain additional
financing or sell the properties held for sale.
Despite of the financial difficulty posed by the overdue debts and
continued loss, management is optimistic in the development of
both the industry and the Company in the near future. The
government of Heilongjiang Province has demonstrated welcomed
signs of supporting the skiing industry and the Company by
increasing local infrastructure investment and potentially
providing a bank loan interest subsidy scheme. Recently in
August the Company was advised by Harbin Commercial Bank that they
had approved to extend the repayment schedule of its loan to the
Company with an outstanding balance of $23,982 (RMB140 million)
from 3 years to 10 years. As a result, the Company's current
working capital deficiency will be decreased by approximately 15%
in the next quarter. Revenue from ClubMed had been growing
steadily, and the Company will be the official partner and the
venue to host the 2016 World Championships of Snowboarding.
Management are also working on various means to attract new
investment into the Company to complete the construction of villas
and improve the capital structure of the Company.
SUBSEQUENT EVENTS
Bank Loans - Harbin Commercial Bank
As mentioned earlier, in August of 2013, the Company was advised
by Harbin Commercial Bank that it had approved to extend the
repayment schedule of its loan with an outstanding balance of
$23,982 (RMB140 million) from 3 years to 10 years. The original
bank loan was made on February 14 2012, and carried a three year-
term with a maturity date of February 15, 2015 and a fixed annual
interest rate of 7.315%.
According to the revised terms, the loan will now mature in
December, 2022. The first installment of $514 (RMB3 million) is
repayable in August 2013, and thereafter the Company will need to
repay $2,398 (RMB14 million) each year for eight consecutive
years, and $4,283 (RMB 25 million) in the final year. The Company
made payment of the first installment of $514 (RMB3 million) in
August of 2013.
Beijing Lianhua Mountain Skiing Field
In August the Company was awarded an arbitration decision from the
China International Economic and Trade Arbitration Commission
("CIETAC") in Beijing on the dispute over the sale of shares in
Beijing Lianhua Mountain Skiing Field Co., Ltd., which decision
orders, among other things, that 100% of the shares in Beijing
Lianhua be transferred back to the Company. The Company is in the
process of instructing its Chinese law firm to work on the
transfer of the ownership of Beijing Lianhua back to the Company.
On December 12, 2008, the Company entered into a Share Purchase
Agreement between Jilin Wahaha Drinking Water Co., Ltd. and the
Company and a Guaranty Contract between Jilin Lianhua Mountain
Group Co., Ltd. and the Company for the sale of Beijing Lianhua to
the Purchaser at the price RMB 28,320,000. The Purchaser
defaulted in 2011 on its initial payment obligations. As a
result, the Company applied to CIETAC for an arbitration for the
return of the Beijing Lianhua shares due to the default of the
Purchaser.
The Purchaser also defaulted on its payment obligations to the
Company under a separate purchase agreement for the sale of Panshi
Lianhua Mountain Skiing Field Co., Ltd. to the Purchaser. The
Company intends to continue its demand for the purchase price
under this transaction.
2013 SECOND QUARTER MAJOR CORPORATE DEVELOPMENTS
Sun Mountain Yabuli Resort Preparing for its Second Summer
Operations
As the 2012-2013 winter operations ended in March, there were no
resorts operations in the second quarter. The 2013 summer
operations started on July 5th, and finished on August 17th.
Preparation work such as staffing, procurement, sanitation and
equipment maintenance were undertaken in the second quarter.
Updates on Loan Defaults
On March 31, 2013 the Company defaulted on its third principal
payment of $6.85 million (RMB40 million) under its $42.83 million
(RMB250 million) loan agreement with the China Construction Bank.
According to the Loan Agreement between Yabuli and Construction
Bank, Construction Bank has the right to accelerate Yabuli's
obligation to repay the entire unpaid principal plus interest
immediately and to take legal actions to enforce on the security.
Subsequently in August of 2013, the Company was made aware by the
Higher People's Court of Heilongjiang Province that Construction
Bank had commenced formal legal action against Yabuli to demand
repayment. As of June 30, 2013, the principal and interest owing
under the Construction Bank loan was $44.2 million, and the
collaterals associated with the loan agreement are made up of the
Company's land use rights and property and equipment with a
carrying value of approximately $67.38 million. The outcome of
this lawsuit cannot be accurately estimated at the time. The
Company has been negotiating with Construction Bank to arrange for
a debt restructuring plan, and as of the date of this release, no
consensus has been arrived yet.
Updates on Melco Debt Restructuring
On February 8, 2012, the Company entered into a Debt Settlement
Agreement with Melco Leisure and Entertainment Group Limited for
the settlement of a loan in the principal of US$12 million made by
Melco to the Company and a loan in the principal of US$11 million
made by Melco to Mountain China Resorts Investment Limited, the
Company's Cayman subsidiary, both in 2008. On May 29, 2012, the
Company and Melco entered into Amended and Restated Debt
Settlement Agreement to clarify details of the loan settlement
mechanism and procedures to implement the settlement of the Melco
Loans. Detailed settlement arrangement can be found in Note 13 of
the Company's Interim Consolidated Financial Statements for the
Reporting Period. On July 10, 2012, during the Company's Annual
General Meeting, the Company obtained Shareholder Approval on the
Agreement. The transactions contemplated under the Agreement have
been approved by the TSX Venture Exchange. Settlement procedures
were started in the second quarter of 2013, and the Company paid
$3,01 million to MLE on May 31, 2013 as a partial fulfilment to
its cash repayment obligation specified in the Agreement. As of
the date of this news release, management are still in negotiation
with MLE to proceed on the remaining parts of the settlement.
Update on Changchun Resort
On November 17, 2010, the Company announced its updates with
respect to certain developments with respect to its Changchun
Resort. The government of Erdao district of Changchun city in the
Jilin province of the People's Republic of China holds the view
that the Changchun Resort, is still owned by the government and it
may, through Changchun Lianhua Mountain Agricultural Project
Development Company Limited, manage the same to the Company's
exclusion. The Company disagrees with the Erdao Government's
position. However, because of CCL Agricultural's and the Erdao
Government's actions, the Company has been deprived of management
of the Changchun Resort.
As a result of the foregoing, the Company has lost control of the
Changchun Resort and has therefore written off the full value of
the assets and liabilities of Changchun Resort and reported it as
a loss from discontinued operations as of December 31, 2010. In
2011, the Company commenced legal actions against the Erdao
Government in an effort to regain control and ownership of the
assets and operations.
The Company's legal department has sent three letters of formal
complaint to the Ministry of Commerce of the People's Republic of
China in June 2012, the Erdao Government, and Jilin Lianhua
Tourist Committee. Recently, the Ministry of Commerce of the
People's Republic of China has assigned the case to the relevant
authority named the Economic and Technological Cooperation
Department of Jilin Province for further handling. After a series
of negotiations, no consensus was reached. Management decided to
commence a formal administrative proceeding against the
government. As at June 30, 2013, management had sent several
formal notice letters to the respective government offices, but no
formal proceeding had been started.
Update on Temporary Suspension of Trading
On April 30, 2013, the Company was late in filing its Annual
Filings due to the last minute requests for re-assessment of the
fair value of certain assets including the villas under
construction and goodwill. As a result the Company received a
Cease Trade Order issued by BCSC dated May 8, 2013, and
accordingly TSX Venture Exchange suspended trading in the
Company's securities. Although the CTO was revoked by BCSC on
May 16th, 2013 as the requested Annual Filings were filed on
May 14, 2013, trading in the Company's securities has not been
reinstated by the Exchange as the Exchange was reviewing the
Company's status with respect to its Tier 1 Continued Listing
Requirements and further clarification on status of Beijing
Lianhua Mountain litigation matter, status of bank loan default
and status of the debt settlement arrangement with Melco. The
Company has been notified that an Exchange bulletin will be issued
on reinstatement to trading after the Exchange has satisfactorily
reviewed the Company for reinstatement.
Board Committee Member Change
The Company disclosed that Mr. Wang Lian will replace Mr. Philip
Li's role as the Chairman of the Nomination Committee.
Appointment of Investor Relations Manager
Furthermore, the Company is pleased to announce that the Exchange
has accepted the Company's filing for Ms. Lili Tian as the
Company's Investor Relations Manager. Ms. Tian has worked for the
Company as Investor Relations Manager since April of 2013 and is
based in Beijing China.
About MCR
Headquartered in Beijing, Mountain China Resorts --
http://www.mountainchinaresorts.com-- is a developer of four
season destination ski resorts in China.
================
H O N G K O N G
================
GREENLAND HONG KONG: S&P Raises Corporate Credit Rating From 'B-'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had raised its
long-term corporate credit rating on Greenland Hong Kong Holdings
Ltd. (Greenland HK, formerly SPG Land Holdings Ltd.) to 'BBB-'
from 'B-'. The outlook is stable. S&P also raised its long-term
Greater China regional scale rating on the Chinese real estate
developer to 'cnA-' from 'cnB-'. At the same time, S&P raised its
long-term issue rating on Greenland HK's outstanding senior
unsecured notes to 'BB+' from 'CCC+' and its long-term Greater
China regional scale rating on the notes to 'cnBBB+' from
'cnCCC+'. S&P removed all the ratings from CreditWatch, where
they were placed with positive implications on May 9, 2013.
S&P also assigned its 'BB+' long-term issue rating and its
'cnBBB+' long-term Greater China regional scale rating to
Greenland HK's proposed issue of senior unsecured notes. The
rating on the notes is subject to S&P's review of the final
issuance documentation.
"We raised the ratings on Greenland HK to reflect our opinion that
the company's credit profile has improved significantly because of
support from a much stronger parent," said Standard & Poor's
credit analyst Matthew Kong. This follows Greenland Holding Group
Co. Ltd.'s (Greenland Group; BBB/Stable/--; cnA/--) acquisition of
Greenland HK's predecessor SPG Land Holdings in August 2013.
The rating on Greenland HK is linked to the rating on Greenland
Group. S&P expects the group to remain Greenland HK's controlling
shareholder for the next three to five years at least. The group
currently owns 60% of Greenland HK. S&P applies a top-down
approach to derive the rating on Greenland HK because the
company's stand-alone credit profile is no longer a key rating
consideration. In S&P's opinion, Greenland HK's management and
operation is likely to be highly integrated with Greenland
Group's. The rating is one notch below that on the parent because
S&P views Greenland HK as a "highly strategic" subsidiary but not
a "core" subsidiary of Greenland Group.
"We believe that Greenland HK's role as the sole offshore
financing and investment platform for Greenland Group supports its
highly strategic status within the group," said Mr. Kong. We
expect Greenland Group to expand Greenland HK by injecting
projects in the next three years. Nevertheless, Greenland HK has
had a very short record with Greenland Group.
The issue rating is one notch lower than the long-term corporate
credit rating on Greenland HK. This reflects the uncertainty over
the timing of financial support from Greenland Group to Greenland
HK because of China's exchange and capital controls, and
uncertainty relating to regulatory approvals.
The stable outlook on Greenland HK reflects the outlook on
Greenland Group and S&P's assessment that Greenland HK will remain
highly strategic to the parent.
The stable outlook on Greenland Group reflects S&P's expectations
that the group will maintain its strong market position and good
property sales prospects over the next 12-24 months. S&P also
expects the group to moderately improve its leverage and cash flow
adequacy while pursing rapid expansion.
S&P may upgrade Greenland Hong Kong if it upgrades Greenland Group
or its assessment of Greenland Hong Kong's strategic importance
improves such that S&P believes it is a core part of Greenland
Group.
Conversely, S&P may lower the rating on Greenland Hong Kong if it
downgrades Greenland Group. S&P may also lower the rating if: (1)
it believes that Greenland Hong Kong's importance within Greenland
Group has weakened because of a change in Greenland Group's
strategy; or (2) Greenland Group's control and supervision of
Greenland Hong Kong weakens.
=========
I N D I A
=========
AGARWAL TMT: CARE Rates INR43.5cr LT Bank Loans at 'B'
------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Agarwal TMT
Industries Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 43.50 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Agarwal TMT
Industries Private Limited (ATIPL) is constrained primarily on
account of the project execution risk coupled with the
cyclical nature of the steel industry and volatility in the prices
of raw material. The rating is further constrained by ATIPL's
presence in a highly fragmented long steel products segment of the
steel industry leading to stiff competition and dependence on the
real estate sector.
These constraints far offset the benefits derived from the
resourceful and experienced promoters.
ATIPL's ability to successfully complete the project within the
envisaged time and cost parameters and achieve the envisaged sales
& profitability are the key rating sensitivities.
ATIPL was incorporated in May 2012, by Mr. Rajan Jain, Mr. Sandip
Agarwal, Mr. Sanjay Bindal and Mr. Pradeep Dhandharia. ATIPL is
setting up a plant for the manufacturing of TMT bar, channel,
patta, Patti, MS angles and rounds at Ahmedabad, Gujarat. The
plant will have an installed capacity of 120,000 tonnes per annum.
The overall estimated cost of the project is INR45.24 crore, which
would be funded by debt of INR23.50 crore and the remaining
through promoter's infusion (INR17 crore through equity infusion
and INR4.74 crore in the form of unsecured loan). The commercial
production is expected to commence in April 2014.
AMITARA OVERSEAS: CARE Assigns 'BB' Rating to INR10.72cr Loans
--------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Amitara Overseas Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 10.72 CARE BB Assigned
Facilities
Short-term Bank 3.00 CARE A4 Assigned
Facilities
Long-term/Shortterm 0.75 CARE BB/CARE A4 Assigned
Bank Facilities
Rating Rationale
The ratings are constrained on account of the modest scale of
operations of Amitara Overseas Limited in a highly fragmented and
competitive weaving industry, its thin profitability which is
further susceptible to volatile raw material prices and its high
customer concentration.
The above weaknesses are partially off-set by its long-standing
operational track record, vast experience of the promoters of AOL
in the textile industry and operational linkages with its group
company, Jindal Worldwide Ltd.
AOL's ability to increase its scale of operations through greater
diversification of its clientele and improve its profitability are
the key rating sensitivities.
Incorporated in August 1996, AOL is promoted by the Jindal Group
based out of Ahmedabad. Initially, the name of the company was
Amitara Finvest Private Limited which was changed to Amitara
Exports Limited in March 1999 and subsequently to the present one
in January 2004. AOL is engaged in the manufacturing of cotton-
based grey fabrics. AOL has a total of 110 looms including 68
Sulzer looms and 42 Rapier looms as on March 31, 2013 at its
manufacturing facility located at Narol in Ahmedabad.
As per the audited result for FY13 (refers to period April 1 to
March 31), AOL has reported a total operating income of INR108.91
crore (FY12: INR71.35 crore) and PAT of INR0.50 crore (FY12:
INR0.49 crore). As per the unaudited result for Q1FY14, AOL has
reported a total operating income of INR35.70 crore and PBT of
INR0.30 crore.
ARTHOS BREWERIES: CARE Assigns 'D' Rating to INR14.26cr Loans
-------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of Arthos
Breweries Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 14.26 CARE D Assigned
Facilities
Rating Rationale
The rating is constrained by the ongoing delays and irregularities
in debt servicing by Arthos Breweries Limited (ABL). The rating is
further constrained by the small scale of operations of ABL in a
highly regulated industry, poor capacity utilization, poor
financial performance characterized by declining revenue and cash
losses in the past five years (FY09-FY13; refers to the period
April 1 to March 31), weak financial position marked by negative
net-worth as of March 31, 2013 and poor debt coverage indicators.
The rating, however, does take note of the experience of the
promoter in the liquor business and the support from the parent
company.
Going forward, the ability of the company to service its debt in a
timely manner, effectively utilize its capacity towards turning
around the operations and its ability to strengthen its debt
protection metrics by improving its capital structure would be the
key rating sensitivities.
Arthos Breweries Limited is part of the Chennai-based 'Mohan
Breweries' group founded by Mr M Nandha Gopal. ABL was established
in the year 1969 to manufacture and sell beer in the state of
Andhra Pradesh. The company has an installed capacity of 33 lakhs
cases per annum as of March 2013. Mohan Breweries & Distilleries
Limited (MBDL; rated 'CARE D') is the holding company of ABL. MBDL
was incorporated in 1982 to manufacture and sell Indian Made
Foreign Liquor (IMFL) in Tamil Nadu (TN). MBDL was set up in
collaboration with M/s Mohan Meakins Ltd. MBDL was originally
promoted by three individuals, namely, Mr Nandhagopal, Mr.
Ethurajan and Mr Udayar. As on December 31, 2012, MBDL had an
installed capacity of 78.63 lakh cases of IMFL in TN, 12 lakh
cases of IMFL in AP, 105.3 lakh cases of Beer in TN, 62 KLPD
distillery units in TN and 78,000 TPA (tonnes per annum) installed
capacity of glass production. MBDL also has a 35.2 MW wind farm
plant as on September 2012.
The company registered a net loss of INR8.91 crore on total
operating income of INR7.96 crore in FY12 (refers to the period
April 01 to March 31). The company registered a net loss of
INR6.77 crore on a total operating income of INR7.62 crore in FY13
based on provisional results.
ASAN MEMORIAL: CARE Rates INR10cr LT Bank Loans at 'BB'
-------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Asan
Memorial Association.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 10 CARE BB Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of Asan Memorial
Association is constrained by the low and declining student
enrollment in engineering and catering courses, modest financial
risk profile characterized by relatively low surplus margin,
moderate gearing and weak coverage indicators, presence in a
highly regulated environment and the need for regular capital
expenditure.
The rating, however, derives comfort from AMA's long and
established track record of operations of over four decades,
presence across the spectrum of education from kindergarten till
professional education, as well as the stable revenue from AMA's
schools. The rating also derives comfort from the liquid funds
available from the sale of land in July 2013 which is expected to
fund portion of proposed capex as well as to repay a portion of
its debt.
Going forward, AMA's ability to improve the student enrolment
levels and retain quality staff amidst the increasing competition,
its ability to improve the surplus margin and any change in the
funding mix for the capital expansion, will be the key rating
sensitivities.
M/s Asan Memorial Association (AMA) was founded on October 18,
1965, by Mr AK Gopalan and registered under the Societies'
Registration Act XXI of 1860. The main objective of AMA is to
promote interest in Malayalam literature and render educational
services. AMA manages nine educational institutions at various
locations at Chennai and Chengelpet in Tamil Nadu, comprising
one engineering college, two management colleges, arts & science
college, a college of hotel management and catering technology,
three schools as well as a dental college and hospital.
AMA has registered a surplus of INR0.20 crore on a total operating
income of INR30.67 crore in FY13 as compared with a surplus of
INR1.29 crore on a total operating income of INR24.34 crore in
FY12.
FOX LIGHT: CARE Assigns 'BB-' Rating to INR9cr LT Bank Loans
------------------------------------------------------------
CARE assigns 'CARE BB-' to the bank facilities of Fox Light & Grip
(India) Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 9 CARE BB- Assigned
Facilities
Rating Rationale
The rating assigned to the bank facilities of Fox Lights & Grip
(India) Private Limited is constrained by the small scale of
operations, working capital intensive nature of business and
project stabilization risk. The ratings are further constrained by
the competitive nature of the industry.
The rating derives strength from the experience of the promoters
in the cinematographic lightning industry and reputed clientele
base.
FLG's ability to scale up its operations and maintain the
profitability as envisaged along with efficiently managing the
working capital cycle remains the key rating sensitivity.
Fox Lights & Grip (India) Private Limited [FLG] was incorporated
in 2012, wherein the business of four different promoter-led firms
engaged in providing cinematographic lights solutions [viz, M/s
Bllitz Cine Equipments (promoted by Mr Allauddin S Syed), M/s
Hitech Enterprise (promoted by Ms. Rajshree S Shah), M/s Bell
Esprit Solutions (promoted by Mr. Tapas M Khan) and M/s K2
Enterprises (promoted by Mr. Sanjeev Shah)] were combined to gain
from the synergies in operations and achieve economies of scale in
operations.
FLG specializes in providing lighting for film, television drama,
video production, studio lighting, commercials, music video,
documentaries and events. The company also works with the
production team, cinematographers, cameramen and directors to
create the desired image and provide effective lighting solutions.
As per the provisional results for FY13 [refers to the period
April 01 to March 31], FLG posted a total operating income of
INR5.72 crore and PAT of INR1.01 crore. Furthermore, the company
has posted sales of INR5.32 crore till August 31, 2013.
GREENWAY BUILDING: CARE Rates INR11cr LT Bank Loans at 'BB-'
------------------------------------------------------------
CARE assigns 'CARE BB-' ratings to the bank facilities of Greenway
Building Materials India Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 11 CARE BB- Assigned
Facilities
Rating Rationale
The rating is constrained by the absence of the promoter's track
record in AAC Block manufacturing industry, low entry barriers and
dependence on real estate and construction industry. However, the
rating is underpinned by the experience of the promoters in other
businesses, successful commissioning of the project, location
advantage of the plant, less competition in the AAC blocks
manufacturing industry in the present market and increasing
acceptance of AAC blocks in the construction and real estate
industry due to its light weight, reduced consumption of high-
value materials like steel, cement, sand, water, labour, less
weight etc. The ability of company to market its products
profitably and establish client base will be the key rating
sensitivities.
Greenway Building Materials India Private Limited (GBMIPL) was
incorporated on July 4, 2013, by Dr Suresh B. Sadineni, Sri T.S.
Raja Shekhar and Sri C. Krishna Kishore Babu along with their two
friends and is involved in manufacturing of AAC blocks at its
manufacturing unit at Paritala, Kanchikicherla Mandal, Krishna
District with an annual capacity of 1.50 lakh cubic meters.
The manufacturing unit was set up with total project cost of
INR18.58 cr, funded through equity of INR7.58 cr and debt of INR11
cr and the unit started commercial operations on August 29, 2013.
INDORE COMPOSITE: CARE Reaffirms 'BB-' Rating on INR18.5cr Loans
----------------------------------------------------------------
CARE reaffirms ratings assigned to the bank facilities of Indore
Composite Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 18.50 CARE BB- Reaffirmed
Facilities
Short-term Bank 6.00 CARE A4 Reaffirmed
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Indore Composite
Private Limited (IC) continues to be constrained by the relatively
modest scale of operations and investment in the loss-making joint
venture. The ratings further continue to be constrained by the
working capital intensive nature of operations, project execution
risk with debt not being tied-up and presence in a competitive and
fragmented cable material industry.
Incorporated in August 1996, AOL is promoted by the Jindal Group
based out of Ahmedabad. Initially, the name of the company was
Amitara Finvest Private Limited which was changed to Amitara
Exports Limited in March 1999 and subsequently to the present one
in January 2004. AOL is engaged in the manufacturing of cotton-
based grey fabrics. AOL has a total of 110 looms including 68
Sulzer looms and 42 Rapier looms a s on March 31, 2013 at its
manufacturing facility located at Narol in Ahmedabad.
As per the audited result for FY13 (refers to period April 1 to
March 31), AOL has reported a total operating income of INR108.91
crore (FY12: INR71.35 crore ) and PAT of INR0.50 crore (FY12:
INR0.49 crore). As per the unaudited result for Q1FY14, AOL has
reported a total operating income of INR35.70 crore and PBT of
INR0.30 crore.
JAGUAR LAND: Fitch Affirms 'BB-' Long-Term Issuer Default Rating
----------------------------------------------------------------
Fitch has affirmed Jaguar Land Rover Automotive PLC's (JLR)
Foreign-Currency Long-Term Issuer Default Rating (IDR) and senior
unsecured rating at 'BB-'. The Outlook on the IDR is Stable.
The affirmation of the IDR for JLR at BB- is on a standalone
basis, as we view the linkages between Tata Motors Limited and JLR
now to be weak, with JLR having a stronger financial profile than
that of the consolidated financial profile of its parent Tata
Motors Limited on a standalone basis (that is, excluding Tata
Group support). We therefore rate JLR on a standalone basis with
no support or constraint from the parent factored into the rating.
JLR's standalone rating has been upgraded to 'BB-' from 'B+' but
the LT IDR remains unchanged as JLR previously benefited from a
one-notch uplift for parental support. Tata Motors Limited's LT
IDR is 'BB'/Stable, incorporating uplift for potential support
from the Tata Group.
JLR's robust financial profile is commensurate with a higher
rating level, but its business profile, in particular its limited
scale and product diversity, currently constrains the overall
rating level.
We view the coming 18-month period of capacity expansion, new-
model launches and change in engine manufacturing, as a critical
point in the company's transition to a higher volume premium
manufacturer. New model launches during FY14-15, if successful,
will enhance the breadth of product offering and would be likely
to lead to an upgrade of the rating as the business profile
constraint starts to diminish.
Key Rating Drivers
Business Profile Constraints: JLR's limited scale and product
diversity constrain its business profile as they increase the risk
of earnings and cash flow volatility. Should there be a decline in
premium market sales in key markets and/or deterioration in the
pricing environment during the current expansion phase, then JLR's
financial profile could be vulnerable.
Premium Vehicles, Strong Brands: JLR's strong sales and
profitability momentum in FY11-13 have been underpinned not only
by buoyant underlying demand for premium vehicles, but also by a
strengthened product portfolio and a number of successful model
launches (Range Rover Evoque, Range Rover Sport, Freelander 2).
JLR's January- August 2013 volumes increased across all regions,
including in Europe despite a weaker market. Operating margins
were consistent at 11% in FY11-13 and we expect them to remain at
around 10% in FY14-15.
Favourable Operating Environment: Sales of premium segment
vehicles globally have been resilient in the economic slowdown. We
expect this segment to continue to outperform the volume market,
which are influenced by factors such as interest rates, fuel
prices, wage levels and general consumer sentiment.
Capex to Remain High: JLR's capex increased to GBP2.0bn in FY13
(FY12: GBP1.4bn), but FCF was still positive due to strong cash
flows from operations (CFO). We expect the company's annual capex
to increase further in FY14-17 from FY13 levels, as JLR enters a
phase of heavy investment. Capex will include increasing capacity
both in the UK and overseas (JLR has faced capacity constraints),
and investments in new technologies to meet increasingly stringent
environmental requirements, particularly in the US and Europe. The
higher capex will result in negative free cash flow and we also
expect the associated costs to erode JLR's EBIT margin in FY16-17,
although we expect it to remain at or above 7%.
Robust Financial Profile: Despite the higher forecast capex, under
our base case, we expect JLR to maintain a sound financial profile
with FFO-Adjusted Gross Leverage of around 1x (FY13: 1.1x), and
FFO Interest Cover of around 15x (FY13: 13x) in FY14-15. Liquidity
is good with cash and cash equivalents of GBP1.4bn at 1QFY14
(FY13: GBP2.1bn), short-term deposits of GBP0.8bn (FY13: GBP0.7bn)
and a committed undrawn revolving credit facility of GBP1.25bn
maturing 2016/18, against short-term maturities of GBP232m.
Rating Sensitivities:
Negative: Considered unlikely given the robust financial profile
for this rating level, but future developments that may
collectively or individually lead to negative rating actions
include:
-- Negative operating margins combined with
-- Material and sustained negative FCF due to poor underlying
performance and/or increase in dividend pay-out to Tata
Motors Limited, JLR's parent
-- FFO-Adjusted Gross Leverage above 3.0x
Positive: Given the current constraint from JLR's business profile
(including its limited scale and product diversity), successful
model launches in FY14-15 could lead to a ratings upgrade.
KARGWAL ENTERPRISES: CARE Cuts Rating on INR19.23cr Loans to 'BB'
-----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Kargwal Enterprises Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 19.23 CARE BB Revised from
Facilities CARE BB+
Short-term Bank 12.00 CARE A4 Revised from
Facilities CARE A4+
Rating Rationale
The revision in the ratings is primarily driven by the stretched
liquidity position reflected by deterioration in the working
capital cycle and subsequently higher utilisation of working
capital borrowings of Kargwal Enterprises Private Limited (KEPL).
The ratings continue to be constrained by the modest scale of
operations, leveraged capital structure, moderate debt coverage
indicators, vulnerability of profitability margins to volatility
in forgein exchange and higher dependence on demand in the end
user industry.
The ratings, however, continue to draw comfort from the promoter's
wide experience in the marble industry and locational advantage
due to proximity of KEPL's unit to the port.
KEPL's ability to increase its scale of operations while improving
the capital structure and efficient management of working capital
cycle amidst the intense competition would remain the key rating
sensitivities.
Kargwal Enterprises Private Limited started as a partnership firm
in the year 2000 and subsequently got reconstituted to a private
limited company on March 31, 2008. KEPL is engaged in the
processing of rough marbles and selling of polished marble
primarily through traders. The company has its processing
facilities located at Silvassa with a processing capacity of
18,000 metric tons per annum (MTPA) as on March 31, 2013. The
company sells its products all over India with northern India
contributing a substantial portion of the sales.
During FY13 (refers to the period April 1 to March 31), KEPL
reported a total operating income of INR65.94 crore (declined by
around 15% as compared with FY12) and net profit of INR0.48 crore
(declined by around 6% as compared with FY12). The company
achieved a total operating income of around INR17 crore till
July 31, 2013.
KRIDHAN INFRA: CARE Assigns 'B+' Rating to INR2cr LT Loans
----------------------------------------------------------
CARE assigns 'CARE B+' & 'CARE A4' rating to the bank facilities
of Kridhan Infra Solutions Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 2 CARE B+ Assigned
Short-term Bank Facilities 3 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Kridhan Infra
Solutions Private Limited are constrained by the small scale of
operation with low capitalisation, working capital intensive
nature of operations resulting in leveraged capital structure and
weak debt coverage indicators. The ratings are further constrained
by its presence in a highly fragmented industry leading to intense
competition, susceptibility of profitability margins to volatile
prices of traded material along with customer and supplier
concentration risk.
The aforesaid constraints are partially offset by the strengths
derived from the experienced promoters along with reputed client
base.
The ability of KI to achieve the envisaged turnover and
profitability amidst the intense competition and efficiently
manage its working capital cycle are the key rating sensitivities.
Incorporated in 2010, Kridhan Infra Solutions Private Limited
is engaged in the trading of couplers and threading of couplers
into TMT bars on a job - work basis. KI procures its key materials
from local suppliers and its parent company (Readymade Steel
Limited; consisting 48% of the overall purchases) through deemed
imports in FY13 (refers to the period April 1 to March 31) and
subsequently sells in the domestic market. KI's products find
applications mainly in the construction industry.
During FY13, KI reported a total operating income of INR16.11
crore (vis-a-vis INR14.09 crore in FY12) and PAT of INR0.10 crore
(vis-a-vis INR0.12 crore in FY12). Furthermore during 5MFY14,
The company posted a total income of INR7.40 crore and PAT of
INR0.08 crore.
PASCHAL FORMWORK: CARE Cuts Rating on INR12cr Bank Loan to 'BB+'
----------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Paschal Formwork India Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long term Bank 12 CARE BB+ Revised from
Facilities CARE BBB-
Rating Rationale
The revision in the rating takes into account of continuing losses
in FY13 (refers to the period April 1 to March 31), subdued
financial performance in Q1FY14, low revenue visibility
considering the size of order of order book position and subdued
outlook for Indian infrastructure industry for medium-term period.
The rating continues to be constrained by the limited experience
of the company in selling form work products in the Indian market,
small size of operations, customer concentration risk, single
supplier risk and non-availability of the key raw material
domestically, forex risk associated with imports, and competitive
industry segment due to lower entry barriers.
The rating is, however, underpinned by established track record
and the experience of the promoters in the same business,
operational and financial support from the promoters over the
period, increase in PBILDT margin in FY13 and low overall gearing
as on March 31, 2013. The ability of the company to increase its
scale of operations and improve profitability are the key
rating sensitivities.
PASCHAL Form Work (India) Pvt Ltd is a joint venture company
between PASCHAL Werk G.Maier GmbH-Germany (Paschal-Germany) and
NCC Limited. As on March 31, 2013, Paschal-Germany has a 74%
stake, while NCC has a stake of 26% in PFW.
PFW manufactures multipurpose modular Formwork and E-decking
system for slabs. Formwork is the support structure or shuttering
(steel or wooden) used while concreting during construction. EDeck
is a kind of slab formwork material used for ceilings in the
residential and industrial buildings. Presently, the company has
installed capacity of 50,000 sqm (Modular Panels 40,000 sqm
and E-Deck Panels 10,000 sqm).
The company incurred a net loss of INR051 crore on a total income
of INR18.25 crore in FY13 as against a net loss of INR1.15 crore
on a total income of INR18.68 crore in FY12.
ROYAL PROPTECH: CARE Assigns 'B' Rating to INR3cr Loan
------------------------------------------------------
CARE assigns 'CARE B' rating to the NCD issue of Royal Proptech
Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Non-Convertible Debenture 3 CARE B Assigned
Rating Rationale
The rating assigned to the Non-Convertible Debenture (NCD) of
Royal Proptech Limited is constrained by the limited track record
of the company's operations and nascent stage of the project
leading to high execution and off take risk. The rating is further
constrained by high funding risk as the debt is not tied up and a
major portion of the promoters' funds are yet to be infused.
The rating, however, derives strength from the diverse business
experience of the promoters, though their experience in the real
estate sector is limited.
Going forward, the ability of the promoters to timely infuse
funds, achieve financial closure of the project and ensure smooth
project execution while also achieving the estimated sales
projections would be the key rating sensitivities.
Incorporated in 2011, Royal Proptech Limited (RPL) has interests
in the development of residential/group housing project in
Varanasi. RPL has been promoted by Mr Harish C Rai and Mr
Pankaj Gupta.
The company proposes to develop a group housing project on a land
measuring 25,265 sq ft in Varanasi with a total saleable area of
approximately 0.73 lakh square feet (lsf) and intends to raise
INR3 crore of NCD issue for the same.
The total estimated project cost of INR16.31 crore is proposed to
be funded by promoter's contribution of INR0.95 crore, debt/NCD
(not tied up) of INR3 crore and the remaining from customer
advances. However, as on July 31, 2013, the company has only
incurred INR0.25 crore (1.5% of total project cost) for the
purchase of the land.
SAHNI SALES: CARE Assigns 'B' Rating to INR6cr LT Bank Loan
-----------------------------------------------------------
CARE assigns 'CARE B/CARE A4' ratings to the bank facilities of
Sahni Sales Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 6.00 CARE B Assigned
Short-term Bank Facilities 0.20 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Sahni Sales Private
Limited are constrained by its small scale of operations with
presence in the highly competitive automobile dealership
industry, financial risk profile marked by low profitability
margins, highly leveraged capital structure and moderately
stressed liquidity position and reliance on a single manufacturer
for product supply. The ratings, however, favourably take into
account the experienced promoters with long track in automobile
spares and accessories dealership business, diversified client
base with established and strong distribution network.
The ability of the company to increase its market presence amidst
the competition and to improve its capital structure while
managing its working capital requirements efficiently will remain
as the key rating sensitivities.
Sahni Sales Private Limited was started in December 1998, and is
promoted by Mr. Surinder Singh Sahani. The company is engaged in
the business of distribution for automobile spares and
accessories with a network of 1,400 dealers spread over the 23
districts of Andhra Pradesh. The company has entered into a
distribution agreement with manufacturers for one year which is
renewed every year based on its performance. The company sells its
products to retailers, wholesalers and to vehicle showrooms.
The company deals with automobile spares of all major brands which
include Sony Car Audios, Roots Horns, GKN Invel drive Shafts,
Philips Halogen Bulbs, Siemens VDO (Continental) instruments and
other accessories like foot mats, mud flaps, side bearings, body
covers, fog lamps, etc. Apart from automobile accessories, SSPL
has a separate Lubricants division and it is a distributor for
HPCL Automotive and Industrial Lubricants. The company has
recently entered into an a greement with Emric Power Solutions
Pvt. Ltd. to distribute Emric brand UPS, invertors and batteries
by acting as a Super Distributor for Andhra Region with effect
from January 01, 2013. The company is also engaged in the
distribution of Auto Electrical products and some accessories are
branded in the name of Sahni.
During FY13 (refers to the period April 1 to March 31), SSPL
reported a total operating income of INR 27.01 crore and a PAT of
INR0.19 crore as against a total operating income and PAT of
INR15. 57 crore and INR0.08 crore respectively in FY12. The
company has achieved a turnover of INR28.17 crore for Q1FY14.
SHRI MADHUR: CARE Assigns 'BB-' Rating to INR7cr LT Bank Loans
--------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of Shri Madhur Food Proucts Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 7 CARE BB- Assigned
Facilities
Short-term Bank 11 CARE A4 Assigned
Facilities
Rating Rationale
The ratings assigned to the bank facilities of Shri Madhur Food
Products Pvt Ltd are mainly constrained by its declining operating
income, volume-driven business model resulting in low profit
margin, working capital intensive nature of operations, and its
exposure to volatility in raw material prices. The above
constraints are partially offset by the long track record of
operations coupled with experienced promoters, location advantage
with respect to procurement of raw material and SMFPPL's long-term
association with its customers.
The ability of the company to increase its scale of operations and
profitability margins is the key rating sensitivity.
Promoted by the late Mr. Hansrajji Agrawal in 1992, Shri Madhur
Food products Pvt. Ltd. based out of Dhule, Maharashtra is engaged
in the production of cotton wash oil and cotton seed cake with an
installed capacity of 30,000 Tonnes per Annum (TPA).
The cotton seed cake produced by the company is used as cattle
feed, poultry feed and aqua feed. The company procures its raw
material in the form of cotton seed from various domestic
suppliers mainly located in Dhule, Maharashtra. The company
supplies around 50% of its total production of cotton wash oil to
its group company, Om Shree Agro Industries Ltd, and the rest 50%
production goes to oil refineries located in and around
Maharashtra. SMFPPL supplies cotton seed cake mainly in Rajasthan,
Gujarat and Maharashtra.
SMFPPL reported a PAT of INR0.89 crore against a total operating
income of INR43.75 crore in FY13 (refers to the period April 1 to
March 31) as against PAT of INR0.88 crore against a total
operating income of INR51.78 crore in FY12.
SUMIT ENTERPRISES: CARE Assigns 'BB' Rating to INR4.9cr Loans
-------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' rating to the bank
facilities of Sumit Enterprises.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 4.90 CARE BB
Short-term Bank Facilities 0.20 CARE A4
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of the capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facility of Sumit Enterprises is
constrained by partnership nature of the constitutions mall scale
of operation with low net profitability margin, very high customer
concentration risk along with absence of long-term agreement, high
overall gearing ratio, volatility in raw material prices and
inherent cyclicality of the automobile industry. The above
constraints are partially offset by experienced partners with long
track record, locational advantage and reputed clientele.
The ability to improve the scale of operation and profitability
margins, in addition to managing working capital effectively shall
remain the key rating sensitivities.
Sumit Enterprises, set up in the year 1988, is a Jamshedpur-based
(Jharkhand) ISO 9001:2008 certified partnership firm. It is
engaged in manufacturing of motor vehicle parts majorly for Tata
Motors Ltd.
The manufacturing facility of the firm is located in Jamshedpur,
Jharkhand and is equipped with an installed capacity of 12 lakh
units per annum. This apart they are also into fabrication of
construction equipments, which formed a very small portion of net
sales as per Provisional FY13 (i.e. 3.08%).
SE is formed by four partners, Mr. O. P. Garg, Mr. Jeetendra Garg
(son of Mr. O. P. Garg), Smt. Gita Devi Garg (wife of Mr. O. P.
Garg) and Smt. Rashmi Garg (wife of Mr. Jeetendra Garg) with
profit sharing ratio of 25% each. Mr. O. P. Garg looks after
the overall business of the firm and Mr. Jeetendra Garg looks
after the day-to-day business of the firm.
As per FY13 (provisional) (refers to the period April 1, 2012 to
March 31, 2013), SE achieved a PBILDT of INR1.9 crore (INR2.0
crore in FY12) and a PAT of INR0.4 crore (INR0.4 crore in FY12) on
the total income of INR32.2 crore (INR 35.6 crore in FY12
VIJAY STEEL: CARE Reaffirms 'B+' Rating on INR1.5cr LT Loans
------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of Vijay
Steel Industries.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 1.50 CARE B+ Reaffirmed
Facilities
Short-term Bank 7.50 CARE A4 Reaffirmed
Facilities
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of the capital
or unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating continues to remain constrained on account of the weak
financial risk profile of Vijay Steel Industries (VSI) marked by
low profitability, leveraged capital structure and weak debt
coverage indicators. The ratings are further constrained on
account of susceptibility of its margins to volatility in exchange
rate and risks related to any unfavorable regulatory changes in
the timber exporting countries coupled with presence in the highly
competitive timber trading industry. The rating continues to draw
strength from the wide experience of the partners in the timber
trading industry.
VSI's ability to improve profitability and increase its scale of
operations in the highly competitive timber trading industry and
improvement in the capital structure along with better working
capital management are the key rating sensitivities.
VSI, formed in December 1984, is engaged in the business of timber
trading at Gandhidham (Gujarat), near to the Kandla port which
facilitates easy import of timber. VSI was initially formed
to do processing and trading of steel but later on it started
processing of timber business in 1989.
VSI imports timber logs from Malaysia, New Zealand and European
Countries and cut it into commercial sizes as per the requirement
of its customers. As on March 31, 2013 it had a total sawing
capacity of 40 cubic meters (CMT) per day. VSI supplies timber to
its customers in the states of Gujarat, Rajasthan, Maharashtra,
Karnataka and West Bengal. VSI's customers include wholesalers and
retailers who are engaged in the timber trading and who in turn
supply timber to manufacturers of furniture items, infrastructure
etc.
During FY13 (refers to the period April 1 to March 31), VSI
reported TOI of INR19.00 crore and PAT of INR0.03 crore as against
TOI of INR16.90 crore and PAT of INR0.01 crore during FY12.
VKS GORMI: CARE Assigns 'BB+' Rating to INR25cr LT Loans
--------------------------------------------------------
CARE assigns 'CARE BB+ (SO)' and 'CARE A4+ (SO)' ratings to the
bank facilities of VKS Gormi Udotgarh Corridor Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 25.00 CARE BB+ (SO) Assigned
Short-term Bank Facilities 1.76 CARE A4+ (SO) Assigned
Rating Rationale
The above ratings are based on the credit enhancement in the form
of an unconditional and irrevocable corporate guarantee provided
by Vinod Kumar Shukla Constructions Pvt Ltd (VKS) for the bank
facilities of VKS Gormi - Udotgarh Corridor Pvt. Ltd. (VGUC).
The ratings of VKS are constrained by its modest scale of
operations with limited geographical diversity, high dependence on
state government agencies and significant funding requirements in
its Special Purpose Vehicles (SPVs) implementing Build-Operate
Transfer (BOT) projects.
The ratings, however, draw strength from the vast experience of
the promoters and its established track record of operations in
the construct ion industry, fair revenue visibility in the medium
term owing to its moderate order book and its healthy
profitability and moderate leverage.
VKS' ability to efficiently manage the funding requirements of its
SPVs and execute the orders within envisaged cost and time
parameters while maintaining its profitability and capital
structure are the key rating sensitivities.
Incorporated in September 2012, VKS Gormi Udotgarh Corridor Pvt.
Ltd. (VGUC) is a Special Purpose Vehicle (SPV) sponsored by Vin
od Kumar Shukla Constructions Pvt. Ltd. to undertake widening (two
laning) and upgrading of Gormi Udotgarh section of State Highway
(SH) 19 under a Concession Agreement (CA) with Madhya Pradesh Road
Development Corporation (MPRDC) on Design, Build, Finance, Operate
and Transfer (DBFOT) on Annuity basis.
The CA was executed between VGUC (Concessionaire) and MPRDC on
September 29, 2012 for a concession period of 15 years (incl. 2
years of construction period). The total project cost of INR40.53
crore is envisaged to be financed through debt and equity in the
ratio of 1.61:1. The financial closure for the project was
achieved on March 23, 2013 and construction work on the highway
started post the receipt of Letter of Appointed date from MPRDC on
March 23, 2013. Till July 31, 2013, VGUC had incurred a cost of
INR9.23 crore towards the project, funded through term loan of
Rs.8.07 crore and balance through equity of INR4.66 crore.
Promoted by Mr. Vinod Kumar Shukla in 1996, VKS has
been engaged in construction activities in the field of bridges,
roads and dams, etc. Mr. Vinod Kumar Shukla joined his father Mr.
Bhaiyalal Shukla's construction business (established in 1955) and
subsequently formed VKS. Based at Bhopal, VKS executes orders
awarded mainly by Government agencies of Madhya Pradesh.
Apart from EPC contracts for bridges and other construction
activities, VKS has a portfolio of four BOT road projects under it
SPVs, out of which two are operational while the other two are
under execution stage.
During FY13 (refers to the period April 1 to March 31), VKS
reported profit after tax (PAT) of INR4.22 crore on a total
operating income of INR56.09 crore as compared with a PAT of
INR2.70 crore on a total operating income of INR25.22 cr
ore during FY12.
=========
J A P A N
=========
EACCESS LTD: S&P Raises Rating on Senior Unsecured Bonds to 'BB'
----------------------------------------------------------------
Standard & Poor's Ratings Services said it has raised its issue
rating on Japan-based mobile communications service provider
eAccess Ltd.'s long-term senior unsecured bonds a notch to 'BB'.
Given completion of the company's repayment of its secured loans,
S&P bases the upgrade on our expectation that eAccess' ratio of
priority claims to total assets will fall substantially below 15%
-- the threshold value for notching down (setting a rating lower
than a corporate credit rating) the rating on long-term senior
unsecured bonds.
====================
N E W Z E A L A N D
====================
INSURED GROUP: Fails to File Annual Report On Time
--------------------------------------------------
Tina Morrison at BusinessDesk reports that Insured Group, whose
shares last changed hands more than five months ago, was suspended
from trading on the New Zealand stock exchange for failing to
provide its annual report on time.
BusinessDesk relates that the Australian insurer used the shell of
failed finance company Lombard Group for a backdoor listing on the
exchange in 2010. It has been late filing its annual report every
year since then, excluding 2010 when the accounts reflected the
Lombard business prior to the takeover, the report relays.
According to the report, NZX Regulation said the company's latest
annual report for the 2013 financial year was due by Sept. 30. A
grace period of five business days had now expired and trading in
Insured Group's shares has been suspended, effective October 8,
the regulator, as cited by BusinessDesk, said.
Shares in Insured Group last traded April 26 at 1.5 cents, valuing
the company at NZ$325,000.
The Insured Group Ltd is a general insurance intermediary
specialising in insurance product distribution.
====================
S O U T H K O R E A
====================
* SOUTH KOREA: More Than 100 SMEs May Face Debt Restructuring
-------------------------------------------------------------
Na Jeong-ju at The Korea Times reports that over 100 small- and
medium-sized enterprises (SMEs) are likely to be put under court-
or creditor-led debt restructuring programs as the result of
credit crunches at some big firms.
According to the report, the Financial Supervisory Service (FSS)
is currently evaluating default risks of some 1,100 SMEs jointly
with their creditor banks.
Most of them are involved in the construction, real estate,
shipbuilding and shipping businesses, which have remained in a
protracted slump, the report relates.
"We will pick firms in the worst condition. They will have to face
debt restructuring programs," an FSS official said, the report
relates. "The number may surpass 100 for the first time since the
2010 financial crisis because banks are tightening lending rules
and firms are facing difficulties in securing funds through bond
issuances."
The Korea Times notes that the gloomy outlook reflects concerns
that a series of corporate failures in recent months will put
smaller businesses in deeper trouble.
Tongyang Group, the country's 38th-largest conglomerate, filed for
court protection for five of its affiliates last month after
failing to repay their debts. About six months ago, STX Group, the
13th-biggest firm, also defaulted, the report discloses.
Analysts have warned that more conglomerates may follow Tongyang
and STX, and file for bankruptcy, according to the report.
They say the defaults by big firms may erode the financial health
of smaller businesses because many of them have business ties with
large companies as subcontractors, the report relays.
===========
T A I W A N
===========
TAICHUNG COMMERCIAL: Fitch Revises Outlook on BB+ IDR to Negative
-----------------------------------------------------------------
Fitch Ratings has taken rating actions on several private banks in
Taiwan:
-- It has upgraded Cosmos Bank, Taiwan's (Cosmos) national rating
to BBB+(twn) from BBB(twn),
-- Placed EnTie Commercial Bank's (EnTie) ratings on Positive
Outlook,
-- Changed Bank of Taipei's (BOTP) Outlook to Stable from
Negative.
-- Placed Taichung Commercial Bank's (Taichung) rating on
Negative Outlook.
-- Affirmed all ratings of King's Town Bank (KTB).
Fitch upgraded Cosmos because it expects the bank will continue to
generate higher core profitability commensurate with its higher
overall risk profile relative to similarly rated peers. Sufficient
internal capital generation is likely to support loan growth that
is not overly aggressive and yet above the sector average. Cosmos'
ratings continue to be constrained by the potential increase in
risk profile stemming from its aspiration to expand more rapidly,
especially as it may pursue higher-risk borrowers in unsecured
personal lending and heads into corporate lending, which was
previously not an area of its focus.
EnTie's outlook is placed on Positive on expectation of gradual
build-up of capital buffer from the bank's consistent and robust
core earnings, which is rather comparable to banks rated a notch
higher.
Fitch returned BOTP's outlook to Stable after determining that its
risk profile has not increased materially following loan growth
over 2011-2012. Although its ability to internally generate
capital is weak, it has a solid capitalization to support its
modest near-term loan growth.
Taichung's outlook is placed on Negative due to its deteriorating
credit profile, with its near-term plan to expand its loan
portfolio at a pace faster than the sector average to pressure its
already below-par capitalization.
The affirmation of KTB is based on its steady credit profile,
supported by superior earnings and capital generation, prudently
maintained asset quality, and strong capitalization.
Key Rating Drivers - IDR, National Ratings, and VRs
The ratings of private banks covered are driven by their intrinsic
credit profile. Their small deposit market share and lack of
systemic importance mean the government is less likely to extend
them support. The agency also considers as important credit
factors the banks' pace of capital accumulation over 2013-2015,
the extent that their capitalization is sufficient to support
future growth and to weather sharp increases in credit costs in a
cyclical downturn, and their management capacity to implement
coherent strategy.
Fitch expects profitability of the private banks to decline from
the 2012 level, mainly due to rising provisioning risks, with
credit costs to normalize from a benign credit cycle in 2010-2012.
Catalysts for improved profitability remain limited. That said,
KTB, EnTie and Cosmos are likely to register above-average returns
on assets and superior internal capital generation in 2013 and
2014.
The agency also expects asset quality at most of the banks covered
to be generally maintained on stable risk appetite and adequate
provisioning. KTB, EnTie and Cosmos also have improved risk
management and more experienced management teams following
restructurings. However, the banks are vulnerable to a severe
property market correction, as most of them have large property-
related exposure. Taichung's asset quality will likely be
undermined by its rapid loan growth at CAGR of 14.1% over 2009-
2012 and insufficient provisions, in Fitch's view, for its recent
large impairments to corporate credits.
The private banks' capitalizations vary greatly, but most lag
those in the Asia-Pacific. The loss absorption buffers are limited
for EnTie and Taichung, with their Fitch Core Capital ratio
falling below 8% in Fitch's stress scenario. At end-H113, their
FCC ratios stood at 7.0% and 8.8%, respectively.
These five private banks generally have good liquidity, with loan-
to-deposit ratio in the range of 65-85% and backed by sufficiently
large holdings of high-quality liquid assets as contingent sources
of liquidity. However, EnTie has less favourable funding costs
because it has a lower proportion of demand deposits and a more
concentrated wholesale deposit base.
Rating Sensitivities - IDR, National Ratings, and VRs
The ability to generate and accumulate capital, while maintaining
adequate asset quality, will differentiate the stand-alone credit
strengths of the private banks in Taiwan. Consistent and robust
earnings generation that leads to strengthened capitalization may
lead to ratings upgrades for the any of the five banks. This is
more likely achieved through structural changes such as entry into
niche markets, improved earnings quality through expanded business
scope, and enhanced costs structure.
Weakened capitalization, resulting from significant worsening in
asset quality (potentially from a severe property market
correction) and/or aggressive pursuit of loan growth, with
compromises in underwriting or pricing discipline, and/or entry
into areas out of the banks' core competency may lead to ratings
downgrades.
Key Rating Drivers and Sensitivities - SR and SRF (KTB and
Taichung)
Support Ratings (SR) and Support Rating Floors (SRF) for KTB and
Taichung reflect their lack of systemic importance and the low
probability the state will extend them support, if needed. The SR
and SRF are sensitive to any change in assumptions around the
propensity or ability of Taiwan government to provide timely
support to these banks. This would most likely be manifested in a
change to Taiwan's sovereign rating (A+/Stable).
Key Rating Drivers - 1) EnTie's senior debt, 2) EnTie and
Taichung's subordinated debt, and 3) Taichung's convertible bond
EnTie's senior unsecured debt is rated at the same level as its
National Long-Term Rating, as they constitute direct,
unconditional, unsecured and unsubordinated obligations of the
bank.
EnTie and Taichung's subordinated debts are rated one notch below
their National Long-Term ratings, reflecting their subordinated
status and the absence of any going-concern loss-absorption
mechanism.
Taichung's Basel III-compliant sub-debt is rated two notches below
the bank's National Long-Term Rating of 'A-(twn)' to reflect the
inclusion of Taiwan's Basel III-styled non-viability trigger
provision, which mandates that the bond be ranked equally with
common shares upon government receivership, regulatory order for
resolution, or liquidation. The bond is notched down twice for
limited recovery prospects as the bank's capital would likely be
written off at the point of non-viability.
These notching practices are in accordance with Fitch's criteria
on rating senior unsecured bond instruments and bank regulatory
capital of financial institutions.
Rating Sensitivities - 1) EnTie's senior debt, 2) EnTie and
Taichung's subordinated debt, and 3) Taichung's convertible bond
Any action on EnTie and Taichung's ratings is likely to trigger a
similar move in their debt ratings.
A Credit Update on KTB, EnTie, BOTP, Taichung and Cosmos will be
available shortly on www.fitchratings.com.
The rating actions are:
Cosmos:
National Long-Term Rating upgraded to 'BBB+(twn)' from 'BBB(twn)';
Outlook Stable
National Short-Term Rating upgrade to 'F2(twn)' from "F3(twn)'
EnTie:
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Revised
to Positive from Stable
National Short-Term Rating affirmed at 'F2(twn)'
Senior unsecured debt affirmed at 'A-(twn)'
Subordinated debt affirmed at 'BBB+(twn)'
BOTP:
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Revised
to Stable from Negative
National Short-Term Rating affirmed at 'F1(twn)'
Taichung:
Long-Term IDR affirmed at 'BB+'; Outlook Revised to Negative from
Stable
Short-Term IDR affirmed at 'B'
National Long-Term Rating affirmed at 'A-(twn)'; Outlook Revised
to Negative from Stable
National Short-Term Rating affirmed at 'F2(twn)'
Viability Rating affirmed at 'bb+'
Support Rating affirmed at '5'
Support Rating Floor affirmed at 'No Floor'
Convertible bonds affirmed at 'A-(twn)'
Subordinated bonds affirmed at 'BBB+(twn)'
Subordinated bonds (Basel III- compliant) affirmed at 'BBB(twn)'
KTB:
Long-Term IDR: affirmed at 'BBB-'; Outlook Stable
Short-Term IDR: affirmed at 'F3'
National Long-Term rating: affirmed at 'A(twn)'; Outlook Stable
National Short-Term rating: affirmed at 'F1(twn)'
Viability Rating: affirmed at 'bbb-'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
===============
X X X X X X X X
===============
* Upcoming Meetings, Conferences and Seminars
---------------------------------------------
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 ***