/raid1/www/Hosts/bankrupt/TCRAP_Public/140221.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
Friday, February 21, 2014, Vol. 17, No. 37
Headlines
A U S T R A L I A
DUNVEGAN SEADOWN: Escapes Liquidation Bid Over NZ$16.7MM Debt
FOREST ENTERPRISES: New Forests Group in Race to Buy FEA
FORGE GROUP: May Face Shareholder Class Action Suit
FORGE GROUP: Loses Projects, Employees Stood Down
GT AUSTRALIA: S&P Affirms BB Rating on Class E Notes
INVEST SERVICED: Best Western Hotel Sells 44 Units
J.D. PATTON: Worrells Solvency Appointed as Administrators
LM GROUP: Surfers Paradise Property Sold for Half its Price
MISSION NEW ENERGY: SLW Int'l Discloses 3.3% Stake as of Feb. 3
MISSION NEW ENERGY: Westcliff No Longer Owns Ordinary Shares
NEW GENERATION: Vince & Associates Named as Administrators
PROJECT SUNSHINE: S&P Assigns 'B' Issuer Prelim. Credit Rating
SP & MR CLOAK: Clifton Hall Appointed as Liquidators
TOFALLA PTY: Hall Chadwick Appointed as Administrators
H O N G K O N G
DAH SING BANK: Fitch Affirms 'BB+' Jr. Subordinated Debt Rating
UMEWORLD LTD: Albert Wong & Co. Raises Going Concern Doubt
I N D I A
CHANDRA COAL: CRISIL Reaffirms 'B' Rating on INR70MM Loans
DURGA PROJECTS: CRISIL Assigns 'B+' Ratings to INR800M Loans
EPSON VITRIFIED: CRISIL Reaffirms B+ Rating on INR168.5MM Loans
GURU GOBIND: CRISIL Upgrades Rating on INR270MM Loans to 'B'
HARA PARBATI: CRISIL Lowers Rating on INR65MM Loans to 'D'
HULDIBARI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR67.5M Loan
LEAPFROG ENG'G: CRISIL Assigns 'B+' Rating to INR20MM Loan
LINKSON INT'L: CRISIL Cuts Rating on INR725MM Loans to 'D'
LINKSON ISPAT: CRISIL Cuts Rating on INR300MM Loans to 'D'
NAMRATA PROMOTERS: CRISIL Reaffirms 'B+' Rating on INR175MM Loans
NETWORK TRADELINK: CRISIL Reaffirms 'B+' Rating on INR20MM Loan
NEW AGE: CRISIL Upgrades Rating on INR92 Million Loans to 'B-'
OMSAIRAM STEELS: CRISIL Reaffirms 'B+' Rating on INR918.7MM Loans
ONE UP: CRISIL Reaffirms 'B-' Ratings on INR157MM Loans
PONTIAC MERCHANTS: CRISIL Lowers Rating on INR230MM Loans to 'D'
PRERNA COTPRESS: CRISIL Reaffirms 'B-' Rating on INR80MM Loans
PRINITI FOODS: CRISIL Assigns 'B+' Ratings to INR114.5MM Loans
R. L. JEWELS: CRISIL Lowers Rating on INR1.20BB Loans to 'D'
S. R. SHIPPING: CRISIL Reaffirms 'B-' Rating to INR250MM Loans
S B IMPEX: CRISIL Reaffirms 'B+' Rating on INR112.5MM Loans
SATTVA CONWARE: CRISIL Reaffirms 'B' Rating on INR142.5MM Loans
SHIVAM IRON: CRISIL Assigns 'B-' Ratings to INR1.58BB Loans
SHRAMAN STRIPS: CRISIL Reaffirms 'B' Rating on INR80MM Loans
SHREE SHANKAR: CRISIL Cuts Rating on INR360MM Loans to 'D'
SHREERAM POLYPLAST: CRISIL Reaffirms 'B' Rating on INR107MM Loans
SHRI AMBA: CRISIL Assigns 'D' Ratings to INR100 Million Loans
SHUBHANGI SALES: CRISIL Rates INR50MM Cash Credit at 'B'
SONALI EXTRUSIONS: CRISIL Reaffirms 'B' Rating on INR97MM Loans
SOUBHIK EXPORTS: CRISIL Reaffirms B Rating on INR377.5MM Loans
SRI LAXMI: CRISIL Reaffirms 'B+' Rating on INR97.5MM Loans
SUSHILA INT'L: CRISIL Reaffirms 'B' Rating on INR135MM Loans
SUSHITEX INDUSTRIES: CRISIL Reaffirms B Rating on INR313.5M Loans
TAPAN MOTORS: CRISIL Assigns 'B' Ratings to INR141.9MM Loans
UNIVERSAL AIR: CRISIL Assigns 'D' Ratings to INR190MM Loans
VALSON POLYESTER: CRISIL Reaffirms 'B+' Rating on INR565MM Loans
WELLDONE INFRASTRUCTURE: CRISIL Rates INR450MM Loan at 'B+'
J A P A N
ARYSTA LIFESCIENCE: S&P Affirms 'B' LT Corporate Credit Rating
GK ORSO: Fitch Withdraws 'Dsf' Rating on JPY10.1BB Notes
N E W Z E A L A N D
NEW ZEALAND ASSOCIATION: S&P Withdraws BB+ Issuer Credit Rating
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
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=================
A U S T R A L I A
=================
DUNVEGAN SEADOWN: Escapes Liquidation Bid Over NZ$16.7MM Debt
-------------------------------------------------------------
Stu Piddington at Fairfax NZ News reports that Crown Asset
Management has failed in a bid to put Dunvegan Seadown Ltd, a
company owned by former South Canterbury Finance chief executive
Lachie McLeod, into liquidation over a debt of NZ$16.7 million.
In the High Court in Christchurch, associate judge Rob Osbourne
dismissed the claim on the basis that while there was a genuine
and substantial dispute to the existence of the debt, Crown Asset
Management had not satisfied the court it was a creditor,
according to the news agency.
Fairfax NZ News relates that the judge said Crown Asset Management
could establish its case through an ordinary proceeding, not
through liquidation.
Mr. McLeod is the sole shareholder and director of the targeted
company, the report discloses.
According to the report, Crown Asset Management claimed the
company failed to pay the loan balance due to South Canterbury
Finance on Nov. 30, 2011, the day he ceased to be chief executive.
The report says Dunvegan Seadown's sole asset is shares in the
Southbury Group, which is in liquidation. Crown Asset Management
was incorporated in February 2012 to acquire the assets of five
defunct finance companies repaid by the Government under its
retail deposit guarantee scheme, the report notes.
Fairfax NZ News says Mr. McLeod's lawyers claim the liability was
extinguished when the 1 million Southbury shares, which the money
was borrowed for, were returned to South Canterbury Finance as
part of an employment settlement agreement. Mr. McLeod did not
give evidence at the hearing, the report adds.
FOREST ENTERPRISES: New Forests Group in Race to Buy FEA
--------------------------------------------------------
Bridget Carter at The Australian reports that Sydney-based New
Forests group is competing with four international players to buy
Forest Enterprises Australia, which is tipped to sell for as much
as AUD400 million, sources said.
The Australian relates that sources said the company joins US-
based Campbell Group, GMO Renewable Resources, Global Forest
Partners and Resource Management in vying for FEA.
FEA was put on the market in December through Gresham and
Deloitte, shortly after timber company Gunns came up for sale for
what is thought to be about AUD400 million, The Australian notes.
According to the report, initial bids closed this month and
Deloitte said the shortlisted parties would soon be invited to
conduct due diligence. Local and international interest had been
strong, Deloitte, as cited by The Australian, said.
The sale will offer hope to thousands of investors who poured
AUD400 million into the business over many years, the report
notes.
The Australian says FEA has 97,900ha of mature hardwood forests
and 46,000ha of land in NSW, Queensland and Tasmania.
The sale price is expected to be between AUD200 million and AUD400
million, the report adds.
Forest Enterprises Australia Limited (ASX:FEA) --
http://www.fealtd.com/-- is a vertically integrated forestry and
forest products company. It is engaged in the sale of woodlot
investments through forestry investments; preparation,
establishment and maintenance of plantations; timber harvesting;
provision of finance to approved growers; sawmilling and wood
chipping of forest produce, and direct exporting of forest produce
to Asian markets. FEA operates in two divisions: forest products,
which includes forest management services and the processing of
forest products, including whole logs, woodchips and sawn timber,
and forestry investment, which includes establishment and
financing of managed woodlots and provision of related forestry
services, including the lease of investment land. Its wholly
owned subsidiaries include FEA Plantations Limited, FEA Carbon Pty
Ltd, Tasmanian Plantation Pty Ltd, Tasmanian Plantation Unit Trust
and FEA Timberlands Fund.
BRI Ferrier has been appointed as voluntary administrators of:
-- Forest Enterprises Australia Limited;
-- FEA Plantations Limited;
-- Tasmanian Plantation Pty Ltd; and
-- FEA Carbon Pty Ltd.
The banks on April 14, 2010, appointed Deloitte partners
Tim Norman and Sal Algeri as Receivers and Managers of Forest
Enterprises Australia Limited and wholly owned subsidiary FEA
Carbon Pty Ltd (FEAC). Messrs. Norman and Algeri have also been
appointed as 'agents for the mortagee in possession' of Tasmanian
Plantations Pty Ltd, another wholly owned property holding
subsidiary of FEA.
FORGE GROUP: May Face Shareholder Class Action Suit
---------------------------------------------------
Brian Robins at The Sydney Morning Herald reports that Forge Group
is likely to be hit with a shareholder class action law suit, with
litigation funder Bentham IMF alleging the engineer engaged in
"misleading and deceptive conduct".
It also alleges there was a breach of continuous disclosure
obligations, the report relates.
SMH notes that Forge collapsed earlier this month, largely due to
problems with power station projects in the Pilbara and north
western Queensland. Between late November the end of January,
Forge announced three profit write-downs stemming largely from
problems with these contracts, the report relates.
"The shareholder action will allege Forge knew or should have
known about, and disclosed, problems with the [construction]
contracts from early 2013," the litigation funder said in a
statement, SMH relays. "It will also claim Forge misled the
market in its three downgrade announcements by stating that lender
ANZ had waived covenants and confirmed ongoing support, without
disclosing that this was conditional on Forge securing an
injection of fresh equity."
SMH says Slater & Gordon Limited will run the proposed action.
"It is simply not believable that Forge directors waited until
late November 2013 to tell investors of problems with the power
station contracts, when it knew or ought to have known about them
much earlier in the year," the report quotes IMF Investment
Manager, Tania Sulan, as saying.
Forge Group Limited (ASX:FGE) -- http://www.forgegroup.com.au--
is engaged in construction, commercial building, engineering,
maintenance and workshop fabrication. Forge is the holding company
of Cimeco Pty Ltd, Webb Construction West Africa Ltd, Abesque
Engineering Ltd (Abesque) and CTEC Pty Ltd, which provide a range
of engineering and construction services to a diverse range of
clients particularly to the resource and oil and gas sectors
through its operating entities.
Martin Jones, Andrew Saker and Ben Johnson of Ferrier Hodgson were
appointed as Joint and Several Voluntary Administrators of the
Company on Feb. 11, 2014. As a consequence, the financiers have,
pursuant to their securities, appointed Mark Mentha and Scott
Langdon of KordaMentha as Receivers and Managers.
The Australian said that the administrators were called in after
Forge's financier ANZ Group withdrew its support.
FORGE GROUP: Loses Projects, Employees Stood Down
-------------------------------------------------
Ferrier Hodgson said 1,300 employees on power stations and mining
projects in Western Australia and Queensland were retrenched on
Feb. 12 after the principals of the construction jobs exercised
contractual rights they claimed on the projects.
Mark Mentha of KordaMentha Restructuring said he hoped some of the
employees may be able to get work with the new contractors. Forge
employees would receive their entitlements from the sale of Forge
assets and the Federal Government scheme that guaranteed basic
entitlements.
He said: "There is no money to pay employees and no work to
perform. We are working closely with the administrators Ferrier
Hodgson to do whatever we can to help the employees at this
dreadful time for them and their families. We will be bringing the
employees back to their home town and helping them apply for their
entitlements."
Mr. Mentha emphasised that Forge's international businesses in
South Africa, Asia and the US would operate business as usual
pending a sale of those businesses. These operations come under
the Taggart and Webb Groups.
The Australian operations had to be assessed on a project-by-
project basis. "Today's moves by some of the owners of the
projects forced our hand because there is no cash to carry
employees," he said. Employees were notified of the redundancies
at meetings on Feb. 12.
The appointment of Administrators and Receivers follows the
company reporting significant cost over-runs and profit downgrades
in power construction contracts. Mr. Mentha said against a
backdrop of material movements in cash flow and EBITDA
projections, the Company's financiers did everything possible to
give the Company time to find a solution to repair its balance
sheet.
Forge previously employed 1,753 staff in Australia, mostly in the
construction division, with a further 814 overseas.
All employees and creditors should contact the voluntary
administrator at forgegroup@fh.com.au or (08) 9214 1485 for
further information.
Forge Group Limited (ASX:FGE) -- http://www.forgegroup.com.au--
is engaged in construction, commercial building, engineering,
maintenance and workshop fabrication. Forge is the holding company
of Cimeco Pty Ltd, Webb Construction West Africa Ltd, Abesque
Engineering Ltd (Abesque) and CTEC Pty Ltd, which provide a range
of engineering and construction services to a diverse range of
clients particularly to the resource and oil and gas sectors
through its operating entities.
Martin Jones, Andrew Saker and Ben Johnson of Ferrier Hodgson were
appointed as Joint and Several Voluntary Administrators of the
Company on Feb. 11, 2014. As a consequence, the financiers have,
pursuant to their securities, appointed Mark Mentha and Scott
Langdon of KordaMentha as Receivers and Managers.
The Australian said that the administrators were called in after
Forge's financier ANZ Group withdrew its support.
GT AUSTRALIA: S&P Affirms BB Rating on Class E Notes
----------------------------------------------------
Standard & Poor's Ratings Services affirmed its ratings on seven
classes of nonconforming residential mortgage-backed securities
(RMBS) issued by GT Australia Nominees Ltd. as trustee of Pepper
Residential Securities Trust No. 9 (PRST No. 9). The ratings
reflect S&P's opinion of the transaction's credit support,
collateral pool, servicer, and other features, based on S&P's
current criteria and assumptions.
Based on S&P's latest performance review of these transactions,
the notes are performing within its current rating expectations.
The default rates of the transactions' underlying mortgage loan
receivables have been relatively low to date. Total losses as of
Dec. 16, 2013, were approximately 0.26% of the total original
asset balance, or A$791,048. While arrears have been performing
above SPIN since April 2013, the asset pool has amortized
substantially to a pool factor of approximately 62% and arrears in
dollar terms have remained stable. The rated notes have also
benefited from an increase in credit enhancement due to the
amortization of the portfolio and the principal payment structure,
which has remained sequential to date.
Nevertheless, the pool faces potential borrower concentrations and
rising adverse selection risk at the tail end of the transaction,
whereby borrowers that are susceptible to financial difficulties
may remain in the pool. Although S&P expects further defaults and
losses to emerge, the current credit enhancements are commensurate
with the current ratings on the notes.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.
If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS AFFIRMED
Class Rating
A-2 AAA (sf)
A-3 AAA (sf)
B AA (sf)
C A (sf)
D BBB (sf)
E BB (sf)
F B (sf)
INVEST SERVICED: Best Western Hotel Sells 44 Units
--------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that the future of Best
Western Hotel at Gladstone Avenue in Wollongong is facing
uncertainty as 44 of the 55 units of the complex are set to be
placed in the hands of a new owner. The previous owner of hotel
Invest Serviced Apartments entered receivership in the month of
July 2009, the report says. PPB Advisory has since managed the
hotel on behalf of Macaquarie Bank.
According to dissolve.com.au, a spokesman for PPB said it was not
confirmed whether the staff of the hotel will be re-employed by
the buyer. The spokesman further noted that as the buyer does not
want to be identified for now, it was confirmed that the property
will still be operated as a hotel, dissolve.com.au relates.
dissolve.com.au relates that a hotel spokeswoman mentioned that
the new contract's settlement would occur on March 14. Following
this date, Best Western hotel will no longer manage as such. She
added that guests who have an outstanding reservation with the
hotel will be provided an offer to relocate to Best Western City
Sands, the second Wollongong hotel of Best Western, reports
dissolve.com.au.
J.D. PATTON: Worrells Solvency Appointed as Administrators
----------------------------------------------------------
Chris Cook -- chris.cook@worrells.net.au -- and Morgan Lane --
morgan.lane@worrells.net.au -- of Worrells Solvency & Forensic
Accountants were appointed as administrators of J.D. Patton Pty
Ltd, trading as Patton's Big Gun, on Feb. 17, 2014.
A first meeting of the creditors of the Company will be held at
the offices of Worrells Solvency & Forensic Accountants, Level 8,
102 Adelaide Street, in Brisbane, Queensland on Feb. 27, 2014.
LM GROUP: Surfers Paradise Property Sold for Half its Price
-----------------------------------------------------------
Michael West at The Sydney Morning Herald reports that the
administrators of failed funds management operation LM Group have
quietly sold a beachside property to a confidante and key
associate of LM's founder Peter Drake for less than half its
previous sale price.
The buyer, Lisa Maree Darcy, is a former LM director and trustee
for Peter Drake's family trust Ekard (Drake spelt backwards), the
report says.
According to the report, news of the preferential deal on the
property at Surfers Paradise, will be taken through gritted teeth
by Peter Drake's long-suffering creditors. They are forking out
AUD3 million in fees to the administrators FTI Consulting whose
duty it is to act on their behalf, the report notes.
The Gold Coast residence however was not put up for tender,
relates SMH. There was no disclosure of the sale to creditors. And
the asset may end up in the hands of Peter Drake, who owes LM
group AUD43 million in loans, is yet to be made bankrupt and
transferred almost half a million dollars to his girlfriend as LM
was collapsing last year, according to the report.
According to SMH, company searches show that on August 22 last
year, LM Investment Management (in administration) sold its
57 per cent stake in 20 Albatross Avenue, Mermaid Beach, for
AUD492,000. LM's own valuation for the half stake had been
AUD769,500.
It had bought the Mermaid Beach property in 2008 for
AUD1.795 million, four years before the group collapsed and when
it was under the control of its founder, Kiwi entrepreneur Peter
Drake, SMH notes.
The report says the house was on the market ten years ago for
AUD1.125 million. It was sold for AUD1.075 million in 2005 and
three years later LM bought it for AUD1.795 million, SMH
discloses.
The report says Peter Drake's former mansion across the street was
touted as a AUD20 million property during the boom. It sold last
year for just AUD7.35 million last September. While prices,
especially at the upper end have fallen since the financial
crisis, those in the AUD1 million to AUD2 million have lost only a
fraction of their value, SMH notes.
In light of the apparently deep discount on the LM sale to long-
time Drake associate Lisa Darcy, one source close to Mr. Drake
described the transaction as a 'sweetheart deal', saying it was
probably in breach of the administrator's fiduciary duties. For
one, it was a 'preferential payment' to a related party and as
such should be clawed back by the corporate regulator on behalf of
creditors, SMH reports.
As reported in the Troubled Company Reporter-Asia Pacific on
March 21, 2013, The New Zealand Herald said voluntary
administrators have been appointed to LM Investment Management, a
beleaguered Australian firm that controlled a frozen mortage fund
which New Zealanders had more than NZ$100 million tied up in. LM
directors on March 19, 2013, appointed John Park and Ginette
Muller of FTI Consulting as voluntary administrators, blaming the
move on liquidity problems caused by a smear campaign.
LM was the responsible entity of these registered managed
investment schemes:
-- LM Cash Performance Fund;
-- LM First Mortgage Income Fund;
-- LM Currency Protected Australian Income Fund;
-- LM Institutional Currency Protected Australian Income Fund;
-- LM Australian Income;
-- LM Australian Structured Products Fund; and
-- The Australian Retirement Living Fund.
LM also operated the unregistered LM Managed Performance Fund
(LMPF).
The Supreme Court of Queensland on Aug. 8, 2013, appointed
David Whyte of BDO as receiver of LMPF.
The move effectively takes control for the winding up out of the
hands of the liquidators appointed to FMIF's responsible entity,
LM Investment Management Limited (LM). Until their appointment as
liquidators, Mr. Park and Ms. Muller had been acting as voluntary
administrators of LM since March 2013.
MISSION NEW ENERGY: SLW Int'l Discloses 3.3% Stake as of Feb. 3
---------------------------------------------------------------
In an amended Schedule 13D filed with the U.S. Securities and
Exchange Commission, SLW International, LLC, and Stephen L. Way
disclosed that as of Feb. 3, 2014, they beneficially owned 362,540
ordinary shares of Mission NewEnergy Limited representing 3.30
percent of the issued and outstanding ordinary shares. The
percentage is based upon 10,980,620 ordinary shares outstanding,
which is the sum of (i) 10,870,275 Ordinary Shares issued and
outstanding as reported by the company in its Form 6-K, filed Oct.
28, 2013, plus (ii) 110,345 Ordinary Shares that would be issuable
to Mr. Way upon exercise of the warrants.
A copy of the regulatory filing is available for free at:
http://is.gd/cJCMiP
About Mission NewEnergy
Based in Subiaco, Western Australia, Mission NewEnergy Limited is
a producer of biodiesel that integrates sustainable biodiesel
feedstock cultivation, biodiesel production and wholesale
biodiesel distribution focused on the government mandated markets
of the United States and Europe.
The Company is not operating its biodiesel refining segment. The
refineries are being held in care and maintenance either awaiting
a return to positive operating conditions or the sale of assets.
The Company has materially diminished its Jatropha contract
farming operation and the company is now focused on divesting the
remaining Indian assets. The Company intends to cease all Indian
operations.
Mission NewEnergy disclosed net profit of AUD10.05 million on
AUD8.41 million of total revenue for the year ended June 30, 2013,
as compared with a net loss of AUD6.19 million on AUD38.20 million
of total revenue during the prior fiscal year.
The Company's balance sheet at June 30, 2013, showed AUD20.10
million in total assets, AUD32.60 million in total liabilities and
a AUD12.50 million total deficiency.
BDO Audit (WA) Pty Ltd, in Perth, Western Australia, issued a
"going concern" qualification on the consolidated financial
statements for the year ended June 30, 2013. The independent
auditors noted that the Company incurred operating cash outflows
of AUD3.7 million during the year ended 30 June 2013 and, as of
that date the consolidated entity's total liability exceeded its
total assets by AUD12.5 million. These conditions, along with
other matters, raise substantial doubt the Company's ability to
continue as a going concern.
MISSION NEW ENERGY: Westcliff No Longer Owns Ordinary Shares
------------------------------------------------------------
Westcliff Trust disclosed in an amended Schedule 13D filed with
the U.S. Securities and Exchange Commission that as of Feb. 3,
2014, it did not beneficially own ordinary shares of Mission
NewEnergy Limited.
On Aug. 24, 2012, the Trust purchased 63,238 of the Issuer's AUD65
face-value Series 2 Convertible Notes, which bore interest at a
rate of 4.00 percent per annum, payable semi-annually, and had a
conversion ratio of one note to four Ordinary Shares, resulting in
a conversion price of AUD16.50 per share (the "Series 2 Notes"),
from SLW International, LLC, an entity owned by Stephen L. Way,
the creator of the Trust for the benefit of his minor children.
The Trust purchased those Series 2 Notes for the purchase price of
AUD402,187, 10 percent of which was paid in cash with funds
contributed to the Trust by Mr. Way and the remaining 90 percent
of which was borrowed by the Trust from Muragai Financial, LLC, an
entity also controlled by Mr. Way. That loan was evidenced by a
promissory note bearing interest at the rate of 0.25 percent and
becoming due on Aug. 1, 2015, and was secured by such Series 2
Notes held by the Trust.
On Nov. 23, 2012, the Issuer and the holders of the Series 2 Notes
effected an exchange of all outstanding Series 2 Notes for newly
issued Series 3 Convertible Notes of the Issuer with a face value
of AUD65, which bear no coupon/interest payments and have a
conversion ratio of one note to 433 Ordinary Shares, resulting in
a conversion price of AUD0.15 per share (the "Series 3 Notes"), in
a transaction approved by the holders of the Issuer's Ordinary
Shares. As a result of this exchange, the Trust received 63,238
Series 3 Notes.
On Dec. 20, 2013, the Trust, SLW International, LLC, and Eastwood
Trust entered into a Note Purchase Agreement with Noble Haus Asia
Ltd. pursuant to which the Trust agreed to dispose of all of its
Series 3 Notes to Noble Haus. That transaction was consummated on
Feb. 3, 2014.
A copy of the regulatory filing is available for free at:
http://is.gd/vk5Iix
About Mission NewEnergy
Based in Subiaco, Western Australia, Mission NewEnergy Limited is
a producer of biodiesel that integrates sustainable biodiesel
feedstock cultivation, biodiesel production and wholesale
biodiesel distribution focused on the government mandated markets
of the United States and Europe.
The Company is not operating its biodiesel refining segment. The
refineries are being held in care and maintenance either awaiting
a return to positive operating conditions or the sale of assets.
The Company has materially diminished its Jatropha contract
farming operation and the company is now focused on divesting the
remaining Indian assets. The Company intends to cease all Indian
operations.
Mission NewEnergy disclosed net profit of AUD10.05 million on
AUD8.41 million of total revenue for the year ended June 30, 2013,
as compared with a net loss of AUD6.19 million on AUD38.20 million
of total revenue during the prior fiscal year.
The Company's balance sheet at June 30, 2013, showed AUD20.10
million in total assets, AUD32.60 million in total liabilities and
a AUD12.50 million total deficiency.
BDO Audit (WA) Pty Ltd, in Perth, Western Australia, issued a
"going concern" qualification on the consolidated financial
statements for the year ended June 30, 2013. The independent
auditors noted that the Company incurred operating cash outflows
of AUD3.7 million during the year ended 30 June 2013 and, as of
that date the consolidated entity's total liability exceeded its
total assets by AUD12.5 million. These conditions, along with
other matters, raise substantial doubt the Company's ability to
continue as a going concern.
NEW GENERATION: Vince & Associates Named as Administrators
----------------------------------------------------------
Peter Robert Vince -- pvince@vinceassociates.com.au -- and
Kylie Maree Wright -- kwright@vinceassociates.com.au -- of Vince &
Associates were appointed as administrators of New Generation
Engineering Pty Ltd on Feb. 18, 2014.
A first meeting of the creditors of the Company will be held at
the offices of Vince & Associates, 51 Robinson Street, in
Dandenong, Victoria, on Feb. 28, 2014, at 11:00 a.m.
PROJECT SUNSHINE: S&P Assigns 'B' Issuer Prelim. Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
long-term issuer preliminary credit rating of 'B' to Project
Sunshine III Pty Ltd., the parent entity of Project Sunshine IV
Pty Ltd. and Australian directories publisher, Sensis Pty Ltd.
(collectively Project Sunshine group). The rating incorporates
S&P's views on Project Sunshine III and its subsidiaries. The
outlook on the long-term rating is stable.
At the same time, S&P assigned a 'B+' issue preliminary rating and
a recovery rating of '2' to Project Sunshine IV Pty Ltd.'s
proposed term loan B facility (guaranteed by Project Sunshine III
Pty Ltd.). A recovery rating of '2' indicates S&P's expectation
of a substantial (70%-90%) level of recovery in the event of a
default.
Sensis is being partially divested by Telstra Corp. Ltd. for
A$454 million in cash to an affiliate of private equity group
Platinum Equity Advisors LLC. Telstra will retain a 30% interest
in the Project Sunshine group. S&P expects to convert the issuer
and debt ratings from preliminary to final ratings once the
acquisition is completed, which is expected to occur in the next
few weeks.
"The 'B' preliminary rating on Project Sunshine group is based on
our assessment of the group's "vulnerable" business risk profile
and "aggressive" financial risk profile," Standard & Poor's credit
analyst Paul Draffin said. "Our "vulnerable" business risk
profile assessment reflects primarily our view of the group's
exposure to the structurally declining print directories market,
and strong and growing competition in the online directories
market."
Sensis' operations are focused on its Yellow Pages and White Pages
print and online products, where the group holds more than 90%
share of the Australian print directories market. S&P expects
Sensis' print business, which currently accounts for about two-
thirds of total revenues, to decline by 20%-25% per annum in the
next few years. Furthermore, although S&P expects the White Pages
print product to prove somewhat more resilient to structural
industry trends in the near term, S&P considers that it faces
similar longer-term structural challenges.
In comparison with print, Sensis has a much smaller share of the
highly competitive and fragmented online directories market, which
is currently dominated in Australia by Google. S&P expects the
group's online revenues and earnings to be significantly lower
than the historical print revenue base.
S&P's financial risk assessment of "aggressive" is based primarily
on its view of the group's financial sponsor owner, Platinum
Equity, which will own 70% of Project Sunshine group. Under S&P's
financial policy criteria, it has assigned a score of FS-5 (FS:
financial sponsor), resulting in an "aggressive" financial risk
profile.
Mr. Draffin added: "The stable outlook reflects our expectation
that the Project Sunshine group will apply its strong free cash to
reduce debt under the 75% cash flow sweep mechanism of the term
loan and maintain adequate covenant headroom. This is despite our
expectation of double-digit revenue declines over the next few
years."
A lowering of the long-term rating could occur if greater-than-
expected structural earnings erosion causes Project Sunshine
group's covenant headroom to fall below 15%, heightening liquidity
pressures on the group. A downgrade could also occur if the
company's debt-to-EBITDA ratio is sustained above 2x, lengthening
the expected payback period of the debt facilities from internally
generated cash flow.
An upgrade is considered unlikely, but would be reliant on a
material strengthening of the group's business risk profile,
evidenced by earnings stabilization and growth, stable-to-growing
market shares in its digital businesses, and strengthening free
cash flow generation.
SP & MR CLOAK: Clifton Hall Appointed as Liquidators
----------------------------------------------------
Mark Hall and Timothy Clifton of Clifton Hall were appointed Joint
and Several Liquidators of SP & MR Cloak Pty Ltd on
Feb. 19, 2014.
A meeting of creditors will be held at Clifton Hall, Level 4, 12
Gilles Street, Adelaide, South Australia on Friday, 28 February
2014 at 11:00 am.
TOFALLA PTY: Hall Chadwick Appointed as Administrators
------------------------------------------------------
Blair Pleash -- bpleash@hallchadwick.com.au -- and David Ingram
-- dingram@hallchadwick.com.au -- of Hall Chadwick were appointed
as administrators of Tofalla Pty Limited on Feb. 18, 2014.
A first meeting of the creditors of the Company will be held at
Panthers Port Macquarie, Renaissance Room, 1 Bay Street, in Port
Macquarie, New South Wales, on Feb. 28, 2014, at 11:00 a.m.
================
H O N G K O N G
================
DAH SING BANK: Fitch Affirms 'BB+' Jr. Subordinated Debt Rating
---------------------------------------------------------------
Fitch Ratings has taken rating actions on five small Hong Kong
banks -- Dah Sing Bank, Shanghai Commercial Bank Ltd (SCB), Wing
Hang Bank Limited, China CITIC Bank International Limited (CNCBI)
and DBS Bank (Hong Kong) Limited (DBSHK).
The Issuer Default Ratings (IDRs) of Dah Sing Bank, SCB, Wing Hang
Bank and CNCBI are driven by the banks' standalone strength
denoted by their respective Viability Ratings (VR). The
affirmation of their IDRs with Stable Outlooks reflects Fitch's
view that the four banks will maintain adequate financial strength
to mitigate potential asset deterioration, including from
concentration in China-related assets. In particular, Fitch
assesses the banks' liquidity and funding positions as
sufficiently robust to withstand volatile fund flows.
DBSHK's IDRs are underpinned by institutional support from its
100% parent DBS Bank Ltd. (DBS; AA-/Stable). The bank's ratings
have been affirmed with a Stable Outlook based on the agency's
view that ability and propensity of parental support remain
unchanged.
Key Rating Drivers And Sensitivities - IDRs AND VRs (DAH SING
BANK, SCB, WING HANG BANK and CNCBI)
The banks' VRs and, in turn, their IDRs reflect prudent loan
growth, which was generally below the system-wide average (2013:
16% yoy). This helped them maintain adequate capital and
liquidity. All the banks are focused on cross-border expansion as
their lack of scale and pricing power makes it difficult for them
to compete in the mature Hong Kong market. The banks have not
materially relaxed their risk appetite even though expansion into
China is more profitable. New non-bank lending generally finances
genuine trade for mainly existing customers and benefits from
collateral. Some interbank exposures lack economic purposes, but
related risks to Chinese banks are manageable.
CNCBI's brisk growth in gross mainland China exposure (MCE), which
is the sum of non-bank China exposure and cross-border claims on
Chinese banks, to 52% of total assets, or 6.1x Fitch Core Capital
(FCC), at end-1H13 stands out among the peers, with the sector
average exposure at 31% of total assets at end-September 2013.
The bank's mainland China exposure expanded because it financed
its Hong Kong customers' mainland businesses and the offshore
operations of Chinese customers referred by China CITIC Bank
(CNCB; BBB/Stable), its parent. The bank's business model with
heavy concentration on China-related loans is a key constraint for
the ratings, although the portfolio appears prudently managed and
covered by collateral, guarantees and stand-by letters of credit.
Fitch expects the bank to issue new capital to maintain further
growth and adequate capital (FCC ratio: 11.9% at end 1H13).
CNCBI's high proportion of marketable liquid assets underpins its
liquidity position despite rapid loan growth.
Dah Sing Bank's annual loan growth (1H13: 17% including trade
bills) has outpaced the system average since 2012 as the bank
accelerated cross-border expansion. The growth in MCE to 29% of
total assets, or 3.1x of FCC, at end-1H13 (2011: 26%, x2.9,
respectively) contributed to improved margin (1H13: 1.3%
annualised versus 1H12: 1.1%) due to higher market rates in China
and risk premium. However, credit growth is likely to moderate
due to the cap on banks' loan-to-deposit ratio at 75% in China and
capital constraint brought on by rapid growth. Dah Sing Bank's
investments in other financial institutions above the regulatory
threshold (i.e. 10% of banks' common equity Tier 1 capital) formed
1.3% of risk-weighted assets at end-1H13. Any unsold amount and
investments in legacy hybrid instruments that are not called would
also reduce its capital ratios as 20% of these investments above
the threshold will start to be deducted from banks' regulatory
capital each year from 2014. Dah Sing Bank's FCC ratio would have
been 10.8% compared with 12.3% at end 1H13 if all those
investments are excluded, although Fitch was informed by the
management that the investments were reduced during 2H13. The
rapid loan growth raised its loan/deposit ratio to 84% at end 1H13
(2012: 77%), although the bank still maintains adequate cash and
other liquid assets (8% of total assets) as liquidity buffer.
SCB remains best capitalized among the peers with FCC ratio of
19.5% at end-1H13, which, together with recurring profit and
collateral, underpin its solid loss absorbing capability.
Nevertheless, high concentration in interbank exposures of 45% of
total assets at end-1H13 - including claims on Chinese banks (18%
of total assets) - renders the bank vulnerable to volatility in
financial markets. However, adequate cash and marketable
securities and its low loan/deposit ratio of 54% at end-1H13
support further growth and its liquidity position.
Wing Hang Bank's MCE fell to 27% of total assets, or 2.9x of FCC,
at end 1H13 (2011: 29%, 3.5x) after it focused on growth in Macao
(13% of total assets) while maintaining sound capital and
liquidity. Wing Hang Bank manages liquidity tightly by limiting
credit growth and holding sovereign bonds with high ratings, such
as US government bonds. The bank's China concentration risk could
increase and weigh on its intrinsic strength if Overseas-Chinese
Banking Corp (OCBC; AA-/Stable) were to acquire the bank as a hub
for a broader Greater China strategy. OCBC and Wing Hang Bank
have extended their exclusive discussions on the potential
acquisition until 3 March 2014.
The banks' VRs and IDRs are sensitive to the banks' risk appetite
for China expansion because the potentially more risky exposure is
not as strictly regulated by the Hong Kong authorities as domestic
property-related lending. Aggressive expansion, typically above
the sector average, would put pressure on the banks' ratings if
the growth is not balanced with higher margins and adequate
capital and liquidity. That said, CNCBI's IDR would not fall
below 'BBB-' regardless of the level of its VR. This is based on
assumed support from CNCB and, ultimately, the Chinese government
in light of the state ownership in CNCB.
The small banks' modest franchises and less diversified business
models limit the potential for upgrades.
Key Rating Drivers And Sensitivities- IDRs AND SUPPORT RATING
(DBSHK)
The ratings of DBSHK reflect Fitch's view of an extremely high
probability of support from its parent, if needed. This reflects
the core importance of DBSHK to its parent's pan-Asian franchise,
DBS's full control/ownership and a high level of integration with
its parent. The ratings also take into account DBS's strong
ability to extend extraordinary support on a timely basis.
Changes to DBS's ratings or its willingness to extend
extraordinary support would affect the ratings of DBSHK.
Key Rating Drivers And Sensitivities -- Support Ratings And
Support Rating Floors (DAH SING BANK, SCB, WING HANG BANK and
CNCBI)
Support Ratings (SR) and Support Rating Floors (SRF) of Dah Sing
Bank, SCB and Wing Hang Bank have been affirmed, reflecting the
moderate probability of support from the Hong Kong authorities, if
needed, due to their limited systemic importance. Nevertheless,
the SRs and SRFs face the prospect of being downgraded once Fitch
completes its global review of how regulatory initiatives and the
introduction of resolution schemes impact the authorities' stance
on support. Even if the SRs and SRFs were downgraded, there would
be no impact on their VRs, and by implication, their IDRs.
CNCBI's SR reflects the bank's strategic importance to CNCB given
its complementary role in its parent's China activities. CNCB's
less than near-full ownership in the bank (70.3%) is the major
constraint for the rating. However, positive rating pressure may
arise if its importance to and integration with its parent deepens
through further business referral and collaboration.
Key Rating Drivers And Sensitivities- Subordinated Debt
Subordinated debt issued by Dah Sing Bank, Wing Hang Bank and
CNCBI are all notched down from their VRs (the anchor rating) as
the banks' credit profiles are driven by their standalone
financial strength. Their debt ratings are therefore primarily
sensitive to a change in these banks' VRs.
Fitch rates Dah Sing Bank's and CNCBI's lower Tier 2 instruments
one notch below their respective VRs to reflect their below-
average recovery prospects relative to senior unsecured
instruments given their subordination. Fitch also rates CNCBI's
and Dah Sing Bank's subordinated debt with non-viability clauses
and partial write-down features at the same level as lower Tier 2
instruments. The ratings of Dah Sing Bank's and Wing Hang Bank's
perpetual junior subordinated debt are notched three levels from
the VRs - two notches for greater non-performance risk given their
interest deferral features and one notch for below-average loss
severity.
The rating actions are as follows:
Dah Sing Bank
Long-Term Foreign Currency IDR affirmed at 'BBB+'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'bbb+'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Senior unsecured debt affirmed at 'BBB+'
Lower Tier-2 subordinated debt without non-viability clauses
affirmed at 'BBB'
Subordinated notes with non-viability clauses affirmed at 'BBB'
Perpetual junior subordinated debt without non-viability clauses
affirmed at 'BB+'
SCB
Long-Term Foreign Currency IDR affirmed at 'A-'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Wing Hang Bank
Long-Term Foreign and Local Currency IDRs affirmed at 'A-';
Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F2'
Viability Rating affirmed at 'a-'
Support Rating affirmed at '3'
Support Rating Floor affirmed at 'BB'
Perpetual junior subordinated notes without non-viability affirmed
to 'BBB-'
CNCBI
Long-Term Foreign Currency IDR affirmed at 'BBB'; Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F3'
Viability Rating affirmed at 'bbb'
Support Rating affirmed at '2'
Senior unsecured securities affirmed at 'BBB'
Lower Tier-2 subordinated debt without non-viability clauses
affirmed at 'BBB-'
Subordinated notes with non-viability clauses affirmed at 'BBB-'
DBSHK
Long-Term Foreign and Local Currency IDRs affirmed at 'AA-';
Outlook Stable
Short-Term Foreign Currency IDR affirmed at 'F1+'
Support Rating affirmed at '1'
UMEWORLD LTD: Albert Wong & Co. Raises Going Concern Doubt
----------------------------------------------------------
UMeWorld Limited filed with the U.S. Securities and Exchange
Commission on Feb. 12, 2014, its annual report on Form 20-F for
the fiscal year ended Sept. 30, 2013.
Albert Wong & Co. expressed substantial doubt about the
Company's ability to continue as a going concern, citing that the
Company has suffered recurring losses from operations and had
working capital of approximately $593,601 at Sept. 30, 2013, as
compared to a working capital deficiency of $19.02 million at
Sept. 30, 2012.
The Company reported a net loss of $232,941 on $760,329 of total
revenues for the fiscal year ended Sept. 30, 2013, compared with a
net loss of $92,893 on $166,803 of total revenues in fiscal 2012.
The Company's balance sheet at Sept. 30, 2013, showed $2 million
in total assets, $1.68 million in total liabilities, and
stockholders' equity of $317,581.
A copy of the Form 20-F is available at:
http://is.gd/FCuE3B
UMeWorld Limited operates in the digital media business. The
company operates UMeLook, an online video platform that focuses on
bringing foreign video content to China. It deploys UMeLook
through a content delivery network with a range of coverage in
Mainland China, Hong Kong, and Taiwan. The company was formerly
known as AlphaRx, Inc. and changed its name to UMeWorld Limited in
April 2013 to reflect the company's focus and direction. UMeWorld
Limited is based in Causeway Bay, Hong Kong.
=========
I N D I A
=========
CHANDRA COAL: CRISIL Reaffirms 'B' Rating on INR70MM Loans
----------------------------------------------------------
CRISIL's rating on the bank facilities of Chandra Coal Pvt Ltd
continues to reflect CCPL's average financial risk profile, marked
by a high total outside liabilities to tangible net worth ratio
and below-average interest coverage ratio, modest scale of
operations, and limited geographical reach in the coal trading
business. These rating weaknesses are partially offset by the
extensive experience of CCPL's promoters in coal trading.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 70 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that CCPL will benefit over the medium term from
its existing relationships with customers and its promoters'
extensive experience in the coal trading business. The outlook may
be revised to 'Positive' in case of an improvement in the
company's capital structure along with an improvement in margins.
Conversely, the outlook may be revised to 'Negative' in case of
sharply lower-than-expected profitability or deterioration in
working capital management.
CCPL, based in Nagpur (Maharashtra), trades in coal, mainly in the
Vidarbha region of Maharashtra. The company supplies to various
industries including cement, paper, textile, power, and chemical.
Though the company was incorporated in 2004, the promoters have
extensive experience in the coal trading business through their
holdings in other companies in the same business.
For 2012-13, CCPL reported a profit after tax (PAT) of INR10.8
million on net sales of INR458.2 million, against a PAT of INR2.7
million on net sales of INR424.7 million for 2011-12.
DURGA PROJECTS: CRISIL Assigns 'B+' Ratings to INR800M Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Durga Projects & Infrastructure Pvt Ltd (DPIPL;
part of the Durga group).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 708 CRISIL B+/Stable
Working Capital
Demand Loan 92 CRISIL B+/Stable
The rating reflects Durga group's susceptibility to risks related
to the completion and saleability of its on-going and upcoming
real estate residential projects in Bengaluru (Karnataka) and
Patna (Bihar), and to cyclicality inherent in the Indian real
estate industry. These rating weaknesses are partially offset by
the extensive industry experience and established track record of
the Durga group's promoters in the residential real estate
development business.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of DPIPL and Durga Hi-Rise Pvt Ltd
(DHRPL). This is because both these companies, together referred
to as the Durga group, are under the same management. Moreover,
both DPIPL and DHRPL have considerable operational and business
linkages with each other.
Outlook: Stable
CRISIL believes that the Durga group will continue to benefit from
the extensive industry experience of its promoters and its
established track record in the real estate industry in Patna and
Bengaluru. The outlook may be revised to 'Positive' if the group
completes and sells its on-going and upcoming projects at a faster
pace leading to an improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if there are
any delays in project completion leading to weak financial risk
profile.
Set up in 2006 as a private limited company, DPIPL is involved in
commercial and residential real estate construction business in
Bengaluru and Patna. DHRPL, incorporated in 2009, is also a real
estate developer. The companies are part of the Durga group
promoted by Mr. Navneet Jhunjhunwala and his brothers Mr.
Navaratan Jhunjhunwala and Mr. Neeraj Jhunjhunwala.
EPSON VITRIFIED: CRISIL Reaffirms B+ Rating on INR168.5MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Epson Vitrified Pvt Ltd
continue to reflect EVPL's exposure to risks associated with
significant increase in supply of vitrified tiles with fresh
industry-wide capacity additions, and its below-average financial
risk profile, marked by a modest net worth and high gearing, due
to large working capital requirements. These rating weaknesses are
partially offset by the advantageous location of EVPL's facility,
the strong track record of its promoters through their flagship
concern, Himat Glazed Tiles, and the significant funding support
it receives from them.
Amount
Facilities (INR Mln) Ratings
---------- -------- -------
Bank Guarantee 12.5 CRISIL A4 (Reaffirmed)
Cash Credit 50 CRISIL B+/Stable (Reaffirmed)
Rupee Term Loan 118.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that EVPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if EVPL reports better-than-
expected sales growth and improvement in its profitability, and if
it improves its financial risk profile led by achieving a stronger
capital structure. Conversely, the outlook may be revised to
'Negative' if the company undertakes any debt-funded capacity
expansion, and/or there is a more-than-expected stretch in its
working capital cycle, and/or it reports less-than-anticipated
revenues or profitability.
Update
For 2012-13 (refers to financial year, April 1 to March 31), EVPL
reported a turnover of INR341 million as against INR262 million
for the previous year, reflecting healthy offtake. For the nine
months ended in December 31, 2013, SCPL has registered a turnover
of around INR226 million; the turnover is expected to remain
stable at INR340 million to INR350 million in 2013-14. EVPL's
operating profitability remained moderate at 15.3 per cent in
2012-13. However, with increasing power and fuel costs, some
pressure on its profitability is expected in 2013-14.
EVPL's working capital requirements remained high, with gross
current assets of 155 days as on March 31, 2013. Given the
economic environment, the company's inventory and receivables are
expected to rise over the medium term, With the increase in the
company's scale of operations and a stretch in its operating cycle
through rise in inventory and receivables, CRISIL believes that
EVPL's working capital requirements will increase significantly
over the medium term.
EVPL's financial risk profile continues to be below average,
marked by a small net worth of INR80 million as of March 31, 2013,
and stretched liquidity due to its working-capital-intensive
operations.
For 2012-13, EVPL reported a profit after tax (PAT) of INR1.4
million on an operating income of INR341 million, as against a PAT
of INR2.1 million on an operating income of INR262 million for
2011-12.
Incorporated in August 2010, EVPL manufactures vitrified ceramic
tiles. Its manufacturing unit is in Morbi (Gujarat). The company
is promoted by Mr. Haresh Patel and Mr. Ramniklal Patel.
GURU GOBIND: CRISIL Upgrades Rating on INR270MM Loans to 'B'
------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Guru
Gobind Singh Educational Charitable Trust to 'CRISIL B/Stable'
from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 15 CRISIL B/Stable (Upgraded
from 'CRISIL D')
Term Loan 180 CRISIL B/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term 75 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL D')
The rating upgrade is driven by GGS's timeliness in servicing of
term debt because of improvement in its liquidity, marked by
regular funding support from its promoters by way of unsecured
loans that are subordinated to bank debt. GGS's liquidity is also
supported by timely collection of fees and moderate utilisation of
its general purpose overdraft facility. GGS has some cushion in
its bank limits, with bank limit utilisation averaging 84 per cent
over the five months ended January 31, 2014.
The rating upgrade also factors in GGS's improved business risk
profile driven by increase in number of students; however, the
overall occupancy remains low, constraining the trust's liquidity.
As a result, in 2014-15 (refers to financial year, April 1 to
March 31), GGS is likely to generate just sufficient net cash
accruals of over INR27 million to meet its term debt obligations
of about INR27.5 million. CRISIL believes that GGS's liquidity,
though improved, will remain constrained over the medium term
because of low occupancy and just sufficient net cash accruals.
The rating reflects GGS's limited track record of operations and
exposure to intense competition in the education sector. GGS also
has low occupancy level and its operating profitability is
susceptible to the stringent regulatory environment in the
education sector. These rating weaknesses are partially offset by
the extensive industry experience of GGS's trustees, the healthy
demand prospects for the education sector, and the trust's
moderate financial risk profile marked by moderate gearing.
Outlook: Stable
CRISIL believes that GGS will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of more-than-expected
ramp-up in GGS's operations with significant increase in intake of
students, resulting in improvement in its net cash accruals, and
consequently, its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if GGS records substantial decline in
student intake or undertakes any large debt-funded capital
expenditure programme, resulting in weakening in its financial
risk profile, particularly its liquidity.
GGS, promoted by Mr. Manmohan Singh Chawla, was incorporated in
2006 as an educational charitable trust. GGS opened an engineering
college, SGT Engineering College, at Budhera in Gurgaon (Haryana),
which became operational in academic year 2010-11. The college
currently offers Bachelor of Technology (420 seats; seven
subjects) and Master of Technology (54 seats; three subjects)
courses.
GGS reported a surplus of INR1.74 million on net fee income of
INR73.7 million for 2012-13, against a surplus of INR0.66 million
on net fee income of INR39.6 million for 2011-12.
HARA PARBATI: CRISIL Lowers Rating on INR65MM Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Hara Parbati Cold Storage Pvt Ltd to 'CRISIL D/CRISIL D' from
'CRISIL B-/Stable/CRISIL A4'. The downgrade reflects instances of
delay by HPCSPL in servicing its debt; the delays have been caused
by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 0.9 CRISIL D (Downgraded from
'CRISIL A4')
Cash Credit 35.3 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Proposed Long Term
Bank Loan Facility 6.8 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Working Capital
Term Loan 22 CRISIL D (Downgraded from
'CRISIL B-/Stable')
HPCSPL also has a small scale of operations and weak financial
risk profile marked by negative net worth and low accruals. The
ratings also factor in the company's susceptibility to adverse
regulatory changes and to intense competition in the West Bengal
(WB) cold storage industry. These rating weaknesses are partially
offset by the extensive industry experience and established
regional position of HPCSPL's promoters.
Incorporated in 1996, HPCSPL provides cold storage facilities to
potato farmers and traders. It also undertakes potato trading. Its
cold storage facility is in Hooghly district (WB).
For 2012-13 (refers to financial year, April 1 to March 31),
HPCSPL reported a profit after tax (PAT) of INR0.46 million on net
sales of INR47.2 million, against PAT of INR1.04 million on net
sales of INR21.2 million for 2011-12.
HULDIBARI INDUSTRIES: CRISIL Reaffirms B+ Rating on INR67.5M Loan
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Huldibari Industries &
Plantation Co Ltd reflect HIPCL's small scale of operations, and
weak financial risk profile, marked by an eroded net worth. These
rating weaknesses are partially offset by the promoters' extensive
experience in the tea industry, and HIPCL's stable income from
lease rentals, from its properties in Kolkata (West Bengal).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 2.5 CRISIL A4 (Reaffirmed)
Cash Credit 52.5 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 2.5 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 12.5 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that HIPCL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the company reports a
substantial improvement in its capital structure, primarily
through an equity infusion. Conversely, the outlook may be revised
to 'Negative' if HIPCL's working capital requirement increases, or
the company undertakes a large debt-funded capital expenditure
(capex) programme, or generates lower-than-expected cash accruals
over the medium term.
HIPCL was set up in by Mr. C L Bajoria and his family in 1889 as
an Association of Persons named Huldibari Tea Association. The
association was reconstituted as HIPCL in 1995. The company, based
in West Bengal, processes black crush, tear, and curl tea.
HIPCL reported a profit after tax (PAT) of INR16.2 million on
operating revenues of INR210.7 million for 2012-13 (refers to
financial year, April 1 to March 31), vis-a-vis a PAT of INR1.5
million on operating revenues of INR157.5 million in 2011-12.
LEAPFROG ENG'G: CRISIL Assigns 'B+' Rating to INR20MM Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Leapfrog Engineering Services Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term
Bank Loan Facility 20 CRISIL B+/Stable (Assigned)
Bank Guarantee 10 CRISIL A4 (Assigned)
Overdraft Facility 40 CRISIL A4 (Assigned)
The ratings reflect LESPL's modest scale of operations with
exposure to risks inherent in tender-based business, and its
average financial risk profile, marked by a small net worth and
below-average gearing. These rating weaknesses are partially
offset by the extensive experience of LESPL's promoters in the
engineering industry.
Outlook: Stable
CRISIL believes that LESPL will continue to benefit over the
medium term from the extensive industry experience of its
promoters and its established relationship with customers. The
outlook may be revised to 'Positive' if the company exhibits
substantial and sustained growth in its scale of operations and
profitability, leading to improvement in its cash accruals and
subsequently in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' in case of decline in LESPL's
profitability, resulting in lower-than-expected accruals, or
elongation in the working capital cycle, leading to pressure on
its liquidity.
LESPL, based in Bengaluru (Karnataka), was originally established
as a partnership firm by Mr. Prabhav Rao and his wife, Mrs.
Priyashaila Rao in 2003; the firm was reconstituted as a private
limited company in 2005. LESPL undertakes engineering, procurement
and construction (EPC) contracts for electrical systems.
For 2012-13 (refers to financial year, April 1 to March 31), LESPL
reported a profit after tax (PAT) of INR5.5 million on net sales
of INR175 million, against a PAT of INR5.3 million on net sales of
INR238 million for 2011-12.
LINKSON INT'L: CRISIL Cuts Rating on INR725MM Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Linkson International Ltd to 'CRISIL D/ CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 375 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Letter of credit &
Bank Guarantee 200 CRISIL D (Downgraded from
'CRISIL A4')
Long Term Loan 103.8 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term
Bank Loan Facility 46.2 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The rating downgrade reflects instances of delay by LIL in
servicing its debt. The delays were caused by the company's
weakened liquidity, driven by a significant stretch in its working
capital cycle with increasing inventory and receivables.
LIL has highly working-capital-intensive operations, geographical
concentration in its revenue profile and weak financial risk
profile. However, the company benefits from its promoters'
extensive experience in the coal-trading business and its
established relationships with customers.
LIL, set up in 1984 by Mr. Yashwant Sangla, is engaged in coal
trading and also undertakes fabrication and galvanisation of steel
at its unit in Nagpur (Maharashtra).
For 2012-13 (refers to financial year, April 1 to March 31), LIL
reported a profit after tax (PAT) of INR48 million on net sales of
INR3.1 billion, against a PAT of INR46 million on net sales of
INR3 billion for 2011-12.
LINKSON ISPAT: CRISIL Cuts Rating on INR300MM Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Linkson Ispat & Energies Pvt Ltd to 'CRISIL D/ CRISIL D' from
'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 150 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Letter of credit & 150 CRISIL D (Downgraded from
Bank Guarantee 'CRISIL A4+')
The rating downgrade reflects instances of delays by LIEPL in
servicing its debt. The delays were caused by the company's
weakened liquidity, driven by a significant stretch in its working
capital cycle with increasing inventory and receivables.
LIEPL has highly working-capital-intensive operations,
geographical concentration in its revenue profile and average
financial risk profile. However, the company benefits from its
promoters' extensive experience in the coal-trading business and
its established relationships with customers.
LIEPL, set up in 1999 by Mr. Yashwant Sangla, is engaged in coal
trading in Nagpur (Maharashtra).
For 2012-13 (refers to financial year, April 1 to March 31), LIEPL
reported a profit after tax (PAT) of INR27 million on net sales of
INR2 billion, against a PAT of INR25 million on net sales of
INR1.8 billion for 2011-12.
NAMRATA PROMOTERS: CRISIL Reaffirms 'B+' Rating on INR175MM Loans
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Namrata Promoters &
Builders continues to reflect NPB's exposure to risks related to
the completing, funding, and saleability of its ongoing
residential projects and to cyclicality inherent in the Indian
real estate industry, and geographical concentration risk. These
rating weaknesses are partially offset by the benefits that NPB
derives from its promoters' extensive experience in the real
estate industry in Pune (Maharashtra) and the Namrata group's
track record of executing projects on time.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 75 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that NPB will continue to benefit over the medium
term from its promoters' extensive experience in the real estate
industry in Pune. The outlook may be revised to 'Positive' in case
NPB registers better-than-expected booking of units and timely
receipt of customer advances for its ongoing projects, leading to
higher-than-expected cash inflows. Conversely, the outlook may be
revised to 'Negative' in case the firm registers deterioration in
its liquidity, either because of delays in receipt of customer
advances or time or cost overruns in the projects, or if the firm
undertakes any other large project.
Update
One of the ongoing projects of NPB, Eco City, has seen better-
than-expected bookings of units; 87 per cent of the units in this
project have been booked and receipt of customer advances stood at
around INR271 million. The better-than-expected bookings and
receipt of customer advances have partly mitigated funding- and
demand-related risks for this project. However, around 40 per cent
of construction is still pending for this project. In addition,
NPB has recently started implementing a new project in Talegaon,
Pune, and is expected to have around 208 saleable units. The total
project is expected to cost around INR230 million, which would be
funded through external debt of INR75 million, promoters' funding
of INR26 million, and the rest from customer advances. The rating
remains constrained because of high risk as the project is in
initial phases of construction;
NPB, established in 1994, is part of the Pune-based Namrata group.
The group was set up in 1987 by Mr. Deepak Shah and his brother,
Mr. Shailesh Shah. The Namrata group has executed numerous
residential and commercial projects in Pune over the last 25
years. NPB is currently executing a 320-flat residential project
in Talegaon (Maharashtra) named Eco City.
NETWORK TRADELINK: CRISIL Reaffirms 'B+' Rating on INR20MM Loan
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Network Tradelink Pvt
Ltd continue to reflect NTPL's large working capital requirements
and below-average financial risk profile marked by small net
worth, high gearing, moderate debt protection metrics, and
stretched liquidity. These rating weaknesses are partially offset
by the benefits that the company derives from its promoters'
extensive experience in the textiles industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 30 CRISIL A4 (Reaffirmed)
Outlook: Stable
CRISIL believes that NTPL will continue to benefit over the medium
term from its promoters' extensive experience in the textiles
industry. The outlook may be revised to 'Positive' if the company
reports increase in its revenue and profitability, or improvement
in its working capital management, leading to improvement in its
liquidity. Conversely, the outlook may be revised to 'Negative' if
NTPL undertakes a large debt-funded capital expenditure program or
reports weakening in its working capital management.
Update
For 2012-13 (refers to financial year, April 1 to March 31), NTPL
registered revenue of INR787 million, which was broadly in line
with CRISIL's expectation. At about 2 per cent, NTPL's operating
margin has improved on the back of increased in-house processing
of grey fabric vis-a-vis the traditional outsourcing of processing
and bleaching of grey fabric on jobwork basis. CRISIL believes
that NTPL will maintain its revenue growth but the company's
operating margin, though improved, will remain susceptible to
intense competition in the textile industry.
NTPL's financial risk profile remains below average, marked by
modest net worth, high gearing, moderate debt protection metrics,
and stretched liquidity. As on March 31, 2013, the company had a
small net worth of INR100 million and a high gearing of about 0.56
times. Its interest coverage and net cash accruals to total debt
ratios are moderate, at 2.3 times and 0.07 times, respectively,
for 2012-13. The company's liquidity remains stretched because of
low cash accruals, large working capital requirements, and high
bank limit utilization. NTPL's operations are working-capital-
intensive, as reflected in its large gross current assets of 112
days as on March 31, 2013, driven by high debtor level and
advances to suppliers. The company meets its incremental working
capital requirements by stretching creditors and borrowing against
fund-based bank limits, which, therefore, are fully utilized.
CRISIL believes that NTPL's operations will remain working-
capital-intensive over the medium term. The company's financial
risk profile is, however, supported by fund support from its
promoters in the form of unsecured loans that are expected to
remain in the business over the medium term.
NTPL reported a net profit of INR0.8 million on net sales of
INR787 million for 2012-13, vis-a-vis a net profit of INR0.7
million on net sales of INR744 million for 2011-12.
NTPL, incorporated in 2009, is promoted by the Kolkata (West
Bengal)-based Jhawar family; the company trades in, and processes,
grey fabric.
NEW AGE: CRISIL Upgrades Rating on INR92 Million Loans to 'B-'
--------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of New Age
Hotels and Resorts Ltd to 'CRISIL B-/Stable' from 'CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 50 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Proposed Long Term
Bank Loan Facility 17 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
Term Loan 25 CRISIL B-/Stable (Upgraded
from 'CRISIL D')
The rating upgrade is driven by NAHRL's timeliness in servicing
its term debt, backed by improved liquidity, and regular funding
support from promoters in the form of unsecured loans that are
subordinated to bank debt. NAHRL's liquidity has also been
supported by improved occupancy at its Nainital hotel. Bank limit
utilisation has averaged 93 per cent in the 12 months through
November 2013. However, NAHRL's net cash accruals remain low -
expected at around INR11 million for 2014-15 (refers to financial
year, April 1 to March 31) - against maturing term debt of about
INR13.5 million for the year. CRISIL believes that NAHRL's
liquidity will remain constrained over the medium term by of low
occupancy and insufficient net cash accruals to service term debt.
The ratings continue to reflect NAHRL's low occupancy, small scale
of operations, and cyclicality in the intensely competitive
hospitality industry. These rating weaknesses are partially offset
by the extensive experience of NAHRL's promoters in the
hospitality industry, and above-average financial risk profile,
marked by conservative gearing and comfortable debt protection
measures.
Outlook: Stable
CRISIL believes that NAHRL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if NAHRL reports higher than
expected revenue and profitability, resulting in improved
liquidity and financial risk profile. Conversely, the outlook may
be revised to 'Negative' if NAHRL's financial risk profile
deteriorates on account of further decline in revenue and
profitability or in case of a larger-than expected, debt-funded
capital expenditure, or if the company's liquidity weakens
significantly on account of increase in working capital
requirements.
NAHRL was set up in 1995 by Mr. Manmohan Singh Chawla. It operates
in the hotel industry. The company commenced operations in 1996,
with three hotels - in Nainital and Haridwar (Uttarakhand), and
Chamba (Himachal Pradesh). It recently opened a fourth hotel - at
Mahipalpur, New Delhi.
NAHRL reported a net profit of INR1.71 million on net sales of
INR102.05 million for 2012-13, against a net profit of INR1.87
million on net sales of INR87.58 million for 2011-12.
OMSAIRAM STEELS: CRISIL Reaffirms 'B+' Rating on INR918.7MM Loans
-----------------------------------------------------------------
CRISIL has reaffirmed the rating on the bank facilities of
Omsairam Steels and Alloys Pvt Ltd to 'CRISIL B+/Stable/CRISIL
A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 70 CRISIL A4 (Reaffirmed)
Cash Credit 360 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 113.9 CRISIL B+/Stable (Reaffirmed)
Term Loan 444.8 CRISIL B+/Stable (Reaffirmed)
The rating was downgraded from 'CRISIL BB-/Stable/CRISIL A4+' to
'CRISIL B+/Stable/CRISIL A4' on February 17, 2014 on account of
deterioration in financial risk profile on account of challenging
environment for steel and related industries in the domestic
economy. The weakness in financial risk profile is marked by high
gearing levels of around 3.9 times as on March 31, 2013, as
compared to around 2.6 times as on March 31, 2011. The
deterioration is mainly due to large capital expenditure (capex)
undertaken over the two years ended March 31, 2013, to the extent
of INR560 million, funded by a mix of bank debt, internal accruals
and unsecured loans. CRISIL believes that OSAPL's gearing will
remain high at similar levels on account of capex plans over the
near to medium term.
OSAPL's weak financial risk profile is also on account of
deterioration in the company's liquidity, on account of large
repayments (to the extent of INR135 million) as compared to cash
accruals (of around INR137 million). While the cash accruals are
expected to remain sufficient to repay its fixed debt obligations
in 2013-14 (refers to financial year, April 1 to March 31); a
large part of cash accruals is also on account of value added tax
(VAT) refund of INR150 million. CRISIL believes that OSAPL's
liquidity will remain constrained on account of increased
dependence on VAT refund and promoters' funds to repay fixed
obligations, coupled with high bank limit utilisation over the
near to medium term.
The company is expected to witness a decline in revenues to the
extent of INR4.6 billion during 2013-14, as compared to INR5.0
billion in 2012-13. The decline is mainly on account of weak
offtake of steel and related products in the industry. However, on
account of large capex towards process improvement and capacity
expansion, the overall profitability is expected to increase to
around 7.0 per cent in 2013-14 as compared to around 5.8 per cent
in previous year. CRISIL believes that OSAPL's business risk
profile will continue to remain constrained on account of weakness
in the steel and allied industries, supported by expected increase
in operating profitability over the near term.
CRISIL's rating on the bank loan facilities of OSAPL will continue
to reflect below average financial risk profile on account of
highly leveraged capital structure, coupled with susceptibility of
operating margins on account of volatility in steel and its raw
material prices. These rating weaknesses are partially offset by
promoters' extensive industry experience and established
relationships with customers and suppliers coupled with timely
support in the form of unsecured loans in the business.
Outlook: Stable
CRISIL believes that OSAPL will maintain its stable business risk
profile over the medium term, backed by the extensive experience
of its promoters in the steel industry, its integrated nature of
operations and established relationships with customers and
suppliers. The outlook may be revised to positive if there is
significant improvement in its financial risk profile marked by
capital structure and debt protection measures. Conversely, the
outlook may be revised to 'Negative' if there is significant
deterioration in its profitability or a stretch in its working
capital cycle leading to further deterioration in the financial
risk profile.
OSAPL, incorporated in 2003, is owned and managed by the Bharuka
family. The company manufactures long steel product such as mild
steel (MS) billets and thermo-mechanically treated (TMT) bars. Its
business operations are managed by Mr. Rajendra Bharuka and Mr.
Dinesh Bharuka.
OSAPL reported a profit after tax (PAT) of INR41.9 million on net
sales of INR5.0 billion for 2012-13, as against a PAT of INR39.2
million on net sales of INR4.5 billion for 2011-12.
ONE UP: CRISIL Reaffirms 'B-' Ratings on INR157MM Loans
-------------------------------------------------------
CRISIL's rating on the bank facilities of One Up Motors India Pvt
Ltd continues to reflect OMIPL's weak financial risk profile
marked by poor capital structure, and constrained business risk
profile marked by intense competition in the automobile dealership
industry. These rating weaknesses are partially offset by the
leadership position of OMIPL's principal, Maruti Suzuki India Ltd
(MSIL; rated 'CRISIL AAA/Stable/CRISIL A1+') in the automobile
segment.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B-/Stable (Reaffirmed)
Inventory Funding
Facility 90 CRISIL B-/Stable (Reaffirmed)
Standby Line of
Credit 15 CRISIL B-/Stable (Reaffirmed)
Working Capital Term
Loan 12 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that OMIPL will continue to benefit over the
medium term from its association with MSIL, the market leader in
the passenger cars segment. The company's financial risk profile
is, however, expected to remain weak, on account of low accruals
and high gearing. The outlook may be revised to 'Positive' if
OMIPL's financial risk profile improves, due to more-than-expected
ramp-up in scale of operations or equity infusion by promoters.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile deteriorates, because of low cash
accruals, increase in working capital requirements, or large,
debt-funded capital expenditure.
Update
OMIPL's revenues grew 36 per cent year-on-year to INR878 million
in 2012-13 (refers to financial year, April 1 to March 31); this
was mainly driven by increase in number of vehicles sold in 2012-
13 compared with the year earlier, coupled with increase in
revenue from sale of accessories, lubricants and service income.
The company has generated revenues of around INR769 million for
the nine months ended December 31, 2013; CRISIL expects the
company to record revenue of around INR950 million in 2013-14.
OMIPL's operating margins increased by 80 basis points (bps; 100
bps equals one percentage point) to 2.9 per cent in 2012-13 on
account of increase in revenue from sale of accessories,
lubricants and service income which is a higher margin segment.
The company is expected to generate operating margin of around 3
percent over the medium term.
The company's operations are relatively working capital intensive
as reflected in moderately high gross current asset (GCA) of
around 81 days as on March 31, 2013; the GCA days have been at
similar levels in the past. The high GCA days are on account of
high inventory levels of 31 days and receivables cycle of 28 days.
As a result, the company's average bank limit utilisation has been
high at 91 per cent for the nine months ended December 2013.
OMIPL's liquidity is stretched also because of its tightly matched
cash accruals expected at around INR5.1 million in 2013-14 vis-a-
vis term debt repayment obligation of INR4.4 million for the year.
OMIPL's net worth has been small at INR41 million as on March 31,
2013; this limits its financial flexibility to meet any exigency.
The company's high working capital debt, coupled with small net
worth levels has resulted in high total outside liabilities to
tangible net worth (TOLTNW) ratio of 5.22 times as on March 31,
2013. The financial risk profile is also weak on account of low
interest coverage ratio of 1.2 times in 2012-13. Low cash accrual
generated by the company is expected to keep the financial risk
profile weak marked by expected TOLTNW of over 5 times and
interest coverage ratio of 1.2 times over the medium term.
For 2012-13 (refers to financial year, April 1 to March 31), OMIPL
reported a profit after tax (PAT) of INR0.2 million on net sales
of INR843 million, as against a PAT of INR3.9 million on net sales
of INR621 million for 2011-12.
Incorporated in 2006, OMIPL is a dealer of MSIL vehicles. The
company operates with one showroom and two service centre in
Lucknow (Uttar Pradesh).
PONTIAC MERCHANTS: CRISIL Lowers Rating on INR230MM Loans to 'D'
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Pontiac Merchants Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL BB-
/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
Letter of Credit 80 CRISIL D (Downgraded from
'CRISIL A4+')
Proposed Long Term
Bank Loan Facility 100 CRISIL D (Downgraded from
'CRISIL BB-/Stable')
The rating downgrade reflects PMPL's overdrawn cash credit account
for more than 30 consecutive days. The account has been overdrawn
because of the company's weak liquidity stemming from large
operating losses on account of significant decline in timber
prices.
Also, PMPL has a below-average financial risk profile, marked by
weak liquidity, small net worth, and low interest coverage ratio.
Moreover, the company has working-capital-intensive operations.
The company, however, benefits from its promoters' extensive
experience in the timber trading and sawing business.
Incorporated in 1997, PMPL trades in timber, primarily hard wood.
The company's operations are managed by Mr. Purshottam Patel and
his son Mr. Ankit Patel.
PRERNA COTPRESS: CRISIL Reaffirms 'B-' Rating on INR80MM Loans
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Prerna
Cotpress (P) Ltd continues to reflect PCPL's weak financial risk
profile, marked by high gearing, weak debt protection metrics, and
a small net worth. The rating also factors in the company's small
scale, and short track record, of operations, and the
vulnerability of its business risk profile and profitability to
changes in government policy. These rating weaknesses are
partially offset by the benefit that PCPL derives from its
proximity to a cotton-growing region.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 57.5 CRISIL B-/Stable
Proposed Long Term
Bank Loan Facility 21 CRISIL B-/Stable
Term Loan 1.5 CRISIL B-/Stable
Outlook: Stable
CRISIL believes that PCPL will benefit over the medium term from
the successful stabilisation of its operations. The outlook may be
revised to 'Positive' if the company registers higher-than-
expected accruals or if its promoter infuses equity, leading to
significant improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if PCPL's financial risk
profile weakens further, most likely due to larger-than-expected
working capital requirements or any large debt-funded capital
expenditure.
Incorporated in 2006 and promoted by Mr. Rasik Patel, PCPL is
engaged in cotton ginning and pressing in Himmatnagar (Gujarat).
For 2012-13 (refers to financial year, April 1 to March 31), PCPL
incurred a net loss of INR2.7 million on net sales of INR270.1
million, against a net loss of INR2.9 million on net sales of
INR236.0 million for 2011-12.
PRINITI FOODS: CRISIL Assigns 'B+' Ratings to INR114.5MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Priniti Foods Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7 CRISIL B+/Stable
Proposed Long Term
Bank Loan Facility 107.5 CRISIL B+/Stable
The rating reflects PFPL's small scale of operations in intensely
competitive extruded snacks segment, exposure to project
implementation and demand risks and below-average financial risk
profile with likely increase in gearing on account of large debt-
funded capex. These rating weaknesses are partially offset by
PFPL's established distribution network in North India and
moderate working capital requirements.
Outlook: Stable
CRISIL believes that PFPL will continue to benefit over the medium
term from its established distribution network. The outlook may be
revised to 'Positive' if a substantial increase in operating
revenues and margin, significantly improves the financial risk
profile, along with successful implementation and healthy offtake
of the proposed capex programme. Conversely, the outlook may be
revised to 'Negative' if PFPL's revenues and profitability are
less than anticipated, or if its working capital requirements are
higher than expected. The outlook may also be revised to
'Negative' if there are time and cost overruns in its planned
project, or significant pressure on its liquidity.
PFPL was incorporated in 2009 as a private limited company by the
New Delhi-based Mr. Rajesh Garg. Mr. Rajesh Garg is the key
promoter and is actively engaged in managing day-to-day operations
of the company. PFPL manufactures assorted extruded snacks such as
finger snacks, rings, puffs, and more.
For 2012-13 (refers to financial year, April 1 to March 31), PFPL
reported a net profit of INR0.45 million on net sales of INR93.64
million, against a net profit of INR0.20 million on net sales of
INR57.43 million for 2011-12.
R. L. JEWELS: CRISIL Lowers Rating on INR1.20BB Loans to 'D'
------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of R. L.
Jewels Private Limited (RLJ, part of Rajmal Lakhichand group) to
'CRISIL D' from 'CRISIL B-/Stable.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 875 CRISIL D (Downgraded from
'CRISIL B-/Stable')
Proposed Long Term 21.3 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B-/Stable')
Working Capital 303.7 CRISIL D (Downgraded from
Term Loan 'CRISIL B-/Stable')
The rating downgrade reflects RLJ's overdrawn cash credit facility
for more than 30 days; the overdrawls have been caused by the
deterioration in the group's liquidity.
Rajmal Lakhichand group has a weak financial risk profile marked
by its high gearing and weak debt protection metrics. The group is
also exposed to intense competition in the domestic jewellery
segment resulting in low profitability margins. However, the group
benefits from its promoters extensive experience in the jewellery
business.
For arriving at its ratings, CRISIL has consolidated the business
and financial risk profiles of RLJ and other group companies,
namely, Rajmal Lakhichand, Rajmal Lakhichand Jewellers Pvt. Ltd,
Manvi Holdings, Rajmal Lakhichand Gold Pvt. Ltd, RL& Sons, and
Manraj Jewellers Pvt Ltd. This is because all these entities,
together referred to as the Rajmal Lakhichand group, have common
promoters, share common brand, have significant operational
synergies and fungible cash flows.
The Rajmal Lakhichand group is a Jalgaon-based group which has
been in the business of manufacturing and trading in gold
jewellery since 1854. The group is promoted, owned and managed by
the Jain family. The group's manufacturing facilities are located
at Jalgaon in Maharashtra. RLJ, incorporated in 2007, is engaged
in the manufacturing of gold jewellery.
S. R. SHIPPING: CRISIL Reaffirms 'B-' Rating to INR250MM Loans
--------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of S. R. Shipping
Co. continues to reflect SRS's modest scale of operations, and its
weak financial risk profile, marked by a small net worth, high
gearing, below-average debt protection metrics, and weak
liquidity. The rating also factors in the susceptibility of the
firm's dredging activity to regulatory changes. These rating
weaknesses are partially offset by the extensive experience of
SRS's promoter in the shipping and sand-dredging industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B-/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 185.9 CRISIL B-/Stable (Reaffirmed)
Term Loan 44.1 CRISIL B-/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SRS will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' in case of substantial long-
term fund infusion by the firm's promoter, leading to sustained
improvement in its liquidity, or if it reports higher-than-
expected growth in its revenues and cash accruals, while improving
its capital structure. Conversely, the outlook may be revised to
'Negative' in case of a steep decline in SRS's revenue growth or
profitability, or a further stretch in its working capital cycle,
leading to deterioration in its liquidity.
Update:
With revenues of about INR75 million reported for the nine months
ended December 31, 2013, SRS's revenues for 2013-14 (refers to
financial year, April 1 to March 31) are expected to remain
stagnant at around INR100 million due to absence of much dredging
activity over past two years. However, stable income from its
chartering activities will ensure that the firm sustains it
healthy operating margin of around 30 per cent over the medium
term.
SRS's financial risk profile is weak, marked by an aggressive
gearing of 4.5 times, and a modest net worth of INR40 million, as
on March 31, 2013. The firm's expected cash accruals of about
INR20 million in 2013-14 would be sufficient to meet its debt
obligations of about INR13.2 million during the year. Despite
this, SRS's liquidity remains weak because of its working-capital-
intensive operations arising from its high inventory holding
period in the sand-trading business. As a result, the firm's bank
limits have been fully utilised during the six months through
September 2013. CRISIL believes that SRS's liquidity will remain
weak over the medium term owing to its stretched working capital
cycle.
For 2012-13, SRS reported a profit after tax (PAT) of INR0.28
million on net sales of INR97.5 million, as against a PAT of
INR4.8 million on net sales of INR128.1 million for 2011-12.
SRS was established in 2007 as a proprietorship concern by Mr.
Rashad Mujawar. The firm is engaged in sea transportation, barge
chartering, and related activities such as sand dredging and sand
trading. SRS primarily operates in Maharashtra.
S B IMPEX: CRISIL Reaffirms 'B+' Rating on INR112.5MM Loans
-----------------------------------------------------------
CRISIL's rating on the long-term bank facilities of S B Impex
continues to reflect its below-average financial risk profile
marked by its small net-worth, high total outside liabilities to
tangible net worth ratio and average debt protection metrics. The
rating also factors in the firm's large working capital
requirements, and its susceptibility to volatility in the value of
the Indian rupee. These rating weaknesses are partially offset by
the extensive experience of SBIMP's partners in the tobacco
industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B+/Stable (Reaffirmed)
Export Packing
Credit 60 CRISIL A4 (Reaffirmed)
Term Loan 22.5 CRISIL B+/Stable (Reaffirmed)
Warehouse Financing 50 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SBIMP will benefit over the medium term from
its partners' extensive industry experience and its established
relationships with customers. The outlook may be revised to
'Positive' if there is a sustained improvement in the firm's
working capital management, or there is a substantial improvement
in its net-worth on the back of capital additions from its
partners. Conversely, the outlook may be revised to 'Negative' in
case of a there is a steep decline in the firm's profitability
margins, or there is a significant deterioration in its capital
structure on account of larger-than-expected working capital
requirements.
SBIMP was set up as a partnership firm in 2008 in Guntur (Andhra
Pradesh). The firm trades in tobacco and derives around 95 per
cent of its revenues from exports. SBIMP is currently being
managed by Mr. S Ramprasad and his son, Mr. S Hemanth. Mr. S
Ramprasad has nearly four decades of experience in the tobacco
industry.
SATTVA CONWARE: CRISIL Reaffirms 'B' Rating on INR142.5MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Sattva Conware Pvt Ltd
continue to reflect SCPL's nascent stage of operations in the
fragmented container freight station industry and below-average
financial risk profile, marked by weak debt protection metrics.
These rating weaknesses are partially offset by the benefits SCPL
derives from the extensive experience of its promoters in the
logistics business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 12.5 CRISIL A4 (Reaffirmed)
Cash Credit 2.5 CRISIL B/Stable (Reaffirmed)
Term Loan 140 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SCPL will continue to benefit from its
promoters' extensive experience in the logistics business and its
healthy capital structure. The outlook may be revised to
'Positive' if it commences and stabilises its operations earlier
than expected, resulting in higher-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' in case of
slowdown in end-user industries leading to lower-than-expected
cash accruals or if the company undertakes any large debt-funded
capital expenditure, resulting in deterioration in financial risk
profile and liquidity.
Update
For 2012-13 (refers to financial year, April 1 to March 31),
SCPL's operating income was INR18.5 million, which is in line with
CRISIL's expectations. CRISIL believes that SCPL will report
operating income of around INR25 million for 2013-14, which is
lower than CRISIL's expectations. The operating income is lower
than expected primarily on account of delay in commencing
container freight station (CFS) operations due to delays in
getting regulatory approvals. SCPL commenced commercial operations
in January 2014 as against CRISIL's earlier expectations that SCPL
would commence operations in November 2012.
SCPL's liquidity remains weak, marked by low cash accruals and
absence of working capital facilities. However, its liquidity is
supported by timely funding support from the promoters; the
promoters infused equity of around INR12 million during 2012-13.
Set up in November 2008, SCPL operates a CFS catering mainly to
the Chennai port (Tamil Nadu). The day-to-day operations of the
company are managed by its directors Mr. Padmanabhan and Mr.
Narasimhan.
SHIVAM IRON: CRISIL Assigns 'B-' Ratings to INR1.58BB Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of Shivam Iron & Steel Company Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 450.7 CRISIL B-/Stable (Assigned)
Standby Fund-Based
Limits 80 CRISIL B-/Stable (Assigned)
Letter of Credit 513.5 CRISIL A4 (Assigned)
Bank Guarantee 105.8 CRISIL A4 (Assigned)
Cash Credit 1,050 CRISIL B-/Stable (Assigned)
The ratings reflect SISCL's working-capital-intensive operations
and weak financial risk profile, marked by weak debt protection
metrics and stretched liquidity. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the steel industry and its diversified product
portfolio.
Outlook: Stable
CRISIL believes that SISCL will continue to benefit over the
medium term from its promoters' extensive experience in the steel
industry; however, its liquidity is expected to remain weak over
this period on account of large debt obligations and high working
capital requirements. The outlook may be revised to 'Positive' if
the company registers higher-than-expected growth in revenues and
accruals while improving its working capital management, thereby
leading to improvement in its financial risk profile, particularly
its debt protection metrics. Conversely, the outlook may be
revised to 'Negative' in case of deterioration in SISCL's
financial risk profile, particularly its liquidity, most likely
due to larger-than-expected working capital requirements or a
significant decline in its turnover, leading to lower-than-
anticipated accruals.
Incorporated in 1998, SISCL manufactures sponge iron; mild steel
(MS)/stainless steel (SS) ingots and billets; pig iron; hard coke;
MS structural items such as angles, channels, bars, and flats; SS
flats; and ferroalloys (silico alloys and ferromanganese). The
company sells its products under its brand name Siscon. Its sponge
iron unit is based in Koderma and its other manufacturing
facilities are based in Giridh (both in Jharkhand).
SISCL reported a profit after tax (PAT) of INR25.2 million on net
sales of INR2773.6 million for 2012-13 (refers to financial year,
April 1 to March 31), as against a PAT of INR36.7 million on net
sales of INR3004.6 million for 2011-12.
SHRAMAN STRIPS: CRISIL Reaffirms 'B' Rating on INR80MM Loans
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shraman Strips Pvt Ltd
continues to reflect SSPL's weak financial risk profile, marked by
a highly leveraged capital structure and weak debt protection
metrics, small scale of operations, and limited financial
flexibility. Also, ratings reflect susceptibility of its business
risk profile to the type of commodities traded. These rating
weaknesses are partially offset by SSPL's established and
diversified clientele and the extensive experience of its
promoters in the steel industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 60 CRISIL B/Stable (Reaffirmed)
Term Loan 20 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SSPL will continue to benefit over the medium
term from its promoters' extensive industry experience and its
established clientele. The outlook may be revised to 'Positive' if
the company significantly improves its scale of operations and
profitability, along with significant equity infusion, leading to
improvement in capital structure. Conversely, the outlook may be
revised to 'Negative' if there is a more-than-expected increase in
SSPL's working capital requirements, or if the company undertakes
a large debt-funded capital expenditure programme, weakening its
financial risk profile.
Update
SSPL reported an operating income of INR816 million for 2012-13
(refers to financial year, April 1 to March 31) against INR819
million for the previous year. Muted revenue growth has been
because of sluggish demand scenario, which is expected to continue
in the medium term. Although SSPL's operating margin for 2012-13,
at 2.8 per cent, were higher by 30 basis points than the previous
year, the profitability will remain constrained over the medium
term by the low value-added and commodity nature of its products.
SSPL's financial risk profile remains weak, with small net worth,
high total outside liabilities to tangible net worth (TOLTNW)
ratio, and weak debt protection metrics. It had net worth of INR19
million as on March 31, 2013 because of low profitability, leading
to low accretion to reserves. The debt levels have remained high
because of high average bank limit utilisation of 98 per cent
during the 12 months through December 2013. Furthermore, the
working capital limits have been enhanced to INR90 million from
INR60 million in January 2014. Hence, SSPL's TOLTNW ratio, which
was high at 9.6 times as on March 31, 2013, is expected to remain
high. The large debt and low profitability have resulted in weak
debt protection metrics, with interest coverage ratio at 1.6 times
and net cash accruals to total debt ratio at 9 per cent in 2012-
13. SSPL's liquidity remains weak, marked by low cash accruals.
The company is expected to generate cash accruals of around INR8
million in 2012-13, which will be sufficient to meet its debt
obligations of INR3.5 million during the year.
Set up in 1988 in Ludhiana (Punjab) by Mr. Satish Jain and his
brother Mr. Jaineshwar Jain, SSPL trades in all kinds of iron and
steel products. The company procures these products and cuts them
in varying sizes, as per customer specifications.
SHREE SHANKAR: CRISIL Cuts Rating on INR360MM Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Shree Shankar Saw Mill Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
BB/Stable/CRISIL A4+'. The rating downgrade reflects SSSPL's
continuously overdrawn cash credit account by more than 30
consecutive days. The account has been overdrawn because of the
company's weak liquidity, driven by large operating losses due to
a significant decline in timber prices.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 130 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Letter of Credit 210 CRISIL D (Downgraded from
'CRISIL A4+')
Proposed Long Term
Bank Loan Facility 5 CRISIL D (Downgraded from
'CRISIL BB/Stable')
Standby Line of Credit 15 CRISIL D (Downgraded from
'CRISIL BB/Stable')
SSSPL has a below-average financial risk profile, marked by weak
liquidity, a modest net worth and low interest coverage ratio; it
also has working-capital-intensive operations. The company,
however, benefits from its promoters' extensive experience in the
timber trading and sawing business.
SSSMPL was initially set up as a partnership firm, Shankar Saw
Mill, in 1954 and was reconstituted as a private limited company
in 2002. SSSMPL is engaged in timber trading and sawing with a
capacity of 1500 cubic feet per day. The overall operations of the
company are managed by Mr. Purshottam Patel and Mr. Ankit Patel.
SHREERAM POLYPLAST: CRISIL Reaffirms 'B' Rating on INR107MM Loans
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shreeram Polyplast
continue to reflect the firm's small scale of operations; and
below-average financial risk profile, marked by its small net
worth and moderate debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of
SP's promoter in the polyurethane elastomer (PU) segment, and
steady cash flows from lease rentals.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee .5 CRISIL A4 (Reaffirmed)
Cash Credit 14 CRISIL B/Stable (Reaffirmed)
Letter of Credit 2.5 CRISIL A4 (Reaffirmed)
Long Term Loan 68.5 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 22.5 CRISIL B/Stable (Reaffirmed)
Standby Line of Credit 2 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SP will continue to benefit from the
promoter's extensive experience in the PU segment over the medium
term. The outlook may be revised to 'Positive' if the firm
significantly increases its scale of operations, while maintaining
its profitability, thereby improving its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if SP reports
lower-than-expected revenues and profitability or reports larger-
than-expected capital withdrawals by the promoters.
SP, established in 1975, is promoted by Mr. G K Basha. The firm
designs, fabricates, and processes components from PU, and has a
manufacturing unit in Guindy, Chennai (Tamil Nadu). SP's products
are used in various industries such as steel, aluminum, oil field,
automobile, and material handling operations. Mr. G K Basha and
his son, Mr. A N Basha manage the firm's day-to-day operations.
SP reported a profit after tax (PAT) of INR4.25 million on net
sales of INR39.6 million for 2012-13 (refers to financial year,
April 1 to March 31), vis-a-vis a PAT of INR6.34 million on net
sales of INR30.6 million for 2011-12.
SHRI AMBA: CRISIL Assigns 'D' Ratings to INR100 Million Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Shri Amba Rice Pvt Ltd. The ratings reflect the
instances of delay by SARPL in servicing its debt; the delays have
been caused by the company's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 24.2 CRISIL D
Proposed Long Term
Bank Loan Facility 29.9 CRISIL D
Bank Guarantee 12.5 CRISIL D
Cash Credit 33.4 CRISIL D
SARPL also has a small scale of operations in the fragmented rice
milling industry and a weak financial risk profile, marked by high
gearing and small net worth. These rating weaknesses are partially
offset by the benefits that the company derives from its
promoters' extensive business experience in the rice-milling
industry.
Incorporated in 2010, SARPL is engaged in milling of non-basmati
rice. Its manufacturing facility is located at Durg
(Chhattisgarh). SARPL's day-to-day operations are managed by its
director, Mr. Abhishek Sharma.
SHUBHANGI SALES: CRISIL Rates INR50MM Cash Credit at 'B'
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of M/s Shubhangi Sales (SS). The rating reflects
SS's modest scale of operations in a competitive and fragmented
industry, and its average financial risk profile driven by small
cash accruals. These rating weaknesses are partially offset by the
extensive experience of SS's promoters in the steel trading
business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable
Outlook: Stable
CRISIL believes that the SS will continue to benefit from its
promoters' extensive experience in the steel trading business. The
outlook may be revised to 'Positive' if SS significantly increases
its scale of operations while improving its financial risk profile
through increase in cash accruals. Conversely, the outlook may be
revised to 'Negative' if SS's financial risk profile deteriorates,
most likely because of less-than-expected cash accruals or
significant stretch in working capital cycle.
SS, a partnership entity, was established in 2012-13 (refers to
financial year, April 1 to March 31) by Mr. Sudhir Gupta in Nagpur
(Maharashtra). The firm commenced operations in March 2013. It
trades in various steel products.
SONALI EXTRUSIONS: CRISIL Reaffirms 'B' Rating on INR97MM Loans
---------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Sonali Extrusions
Pvt Ltd (SEPL) reflect SEPL's weak financial risk profile, marked
by high gearing and weak debt protection metrics, modest scale of
operations, and exposure to intense competition in the aluminium
extrusion business. These rating weaknesses are partially offset
by the extensive experience of the company's promoters in the
aluminium industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B/Stable (Reaffirmed)
Letter of Credit 18 CRISIL A4 (Reaffirmed)
Long Term Loan 47 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that SEPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company's revenues and
profitability increase substantially, leading to an improvement in
its financial risk profile. Conversely, the outlook may be revised
to 'Negative' if SEPL undertakes larger-than-expected debt-funded
expansions, or if its revenues and profitability decline
substantially, leading to deterioration in its financial risk
profile.
SEPL, which commenced commercial operations in July 2011,
manufactures aluminium sheets and profiles. The company is
promoted by Mr. Vinod Babulal Mandot and his family.
SOUBHIK EXPORTS: CRISIL Reaffirms B Rating on INR377.5MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Soubhik Exports Ltd
continues to reflect SEL's weak financial profile, coupled with
geographical and customer concentration in its revenue profile,
and exposure to risks related to the commodity nature of the
product. These weaknesses are partially offset by the benefits
that SEL derives from its promoters' extensive experience in the
trading business.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 22.5 CRISIL A4 (Reaffirmed)
Overdraft Facility 150 CRISIL B/Stable (Reaffirmed)
Post Shipment Credit 400 CRISIL A4 (Reaffirmed)
Pre Shipment Credit 150 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 77.5 CRISIL B/Stable (Reaffirmed)
To arrive at the rating, CRISIL has treated interest-free
unsecured loans of INR250 million provided to SEL by its group
entities as neither debt nor equity. CRISIL's approach has been
based on an undertaking provided by the SEL management that these
funds will not be withdrawn from the business in the next three
years.
Outlook: Stable
CRISIL believes that SEL will continue to benefit from its
promoters' extensive experience in the trading business. The
outlook may be revised to 'Positive' if the company's cash
accruals increase significantly. Conversely, the outlook may be
revised to 'Negative' in case of deterioration in SEL's financial
risk profile, particularly its liquidity, on account of lower-
than-expected cash accruals, stretch in working capital
requirements, or any significant support extended by SEL to its
group companies.
SEL is a government-recognised three-star export house that
exports predominantly to Bangladesh. The company deals mostly in
commodities such as cotton, wheat, sugar, machinery etc. Trading
in raw cotton contributes the bulk of SEL's revenue. SEL also
trades in non-agri commodities.
SRI LAXMI: CRISIL Reaffirms 'B+' Rating on INR97.5MM Loans
----------------------------------------------------------
CRISIL has assigned its rating on the short term bank facilities
of Sri Laxmi Enterprises at 'CRISIL A4'; while reaffirming the
long-term rating at 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 90 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 50 CRISIL A4 (Assigned)
Term Loan 7.5 CRISIL B+/Stable (Reaffirmed)
CRISIL's rating on the bank facilities of SLE continues to reflect
SLE's below-average financial risk profile marked by its small net
worth, high gearing and weak debt protection metrics. The ratings
also factor in the susceptibility of the firm's profitability
margins to volatility in cotton prices, and its exposure to risks
related to government regulations. These rating weaknesses are
partially offset by the extensive industry experience of the
firm's promoters, and its established regional presence, in the
cotton ginning industry.
Outlook: Stable
CRISIL believes that SLE will continue to benefit over the medium
term from its promoters' extensive experience in the cotton
ginning business and its established relations with customers. The
outlook may be revised to 'Positive' if there is substantial and
sustained improvement in the firm's revenues and profitability
margins from the current levels or there is substantial
improvement in its capital structure on the back of equity
infusion from promoters. Conversely, the outlook may be revised to
'Negative' if there is a steep decline in the firm's profitability
margins or there is a significant deterioration in its capital
structure on account of larger-than-expected working capital
requirements.
SLE, established as a partnership firm in 2004 and promoted by Mr.
Om Prakash Agarwal and his family, is in the cotton ginning
business. The firm's ginning unit is in Bhainsa (Andhra Pradesh).
SUSHILA INT'L: CRISIL Reaffirms 'B' Rating on INR135MM Loans
------------------------------------------------------------
CRISIL's ratings on bank facilities of Sushila International (SI;
part of the Sushtitex group) continue to reflect the Sushtitex
group's below-average financial risk profile, marked by a modest
net worth, high gearing, and moderate debt protection metrics. The
ratings also factor in the group's modest scale of operations in
the highly fragmented textile industry, and the working capital
intensity of its operations. These rating weaknesses are partially
offset by the extensive experience of the group's promoters in the
textile industry and its established relationships with customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 20 CRISIL B/Stable (Reaffirmed)
Overdraft Facility 35 CRISIL A4 (Reaffirmed)
Packing Credit 130 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 68.6 CRISIL B/Stable (Reaffirmed)
Term Loan 46.4 CRISIL B/Stable (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SI and Sushitex Industries Pvt Ltd
(SIPL), together referred to as the Sushitex group. This is
because of significant operational and financial linkages between
the two entities.
Furthermore, CRISIL has treated unsecured loans of INR69.8 million
on the companies' books as on March 31, 2013, extended by the
promoters as neither debt nor equity, as these loans are likely to
remain in the business over medium term and the interest rate on
them is lower than that on the bank facilities.
Outlook: Stable
CRISIL believes that the Sushitex group will continue to benefit
over the medium term from the extensive experience of its
promoters in the textile industry. The outlook may be revised to
'Positive' if there is a substantial and sustained improvement in
the group's revenues and profitability, while it improves its
working capital cycle and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if the Sushitex group's
financial risk profile, particularly its liquidity, deteriorates,
most likely due to decline in its revenues or profitability, or
higher-than-expected capital expenditure, or a stretch in its
operating cycle.
Update
The Sushitex group's operating revenues improved to around INR710
million in 2012-13 (refers to financial year, April 1 to
March 31) from around INR629 million in 2011-12, registering a
healthy growth of around 13 per cent. The growth was due to better
capacity utilisation and healthy order flow from customers. The
group's operating margin, however, declined to 16.21 per cent in
2012-13 from 17.28 per cent in 2011-12.
The Sushitex group's operations remain working-capital-intensive,
as reflected in its gross current assets of around 234 days as on
March 31, 2013. The group has to maintain sizeable stock of raw
material and finished goods, which has resulted in a high
inventory level of 158 days as on March 31, 2013. The payables
have remained at 74 days as on March 31, 2013, as against 69 days
as on March 31, 2012. The debtors have increased to 76 days from
42 days over this period. On account of its working capital
requirements, the average utilisation of the Sushitex group's bank
limits has been high, at around 97 per cent for the 12 months
through October 2013.
The Sushitex group's financial risk profile remained below
average, marked by a high gearing of 2.76 times as on March 31,
2013. The group's debt protection metrics have remained moderate,
with interest coverage and net cash accruals to total debt ratios
at 1.86 times and 8 per cent, respectively, in 2012-13. The group
also had a small net worth of around INR184 million as on
March 31, 2013. Sushitex
For 2012-13, the Sushitex group reported a profit after tax (PAT)
of INR22.9 million on an operating income of INR710 million,
against a PAT of INR23.1 million on net sales of INR628.9 million
for 2011-12.
SI, established in 1980, is a partnership firm engaged in
manufacturing fabrics used for shirting. SIPL, incorporated in
2011, undertakes similar activities. The Sushitex group's
manufacturing facilities are at Tarapur (Maharashtra). Its day-to-
day operations are managed by Mr. Harish Arya along with his
family members.
SUSHITEX INDUSTRIES: CRISIL Reaffirms B Rating on INR313.5M Loans
-----------------------------------------------------------------
CRISIL's ratings on bank facilities of Sushitex Industries Private
Limited (SIPL; part of the Sushitex group) continue to reflect the
Sushitex group's below-average financial risk profile, marked by a
modest net worth, high gearing, and moderate debt protection
metrics. The ratings also factor in the group's modest scale of
operations in the highly fragmented textile industry, and the
working capital intensity of its operations. These rating
weaknesses are partially offset by the extensive experience of the
group's promoters in the textile industry and its established
relationships with customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 6.5 CRISIL A4 (Reaffirmed)
Cash Credit 60 CRISIL B/Stable (Reaffirmed)
Overdraft Facility 20 CRISIL A4 (Reaffirmed)
Term Loan 253.5 CRISIL B/Stable (Reaffirmed)
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of SIPL and Sushila International (SI),
together referred to as the Sushitex group. This is because of
significant operational and financial linkages between the two
entities.
Furthermore, CRISIL has treated unsecured loans of INR69.8 million
on the companies' books as on March 31, 2013, extended by the
promoters as neither debt nor equity, as these loans are likely to
remain in the business over medium term and the interest rate on
them is lower than that on the bank facilities.
Outlook: Stable
CRISIL believes that the Sushitex group will continue to benefit
over the medium term from the extensive experience of its
promoters in the textile industry. The outlook may be revised to
'Positive' if there is a substantial and sustained improvement in
the group's revenues and profitability, while it improves its
working capital cycle and debt protection metrics. Conversely, the
outlook may be revised to 'Negative' if the Sushitex group's
financial risk profile, particularly its liquidity, deteriorates,
most likely due to decline in its revenues or profitability, or
higher-than-expected capital expenditure, or a stretch in its
operating cycle.
Update
The Sushitex group's operating revenues improved to around INR710
million in 2012-13 (refers to financial year, April 1 to
March 31) from around INR629 million in 2011-12, registering a
healthy growth of around 13 per cent. The growth was due to better
capacity utilisation and healthy order flow from customers. The
group's operating margin, however, declined to 16.21 per cent in
2012-13 from 17.28 per cent in 2011-12.
The Sushitex group's operations remain working-capital-intensive,
as reflected in its gross current assets of around 234 days as on
March 31, 2013. The group has to maintain sizeable stock of raw
material and finished goods, which has resulted in a high
inventory level of 158 days as on March 31, 2013. The payables
have remained at 74 days as on March 31, 2013, as against 69 days
as on March 31, 2012. The debtors have increased to 76 days from
42 days over this period. On account of its working capital
requirements, the average utilisation of the Sushitex group's bank
limits has been high, at around 97 per cent for the 12 months
through October 2013.
The Sushitex group's financial risk profile remained below
average, marked by a high gearing of 2.76 times as on March 31,
2013. The group's debt protection metrics have remained moderate,
with interest coverage and net cash accruals to total debt ratios
at 1.86 times and 8 per cent, respectively, in 2012-13. The group
also had a small net worth of around INR184 million as on
March 31, 2013. Sushitex
For 2012-13, the Sushitex group reported a profit after tax (PAT)
of INR22.9 million on an operating income of INR710 million,
against a PAT of INR23.1 million on net sales of INR628.9 million
for 2011-12.
SI, established in 1980, is a partnership firm engaged in
manufacturing fabrics used for shirting. SIPL, incorporated in
2011, undertakes similar activities. The Sushitex group's
manufacturing facilities are at Tarapur (Maharashtra). Its day-to-
day operations are managed by Mr. Harish Arya along with his
family members.
TAPAN MOTORS: CRISIL Assigns 'B' Ratings to INR141.9MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Tapan Motors.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 40 CRISIL B/Stable
Proposed Long Term
Bank Loan Facility 29.3 CRISIL B/Stable
Cash Credit 52.6 CRISIL B/Stable
Inventory Funding
Facility 20 CRISIL B/Stable
The rating reflects Tapan Motors' stretched financial flexibility
marked by large term debt repayments, and susceptibility to risks
relating to intense competition in the automobile (auto)
dealership market. These rating weaknesses are partially offset by
the benefits that Tapan Motors derives from its association with
Hyundai Motor India Ltd (HMIL, rated 'CRISIL A1+') and Ashok
Leyland Nissan Vehicles Pvt Ltd (ALNV), and moderate capital
structure.
Outlook: Stable
CRISIL believes that Tapan Motors will continue to benefit over
the medium term from its association with HMIL and ALNV. CRISIL
also believes that Tapan Motors will receive funding support from
its partners to meet its debt obligations in timely manner. The
outlook may be revised to 'Positive' in case the firm generates
significantly higher-than-expected cash accruals leading to
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case Tapan Motors generates lower-
than-expected cash accruals or if it undertakes a larger-than-
expected, debt-funded capital expenditure programme.
Tapan Motors, a partnership firm, was established in 2007 by Mr.
Tapan Goyal. It is an authorized dealer for HMIL and ALNV. It
operates owned showrooms in Solan, Baddi and Poanta Sahib (all in
Himachal Pradesh).
For 2012-13 (refers to financial year, April 1 to March 31), Tapan
Motors reported a book loss of INR1.8 million on net sales of
INR298.3 million, as against a book profit of INR11.7 million on
net sales of INR573.6 million for 2011-12.
UNIVERSAL AIR: CRISIL Assigns 'D' Ratings to INR190MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Universal Air Products Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 35 CRISIL D
Term Loan 155 CRISIL D
The rating reflects instances of delays by the company in
servicing its term debt obligations; the delays have been caused
by UAPPL's weak liquidity. The company's liquidity is stretched
primarily on account of a buildup in its receivables.
UAPPL's rating also factors the firm's modest scale of operations
and below-average financial risk profile marked by modest net
worth, high gearing and subdued debt protection metrics. These
rating weaknesses are partially offset by the benefits that UAPPL
derives from its promoters' extensive industry experience.
UAPPL, incorporated in 2004 by Mr. Subasish G. Roy, is engaged in
bottling of industrial gases like oxygen, nitrogen, carbon dioxide
etc. UAPPL has bottling units at Peenya, Mysore, Jigani, and
Oskote in Karnataka. The company has its registered office at
Bangalore (Karnataka).
UAPPL reported a profit after tax (PAT) of INR35.3 million on net
sales of INR263.9 million for 2012-13, as against a net loss of
INR1.3 million on net sales of INR261.3 million for 2011-12.
VALSON POLYESTER: CRISIL Reaffirms 'B+' Rating on INR565MM Loans
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Valson Polyester Ltd
continue to reflect Valson's average financial risk profile marked
by its moderate net-worth, high gearing and average debt
protection metrics. The ratings also factor in the company's
working-capital-intensive nature of operations, its limited
pricing flexibility and susceptibility of its profitability
margins to volatility in raw material prices. These rating
weaknesses are partially offset by Valson's established presence
in the textile industry supported by its promoter's extensive
experience and long-standing relationships with customers.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 15 CRISIL A4 (Reaffirmed)
Cash Credit 300 CRISIL B+/Stable (Reaffirmed)
Corporate Loan 39 CRISIL B+/Stable (Reaffirmed)
Letter of Credit 110 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 100 CRISIL B+/Stable (Reaffirmed)
Purchase Bill
Discounting 90 CRISIL A4 (Reaffirmed)
Rupee Term Loan 126 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Valson will maintain its established presence
in the textile industry over the medium term, supported by its
promoters' extensive industry experience and its established
relationships with customers. The outlook may be revised to
'Positive' if there is substantial improvement in the company's
capital structure on the back of equity infusion from its
promoters, or there is a sustained improvement in its working
capital management. Conversely, the outlook may be revised to
'Negative' if Valson registers a steep decline in its
profitability margins, or if there is significant deterioration in
its capital structure on account of larger-than-expected working
capital requirements or large debt-funded capital expenditure.
Valson, incorporated in 1985, primarily manufactures and dyes
polyester, nylon, and cotton yarn. It also has small knitting and
weaving capacities. Valson has manufacturing facilities at Vapi
(Gujarat), Silvassa (Union Territory of Dadra and Nagar Haveli),
and Daman (Union Territory of Daman and Diu). The company is
managed by Mr. Shamlal Mehta and his sons, Mr. Vipin Mehta and Mr.
Amit Mehta.
WELLDONE INFRASTRUCTURE: CRISIL Rates INR450MM Loan at 'B+'
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Welldone Infrastructure Pvt Ltd. The rating
reflects risk related to the funding and implementation of WIPL's
on-going project. These rating weaknesses are partially offset by
the benefits that WIPL derives from its promoters' extensive
experience in the construction and development industry and low
demand risk for the project.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 450 CRISIL B+/Stable (Assigned)
Outlook: Stable
CRISIL believes that WIPL will benefit from the extensive industry
experience of its promoters and low demand risk for the project.
The outlook may be revised to 'Positive' in case the company
completes construction of the project in a timely manner and
starts receiving the lease rentals to service its term debt with
comfortable debt service coverage ratio (DSCR). Conversely, the
outlook may be revised to 'Negative' in case of any delay in
implementation of the project or if DSCR remains under pressure
post future rent securitisation.
WIPL was formed in 2005 as a special-purpose vehicle of Halwasiya
Developments Private Limited for setting up a retail-cum-multiplex
project, Lucknow Central, in Gomti Nagar, Lucknow (Uttar Pradesh).
=========
J A P A N
=========
ARYSTA LIFESCIENCE: S&P Affirms 'B' LT Corporate Credit Rating
--------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit ratings on Arysta LifeScience Corp. (ALS Japan)
and U.S.-based subsidiary Arysta LifeScience SPC, LLC and have
affirmed all S&P's existing ratings on debt that Arysta
LifeScience SPC, LLC has issued. At the same time, S&P assigned
its 'B' long-term debt rating to Arysta LifeScience SPC, LLC's
proposed first lien incremental loan, due to mature in 2020. S&P
affirmed the ratings because Arysta group's operating performance
and financial standing are in line with S&P's expectations. As a
result of Arysta group's recent reorganization of its corporate
structure, S&P has applied its criteria, and S&P assess ALS Japan
and Arysta LifeScience SPC, LLC to be core entities of the group.
The outlook on the long-term corporate credit ratings remains
stable.
"We assess Arysta group's business risk profile as "fair," basing
this assessment on its status as one of the world's 10 largest
makers of crop protection products. It has strengths in
registration and formulation, which somewhat temper volatility in
its earnings, and it has industry-average profitability. Negative
factors are its niche focus, concentration of its business in the
cyclical agrochemical industry, and its small size and small
product portfolio relative to top global peers. Arysta focuses on
growing markets such as Latin America. Despite weak currencies in
emerging markets, Arysta successfully transferred rising costs to
product prices and maintained its industry-average profitability.
We believe strong business for certain crops in Latin America will
likely drive earnings in the next one to two years. Arysta is
largely exposed to commoditized, price-sensitive generic products.
However, value-added proprietary products (both patent and off-
patent) generate higher margins, raising profitability to average
for the industry, in our view," S&P said.
"We assess the group's financial risk profile as "highly
leveraged," reflecting very high reliance on debt despite a low
capital intensive business model and a likelihood that the group
will generate sufficient free operating cash flow to cover annual
debt repayments. The proposed first lien incremental loan is for
general corporate purposes, and after the issuance we expect the
core debt-to-EBITDA ratio for the group to exceed 6x from its
current level at the lower end of the 5x range. After that, we
expect the ratio to improve gradually, backed by relatively stable
EBITDA and Arysta's low capital-intensive business model," S&P
added.
The combination of a "fair" business risk profile and "highly
leveraged" financial risk profile produce a 'b' anchor. All
modifiers have neutral impact on the anchor. S&P's assessment of
Arysta as 100%-owned by a financial sponsor leads it to apply an
"FS-6" assessment of its financial policy, which sets an entity's
financial risk profile at "highly leveraged." However, S&P had
already assessed Arysta's financial risk profile to be "highly
leveraged," so the "FS-6" assessment is neutral for the anchor.
S&P assumes the following in our base-case scenario for the next
three years:
-- Revenue growth of 1% to 4%
-- No change in gross margin
-- Positive free operating cash flow due to marginal capital
Expenditure
S&P, based on the above assumptions, assumes the following key
metrics for Arysta:
-- An EBITDA margin of 16% to 18%
-- A debt-to-EBITDA ratio of above 6x in fiscal 2014 (ending
Dec. 31, 2014) and gradually improving in succeeding fiscal
Years
Standard & Poor's views Arysta's liquidity as "adequate," as
defined in its criteria. Since refinancing in 2013, the group has
very limited scheduled annual debt repayments compared with annual
free operating cash flow. S&P expects the ratio of Arysta's
liquidity sources to uses to far exceed 1.2x in the next 12
months, meeting S&P's requirement for "adequate" liquidity. Major
sources of liquidity will include about JPY24 billion in cash and
equivalents and JPY15 billion in funds from operations. In S&P's
assessment, uses of liquidity include about JPY3 billion in
capital spending and working capital outflow.
Arysta group recently reorganized its corporate structure, and
Arysta LifeScience Ltd. (ALS Ltd.), located in Ireland, now heads
up consolidation and functions as the group's headquarters. Along
with the reorganization, S&P applies its criteria to assess
Arysta's group credit profile (GCP). Firstly, S&P assess the GCP
as 'b', equivalent to its assessment of ALS Japan's
creditworthiness prior to its restructuring. Besides assigning
the headquarters function to ALS Ltd. S&P sees no material change
in the group's scope of consolidation and operation. As a result,
S&P treats ALS Japan as a core entity under the new organization
structure. S&P views ALS Japan as fully integrated into the
Arysta group, as a result of its status as the foundation company
of the group and an important operating company, and its function
managing and overseeing group finances. S&P also views Arysta
LifeScience SPC, LLC as a core entity. Because Arysta LifeScience
SPC, LLC, ultimately a wholly owned financial subsidiary of ALS
Ltd., issues debt on behalf of the group, S&P treats Arysta
LifeScience SPC LLC as core.
The outlook on S&P's ratings on ALS Japan and Arysta LifeScience
SPC LLC is stable. Despite the cyclical nature of the crop
protection industry, S&P believes strengths in registration and
formulation that Arysta uses to keep its product portfolio
relatively fresh are likely to underpin its average profitability
relative to industry peers. Because a financial sponsor controls
Arysta, S&P do not expect the group's financial standing to
improve in the next 12 months, despite gradual improvement in
earnings and profit.
If S&P believes consolidated financial metrics for Arysta will
improve significantly, it may consider upgrading the group
companies. For instance, if S&P was to believe the ratio of
Arysta's consolidated debt to EBITDA would fall to below 5x on a
sustainable basis and Arysta's financial policy had become more
conservative, altering Arysta's financial risk profile to
"aggressive," S&P would raise the ratings.
On the other hand, S&P would likely lower its ratings on the group
companies if it were to face more severe competition and an
erosion of the strength of its niche business and its
profitability. The financial risk profile is already "highly
leveraged." If S&P's view of the group's financial policy changes
significantly to be more aggressive, it may consider lowering the
ratings.
GK ORSO: Fitch Withdraws 'Dsf' Rating on JPY10.1BB Notes
--------------------------------------------------------
Fitch Ratings has downgraded G.K. Orso Funding CMBS 7's class D
and E notes and affirmed the class F notes. Fitch has
simultaneously withdrawn the ratings due to lack of investor
interest. All the notes are due in May 2014. The transaction is
a Japanese multi-borrower type CMBS securitisation. The rating
actions are as follows:
JPY4.4 billion* Class D notes downgraded to 'Dsf' from 'CCsf';
rating withdrawn
JPY5.5 billion* Class E notes downgraded to 'Dsf' from 'Csf';
rating withdrawn
JPY0.2 billion* Class F notes affirmed at 'Dsf'; rating withdrawn
* as of February 17, 2014
Key Rating Drivers
The downgrade of the class D and E notes follows the principal
loss on the two remaining defaulted loans that back the
transaction. Five properties backing these loans have been sold
since the previous rating action in April 2013 and the proceeds
were sufficient to redeem the class B and C notes in full. The
servicer then determined the unrecoverable loan principal and each
borrower is currently in the liquidation process. The class D to
F notes will be fully or partially written down after completion
of the borrowers' liquidation, given the loss amount already
realized at the underlying loan level.
Fitch will no longer calculate the Recovery Estimate for this
transaction following the withdrawal of the ratings.
At closing the transaction was a securitisation of four non-
recourse loans and two Tokutei Mokuteki Kaisha specified bonds,
which were ultimately backed by 42 real estate properties.
Fitch will no longer provide ratings or analytical coverage for
this transaction.
====================
N E W Z E A L A N D
====================
NEW ZEALAND ASSOCIATION: S&P Withdraws BB+ Issuer Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services said that its 'BB+/B' issuer
credit ratings on New Zealand Association of Credit Unions has
been withdrawn at the request of the issuer.
At the time of the withdrawal, the long-term rating was on
negative outlook, reflecting S&P's view that economic risks facing
all banks and credit unions operating in New Zealand could worsen,
which could weaken their respective credit profiles.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$MM) (US$MM)
------- ------ ------ ------------
AUSTRALIA
AAT CORP LTD AAT 32.50 -13.46
ANITTEL GROUP LT AYG 18.43 -0.26
ATLANTIC LTD ATI 490.17 -25.68
AUSTRALIAN ZI-PP AZCCA 77.75 -2.57
AUSTRALIAN ZIRC AZC 77.75 -2.57
BIRON APPAREL LT BIC 19.71 -2.22
BOUNTY MINING LT BNT 10.54 -0.94
CLARITY OSS LTD CYO 33.12 -11.66
CMA CORP LTD CMV 127.41 -51.00
CWH RESOURCES LT CWH 10.71 -3.03
IDM INTERNATIONA IDM 30.99 -23.62
LIONHUB GROUP LT LHB 19.21 -26.52
MIRABELA NICKEL MBN 335.09 -179.03
NATURAL FUEL LTD NFL 19.38 -121.51
PACT GROUP HOLDI PGH 1,120.30 -982.11
PENRICE SODA HOL PSH 122.46 -26.85
RIVERCITY MOTORW RCY 386.88 -809.13
RUBICOR GROUP LT RUB 45.20 -75.31
STERLING PLANTAT SBI 59.08 -6.07
STIRLING RESOURC SRE 16.53 -8.12
STRAITS RESOURCE SRQ 208.51 -29.73
SWAN GOLD MINING SWA 36.43 -9.08
TZ LTD TZL 12.88 -8.73
CHINA
ANHUI GUOTONG-A 600444 79.12 -10.53
CHANG JIANG-A 520 770.91 -176.56
CHINA GREAT LAND CGL 16.52 -19.01
CHINA OILFIELD T COT 22.00 -16.71
FORGAME HOLDINGS 484 83.73 -21.92
HEBEI BAOSHUO -A 600155 114.00 -104.15
HULUDAO ZINC-A 751 507.79 -532.25
HUNAN TIANYI-A 908 59.37 -1.14
JIANGSU ZHONGDA 600074 338.59 -29.88
NANNING CHEMIC-A 600301 391.41 -43.60
QINGDAO YELLOW 600579 122.36 -71.04
QINGHAI SUNSHI-A 600381 394.70 -78.28
SHENZ CHINA BI-A 17 28.50 -283.65
SHENZ CHINA BI-B 200017 28.50 -283.65
SHIJIAZHUANG D-A 958 241.31 -111.50
SHUNFENG PHOTOVO 1165 411.73 -51.06
TAIYUAN TIANLO-A 600234 63.28 -17.71
WUHAN BOILER-B 200770 217.13 -213.03
WUHAN XIANGLON-A 600769 77.45 -103.43
YUNNAN JINGGU FO 600265 84.92 -2.90
HONG KONG
BIRMINGHAM INTER 2309 59.95 -12.80
BUILDMORE INTL 108 17.36 -70.34
CHINA ENVIRONMEN 986 66.65 -0.87
CHINA HEALTHCARE 673 34.76 -0.75
CHINA OCEAN SHIP 651 248.21 -106.72
CNC HOLDINGS 8356 99.16 -9.03
CROSBY CAPITAL 8088 16.40 -20.27
EFORCE HLDGS LTD 943 60.73 -9.56
GRANDE HLDG 186 255.10 -208.18
INNO-TECH HLDGS 8202 84.54 -116.82
LANGHAM -SS 1270 684.55 -86.21
LONG SUCCESS INT 8017 50.05 -7.44
MASCOTTE HLDGS 136 57.51 -81.70
MEGA EXPO HOLDIN 1360 17.00 -0.53
MELCOLOT LTD 8198 13.69 -28.83
NORSTAR FOUNDERS 2339 21.97 -56.33
PALADIN LTD 495 159.65 -9.17
PROVIEW INTL HLD 334 314.87 -294.85
SINO RESOURCES G 223 29.34 -24.77
SURFACE MOUNT SMT 32.88 -10.68
VXL CAPITAL LTD 727 74.79 -0.16
INDONESIA
APAC CITRA CENT MYTX 176.66 -6.99
ARPENI PRATAMA APOL 249.84 -319.77
ASIA PACIFIC POLY 375.58 -815.83
BUMI RESOURCES BUMI 7,027.47 -18.17
ICTSI JASA PRIMA KARW 56.41 -6.12
JAKARTA KYOEI ST JKSW 24.92 -34.90
MATAHARI DEPT LPPF 209.66 -89.74
ONIX CAPITAL TBK OCAP 13.22 -1.03
RENUKA COALINDO SQMI 15.84 -0.48
SUMALINDO LESTAR SULI 95.14 -18.99
UNITEX TBK UNTX 18.83 -18.53
INDIA
ABHISHEK CORPORA ABSC 53.66 -25.51
AGRO DUTCH INDUS ADF 85.09 -22.81
ALPS INDUS LTD ALPI 201.29 -41.70
AMIT SPINNING AMSP 12.85 -7.68
ARTSON ENGR ART 11.81 -10.16
ASHAPURA MINECHE ASMN 161.89 -51.58
ASHIMA LTD ASHM 63.23 -48.94
ATV PROJECTS ATV 48.47 -43.93
BELLARY STEELS BSAL 451.68 -108.50
BENZO PETRO INTL BPI 26.77 -1.05
BHAGHEERATHA ENG BGEL 22.65 -28.20
BLUE BIRD INDIA BIRD 122.02 -59.13
CELEBRITY FASHIO CFLI 24.96 -8.26
CHESLIND TEXTILE CTX 20.51 -0.03
CLASSIC DIAMONDS CLD 66.26 -6.84
COMPUTERSKILL CPS 14.90 -7.56
DCM FINANCIAL SE DCMFS 18.46 -9.46
DFL INFRASTRUCTU DLFI 42.74 -6.49
DIGJAM LTD DGJM 99.41 -22.59
DISH TV INDIA DITV 579.01 -28.55
DISH TV INDI-SLB DITV/S 579.01 -28.55
DUNCANS INDUS DAI 122.76 -227.05
ENSO SECUTRACK ENSO 15.57 -0.46
EURO CERAMICS EUCL 110.62 -6.83
EURO MULTIVISION EURO 36.94 -9.95
FERT & CHEM TRAV FCT 311.92 -35.19
GANESH BENZOPLST GBP 44.05 -15.48
GANGOTRI TEXTILE GNTX 54.67 -14.22
GOKAK TEXTILES L GTEX 46.36 -0.29
GOLDEN TOBACCO GTO 97.40 -18.24
GSL INDIA LTD GSL 29.86 -42.42
GSL NOVA PETROCH GSLN 16.53 -1.31
GUJARAT STATE FI GSF 10.26 -303.64
GUPTA SYNTHETICS GUSYN 44.18 -6.34
HARYANA STEEL HYSA 10.83 -5.91
HEALTHFORE TECHN HTEC 14.74 -46.64
HINDUSTAN ORGAN HOC 74.72 -24.07
HINDUSTAN PHOTO HPHT 49.58 -1,832.65
HMT LTD HMT 108.71 -572.12
ICDS ICDS 13.30 -6.17
INDAGE RESTAURAN IRL 15.11 -2.35
INTEGRAT FINANCE IFC 49.83 -51.32
JCT ELECTRONICS JCTE 80.08 -76.70
JENSON & NIC LTD JN 16.49 -71.70
JET AIRWAYS IND JETIN 3,368.77 -335.45
JET AIRWAYS -SLB JETIN/S 3,368.77 -335.45
JOG ENGINEERING VMJ 45.90 -5.28
KALYANPUR CEMENT KCEM 23.39 -42.66
KERALA AYURVEDA KERL 13.97 -1.69
KIDUJA INDIA KDJ 11.16 -3.43
KINGFISHER AIR KAIR 515.93 -2,371.26
KINGFISHER A-SLB KAIR/S 515.93 -2,371.26
KITPLY INDS LTD KIT 14.77 -58.78
KLG SYSTEL LTD KLGS 40.64 -27.37
LML LTD LML 43.95 -78.18
MADRAS FERTILIZE MDF 167.72 -56.20
MAHA RASHTRA APE MHAC 14.49 -12.96
MAHANAGAR TELE MTNL 4,845.41 -511.72
MAHANAGAR TE-SLB MTNL/S 4,845.41 -511.72
MALWA COTTON MCSM 44.14 -24.79
MILTON PLASTICS MILT 17.67 -51.22
MODERN DAIRIES MRD 38.61 -3.81
MOSER BAER INDIA MBI 727.13 -165.63
MOSER BAER -SLB MBI/S 727.13 -165.63
MTZ POLYFILMS LT TBE 31.94 -2.57
MURLI INDUSTRIES MRLI 262.39 -38.30
MYSORE PAPER MSPM 87.99 -8.12
NATL STAND INDI NTSD 22.09 -0.73
NAVCOM INDUS LTD NOP 10.19 -3.53
NICCO CORP LTD NICC 71.84 -4.91
NICCO UCO ALLIAN NICU 23.25 -83.90
NK INDUS LTD NKI 141.35 -7.71
NRC LTD NTRY 63.70 -53.01
NUCHEM LTD NUC 24.72 -1.60
PANCHMAHAL STEEL PMS 51.02 -0.33
PARAMOUNT COMM PRMC 124.96 -0.52
PARASRAMPUR SYN PPS 99.06 -307.14
PAREKH PLATINUM PKPL 61.08 -88.85
PIONEER DISTILLE PND 53.74 -5.62
PREMIER INDS LTD PRMI 11.61 -6.09
PRIYADARSHINI SP PYSM 20.80 -2.28
QUADRANT TELEVEN QDTV 150.43 -137.48
QUINTEGRA SOLUTI QSL 16.76 -17.45
RAMSARUP INDUSTR RAMI 433.89 -89.28
RATHI ISPAT LTD RTIS 44.56 -3.93
RELIANCE BROADCA RBN 86.97 -0.59
RELIANCE MEDIAWO RMW 425.22 -21.31
RELIANCE MED-SLB RMW/S 425.22 -21.31
RENOWNED AUTO PR RAP 14.12 -1.25
RMG ALLOY STEEL RMG 66.61 -12.99
ROLLATAINERS LTD RLT 22.97 -22.24
ROYAL CUSHION RCVP 14.70 -75.18
SAAG RR INFRA LT SAAG 12.54 -4.93
SADHANA NITRO SNC 16.74 -0.58
SANATHNAGAR ENTE SNEL 49.23 -6.78
SANCIA GLOBAL IN SGIL 78.82 -25.13
SBEC SUGAR LTD SBECS 92.44 -5.61
SCOOTERS INDIA SCTR 19.75 -13.35
SERVALAK PAP LTD SLPL 61.57 -7.63
SHAH ALLOYS LTD SA 168.13 -81.60
SHALIMAR WIRES SWRI 22.79 -27.18
SHAMKEN COTSYN SHC 23.13 -6.17
SHAMKEN MULTIFAB SHM 60.55 -13.26
SHAMKEN SPINNERS SSP 42.18 -16.76
SHREE GANESH FOR SGFO 44.50 -2.89
SHREE KRISHNA SHKP 14.62 -0.92
SHREE RAMA MULTI SRMT 38.90 -4.49
SIDDHARTHA TUBES SDT 75.90 -11.45
SIMBHAOLI SUGAR SBSM 268.76 -54.47
SITI CABLE NETWO SCNL 219.45 -9.68
SPICEJET LTD SJET 563.64 -41.19
SQL STAR INTL SQL 10.58 -3.28
STATE TRADING CO STC 826.29 -276.56
STELCO STRIPS STLS 14.90 -5.27
STI INDIA LTD STIB 21.69 -2.13
STL GLOBAL LTD SHGL 30.73 -5.62
STORE ONE RETAIL SORI 15.48 -59.09
SUPER FORGINGS SFS 14.62 -7.00
SURYA PHARMA SUPH 370.28 -9.97
TAMILNADU JAI TNJB 17.07 -1.00
TATA METALIKS TML 156.70 -5.36
TATA TELESERVICE TTLS 1,311.30 -138.25
TATA TELE-SLB TTLS/S 1,311.30 -138.25
TODAYS WRITING TWPL 18.58 -25.67
TRIUMPH INTL OXIF 58.46 -14.18
TRIVENI GLASS TRSG 19.71 -10.45
TUTICORIN ALKALI TACF 19.86 -19.58
UDAIPUR CEMENT W UCW 11.38 -10.53
UNIFLEX CABLES UFCZ 47.46 -7.49
UNIWORTH LTD WW 149.50 -151.14
UNIWORTH TEXTILE FBW 22.54 -35.03
USHA INDIA LTD USHA 12.06 -54.51
VANASTHALI TEXT VTI 14.59 -5.80
VENUS SUGAR LTD VS 11.06 -1.08
WANBURY LTD WANB 141.86 -3.91
JAPAN
FLIGHT HOLDINGS 3753 10.10 -2.62
GOYO FOODS INDUS 2230 11.79 -1.51
HARAKOSAN CO 8894 186.55 -8.07
IDEA INTERNATION 3140 23.66 -0.08
KANMONKAI CO LTD 3372 42.64 -0.81
KOREA
DVS KOREA CO LTD 46400 17.40 -1.20
ORIENTAL PRECISI 14940 224.92 -79.83
ROCKET ELEC-PFD 425 111.09 -0.42
ROCKET ELECTRIC 420 111.09 -0.42
SHINIL ENG CO 14350 199.04 -2.53
SSANGYONG ENGINE 12650 1,231.13 -119.47
STX OFFSHORE & S 67250 7,627.42 -1,124.38
TEC & CO 8900 139.98 -16.61
TONGYANG NETWORK 30790 311.91 -36.46
WOONGJIN HOLDING 16880 2,197.34 -635.50
MALAYSIA
HAISAN RESOURCES HRB 41.31 -11.54
HIGH-5 CONGLOMER HIGH 41.63 -34.19
HO HUP CONSTR CO HO 59.28 -16.64
PETROL ONE RESOU PORB 51.39 -4.00
SUMATEC RESOURCE SMTC 169.12 -26.18
VTI VINTAGE BHD VTI 17.74 -3.63
NEW ZEALAND
NZF GROUP LTD NZF NZ Equity 11.69 -4.60
PULSE ENERGY LTD PLE NZ Equity 11.29 -3.44
PHILIPPINES
CYBER BAY CORP CYBR 14.14 -21.59
FIL ESTATE CORP FC 40.90 -15.77
FILSYN CORP A FYN 23.11 -11.69
FILSYN CORP. B FYNB 23.11 -11.69
GOTESCO LAND-A GO 21.76 -19.21
GOTESCO LAND-B GOB 21.76 -19.21
LIBERTY TELECOMS LIB 108.53 -19.42
MRC ALLIED INC MRC 27.06 -2.56
PICOP RESOURCES PCP 105.66 -23.33
STENIEL MFG STN 21.07 -11.96
UNIWIDE HOLDINGS UW 50.36 -57.19
SINGAPORE
ADVANCE SCT LTD ASCT 19.68 -22.46
CEFC INTL LTD SUNE 95.25 -0.31
HL GLOBAL ENTERP HLGE 83.11 -4.63
IGG INC 8002 21.53 -55.84
SCIGEN LTD-CUFS SIE 68.70 -42.35
SUNMOON FOOD COM SMOON 20.26 -17.36
TT INTERNATIONAL TTI 298.35 -82.84
UNITED FIBER SYS UFS 65.52 -56.60
THAILAND
ABICO HLDGS-F ABICO/F 15.28 -4.40
ABICO HOLDINGS ABICO 15.28 -4.40
ABICO HOLD-NVDR ABICO-R 15.28 -4.40
ASCON CONSTR-NVD ASCON-R 59.78 -3.37
ASCON CONSTRUCT ASCON 59.78 -3.37
ASCON CONSTRU-FO ASCON/F 59.78 -3.37
BANGKOK RUBBER BRC 77.91 -114.37
BANGKOK RUBBER-F BRC/F 77.91 -114.37
BANGKOK RUB-NVDR BRC-R 77.91 -114.37
CALIFORNIA W-NVD CAWOW-R 28.07 -11.94
CALIFORNIA WO-FO CAWOW/F 28.07 -11.94
CALIFORNIA WOW X CAWOW 28.07 -11.94
CIRCUIT ELEC PCL CIRKIT 16.79 -96.30
CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30
CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30
DATAMAT PCL DTM 12.69 -6.13
DATAMAT PCL-NVDR DTM-R 12.69 -6.13
DATAMAT PLC-F DTM/F 12.69 -6.13
ITV PCL ITV 36.02 -121.94
ITV PCL-FOREIGN ITV/F 36.02 -121.94
ITV PCL-NVDR ITV-R 36.02 -121.94
K-TECH CONSTRUCT KTECH 38.87 -46.47
K-TECH CONSTRUCT KTECH/F 38.87 -46.47
K-TECH CONTRU-R KTECH-R 38.87 -46.47
KUANG PEI SAN POMPUI 17.70 -12.74
KUANG PEI SAN-F POMPUI/F 17.70 -12.74
KUANG PEI-NVDR POMPUI-R 17.70 -12.74
MANGPONG 1989 PC MPG 11.83 -0.91
MANGPONG 1989 PC MPG/F 11.83 -0.91
MANGPONG 19-NVDR MPG-R 11.83 -0.91
PATKOL PCL PATKL 52.89 -30.64
PATKOL PCL-FORGN PATKL/F 52.89 -30.64
PATKOL PCL-NVDR PATKL-R 52.89 -30.64
PICNIC CORP-NVDR PICNI-R 101.18 -175.61
PICNIC CORPORATI PICNI 101.18 -175.61
PICNIC CORPORATI PICNI/F 101.18 -175.61
SAHAMITR PRESS-F SMPC/F 27.92 -1.48
SAHAMITR PRESSUR SMPC 27.92 -1.48
SAHAMITR PR-NVDR SMPC-R 27.92 -1.48
SHUN THAI RUBBER STHAI 19.89 -0.59
SHUN THAI RUBB-F STHAI/F 19.89 -0.59
SHUN THAI RUBB-N STHAI-R 19.89 -0.59
SUNWOOD INDS PCL SUN 19.86 -13.03
SUNWOOD INDS-F SUN/F 19.86 -13.03
SUNWOOD INDS-NVD SUN-R 19.86 -13.03
TONGKAH HARBOU-F THL/F 62.30 -1.84
TONGKAH HARBOUR THL 62.30 -1.84
TONGKAH HAR-NVDR THL-R 62.30 -1.84
TRANG SEAFOOD TRS 15.18 -6.61
TRANG SEAFOOD-F TRS/F 15.18 -6.61
TRANG SFD-NVDR TRS-R 15.18 -6.61
TT&T PCL TTNT 589.80 -223.22
TT&T PCL-NVDR TTNT-R 589.80 -223.22
TT&T PUBLIC CO-F TTNT/F 589.80 -223.22
WORLD CORP -NVDR WORLD-R 15.72 -10.10
WORLD CORP PCL WORLD 15.72 -10.10
WORLD CORP PLC-F WORLD/F 15.72 -10.10
TAIWAN
BEHAVIOR TECH CO 2341S 30.90 -0.22
BEHAVIOR TECH-EC 2341O 30.90 -0.22
HELIX TECH-EC 2479T 23.39 -24.12
HELIX TECH-EC IS 2479U 23.39 -24.12
HELIX TECHNOL-EC 2479S 23.39 -24.12
POWERCHIP SEM-EC 5346S 2,036.01 -52.74
TAIWAN KOL-E CRT 1606U 507.21 -147.14
TAIWAN KOLIN-EN 1606V 507.21 -147.14
TAIWAN KOLIN-ENT 1606W 507.21 -147.14
*********
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, and Peter A. Chapman,
Editors.
Copyright 2014. 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 ***