/raid1/www/Hosts/bankrupt/TCRAP_Public/140324.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
Monday, March 24, 2014, Vol. 17, No. 58
Headlines
A U S T R A L I A
COBAR CONSOLIDATED: Placed in Voluntary Administration
FITZGERALD GRAPHIC: Jones Partners Appointed as Administrators
NT DIESEL: Cor Cordis Appointed as Administrators
SAPPHIRE IX: Fitch Affirms 'Bsf' Rating on AUD1MM Class CA Notes
SPARE ROOM: Worrells Solvency Appointed as Administrators
VEGAS LIQUOR: Nicols + Brien Appointed as Administrator
C H I N A
COUNTRY GARDEN: CFO Resignation No Impact on Moody's Ba2 CFR
FANTASIA HOLDINGS: 2013 Results No Impact on B1 Corp. Fam. Rating
SUNTECH POWER: Singapore Unit Fails To Pay $263.9MM Judgment Debt
YINGDE GASES: 2013 Results Support Moody's Ba2 Corp. Fam. Rating
I N D I A
ABHIGNA RICE: CRISIL Assigns 'B' Rating to INR70MM Loans
ACTION RETAIL: ICRA Reaffirms 'B+' Rating on INR7.40cr Loan
ANSAL PROPERTIES: CRISIL Assigns 'B+' Rating to INR5BB Loan
CHETAK LIFESPACE: CRISIL Assigns 'B' Rating to INR200MM Loan
EMMSONS INT'L: ICRA Lowers Rating on INR398.40cr Loans to 'B+'
JAGDISH COTTON: CRISIL Reaffirms 'B+' Rating on INR209.4MM Loans
KALYAN AQUA: CRISIL Ups Rating on INR88.2MM Loans to 'B+'
KESHRANAND COTEX: ICRA Assigns 'B' Rating to INR6cr Loans
KHOSLA ENG'G: ICRA Reaffirms 'B+' Rating on INR30cr Loans
M.G.B. MOBILES: CRISIL Cuts Rating on INR130MM Loans to 'B+'
NIRMAL INT'L: CRISIL Reaffirms 'B' Rating on INR10.5MM Loans
PARAKH OILS: ICRA Reaffirms 'B+' Rating on INR2cr Term Loan
PERIYAR CEMENTS: CRISIL Reaffirms 'D' Rating to INR53MM Loans
PILANIA STEELS: CRISIL Cuts Rating on INR75MM Loan to 'B'
PRATEEK APPARELS: ICRA D Rating on INR93.43cr Loans Outstanding
SAMRAT SEA: ICRA Assigns 'C+' Rating to INR11cr Loans
SATYAWATI SUBODH: ICRA Reaffirms 'B-' Rating on INR12.45cr Loan
SHIPRA AGRICHEM: ICRA Cuts Rating on INR13cr Loans to 'D'
SRIPATHY ASSOCEATES: CRISIL Reaffirms B Rating on INR200MM Loan
TIRUPATI COTTON: ICRA Reaffirms 'B+' Rating on INR25cr Loans
VALIA IMPEX: CRISIL Reaffirms 'B' Rating on INR200MM Loans
VIHAAN BOARDS: CRISIL Cuts Rating on INR190MM Loans to 'D'
YOGESH INDUSTRIES: CRISIL Reaffirms B+ Rating on INR97MM Loans
J A P A N
MT. GOX: Says It Has Found Missing Bitcoin Worth About $116MM
MT. GOX: Plaintiffs File Plan to Retrieve Crypto-Currency
T A I W A N
CHINA BILLS: Fitch Affirms Support Rating Floor at 'B+'
- - - - -
=================
A U S T R A L I A
=================
COBAR CONSOLIDATED: Placed in Voluntary Administration
------------------------------------------------------
Cobar Consolidated Resources Group on March 18, 2014, appointed
Stephen Longley -- slongley@ppbadvisory.com -- Christopher Hill -
- chill@ppbadvisory.com -- and David McEvoy --
dmcevoy@ppbadvisory.com -- of PPB Advisory as administrators of
the company and its subsidiaries Silver Corporation of Australia
Pty Ltd., CCR De Nardi Pty Ltd, CCR Gundaroo Pty Ltd and CCR
Bundoon Pty Ltd.
The company said "it had been unsuccessful in securing commitments
for the targeted AUD8 million which was required to restore its
working capital position and meet a scheduled repayment to
Commonwealth Bank of Australia."
Cliff Sanderson at dissolve.com.au relates that Silver Company is
the owner and operator of New South Wales's open cut silver mine
in Wonawinta. Administrator Longley commented that operation at
the mine will continue, dissolve.com.au says.
According to the report, the administrators are currently working
with stakeholders and the management to consider restructuring
options such as a trade sale. The first creditors' meeting is
scheduled on March 28, 2014, the report adds.
Cobar Consolidated Resources Limited (ASX:CCU) --
http://ccrlimited.com.au/-- is an Australia-based mine developer.
The Company has over 900 square kilometers of tenement interests
on the western margin of the Cobar basin in western New South
Wales. The Company is developing the Wonawinta silver project. The
Company's exploration projects include Gundaroo Project, Winduck
Super Project, McKinnons Gold Deposit and Goldwing Project. The
McKinnons gold deposit is located 37 kilometers southwest of Cobar
occurs within the Company's EL6402.
FITZGERALD GRAPHIC: Jones Partners Appointed as Administrators
--------------------------------------------------------------
Michael Gregory Jones at Jones Partners was appointed as
administrator of Fitzgerald Graphic Communications Group Pty Ltd
on March 19, 2014.
A first meeting of the creditors of the Company will be held at
the office of Jones Partners Insolvency & Business Recovery,
Level 13, 189 Kent Street, in Sydney, on March 31, 2014, at
11:00 a.m.
NT DIESEL: Cor Cordis Appointed as Administrators
-------------------------------------------------
Mark Hutchins -- mhutchins@corcordis.com.au -- and Jason Tang --
jtang@corcordis.com.au -- at Cor Cordis were appointed as
administrators of NT Diesel Services Pty Limited on March 19,
2014.
A first meeting of the creditors of the Company will be held at
Level 6, 55 Clarence Street, in Sydney, on March 31, 2014, at
10:30 a.m.
SAPPHIRE IX: Fitch Affirms 'Bsf' Rating on AUD1MM Class CA Notes
----------------------------------------------------------------
Fitch Ratings has upgraded five and affirmed 18 tranches of three
Sapphire series transactions as well as six Bluestone Warehouse
tranches of residential mortgage-backed floating rate notes. The
transactions are securitizations of Australian non-conforming
residential loans originated by Bluestone Group Pty Limited.
The transactions are: Sapphire IX Series 2006-1 Trust (Sapphire
IX); Sapphire X Series 2007-1 Trust (Sapphire X); Sapphire XII
Series 2013-1 (Sapphire XII); and Bluestone Mortgages Warehouse
Trust (Bluestone WH).
Key Rating Drivers
Increased credit enhancement, stable asset performance, and strong
excess income flows have resulted in upgrades of the Class MZ, BA
and BZ notes of Sapphire IX, and the Class BZ and CA notes of
Sapphire X. The upgraded Sapphire X notes had previously been
downgraded by one notch in September 2008 due to high arrears and
losses not covered by excess spread.
The affirmations reflect Fitch's view that available credit
enhancement supports the relevant notes at their current ratings,
the agency's expectations of Australia's economic conditions, and
that the credit quality and performance of the underlying loans
remain within the agency's expectations.
Arrears are high across the transactions, as is common in the non-
conforming market. At 31 January 2014, 30+ days arrears levels
ranged between 7.4% (Bluestone WH) and 12.6% (Sapphire X),
compared to Fitch's 4Q13 non-conforming low-doc Dinkum RMBS Index
of 7.82%. While total arrears remained high, there were
significant reductions in the 90+ days buckets of Sapphire IX
(4.2%, down from 7.5% in Jan-13) and Sapphire X (3%, from 7.4% in
Jan-13).
Defaults and losses were stable across Sapphire IX and Sapphire X
over the year to January 2014, with six losses totaling
AUD816,635; and 5 losses totaling AUD532,927, respectively. The
losses were covered by strong excess income available over the
period. The recently issued Sapphire XII had experienced two
losses since closing, totaling AUD230,663, which was covered by a
charge-off to the unrated Class H note and by excess spread.
Losses remain in line with Fitch's expectations.
The collateral underlying all four transactions is highly
seasoned, with a weighted average (WA) seasoning of over seven
years. As a result, the Fitch-calculated WA loan-to-value ratio
reduced by between six and 11 percentage points after indexation
was applied.
Rating Sensitivities
Unexpected increases in delinquencies, defaults and losses would
be necessary before any negative rating action were considered on
the transactions' senior notes. The credit enhancement levels of
the senior notes can support multiples of the arrears levels
reported in the latest investor reports.
The protection provided by the unrated notes is increasing as the
rated notes from Sapphire IX and X continue to amortize. As a
result, any negative rating action on these transactions is
considered very unlikely. Prospects for future upgrades are
however constrained by future concentration issues.
Available credit enhancement is expected to increase for Sapphire
XII as the rated notes pay down, thereby reducing sensitivities to
combinations of increased delinquencies and defaults.
Fitch's initial key rating drivers and rating sensitivities are
further discussed in Sapphire XII's corresponding New Issue report
listed under "Related Research". Included as an appendix to
Sapphire XII's report is a description of the representations,
warranties, and enforcement mechanisms.
A comparison of the transactions' representations, warranties and
enforcement mechanisms (RW&Es) to those of typical RW&Es for this
asset class is also available by accessing the reports and/or
links given under Related Research below.
Sapphire IX Series 2006-1 Trust:
AUD38.9m Class AA notes (AU300SAPA010) affirmed at 'AAAsf';
Outlook Stable;
AUD5.0m Class AM notes (AU300SAPA028) affirmed at 'AAAsf'; Outlook
Stable;
AUD3.3m Class AZ notes (AU300SAPA036) affirmed at 'AAAsf'; Outlook
Stable;
AUD4.3m Class MA notes (AU300SAPA044) affirmed at 'AAsf'; Outlook
Stable;
AUD3.6m Class MZ notes (AU300SAPA051) upgraded to 'AAsf; from
'A+sf'; Outlook Stable;
AUD3.5m Class BA notes (AU300SAPA069) upgraded to 'Asf' from
'BBB+sf'; Outlook Stable;
AUD3.4m Class BZ notes (AU300SAPA077) upgraded to 'BBBsf' from
'BBsf'; Outlook Stable; and
AUD1m Class CA notes (AU300SAPA085) affirmed at 'Bsf'; Outlook
Stable.
Sapphire X Series 2007-1 Trust:
AUD58.2m Class AA notes (AU3FN0001939) affirmed at 'AAAsf';
Outlook Stable;
AUD9.3m Class AM notes (AU3FN0001947) affirmed at 'AAAsf'; Outlook
Stable;
AUD4.9m Class AZ notes (AU3FN0001954) affirmed at 'AAAsf'; Outlook
Stable;
AUD7.8m Class MA notes (AU3FN0001962) affirmed at 'AAsf'; Outlook
Stable;
AUD5.4m Class MZ notes (AU3FN0001970) affirmed at 'A+sf'; Outlook
Stable;
AUD5.0m Class BA notes (AU3FN0001988) affirmed at 'BBB+sf';
Outlook Stable;
AUD5.5m Class BZ notes (AU3FN0001996) upgraded to 'BBsf' from 'BB-
sf'; Outlook Stable; and
AUD2.6m Class CA notes (AU3FN0002002) upgraded to 'Bsf' from 'B-
sf'; Outlook Stable.
Sapphire XII Series 2013-1 Trust:
AUD90.1m Class A1 notes (AU3FN0021424) affirmed at 'AAAsf';
Outlook Stable;
AUD23.5m Class A2 notes (AU3FN0021432) affirmed at 'AAAsf';
Outlook Stable;
AUD5.9m Class B notes (AU3FN0021440) affirmed at 'AAsf'; Outlook
Stable;
AUD6.8m Class C notes (AU3FN0021457) affirmed at 'Asf'; Outlook
Stable;
AUD4.6m Class D notes (AU3FN0021465) affirmed at 'BBBsf'; Outlook
Stable;
AUD2.6m Class E notes (AU3FN0021473) affirmed at 'BBsf'; Outlook
Stable; and
AUD2.0m Class F notes (AU3FN0021481) affirmed at 'Bsf'; Outlook
Stable.
Bluestone Mortgages Warehouse Trust:
AUD169.8m Class A notes affirmed at 'AAAsf'; Outlook Stable;
AUD6.8m Class B notes affirmed at 'AAsf'; Outlook Stable;
AUD5.8m Class C notes affirmed at 'Asf'; Outlook Stable;
AUD5.0m Class D notes affirmed at 'BBBsf'; Outlook Stable;
AUD0 Class E notes affirmed at 'BBBsf'; Outlook Stable; and
AUD3.6m Class F notes affirmed at 'BB-sf'; Outlook Stable.
SPARE ROOM: Worrells Solvency Appointed as Administrators
---------------------------------------------------------
Nicholas Craig Malanos -- nick.malanos@worrells.net.au -- and
Aaron Lucan -- aaron.lucan@worrells.net.au -- at Worrells Solvency
& Forensic Accountants were appointed as administrators of Spare
Room Self Storage Holding Company Pty Limited on March 19, 2014.
A first meeting of the creditors of the Company will be held at
the office of Worrells Solvency & Forensic Accountants, Suite 3,
Level 3, 350 George Street, in Sydney, on March 31, 2014, at
12:00 p.m.
VEGAS LIQUOR: Nicols + Brien Appointed as Administrator
-------------------------------------------------------
Steven Nicols at Nicols + Brien was appointed as administrator of
Vegas Liquor Pty Ltd on March 19, 2014.
A first meeting of the creditors of the Company will be held at
the office of Nicols + Brien, Level 2, 350 Kent Street, in Sydney
on March 31, 2014, at 11:00 a.m.
=========
C H I N A
=========
COUNTRY GARDEN: CFO Resignation No Impact on Moody's Ba2 CFR
------------------------------------------------------------
Moody's Investors Service says that the resignation of the chief
financial officer (CFO) of Country Garden Holdings Limited could
negatively impact the company's ability to manage its fast growing
business operations. In addition, the company's potential share
buyback could reduce its cash flow and liquidity.
However, these developments will not immediately impact the
company's Ba2 corporate family and senior unsecured ratings.
The ratings outlook remains stable.
On March 19, Country Garden announced that Ms Ng Yi Kum, Estella,
CFO, had resigned from the company.
The company has yet to announce a replacement for the CFO
position.
"While the company's day-to-day operations should not be affected
in the near term, its ability to execute on its financial policy
and planning will be adversely impacted if this position remains
vacant beyond the next six months," says Lina Choi, a Moody's Vice
President and Senior Analyst.
Moody's sees potential risk that any shared responsibilities by
its existing management team could decrease the company's ability
to manage its fast expanding business operations and the
associated increase in leverage and margin contraction.
On the same date, the company discussed in a conference call the
possibility of a share buyback to support its share price.
"Country Garden's share buyback will reduce the company's
liquidity buffer but will not have an immediate impact on its
ratings, given its strong cash position," adds Choi, also the Lead
Analyst for Country Garden.
Country Garden's contracted sales grew 123% year-on-year in 2013,
though partially at the expense of profitability. The company's
adjusted EBITDA margin contracted to 21.8% from 29.3% in 2012.
Debt to capitalization also rose to 60% from 55% in 2012. These
metrics point to a changing business profile that requires prudent
financial planning and liquidity management.
Country Garden's ratings and outlook could be under pressure if
the company does not fill the CFO position in the next six months
and if its credit metrics further deteriorate.
Country Garden's liquidity profile remained strong in 2013. Short-
term debt to total debt was 22.1% in December 2013, an improvement
from 24.6% in December 2012. Its cash position was RMB26.7 billion
(including restricted cash) as of December 2013, more than
sufficient to cover its maturing debt of RMB12.4 billion and
committed land payments of RMB10 billion in 2014.
Such a strong liquidity profile partially mitigates the weakened
EBITDA/interest coverage, and supports Country Garden's Ba2
ratings. Moody's will monitor the company's sales, margin and
liquidity trends closely as any signs of lax financial planning
emerge.
The stable outlook reflects Moody's expectation that Country
Garden will continue to achieve solid sales and maintain its
prudent financial management in the next 12-18 months. Such
factors would help it preserve its good liquidity and strong
credit profile.
Upward rating pressure could emerge if Country Garden (1) achieves
growth with further improvements in its credit metrics --
EBITDA/interest exceeding 4.0x-4.5x and adjusted debt/total
capitalization below 50%; and (2) maintains strong liquidity --
cash at 10%-15% of total assets and covers more than 1.0x-1.5x of
its short-term debt.
Downward rating pressure could emerge if Country Garden: (1) is
unable to sustain its solid sales track record due to new
regulations or adverse market conditions; (2) posts significant
and sustained margin deterioration -- EBITDA margin below 20%; or
(3) adopts an aggressive land acquisition strategy, which in turn,
has a negative effect on its liquidity -- cash failing to fully
cover its short-term debt.
The principal methodology used in this rating was the Global
Homebuilding Industry published in March 2009.
Country Garden Holdings Company Limited, founded in 1997 and
listed on Hong Kong Stock Exchange, is a leading Chinese
integrated property developer. As of December 2013, it had a
sizeable land bank of 72.3 million square meters in attributable
gross floor area.
It also owns and operates 39 hotels with a total of 11,387 rooms
as of December 2013. The hotels are located mainly in Guangdong
Province and support its township developments.
FANTASIA HOLDINGS: 2013 Results No Impact on B1 Corp. Fam. Rating
-----------------------------------------------------------------
Moody's Investors Service says Fantasia Holdings Group Company
Limited's B1 corporate family rating and B2 senior unsecured
rating are unaffected by its 2013 results. However, the company's
ratings headroom has narrowed.
The ratings outlook is stable.
"Fantasia's interest coverage ratio was weaker in 2013, due to a
faster rise in debt, which narrowed the headroom of its ratings,"
says Jiming Zou, a Moody's Assistant Vice President and Analyst.
The company's EBITDA/interest fell from 3.4x in 2012 to 2.2x in
2013, which is weak for its B1 corporate family rating. In the
next 12-18 months, its interest coverage is likely to remain in
the range of 2.0x to 2.5x, reflecting Moody's expectations of
stable growth in earnings and debt.
Fantasia's reported total debt increased by RMB4 billion to
RMB11.8 billion in 2013, as it accelerated acquisitions to
replenish its land bank in first-tier cities such as Beijing and
Shenzhen.
The planned gross floor area of its land bank grew to 8.7 million
square meters (sqm) at end-2013 from 8.0 million sqm at end-2012.
The newly acquired land parcels will support the company's growth
in contracted and recognized sales from 2014 onwards.
"At the same time, Fantasia has maintained adequate liquidity,
which is important for operating through the property market
cycles in China," adds Zou.
Fantasia's liquidity position remains adequate, as shown by RMB3.6
billion cash-on-hand, including restricted cash, compared to
RMB2.1 billion in short-term debt at end-2013. The issuance of
USD300 million senior notes in January 2014 will support the
company's liquidity and development plan.
In 2013, Fantasia's contract sales rose 26.9% year-on-year to
RMB10.2 billion, which was slightly above its sales target of
RMB10.0 billion. Fantasia's diversified its contract sales to 32
projects in 13 cities in 2013 from 19 projects in 10 cities in
2012.
Revenue rose 16.9% year-on-year to RMB7.3 billion, driven by
property development revenue, which grew 14.4% year-on-year to
RMB6.7 billion.
Gross margin narrowed to 38.4% in 2013 from 40.5% in 2012,
reflecting a change in the composition of completed properties
that it delivered. Nonetheless, Fantasia has maintained a
relatively high gross margin compared to other rated property
developers in the similar price category, due to its low land
costs.
Fantasia's strategy to grow its property management business is
positive to its business profile because of the latter's recurring
income, high profit margin and asset-light business model.
However, Moody's expects that it will take time for this business
to contribute significantly to Fantasia. As of 2013, property
operational services division reported a 70% increase in sales to
RMB315 million, accounting for 4% of Fantasia's total sales.
The ratings could be downgraded if (1) Fantasia's sales fall
significantly short of Moody's expectations; (2) the company
pursues aggressive land acquisitions, or expansion activities that
pressure its liquidity; or (3) it fails to maintain a disciplined
approach to financial management.
EBITDA/Interest below 2.0x-2.5x and cash to short term debt below
1.3x to 1.5x will indicate a potential ratings downgrade.
Upward ratings pressure could emerge, if Fantasia can (1) broaden
its asset base and geographic footprint with diversification
apparent in contracted sales; (2) consistently achieve its sales
targets; (3) maintain strong financial discipline, while
implementing its growth strategy; and (4) maintain sound
liquidity.
Moody's sees EBITDA/interest coverage consistently above 3x and
adjusted debt/capitalization below 50% as indications for a
potential ratings upgrade.
The principal methodology used in this rating was the Global
Homebuilding Industry, published in March 2009.
Fantasia Holdings Group Co Limited is a property developer
established in 1996. It listed on the Hong Kong Stock Exchange in
November 2009. At 31 December 2013, it had a land bank of 8.7
million sqm of gross floor area (including land banks under
framework agreements), mainly in Chengdu and the Pearl River
Delta. It develops high-end office buildings and luxury
residential properties, targeting small- and medium-sized
enterprises and affluent individuals.
SUNTECH POWER: Singapore Unit Fails To Pay $263.9MM Judgment Debt
-----------------------------------------------------------------
Suntech Power Holdings Co., Ltd. on March 18, 2014, disclosed
that, following the January 27, 2014 judgment from the High Court
of the Republic of Singapore ordering Suntech Power Investment
Pte., Ltd. to pay to Suntech's subsidiary, Power Solar System Co.,
Ltd. (PSS) approximately US$263.9 million, on February 20, 2014,
the Liquidator of PSS issued a statutory demand against Suntech
Singapore for the Judgment Debt. Suntech Singapore was required to
repay the Judgment Debt by March 13, 2014, but it has failed to do
so. Suntech Singapore is now deemed to be unable to pay its debts
under the Singapore Companies Act. However, on March 12, 2014,
Suntech Singapore filed an application to set aside the Judgment
Debt. PSS is considering the application and will make further
announcements as may be warranted.
PSS has also filed a civil complaint with the Shanghai No.1
Intermediate People's Court against Suntech Singapore for an
outstanding principal amount of US$11 million and its overdue
interest. The PRC Court officially accepted filing of this
complaint on February 18, 2014, with the hearing fixed on November
5, 2014. In conjunction with the civil complaint, PSS applied to
the PRC Court for a preservation order in respect of onshore
assets held by Suntech Singapore, in particular an equity interest
in Suntech Power Company Limited. The application was granted by
the PRC Court on March 4, 2014. The preservation period will
initially be for a year, subject to extension upon application by
PSS.
"We will rigorously defend the application by Suntech Singapore to
set aside PSS' judgment for the sum of US$263.9 million, and will
take all necessary steps to recover value for creditors," said Mr.
John Ayres, a Liquidator of PSS. "We are also making substantial
progress in the investigation of the purported transfer of the
equity interests in Suntech Power Japan Corporation and Suntech
Singapore to Wuxi Suntech Power Co., Ltd. These actions appear to
have been taken without proper regard for the interests of
creditors and shareholders of the Company and appropriate actions
will be taken in due course," added Mr. Ayres.
"Suntech Shanghai is a valuable core subsidiary of Suntech
Singapore, and in obtaining the asset preservation order in the
PRC we have hopefully prevented the asset from being placed beyond
reach. We are confident that the actions being taken will lead to
a successful recovery for creditors of the Company and we call
upon the relevant parties to work with us to expedite a resolution
of the various claims and matters which we are dealing with,"
commented Mr. David Walker, the Joint Provisional Liquidator of
the Company.
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd., produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power on Jan. 31, 2014, disclosed that it has signed a
Restructuring Support Agreement relating to the petition for
involuntary bankruptcy filed against it under chapter 7 of the
U.S. Bankruptcy Code. Under the RSA, the parties agreed that
chapter 7 proceedings will be dismissed following recognition of
the provisional liquidation proceeding previously filed by the
Company in the Cayman Islands under chapter 15 of the U.S.
Bankruptcy Code.
In February 2014, Suntech Power disclosed that the joint
provisional liquidators of the Company appointed by the Grand
Court of the Cayman Islands to oversee the restructuring of the
Company have commenced a Chapter 15 proceeding under the U.S.
Bankruptcy Code in a federal court in the Southern District of New
York. Under such a proceeding, the Company is seeking to have
recognized in the United States the Company's overseas provisional
liquidation which has previously been granted in the Cayman
Islands.
YINGDE GASES: 2013 Results Support Moody's Ba2 Corp. Fam. Rating
----------------------------------------------------------------
Moody's Investors Service says that Yingde Gases Group Company
Limited's 2013 results are generally in line with Moody's
expectations, and support its Ba2 corporate family rating and the
Ba3 senior unsecured rating on the bond issued by its wholly owned
subsidiary, Yingde Gases Investment Limited.
The ratings outlook is stable.
"Contributions from new production facilities supported Yingde
Gases' steady growth in revenues and earnings in 2013. Despite
increased capital spending, the company's credit metrics in 2013
remained consistent with Moody's expectation for a Ba2 corporate
family rating," says Jiming Zou, a Moody's Assistant Vice
President.
Yingde Gases increased its production facilities by 16 to 57 at
end-2013. Its total installed oxygen capacity grew by 50% year-on-
year to 1.6 Nm3/hr in 2013. Capacity growth and the gradual
production ramp-up resulted in an increase in its EBITDA to about
RMB2 billion, up from RMB1.5 billion a year ago.
Moody's notes that the presence of largely take-or-pay contract
structure with on-site customers, which accounted for 88% of total
revenues in 2013, was key to Yingde Gases' steady EBITDA growth,
despite a sluggishness in key end-markets.
On the other side, Yingde Gases benefited from a robust increase
in production volume in the Chinese steel industry in 2013, which
is one of the major end-customer for its gas products. As of 31
December 2013, 72% of Yingde Gases' installed onsite oxygen
capacity was for the steel industry
The sluggishness in key end-markets depressed the pricing of
Yingde Gases' merchant gases by about 15% in 2013. However, the
impact of such price cuts was manageable, as merchant gases
accounted for only 11% of the total revenues in 2013.
Yingde Gases' key credit metrics improved in 2013, as the increase
in earnings outpaced debt growth. For instance, adjusted
Debt/EBITDA declined to about 3.9x in 2013 from 4.6x a year ago.
Its reported debt grew by RMB1.2 billion to RMB7.9 billion in
2013.
Moody's expect the company's adjusted Debt/EBITDA to increase in
2014 due to its sizeable capital spending, but stay below 5.0x (as
required for the current Ba2 corporate family rating) in the next
12-18 months, based on its current ramp-up schedules and expansion
plan.
Part of the capital spending will be supported by internal cash
flows, with the rest coming from project finance loans, which
Moody's expect to be largely available for this utility-like
business.
Yingde Gases plans to expand its presence to 18 provinces in China
by the end of 2016 upon the completion of the 28 production
facilities currently under development. It revenue base will
become more diversified through building new facilities for the
chemical and non-ferrous industry.
Moody's believes that management attention on working capital
management will be crucial to support operating cash flow and to
contain debt increase amid its fast expansion. Yingde Gases'
reported operating cash flow of RMB950 million in 2013 was similar
to the amount achieved in 2012 and 2011, despite strong EBITDA
growth.
The lagging state of its operating cash flow in 2013 mainly
resulted from accelerated payment terms to suppliers. Its account
payables days fell to 41 days in 2013 from 53 days in 2012, while
account receivables days were stable at 52 in 2013, versus 54 in
2012. If its weak cash flow persists for an extended period, the
company's ratings could come under pressure.
Yingde Gases reported a cash balance of about RMB400 million at
end-2013, well below its RMB1.2 billion in short-term debt. Such a
low cash balance -- amid its fast expansion -- adds to business
risks. However, the concern over liquidity is partly mitigated by
its track record of revolving existing and raising new bank loans
in the last decade.
The principal methodology used in this rating was the Global
Chemical Industry Rating Methodology published in December 2013.
Yingde Gases Group Company Limited is one of the largest players
in the independent on-site industrial gas market in China. It had
a total of 57 production facilities in operation as of 31 December
2013.
=========
I N D I A
=========
ABHIGNA RICE: CRISIL Assigns 'B' Rating to INR70MM Loans
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Abhigna Rice & Parboiled Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 40 CRISIL B/Stable (Assigned)
Long Term Loan 30 CRISIL B/Stable (Assigned)
The rating reflects ARPI'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 rice
milling industry. These rating weaknesses are partially offset by
the extensive industry experience of ARPI's promoters.
Outlook: Stable
CRISIL believes that ARPI will continue to benefit over the medium
term from its promoter's extensive industry experience. The
outlook may be revised to 'Positive' if the company improves its
scale of operations and capital structure, leading to an
improvement in its financial risk profile. Conversely, the outlook
may be revised to 'Negative' if ARPI undertakes aggressive debt-
funded expansions, or if its revenues and profitability decline
substantially, leading to weakening in its financial risk profile.
Set up in 2012, ARPI mills and processes paddy into rice, rice
bran, broken rice, and husk. The company is promoted by
Mr.Kondaiah, Mr.Venkataiah, Mr.Narasimhulu and Mr.Bhaskar.
ARPI reported a provisional profit after tax (PAT) INR0.2 million
on net sales of INR62 million for 2012-13 (refers to financial
year, April 1 to March 31).
ACTION RETAIL: ICRA Reaffirms 'B+' Rating on INR7.40cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the long term rating at '[ICRA]B+' for INR7.40
crore fund based working capital limits of Action Retail Ventures
Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-based limits 7.40 Reaffirmed at [ICRA]B+
The rating reaffirmation takes into consideration the growth in
ARVPL's scale of operations in FY13, improvement in its operating
margins and decline in its gearing from 4.0 times as on March 31,
2012 to 3.5 times as on March 31, 2013. However the strengths are
partially offset by the fact that the scale of operations
continues to remain moderate and the company is expected to
witness some decline in its turnover in FY14. Further the rating
also factors in the fact that notwithstanding improvement in its
operating margins, with the decline in interest income, its net
margins have declined significantly in FY13 and the gearing still
continues to remain high which coupled with thin profitability has
led to weak debt protection metrics. The rating also takes into
consideration high competitive nature of the industry and raw
material price volatility which exert pressure on its
profitability. However the rating continues to draw comfort from
ARVPL's experienced management, its established brand, healthy
growth opportunities in the footwear retailing industry and its
strong distribution network. Going forward the company's ability
to scale up its operations and improve its profitability and
capitalization ratios will remain key rating sensitivities.
Action Retail Ventures Private Limited is a part of Mr. Hari
Kishen Aggarwal faction within the larger Action group that has
been in the footwear business for more than three decades. The
company was incorporated in FY2006 to serve as retailing arm. The
company primarily buys footwear from Delhi unit of Nikhil Footwear
Private Limited and then sells it to the distributors.
Recent Results
The firm reported net profit (before tax) of INR0.23 crore on an
operating income of INR17.33 crore in 6MFY14 as against profit
ANSAL PROPERTIES: CRISIL Assigns 'B+' Rating to INR5BB Loan
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+(SO)/Stable' rating to the non-
convertible debentures (NCDs) of Ansal Properties & Infrastructure
Ltd.
Amount
Facilities (INR Bln) Ratings
---------- --------- -------
Non Convertible 5 CRISIL B+(SO)/Stable(Assigned)
Debentures
The rating factors in APIL's trustee-monitored payment structure.
The company will maintain an escrow account of receivables from
existing and new sales of commercial and residential space at the
Sushant Golf City project (project), a township in Lucknow, Uttar
Pradesh. The trustee monitors the inflow and outflow of funds from
the escrow account, and the NCD holders' claim on the project's
cash flows. Additionally, the NCD Holder has a security
cover/negative lien on the assets of the project which ensures a
security cover of 2.5 at all times. Therefore, the company's
adherence to the payment structure will remain a key rating
sensitivity factor.
The NCDs are secured and redeemable with a final legal maturity of
seven years. APIL has the flexibility to repay these NCDs after
three years. The NCDs carry an annual coupon rate of 20.5 per
cent. APIL has to pay an additional redemption premium on surplus
operating cash-flows (after repayment of the principal and
interest). CRISIL has not factored in such redemption premium as
an obligation for the rating.
The rating reflects APIL's extensive dependence on customer
advances to fund the project, the company's exposure to project
implementation risks and inherent cyclical demand in the real
estate sector. These rating weaknesses are partially offset by
adequate saleability of the project, and the promoter's extensive
experience in the real estate sector.
Outlook: Stable
CRISIL believes that APIL's Sushant Golf City project will remain
susceptible to weak demand in the real estate sector over the
medium term. The outlook may be revised to 'Positive' if the
company records sizeable project sales and advance payments from
customers. Conversely, the outlook may be revised to 'Negative' if
APIL's realisation of customer advances is slow.
APIL is part of the Ansal API group. The group is a prominent real
estate developer for the last 45 years with a diverse portfolio
including townships, residential apartments, commercial, retail,
special economic zones, information technology parks, and hotels.
The company has established its presence in northern India and has
land reserves of 7,189 acres as of September 30, 2013.
CHETAK LIFESPACE: CRISIL Assigns 'B' Rating to INR200MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Chetak Lifespace Private Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 200 CRISIL B/Stable
The rating reflects CLPL's exposure to risks related to
completion, funding, and saleability of its ongoing project. The
rating also factors in the company's vulnerability to cyclicality
inherent in the Indian real estate sector. These rating weaknesses
are partially offset by the extensive experience of CLPL's
promoters in the civil construction and real estate sector and the
project's favorable location.
Outlook: Stable
CRISIL believes that CLPL will benefit from its promoters'
extensive experience in the real estate sector over the medium
term. The outlook may be revised to 'Positive' if the company
reports better-than-expected progress in its construction and the
bookings of units, along with receipt of customer advances,
resulting in sizeable cash inflows. Conversely, the outlook may be
revised to 'Negative' if CLPL reports lower-than-expected customer
bookings and time or cost overruns, resulting in weak cash
inflows, constraining its financial risk profile, particularly
liquidity.
CLPL, incorporated in 2009, is a Mumbai-based private limited
company, promoted by Mr. Hiren A. Shah and his wife, Mrs. Urvashi
Hiren Shah. It develops residential real estate projects. The
company is developing a residential project Chetak Resort at Bordi
(Maharashtra) which constitutes 101 bungalows and a resort. In
addition, the company has also undertaken various projects in
Mumbai.
EMMSONS INT'L: ICRA Lowers Rating on INR398.40cr Loans to 'B+'
--------------------------------------------------------------
ICRA has revised the long term rating for the INR370.00 crore fund
based limits, INR26.77 crore term loans and INR1.63 crore
unallocated limits of Emmsons International Limited from [ICRA]BB-
with negative outlook to [ICRA]B+. The rating committee has
reaffirmed the short term rating assigned to the non fund based
limits of INR375.00 crore of EIL at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits 370.00 [ICRA]B+ Revised from
[ICRA]BB-
Term Loans 26.77 [ICRA]B+ Revised from
[ICRA]BB-
Unallocated 1.63 [ICRA]B+ Revised from
[ICRA]BB-
Non-Fund Based
Limits 375.00 [ICRA]A4 reaffirmed
The rating action takes into account the persisting high debt
levels (consolidated gearing of 7.2 times as on March 31, 2013) of
the company as the stake sale in the substantially debt funded
Indonesian coal mining project has not materialised as yet.
Further the rating action factors in the decline in EIL's turnover
in FY2013 and limited growth in the same in current year so far.
The profitability of the company continues to remain modest
(operating margins of 2.8% in FY2013) owing to its trading nature
of business and high competitive intensity in the industry.
Further given decline in its scale of operations, the increased
interest cost has resulted in decline in its net margins from 1.1%
in FY2012 to 0.1% in FY2013; however during current year company
has witnessed slight improvement in its net margins. Decline in
profitability coupled with high debt levels has resulted in
deterioration in debt coverage indicators. From FY2012 to FY2013
its OPBDITA/Interest has declined from 1.57 times to 1.07 times
and during the same period its NCA/TD has declined from 4% to 0.5%
and DSCR from 1.45 times to 1.01 times. Further, the ratings
continue to be strained on account of EIL's exposure to commodity
price risk and foreign exchange fluctuation risk which mainly
arises due to selective hedging by the company and execution risk
faced by the company with respect to the development of the coal
mine field.
The ratings however continue to derive support from EIL's
experienced management and its long track record of operations in
the trading business. Further the ratings take comfort from EIL's
established distribution network and relationship with suppliers
and customers. Further its presence across several countries and a
diversified product mix protects company from slowdown in
particular commodity and/or particular geography.
ICRA has noted that the company is in the process of selling a
part of its stake in the Indonesian coal mining project to raise
funds to pay off part of its debt/fund its planned capex for the
project. ICRA will closely monitor the developments in this
regard. Further, ICRA also takes note of the sizeable repayment
obligations faced by the company during FY2015 onwards. Apart
this, going forward improvement in its capital structure and other
debt coverage indicators will be the key rating sensitivity.
Emmsons International Ltd. was incorporated in the year 1993,
prior to which it was operating as a partnership firm involved in
trading of Sulphur and Rock Phosphate. Currently EIL is a three-
star trading house engaged in export and import of commodities.
The major commodities traded by the company are Rice, Sugar, Coal,
Cotton and Maize etc.
JAGDISH COTTON: CRISIL Reaffirms 'B+' Rating on INR209.4MM Loans
----------------------------------------------------------------
CRISIL's rating on the bank facilities of Jagdish Cotton
Industries Pvt Ltd continues to reflect JCIPL's below-average
financial risk profile marked by its small net-worth, high gearing
and weak debt protection metrics. The rating also factors in the
susceptibility of the company's profitability margins to
volatility in cotton prices, and its exposure to changes in
government regulations and intense competition in the cotton
ginning industry. These rating weaknesses are partially offset by
the extensive experience of JCIPL's promoters in the cotton
ginning industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 180 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 29.4 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that JCIPL will continue to benefit over the
medium term from its promoters' extensive experience in the cotton
ginning business. The outlook may be revised to 'Positive' if the
company registers a substantial and sustained increase in its
revenues and profitability margins, or there is a substantial
improvement in its capital structure on the back of equity
infusion by its promoters. Conversely, the outlook may be revised
to 'Negative' in case of a steep decline in the company's
profitability margins, or substantial deterioration in its capital
structure on account of a stretch in its working cycle or large
debt-funded capex.
JCIPL was set up in 2004 by Mr. Jagdish Agarwal and his sons, Mr.
Pankaj Agarwal and Mr. Ajay Agarwal. The company is primarily
engaged in ginning and pressing of raw cotton. It also has a
crushing unit to extract de-oiled cake and oil from cotton seeds.
The company is based in Alidabad (Andhra Pradesh).
KALYAN AQUA: CRISIL Ups Rating on INR88.2MM Loans to 'B+'
---------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Kalyan Aqua & Marine Exports India Pvt Ltd to 'CRISIL B+/Stable'
from 'CRISIL B-/Stable'; the rating on the company's short-term
bank facilities has been reaffirmed at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Bill Discounting 135 CRISIL A4 (Reaffirmed)
Letter of Credit 10 CRISIL A4 (Reaffirmed)
Packing Credit 100 CRISIL A4 (Reaffirmed)
Proposed Working Capital
Facility 11.3 CRISIL B+/Stable Upgraded
from 'CRISIL B-/Stable')
Standby Letter of Credit 12.5 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
Term Loan 64.4 CRISIL B+/Stable (Upgraded
from 'CRISIL B-/Stable')
The rating upgrade reflects the improvement in KAMPL's business
risk profile, driven by a substantial and sustained increase in
its scale of operations, while maintaining its profitability
margins. The upgrade also reflects the increase in the company's
net worth, thereby enhancing its financial flexibility, and the
subsequent improvement in its capital structure. CRISIL believes
that KAMPL will sustain the improvement in its financial risk
profile over the medium term, on the back of consistent growth in
its net worth and the absence of any large debt-funded capital
expenditure (capex) plan.
KAMPL is likely to register a year-on-year increase of 200 per
cent in its revenues in 2013-14 (refers to financial year, April 1
to March 31) following the stabilisation of its incremental
processing capacity, which came online in August 2012. The
company's operating profit margin, which is expected to increase
by 100 basis points to 11.2 per cent in 2013-14, would remain
stable at around 11.0 per cent over the medium term.
KAMPL's net worth is likely to increase to INR160 million as on
March 31, 2014 from INR64 million as on March 31, 2012, on the
back of its moderate accretion to reserves and an equity infusion
of INR41 million by its promoters over this period. Consequently,
the company's gearing is expected to decline to 1.9 times as on
March 31, 2014 from 2.3 times as on March 31, 2012. KAMPL's
gearing is expected to further decline to around 1.6 times as on
March 31, 2015 with consistent growth in its net worth and the
absence of any large debt-funded capex plan.
The rating reflects KAMPL's company's large working capital
requirements, and its exposure to adverse regulatory changes, if
any, and intense competition in the seafood processing industry.
The rating also factors in the susceptibility of the company's
profitability margins to volatility in raw material prices and the
value of Indian rupee, and the company's average financial risk
profile marked by its small net worth, moderate gearing and
average debt protection metrics. These rating weaknesses are
partially offset by the extensive experience of KAMPL's promoters
in the seafood industry.
Outlook: Stable
CRISIL believes that KAMPL will continue to benefit over the
medium term from the promoters' extensive experience in the
seafood industry. The outlook may be revised to 'Positive' if
there is a sustained improvement in the company's working capital
management, or there is a substantial increase in its net worth on
the back of equity infusion by its promoters. Conversely, the
outlook may be revised to 'Negative' in case of a steep decline in
the company's profitability margins, or substantial deterioration
in its capital structure most likely because of a stretch in its
working capital cycle or large debt-funded capex.
KAMPL was established as a partnership firm - Kalyan Aqua and
Marine Exports - by Mr. P Rajendra Prasad and his family members
in 2004. The firm was reconstituted as a private limited company
in 2007. KAMPL processes and exports shrimps.
KESHRANAND COTEX: ICRA Assigns 'B' Rating to INR6cr Loans
---------------------------------------------------------
ICRA has assigned the '[ICRA]B' rating to INR6.00 crore long term
fund based limits of Keshranand Cotex Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term, Fund
based limits-
Term Loan 3.00 [ICRA]B assigned
Long term, Fund
based limits-
Cash Credit 3.00 [ICRA]B assigned
The assigned rating factors the long standing experience of the
promoters in the cotton ginning industry, with group companies
engaged in processing of raw cotton and manufacturing of cotton
seed oil and cakes for around eight years; as well as the
company's favourable access to raw cotton, the plant being located
in proximity to the cotton producing belt of Maharashtra. The
assigned rating is, however, constrained by the company's nascent
stage of operation; thin margins as inherent in the cotton ginning
industry, and their susceptibility to the movements in cotton
prices; the dynamic regulatory environment; and the working
capital intensive nature of the business, along with debt funded
capex resulting in stretched capital structure and liquidity
profile for the company. Maintaining healthy capacity utilization,
while maintaining volatile raw material prices, will remain key
sensitivity factors going forward.
KCPL was incorporated by Mr. Dyneshwar Bhamre, Mr. Shivraj Patil
and Mr. Raviraj Patil in 2009. The ginning and pressing unit
commenced from October 2012. The company has a ginning and
pressing unit at Dhule, Maharashtra, with an installed capacity of
165,000 quintals and 55,000 quintals per annum, respectively.
KHOSLA ENG'G: ICRA Reaffirms 'B+' Rating on INR30cr Loans
---------------------------------------------------------
ICRA has reaffirmed the rating of '[ICRA]B+' to the INR12.00 crore
term loan and INR18.00 crore cash credit facilities of Khosla
Engineering Private Limited. ICRA has also reaffirmed the rating
of '[ICRA]A4' to the INR5.00 crore non fund based bank facilities
of KEPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term, Fund
based limits-
Cash Credit 18.00 [ICRA]B+ reaffirmed
Long Term, Fund
based limits-
Term Loan 12.00 [ICRA]B+ reaffirmed
Short Term, Non
fund based limits 5.00 [ICRA]A4 reaffirmed
The ratings continue to reflect KEPL's leveraged capital structure
and weak debt coverage indicator on account of debt funded capital
expenditure and erosion of net worth due to losses in FY13. The
ratings are also constrained by KEPL's limited bargaining power
against large customers. The company has modest scale of
operations however with recent expansion of manufacturing
facility; the scale is expected to improve going forward. The
company has incurred net losses in FY13 due to stabilization
issues in commercialization of expanded capacity though the same
has stabilized in current fiscal. The ratings however draw comfort
from KEPL's reputed clientele and financial flexibility provided
by being part of Kothari group. The ratings also favourably factor
KEPL's conservative policy of order backed raw material
procurement, which protects profitability in case of adverse
commodity price movement. The company has long term purchase
contract with the suppliers with monthly price setting which
ensures stable supply of raw material.
Incorporated in 1966, KEPL is engaged in the manufacture of solder
wires, zinc wires and aluminium wires. KEPL has established
relationships with domestic zinc and tin suppliers, which ensures
stable raw material supplies. KEPL supplies zinc wires to reputed
domestic Ductile Iron (DI) pipe manufacturers, while solder wires
are sold to leading electronic component manufacturers across
India. The manufacturing facilities of the company are located at
Dhandore (near Pune) in Maharashtra.
M.G.B. MOBILES: CRISIL Cuts Rating on INR130MM Loans to 'B+'
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of M.G.B. Mobiles to 'CRISIL B+/Stable' from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
Long Term Loan 30 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects the deterioration in MGB's
liquidity, with its depressed cash accruals expected to tightly
match its term debt obligations maturing over the medium term.
CRISIL believes that MGB will need fresh capital infusion from its
promoters, or will have to register a substantial improvement in
its cash accruals, to alleviate the pressure on its liquidity.
MGB's revenues are expected to register a year-on-year decline of
around 7.0 per cent in 2013-14 (refers to financial year, April 1
to March 31) resulting in depressed cash accruals of around INR10
million. Although the company is expected to register moderate
growth in its revenues in 2014-15, while maintaining its
profitability margins, the cash accruals of the firm would be
tightly matched with its annual term debt obligations of around
INR10 million a year over the medium term.
The rating reflects MGB's below-average financial risk profile
marked by its modest net worth, high total outside liabilities to
tangible net worth ratio and below-average debt protection
metrics. The rating also factors in the company's exposure to
economic cyclicality and intense competition in the automotive
dealership industry. These rating weaknesses are partially offset
by the firm's established regional presence in the automotive
dealership market, its efficient working capital management and
low exposure to inventory and debtor risks, and its established
relationship with its principal - Mahindra & Mahindra Ltd (M&M).
Outlook: Stable
CRISIL believes that MGB will continue to benefit over the medium
term from its established relationship with its principal, and its
promoters' extensive experience in the automobile dealership
market. The outlook may be revised to 'Positive' in case of
substantial increase in the firm's revenues and profitability
margins, or a significant improvement in its liquidity supported
by equity infusion by promoters. Conversely, the outlook may be
revised to 'Negative' in case of a steep decline in the firm's
profitability margins, or substantial deterioration in its
financial risk profile most likely because of a stretch in its
working capital cycle or large debt-funded capital expenditure.
MGB was established as a partnership firm in 2003 by Mrs. M Usha
Raghunath and her sons. The firm is an authorised dealer in
passenger cars and light commercial vehicles of M&M and Mahindra
Navistar Automotives Ltd. The firm also sells automobile spare
parts and services passenger and light commercial vehicles.
NIRMAL INT'L: CRISIL Reaffirms 'B' Rating on INR10.5MM Loans
------------------------------------------------------------
CRISIL's ratings on the bank facilities of Nirmal International
continue to reflect Nirmal's weak financial risk profile, marked
by small net worth and weak debt protection metrics, small scale
of operations, susceptibility to intense competition, and large
working capital requirements. These rating weaknesses are
partially offset by the extensive experience of Nirmal's
management in the textile industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Discounting 40 CRISIL A4 (Reaffirmed)
Cash Credit 5 CRISIL B/Stable (Reaffirmed)
Packing Credit 25 CRISIL A4 (Reaffirmed)
Rupee Term Loan 5.5 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Nirmal will continue to benefit over the
medium term from the extensive industry experience of its
promoter. The outlook may be revised to 'Positive' in case
Nirmal's scale of operations and profitability improve
considerably, leading to substantial cash accruals. Conversely,
the outlook may be revised to 'Negative' in case Nirmal's
financial risk profile, particularly liquidity, deteriorates
because of larger-than-expected working capital requirements,
debt-funded capital expenditure plan, or large capital withdrawals
by the promoter.
Set up in 1998, Nirmal is a proprietorship firm, manufacturing
handmade and machine-made carpets, bath mats, rugs, and cushion
covers. The firm derives almost 90 per cent of its total revenues
from exports to Europe, South Africa, and the Middle East. The
firm has a manufacturing unit in Panipat (Haryana).
PARAKH OILS: ICRA Reaffirms 'B+' Rating on INR2cr Term Loan
-----------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to INR2.00 crore
(reduced from INR6.00) crore term loan facilities of Parakh Oils
Limited at [ICRA]B+. ICRA has also reaffirmed the short term
rating assigned to the INR10.00 crore short term non fund based
facilities of POL at [ICRA]A4.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 6.00 [ICRA]B+ Withdrawn
Term Loan 2.00 [ICRA]B+ Reaffirmed
Letter of Credit 10.00 [ICRA]A4 Reaffirmed
ICRA has also withdrawn the [ICRA]B+ rating assigned to the
INR6.00 crore cash credit facilities of POL. The facility has been
repaid and there is no amount outstanding with respect to the
same.
The reaffirmation of ratings favourably factor in the long
standing experience of the promoters in the agro processing
industry, continued financial support from the promoters and the
robust revenue growth posted during the FY 13 aided by the
established distribution network of the group in western India.
The ratings however, remain constrained by the weak financial
profile owing to losses incurred over the years resulting in
erosion of net worth completely, low value add nature of
operations in a highly competitive and fragmented industry and the
susceptibility of operations to the vagaries of the agro climatic
conditions in the country.
POL is a Pune based company mainly engaged in the manufacturing of
agro based products like Pulses and selling them in domestic
market. The company markets the products under brand name
'Samrat', 'Sudarshan' and 'Anand'. The company was historically
operating as an oil extraction unit; however the promoters had
decided to close the division and starting from 2008 it is engaged
in the current line of business. Total capacity of the dal mill is
100 MTPD.
PAIL is a Pune based company incorporated in 1987. It is mainly
engaged in the manufacturing of agro based products like Gram
flour (Besan), Wheat flour (atta, maida, and suji), Pulses (Chick
Pea, Tur dal, Peas dal, Moong, Urad) and selling them in domestic
market. The company markets its wheat and gram flour products
under brand name 'SAMRAT'. PAIL has also set up a flexible
packaging plant catering mainly to packaging of food products
(edible oil/ghee pouches, milk pouches, etc). Further the company
has installed Wind mills at Dhule (6 turbines) with total capacity
of 8.3 MW.
Recent Results
POL has reported net loss of INR0.04 crore in FY13 on an operating
income of INR73.7 crore and a net loss of INR0.3 crore in 6M FY 14
on an operating income of INR33.8 crore.
PERIYAR CEMENTS: CRISIL Reaffirms 'D' Rating to INR53MM Loans
-------------------------------------------------------------
CRISIL has reaffirmed its 'CRISIL D' rating to the bank facilities
of Periyar Cements Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 10 CRISIL D (Reaffirmed)
Long Term Loan 43 CRISIL D (Reaffirmed)
The rating continues to reflect instances of delays by PCPL in
servicing its term debt obligations; the delays have been caused
by weak liquidity.
PCPL also has a below-average financial risk profile, marked by
weak debt protection metrics and weak capital structure, and large
working capital requirements. However, the company benefits from
the promoter's extensive industry experience.
Incorporated in 2010, PCPL manufactures cement and sand. Promoted
by Mr. Staisan Davis, the commercial operations commenced during
October 2012.
For 2012-13 (refers to the financial year, April 1 to March 31)
PCPL reported a net loss of INR9.7 million on net sales of INR23.6
million.
PILANIA STEELS: CRISIL Cuts Rating on INR75MM Loan to 'B'
---------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Pilania Steels Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The rating downgrade reflects the deterioration in PSPL's business
risk profile because of lower-than-expected revenue growth,
decline in operating margin and a stretched working capital cycle.
The company's business risk profile deteriorated in 2012-13
(refers to financial year, April 1 to March 31); it recorded a
flat sales growth with revenue of around 241.7 million while its
operating margin declined by 140 basis points (bps; 100 bps equals
one percentage point) to 5.0 per cent in 2012-13 This has resulted
in lower than expected accretion to reserves, weak debt protection
metrics and below-average interest coverage ratio. The company's
operations remain working capital intensive as reflected by high
gross current asset (GCA) of around 165 days as on March 31, 2013.
The rating also reflects PSPL's exposure to risks related to the
highly competitive and fragmented steel industry, resulting in low
operating margin, and its below-average financial risk profiles
marked by high gearing and small net worth. These rating
weaknesses are partially offset by the extensive experience of
PSPL's promoters in the steel industry.
Outlook: Stable
CRISIL believes that PSPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm significantly
scales up its operations and improves its profitability, leading
to better financial risk profile. Conversely, the outlook may be
revised to 'Negative' in case PSPL's financial risk profile
deteriorates on account of larger-than-expected debt-funded
working capital requirements or pressure on profitability or the
company undertakes any debt-funded capital expenditure programme.
PSPL was incorporated in August 1995 by Mr. Kailash Agarwal and
Mr. Ram Bhagat Agarwal. The company manufactures binding wires of
0.9 to 1.0 millimetre (mm) in diameter from wire rods measuring
5.0 to 5.5 mm in diameter. PSPL's manufacturing facility is in
Bhilai (Chhattisgarh).
PRATEEK APPARELS: ICRA D Rating on INR93.43cr Loans Outstanding
---------------------------------------------------------------
ICRA has rating outstanding of '[ICRA]D' on the INR62.43 crore
(revised from INR70.00 crore) long term fund based facilities of
Prateek Apparels Private Limited. ICRA also has rating outstanding
of '[ICRA]D' on the INR25.00 crore (revised from INR30.00 crore)
short term fund based facilities and the INR6.00 crore short term
non-fund based facilities of PAPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long Term Fund 62.43 [ICRA]D (revised from
based facilities INR70.00 crore)
Short Term Fund 25.00 [ICRA]D (revised from
based facilities INR30.00 crore)
Short Term Non-
fund based facilities 6.00 [ICRA]D
The ratings factor in the delays in debt servicing by the Company
owing to weak liquidity position. The Company has witnessed
significant inventory build up over the last few quarters thereby
straining its cash flows. PAPL's inventory period remained high at
180 days during 2012-13 indicative of low inventory turnover;
thereby adversely impacting its liquidity position.
Incorporated in 1995, PAPL is engaged in the businesses of making
readymade garments, retailing apparels and trading in fabric.
Promoted by Mr. Pradeep Aggarwal and the Phulchand Group, PAPL has
five manufacturing units in Karnataka. The Company largely makes
men's and women's formal and casual wear. The Company entered
retail operations in 2007 through its subsidiary Prateek Lifestyle
Limited, which was merged in PAPL in 2009. It operates through two
retail formats, namely, 'Coupon' stores (which are large-format
discount stores) and 'F-Square' stores (which are small-format
stores selling in-house brands). PAPL has more than 12 'Coupon'
stores across India and 45 'F-Square' stores in Karnataka.
The Company has two subsidiaries namely, Munch Design Workshop
Private Limited (which provides design solutions for PAPL) and
Prateek Spintex Limited (which manufactures knitted garments for
PAPL). PAPL also has floated a new entity 'Bilteek Fashions Pvt
Ltd' which is a 50:50 JV with a turkey based ready made garment
manufacturing company, Bilasar AS in 2011-12.
Recent results
During 2012-13, PAPL reported a net profit of INR0.8 crore on an
operating income of INR313.7 crore as against a net profit of
INR2.5 crore on an operating income of INR377.5 crore during 2011-
12.
SAMRAT SEA: ICRA Assigns 'C+' Rating to INR11cr Loans
-----------------------------------------------------
ICRA has assigned an '[ICRA]C+' rating to the INR11.00 crore long-
term fund-based facilities of Samrat Sea Brines Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 5.40 [ICRA]C+ assigned
Cash Credit 2.75 [ICRA]C+ assigned
Unallocated limits 2.85 [ICRA]C+ assigned
The assigned rating is constrained by the start up nature of the
company and its relatively modest scale of operations; company's
exposure to seasonality associated with the salt business; intense
competitive pressures from numerous organized and unorganized
players and high working capital intensive nature of operations.
The rating is further constrained by the predominantly debt funded
nature of the project which is likely to result in stretched
capital structure in near term. ICRA notes that the future cash
flows of the company would be contingent on the market acceptance
of the product, successful scale up of operations and the
company's pricing ability.
The rating, however, favourably factors in the long standing
experience of promoters in salt industry through other group
concerns; location advantage enjoyed by the company on account of
being based out of Patan district in Gujarat and its proximity to
Railway station which offers ease of transportation of finished
goods.
Incorporated in September 2011, Samrat Sea Brines Private Limited
started commercial operations from November, 2012 and is engaged
in manufacturing of refined and free flow iodized salt. The
company's manufacturing unit is located at Santalpur(District-
Patan), Gujarat. The promoters and directors have past experience
in salt manufacturing/ trading owing to their association in other
concerns engaged in similar operations.
SATYAWATI SUBODH: ICRA Reaffirms 'B-' Rating on INR12.45cr Loan
---------------------------------------------------------------
ICRA has reaffirmed '[ICRA]B-' rating for INR12.45 crore term
loans of Satyawati Subodh Foundation Trust.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 12.45 [ICRA]B- Reaffirmed
The rating reaffirmation factors in the low number of admissions
done in SSFT's Sri Ram Centennial school for the first academic
session, and still existing high market risk due to significant
competition from already established and reputed schools in its
vicinity; the rating also takes into account high project risk as
the school is still under-development. Further, considering the
low number of admissions for the academic year 2014-15, ICRA
expects SSFT's operational cash flows to be inadequate to meet
interest obligations and will remain dependent on its trustees for
timely servicing of debt. Moreover, with the moratorium period
getting over now, the principal payments will put additional
burden on the trust's cash flows. The rating, however, derives
comfort from trustees' long experience in the education sector,
attractive location of the school in Dayalbagh area of Agra (Uttar
Pradesh), and SSFT's competitive fee structure.
Going forward, fast ramp-up in admissions and prompt funding of
cash shortfalls in the initial years would be key rating
sensitivities.
SSF is a society registered on 13th January, 2012 under The
Societies Registration Act, 1880. The society, in association with
Shri Ram Education Trust currently operates a pre-school in Agra
(Uttar Pradesh). The society is building a senior secondary
school, Shri Ram Centennial School, at Dayalbagh, Agra. The school
will be completed in three phases. The first phase will consist of
classes from Nursery to Class VI, 2nd phase will consist of
classes from VII to X and 3rd phase will be for classes XI & XII.
The project cost is INR~17.5 crore, out of which the trust has
spent approximately INR~10 crore.
Recent Results
In FY2013, Satyawati Subodh Foundation Trust (SSFT) reported
operating income of INR0.18 crore and net loss of INR0.57 crore.
SHIPRA AGRICHEM: ICRA Cuts Rating on INR13cr Loans to 'D'
---------------------------------------------------------
ICRA has revised the long-term rating assigned to the INR10.00
crores term loan and INR3.00 crore fund based facility of Shipra
Agrichem Private Limited to [ICRA]D from [ICRA]B. Further, ICRA
has suspended the ratings assigned to all the above bank
facilities of SAPL. The suspension follows ICRA's inability to
carry out a rating surveillance in the absence of the requisite
information from the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term loan 10.00 Downgraded to [ICRA]D
from [ICRA]B; Suspended
Cash Credit 3.00 Downgraded to [ICRA]D
from [ICRA]B; Suspended
The rating revision follows significant deterioration in the
liquidity position of the company leading to delay in debt
servicing.
According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information to
assess such rating during the surveillance exercise.
Incorporated in 2008, Shipra Agrichem Private Limited is promoted
by Mr. Pradeep Nair and Mrs. Pinkal Nair. SAPL proposes to
manufacture sebacic acid (manufactured from castor oil) with an
installed capacity of 1500 TPA. Apart from this, it also proposes
to market HCO with an installed capacity 3500 TPA, HMR with an
installed capacity 3430 TPA, Methyl DCO with an installed capacity
1500 TPA, and C-10 Diamine with an installed capacity 1500 TPA.
SAPL's manufacturing facility is planned to be located at village
Luna, near Vadodara and commercial production is expected to start
from April 2012.
SRIPATHY ASSOCEATES: CRISIL Reaffirms B Rating on INR200MM Loan
---------------------------------------------------------------
The ratings on the bank facilities of Sripathy Assoceates continue
to reflect Sripathy's large working capital requirements and the
susceptibility of its operating margin to volatility in raw
material prices; the ratings also factor in the firm's small scale
of operations in the construction industry. These rating
weaknesses are partially offset by the benefits that Sripathy
derives from its partners' extensive experience in the
construction industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 200 CRISIL A4 (Reaffirmed)
Cash Credit 200 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that Sripathy will continue to benefit over the
medium term from its partners' extensive industry experience. The
outlook may be revised to 'Positive' if the firm's liquidity
improves in a sustained manner, supported by improvement in its
working capital cycle or generation of higher-than-expected cash
accruals. Conversely, the outlook may be revised to 'Negative' if
Sripathy's financial risk profile deteriorates because of large
debt-funded capital expenditure or capital withdrawal from the
firm by its partners.
Update
Sripathy booked an operating income of INR 730 million in 2012-
13 (refers to financial year, April 1 to March 31), which declined
compared to the previous year due to slowdown in the construction
sector. However, Sripathy had booked an operating income of INR
908 million till December 2013 and is expected to maintain its
improved operating performance over the medium term supported by
its healthy order book. The operating profitability of the firm
improved to 11.3 per cent in 2013-14 from 8.8 per cent due to
execution of certain high-margin orders. The operating
profitability is expected to remain moderate over the medium term.
Sripathy's financial risk profile remains moderate, marked by
moderate capital structure and above-average interest coverage
ratio. The firm had a net worth of INR146 million and gearing of
0.86 times as on March 31, 2013. Though gearing is expected to
deteriorate over the medium term due to the firm's incremental
working capital requirement, it is expected to remain below 1.50
times. The firm's interest coverage ratio is expected to remain
above average, supported by its moderate cash accruals.
Sripathy's liquidity is stretched, marked by fully utilised bank
limits. However, the firm is expected to generate cash accruals of
around INR35 million, which will remain sufficient as against its
hire purchase loan obligations.
Sripathy was set up as a partnership firm in 1989 at Erode (Tamil
Nadu). The firm undertakes civil contracts involving construction
of colleges, buildings, and roads, primarily for government
departments.
TIRUPATI COTTON: ICRA Reaffirms 'B+' Rating on INR25cr Loans
------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B+' rating for the INR25.00 crore
(enhanced from INR20.00 crore) fund-based cash credit facility of
Tirupati Cotton.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit Limit 20.00 [ICRA]B+ reaffirmed
Proposed-Cash Credit
limit 5.00 [ICRA]B+ reaffirmed
The rating continues to be constrained by the modest scale of
operation as well as weak financial profile of Tirupati Cotton as
reflected by moderate gearing and weak coverage indicators. The
rating is further constrained by the lack of diversification in
product profile. Limited value addition and highly competitive and
fragmented industry structure leads to low operating and net
margins. Further the ratings also incorporate the susceptibility
of the cotton prices to seasonality and regulatory risks which
together with the highly competitive industry environment exerts
more pressure on the margins.
ICRA also notes that Tirupati Cotton is a partnership firm and any
significant withdrawals from the capital account will affect its
net worth and thereby the gearing levels.
The rating, however, favorably take into account the long standing
experience of promoters in the cotton cultivation and processing
industry which ensures procurement benefits and favorable location
of the firm.
Tirupati Cotton was incorporated as partnership firm in 2007 and
is engaged in ginning & pressing of raw cotton to produce cotton
seeds and pressed cotton bales. The ginning unit of the firm is
located at Shapar, Rajkot and is equipped with 30 ginning machines
and 1 pressing machine with total installed capacity of 300 bales
per day. The firm mainly deals in S-6 type of cotton.
Recent Results
For the year ended 31st March, 2013, the firm reported an
operating income of INR109.63 crore with profit after tax (PAT) of
INR0.50 crore.
VALIA IMPEX: CRISIL Reaffirms 'B' Rating on INR200MM Loans
----------------------------------------------------------
CRISIL's ratings on the bank facilities of Valia Impex Pvt Ltd
continue to reflect VIPL's below-average financial risk profile
marked by its small net worth, high total outside liabilities to
tangible net worth ratio and below-average debt protection
metrics, and high degree of customer concentration in its revenue
profile. These rating weaknesses are partially offset by the
company's established track record as a distributor of polymers
for Reliance Industries Ltd (RIL), the benefits it derives from
its promoter's extensive experience in polymer distribution
business, and its adequate risk management policies.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 80 CRISIL A4 (Reaffirmed)
Bill Discounting 577.5 CRISIL A4 (Reaffirmed)
Channel Financing 190 CRISIL B+/Stable (Reaffirmed)
Overdraft Facility 10 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that VIPL will continue to benefit over the medium
term from its promoters extensive industry experience and its
long-standing relations with customers. The outlook may be revised
to 'Positive' if there is a significant and sustained improvement
in the company's scale of operations, while it maintains its
profitability margins, or there is a substantial increase in its
net worth backed by equity infusion from its promoters.
Conversely, the outlook may be revised to 'Negative' in case of a
steep decline in VIPL's profitability margins, or there is
deterioration in its capital structure on account of larger-than-
expected working capital requirements.
VIPL was promoted in 1989 by Mr. Balkrishna Valia and his son, Mr.
Bhavesh Valia. VIPL is a del credere agent for RIL, and supplies
polymers in Maharashtra, Goa, Daman (Union Territory of Daman and
Diu), and Silvassa (Union Territory of Dadra and Nagar Haveli).
The company is currently managed by Mr. Bhavesh Valia and his
family members.
VIHAAN BOARDS: CRISIL Cuts Rating on INR190MM Loans to 'D'
----------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Vihaan Boards Pvt Ltd to 'CRISIL D' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50.1 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 7.4 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
Term Loan 132.5 CRISIL D (Downgraded from
'CRISIL B+/Stable')
The downgrade reflects the delays by VBPL in servicing its term
debt driven by weak liquidity. Weak liquidity has been caused by
eight months' delay in the commissioning of the new plant. The
company's term debt repayments started in April 2013 while the
plant started operations in May 2013, resulting in low operational
cash flows for debt servicing.
CRISIL believes that VBPL's liquidity will remain weak over the
medium term on account of the startup nature of operations and
yet-to-stabilise operations.
VBPL also has an average financial profile and modest scale of
operations. These rating weaknesses are partially offset by the
promoters' extensive experience in the wood-panel and related
industries.
VBPL, incorporated in 2011, is promoted by Mr. Bharat Surana, Mr.
Chattar Surana, and Mr. Gaurav Dewan. The company has set up a
facility in Moradabad (Uttar Pradesh) in May 2013 to manufacture
particle boards, which are used in furniture and in the
construction industry.
YOGESH INDUSTRIES: CRISIL Reaffirms B+ Rating on INR97MM Loans
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Yogesh Industries
continues to reflect YI's below-average financial risk profile,
marked by high gearing, and its small scale of operations in a
highly fragmented industry. These rating weaknesses are partially
offset by the extensive experience of YI's promoters.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Reaffirmed)
Long Term Loan 7 CRISIL B+/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 10 CRISIL B+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that YI will continue to benefit over the medium
term from its management's extensive industry experience. The
outlook may be revised to 'Positive' if the firm's revenue and
profitability increase substantially or in case of significant
infusion of capital leading to improvement in its financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
the firm undertakes aggressive, debt-funded expansion, or if its
revenue and profitability decline substantially, or if the
promoters withdraw a large amount of capital from the firm leading
to deterioration in its financial risk profile.
Set up in 2007, YI is engaged in ginning and pressing of raw
cotton and sells cotton lint, cotton seed oil, and cotton
byproducts. The firm has been promoted by Mr. Om Prakash Ladda and
his family members.
YI reported profit after tax (PAT) of INR1 million on net sales of
INR592.5 million for 2012-13 as against PAT of INR1.7 million on
net sales of INR435.2 million for 2011-12.
=========
J A P A N
=========
MT. GOX: Says It Has Found Missing Bitcoin Worth About $116MM
-------------------------------------------------------------
Rachel Abrams, writing for The New York Times' DealBook, reported
that the seemingly miraculous discovery of about $116 million in
missing Bitcoin, or 200,000 coins, underscored the rickety early
infrastructure that the digital currency is still trying to
overcome.
According to the report, in a posting on its website in both
Japanese and English, the now-defunct Bitcoin exchange Mt. Gox
announced that it had found the coins in an "old-format wallets,"
the virtual currency equivalent of finding money in another pair
of pants.
In its statement from its chief executive, Mark Karpeles, the
company said that after it filed for bankruptcy, it began
researching the wallets that were used before June 2011, the
report related. That, the company said, is when it discovered the
coins, which represent about 24 percent of the coins that were
missing when the site failed.
Last month, Mt. Gox said it had lost 750,000 of its Bitcoin
customers' holdings and more than 100,000 of its own coins --
essentially its entire stock of Bitcoin, worth more than $450
million, the report further related. The found coins are worth
about $116 million based on today's rate of $578, according to the
online Bitcoin index CoinDesk.
"I think that it's yet another illustration of how incompetently
managed that hobbyist operation was," Gil Luria, a managing
director at Wedbush Securities who has written about Bitcoin, told
the DealBook. "That you can lose that much Bitcoin and then find
it tells you that we're not talking about robust levels of
security and control."
About Mt. Gox
Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan. The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."
The Japanese bitcoin exchange that halted trading in February
2014. It filed for bankruptcy protection in the U.S. to prevent
customers from targeting the cash it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer. Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at BAKER & MCCKENZIE LLP, in Dallas, Texas.
The company said it has estimated assets of $10 million to $50
million and debts of $50 million to $100 million.
MT. GOX: Plaintiffs File Plan to Retrieve Crypto-Currency
---------------------------------------------------------
Ben Kesling, writing for The Wall Street Journal, reported that
plaintiffs who have sued defunct bitcoin exchange Mt. Gox have
launched an elaborate plan to get some of their crypto-currency
back after gaining court approval.
According to the report, a federal judge signed off on the
proposal to find hidden assets of the Mt. Gox chief executive Mark
Karpeles, after an unusual court hearing that included calling for
testimony from the public in attendance.
"It's kind of like a sting," said U.S. District Judge Gary
Feinerman, with a grin, as lawyers presented their plan to trace
what they allege are illegal transfers of bitcoin by Tokyo-based
Mt. Gox's CEO, Mark Karpeles, the report cited. Mr. Karpeles
didn't respond to an e-mailed request for comment.
Mt. Gox collapsed in February after 850,000 bitcoins valued at
more than $500 million at current prices were lost from its
digital coffers, the report related. Judge Feinerman ordered Mr.
Karpeles's U.S. assets frozen a little more than a week ago.
About Mt. Gox
Bitcoin exchange MtGox Co., Ltd., filed a petition under Chapter
15 of the U.S. Bankruptcy Code on March 9, 2014, days after the
company sought bankruptcy protection in Japan. The bankruptcy in
Japan came after the bitcoin exchange lost 850,000 bitcoins valued
at about $475 million "disappeared."
The Japanese bitcoin exchange that halted trading in February
2014. It filed for bankruptcy protection in the U.S. to prevent
customers from targeting the cash it holds in U.S. bank accounts.
The Chapter 15 case is In re MtGox Co., Ltd., Case No. 14-31229
(Bankr. N.D. Tex.). The Chapter 15 Petitioner is Robert Marie
Mark Karpeles, the company's chief executive officer. Mr.
Karpeles is represented by John E. Mitchell, Esq., and David
William Parham, Esq., at BAKER & MCCKENZIE LLP, in Dallas, Texas.
The company said it has estimated assets of $10 million to $50
million and debts of $50 million to $100 million.
===========
T A I W A N
===========
CHINA BILLS: Fitch Affirms Support Rating Floor at 'B+'
-------------------------------------------------------
Fitch Ratings has affirmed Taiwan-based China Bills Finance
Corporation's (CBF) Long-Term Issuer Default Rating (IDR) at
'BBB'. The Outlook is Stable. The other ratings on the company
have also been affirmed.
Key Rating Drivers - IDRs, National Ratings and VRs
The affirmation reflects CBF's strong franchise in the Taiwanese
bills finance sector, sound asset quality and adequate
capitalisation. The ratings are tempered by sector-wide
structural issues, including limited business scope, a business
model that is reliant on wholesale funding, and susceptibility to
sharp changes in interest rates.
Fitch believes CBF's spread revenue and trading gains are likely
to remain constrained in the current low interest rate
environment. CBF reported modest earnings growth for 9M13, with
annualised return on equity at 7.7%, aided by a one-off recovery
and increased guarantee volumes. CBF's modest guarantee/equity
ratio of 3.7x at end-2013 suggests a moderate appetite for credit
risk. It has low impaired exposures (end-2013: 0% of total
guarantees) and is protected by a comfortable provision coverage.
CBF actively manages its liquidity and funding. It moderates
potential funding risk by using high-quality securities as
collateral against repurchase and maintaining large and stable
bank lines. Fitch expects CBF to maintain a sound capital profile
commensurate with its risk exposure. Its Fitch Core Capital ratio
has been stable and stood at around 13.8% at end-2013.
Rating Sensitivities - IDRs, National Ratings and VRs
CBF's ratings have limited upside potential because of the
structural constraints on its business model. Weakened loss
absorption capacity reflected in any notable decline in its equity
base and/or capitalisation would lead to a downgrade. Any
deterioration in asset quality, possibly from excessive risk-
taking, could also lead to negative rating action. That said,
Fitch views both scenarios as unlikely in the near term.
A merger with its largest shareholder, Industrial Bank of Taiwan,
is likely to have a negative impact on CBF's ratings, because the
latter has a weaker risk profile. Such a merger appears
increasingly likely over the next two years.
Key Rating Drivers And Sensitivities - SR and SRF
CBF's Support Rating (SR) and Support Rating Floor (SRF) reflect
the limited probability of government support, if needed. The SR
and SRF are potentially sensitive to changes in assumptions around
the propensity or ability of government to provide timely support
to CBF. This would most likely be manifested in a change to
Taiwan's sovereign rating (A+/Stable).
Established in 1978, CBF is Taiwan's third-largest bills finance
company, with a 17.9% of market share of guarantees at end-2013.
The full list of rating actions follows:
Long-Term IDR affirmed at 'BBB'; Outlook Stable
Short-Term IDR affirmed at 'F3'
National Long-Term Rating affirmed at 'A+(twn)'; Outlook Stable
National Short-Term Rating affirmed at 'F1(twn)'
Viability Rating affirmed at 'bbb'
Support Rating affirmed at '4'
Support Rating Floor affirmed at B+'
*********
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
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thereof are US$25 each. For subscription information, contact
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*** End of Transmission ***