/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/141027.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, October 27, 2014, Vol. 17, No. 212 Headlines A U S T R A L I A ALL CABINETS: First Creditors' Meeting Set For November 3 AUSDRILL LTD: S&P Affirms ICR at 'BB-' & Revises Outlook to Neg. CAVALLARO CAKE: First Creditors Meeting Slated For Nov. 3 MNG INVESTMENTS: In Administration; 1st Meeting Set For Nov. 3 YAKKA MUNGA: Buru Energy Buys Pastoral Station C H I N A CHINA AUTO: Receives Nasdaq Listing Non-Compliance Notice HIDILI INDUSTRY: S&P Raises CCR to 'CCC-'; Outlook Negative LDK SOLAR: Commences Chapter 11 & Chapter 15 Cases in U.S. Court I N D I A GUPTA METAL: CARE Upgrades Rating on INR50.48cr Bank Loan to 'B' TATA MOTORS: Moody's Rates Proposed Sr. Unsecured Notes (P)Ba2 TATA MOTORS: S&P Assigns 'BB' Rating to Prop. Unsec. Notes Issue J A P A N ARYSTA LIFESCIENCE: S&P Puts 'B' CCR on CreditWatch Positive M A L A Y S I A STAR CITY: 3 Parties Vie to Rescue Mall N E W Z E A L A N D CHRISTCHURCH YARNS: NZ Yarn Buys Firm Out of Receivership QUEENSTOWN MARINA: Owes NZ$1.33MM, Liquidator's Report Shows TERRY SEREPISOS: Discharged From Bankruptcy VINCENT AVIATION: Goes Into Receivership P H I L I P P I N E S MANDARIN SKYFOOD: Tax Department Shuts Down Makati Restaurant S O U T H K O R E A DONGBU GROUP: Hyundai Steel Tapped as Prime Bidder For Unit MONEUAL INC: Creditor Banks Hit Hard by Firm's Receivership - - - - - ================= A U S T R A L I A ================= ALL CABINETS: First Creditors' Meeting Set For November 3 --------------------------------------------------------- Kimberley Stuart Wallman -- kwallman@hlbinsol.com.au -- of HLB Mann Judd (Insolvency WA) was appointed as administrator of All Cabinets (WA) Pty Ltd on Oct. 23, 2014. A first meeting of the creditors of the Company will be held at Ground Floor, 15 Rheola Street, in West Perth, West Australia, on Nov. 3, 2014, at 10:00 a.m. AUSDRILL LTD: S&P Affirms ICR at 'BB-' & Revises Outlook to Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised its outlook on the issuer credit rating on Australian mining services provider Ausdrill Ltd. (Ausdrill) to negative, from stable. At the same time, S&P affirmed its 'BB-' issuer credit rating on Ausdrill. S&P also affirmed the 'BB-' rating and recovery rating of '4' on Ausdrill's senior unsecured debt, and 'BB+' rating and recovery rating of '1' on its senior secured debt. Ausdrill's debts are issued by its financing subsidiaries, Ausdrill Finance Pty Ltd. and Ausdrill International Pty Ltd. "The negative outlook reflects our view that Ausdrill's credit metrics are likely to be at the bottom-end of our expectations for the 'BB-' rating based on the company's recent lower earnings guidance for fiscal 2015," Standard & Poor's credit analyst Minh Hoang said. "We expect management's continued effort in reducing costs and discretionary capital expenditure will support the company's financial profile. Nevertheless, we believe that subdued conditions for the mining services industry, combined with negligible financial buffer at its current rating, places Ausdrill at a heightened risk of a downgrade." On Oct. 20, 2014, Ausdrill announced a reduction in its earnings guidance for the year ending June 30, 2015. It cited that ongoing price weakness in the key commodities of iron ore and gold has directly affected its clients. As a result, Ausdrill's business has reduced: its contract with Western Desert Resources ceased after the company was placed into voluntary administration, and its contract at Edna May Gold Mine is terminating early and will conclude in Dec. 2014. Exacerbating the expected deterioration in Ausdrill's operating performance are: -- The continued underperformance of its energy drilling business, which continues to post operating losses; -- Adverse weather conditions experienced in the first quarter of 2014 in its contracting mining business in West Africa; and -- Further underperformance experienced by its AUMS joint venture in the first quarter of 2014. Overall demand for Ausdrill's services is falling amid challenging industry conditions. Soft underlying commodity prices have led to lower mining investment, broader cost reduction measures, elevated counterparty risk, and the cancelation of some higher-cost projects. In S&P's view, this has heightened Ausdrill's cash flow volatility and cut its earnings. Ausdrill's reported revenue declined by 27% for fiscal 2014 and its EBITDA reduced by more than 30%. Its financial ratios remained outside of the company's financial policies for fiscal 2014, and S&P considers the current operating environment will result in a slower recovery than the company's expectations. At the 'BB-' rating, S&P expects financial metrics of funds from operations (FFO)-to-debt of greater than 30% and free operating cash flow (FOCF)-to-debt of greater than 5%. S&P also expect Ausdrill to take appropriate steps to refinance its revolving facilities that will mature in the second half of 2015. S&P could lower the rating to 'B+' should Ausdrill's earnings be weaker than S&P's expectations, or if the company is unable to control capital expenditure or dividend payments such that its FFO-to-debt falls to less than 30% or FOCF-to-debt reduces to less than 5%. Mr. Hoang added: "A downgrade could also occur should there be a material change in the company's business risk profile that may be driven by a sizable increase in its exposure to volatile African countries or an increasing exposure to lower credit quality counterparties. Any delay in refinancing its maturing facilities may also be a trigger for a downgrade." The likelihood of an upgrade is remote. However, S&P could revise the outlook to stable if: -- Remedial actions were taken to restore Ausdrill's credit metrics with sufficient headroom, including FFO-to-debt of comfortably greater than 30%; -- S&P believes cash flow volatility has diminished; and -- The company demonstrates a track record of securing profitable production-based contracts. CAVALLARO CAKE: First Creditors Meeting Slated For Nov. 3 --------------------------------------------------------- Mitchell Ball -- mitchellb@bpsrecovery.com.au -- of BPS Recovery was appointed as administrator of Cavallaro Cake Works Pty Ltd on Oct. 22, 2014. A first meeting of the creditors of the Company will be held at BPS Recovery, Level 18, 201 Kent Street, in Sydney, on Nov. 3, 2014, at 10:30 a.m. MNG INVESTMENTS: In Administration; 1st Meeting Set For Nov. 3 -------------------------------------------------------------- Steven Gladman and David Ingram of Hall Chadwick were appointed as administrators of MNG Investments Pty Limited on Oct. 22, 2014. A first meeting of the creditors of the Company will be held Studio Room 1, QT Canberra, 1 London Circuit, in Canberra, on Nov. 3, 2014, at 11:00 a.m. YAKKA MUNGA: Buru Energy Buys Pastoral Station ---------------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Buru Energy, an oil and gas company, has purchased Yakka Munga pastoral station. In August, the station was listed for sale following the appointment of receiver KordaMentha, the report says. The 190,000 hectare station has lease that includes its facility in Ungani located in the Canning Basin. Buru is reportedly drilling for oil in the location, according to Dissolve.com.au. According to the report, Buru Energy said following lease and financing management arrangements, the transaction's net impact was around AUD3.5 million. The pastoral station is situated around 100 kilometres east of Broome. ========= C H I N A ========= CHINA AUTO: Receives Nasdaq Listing Non-Compliance Notice --------------------------------------------------------- China Auto Logistics Inc., a top seller in China of luxury imported automobiles and a provider of auto-related services, reported it has received notification from the Nasdaq Listing Qualifications Department that it is not in full compliance with listing requirements for the Nasdaq Global Market because the market value of the Company's publicly held shares has been below the required minimum of $5 million for 30 business days. Under the Nasdaq Listing Rules, the Company has 180 days (or until April 14, 2015) in which to regain compliance and avoid delisting by sustaining a $5 million market value of publicly held shares for at least ten consecutive business days. The Company said it plans to monitor the situation closely and to consider the options available to it, including submitting an application to transfer to the Nasdaq Capital Market. At this time, the Company cannot provide any assurance that it will be able to regain compliance or successfully transfer to the Nasdaq Capital Market. About China Auto Logistics Inc. China Auto Logistics Inc. is one of China's top sellers of imported luxury vehicles. It also provides a growing variety of "one stop" automobile related services such as short term dealer financing. Additionally, in November, 2013, it acquired the owner and operator of the 26,000 square meter Airport International Auto Mall in Tianjin for $91.4 million, with plans to develop the auto mall, among other things, as the flagship site for a joint venture with Car King (China) Used Car Trading Co., Ltd. In August, 2014, the Company also announced a Strategic Cooperation Agreement with a leading auto dealer leasing and development company to greatly expand its high end imported auto business via the purchase and construction of new auto malls throughout China coupled with a new e-commerce platform. HIDILI INDUSTRY: S&P Raises CCR to 'CCC-'; Outlook Negative ----------------------------------------------------------- On Oct. 23, 2014, Standard & Poor's Ratings Services raised its long-term corporate credit rating on Hidili Industry International Development Ltd. to 'CCC' from 'SD'. The outlook is negative. At the same time, S&P raised the rating on the company's outstanding US$182.7 million 8.625% senior unsecured notes due 2015 to 'CCC-' from 'D'. S&P also raised its long-term Greater China regional scale rating on Hidili to 'cnCCC' from 'SD' and the notes to 'cnCCC-' from 'D'. Hidili is a China-based coal miner. "We upgraded Hidili because the company is no longer in default after buying back about 51.91% of its notes. However, the company's weak operating performance has led to inadequate cash flow protection and liquidity. The company's liquidity is still weak following the buyback," said Standard & Poor's credit analyst Jian Cheng. Hidili's financial performance in the first half of 2014 was worse than S&P's base-case expectation as both sales volume and average selling price (ASP) slid. The deterioration stems from limited production following the consolidation of mines and weak downstream demand, which has eroded the company's ASP. S&P expects Hidili to continue to consolidate mines to improve production. However, recovery is likely to be weak for the next 12 months as continued low coal prices and market conditions may weaken Hidili's operating performance. S&P also believes the company could sell assets if operating conditions deteriorate. Although Hidili has reduced its outstanding senior notes due 2015 to US$182.7 million from US$380 million, S&P believes the company's highly leveraged capital structure is unlikely to improve over the maturity period. Unless business and financial conditions materially improve, the company may face difficulty in meeting its obligations over the next 12 months. S&P still sees a one-in-two likelihood of default. "The negative outlook for the next 12 months reflects our expectation that Hidili's fragile liquidity position is likely to deteriorate due to weakening operating cash flow from the coal mining business. The outlook also reflects the company's narrower refinancing options after the technical default," said Mr. Cheng. S&P may lower the rating if it assess that Hidili is unable to roll over its short-term bank loans, suggesting a high likelihood that the company may miss an interest payment within six months. S&P may also consider a downgrade if Hidili falls into a technical default, which could accelerate the payment of outstanding bonds. S&P may revise the outlook to stable if it believes Hidili can generate sufficient cash flow from its operations to meet its interest payments, which S&P thinks is unlikely. S&P could also upgrade the company if it obtains new funding sources or sells assets to repay its debt. LDK SOLAR: Commences Chapter 11 & Chapter 15 Cases in U.S. Court ---------------------------------------------------------------- LDK Solar CO., Ltd. in provisional liquidation and its Joint Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of Zolfo Cooper (Cayman) Limited, on Oct. 22 disclosed that on October 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc. filed voluntary petitions to reorganize under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the District of Delaware. The U.S. Debtors commenced the Chapter 11 Cases in order to implement the prepackaged plan of reorganization, with respect to which the U.S. Debtors launched a solicitation of votes on September 17, 2014 from the holders of LDK Solar's 10% Senior Notes due 2014, as guarantors of the Senior Notes, and required such holders of the Senior Notes to return their ballots by October 15, 2014. Holders of the Senior Notes voted overwhelmingly in favor of accepting the Prepackaged Plan. Contemporaneously with the filing of the Chapter 11 Cases, on October 21, 2014, LDK Solar filed a petition in the same U.S. Bankruptcy Court for recognition of the provisional liquidation proceeding in the Grand Court of the Cayman Islands, as previously announced by LDK Solar, as a foreign main proceeding under Chapter 15 of the United States Bankruptcy Code. At a hearing on October 22, 2014, the U.S. Bankruptcy Court ordered customary relief including the authority for the Debtors to continue to maintain their existing banking structure, to honor all obligations to employees, and to continue all of their ordinary course activities during the restructuring. The U.S. Bankruptcy Court also scheduled a hearing for November 21, 2014 at which it will consider confirmation of the Prepackaged Plan and Chapter 15 recognition of the Cayman Proceeding. Both the Chapter 11 Cases and Chapter 15 Case are vital steps in LDK Solar's offshore restructuring, which LDK Solar hopes to conclude in 2014. More information about the Chapter 11 Cases and Chapter 15 Case are available on the website of the U.S. Debtors' U.S. Voting Agent, Epiq Bankruptcy Solutions, LLC, at (http://dm.epiq11.com/LDK). About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi- Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. The Company's balance sheet at June 30, 2014, showed $3.3 billion in total assets, $5.23 billion in total liabilities and total stockholders' deficit of $1.92 billion. The Company had a working capital deficit and negative equity and incurred net loss over the past years due to the overall market decline and its financial performance. Due to the impending maturity of its Renminbi-denominated US$-settled 10% Senior Notes due 28 February 2014, with an aggregate principal amount of RMB 1.63 billion, the Company decided to file the appointment of provisional liquidators in the Grand Court of Cayman Islands on 21 February 2014. Eleanor Fisher and Tammy Fu of Zolfo Cooper (Cayman) Limited were appointed as joint provisional liquidators of the Company on 27 February 2014. "These factors raise substantial doubt as to our ability to continue as a going concern," according to the Company's regulatory filing with the SEC. ========= I N D I A ========= GUPTA METAL: CARE Upgrades Rating on INR50.48cr Bank Loan to 'B' ---------------------------------------------------------------- CARE revises ratings assigned to bank facilities of Gupta Metal Sheets Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long term Bank Facilities 50.48 CARE B Revised from CARE D Short term Bank Facilities 9.00 CARE A4 Revised from CARE D Rating Rationale The revision in the ratings of the bank facilities of Gupta Metal Sheets Ltd takes into account the improvement in the debt servicing track record of the company. The ratings continue to be constrained by improving albeit weak financial profile of the business marked by low profitability, high overall gearing and low debt protection metrics. The ratings also factor in the working capital intensive nature of business, vulnerability to volatility in raw material prices and highly competitive nature of the business. However, the ratings draw comfort from the experience of the promoters with long track record of operations, healthy demand from the diversified end-user industry and good order book. Going forward, the ability of GMSL to improve its total income, profitability and overall gearing, along with effectively managing its working capital requirement and keeping control over raw material price fluctuation risk shall be the key rating sensitivities. GMSL was originally incorporated as a private limited company by the name of Gupta Metal Sheets Pvt Ltd in the year 1995. GMSPL was incorporated by converting Gupta Enterprises, an equal partnership firm between brothers Mr Ripu Daman Gupta, Mr Ravi Shanker Gupta, Mr Radhey Shyam Gupta, Mr Vijay Kumar Gupta and late Ramesh Chand Gupta into a company. All the partners become equal shareholders in GMSPL which was later converted into a public limited company i.e., GMSL in April of 2011. Currently, 89% of the shareholding of the company is held between the four brothers. GMSL is primarily engaged in the conversion of copper cathodes, copper scraps, etc. into copper and copper based alloys sheets/strips. The company's manufacturing plant is located in Rewari (Haryana) with an installed capacity of 12,500 MT per annum as on March 31, 2014. GMSL primarily sells its products to automobile manufacturers, electric goods manufacturers and defence sector. The company provides strips and sheets in various sizes starting from 0.01 MM to 14 MM to the customer base across states of Delhi, Maharashtra, Tamil Nadu, Rajasthan, Haryana, Uttar Pradesh, Gujarat and Punjab. During FY14 (refers to the period April 1 to March 31), GMSL has registered a total income of INR346.88 crore with a PAT of INR2.16 crore as against a total income of INR324.57 crore with a PAT of INR0.47 crore in FY13. TATA MOTORS: Moody's Rates Proposed Sr. Unsecured Notes (P)Ba2 -------------------------------------------------------------- Moody's has assigned (P) Ba2 ratings to the proposed issue of senior unsecured notes by Tata Motors Limited (TML). The rating outlook is stable. Ratings Rationale TML, the group, comprises four main parts, i) the issuer, TML, which in addition to holding investments in the group companies, contains the operating assets of the commercial and passenger vehicle businesses in India, ii) the highly profitable UK-based Jaguar Land Rover business (JLR), Jaguar Land Rover Automotive Plc (Ba2 positive), iii) the captive vehicle finance subsidiary Tata Motors Finance Ltd (TMFL, unrated) in India and iv) Tata Technologies Ltd (unrated), a 72%-owned subsidiary providing engineering, automation and IT business services to the automotive sector. JLR contributed over 90% of group reported EBITDA in the year ended 31 March 2014. JLR's reported EBITDA margin of 18.5% compares to the -1.4% margin of TML's standalone car and commercial vehicle business in India. Although JLR expects to invest GBP3.5 billion to GBP 3.7 billion in new models and facilities in FY 2015, its very strong cash generation and liquid balance sheet means that it can pay its current dividend of GBP150 million to TML and potentially significantly more. "The phenomenal success of JLR continues to buy time for TML's weak Indian operations to turn around, and these are now showing some improvement" says Alan Greene, a Moody's Vice President - Senior Credit Officer. In India, TML's business has been severely affected by the slowing economic growth rate which led to a massive decline in medium and heavy commercial vehicle sales closely followed by a collapse in light commercial vehicle sales. At the same time, the car business has been unable to compete effectively against its internationally backed, domestic competitors such as Maruti Suzuki (unrated) and Hyundai Motors (Baa1 stable), while the India market overall has seen a surge of interest and investment from nearly all the global car industry majors. "There are signs of increasing economic activity in India following the recent elections and the year on year sales growth of medium and heavy commercial vehicles has recently moved into positive territory. TML, with a market share of over 50% in India, is well-placed to respond to this upturn and for its profitability to recover" adds Greene who is also Lead Analyst for Tata Motors. Similarly, confidence has returned to car showrooms in India although Tata's car sales have continued to slide as buyers have preferred the international brands. However, the launch of the Tata Zest compact sedan in mid-August is already having a positive impact on Tata's sales and if the Bolt, its hatchback counterpart, to be launched in January, is similarly well-received, then Tata should claw back some market share in India, resulting in some profitable underpinning to the car business. Moody's believes that the success of Zest and Bolt are crucial to the future of Tata's car business in India and combined sales of 15,000 units per month would represent a good achievement. The Nano, launched in 2009, has never achieved the hoped for volumes although the latest improvements and modern interiors appear to have given it another lease of life. Beyond regaining market share at home, the key to Tata's success will lie in its ability to sell technologically up to date cars in overseas markets, and potentially make them there, so that it [starts] to see the economies of scale enjoyed by the global majors, concludes Mr. Greene. The bulk of proceeds of the bond will be applied to refinance existing ECB debt with the remainder to fund capex and investment. In the near term, funds are needed to support the Zest and Bolt launches as well as the inventory increase as overall activity picks up. Moody's also expect further investment to be made in TMFL, which is integral to the marketing effort but which is experiencing a higher level of NPAs and lower margins resulting from the last two years of weak vehicle sales. The stable outlook reflects JLR's relative strength which continues to allow time for the core Indian business to recover and, despite the negative free cash flow overall, continues to support group credit metrics at an appropriate level for the Ba2 rating. However, FY2015 is a critical year as JLR's sales growth rate slows and execution risk rises both in terms of increased product development expenditure and the starting up of overseas manufacturing operations. At the same time, Tata's Indian operations need to regain some of their lost market share with success of new launches key to the passenger car business's long- term prospects. Upward pressure on the rating could emerge if JLR's credit metrics improve further while releasing more funds to the Indian operations and/or TML's standalone vehicle business in India generates better margins due to improving economic conditions and successful product launches. Solid execution of the companies' internationalization plans -- JLR's overseas manufacturing and TML's plans to increase sales to regional markets - would also support a positive rating action. In addition, the disparity between the credit metrics achieved by JLR and the standalone company would need to reduce. Group credit metrics that might indicate an upgrade include Adjusted debt/EBITDA below 4.0x and EBITA margins maintained at 6% or higher, on a sustained basis. Furthermore, an FCF/debt ratio greater than 6% to 8%, is appropriate for the mid-Ba range. Downward pressure on the rating could emerge if JLR's rate of growth of sales declines more than anticipated and/or TML in India is unable to sustain its performance due to input cost pressures, weak markets, disappointing new products and further loss of market share, all potentially resulting in lower revenues and reduced margins. Depending on the remedy, a breach of financial covenants could also lead to a downgrade. This could be reflected in various credit metrics when viewed on a sustained basis such as i) Adjusted debt/EBITDA increasing to over 5x and ii) EBITA margins falling below 4%. FCF/debt falling below 5% would also potentially lead to a downgrade. The rating could be downgraded by one notch if Moody's expectations of the willingness and ability of Tata Sons or other Tata Group to support TML were materially lowered. TML is 34.33%-owned by Tata Group companies. Listed in India and with an ADR programme, TML has a market capitalisation of over $24 billion as of 13th October 2014 and generated revenues of over $38 billion in FYE March 2014. The methodologies used in this rating were Global Automobile Manufacturer Industry published in June 2011, and The Rating Relationship Between Industrial Companies And Their Captive Finance Subsidiaries published in May 2012. Other methodologies used include Loss Given Default for Speculative-Grade Non- Financial Companies in the U.S., Canada and EMEA published in June 2009. TATA MOTORS: S&P Assigns 'BB' Rating to Prop. Unsec. Notes Issue ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'BB' long-term issue rating to a proposed issue of unsecured notes by Tata Motors Ltd. (BB/Positive/--). The issue rating is subject to S&P's review of the final issue documentation. Tata Motors expects to primarily use the proceeds from the proposed notes to refinance a part of its debt and fund its capital expenditure. The rating on the unsecured notes is equalized with the corporate credit rating on Tata Motors. S&P don't notch the issue rating in India for priority liabilities. S&P believes the good operating performance of Tata Motors' fully owned subsidiary Jaguar Land Rover Automotive PLC (JLR), if sustained, could improve Tata Motors' consolidated financial strength. Conversely, a weaker operating performance of JLR could lower Tata Motors' ratio of funds from operations to debt to about 30%, compared with 37% in fiscal 2014 (ended March 31). This is given that JLR's annual capital expenditure will likely remain high at about GBP3.5 billion for the next couple of years to add new products, engines and platforms, increase production capacity, and to meet emission standards. The ratings on Tata Motors reflect the company's small size and narrow product suite compared with many global peers', and its likely negative free operating cash flows because of high capital expenditure. JLR's established and improving market position in the global premium automotive segment and its strong operating performance temper these weaknesses. Tata Motors' global-scale and low-cost commercial vehicle manufacturing capabilities in India also support the company's "fair" business risk profile. ========= J A P A N ========= ARYSTA LIFESCIENCE: S&P Puts 'B' CCR on CreditWatch Positive ------------------------------------------------------------ Standard & Poor's Ratings Services said it had placed its 'B' long-term corporate credit ratings on Japan-based crop protection provider Arysta LifeScience Corp. (ALS Japan) and U.S.-based Arysta LifeScience SPC, LLC on CreditWatch with positive implications. At the same time, S&P placed its 'B' and 'CCC+' long-term debt ratings on Arysta LifeScience SPC on CreditWatch with positive implications. The CreditWatch placement follows Arysta group's announcement that chemical maker Platform Specialty Products Corp. (BB/Stable/--) has reached a definitive agreement with Arysta group's ultimate parent and financial sponsor, Permira funds, to acquire Arysta group for about $3.51 billion. S&P expects the transaction to close in the first quarter of 2015, subject to regulatory approval. Arysta group is one of the world's 12 largest makers of crop protection products. Platform Specialty is acquiring other crop protection companies and expanding its business. Completion of the acquisition of Arysta group is likely to create the 10th-largest vertically integrated agricultural chemicals company in the industry. As a result, S&P believes Arysta group is also likely to benefit from larger economies of scale and diversified end markets following the acquisition. S&P expects to resolve the CreditWatch status by the conclusion of the transaction, which is most likely to occur in the first quarter of 2015. S&P will review benefits from the merger, the near- to medium-term impact of the merger on Arysta group's business prospects, and the impact on Arysta group's financial standing after the merger. S&P will also monitor the likelihood of debt holders exercising change-of-control clauses and review the company's ability to meet its obligations. In addition, the corporate credit ratings on Arysta group companies will reflect S&P's assessment of Arysta group's degree of integration and status in Platform Specialty and the degree of possible extraordinary support for Arysta group from Platform Specialty. =============== M A L A Y S I A =============== STAR CITY: 3 Parties Vie to Rescue Mall --------------------------------------- Daily Express reports that property and business investors who have dumped financial resources into the abandoned Star City mall were elated to learn of a recent tender exercise by the court- appointed liquidator that attracted three interested parties seeking to revive the commercial venture structures left in dilapidated condition. "I am so relieved to be able to have hope now to recover my retirement funds invested into this hopeless project," said Chong, a long-suffering purchaser, obviously stressed out for years over a property investment which he claimed should have doubled his funds had he invested in other property projects when the boom cycle was peaking in Sabah or other parts of the country, and even overseas, Daily Express relays. Daily Express says the cost to health, including mental health from property investments gone wrong or just plain problematic either from returns on investments, loans repayment or tenants from hell is not well documented in Malaysia but it does affect a lot of people compared to the free and easy homeless sleeping in public places with not a care in the world, when charity meets their basic needs. Other woes concern dealing with authorities, politicians and graft to get things done, the report notes. According to Daily Express, some investors claimed to have almost paid up their banking loans taken out to buy retail shoplots in Star City, but are still waiting for their business premises. For professionals like Alvin who had fully settled his loan, it remains a waiting game as it was for more than a hundred of purchasers, the report relates. Daily Express discloses that all three tenderers were reported to have deposited MYR2 million in earnest money, to show their seriousness, ability and earnestness to fulfil their intentions to fruition. Selection of the successful tenderer is still work in progress. However, the elation of the Star City investors and potential business operators were tempered by the realisation that only one of the tenderers, reputed to have political connection, has the intention of retaining their interests in the commercial mall project, says Daily Express. Its sole distinctive differentiation lies in the prospect of emulating the Johor Branded Outlets which is a US concept perhaps with the Royal Malaysian Customs approval for GST free shopping or a reduction in consumption tax that has yet to be worked out in finality, the report adds. ==================== N E W Z E A L A N D ==================== CHRISTCHURCH YARNS: NZ Yarn Buys Firm Out of Receivership --------------------------------------------------------- In a joint release, NZ Yarn and the Receiver for Christchurch Yarns on Oct. 23 announced the NZ Yarn offer has gone unconditional in acquiring the business of Christchurch Yarns. Elders Primary Wool (EPW) has secured a majority shareholding in the acquiring business NZ Yarn and the remaining shareholding will be held by Primary Wool Cooperative (PWC) and growers. The Receiver, Andrew Oorschot -- andrew.oorschot@ashtonwheelans.co.nz -- of Ashton Wheelans confirmed the sale has gone unconditional. "I am delighted that the sale has been confirmed and the business will continue to operate as a going concern, providing ongoing employment opportunities for those working at Christchurch Yarns and ongoing supply for its loyal customer base." The deal will be settled on Nov. 21, 2014. While the acquisition has gone unconditional, NZ Yarn will continue to seek grower investment up until Nov. 19, 2014. "This is a great outcome for both Christchurch Yarns and the future of the New Zealand wool industry" said EPW Chairman Stu Chapman. "It was imperative that the business remained an independent, fully operational New Zealand yarn spinner. The onshore and offshore commercial opportunities this acquisition brings are substantial for EPW, the Just Shorn programme and the New Zealand wool industry." Christchurch Yarns NZ Ltd is a yarn manufacturer. The company was originally called Christchurch Carpet Yarns Ltd and its Burnside plant was built in the 1970s. The company had several different owners before being bought by its most recent shareholders in 2004. Christchurch Yarns entered receivership on April 11, 2014, owing general security agreement creditors NZ$7.2 million. QUEENSTOWN MARINA: Owes NZ$1.33MM, Liquidator's Report Shows ------------------------------------------------------------ The Press reports that a Queenstown marina company connected with prominent Christchurch lawyer Clive John Cousins and construction kingpin Edwin March owes about NZ$1.33 million, a liquidator's report said. Queenstown Marina Developments Ltd (in receivership) was put into liquidation on August 21 by the Inland Revenue Department, which appointed KPMG liquidators, according to The Press. The company, formed in 2004, was behind a NZ$20m marina development on Lake Wakatipu in Queenstown. Resource consents were issued in 2008 but the Queenstown Lakes District Council cancelled an agreement with the company in 2012 after it failed to meet deadlines, The Press recalls. The company has lodged a complaint with the Office of the Ombudsman, The Press says. In their first report to creditors, the liquidators said the company has assets comprising a resource consent, marina development plans and a possible asset which will become clearer after the Ombudsman's decision, according to The Press. The reports highlights a NZ$148,984 claim by Inland Revenue for GST and eight claims from unsecured creditors amounting to NZ$1,189,483, The Press relays. March and Cousins were directors of the company until last December. James Robinson, of Timaru, is now sole director. He was appointed in September last year. March and Cousins remain shareholders, each holding 6000 shares, The Press discloses. Unsecured creditors include Austin Forbes, QC, Clive Cousins, Tonkin and Taylor, and Davis Environmental Services. "We are unable to advise the likelihood of distributions," the liquidators' report said. "The liquidators are in the process of confirming the security and validity of the appointment of the receiver." TERRY SEREPISOS: Discharged From Bankruptcy ------------------------------------------- The Dominion Post reports that former Phoenix football club owner Terry Serepisos has been discharged from bankruptcy, after the Official Assignee withdrew her opposition on October 24. According to the report, Mr. Serepisos' bankruptcy would have ended almost a month ago, three years after it began, but for the Official Assignee filing an opposition in the High Court at Wellington. But the court confirmed that the opposition was withdrawn and Insolvency and Trustee Service records show Mr. Serepisos has been discharged from bankruptcy on October 24, the report relates. A hearing into Mr. Serepisos' financial means will be held in the Family Court next month, relays The Dominion Post. He appeared before Wellington Family Court Judge Mary O'Dwyer on October 24 for a conference to set the hearing date, the report says. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 27, 2011, the New Zealand Herald said Wellington businessman and former Phoenix football owner Terry Serepisos was declared bankrupt in the High Court at Wellington after his last-minute bid for more time to pay debts was rejected. Judge Gendall granted an application by South Canterbury Finance, owed some NZ$22.5 million, to declare Mr. Serepisos bankrupt after he failed to convince the court to grant him four more days to secure funding from a Hong Kong-based merchant bank. In August 2011, BusinessDesk recalled, Mr. Serepisos was granted adjournment to put forward a proposal to creditors that would sell down his property portfolio in an orderly fashion, in a bid to meet the entirety of the NZ$204 million owed to his lenders. The portfolio, made up of some 150 residential properties and more than six commercial buildings, was valued at NZ$232.5 million, BusinessDesk said. The Serepisos-owned companies include Century City Hunter Street, Century City Investments, Century City Developments, Century City Management, and Century City Football, which previously owned the Wellington Phoenix football team. VINCENT AVIATION: Goes Into Receivership ---------------------------------------- Dave Burgess at The Dominion Post reports that Vincent Aviation Ltd, which has about 30 workers, has gone into receivership. In a public notice released on October 24, Stephen Tubbs from BDO was appointed receiver of the company, the report relates. The Dominion Post relates that the move comes after an application to liquidate the company was lodged last week in the High Court by ANCL Investments. According to the report, owner Peter Vincent said last week that the action taken by ANCL Investments was a "serious situation" for his company. He blamed the collapse in May of Vincent Aviation Australia, based in Darwin but owned by Vincent Aviation in New Zealand, the report relays. The report discloses that the balance sheet from the Australian arm of the company showed its debts outweighed its assets by AUD8.8 million (NZ$9.86m). The Dominion Post relates that Mr. Vincent said the application to liquidate its New Zealand operations related to lease and maintenance provision payments for a BAe 146 aircraft, known as a Whisperjet. "The problem is the income generated by that aircraft is caught up in the Australian receivership, but the costs in relation to that aircraft are coming back to the New Zealand entity," the report quotes Mr. Vincent as saying. The Australian business, although a subsidiary, was much larger than the New Zealand operation and the level of cost that had come back was difficult for the smaller New Zealand business to withstand, Mr. Vincent, as cited by The Dominion Post, said. Vincent Aviation Ltd carries out flight operations, administration, engineering, planning and compliance, as well as charter flights. The company was established in 1990 and is based at Wellington Airport. ===================== P H I L I P P I N E S ===================== MANDARIN SKYFOOD: Tax Department Shuts Down Makati Restaurant ------------------------------------------------------------- ABS-CBNnews.com reports that the Bureau of Internal Revenue (BIR) has closed down Chinese restaurant Mandarin Sky in Quezon City for allegedly committing tax violations for taxable years 2011 to 2013. ABS-CBNnews.com relates that the BIR said the restaurant, which is located along Banawe St., was padlocked for the underdeclaration of its sales at by 30 percent or more. Investigations by the regional investigation division of BIR Region 7-Quezon City showed that the company underdeclared its value added tax declaration by 574 percent or PHP25.96 million, 310 percent or PHP23.04 million and 151 percent or PHP18.36 million for 2011, 2012 and 2013, respectively, according to ABS-CBNnews.com. The report says the restaurant was closed after it failed comply with the 48-hour notice and the 5-day VAT compliance notice issued by the BIR. The closure order was signed by BIR deputy commissioner for operations Nelson Aspe, ABS-CBNnews.com reports. Mandarin Sky is owned and operated by Mandarin Skyfood Restaurant, Incorporated with registered address at 478 Banawe St. Barangay Sto. Domingo, Quezon City. ==================== S O U T H K O R E A ==================== DONGBU GROUP: Hyundai Steel Tapped as Prime Bidder For Unit ----------------------------------------------------------- Yonhap News reports that Hyundai Steel, South Korea's second- largest steelmaker, has been picked as the preferred bidder to buy Dongbu Special Steel, which is seeking a new owner as part of its parent conglomerate's restructuring program. The news agency relates that sale managers did not give exact figures, but insiders familiar with the process speculated Hyundai Steel may have offered about KRW300 billion (US$282.7 million) for the special steel maker, beating out its main rival SeAH Group. According to the report, the move by Hyundai Steel comes as it is pushing ahead with its plan to build a special steel facility at its Dangjin plant, some 123 kilometers south of Seoul. This plant is scheduled to start churning out products from 2016, the report says. The purchase will allow Hyundai to become a direct rival to SeAH for the special steel market, Yonhap notes. Yonhap says Hyundai Steel, part of Hyundai Motor Group, the world's fifth largest automotive conglomerate, expressed interest in Dongbu, because the latter's facilities can be used to process special steel parts effectively. Dongbu buys rolled steel products from integrated mills and turns them into parts for car engines and transmissions. Yonhap notes that if a final purchase deal is signed, POSCO, the country's largest steel mill, will likely lose a steady client because Hyundai Steel can provide the materials needed for Dongbu Special Steel. Korea Development Bank (KDB) had taken over the steel mill from Dongbu Group for KRW110 billion by creating a private equity fund, says Yonhap. Under that agreement, the bank will give the conglomerate proceeds from the sale, which can be used for corporate debt payment and restructuring, the report says. Hyundai Steel is expected to sign a share purchase agreement next month and complete the purchase by January, adds Yonhap. Dongbu Group is a South Korean conglomerate corporation which operates through seven business segments with 42 subsidiaries and 35,000 employees. The Group produces industry, chemical, shipping, insurance and financial products. MONEUAL INC: Creditor Banks Hit Hard by Firm's Receivership ----------------------------------------------------------- Chung Ah-young at The Korea Times reports that major creditor banks of Moneual Inc. may be unable to collect loans extended to the robot vacuum cleaner manufacturer which has filed for court receivership. Moneual failed to repay export bonds worth KRW500 billion to NongHyup Bank and the Korea Industrial Bank (KDB) which matured on Oct. 20, according to the report. The report says the company's filing for court receivership has sent shockwaves through the industry as it had been lauded as a leading venture company in home appliances, reporting KRW1.27 trillion in sales and KRW110 billion in operating profit last year. The company is facing suspicions of overstating its export performance in order to receive large loans from financial institutions, The Korea Times relates. According to the report, the Korea Customs Service (KCS) is looking into whether the company altered its accounting books to overstate its business performance and sell export bonds worth KRW1 trillion. "We've detected some evidence that Moneual overstated export performance documents as their bond maturities came closer," the report quotes a KCS official as saying. The Korea Times reports that the Financial Supervisory Service (FSS) is focusing on whether its KOSDAQ-listed subsidiary Zalman Tech violated corporate accounting rules. The report relates that the FSS said that it is strengthening monitoring of stock movements as the subsidiary's stock trade volumes surged from Oct. 17 just before Moneual filed for court receivership. The FSS said it will also inspect local banks which extended loans to Moneual and Zalman Tech based on their fraudulent documents, the report adds. The reports says the loans extended to the company amount to KRW670 billion. The Industrial Bank of Korea (IBK) extended KRW150 billion, the largest amount, followed by the KDB with KRW125 billion, the Korea Export-Import Bank with KRW113 billion, the Korea Exchange Bank (KEB) with KRW110 billion, Kookmin Bank with KRW76 billion, NongHyup Bank with KRW75 billion, the report discloses. Among the loans, the lenders granted KRW380 billion to the company based on post-shipment export credit guarantees issued by the Korea Trade Insurance Corp. (K-Sure), the report notes. K-Sure issued the guarantees backed by the export records, shipping documents and bank statements. The creditor banks and K-Sure are passing the buck to each other over the loans, the report adds. Korea-based Moneual Inc. manufactures robot vacuum cleaner. ********* 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 202-362-8552. *** End of Transmission ***