/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/111107.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, November 7, 2011, Vol. 14, No. 220 Headlines A U S T R A L I A BARONS BREWING: Rodgers Reidy Appointed as Liquidators COSMOPOLITAN CONSTRUCTIONS: Goes Into Liquidation CROWNE PLAZA: Receivers Withdraw Golf Resort From Market EQUITITRUST LIMITED: Court Grants ASIC Interim Stay Order OATLANDS HOUSE: NAB Appoints Ferrier Hodgson as Receivers SONRAY CAPITAL: Investors May Get 69c in the Dollar Payout C H I N A FRANSHION PROPERTIES: S&P Puts 'BB+' Rating on Sr. Notes on Watch WINSWAY COKING: S&P Puts 'BB-' Corp. Credit Rating on Watch Neg H O N G K O N G KWAN WING: Court to Hear Wind-Up Petition on Dec. 14 LEHMAN BROTHERS: Contributories and Creditors to Meet on Nov. 10 LEHMAN BROTHERS ASIA: Second Creditors' Meeting Set for Nov. 10 LUEN YICK: Court to Hear Wind-Up Petition on Dec. 21 MANDOLIN HK: Creditors' Proofs of Debt Due Nov. 15 MILLENNIUM BANK: Middleton and Chan Appointed as Liquidators PACIFIC EAST: Court Enters Wind-Up Order PEACE MARK: Creditors' Proofs of Debt Due Nov. 11 SHEEN ASIA: Court Enters Wind-Up Order SINTEX INTERNATIONAL: Court Enters Wind-Up Order SWEETMART GARMENT: Creditors' Proofs of Debt Due Nov. 11 THREE WISE: Court to Hear Wind-Up Petition on Dec. 14 WELL TOP: Court Enters Wind-Up Order I N D I A AEGIS: Fitch Withdraws Rating on Senior Notes at 'BB-' AROMA BIOTECH: ICRA Cuts Rating on INR47cr Bank Lines to [ICRA]D BEEKAY STEEL: Fitch Assigns Low-B Ratings on Two Loans HARANAI SAHAKARI: ICRA Reaffirms [ICRA]BB Rating to INR32cr Loan HES INFRA: ICRA Assigns '[ICRA]BB+' Rating to INR90cr Loan INDRA MARSHAL: ICRA Assigns '[ICRA]BB' Rating to INR7cr Limits JICS LOGISTIC: ICRA Assigns '[ICRA]BB+' Rating to INR6cr Limits KIMPLAS PIPING: ICRA Assigns '[ICRA]BB-' to INR30cr LT Loan PRATEEK APPARELS: ICRA Reassigns '[ICRA]B' Rating to INR35cr Loan SATIA INDUSTRIES: ICRA Puts '[ICRA]B-' on INR68.77cr Loan Rating SHAMBHU TEXTILE: Delays in Debt Repayment Cues ICRA Junk Rating S.K. EXPORTS: ICRA Places '[ICRA]BB+' Rating on INR10cr Loan SRI BALAJI: ICRA Assigns '[ICRA]B+' Rating to INR6cr Loan VARDHMAN ADARSH: ICRA Assigns '[ICRA]BB-' Rating to INR6cr Loan VARUN VINIMAY: ICRA Assigns [ICRA]BB Rating to INR14cr Bank Loan I N D O N E S I A BERLIAN LAJU: S&P Affirms 'B-' Corp. Credit Rating; Outlook Neg. J A P A N TAKEFUJI CORP: Tokyo Court OKs Plan to Repay 20% of $20BB Debt N E W Z E A L A N D AORANGI SECURITIES: Jean Hubbard Out of Statutory Management - - - - - ================= A U S T R A L I A ================= BARONS BREWING: Rodgers Reidy Appointed as Liquidators ------------------------------------------------------ SmartCompany reports that liquidators have been appointed to Barons Brewing after creditors ruled out sinking more money into the loss-making business and the company failed in its push to have their beers sold in pubs. According to SmartCompany, Geoff Reidy, co-founder of specialist insolvency accounting firm Rodgers Reidy, is looking after Barons Brewing Group, which is in administration, and Barons Brewing, which is in liquidation. SmartCompany relates that Mr. Reidy said by the time of his appointment this week there was basically only a shell left, with no brewery assets to take over and intellectual property already sold off. The company is not trading and had no employees at Mr. Reidy's appointment, the report notes. The main creditor, director Patrick Clarke, is believed to be owed about AUD4.5 million, the report discloses. The Tax Office is believed to be another creditor, although Mr. Reidy said the ATO wouldn't be a main cause of the demise but merely a "symptom of losses," SmartCompany relates. Barons Brewing was a New South Wales-based microbrewer. COSMOPOLITAN CONSTRUCTIONS: Goes Into Liquidation ------------------------------------------------- New South Wales-based building firm Cosmopolitan Constructions has gone into liquidation. Christopher Darin and Nick Malanos from Worrells have been appointed as joint liquidators. "After taking independent advice and considering all alternatives, it is with much regret that Perry Condoleon as (The Director) of the Company, has resolved to place Cosmopolitan Constructions into voluntary liquidation on the 4th of November 2011," the company said in a statement posted on its Web site. "In the Financial Year 2010/2011 Cosmopolitan Constructions operated a profitable Contract Home Building division in NSW, however the company has recently incurred significant margin erosion in its Projects division. "During these difficult times, The Director acknowledges and deeply regrets that this situation will cause financial hardship and inconvenience to our staff, retail customers, corporate developers, suppliers and tradespeople." Cosmopolitan Constructions said, "Staff have been terminated with all wages and superannuation entitlements due paid to date. The balance of staff entitlements will be paid in due course by the liquidator, based on funds held, receivables recovered or through the government scheme (GEERS)." According to Australian Associated Press, Fair Trading Minister Anthony Roberts said customers affected by the company's liquidation will be assisted by the NSW government. "Fair Trading will work with the liquidators, insurers and other relevant parties to determine as quickly as possible what the situation of the company is and what the best options are for all parties concerned," AAP quotes Mr. Roberts as saying in a release Saturday. AAP relates that Mr. Roberts said home owners with home warranty insurance would be protected and he encouraged sub-contractors and suppliers to contact the liquidators at Worrells Accountants in Sydney. Concerned consumers or sub-contractors can leave their details with Fair Trading to get regular updates, the report notes. Cosmopolitan Constructions is a building contractor. It has between 150 and 200 homes under construction. CROWNE PLAZA: Receivers Withdraw Golf Resort From Market -------------------------------------------------------- The Receivers and Managers of the Crowne Plaza Hunter Valley announced Thursday that they are withdrawing the popular golfing resort from the market in order to concentrate their efforts on value-enhancement projects. Since Ferrier Hodgson's appointment as receiver in January 2010, a lengthy sales campaign has been underway and the Receivers have considered a number of international and domestic offers for the resort. Ferrier Hodgson said the decision to withdraw Crowne Plaza from the market comes at a time of significantly improved trading performance resulting in positive returns to the secured creditor, the National Australia Bank. The receivers said they intend to focus on completing building enhancement works and consolidation of the asset prior to putting the resort back on the market in early 2012. Receiver Morgan Kelly of Ferrier Hodgson said the move to withdraw the property from the market reflects confidence in the future for quality leisure assets and the resort's improved trading performance. "While we have had plenty of interest in the resort, the current market isn't meeting our expectations," Mr Kelly said. "Given the strong trading performance over the past 12 months, we will maximise the benefit of enhanced income while we wait for the market to improve." "We have already made a significant investment in the improvement of this asset, but withdrawing the resort from the market will allow us to complete our program of building enhancement works, resolve some outstanding heritage issues with the local Council, and implement initiatives to increase the performance of the golf course, resulting in a further improved asset," Mr. Kelly said. Mr. Kelly said given the strong and improving trading performance, the secured creditor was prepared to be patient in relation to selecting the right purchaser for the property. "I am looking forward to bringing a significantly enhanced asset with a strong trading history back to market in February 2012," Mr. Kelly said. As reported in the Troubled Company Reporter-Asia Pacific on Jan. 26, 2010, the corporate group that owns the Crowne Plaza Hunter Valley property was placed in receivership on Jan. 18, 2010. Ferrier Hodgson partner Peter Walker has taken control of the three companies that make up the owner group: Micland Holding Pty Ltd; Tairo Pty Ltd; and HVGCC Pty Ltd. Ferrier Hodgson said in a statement that the operation of the resort will not be affected by the receivership. Since 2006, the resort has been managed by InterContinental Hotels Group. EQUITITRUST LIMITED: Court Grants ASIC Interim Stay Order --------------------------------------------------------- The Australian Securities and Investments Commission has obtained various interim orders in the Supreme Court of Queensland against Equititrust Limited, the responsible entity of two managed investment schemes, constraining the manner in which Equititrust is permitted to operate the schemes. The two schemes are Equititrust Income Fund (EIF) and Equititrust Priority Class Income Fund (EPCIF). The orders were obtained by consent for the purpose of preserving the status quo of the schemes prior to a hearing by ASIC to consider the suspension of Equititrust's Australian financial services (AFS) license and following resolutions made by Equititrust's Board of Directors on October 12, 2011, that the purposes of EIF could not be accomplished and to take steps to wind up EIF. The orders obtained by ASIC on Oct. 27, 2011, restrain Equititrust from undertaking various acts regarding its operation of the schemes until December 12, 2011 or earlier order of the Court. Among other things, in relation to EIF, the orders restrain Equititrust from: * modifying or replacing the scheme's constitution; * issuing new interests in the scheme; * redeeming, cancelling or modifying existing members' interests in the scheme; * dealing with property held or controlled by Equititrust in its capacity as the responsible entity of the scheme or in its own right, other than in the ordinary course of business; and * entering into contracts, deeds or agreements regarding any property held or controlled by Equititrust with any person that is a related party or related entity. The orders in relation to EPCIF restrain Equititrust from issuing new interests in the scheme without first providing written notice to ASIC. Equititrust Limited is the responsible entity of the Equititrust Income Fund (EIF) and Equititrust Priority Class Income Fund (EPCIF). EIF is a mortgage fund whose primary business is lending retail investors' pooled funds for property development and taking mortgages over the property. The EPCIF is currently dormant. ASIC is concerned that Equititrust is in breach of a condition of its AFS licence requiring that it hold a minimum amount of net tangible assets and has breached provisions of the Corporations Act 2001 requiring that it lodge audited financial reports for EIF and EPCIF and audited reports of its compliance with the compliance plans for both EIF and EPCIF. ASIC has issued a notice to Equititrust giving it an opportunity to appear at a hearing before ASIC in relation to whether to suspend its AFS license. Separately, on October 24 and 25, 2011, Equititrust issued a notice to the members of EIF informing them that the Board had resolved, on October 12, 2011, that the purposes of EIF could not be accomplished and that steps be taken to wind up the scheme. Members have 28 days after being given the notice to call a meeting of members to consider the proposed winding up of the scheme and to vote on any extraordinary resolution members propose about the winding up of the scheme. ASIC obtained orders to preserve members' interests in the schemes until these issues are resolved. As reported in the Troubled Company Reporter-Asia Pacific on May 5, 2011, The Sydney Morning Herald related that a court application has been made to wind up Equititrust, adding to a list of woes for the company that faces a potential class action by investors and is at the mercy of its banks. Equititrust confirmed on May 3 that the application was filed by Rural Security Holdings, a company associated with Ian Lazar. The company has frozen investor redemptions and income distributions at its AUD260 million Equititrust Income Fund and recently confirmed that investors face large losses as well as a restructure, according to SMH. Equititrust was forced to suspend payments and renegotiate terms with NAB on the loan earlier this year when EIF was almost out of cash, SMH disclosed. NAB agreed to defer repayments for last December until February while it considered a new proposal that would match bank repayments with loan repayments by Equititrust clients. Equititrust earlier this year blamed delayed property sales settlements for the need to stop paying income distributions for the foreseeable future and reported a AUD12.3 million loss for the half-year ending Dec. 31, 2010. Equititrust Limited -- http://www.equititrust.com.au/-- is an Australian-based specialist funds management and property investment group. OATLANDS HOUSE: NAB Appoints Ferrier Hodgson as Receivers --------------------------------------------------------- Ryan Eagle and Morgan Kelly of Ferrier Hodgson were appointed as receivers and managers to the assets and undertakings of Tagive Pty Limited as trustee for Eliza's Unit Trust ACN 002 945 922 and Babindo Pty Limited as trustee for Oatlands Property Trust ACN 002 591 531 on Nov. 2, 2011, by National Australia Bank Limited, the holder of fixed and floating charges over the assets and undertakings of the Companies, trading as Oatlands House. Ferrier Hodgson said the receivers are continuing to trade the Function Centre in the ordinary course while an urgent assessment of the financial position of the Companies is completed. The function centre will continue to accept bookings in the ordinary course of business SONRAY CAPITAL: Investors May Get 69c in the Dollar Payout ---------------------------------------------------------- The liquidators of Sonray Capital Markets Pty Ltd said Thursday that a settlement has been reached which will result in AUD38.5 million being paid to Sonray in the form of cash and shares. "Together with the recoveries made by the Liquidators to date, this has the potential to return to investors up to 69 cents in the dollar," Ferrier Hodgson said. Under the Settlement Deed, Saxo Bank A/S and HLB Mann Judd have agreed to contribute a total of AUD18.5 million in cash to the pool (this includes AUD500,000 already paid to fund the mediation). In addition, all the shares Saxo Bank A/S holds in relation to Sonray will be returned to form part of the pool. These shares are presently worth approximately AUD20 million. There are a number of pre-conditions that need to be met before the agreement can be finalized. These include the requirements that: -- All investors represented in the mediation (about 35) need to sign a release by Nov. 28, 2011, releasing Saxo Bank A/S and HLB Mann Judd from any future claims in relation to Sonray. -- At least 80% by value of all Sonray investors (about 200) need to sign a release by Dec. 23, 2011, releasing Saxo Bank A/S and HLB Mann Judd from any future claims in relation to Sonray. Sonray Liquidator, Ferrier Hodgson partner Mr. George Georges, said the settlement was likely to increase the return to investors -- up from the expected 25-30 cents to as much as 69 cents. The outcome of a directions hearing currently before the Federal Court will determine the final figure. While the date of the delivery of the judge's finding is not yet known, the distribution to investors should occur in the first quarter of 2012. Mr. Georges described it as an "outstanding outcome for investors, which does not disadvantage any investor's rights towards the trust assets and represents a credible commercial alternative to otherwise lengthy, costly and uncertain litigation". "Investors should be delighted to hear about this - it is a much better outcome than they were anticipating," Mr Georges said. "It will provide them with certainty and allow them to move on from this unfortunate event." About Sonray Capital Based in Melbourne, Australia, Sonray Capital Markets -- http://www.sonray.com.au/-- specializes in online and advisory services in global equities, global futures, global Contracts For Difference (CFDs) and Margin Foreign Exchange. The company has operated since 2003 and employs about 70 people in offices in Melbourne and on the Gold Coast. On June 22, 2010, Sonray Capital Markets Group appointed Ferrier Hodgson partners George Georges and John Lindholm as voluntary administrators. Companies affected included Sonray Capital Markets Pty Ltd, Sonray Capital Markets (Qld) Pty Ltd, Sonray Capital Markets Nominees Pty Ltd, and Sonray Advisory Pty Ltd. Ferrier Hodgson said the companies have ceased trading and the approximately 3,000 client accounts have been suspended while the administrators carry out an investigation into the circumstances of the collapse. On Oct. 27, 2010, the creditors of Sonray Capital Markets voted to wind up the failed business, allowing the administrators to start a mediation process. Ferrier Hodgson said as at June 22, 2010, Sonray had gross client positions of AUD76.85 million; gross client holdings in either cash/equities held by counterparties of AUD$30.15 million; a shortfall of AUD46.70 million; approximately 3,500 clients; and 54 employees. ========= C H I N A ========= FRANSHION PROPERTIES: S&P Puts 'BB+' Rating on Sr. Notes on Watch ----------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BBB-' long-term corporate credit rating on Franshion Properties (China) Ltd. and the 'BB+' issue rating on the company's senior unsecured notes on CreditWatch with negative implications. "At the same time, we also placed our 'cnA-' Greater China credit scale rating on the company and our 'cnBBB+' rating on its senior unsecured notes on CreditWatch with negative implications," S&P related. "We placed the ratings on CreditWatch because we believe the credit profile of Franshion's immediate parent has weakened, reducing its ability to support the subsidiary," said Standard & Poor's credit analyst Frank Lu. "The rating on Franshion factors in a one-notch uplift because of parental support; the company's stand alone credit profile is 'bb+'. We continue to believe that Franshion is strategically important to Sinochem HK." On Nov. 1, 2011, Standard & Poor's lowered the long-term corporate credit rating on Franshion's parent, Sinochem Hong Kong (Group) Co. Ltd. (Sinochem HK), to 'BBB' from 'BBB+'. "The outlook is stable. At the same time, we lowered the company's stand-alone credit profile to 'bb' from 'bb+'. The downgrade of Sinochem HK reflected our view that the company's financial risk profile is deteriorating due to a substantial increase in debt in the first half of 2011 to a much higher level than we expected. We believe there is only a low likelihood that Sinochem HK's financial risk profile will improve over the next 12 months as the company is still in a heavy investment phase. We see a 'high likelihood' of extraordinary support from the government for Sinochem HK, supporting a three-notch uplift in the rating," S&P related. "We aim to resolve the CreditWatch action after reviewing the parental support to Franshion. We will take into account Sinochem HK's stand-alone credit profile and assess the likelihood that any of the extraordinary government support for the company could flow through to Franshion," said Mr. Lu. "We may lower the rating on Franshion by one notch if we believe the parent's weakened credit profile could constrain its support for the company." WINSWAY COKING: S&P Puts 'BB-' Corp. Credit Rating on Watch Neg --------------------------------------------------------------- Standard & Poor's Ratings Services placed its 'BB-' long-term corporate credit rating on China-based Winsway Coking Coal Holdings Ltd. and the 'BB-' issue rating on the company's senior unsecured notes on CreditWatch with negative implications. At the same time, we also placed our 'cnBB+' Greater China scale credit ratings on the company and its notes on CreditWatch with negative implications," S&P related. "We placed the ratings on CreditWatch because we believe Winsway's indirect acquisition of 60% of the issued shares of Grande Cache Coal Corp., a Canada-based coal mining company, is larger than we expected," said Standard & Poor's credit analyst Jerry Fang. "The company's liquidity position could be significantly affected due to the deal and tightened liquidity in China." Winsway's likely significant upstream investment in coal mines will increase its exposure to mine operating and coal price risks. Such a strategy could dilute the company's business model, which emphasizes asset-light trading operations with limited inventory and manageable exposure to coal price volatility. "We acknowledge that some of the proceeds of Winsway's IPO last year and the company's U.S. dollar bond issuance in April 2011 are meant to finance such acquisitions," S&P said. Winsway will form a joint venture with Marubeni Corp. (BBB/Stable/--) to acquire all the issued shares of Grande Cache for Hong Kong dollar 7.7 billion. Winsway will hold 60% shares of the joint venture upon completion of the acquisition. "We aim to resolve the CreditWatch placement within the next three months when more information is available on Winsway's capital expenditure plan for the next two years or so and its future business strategy," said Mr. Fang. "We will also assess the company's liquidity position and credit protection measures for 12 months or so, assuming the acquisition is complete." "We could lower the rating by one notch upon the completion of the acquisition if: (1) we believe the company's business risk profile is likely to significantly weaken due to heightened mine operating and coal price risks; or (2) we project that Winsway's adjusted ratio of funds from operations to total debt will stay less than 20% or the ratio of adjusted total debt to EBITDA will be more than 4x," S&P said. "We may affirm the rating if: (1) we expect that the likely heightened business risk is manageable; and (2) we project that, following the completion of the acquisition, Winsway's adjusted ratio of funds from operations to total debt will stay higher than 20% and the ratio of adjusted total debt to EBITDA will not be more than 4x," S&P said. ================ H O N G K O N G ================ KWAN WING: Court to Hear Wind-Up Petition on Dec. 14 ---------------------------------------------------- A petition to wind up the operations of Kwan Wing Project Management Limited will be heard before the High Court of Hong Kong on Dec. 14, 2011, at 9:30 a.m. Lee Kwong Kin filed the petition against the company on Oct. 12, 2011. The Petitioner's solicitor is: Lui Wai-lan 30/F, Revenue Tower 5 Gloucester Road Wan Chai, Hong Kong LEHMAN BROTHERS: Contributories and Creditors to Meet on Nov. 10 ---------------------------------------------------------------- Contributories and creditors of Lehman Brothers Commercial Corporation Asia Limited will hold their separate meetings on Nov. 10, 2011, at 9:00 a.m., at 27/F, Alexandra House, at 18 Chater Road, Central, in Hong Kong and on Nov. 11, 2011, at 10:30 a.m., at Cliftons, 33/F, at 9 Queen's Road Central, in Hong Kong, respectively. The meetings will be the second for the company's creditors and contributories. At the meeting, Paul Jeremy Brough and Edward Simon Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. LEHMAN BROTHERS ASIA: Second Creditors' Meeting Set for Nov. 10 --------------------------------------------------------------- Contributories and Creditors of Lehman Brothers Asia Holdings Limited will hold their separate meetings on Nov. 10, 2011, at 9:30 a.m., at 27/F, Alexandra House, at 18 Chater Road, Central, in Hong Kong and on Nov. 11, 2011, at 9:00 a.m., at Cliftons, 33/F, at 9 Queen's Road Central, in Hong Kong, respectively. The meetings will be the second for the company's creditors and contributories. At the meeting, Paul Jeremy Brough and Edward Simon Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. LUEN YICK: Court to Hear Wind-Up Petition on Dec. 21 ---------------------------------------------------- A petition to wind up the operations of Luen Yick Tat Cotton Yarn Company Limited will be heard before the High Court of Hong Kong on Dec. 21, 2011, at 9:30 a.m. Standard Chartered Bank (Hong Kong) Limited filed the petition against the company on Oct. 18, 2011. The Petitioner's solicitors are: Tsang, Chang & Wong 16th Floor, Wing On House No. 71 Des Voeux Road Central, Hong Kong MANDOLIN HK: Creditors' Proofs of Debt Due Nov. 15 -------------------------------------------------- Creditors of Mandolin Hong Kong Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Nov. 15, 2011, to be included in the company's dividend distribution. The company's liquidators are: Edward Simon Middleton Fergal Power c/o 27th Floor, Alexandra House 18 Chater Road Central, Hong Kong MILLENNIUM BANK: Middleton and Chan Appointed as Liquidators ------------------------------------------------------------ Edward Simon Middleton and Wing Sze Tiffany Wong on March 24, 2011, were appointed as liquidators of Millennium Bank Inc. The liquidators may be reached at: Edward Simon Middleton Wing Sze Tiffany Wong 27/F, Alexandra House 18 Chater Road Central, Hong Kong PACIFIC EAST: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on Sept. 20, 2011, to wind up the operations of Pacific East International Limited. The company's liquidator is Yuen Tsz Chun Frank. PEACE MARK: Creditors' Proofs of Debt Due Nov. 11 ------------------------------------------------- Creditors of Peace Mark (B.V.I.) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidators are: Roderick John Sutton Fok Hei Yu c/o FTI Consulting (Hong Kong) Limited Level 22, The Center 99 Queen's Road Central, Hong Kong SHEEN ASIA: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on Aug. 24, 2011, to wind up the operations of Sheen Asia International Limited. The company's liquidator is Yuen Tsz Chun Frank. SINTEX INTERNATIONAL: Court Enters Wind-Up Order ------------------------------------------------ The High Court of Hong Kong entered an order on Aug. 24, 2011, to wind up the operations of Sintex International Enterprise Limited. The company's liquidator is Yuen Tsz Chun Frank. SWEETMART GARMENT: Creditors' Proofs of Debt Due Nov. 11 -------------------------------------------------------- Creditors of Sweetmart Garment Works Limited are required to file their proofs of debt by Nov. 11, 2011, to be included in the company's dividend distribution. The company's liquidators are: Alan C W Tang Alison Wong Lee Fung Ying 43/F, The Lee Gardens 33 Hysan Avenue Causeway Bay, Hong Kong THREE WISE: Court to Hear Wind-Up Petition on Dec. 14 ----------------------------------------------------- A petition to wind up the operations of Three Wise Monkeys Limited will be heard before the High Court of Hong Kong on Dec. 14, 2011, at 9:30 a.m. ELM Site Services Limited filed the petition against the company on Oct. 21, 2011. The Petitioner's solicitors are: Messrs. Liu, Chan and Lam Office A, 9th Floor United Centre No. 95 Queensway, Hong Kong WELL TOP: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on Aug. 24, 2011, to wind up the operations of Well Top Development Limited. The company's liquidator is Yuen Tsz Chun Frank. ========= I N D I A ========= AEGIS: Fitch Withdraws Rating on Senior Notes at 'BB-' ------------------------------------------------------ Fitch Ratings has withdrawn the 'BB-(exp)' rating on Aegis's ('BB-'/Stable) proposed five- to seven-year USD senior notes as the debt issuance is no longer proceeding as previously envisaged. The purpose of the bond was to repay Aegis's debt of INR9.1 billion (USD202 million), maturing in April 2012. Fitch expects the company to meet this maturity by raising funds from local banks. AROMA BIOTECH: ICRA Cuts Rating on INR47cr Bank Lines to [ICRA]D ---------------------------------------------------------------- ICRA has revised the rating assigned to INR47.00 crore bank lines of Aroma Biotech Private Limited to '[ICRA]D' from 'LBB'. ABPL's rating revision takes into account the recent delays in servicing the interest obligations and significant time and cost over runs that happened in commissioning the plant, delaying the scheduled Commercial Operations Date (COD) by more than a year. The rating revision also factors in the possible funds shortfall that could lead to default on debt repayments if there is no postponement of the term loan repayments scheduled to begin from December 2011. The rating is constrained by the company's exposure to commodity cycles as cost of grains alone constitutes nearly 50% of its production cost and availability of grains at commercially viable rates depends on unpredictable factors like the monsoons. However, the risk is partly mitigated by the plant's proximity to the agricultural belt and the flexibility to use multiple grains as raw material. The rating favorably factors in the promoters' experience in the Indian Made Foreign Liquor and power generation sectors, implicit assured demand for Extra Neutral Alcohol (ENA), as more than a quarter of ABPL's production (60 lakh litres per annum) could be consumed in house to meet the requirement of M/s Aroma Winery and Distilleries, a group company engaged in manufacturing and bottling of IMFL. ICRA also notes the healthy demand prospects for ENA as growth in liquor industry is driving its consumption and so, particularly in Andhra Pradesh which is ranked high among the liquor consuming states, but still, is a net importer of ENA. About Aroma Biotech Aroma Biotech Private Limited was incorporated on March 31, 2006 as a Private Limited Company with the main objective to manufacture Extra Neutral Alcohol (ENA). The company is setting up a manufacturing facility (at Avapadu Village, Nallacharla Mandal, West Godavari Dist, Andhra Pradesh) with an installed capacity of about 60 Kilolitres per day (KLPD) along with a 2.28 MW captive Co-Generation plant. The company will manufacture ENA through grain based process and its commercial operations are expected to begin by December 2011. BEEKAY STEEL: Fitch Assigns Low-B Ratings on Two Loans ------------------------------------------------------ Fitch Ratings has assigned India-based Beekay Steel Industries Limited a National Long-Term rating of 'Fitch BB+(ind)'. The Outlook is Stable. A list of additional rating actions is provided at the end of this commentary. BSIL's ratings reflect the three-decade long experience of its founders in the iron and steel industry, and its strong EBITDA margins of 11% in the financial year ended March 2011 (FY10: 9%). Margins are likely to be maintained at around 10% in FY12, underpinned by its increasing scale of operations. The ratings also reflect the company's comfortable credit metrics, with both improved net leverage (net debt/EBITDA) of 2.7x (4.3x) and interest coverage (EBITDA/total interest) of 3.3x (2.4x). The ratings further draw comfort from BSIL's 10-year-old relationship with Tata Steel Limited ('Fitch AA(ind)'/Stable) for the conversion of billets into thermo-mechanically treated (TMT) bars (10%-12% of revenue), imparting immunity to the volatile raw material prices to the extent. The ratings are, however, constrained by BSIL's ongoing debt- funded capex for capacity expansion to 7,10,000 metric tonnes per annum (MTPA) from 5,10,000 MTPA, which will increase in its leverage to above 3.0x and result in tight liquidity position in both FY12 and FY13. The latter is attributed to high working capital limits utilization and fluctuating raw material and finished product prices, which is characteristic of the steel industry. The company had cash and cash equivalent of INR13.7m in FY11. Positive rating guidelines include an increase in EBITDA margins resulting in net debt/EBITDA of below 3.0x on a sustained basis. Conversely, debt-led capital expenditures and/or a decline in EBITDA margins leading to net debt/EBITDA exceeding 5.0x on a sustained basis may result in negative rating action. BSIL is the flagship company of Beekay Group incorporated in 1981. It has six manufacturing units of steel products in different regions of India. BSIL specializes in manufacturing of all types of long products of mild steel, like hot-rolled steel sections, TMT bars, bright bars, structural etc., which are used in automobile, infrastructure, heavy engineering industries. During Q1FY12, BSIL recorded revenues of INR1,326.9 million (Q1FY11: INR820.4 million), EBITDA margins 12.4% (17.8%) and interest coverage 4.7x (5.0x). Fitch has simultaneously assigned ratings to BSIL's bank loans as follows: -- Long Term loans of INR757.5 million: 'Fitch BB+(ind)' -- Fund-based limits of INR128.9 million: 'Fitch BB+(ind)' -- Non-fund based limits of INR110 million: 'Fitch A4+(ind)' HARANAI SAHAKARI: ICRA Reaffirms [ICRA]BB Rating to INR32cr Loan ---------------------------------------------------------------- ICRA has reaffirmed '[ICRA]BB' rating with stable outlook to the INR32.00 crore term loan facilities of Haranai Sahakari Soot Girni Limited. ICRA has also assigned '[ICRA]BB' rating with stable outlook to INR 3.55 crore cash credit facilities of HSSGL. The rating re-affirmation continues to derive comfort from the financial assistance provided by Government of Maharashtra (GoM) to the society in form of long term capital. ICRA further notes that the management has extensive experience in spinning industry and the mill enjoys proximity to raw material sources. The ratings are, however, constrained by small scale of operations in intensively competitive cotton yarn industry. Further FY11 being the first full year of operations for the mill, there is a limited track record of operations. HSSGL is also exposed to the competitive pressures and fragmented nature of the industry which restricts the ability of participants to pass on any hike in input costs. The HSSGL was registered in 1994 under the Maharashtra Co- operative Society Act, 1960 for setting up a spinning unit of 25000 ring spindles in Satara region. The society became operational in October 2009 due to delays in disbursement of funds from Government of Maharashtra (GoM). The mill is scheduled to be fully implemented in two phases with first phase of 13728 spindles being operational while work for phase II to install remaining spindles is expected to be completed by Q1 FY13. The company manufactures warped cotton yarn of count 30- 32s. HES INFRA: ICRA Assigns '[ICRA]BB+' Rating to INR90cr Loan ---------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]BB+' to the INR90 Crore fund based limits (enhanced from INR5 Cr), INR300 Crore non fund based limits (enhanced from INR150 Cr) and INR60 Crore Working Capital Demand Term Loan of HES Infra Private Limited. The outlook on the long term rating is stable. The assigned rating takes into account HES' long track record in construction business, its healthy order book position, and its relatively low gearing level which provides it with financial flexibility in case of contingency. The rating is however constrained by the company's high exposure on Andhra Pradesh (AP) based irrigation projects till recent past, its high debtor days on account of delays in payments by Government of Andhra Pradesh (GoAP) and the intensely competitive nature of the construction industry. While assigning the rating ICRA has noted that of late the company has been successful in reducing its dependency on AP based irrigation projects by bagging large orders in other States. However, HES' ability to smoothly execute the projects in relatively new geographies still remains to be seen. Going forward, apart from smooth execution and timely receipt of payments for the projects won in the new geographies, realization of pending debtors for the AP based irrigation projects would be critical for the future liquidity position and debt servicing capability of the company. About HES Infra HES was incorporated in 1997 as a partnership firm in the name of Hindustan Engineers Syndicate, with Mr. M.Kesava Raju and Mr. I.V.R. Krishnam Raju being equal partners. The firm was subsequently converted into a private limited company in June 2007 and renamed as HES Infra Pvt. Ltd. HES is mainly involved in water & irrigation projects and construction of road & bridges. For the year ended March 31, 2011, HES posted a Profit after Tax (PAT) of INR 19.6 crore on an Operating Income of INR 507 crore. INDRA MARSHAL: ICRA Assigns '[ICRA]BB' Rating to INR7cr Limits -------------------------------------------------------------- ICRA has assigned a rating of '[ICRA]BB' to the INR 7.0 crore fund-based limits of Indra Marshal Power Private Limited. ICRA has also assigned a rating of '[ICRA]A4' to the INR12.0 crores short term fund based and non fund-based limits of IMPL. The outlook on the long term rating is 'Stable. The ratings take into account the long standing track record of IMPL's promoters in the pumps industry which has helped develop a reputed client base including clients like Usha International and Kirloskar Limited. Moreover strong push by the government for development of agricultural sector will support future revenues growth. However, the above strengths are off-set by IMPL's small scale of operations, low value add nature of the operations leads to weak competitive positioning and low operating margins, highly competitive nature of industry further leads to pressure on operating margins, further the high working capital intensity of IMPL's operations owing to high debtor days leads to strain of liquidity position of the company. Set up as a partnership firm in 1968 and incorporated as private limited company in 2009 by the Jhawar family of Indore, IMPL is engaged into assembling diesel engines and pump sets of 3.5 horsepower (hp) to 20 hp used primarily in the agricultural sector. The company derives over 90 per cent of its revenues from the agriculture sector. The company has been marketing its products under the brand name 'Indra Marshall'. The company is planning to start manufacturing power tillers and has already received approvals from ARAI (Automotive Research Association of India) for manufacturing of power tillers. The key drivers for the business are the push to agricultural reforms by the government in the form of providing subsidy to the farmers for procuring farm equipments. About Indra Marshal Set up as a partnership firm in 1968 and incorporated as private limited company in 2009 by the Jhawar family of Indore, IMPL is engaged into assembling diesel engines and pump sets of 3.5 horsepower (hp) to 20 hp used primarily in the agricultural sector. The company has been marketing its products under the brand name 'Indra Marshall' for the past 2 decades. IMPL also assembles diesel engines which are sold under the brand name of 'Yamada'. The shares of the company are closely held by Jhanwar family. For FY 2011, IMPL reported Operating Income of INR 38.19 crore and Profit After Tax of INR 1.86 crore as against PAT of INR0.28 crores on Operation income of INR24.37 crores in FY 2010. JICS LOGISTIC: ICRA Assigns '[ICRA]BB+' Rating to INR6cr Limits --------------------------------------------------------------- ICRA has assigned a rating of '[ICRA]BB+' to the INR 6.0 crore fund-based limits of JICS Logistic Limited. ICRA has also assigned a rating of '[ICRA]A4+' to the INR10.0 crore non fund- based limits of JLL. The outlook on the long term rating is 'Stable.' The ratings take into account the long standing track record of JLL's promoters in the warehousing business, JLL's strong market position as a warehousing agent as it is the second largest warehousing partner in India for National Commodity and Derivatives Exchange Limited after (National Collateral Management Services Limited, robust profitability and return metrices and strong debt protection indicators. The ratings are also supported by healthy demand outlook due to shortage in warehousing capacities in India and fund infusion of INR40.0 crores from IL&FS which will help improve scale of operations and improve cost structure However the ratings are constrained by client concentration risk with ~ 90% of the revenues driven by NCDEX, this risk is further exaggerated by the fact that JLL cannot sign an agreement with any other commodity exchange as per its contract terms with NCDEX. The ratings also factor in the susceptibility o JLL's profitability to variation in warehousing and assaying charges which are fixed by NCDEX and its large debt funded capex which may lead to deterioration in capitalization and coverage indicators of the company. About JICS Logistic JICS Logistic Limited was set up in 1996 as a partnership firm and was incorporated into a private limited company in 2009. It is promoted by the Jhawar family of Indore. The company is an approved NCDEX associate for providing warehousing and allied services across India for agricultural commodities and steel. JLL also provides services such as margin financing for commodities stored in its warehouses. JLL opened its first storage facility in 1997 with a capacity of 15000 MT at Agra - Mumbai Highway. The company currently operates 125 warehouses across 35 cities all over India. It owns one warehouse in Indore whle all the other warehouses are on lease. JLL with 99 accredited warehouses is the second largest warehousing partner for NCDEX after National Collateral Management Services Limited which is the largest partner with 114 warehouses. Going forward the company plans to incur a capex of around 130 crores for conversion of leased warehouses to owned warehouses. IL&FS PE fund has already invested INR40 crores and balance will be funded through term loans. The debt funded nature of capex is likely to lead to increase in gearing of the company. However in the long-term, the company will save the lease rentals on warehouses which will improve its profitability and cash accruals. Company Profile JICS Logistic Limited (JLL) was set up in 1996 as a partnership firm and was incorporated into a private limited company in 2009. The company is promoted by the Jhawar family of Indore. JLL is an approved National Commodity and Derivatives Exchange Limited (NCDEX) associate for providing warehousing and allied services across India for agricultural commodities and steel. Recent Results In FY 2010-11 JICS Logistic Limited (JLL) reported a profit after tax (PAT) of INR 8.60 crores on an operating income of INR 26.86 crores as against PAT of INR 1.99 crores on an operating income of INR7.02 crores during FY 2009-10. KIMPLAS PIPING: ICRA Assigns '[ICRA]BB-' to INR30cr LT Loan ----------------------------------------------------------- ICRA has assigned '[ICRA]BB-' rating to the INR 30 crore long term bank limits of Kimplas Piping Systems Limited. The outlook on the long term rating is stable. The rating is constrained by highly leveraged capital structure resulting from the large capital expenditure and working capital requirement, low net profitability on account of high interest and depreciation costs and small scale of operations of the company. Nevertheless the rating is supported by the steady growth in revenue and diversified clientele of KPSL. ICRA also notes that KPSL has the international certifications and manufacturing capabilities to supply electrofusion/compression fittings for gas and water distribution systems where it faces limited competition and expects favorable market potential. However, it remains exposed to regulatory risk for award of new contracts in city water and gas distribution systems. About Kimplas Piping Kimplas Piping Systems Limited was incorporated on 8th February 1996 as George Fischer Trenton Limited. The company started its manufacturing facilities in 1997 to produce electro-fusion fittings required for polyethylene piped city gas distribution systems used by gas companies like Mahanagar Gas and Gujarat Gas. KPSL has expanded its product line of electro fusion fittings and added compression fittings, valves and components (emitters and filters) for micro irrigation systems. Currently they manufacture a wide range of electrofusion fittings, compression fittings, transition fittings and specialized housing service connections from polyethylene mains. KPSL also has a wholly owned subsidiary in UK, Kimplas Limited to tap the markets in UK. During CY09, the subsidiary recorded a turnover of INR2.56 crore. PRATEEK APPARELS: ICRA Reassigns '[ICRA]B' Rating to INR35cr Loan ----------------------------------------------------------------- ICRA has re-assigned '[ICRA]B' rating to the INR 35.00 crore term loan facilities and INR35.00 crore fund based facilities of Prateek Apparels Private Limited. ICRA has also re-assigned '[ICRA]A4' rating to the INR45.00 crore fund based facilities and the INR6.00 crore non-fund based facilities of PAPL. 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 11 Coupon stores across India and 102 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). SATIA INDUSTRIES: ICRA Puts '[ICRA]B-' on INR68.77cr Loan Rating ---------------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B-' to the INR41.0 Crore fund based working capital limits and the INR68.77 Crore term loans of Satia Industries Limited. ICRA has also assigned a short term rating of '[ICRA]A4' to the INR17.5 Crore non fund based working capital limits of SIL. Further, ratings of [ICRA]B- and [ICRA]A4 have been assigned to the INR32.73 Crore unallocated limits of SIL. The ratings are constrained by fragmentation and high competitive intensity in the paper industry with the presence of a large number of manufacturers; vulnerability of profitability to cyclicality inherent in the industry and planned debt funded capacity expansion which is expected to lead to deterioration in the capital structure of the company. ICRA notes that the company had been facing liquidity constraints in the past as reflected in delays in the servicing of debt obligations which have since been corrected in the past few months. Nevertheless, while assigning the ratings, ICRA has favorably factored in the long track record of the promoters in printing and writing paper business; consistently healthy plant capacity utilization levels; favorable location of the manufacturing facility in the agricultural belt of Punjab, which ensures availability of raw materials; operational competitiveness of the company due to captive power generation and chemical recovery facilities which aid in reducing the power and chemical cost respectively and favourable demand outlook from the education sector. About Satia Industries Satia Industries Ltd., SIL (formerly, Satia Paper Mills Ltd) was incorporated in 1980. SIL manufactures printing and writing paper and has a capacity of 40,000 MTPA. The company has a fully integrated paper mill, with a pulping facility based on agricultural residue and a chemical recovery plant. The company also has captive power plants with generation capacity of 10MW. Recent Results: SIL reported net sales of INR320.40 Crore and a net profit of INR5.44 Crore during financial year 2010-11. The company had reported net sales of INR259.66 Crore and a net profit of INR7.15 Crore during 2009-10. SHAMBHU TEXTILE: Delays in Debt Repayment Cues ICRA Junk Rating --------------------------------------------------------------- A rating of '[ICRA]D' has been assigned to the INR 10.49 crore term loans and INR 4.25 crore cash credit facility of Shambhu Textile Mills Private Limited. Also, a rating of '[ICRA]D' has been assigned to the INR 0.30 crore, short-term, non-fund based facilities of STMPL. The ratings are constrained by the delays in debt servicing due to stretched liquidity position, modest size of operations and the weak financial profile characterized by low net margins, high gearing levels, stretched working capital indicators and high working capital utilization levels. The ratings are further constrained by the highly competitive nature of fabric processing industry resulting from large number of process houses, vulnerability of profitability and cash flows to the cyclicality inherent in the textile industry and to raw material price fluctuations which may not be passed on to the customers. The ratings have however favorably taken into account the long standing presence of the company in the business of fabric processing, favorable location giving it easy access to number of customers due to presence of several textile mills as well as the moderately diverse profile resulting from the addition of the embroidery unit. About Shambhu Textile Shambhu Textile Mills Private Limited was incorporated by Mr. Anil Agarawal and Mr. Nilesh Agarwal in September 1996. It is in the business of processing of the fabric, viz. bleaching, dyeing, printing and finishing of polyester and cotton fabric with its manufacturing unit located in Narol, Ahmedabad. STMPL also started with an embroidery job work unit in 2008. The promoters of the company belong to the "Kashiram group" which has been involved with the textile industry in Ahmedabad for more than 3 decades. Recent Results: During FY11, STMPL reported an operating income of INR 38.14 Cr. and profit after tax of INR 0.14 Cr. S.K. EXPORTS: ICRA Places '[ICRA]BB+' Rating on INR10cr Loan ------------------------------------------------------------ A long term rating of '[ICRA]BB+' has been assigned to the INR10.00 crore fund based facility and a short term rating of '[ICRA]A4+' has been assigned to the INR 0.50 crore non fund- based bank facility of S.K. Exports. The outlook assigned on the long term rating is Stable. The rating favorably factors in the promoter's experience in the leather business and its moderate financial risk profile at present characterized by moderate profitability, comfortable gearing and healthy return indicators. The ratings are however constrained by the firm's small scale of operations, volatility in the operating margins owing to the competition prevailing in the market and susceptibility of margins to foreign exchange rate fluctuations, though mitigated by entering into forward contracts and high client concentration risk. ICRA also notes that the risk of capital withdrawal remains given its constitution as a partnership firm which can adversely impact capital structure. About S.K. Exports M/s. S.K.Exports was established on April 1, 1989 as a partnership firm by Mr. Sanjay Jawaharlal Khanna and Mr. Sailesh Jawaharlal Khanna. The firm is engaged in the business of manufacturing and exporting of leather goods. SKE has a registered office at Lower Parel, Mumbai. SKE has two manufacturing units, located in Mumbai and Kolkata with a combined manufacturing capacity of 10,000 pieces of handbags and 15,000 pairs of footwear per month. Recent Results: During 2010-11, the firm has reported a net profit of INR 2.17 crores on an operating income of INR 30.07 crores. During 2009- 10, SKE registered a profit after tax of INR 1.94 crores on an operating income of INR 22.60 crores. SRI BALAJI: ICRA Assigns '[ICRA]B+' Rating to INR6cr Loan --------------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B+' to the INR6.00 crore fund based facilities of Sri Balaji Traders. ICRA has also assigned short-term rating of '[ICRA]A4' to the INR3.00 crore non-fund based facilities of SBT. The ratings take into account the intensely competitive and low value additive nature of the paper trading business, SBT's modest scale of operations, which results in limited economies of scale, and its low profitability and modest cash accruals. Low margins coupled with high working capital borrowings affect the capitalization and coverage indicators of the entity. The ratings, however, draws comfort from promoter's long track record in the business of trading and paper processing and its reputed customer profile. About Sri Balaji Sri Balaji Traders promoted by Mr. U. S. Sanjeevi in 1981 as a sole proprietorship firm and is primarily engaged in trading and distribution of all types of papers and boards, news print paper and waste paper. The Firm's warehouse facilities are located in Rajapalayam, Coimbatore and Sivakasi. The firm procures raw material from both domestic and international market, process it into reel form as per client's requirement and finally sells it as finished product in the domestic market . Recent Results: SBT's net profit for the first half of fiscal 2011-12 stood at INR0.19 crore on operating income of INR7.93 crore. VARDHMAN ADARSH: ICRA Assigns '[ICRA]BB-' Rating to INR6cr Loan --------------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]BB-' to INR 6.00 crore Cash Credit facility and INR 2.00 Term Loan facility of Vardhman Adarsh Ispat (P) Limited. The outlook on the long-term rating is stable. The ratings takes into account VAIPL's modest scale of operations, it's relatively low value additive nature of the business and high competitive pressures in the steel rolling business. These factors have resulted in modest operating margins and this is unlikely to change significantly in the medium term. However the ratings draw comfort from the long experience of promoters and strong relationship with its client base. The assigned ratings also positively factors in the synergies enjoyed by VAIPL with its group companies in both procurement of raw material and distribution of finished goods. Vardhman Adarsh Ispat (P) Limited is engaged in the manufacturing of steel TMT bars with the manufacturing facility situated in Gobindhgarh, Punjab . The company manufactures TMT bars which conform to IS codes of standards, and are primarily used in the construction business. In FY 2011, the company reported an operating income of INR 108.38 crore and profit after tax of INR 0.24 crore. VARUN VINIMAY: ICRA Assigns [ICRA]BB Rating to INR14cr Bank Loan ---------------------------------------------------------------- ICRA has assigned an '[ICRA]BB' rating to the INR 14.00 crore fund based bank facilities and INR 4.00 crore of proposed bank facilities of Varun Vinimay Private Limited. The outlook on the long term rating is stable. ICRA has also assigned an '[ICRA]A4' rating to the INR4.00 crore non-fund based bank facilities of VVPL. The ratings take into consideration the experience of the promoters in steel industry, VVPL's proximity to suppliers of raw material which reduces freight costs as well as mitigates the risk of unavailability to an extent and its diversified customer base. The ratings, however, also take into account the cyclicality inherent in the steel business which makes profit and cash flow volatile to fluctuations in prices, VVPL's relatively moderate scale of operation with low capacity utilization levels over the last two years, its depressed level of coverage indicators and high level of receivables, increasing its overall working capital requirement. VVPL has derived a significant portion of its revenues from trading activities over the years which has impacted its profitability as reflected by its low profits and cash accruals. About Varun Vinimay Varun Vinimay Private Limited, incorporated in 1997 by Mr Om Prakash Agarwala, is involved in the manufacturing of Mild Steel (MS) products like rounds, squares, flats, angles and channels. The company currently has a rolling mill of a capacity of 30,000 metric tonne per annum (MTPA) at Howrah, West Bengal. Apart from manufacturing, the company is also involved in trading of products like MS rounds/ flats, TMT Bars and Mixed Structures. Recent Results: The company reported a net profit of INR 0.42 crore in 2010-11 on an operating income of INR 85.45 crore, as compared to a net profit of INR 0.41 crore on an operating income of INR 73.77 crore during 2009-10. ================= I N D O N E S I A ================= BERLIAN LAJU: S&P Affirms 'B-' Corp. Credit Rating; Outlook Neg. ---------------------------------------------------------------- Standard & Poor's Ratings Services revised the rating outlook on PT Berlian Laju Tanker Tbk. (BLT) to negative from stable. "At the same time, we affirmed the 'B-' long-term corporate credit rating on BLT. We also affirmed the 'CCC' issue rating on the $400 million senior unsecured notes due 2014 issued by BLT Finance B.V., a wholly owned subsidiary of BLT," S&P related. "We revised the rating outlook to reflect our view that refinancing risks concerning BLT's short-term debt maturities are likely to rise. This pressure is occurring at a time when bunker prices are keeping operating costs high, offsetting the improvement in freight rates for chemical tankers through most of this year," said Standard & Poor's credit analyst Manuel Guerena. Standard & Poor's acknowledges that BLT's liquidity benefited from several refinancing activities earlier this year. In February, the company took out a $685 million term loan. A $93.5 million sale-and-lease back contract soon followed. In May 2011, BLT's Indonesian subsidiary PT Buana Listya Tama Tbk. became publicly listed. This subsidiary was responsible for 31% of BLT's EBITDA during the first half of 2011. Since the IPO, BLT is no longer in exclusive control of Buana's assets and cash flows. BLT raised the equivalent of about US$120 million for exchange of 38% of its shares in Buana. However, BLT's new debt facilities added more debt to highly leveraged BLT, and a sharp rise in bunker fuel prices exacerbated its complex situation. Prices have now stabilized, but remain high. "We believe the company's high leverage is unlikely to improve in the next few quarters. Its operating-lease-adjusted ratio of debt to annualized EBITDA was a high 9.9x in the six months ended June 30, 2011. The ratio was, however, marginally better than the 10.3x in 2010," S&P said. The affirmed rating also reflects: -- BLT's good competitive position, anchored in its relatively young and technically advanced chemical tanker fleet, largely comprising stainless steel, double-hull IMO II and III parcel tankers; -- the phasing-out of single-hull vessels in the industry, as required by the International Maritime Organization, and a relatively small number of chemical tankers in BLT's orderbook; -- earnings stability through contracts of affreightment and charters, which provide little more than 50% of BLT's revenues; and -- favorable cabotage regulation for all intra-Indonesian seaborne assets, with most charters under long-term contracts. "Our negative outlook assumes that BLT's freight rates will continue to improve in its chemical tanker segment, but volatility and cost and cash flow pressures will remain considerable, adding to the company's refinancing risks," said Mr. Guerena. "We will consider a downgrade if the company is unable to put a reasonable refinancing plan in place by the end of 2011, or before, if weaker-than-expected cash flows further depress its credit protection measures because of lower freight rates for chemical tankers or growing bunker fuel prices. Difficulty in accessing the capital market in Indonesia could also prompt us to lower the rating," S&P stated. A positive rating action would depend on BLT's ability to resolve its liquidity pressure and to consistently decrease its debt-to- EBITDA ratio towards a sustainable 5.x level. ========= J A P A N ========= TAKEFUJI CORP: Tokyo Court OKs Plan to Repay 20% of $20BB Debt -------------------------------------------------------------- Lisa Uhlman at Bankruptcy Law360 reports that Takefuji Corp. said that a Tokyo court confirmed the company's reorganization plan after most creditors voted in support of the plan, which will repay 20% of its total debt of JPY1.5 trillion ($19.8 billion). Law360 relates that 100% of secured creditors voted in favor of the plan, while 85.43% of unsecured creditors voted for it. According to the company, it will begin making repayments under the plan in mid-December. About Takefuji Takefuji Corporation (TYO:8564) -- http://www.takefuji.co.jp/-- is a Japan-based company mainly engaged in the consumer finance business. The Company operates in two business segments. The Consumer Finance segment covers the loan and credit card businesses. The Others segment is involved in the operation of golf courses, the development, management and leasing of real estate, the venture capital business, as well as the investment business, among others. The Company has eight subsidiaries. Takefuji filed a bankruptcy petition with the Tokyo District Court on Sept. 28, 2010, with debts of JPY433.6 billion. Bloomberg News has said the company has become the biggest casualty of Japan's four-year crackdown on coercive lending practices by consumer finance companies. The lender is seeking to restructure as borrower claims of overpaid interest are estimated to exceed JPY1 trillion. ==================== N E W Z E A L A N D ==================== AORANGI SECURITIES: Jean Hubbard Out of Statutory Management ------------------------------------------------------------ The National Business Review reports that Jean Hubbard, wife of the late failed financier Allan Hubbard, has been removed from statutory management, effective on Nov. 13, 2011. The news agency relates that Commerce Minister Simon Power said he had received a report from the Registrar of Companies that it was no longer necessary to keep Mrs. Hubbard in statutory management. "The Registrar of Companies has advised me that in the opinion of the statutory managers, Mrs. Hubbard is no longer so closely connected to the business of Aorangi Securities Ltd that she must remain under statutory management. The Registrar is also of this view," NBR quotes Mr. Power as saying. Sir John Anderson and Rod Pardington were appointed by the Registrar of Companies on May 5 to review the statutory management of Mrs. Hubbard and her late husband, NBR recounts. According to NBR, Sir John has now reported that the statutory managers have effective control of those assets of Aorangi in respect of which it is legally possible in the circumstances. Mr. Power said that in his opinion, the termination of Mrs. Hubbard's statutory management will not detrimentally affect the statutory management of those particular assets, NBR reports. "Taking all of this advice together, I am satisfied that the statutory managers have made good progress and that the connection between Mrs. Hubbard and the business of Aorangi no longer prevents the statutory managers from exercising their powers," Mr. Power said. Mr. Power, as cited by NBR, said because there are complex issues in the Aorangi statutory management, including proceedings before the courts, it is not appropriate to make further comment. About Aorangi Securities Aorangi Securities Ltd was incorporated in 1974 and is solely controlled by the Hubbards. On June 20, 2010, Aorangi Securities and seven charitable trusts were placed into statutory management, and Allan and Jean Hubbard were also placed into statutory management as "associated persons" of those entities. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. The Temple Bar Family Trust and Barns Charitable Trust were also put into statutory management in September 2010 on recommendation from the Securities Commission. Hubbard Churcher Trust Management and Forresters Nominees Company were also added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn on September 20, 2010. The Troubled Company Reporter-Asia Pacific reported on May 12, 2011, that the Hubbards filed judicial review proceedings at the Timaru High Court challenging the decision to place them into statutory management and seeking orders that they be removed from statutory management. On June 20, 2011, the Serious Fraud Office laid 50 charges under Crimes Act against Allan Hubbard in relation to its investigation into the affairs of Aorangi Securities Ltd; Hubbard Management Funds; and ASL directors Allan and Margaret (Jean) Hubbard. The SFO has dropped the fraud charges against Allan Hubbard following Mr. Hubbard's death on September 2. ********* 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., Frederick, Maryland, USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Psyche A. Castillon, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2011. 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$625 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 Christopher Beard at 240/629-3300. *** End of Transmission ***