/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120312.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, March 12, 2012, Vol. 15, No. 51 Headlines A U S T R A L I A RIVIERA: 90 Jobs Axed as Bankers Accept Buyout Offer C H I N A CENTRAL CHINA: Consent Solicitation No Impact on Ratings H O N G K O N G ETERNITY LOGISTICS: Court to Hear Wind-Up Petition on May 2 GERMANY DULEY: Court Enters Wind-Up Order GOLDSON CORPORATION: Court Enters Wind-Up Order INFOSTAR INVESTMENT: Court Enters Wind-Up Order KIN TAI: First Meetings Slated for March 27 KWG PROPERTY: S&P Affirms 'BB-' Corporate Credit Rating MAPJACK INTERNATIONAL: Court Enters Wind-Up Order MINSOURCE INTERNATIONAL: Court Enters Wind-Up Order RENCO TRADING: Court Enters Wind-Up Order SUPER ENERGY: Court to Hear Wind-Up Petition on May 9 WIDER RIVER: Lau and Liang Step Down as Liquidators WING YIP: Lam Hok Chung Rainier Steps Down as Liquidator YICK SUN: Court Enters Wind-Up Order I N D I A BANK OF INDIA: Moody's Cuts Hybrid Tier 1 Debt Rating to 'Ba3' BCC INFRACON: CARE Assigns 'CARE B+' Rating to INR4cr Loan DATTA AGRO: CARE Assigns 'CARE BB' Rating to INR14.94cr Loan KESAR ENTERPRISES: CARE Reaffirms 'BB' Rating to INR197cr Loans KUNJA BINODINI: CARE Rates INR5cr Longterm Loan at 'CARE BB' LUXMI RICE: CARE Rates INR7cr Long Term Loan at 'CARE B' MARUTI GRANITES: CARE Assigns 'CARE BB' Rating to INR7cr Loan MARUTI PRODUCTS: CARE Assigns 'CARE B+' Rating to INR12.44cr Loan NIIL INFRASTRUCTURES: CARE Rates INR34cr LT Loan at 'CARE B+' OSWAL CABLES: CARE Assigns 'CARE BB+' Rating to INR26.66cr Loan SHINDE DEVELOPERS: CARE Assigns 'CARE B' Rating to INR24.5cr Loan SHRI LAXMAN: CARE Rates INR6cr Long-Term Loan at 'CARE B+' VERITAS BIOVENTIONS: CARE Rates INR17.15cr Loan at 'CARE BB-' VIR ALLOYS: CARE Assigns 'CARE BB' Rating to INR26.5cr LT Loan ZED VITRIFIED: CARE Puts 'CARE B+' Rating on INR17.95cr LT Loan J A P A N AIJ INVESTMENT: Human Holdings to Seek Compensation for Losses N E W Z E A L A N D DREAM HOMES: Director Flees to Australia After Liquidation OTAGO RUGBY: Wins More Time to Avoid Liquidation, Finds Rescue OTAGO RUGBY: More Than NZ$300,000 Worth of Pokies Unaccounted PIKE RIVER: Solid Energy Buys Mine; 19 Staff Lose Job - - - - - ================= A U S T R A L I A ================= RIVIERA: 90 Jobs Axed as Bankers Accept Buyout Offer ---------------------------------------------------- Nick Nichols at goldcoast.com.au reports that luxury boatbuilder Riviera was rocked by a new wave of job losses after the company's bankers accepted a buyout offer from Gold Coast businessman Rodney Longhurst. About 90 Riviera workers have been given their marching orders in scenes reminiscent of 2009, when the company nearly collapsed due to massive debt and dwindling global sales, goldcoast.com.au says. According to the report, the job cull began March 8 when workers at Riviera's Coomera factory were briefed on the sale, which will see former chief executive Wes Moxey return to the company helm. The report relates that receivers from Deloitte issued the retrenchment notices, cutting the number of staff and contractors employed by Riviera from about 450 to 340. Financial details of the Riviera sale have not been disclosed but some estimates put the deal as low as AUD18 million, the report notes. According to goldcoast.com.au, Mr. Longhurst, owner of The Boat Works facility at Coomera, has bought Riviera through his private company Longhurst Marine Holdings. He bumped off a rival bid of about $30 million from Riviera founder Bill Barry-Cotter, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on May 12, 2009, Riviera was placed into voluntary receivership. Deloitte partners Chris Campbell, Vaughan Strawbridge and Richard Hughes were appointed receivers and managers of Riviera. According to the Brisbane Times, Mr. Campbell said the company's sales over the past 12 months had been "significantly impacted" by the global financial crisis. It was proposed to sell Riviera as a going concern after a restructuring of the company, he said. Riviera, which was released from voluntary administration in June 2010, now has a combined workforce of about 400, including contractors, goldcoast.com.au discloses. At its peak, the company employed about 1,200 staff, goldcoast.com.au disclosed. Riviera -- http://www.riviera.com.au/-- is a luxury boat builder based in Australia. ========= C H I N A ========= CENTRAL CHINA: Consent Solicitation No Impact on Ratings -------------------------------------------------------- Moody's Investors Service says that there is no immediate impact on Central China Real Estates Ltd's Ba3 corporate family and B1 senior unsecured ratings from the company's consent solicitation. The ratings outlook remains stable. CCRE is soliciting the consent of its bondholders for certain amendments and waivers in relation to the technical breaches to limitations on affiliate transactions and restricted payments stipulated in its USD300 million, 12.25% senior notes due 2015. The company is offering a consent fee of 50 basis points and requires the consent of the majority of its bondholders. The solicitation period will expire at 5:00 p.m. EST on March 16, 2012. "These technical breaches, which happened in 2010 and 2011, suggest weak internal compliance controls. In response, the company is now putting in place various initiatives and adding resources to its compliance controls," says Ken Chan, a Moody's Vice President and Senior Analyst. "We believe the technical breaches will not materially affect CCRE's business fundamentals. Its operating performance has been strong, evident from its contracted sales of RMB8.1 billion in 2011, which was 11% higher than its own target," says Mr. Chan. "CCRE has a good liquidity position, with cash of around RMB3.9 billion as of December 2011." Moody's expects CCRE to obtain the required consent from the bondholders to pass the proposed amendments and waivers within the solicitation period. Moody's will also monitor the formation of the compliance team at CCRE. The principal methodology used in these ratings was Moody's Global Homebuilding Industry, published in March 2009. Central China Real Estate Limited is a leading property developer in Henan Province, China. Founded in 1992, it listed on the Hong Kong Stock Exchange in June 2008. ================ H O N G K O N G ================ ETERNITY LOGISTICS: Court to Hear Wind-Up Petition on May 2 ----------------------------------------------------------- A petition to wind up the operations of Eternity Logistics Limited will be heard before the High Court of Hong Kong on May 2, 2012, at 9:30 a.m. Khan Umar Hayat filed the petition against the company on Feb. 17, 2012. The Petitioner's solicitors are: Burke & Company Rooms 504-5, 5th Floor Seaview Commercial Building 21-24 Connaught Road West, Hong Kong GERMANY DULEY: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on Feb. 29, 2012, to wind up the operations of Germany Duley Holding Limited. The official receiver is Teresa S W Wong. GOLDSON CORPORATION: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on Feb. 29, 2012, to wind up the operations of Goldson Corporation Limited. The official receiver is Teresa S W Wong. INFOSTAR INVESTMENT: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Hong Kong entered an order on Feb. 27, 2012, to wind up the operations of Infostar Investment Limited. The official receiver is Teresa S W Wong. KIN TAI: First Meetings Slated for March 27 ------------------------------------------- Creditors and contributories of Kin Tai Printing Company Limited will hold their first meetings on March 27, 2012, at 2:00 p.m., and 3:00 p.m., respectively at the Official Receiver's Office, 10th Floor, Queensway Government Offices, 66 Queensway, in Hong Kong. At the meeting, Teresa S W Wong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KWG PROPERTY: S&P Affirms 'BB-' Corporate Credit Rating ------------------------------------------------------- Standard & Poor's Ratings Services affirmed its 'BB-' long-term corporate credit rating on China-based property developer KWG Property Holding Ltd. "The outlook is stable. At the same time, we affirmed the 'B+' issue rating on the company's outstanding senior unsecured notes. We also affirmed our 'cnBB+' Greater China credit scale rating on KWG and our 'cnBB' issue rating on its senior unsecured notes," S&P said. "We affirmed the ratings on KWG to reflect our view that the company's financial performance will likely remain satisfactory in 2012 despite continued weakness in China's property market," said Standard & Poor's credit analyst Steffi Chen. "We believe the company can achieve the same level of property sales in 2012 as a year earlier due to its improving geographic and product diversification, good execution capability, and consistent financial management." "In our opinion, KWG has exercised better execution and demonstrated more consistent financial management than its similarly rated peers to counteract the government's tightening measures and weak market sentiment. Our view is reflected in KWG's improved financial performance and credit metrics in 2011," S&P said. "KWG's financial management has been consistent, in our view, even though the company's track record is short. KWG has cautiously managed its leverage and expansion ahead of the latest property market downturn. The company's liquidity is 'adequate', as defined in our criteria. We expect its liquidity sources to exceed uses by 1.2x or more in 2012," S&P said. "In our base-case scenario, we expect KWG's credit protection measures to remain satisfactory and at a level similar to that of 2011. The visibility over the company's financial performance in 2012 is high because the company has Chinese renminbi 8.3 billion in contracted sales that can be brought forward for revenue recognition," S&P said. "The stable outlook reflects the good visibility over KWG's financial performance, which we expect to remain satisfactory in 2012, as reflected in its credit metrics,' said Ms. Chen. We expect KWG to continue to manage its expansion and balance sheet, particularly its leverage, within our expectations," S&P said. "We may lower the rating if KWG's debt-funded expansion is more aggressive than we expected. We could also downgrade the company if its property sales or profitability weaken significantly. This could happen if its liquidity for the next 12 months weakens such that its cash sources are less than 1.2x its cash uses or its ratio of debt-to-EBITDA rises above 5x," S&P said. "We may raise the rating if KWG's property development projects become more diversified and it establishes a track record of consistent and disciplined financial management while pursuing expansion. In particular, we could upgrade KWG if the company sustains an EBITDA margin of more than 30% and a ratio of debt- to-EBITDA of less than 3.5x," S&P said. MAPJACK INTERNATIONAL: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Hong Kong entered an order on Feb. 29, 2012, to wind up the operations of Mapjack International Limited. The official receiver is Teresa S W Wong. MINSOURCE INTERNATIONAL: Court Enters Wind-Up Order --------------------------------------------------- The High Court of Hong Kong entered an order on Feb. 29, 2012, to wind up the operations of Minsource International Limited. The official receiver is Teresa S W Wong. RENCO TRADING: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on Feb. 29, 2012, to wind up the operations of Renco Trading Limited. The official receiver is Teresa S W Wong. SUPER ENERGY: Court to Hear Wind-Up Petition on May 9 ----------------------------------------------------- A petition to wind up the operations of Super Energy International Limited will be heard before the High Court of Hong Kong on May 9, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on Feb. 8, 2012. The Petitioner's solicitors are: Lo & Lo 7th Floor, World-Wide House 19 Des Voeux Road Central, Hong Kong WIDER RIVER: Lau and Liang Step Down as Liquidators --------------------------------------------------- Lau Siu Hung and Liang Yang Keng stepped down as liquidators of Wider River Limited on Feb. 23, 2012. WING YIP: Lam Hok Chung Rainier Steps Down as Liquidator --------------------------------------------------------- Lam Hok Chung Rainier stepped down as liquidator of Wing Yip Company Limited on Nov. 8, 2011. YICK SUN: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on Feb. 29, 2012, to wind up the operations of Yick Sun Finance Company Limited. The official receiver is Teresa S W Wong. ========= I N D I A ========= BANK OF INDIA: Moody's Cuts Hybrid Tier 1 Debt Rating to 'Ba3' -------------------------------------------------------------- Moody's Investors Service has downgraded by one notch the ratings assigned to the various debt programs of Bank of India. The revised ratings are: (P)Baa3 for foreign currency senior unsecured debt program Baa3 for foreign currency senior unsecured debt (P)Ba1 for foreign currency subordinated debt program Ba1 for foreign currency subordinated debt (P)Ba2 for foreign currency junior subordinated debt program and Ba3 for hybrid tier 1 debt (preferred stock non-cumulative). The outlook on the debt and deposit ratings is affirmed at stable. BOI raises foreign currency debt through its London and Jersey branches. "These downgrades are driven by our revision of BOI's bank financial strength rating (BFSR) from D+ to D, now mapping to a baseline credit assessment (BCA) of Ba2. The outstanding local currency deposit rating is downgraded by one notch to Baa3/P-3 from Baa2/P-2, whereas the foreign currency deposit rating is affirmed at Baa3/P-3, and is no longer constrained by the country ceiling," says Vineet Gupta, a Moody's Vice President and Senior Analyst. Rating Rationale The revised BFSR takes into account the accelerated pace of deterioration in BOI's asset quality, its stressed core capital levels and therefore the increasing pressures on its profitability. The BFSR rating also factors in its high single-party exposure to Indian government securities and the government's role in providing management support for Indian public-sector banks. Moody's expects that it will be difficult for BOI to significantly improve its relatively weak asset quality over the next 12 -18 months. The Indian operating environment is characterized by an economic slowdown, high interest rates, and high inflation, which together will continue to adversely impact the repayment capacity of corporate borrowers. Such a situation poses risks of further deterioration in the bank's asset quality. Moody's views, as evidence of this trend, the rapid increase in the formation rate of non-performing loans (NPL) at BOI to 3.2% on an annualized basis during the 9 months ended December 2011 from 1.7% for the year-ended March 2011. Moody's analysis also considers the bank's comparatively low provisioning cover as well as its recent sharper decline in net income relative to its Ba1-rated peers. This includes a 14% drop in net income levels, while its return on risk weighted assets decreased to 1.03% on an annualized basis during the 9 months ended December 2011 from 1.51% a year ago. Such figures compare weakly with its peers and indicate a vulnerability in the bank's already stressed capital buffers. In addition, its core tier 1 capital level stood at 7% as of 31 March, 2011, and which not only compares weak against its peers, but is also exacerbated by low internal capital generation of under 1% of risk weighted assets. On the other hand, the ratings also reflect BOI's comfortable liquidity and funding profiles, as well as its franchise value as the fourth largest public-sector bank in India in terms of total assets. The rating outlook and D BFSR would come under pressure within the next 12 months, if BOI continues to experience the pace of deterioration in asset quality, capitalization and profitability indicators seen for the 9 months ended December 2011. The supported ratings of its senior debt program at (P)Baa3, subordinated debt program at (P)Ba1, and junior subordinated debt at Ba2 could also be downgraded if the assumptions regarding support available to BOI or Moody's notching principles underwent any change. In the current prevailing Indian operating environment, Moody's does not expect BOI's D BFSR and supported ratings for local currency deposits at Baa3/P-3 to be upgraded over next 12-18 months. The methodologies used in this rating were Bank Financial Strength Ratings: Global Methodology published in February 2007, Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology published in March 2007, and Moody's Guidelines for Rating Bank Hybrid Securities and Subordinated Debt published in November 2009. BOI, headquartered in Mumbai, had assets of INR3,511 billion as of March 31, 2011. BCC INFRACON: CARE Assigns 'CARE B+' Rating to INR4cr Loan ---------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of BCC Infracon Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 4.00 CARE B+ Assigned Short-term Bank Facilities 5.00 CARE A4 Assigned Rating Rationale The ratings are constrained by the moderate financial profile of BCC marked by declining income, moderate profitability and the overall gearing along with elongated working capital cycle, limited segmental diversity and concentrated order book in the few clients. However, the ratings are underpinned by the experienced promoter, reputed clientele and satisfactory order book position. The ability of the company to increase its scale of operations along-with timely receipt of payments from debtors and improve the liquidity position are the key rating sensitivities. BCC Infracon Pvt Ltd was incorporated in May 2009 by Mr. P Ranga Raju along with his wife Mrs. P Hema Malini in order to take over the business of the partnership firm Brothers Construction Corporation. The firm was incorporated in 1992 by Mr. Raju along with his two brothers to do the business of civil construction on contractual basis. During February 2010, the business of the partnership firm was taken over by BCC. During FY11 (refers to the period April 1 to March 31), BCC has made a PAT of INR0.31cr (INR0.30cr for FY10) on a total income of INR8.43 cr (INR8.53 cr for FY10). DATTA AGRO: CARE Assigns 'CARE BB' Rating to INR14.94cr Loan ------------------------------------------------------------ CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Datta Agro Services Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 14.94 CARE BB Assigned Short-term Bank Facilities 8.00 CARE A4 Assigned Rating Rationale The ratings of Datta Agro Services Private Limited are primarily constrained by the short track record of manufacturing operations in the highly fragmented and regulated fertilizer industry and leveraged capital structure on account of recently completed debt-funded capex. The ratings are further constrained by the volatility associated with raw material prices, foreign exchange fluctuation risk and high dependence on monsoon. The above constraints are partially offset by the long standing track record of the promoters in the fertilizers industry, DASPL's proximity to the consumer market and established marketing network. DASPL's ability to increase its market presence and improvement in profitability margins along with effective working capital management and any adverse government policies towards the fertilizer industry are the key rating sensitivities. About Datta Agro Jalgaon-based Datta Agro Services Pvt Ltd was promoted by Mr. Murlidhar Patil for manufacturing of Single Super Phosphate (SSP) fertilizer in 2007. DASPL's manufacturing plant is having an installed capacity of 1,32,000 Metric Tonne Per Annum (MTPA). The company started manufacturing operations from September 2011 and markets its product under brand name "Satpuda". KESAR ENTERPRISES: CARE Reaffirms 'BB' Rating to INR197cr Loans --------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Kesar Enterprises Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term loans 131.23 'CARE BB' Reaffirmed Long-term Bank Facilities 66.30 'CARE BB' Reaffirmed Short-term Bank Facilities 0.20 'CARE A4' Reaffirmed Rating Rationale The ratings continue to be constrained by weak financial performance in FY11 (refers to the period July 1 to June 30) characterized by decline in profitability margins and high gearing levels. Further, the ratings continue to be constrained by the ongoing debt funded capital expenditure and the cyclical and highly regulated nature of the sugar industry. However, the ratings derive strength from long track record and experience of the promoters and professional management of Kesar Enterprises Ltd. and its status as a proposed fully integrated sugar unit post setting up of the proposed cogen power plant. The company's ability to improve the financial risk profile in terms of profitability and capital structure and timely and successful commissioning of ongoing cogen project remains key rating sensitivities. About Kesar Enterprises Kesar Enterprises Ltd., originally established as Kesar Sugar Works Ltd. by Shri Kilachand Devchand in October 1933, was renamed to its present name in 1985. KEL set up its sugar factory with installed capacity of 800 TCD at Baheri, Dist: Bareilly, Uttar Pradesh. Over the years the installed capacity of the sugar plant has been increased to 7200 TCD. To mitigate the seasonal and cyclical impact of the sugar business, the company also set up a molasses based distillery with a capacity of 50 KLPD for the manufacture of Extra Neutral Alcohol, Rectified Spirit (RS) and Indian Made Foreign Liquor. In order to complete integration and reduce power costs, KEL has undertaken to set up a fully automated bagasse fired co-generation power plant of 44MW which is expected to commence power generation from April 2012. KEL also has Agrotech & Seed division which are into development of pesticides and both Hybrid and Open Pollinated varieties of seeds. The company had a storage division which was demerged into a separate company, viz. Kesar Terminals and Infrastructure Limited w.e.f. January 1, 2009. During FY11, KEL registered a total income of INR 371.01 crore with PAT of INR 3.62 crore as compared to total income of INR203.63 crore and PAT of INR 4.39 crore in FY10. KUNJA BINODINI: CARE Rates INR5cr Longterm Loan at 'CARE BB' ------------------------------------------------------------ CARE assigns 'CARE BB' rating to the bank facilities of Kunja Binodini Charitable Trust. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term bank facilities 5.0 CARE BB Assigned Rating Rationale The rating is constrained by the short track record of operations of the trust, regulated and fragmented nature of the education sector leading to high competition and high debt equity ratio. The constraints are partially offset by experience of the trustees, high enrolment rate in the institution on the back of satisfactory infrastructure and experienced faculty members, diverse course curriculum and buoyant prospects of educational sector in India. Ability to sustain and improve current enrolment rate and establishment of strong brand image by the institution will be the key rating sensitivities. Kunja Binodini Charitable Trust was formed in the year 2007 as a public charitable trust registered under Section 12A of the Income Tax Act, to establish an Engineering and Management college in Bhubaneswar (Odisha). Engineering college commenced operations in the academic year 2008-2009 under the name of "Hi- Tech Institute of Technology". Other courses like Master of Business Administration (MBA), B. Tech (Information Technology) etc. were included afterwards. The College is approved by All India Council for Technical Education (AICTE) and affiliated to "Biju Patnaik University of Technology". The day to day activities of the trust are managed by Mr Tirupati Panigrahi (Chairman), who is assisted by other trustees (the members of aforesaid committee). He is also the chairman of Vigyan Bharati Charitable Trust (rated 'CARE BB'/'CARE A4'), which runs a number of education institutes, medical colleges & hospitals. KBCT earned a surplus before interest & depreciation of INR2.4 crore and a net surplus of INR0.8 crore on net revenue of INR5.4 crore in FY11 (refers to the period from April 2010 to March 2011). LUXMI RICE: CARE Rates INR7cr Long Term Loan at 'CARE B' -------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facility of Luxmi Rice Mills. Facilities (INR crore) Ratings ----------- ----------- ------- Long term bank facilities 7.0 'CARE B' Assigned Rating Rationale The rating assigned by CARE is based on the capital deployed by the proprietor and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of the capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. The rating is constrained by weak financial position owing to high working capital intensity & reliance on unsecured debt to fund capital requirement, high level of government regulations and seasonal nature of rice industry with exposure to vagaries of nature. The rating is also constrained by its proprietorship nature of the constitution with small size of operation. However, the rating is underpinned by the experience of proprietor, long track record of operation and proximity to raw material sources. LRM's ability to improve the profitability margins, liquidity position & capital structure thorough effective management of working capital would remain the key rating sensitivities. M/s. Luxmi Rice Mill, a proprietorship firm, was setup in the year 1983 by Shri Roshan Lal. The firm is engaged in milling and processing of rice and currently, has a processing capacity of 1 tonne per hour (TPH). The mill is situated in Nissing village in Karnal district, Haryana, where more than 200 rice mills are operating. During FY11 (refers to the period from April 1 to March 31), LRM had reported a net sales of INR14.9 crore (FY10: INR16.2 crore) and a PAT of INR0.04 crore (FY10: INR0.03 crore). MARUTI GRANITES: CARE Assigns 'CARE BB' Rating to INR7cr Loan ------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Maruti Granites And Marbles Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 7.00 CARE BB Assigned Short-term Bank Facilities 3.50 CARE A4 Assigned Rating Rationale The ratings are constrained by Maruti Granites and Marbles Private Limited's low capacity utilization levels leading to thin profitability margins, moderate liquidity position marked by long operating cycle and impact of Government regulations on the marble industry. The ratings are further constrained by project implementation risk and competition from substitutes in the industry. The ratings however, recognize the experience of the promoters, established track record of the company, growth in revenue and the company's captive quarries with mining rights. Its ability to improve operating cycle while managing inventory holding days and complete the project within the envisaged cost and time parameters would by the key rating sensitivities. About Maruti Granites Maruti Granites & Marbles Private Limited was incorporated in the year 1987 by its Directors, Mr. Paras Rajgarhia, Mr Prakash Rajgarhia and Mr. Prabhash Rajgarhia. MGMPL's line of business includes manufacturing and selling marble blocks, polished marble slabs and tiles; locally as well as internationally. The company has been into marble business for more than two decades with manufacturing facility located at Sukher, Udaipur, Rajasthan. The company has an manufacturing capacity of 2,00,000 sq ft per month of marble slabs and tiles. The company has mining quarries in Dhariwad & Rishabhdev specializing in processing green marble which is supplied to its export-oriented group concern i.e., Abhishek Exports. MARUTI PRODUCTS: CARE Assigns 'CARE B+' Rating to INR12.44cr Loan ----------------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Maruti Products Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 12.44 CARE B+ Assigned Rating Rationale The rating is primarily constrained on account of nascent stage of operations of Maruti Products Pvt. Ltd. with limited experience of the promoters in the Steel billets industry and leveraged capital structure. The rating are further constrained due to the fragmented nature of the industry with high degree of competition and volatility associated with raw material prices. These constraints outweigh the benefits derived from qualified promoters and key management personnel with rich experience in industry. Ability to achieve the envisaged level of sales and managing raw material price volatility risk coupled with improvement in capital structure are the key rating sensitivities. About Maruti Products Maruti Products Pvt. Ltd., incorporated in April 2010, is promoted by Mr. Varun Agrawal and Mr. Akhilesh Agrawal to set up a Greenfield project to manufacture steel billets with an installed capacity of 27,000 MTPA. The project was completed in April 2011 and MPPL has incurred INR10.70 crore towards the same which was funded through term loan of INR7.80 crore and balance through promoters' contribution. Prior to venturing into steel products manufacturing, the promoters were engaged in trading of steel products for more than a year. NIIL INFRASTRUCTURES: CARE Rates INR34cr LT Loan at 'CARE B+' ------------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Niil Infrastructures Limited. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 34.00 CARE B+ Assigned Rating Rationale The rating is primarily constrained on account of project implementation risk associated in light of delay in sole real estate project of NIIL Infrastructure Limited coupled with lower booking status and the inherent risk associated with the real estate industry in light of the rising interest rate scenario. The rating, however, favorably takes into account the rich promoters' experience in the real estate industry through other group concerns. Successful completion of the projects as per schedule with timely receipt of envisaged booking advances and impact on cash flow due to higher usage of surplus funds for projects other than envisaged are the key rating sensitivities. About Nikhil Infrastructures Nikhil Infrastructures Indus Ltd. was incorporated on October 9, 2007 as a limited company to carry out the real estate business. On April 7, 2010 the name of the company was changed to NIIL Infrastructures Limited. NIIL was promoted by Lt. Vinay Bhadauria, who is engineer by qualification and has rich experience in the logistics and management at Naval Dockyard, Mumbai of Indian Navy. NIIL belong to IBD group of Bhopal, which has completed various projects such as Indus Park, Indus Plaza, Indus Towne, Indus Gardens, Indus Citi, Indus Estate etc. in Bhopal. At present, NIIL is executing residential project at Agra which is divided into two projects namely Vrindavan Heights and Florence Platinum. The total build up area of the two projects is estimated to be 6, 96,324 sq ft. OSWAL CABLES: CARE Assigns 'CARE BB+' Rating to INR26.66cr Loan --------------------------------------------------------------- CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank facilities of Oswal Cables Pvt. Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 26.66 CARE BB+ Assigned Short-term Bank Facilities 55.00 CARE A4+ Assigned Rating Rationale The ratings are constrained by the modest scale of operations of Oswal Cables Pvt. Ltd., its declining profit margins, leveraged capital structure and high working capital intensity of its operations. The ratings are further constrained by the susceptibility of its margins to adverse raw material price fluctuations and its presence in a highly competitive and tender- driven business with subdued outlook of cable & conductor industry. The ratings, however, draw strength from the vast experience of the promoters and established track record of operations of OCPL. Increase in scale of operations, improvement in profitability in the wake of fluctuating raw material prices and efficient working capital management are the key rating sensitivities. Incorporated in 1971, OCPL is promoted by Mr. Laxmi Chand Talera and is engaged in manufacturing aluminium conductors, cables and transformers for overhead power transmission and distribution lines at its manufacturing facilities in Jaipur and Hyderabad. OCPL also has a presence in engineering, procurement and construction (EPC) segment for turnkey transmission and distribution projects wherein it benefits from its established presence in conductors and power cables business. During FY11 (refers to the period April 1 to March 31), OCPL earned a PAT of INR2.97 crore on a total operating income of INR96.73 crore as against a PAT of INR2.73 crore on a total operating income of INR80.89 crore in FY10. SHINDE DEVELOPERS: CARE Assigns 'CARE B' Rating to INR24.5cr Loan ----------------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Shinde Developers Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 24.50 CARE B Assigned Short-term Bank Facilities 45.00 CARE A4 Assigned Rating Rationale The ratings are constrained by below average financial risk profile characterized by high gearing and stretched liquidity, fixed price contracts exposing profitability to adverse movement in the raw material prices and exposure to geographical and client concentration risk in the existing order book. However, the ratings derive strength from the experience of the promoters and strong order book position providing medium-term revenue visibility. Ability of the company to improve the liquidity profile remains the key rating sensitivity. Incorporated on Sept. 19, 1997, Shinde Developers Private Limited is engaged in the infrastructure development, executing civil projects such as construction and designing of roads and highways, bridges, tunnels, dams, canals, irrigation etc. SDPL is promoted by Mr. Sunil B. Shinde. The company receives construction related contracts both from the government departments as well as private sector companies. SDPL reported a PAT of INR4.57 crore on a total operating income of INR66.35 crore for FY11 (refers to the period April 1 to March 31) as compared to a PAT of INR2.92 crore on a total operating income of INR60.63 crore for FY10. Furthermore, during the period of nine months ending Dec. 31, 2011, SDPL reported a PAT of INR0.81 crore on a total operating income of INR54.75 crore. SHRI LAXMAN: CARE Rates INR6cr Long-Term Loan at 'CARE B+' ---------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Shri Laxman Education Trust. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.00 CARE B+ Assigned Rating Rationale The rating of Shri Laxman Education Trust is primarily constrained due to its very short track record of operations due to the recent start of the greenfield school project and lack of experience of the promoters in the field of education. The rating also factors in high level of competition from various established schools in the region and the highly regulated education industry. Above constraints are partially offset by tie-up with Delhi Public School Society for its school operations. Ability to attract the students and achieve the envisaged enrolment would be the key rating sensitivity. Gwalior (M.P.) based, Shri Laxman Education Trust was incorporated in 2009 as trust under the Madhya Pradesh Sarvajanik Nyas Adhiniyam Act, 1951 by Mr. Sanjay Garg and Mrs. Anjali Garg with the object of setting up educational institutions. SLET has recently commissioned the school and entered into a JV with Delhi Public School Society (DPSS) which is running more than 130 DPSs (K-12 schools) all over the country. VERITAS BIOVENTIONS: CARE Rates INR17.15cr Loan at 'CARE BB-' ------------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Veritas Bioventions Private Limited. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 17.15 CARE BB- Assigned Rating Rationale The rating is primarily constrained on account of high project risk due to delay in its implementation, yet to establish marketing network and leverage capital structure of Veritas Bioventions Private Limited. The rating is further constrained by competition from global players in the medical devices industry. The rating, however, favorably takes into account experience of the promoters, qualified management team, financial support from the holding company and well-equipped manufacturing facilities. The company's ability to achieve envisaged sales and profitability coupled with timely receipt of regulatory approvals are the key rating sensitivities. Vapi-based VBPL was incorporated in 2009. VBPL is a 51% subsidiary of Vapi Care Pharma Private Limited. VBPL is engaged in design, development and manufacturing of Dental Implant and Operation Kit, Coronary Stent and Cardiovascular Accessories & Devices. VBPL's manufacturing facility is located at GIDC industrial estate of Vapi and had started its trial production in September 2011. VIR ALLOYS: CARE Assigns 'CARE BB' Rating to INR26.5cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' rating to the bank facilities of Vir Alloys and Steel Co Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 26.50 CARE BB Assigned Short-term Bank Facilities 18.25 CARE A4 Assigned Long/ST Bank Facilities 3.00 CARE BB/A4 Assigned Rating Rationale The ratings are constrained by small size of operations, thin profitability margins and low debt service indicators. The ratings are further constrained by limited product offerings, significant customer concentration in MS Ingots, volatility of input prices of steel scrap resulting in high inventory carrying risk and cyclical nature of the steel industry. The ratings however, derive strength from the experience of the promoters and their funding support in form of equity infusions and long association with the clients. The company's ability to efficiently market its casting products and achieve projected turnover and profitability while efficiently managing working-capital amidst price volatility are the key rating sensitivities. Incorporated in 1983, VASCPL is engaged in manufacturing of mild steel and alloy steel products. The promoter Mr. D.V. Aggrawal has five decades of experience in the industry and is ably supported by experienced professionals. VASCPL has an installed capacity of 24000 MT since commencement of production. During FY11, VASCPL posted net sales of INR128.81 crore and a PAT of INR0.64 crore. ZED VITRIFIED: CARE Puts 'CARE B+' Rating on INR17.95cr LT Loan --------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Zed Vitrified Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 17.95 CARE B+ Assigned Short-term Bank Facilities 1.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Zed Vitrified Private Limited are constrained on account of the recently commissioned greenfield vitrified tiles manufacturing project which is predominantly debt-funded, susceptibility of its operating margins to volatile fuel and raw material prices. The ratings are further constrained on account of ZVPL's presence in a highly competitive and fragmented tiles industry wherein demand is linked to the cyclical real estate industry. The above constraints far offset the benefits derived from the vast experience of the promoters of ZVPL in the tiles industry and benefits from being located in ceramic tile hub of Gujarat with easy access to raw material and labor. Timely stabilization of the recently setup manufacturing facility and achieving the envisaged level of sales while managing raw material and fuel price volatility are the key rating sensitivities. About Zed Vitrified Incorporated in May 2010, Zed Vitrified Private Limited is promoted by Morbi-based five entrepreneurs. ZVPL has recently commissioned a green-field project for manufacturing of the ceramic vitrified tiles with an installed capacity of 36,000 MTPA at Morbi in Gujarat which finds usage in both commercial as well as residential buildings. The total cost of the project was INR23.93 crore with a debt-equity ratio of 1.99 times. ZVPL has commenced production from April 2011. ========= J A P A N ========= AIJ INVESTMENT: Human Holdings to Seek Compensation for Losses -------------------------------------------------------------- Bloomberg News reports that Human Holdings Co., the school and health care company that has plunged 10 percent since disclosing it was a client of suspended AIJ Investment Advisors Co., pledged to seek compensation for losses from the asset manager. Human Holdings is speaking with its lawyers to see if it can claim damages for possible losses on the JPY330 million that AIJ managed for the company as of Dec. 31, Yusuke Kawashita, an executive officer, told Bloomberg in an interview. According to Bloomberg, the impact on net income from any losses on Human Holdings' investment won't exceed JPY330 million, Mr. Kawashita said, without specifying an amount or when it would book any charge. "We find it very regrettable that the reported performance was unrealistic and untrue," Bloomberg quotes Mr. Kawashita as saying. "We are now in discussions on how to legally claim as much compensation as possible." According to Bloomberg, Mr. Kawashita said Human Holdings was founded in 2002 and started investing money through AIJ that year. The company is one of the few Japanese clients of AIJ that didn't invest pension assets. All except two of AIJ's 120 domestic contracts were with pension funds as of Dec. 31, 2010, Bloomberg discloses, citing a regulatory filing submitted by the fund manager last March. Bloomberg adds that Mr. Kawashita said Human may pursue legal action once the Securities and Exchange Surveillance Commission, the FSA's investigative arm, finishes inspecting AIJ. The regulator may extend its one-month suspension as investigations into the asset manager expand to Hong Kong, two government officials told Bloomberg. One of the officials said that Japanese authorities called on their Hong Kong counterparts to help find out what happened to the JPY185.3 billion in assets managed by AIJ and determine any wrongdoing, Bloomberg relays. Tokyo-based AIJ told regulators its assets under management have dwindled to about JPY24 billion, including JPY4 billion in cash and deposits, one of the officials, as cited by Bloomberg, said. As reported in the Troubled Company Reporter-Asia Pacific on Feb. 27, 2012, Bloomberg News said the Financial Services Agency on Feb. 24 ordered AIJ Investment Advisors Co. to halt its business after finding the asset manager's clients funds of about JPY183.2 billion (US$2.3 billion) may be "adversely affected" and started a probe into the 263 asset managers operating in Japan. Tokyo-based asset-management firm AIJ Investment Advisors Co., led by Kazuhiko Asakawa, was established in April 1989, and had 120 clients including pension plans with JPY183.2 billion in assets as of the end of 2010. It has 12 employees. ==================== N E W Z E A L A N D ==================== DREAM HOMES: Director Flees to Australia After Liquidation ---------------------------------------------------------- Fairfax NZ News reports that Dream Homes director Thomas Buckthought has fled to Australia less than a week after placing six companies into liquidation. Dream Homes liquidator Kim Thompson has confirmed Mr. Buckthought had crossed the ditch, the report relates. Mr. Buckthought's two-storey home, located on a 2.3 hectare section, is now on the market for NZ$500,000, the report discloses. Fairfax NZ discloses that Dream Homes was a Registered Master Builder member for six months in 2010 but was kicked out of the federation following a dispute. After being dismissed from the federation, Dream Homes continued using Master Builders branding on its Web site and stationery. During its time as a member, Dream Homes filed no Master Build guarantees, the report relates. According to Fairfax NZ, Detective Sergeant Greg Gray said police had received no complaints about Mr. Buckthought and there was no investigation under way. However, the Commerce Commission said the case had been brought to its attention and fair trading managers had started an assessment process, says Fairfax NZ. According to the report, Mr. Thompson said it was preferable if Mr. Buckthought was in New Zealand but as long as he remained co- operative, it shouldn't be an issue. Directors of insolvent companies regularly flee to Australia, he said. Mr. Thompson, as cited by Fairfax NZ, said if it was found that Mr. Buckthought had traded recklessly or fraudulently than it would go beyond the realm of the liquidator and become a criminal matter. If that was the outcome then Mr. Buckthought could be extradited, the report adds. As reported in the Troubled Company Reporter-Asia Pacific on March 6, 2012, Fairfax NZ News said Dream Homes has been put into liquidation amid revelations the company traded under a fake Registered Master Builders logo. All six housing and property companies owned by Mr. Buckthought were put into liquidation on Feb. 28. The first liquidation report for Dream Homes showed the company owed more than NZ$1.5 million dollars to creditors, Fairfax NZ disclosed. Hamilton-based liquidator Kim Thompson said the company had virtually no assets to pay creditors. Volk Industries, trading as Dream Homes, is a Taranaki-based building company. OTAGO RUGBY: Wins More Time to Avoid Liquidation, Finds Rescue -------------------------------------------------------------- Fairfax NZ News reports that Otago Rugby Football Union has bought another week's time to thresh out the details of a rescue package, after "fruitful" discussions last week. The news agency relates that the Board of the Otago Rugby Football Union (ORFU) said it had decided to delay until Friday, March 16, the filing of an application to liquidate the union to allow more time for discussions. This follows a one week delay agreed by the Board earlier this month, the report notes. According to Fairfax NZ, the prospect of the ORFU digging its way out of the NZ$2.35 million financial crisis it had found itself in appeared improbable. But, in what would be a remarkable turnaround, the 131-year-old province may now field a team and retain its place in this year's 14-team competition, the report relays. Fairfax NZ notes that the New Zealand Rugby Union (NZRU), Dunedin City Council, Dunedin Venues Management Ltd, the New Zealand Rugby Players Association and the Bank of New Zealand have spent the past week working through the details of the recovery package. The report relates that NZRU Chief Executive Steve Tew said discussions last week had been fruitful. Based in Dunedin, the Otago Rugby Football Union -- http://www.orfu.co.nz/-- is the official governing body of rugby union for the Otago Region of New Zealand. OTAGO RUGBY: More Than NZ$300,000 Worth of Pokies Unaccounted ------------------------------------------------------------- Rod Vaughan at The National Business Review reports that more than NZ$300,000 of pokie grants to the Otago Rugby Football Union is unaccounted for and several trusts said they have stopped processing grant applications for the union amid concerns over its financial viability and delays in receiving receipts for previous grants. Most affected is the Trusts Community Foundation which is awaiting receipts, totaling NZ$286,000, it granted last year for amateur rugby, NBR says. It pulled the plug on further grants to the union in January until receipts are produced for previous donations. However, the foundation's general manager, Warwick Hodder, told NBR Online he's not overly concerned at the situation. "I'm confident a fair amount will be accounted for as a lot of it went to wages for people in junior rugby and there've been no reports of anyone not being paid," the report quotes Mr. Hodder as saying. According to NBR, Mr. Hodder said his only niggle was that the trust had not been kept up to date with the union's position and "it's fair to say we are disappointed that it has taken this long to account for the grants." NBR relates that the union's change manager, Jeremy Curragh, said he's been in touch with the trusts and told them that the union is "going through a complicated financial reconciliation process where the amounts owing to creditors and the circumstances around debts are being verified." "It is not appropriate to discuss the details around each creditor but we are currently in the middle of a process trying to put together a package for all creditors," NBR quotes Mr. Curragh as saying. Based in Dunedin, the Otago Rugby Football Union -- http://www.orfu.co.nz/-- is the official governing body of rugby union for the Otago Region of New Zealand. PIKE RIVER: Solid Energy Buys Mine; 19 Staff Lose Job ----------------------------------------------------- APNZ reports that receivers PricewaterhouseCoopers announced Friday that Solid Energy had placed a successful bid for Pike River Coal Ltd. The sale was conditional on due diligence, with a final settlement expected in May, the reports says. According to the report, lead receiver John Fisk said the sale was the best way forward toward recovering the bodies of 29 dead men still inside the mine. "As part of the agreement, negotiations will continue with the Crown to establish a trust that will help oversee efforts to enter the main area of the mine and facilitate body recovery - if it is safe and technically feasible," the news agency quotes Mr. Fisk as saying. APNZ relates that Mr. Fisk said tunnel reclamation work at Pike River mine would continue while the sale was being processed. He would not give any more details until the sale went unconditional, the report adds. Meanwhile, Fairfax NZ News reports that nearly half of the staff involved in the recovery of the bodies of the 29 men killed in the Pike River mine disaster have been laid off. Fairfax NZ says nine staff, including Marty Palmer, whose son, Brendan Palmer, 27, was killed in the November 2010 blast, have been given a month's notice by the mine's receivers. A spokesman for some of the Pike River families, Bernie Monk, said experts were probably going to be brought in from Australia, so there was not much more the staff based on the West Coast could do, according to Fairfax NZ. Fairfax says Mr. Palmer suspected more of the remaining 11 staff, including another victim's parent, would be laid off as the receivers did not have much money. The continued cost of the recovery was believed to have been a factor in the redundancies, but the mine's receivers could not be reached for comment, Fairfax NZ reports. About Pike River Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is a New Zealand-based coal mining company. The Company, along with its subsidiaries, is primarily engaged in the exploration, evaluation, development and production of coal. It operates a coal mine that lies under the Paparoa Ranges. Pike River Coal Ltd, the company that operates the coal mine where 29 miners died in a series of explosions in November 2010, was placed into receivership in December 2010. New Zealand Oil & Gas, the company's largest shareholder, appointed accountants PricewaterhouseCoopers as receivers. The company owed NZ$80 million to secured creditors BNZ and NZ Oil & Gas. Pike River Coal also owed another estimated NZ$10 million to NZ$15 million to contractors, including some of the men who lost their lives in the disaster. ********* 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, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. 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 Peter Chapman at 240/629-3300. *** End of Transmission ***