/raid1/www/Hosts/bankrupt/TCRAP_Public/120514.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, May 14, 2012, Vol. 15, No. 95
Headlines
A U S T R A L I A
BEMAX RESOURCES: S&P Raises CCR to B on Improved Finc'l. Profile
GEORGE'S PARAGON: Landlord Shuts Down Restaurant Over Unpaid Rent
MB HOLDING: Fitch Affirms Issuer Default Rating at 'BB-'
SUPER BUTCHER: Auswide Buys Retailer Under Administration
* AUSTRALIA: ASIC Figures Show Corporate Insolvencies Remain High
C H I N A
GUSHAN ENVIRONMENTAL: Gets NYSE Notice of Non-Compliance
SHENZHEN DEVELOPMENT: Moody's Ups Bank Fincl Strength Rating to D
H O N G K O N G
ACE STYLE: Creditors' Proofs of Debt Due May 18
ACE STYLE INTERNATIONAL: Creditors' Proofs of Debt Due May 18
AMERTEK LIMITED: Leung Mei Fan Steps Down as Liquidator
BILFINGER BERGER: Members' Final General Meeting Set for June 8
CANTIRE (CHINA): Commences Wind-Up Proceedings
CANTIRE (FAR EAST): Commences Wind-Up Proceedings
CHAMPION HALL: Members' Final Meeting Set for June 8
CHINA FORCE: Final General Meeting Set for June 8
CHINA FORCE STORAGE: Creditors' Proofs of Debt Due June 5
DAILOY DEVELOPMENT: Members' Final Meeting Set for June 11
I N D I A
ADVANCE IMPEX: Delay in Loan Payment Cues CRISIL Junk Ratings
ASHOK BRICKS: CRISIL Cuts Rating on INR96.2MM Loans to 'CRISIL D'
H P ISPAT: CRISIL Upgrades Rating on INR339MM Loan to 'B+'
KINGFISHER AIRLINES: No Longer a Subsidiary of United Breweries
KUTTY FLUSH: Delay in Loan Payment Cues CRISIL Junk Ratings
MACROCOSM INFRA: CRISIL Cuts Rating on INR650MM Loan to 'D'
MAMATA HOSPITAL: CRISIL Rates INR100MM LT Loan at 'CRISIL B+'
MANDEEP INDUSTRIES: CRISIL Puts 'B' Rating to INR300MM Loans
PCH RETAIL: Delay in Loan Payment Cues CRISIL Junk Ratings
RANGANATHAN RAJESWARI: CRISIL Rates INR180MM Loan at 'CRISIL D'
RAVIBALA IMPORTS: Delay in Loan Payment Cues CRISIL Junk Ratings
SHREE KRISHNA: CRISIL Assigns 'B' Rating to INR52.5MM Loans
SRI KALYANI: CRISIL Cuts Rating on INR204.7MM Loans to 'CRISIL B'
STANGL PICKLES: CRISIL Assigns 'D' Rating to INR83MM Loans
I N D O N E S I A
ANEKA TAMBANG: Moody's Says Indonesia Export Tax Credit Negative
J A P A N
ELPIDA MEMORY: Micron in Talks to Acquire Japanese Chipmaker
OLYMPUS CORP: Posts JPY48.99 Bil. Net Loss for FY2011
N E W Z E A L A N D
TRINITY ROOTS: Placed In Liquidation Over Unpaid Taxes
- - - - -
=================
A U S T R A L I A
=================
BEMAX RESOURCES: S&P Raises CCR to B on Improved Finc'l. Profile
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its corporate credit
rating and issue ratings on Australian mining company Bemax
Resources Ltd. to 'B' from 'B-'. The outlook is stable. "At the
same time, we affirmed the recovery rating of '4' on Bemax's
$175 million bond," S&P said.
"The upgrade reflects our expectation that a favorable pricing
environment and the ramp-up of Bemax's Snapper mine should
continue to support the company's earnings and credit metrics in
the next two years," Standard & Poor's credit analyst May Zhong
said. "The pricing for titanium dioxide (TiO2) high-grade
feedstock and zircon have improved significantly since 2011. This
is because of tight supply in the market and still healthy
demand. There is limited new greenfield production of TiO2
feedstock, and production grade from existing mines has declined
naturally. Although we anticipate that the economic slowdown
globally and in China would moderate prices, we expect the tight
supply conditions to continue in 2012. This would underpin prices
and prevent them from dropping substantially from 2011 levels,"
S&P said.
"We expect that the majority of Bemax's sales growth is likely to
come from higher product prices, while the production level will
remain largely the same. Nevertheless, we believe cash production
costs will increase in 2012, in line with the inflationary
pressure facing the mining industry in Australia. Under our base-
case scenario, we expect Bemax's EBITDA to be about A$100 million
and cash flow from operation at about A$60 million. Even under
our hypothetical assumption of a 20%-30% drop in production
prices from the current level, we still expect Bemax's debt-to-
EBITDA to be lower than 4.5x and funds from operation (FFO)-to-
debt higher than 15%, in the absence of a disruption in
production," S&P said.
Ms. Zhong added: "The stable outlook is based on our expectation
that favorable operating trends should continue to support
Bemax's earnings and cash generation. The stable outlook also
incorporates our expectation that Bemax's credit metrics will
fall within a wide range, given the company's sensitivity to
product prices."
"Downward rating movement could arise if an unexpected
significant decline in product prices or operational issues that
negatively affect Bemax's financial credit metrics were to occur.
This could mean FFO/debt being less than 12% and debt-EBTIDA at
higher than 5x. The rating could also be under pressure if there
is evidence of less support from Cristal or there is a
significant weakening in Cristal's capability to do so, should
Bemax be under financial stress," S&P said.
"Upward rating movement is less likely in the near term, given
Bemax's limited asset and business diversity, and even if the
company's financial profile were to be much stronger than our
base-case expectation. An improvement in the company's size and
asset diversity will be positive to the rating," S&P said.
GEORGE'S PARAGON: Landlord Shuts Down Restaurant Over Unpaid Rent
-----------------------------------------------------------------
Lucy Ardern at goldcoast.com.au reports that the shock closure of
George's Paragon restaurant in Southport has left about 100
people without a dining venue on Mother's Day.
A bitter dispute between landlord and tenant is behind the
closure, the report says.
Goldcoast.com.au relates that the owner of the premises,
Garry Garoni, sent in security staff early on May 10 to lock up
the restaurant and refuse entry to kitchen and front-of-house
staff.
According to the report, Mr. Garoni claims restaurateur
George Tassis owes him AUD100,000 rent, which he has been chasing
for several months.
The report says Mr. Tassis has labelled the lockout "unlawful"
and alleged Mr. Garoni delayed a market rent review for 18 months
-- allowing him to charge a higher rent.
"Legal action will now be taken to enforce the tenant's rights
and to claim damages against the landlord. If the rent was
reviewed now, the landlord would owe the tenant for overpaid rent
from the last 18 months," the report quotes Mr. Tassis as saying.
"The actions by the landlord, just before Mother's Day, will
cause enormous inconvenience to many customers and the
franchisee's staff . . . It is regrettable that many of the
staff at the Southport restaurant will be out of work because of
the actions of the landlord."
Goldcoast.com.au notes that dozens of staff have been left
unemployed.
Mr. Garoni said he took the action after other efforts to
negotiate with Mr. Tassis had been unsuccessful, the report adds.
MB HOLDING: Fitch Affirms Issuer Default Rating at 'BB-'
--------------------------------------------------------
Fitch Ratings has affirmed MB Holding Company LLC's and its
wholly owned subsidiary, MB Petroleum Services LLC's Long-term
foreign currency Issuer Default Ratings (IDR) at 'BB-' with
Stable Outlooks. The agency has also affirmed the senior
unsecured debt rating assigned to the USD305m notes issued and
outstanding by MB Finance Company LLC maturing in November 2015
at 'BB-'.
The affirmation follows publication of 2011 and Q112 financial
results. Fitch has affirmed all ratings despite the relatively
poor 2011 financial results reported by the group's oil field
service subsidiary, MBPS. MBPS's IDR and MBFC's senior unsecured
debt rating are aligned with the IDR of the parent company, MBHC.
Fitch views MBPS's standalone credit profile as distressed and
highly speculative grade, but the agency assesses the legal,
operational and strategic ties between the two entities as being
strong enough under the agency's Parent and Subsidiary Rating
Linkage Methodology to align the two ratings.
MBPS's 'BB-' IDR and MBFC's 'BB-' senior unsecured debt rating
are based on Fitch's belief that the parent company has the
ability to freely move cash between its other operating entities
to support the structural enhancement of its parental guarantee.
Other evidence of financial parental support from MBHC to MBPS
includes an equity injection of USD25.5m in 2011, partly used for
repurchasing USD15m of the MBFC Eurobond and new oil rig
procurement financing on behalf of MBPS conducted by MBHC in
2012.
MBHC's financial performance in 2011 was strong, partly due to a
favorable commodity price environment, but also due operational
performance improvements in mining and oil production. Group
revenue increased by 9.6% and EBITDA margins rose to 33% in 2011
compared to 25% in 2010 due to cost control in oil exploration
and production and copper mining.
MBPS's 2011 financial performance was less favourable. Revenue
growth in this segment was just 4% due to operational
difficulties in the Middle East and Europe that offset
improvements at MB Century. Both EBITDA and EBITDA margins
contracted due in part to rising employment cash costs in Oman
and the demobilisation of two rigs where contracts were not
renewed. MBPS reported LTM net debt to EBITDA at 7x and LTM
EBITDA to interest cover at 1.3x as of Q112. Fitch anticipates
MBPS will continue to rely on MBHC for financial support over the
next year to meet financial obligations in a timely manner.
Fitch calculates MBHC's FFO adjusted leverage in 2011 at around
1.7x, down from 2x in 2010 and FFO interest coverage at around 8x
down slightly from 9.4x in 2010. The ratings and Stable Outlook
are predicated on MBHC's FFO adjusted leverage remaining below
2.5x and FFO interest coverage remaining above 5x. MBHC reports
LTM net debt to EBITDA at 1.7x and LTM EBITDA to interest cover
at 6.9x as of Q112.
Fitch could take negative rating action if weak operational
performance at MBPS persists, combined with slowing financial
performance elsewhere within the group, perhaps because of lower
commodity prices. Additionally, a lack in improvement in MBHC's
liquidity situation would also be negative for the ratings.
Rating upside is currently limited.
Fitch views MBHC's liquidity as weak. Cash plus available credit
lines of USD222.4m are not enough to cover near-term debt
maturities of USD245m as of Q112. Access to financing via local
banks appears satisfactory and Fitch anticipates MBHC will
refinance upcoming maturities with local banks. Fitch believes
that MBHC could also make additional cash available through a
reduction in capex or dividends, improving free cash flow that in
2011 was around negative USD45.4m.
The agency understands that the 2011 increase in cash dividend
payout is unlikely to remain at elevated levels in 2012, while
working capital may remain a drag on cash flows. Net related
party receivables also increased by USD30.3m in 2011, reflecting
cash outflow from the business. Additionally, MBHC invested
USD44m into listed assets and USD16m in its own bonds in 2011.
Fitch excludes these investment account balances from its
liquidity analysis and notes that additional non-core investment
may also be credit negative.
MB Holding Company LLC (MB Holding) is a multinational
corporation with operations and subsidiaries spread across the
globe in the Middle East, Europe, North Africa, Asia, Asia-
Pacific, Australia and New Zealand. The company was first
established in 1982 as MB Trading. In a short span, MB Petroleum
Services, a subsidiary company within MB Holding, became one of
the fastest growing and largest oilfield services companies in
the Middle East with operations in over 20 countries.
SUPER BUTCHER: Auswide Buys Retailer Under Administration
---------------------------------------------------------
Jon Condon at Beef Central reports that a major creditor has
mounted a last-ditch effort to save high-profile Queensland
warehouse retailer, Super Butcher, from financial collapse.
According to Beef Central, the business, fronted by Andrew
McDonald, former owner of the South Burnett meatworks, has been
teetering on the brink in recent weeks, understood to be owing
almost AUD6 million to a long list of creditors and the tax
department. Most of these are prominent red meat wholesalers.
Beef Central relates that the largest of the creditors, Auswide,
said it is owed more than AUD1 million, and there are several
others owed AUD800,000 or more.
Should the Super Butcher business ultimately go into liquidation,
it could well be fatal for several of the smaller, less
financially robust creditors caught up in the crisis,
stakeholders said, Beef Central notes.
Beef Central says Auswide principal, Gary Stone, has put a
package together to try to stop the business going into
bankruptcy.
The report relates that Mr. Stone said the matter was very
complicated, and financially risky, but he remained hopeful that
it would be successful, not only preserving the jobs and
entitlements of some 150 Super Butcher staff, but some of the
money owed to creditors.
As part of the process, Beef Central discloses, AM No. 1 Pty Ltd,
trading as Super Butcher, was put into voluntary administration
on May 7, while a purchase agreement was effected. PA Lucas and
Co is the appointed administrator.
Beef Central notes that the deal being constructed by Auswide
must still be ratified by other stakeholders and the court, and
has to stay under administration for ten days before that can
happen.
Located in Yatala, Queensland, Australia, Am No 1 Pty Ltd,
trading as Super Butcher, is a meat wholesaler.
* AUSTRALIA: ASIC Figures Show Corporate Insolvencies Remain High
-----------------------------------------------------------------
The March 2012 quarter is the third consecutive quarter in the
current financial year in which external administrations exceeded
2,500 per quarter, according to figures released by Australian
Securities and Investments Commission on May 9, 2012.
ASIC's Senior Executive Leader of the Insolvency Practitioners
team, Adrian Brown, said the quarterly results show external
administrator appointments remain at historically high levels.
The first quarter of the 2012 calendar year saw external
administrations (EXADs) increase by 16.7 per cent compared to the
same quarter in 2011 and is a rise of 2.5 per cent over the
previous quarter, Mr. Brown said.
Companies entering into EXAD in first quarter 2012:
Month 2011 2012 %
----- ---- ---- ----
January 455 518 13.8
February 852 1,123 31.8
March 968 1,014 4.8
-------- ---- ----- ----
Total 2,275 2,655 16.7
Companies entering EXAD increased from 518 in January (2012) to
1,123 in February then fell slightly to 1,014 in March. January
appointments reflect the fall off in activity normally associated
with the Christmas/New Year holiday period.
Underpinning the March 2012 quarter statistics is a rise in court
liquidation and receivership appointments. Creditors' voluntary
liquidator appointments remained relatively steady while
voluntary administration appointments fell.
"In terms of location, we again see a rise in Queensland with the
two other largest states of New South Wales and Victoria
remaining relatively steady," Mr. Brown said.
ASIC publishes monthly insolvency statistics detailing the number
and type of corporate insolvency appointments. External
administrators are obliged by law to notify ASIC of their
appointments. ASIC will provide brief commentary on its
statistics quarterly throughout the 2011-12 financial year.
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C H I N A
=========
GUSHAN ENVIRONMENTAL: Gets NYSE Notice of Non-Compliance
--------------------------------------------------------
Gushan Environmental Energy Limited, a producer of biodiesel and
a manufacturer of copper products in China, disclosed on May 1,
2012, it received a letter from the New York Stock Exchange
notifying the Company that it was not in compliance with one of
the NYSE's standards for continued listing of the Company's
American depositary shares on the exchange. Specifically, the
NYSE indicated that it considers the Company to be "below
criteria" because, as of Dec. 31, 2011, its average global market
capitalization over a consecutive 30 trading-day period was less
than $50 million and, at the same time, its total stockholders'
equity was less than $50 million. On April 27, 2012, the Company
reported that as of Dec. 31, 2011, its total shareholders' equity
attributable to the Company was approximately $36.2 million. As
of Dec. 31, 2011, the Company's global market capitalization over
a consecutive 30 trading-day period was $27.5 million.
Under NYSE continued listing rules, the Company has 90 days from
the receipt of the letter to submit a plan advising the NYSE of
definitive action the Company has taken, or is taking, that would
bring it into conformity with the applicable standards within 18
months of receipt of the letter. If the NYSE staff determines
that the Company has not made a reasonable demonstration of an
ability to come into conformity with the applicable standards
within 18 months, the NYSE staff will promptly initiate
suspension and delisting procedures. Otherwise, if the NYSE
staff accepts the plan, the Company will be subject to semi-
annual review by the NYSE staff for compliance with this plan
until either the Company is able to demonstrate that it has
returned to compliance for a period of two consecutive quarters
or the expiration of the 18 month period. The NYSE staff will
promptly initiate suspension and delisting procedures if the
Company fails to meet the continued listing standards at the end
of the 18 month period. The Company currently intends to submit
such a plan and is exploring alternatives for curing the
deficiency and regaining compliance with the NYSE's continued
listing standards.
The Company's business operations and Securities and Exchange
Commission reporting requirements are unaffected by this letter.
The Company's ADSs will remain listed on the NYSE under the
symbol GU but will be assigned a ".BC" indicator by the NYSE to
signify that the Company is currently not in compliance with the
NYSE's continued listing standards.
About Gushan Environmental
Environmental Energy Limited produces biodiesel, a renewable,
clean-burning and biodegradable fuel and a raw material used to
produce chemical products, primarily from used cooking oil, and
by-products from biodiesel production, including glycerine and
plant asphalt. Gushan sells biodiesel directly to users, such as
marine vessel operators and chemical factories, as well as to
petroleum wholesalers and individual retail gas stations. The
Company has seven production facilities, located in the Sichuan,
Hebei, Fujian and Hunan provinces and in Beijing, Shanghai and
Chongqing, with a combined annual production capacity of 490,000
tons. Gushan's Sichuan production facility is currently in
operation. Gushan also operates a copper products business in
China which manufactures copper rods, copper wires, copper
granules and copper plates primarily from recycled copper.
Currently, the copper products business has two plants, with a
daily production capacity of approximately 210 tons of recycled
copper products.
SHENZHEN DEVELOPMENT: Moody's Ups Bank Fincl Strength Rating to D
-----------------------------------------------------------------
Moody's Investors Service has upgraded Shenzhen Development
Bank's long-term foreign currency deposit rating to Ba1 from Ba2
and standalone bank financial strength rating (BFSR) to D --
mapping to ba2 on the long-term scale -- from D-.
Its short-term foreign currency rating remains Non-Prime.
At the same time, Moody's changed the outlook for the bank's
long-term deposit rating and BFSR to stable from positive.
Ratings Rationale
"The upgrade reflects the improvement in the bank's standalone
performance in the past few years and Moody's assessment of
potential support from Ping An Insurance (Group) Company of
China, Ltd. (Ping An Group, unrated), a 52% shareholder," says
Bin Hu, a Moody's Vice President and Lead Analyst for the bank.
Ping An Group first bought a 16.76% stake in SZDB from Newbridge
Capital in 2010 and increased its ownership to 52% in July 2011
by subscribing to SZDB's new-share issuance.
SZDB in turn used part of the proceeds to purchase a 90.75% stake
in Ping An Bank (PAB, unrated).
Ping An Group then announced in August 2011 that it would
subscribe to additional new shares of up to RMB20 billion to be
issued by SZDB for the purposes of enhancing the bank's own
capital position.
SZDB will be renamed as Ping An Bank after its planned merger
with PAB is completed.
Moody's notes that after various merger-related capital-
enhancement moves, SZDB has managed to bring its capital position
in line with the levels of its medium-sized Chinese peers.
On a consolidated basis, it reported an 8.63% Tier 1 capital
ratio and 11.63% total capital adequacy ratio (CAR) at end-March
2012. These ratios are significantly higher than the 5.52% Tier 1
capital ratio and 8.88% total CAR reported at end-2009, and
before Ping An Group became the SZDB's leading shareholder.
The improved capital position provides extra cushion against an
expected deterioration in asset quality amid China's moderating
economic conditions. At the same time, SZDB's capital would be
further enhanced after Ping An Group, as expected, injects
additional capital.
Moody's notes SZDB's profitability has also improved over the
past few years. In 2011, net income was 1.73% of its average
risk-weighted assets on an unconsolidated basis, up from 1.51% in
2010 and 1.44% in 2009. The bank began reporting consolidated
figures at end-September 2011, and the same ratio in 2011 was at
a similar level on a consolidated basis .
SZDB's asset quality reversed its improving trend during 1Q 2012,
with a 0.68% non-performing loan (NPL) ratio at end-March 2012,
up from 0.53% at end-2011. The SME sector in the coastal areas
was the main reason for the rise.
Nonetheless, SZDB's current low NPL ratio and high loan-loss
reserve coverage, at 253% of NPLs at end-March 2012 on a
consolidated basis, allow some room for a rise in NPLs without
any negative impact on its ratings.
Moody's further notes that a full integration of SZDB with PAB is
expected to be completed in 2H2012. The new combined bank would
still have a market share of only slightly over 1% in loans and
deposits, but the merger would boost its branch network and
geographic presence.
At the same time, SZDB will need to relocate or streamline some
of the branches of the combined bank, implement infrastructure
and system integration, train its staff on revised procedures,
and carry out branding and marketing activities to cement its
customer base.
But Moody's does not expect any major disruption in the process
as both SZDB and PAB have been actively implementing their
integration since mid-2011. Integration-related activities may
slightly drive up the bank's expenses in the near term, but
Moody's believes the merger will improve economies of scale over
time.
Moreover, as a member of Ping An Group, SZDB would benefit in
various ways, such as through better access to capital and
liquidity, and through its parent would enjoy brand sharing and
cross-selling opportunities.
Ping An Group further sees its banking arm as crucial for its
development into a financial holding company. In such an
environment, the consolidation into Ping An Group will offer SZDB
the backing of a well-established financial institution with a
long-term commitment.
SZDB's standalone BFSR of D maps to a ba2 baseline credit
assessment (BCA) on the long-term scale. After incorporating the
potential for parental support, its adjusted BCA is one notch
higher at ba1. While Moody's also assumes some level of systemic
support for SZDB, the assumed level is low due to the bank's
small market position, and thus does not result in additional
uplift for its long-term deposit rating.
SZDB is a joint stock commercial bank with a national presence.
The eastern and southern coastal areas, where it has over 70% of
its loans and advances and generates half of its revenue, have
long been the focus of its business development. Supply-chain
financing is the bank's expertise. Trade finance accounted for
more than 50% of its corporate lending at end-1Q 2012.
A further upgrade in the bank's rating would require a more
positive assessment of its standalone financial strength. To
achieve this, the bank would need to show a consistent and solid
financial performance during a period that is likely to remain
challenging for the Chinese financial system. In particular, a
Tier 1 capital ratio kept above 9% and the ratio of NPLs to total
loans kept below 2% would be minimum requirements. A meaningful
improvement in its franchise value and an increase in systemic
importance would also be critical for an upgrade.
The ratings could be downgraded for the following reasons: (1)
NPLs rise above 3% of total loans; (2) its Tier 1 capital ratio
declines below 6%; (3) forward-looking stress tests reveal
concerns about the bank's ability to maintain adequate capital
for its rating; or (4) developments emerge that challenge Moody's
assumed levels of parental and systemic support.
The methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007,
and Incorporation of Joint-Default Analysis into Moody's Bank
Ratings: Global Methodology published in March 2012.
SZDB is headquartered in Shenzhen, China. As of March 31, 2012,
it reported total assets of RMB1.37 trillion (approximately
USD217 billion).
================
H O N G K O N G
================
ACE STYLE: Creditors' Proofs of Debt Due May 18
-----------------------------------------------
Creditors of Ace Style Intimate Apparel Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by May 18, 2012, to be included in the company's dividend
distribution.
The company's liquidators are:
Lai Kar Yan (Derek)
Yeung Lui Ming (Edmund)
Kong Kian Chong (Wesley)
35th Floor, One Pacific Place
88 Queensway, Hong Kong
ACE STYLE INTERNATIONAL: Creditors' Proofs of Debt Due May 18
-------------------------------------------------------------
Creditors of Ace Style International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by May 18, 2012, to be included in the company's dividend
distribution.
The company's liquidators are:
Lai Kar Yan (Derek)
Yeung Lui Ming (Edmund)
Kong Kian Chong (Wesley)
35th Floor, One Pacific Place
88 Queensway, Hong Kong
AMERTEK LIMITED: Leung Mei Fan Steps Down as Liquidator
-------------------------------------------------------
Leung Mei Fan stepped down as liquidator of Amertek Limited on
April 24, 2012.
BILFINGER BERGER: Members' Final General Meeting Set for June 8
---------------------------------------------------------------
Members of Bilfinger Berger Finance (HK) Limited will hold their
final general meeting on June 8, 2012, at 11:15 a.m., at Level
28, Three Pacific Place, 1 Queen's Road East, in Hong Kong.
At the meeting, Susan Y H Lo, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CANTIRE (CHINA): Commences Wind-Up Proceedings
----------------------------------------------
Members of Cantire (China) Limited, on April 27, 2012, passed a
resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Leung Yuk Lin Christina
Suites 1905-7, 19th Floor
Tower 6, The Gateway
Harbour City, Kowloon
Hong Kong
CANTIRE (FAR EAST): Commences Wind-Up Proceedings
-------------------------------------------------
Members of Cantire (Far East) Limited, on April 27, 2012, passed
a resolution to voluntarily wind up the company's operations.
The company's liquidator is:
Leung Yuk Lin Christina
Suites 1905-7, 19th Floor
Tower 6, The Gateway
Harbour City, Kowloon
Hong Kong
CHAMPION HALL: Members' Final Meeting Set for June 8
----------------------------------------------------
Members of Champion Hall International Limited will hold their
final meeting on June 8, 2012, at 11:45 a.m., at 72-76/F., Two
International Finance Centre, at 8 Finance Street, Central, in
Hong Kong.
At the meeting, Lee King Yue, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CHINA FORCE: Final General Meeting Set for June 8
-------------------------------------------------
Members of China Force Holding (Hong Kong) Co., Limited will hold
their final general meeting on June 8, 2012, at 10:00 a.m., at
Flat F, 1/F, 60 Sassoon Road, Pokfulam, in Hong Kong.
At the meeting, Lam Cham, the company's liquidator, will give a
report on the company's wind-up proceedings and property
disposal.
CHINA FORCE STORAGE: Creditors' Proofs of Debt Due June 5
---------------------------------------------------------
Creditors of China Force Storage (H.K.) Company Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by June 5, 2012, to be included in the company's
dividend distribution.
The company's liquidator is:
Ma Cunjun
Rm. 2909, Shun Tak Centre West Tower
200 Connaught Road
C., Hong Kong
DAILOY DEVELOPMENT: Members' Final Meeting Set for June 11
----------------------------------------------------------
Members of Dailoy Development Limited will hold their final
meeting on June 11, 2012, at 3:00 p.m., at 607-608, 6/F, Wing On
House, 71 Des Voeux Road Central, Central, in Hong Kong.
At the meeting, Tom Cheuk Kuen and Lo Shui San Zue, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
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I N D I A
=========
ADVANCE IMPEX: Delay in Loan Payment Cues CRISIL Junk Ratings
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Advance Impex Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
BB/Stable/CRSISL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 320 CRISIL D (Downgraded from
CRISIL BB/Stable)
Letter of credit 25 CRISIL D (Downgraded from
& Bank Guarantee CRISIL A4+)
Proposed Cash Credit 149 CRISIL D (Downgraded from
Limit CRISIL BB/Stable)
Standby Line of 20 CRISIL D (Downgraded from
Credit CRISIL BB/Stable)
Term Loan 161 CRISIL D (Downgraded from
CRISIL BB/Stable)
The downgrade reflects instances of delay by AIPL in servicing
its debt; the delays have been caused by AIPL's weak liquidity.
AIPL's liquidity is weak on account of the difficulty the company
has faced in stabilising operations at its new thermo-
mechanically-treated (TMT) steel bar plant; the plant commenced
operations in May 2011. Furthermore, the scale of operations of
the company have increased over the past two years, with no
corresponding increase in the bank lines of the company, leading
to 100 per cent bank limit utilisation.
AIPL is exposed to intense competition in the TMT steel bar
industry and its average financial risk profile is constrained by
expected deterioration in the gearing of the company on account
of incremental working capital requirements. The company,
however, benefits from its promoters' experience in the long
steel products industry.
About Advance Impex
Incorporated in September 2003, AIPL began operations by
manufacturing mild steel (MS) ingots. AIPL commenced commercial
production in February 2006. In 2008-09 (refers to financial
year, April 1 to March 31), it forward integrated into
manufacturing TMT steel bars. Its plant at Ghaziabad (Uttar
Pradesh) has the capacity to manufacture 132,000 tonnes of TMT
bars. The company sells TMT bars under the brand Kamdhenu as per
its agreement with Kamdhenu India Limited.
ASHOK BRICKS: CRISIL Cuts Rating on INR96.2MM Loans to 'CRISIL D'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Ashok
Bricks Industries Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
BB/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 60 CRISIL D (Downgraded from
CRISIL BB/Stable)
Cash Credit 25 CRISIL D (Downgraded from
CRISIL BB/Stable)
Term Loan 11.2 CRISIL D (Downgraded from
CRISIL BB/Stable)
The downgrade reflects instances of delay by ABIPL in servicing
its debt; the delays have been caused by the company's weak
liquidity. Its bank limit utilisation was high at 99.2 per cent
over the 12 months ended February 29, 2012. ABIPL had outstanding
term debt obligations of around INR2.4 million as on February 29,
2012, with monthly repayment obligations of around INR1.0
million. These repayments are being made with a delay of 15 to 30
days, as and when funds are available. There have also been
instances of cheques getting bounced during November 2011 and
February 2012 for paucity of funds. The November 2011 repayments
were made good on January 6, 2012 and the repayments due in
February 2012 have not yet been made. ABIPL's liquidity has
weakened because of delays in realising payments from government
departments, which are its customers.
ABIPL has geographically concentrated revenue profile, small
scale of operations, large working capital requirements, and
exposure to risks related to intense competition in the civil
construction industry. However, the company benefits from its
promoters' experience in the civil construction business.
About Ashok Bricks
Mr. Pramod Agarwal set up Ashok Bricks Industries, a partnership
firm, with his brother, Mr. Ashok Agarwal, to manufacture red
bricks used in construction industry, in 1992 in Orissa. The firm
was reconstituted as ABIPL, a private limited company, in 2000
and it entered into road construction business. ABIPL is a Class
A registered contractor with the authorities under Government of
Orissa. The company is into construction of roads and buildings
in Orissa.
ABIPL reported a profit after tax (PAT) of INR6.3 million on net
sales of INR162.5 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR5.5 million on net
sales of INR150.7 million for 2009-10.
H P ISPAT: CRISIL Upgrades Rating on INR339MM Loan to 'B+'
----------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of H P
Ispat Pvt Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50.00 CRISIL B+/Stable (Upgraded
from CRISIL D)
Bank Guarantee 10.00 CRISIL A4 (Upgraded from
CRISIL D)
Long-Term Loan 185.00 CRISIL B+/Stable (Upgraded
from CRISIL D)
Proposed Long-Term 104.00 CRISIL B+/Stable (Upgraded
Bank Loan Facility from CRISIL D)
The upgrade in ratings reflects timely payment of term loan
obligations by the company and improvement in its cash accruals
with the commencement of operations at is new facilities. In
2011-12 (refers to financial year, April 1 to March 31), HPIPL
increased its ingot manufacturing capacity to 45,000 tonnes per
annum (tpa) from 22,800 tpa, and set up a new thermo-mechanically
treated (TMT) steel manufacturing facility. Owing to cash flow
mismatches on account of delay in completion of the above
facilities, the company had delayed on its term loan repayments
which started in December 2010. The new facilities have started
operations from September 2011, which has resulted in an
improvement in the cash accruals. The company has been paying its
term loan obligations in time over the past six months.
The ratings continue to reflect HPIPL's small scale of, and
working-capital-intensive, operations in a highly fragmented
industry. These rating weaknesses are partially offset by the
expected improvement in HPIPL's business risk profile driven by
its increasing scale of operations and improving forward
integration.
Outlook: Stable
CRISIL believes that HPIPL will maintain its business risk
profile over the medium term driven by improving scale of
operations. The outlook may be revised to 'Positive' in case the
company stabilizes its new capacities thereby improving its
topline and profitability. Conversely, the outlook may be revised
to 'Negative' if the company is not able to obtain an enhancement
in its cash credit limits leading to deterioration of its
financial flexibility or its working capital requirements
increase more than expected, leading to deterioration in its
financial profile.
About H P Ispat
HPIPL, incorporated in 2006 by Kolkata-based Agarwal family,
manufactures steel ingots. The company commenced commercial
operations in 2006-07 with its first 7 (mt) induction furnace. In
2011-12, it set up another 8 mt induction furnace and a 250 tpd
TMT manufacturing unit, entailing a project cost of INR350
million. HPIPL's manufacturing unit is located at Barjora in
Bankura district (West Bengal). The company has an ingot
manufacturing capacity of 45,000 tpa and TMT bar manufacturing
capacity of 72,000 tpa.
HPIPL reported a profit after tax (PAT) of INR3.0 million on net
sales of INR618.9 million for 2010-11, as against a PAT of INR2.4
million on net sales of INR531.4 million for 2009-10.
KINGFISHER AIRLINES: No Longer a Subsidiary of United Breweries
---------------------------------------------------------------
The Times of India reports that Kingfisher Airlines is no longer
a subsidiary of United Breweries Holdings, which is the
investment holding entity of the Vijay Mallya-led UB Group.
The report relates that UB Holdings, which floated the airline
six years ago, said in a filing to the stock exchanges on May 10
that Kingfisher had ceased to be its subsidiary as on February 18
after allotment of shares against optionally convertible
debentures to certain entities.
But UB Holdings has an exposure of around INR12,000 crore in
Kingfisher and continues to be the largest promoter group company
with a stake of 29.29%, relates TOI.
That's a sharp drop from the 40.1% UB Holdings held in Kingfisher
as on December 31, 2011. The drop is a result of the increase in
the airline's equity base following the issue of fresh shares in
lieu of certain convertible bonds. The company did not say who
the shares were issued to.
According to the report, the BSE filing says UB Holdings'
exposure in Kingfisher as of March 31 includes:
-- investment in equity/preference capital at
INR2,118.48 crore;
-- corporate guarantees to banks/aircraft lessors
of INR8,925.86 crore;
-- advances at INR1,029.75 crore; and
-- other receivables of INR141.09 crore.
"Certain corporate guarantees have been invoked and Kingfisher
Airlines is under negotiation in this regard with the
beneficiaries," the filing, as cited by TOI, read.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai. Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer. UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.
* * *
Kingfisher Airlines lost money six years in a row, accumulating
net debt of INR77.2 billion (US$1.74 billion) as of March 2010,
according to data compiled by Bloomberg.
Kingfisher lost INR4.44 billion (US$90.1 million) in the fiscal
third quarter that ended in December 2011, 74.8% more than a loss
of INR2.54 billion a year earlier, The Economic Times disclosed.
The company has lost INR11.8 billion (US$240 million) in the
first nine months of the current fiscal year that ends in
March, a 35% rise from a year earlier.
KUTTY FLUSH: Delay in Loan Payment Cues CRISIL Junk Ratings
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Kutty Flush Doors & Furniture Co Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 56 CRISIL D
Proposed Long-Term 10 CRISIL D
Bank Loan Facility
Letter of Credit 30 CRISIL D
Cash Credit 32.5 CRISIL D
Bank Guarantee 10 CRISIL D
Bill Discounting 1.5 CRISIL D
The ratings reflect instances of delay by KFD in servicing its
debt; the delays have been caused by the company's weak liquidity
on account of closure of operations in its manufacturing unit due
to labour issues.
The ratings also factors in KFD's weak financial risk profile,
marked by a low net worth and weak debt protection metrics, and
large working capital requirements. These rating weaknesses are
partially offset by the extensive industry experience of KFD's
promoters.
About Kutty Flush
Set up in 1960 as a partnership firm and reconstituted as a
private limited company in 1962, KFD derives its revenues from
supply of wooden and steel doors. The company has two
manufacturing units, one in Chennai and the other in Himachal
Pradesh (HP). While the Chennai unit has become non operational
since October' 2009, the unit in HP is operating at subdued
capacities due to labour issues.
KFD reported a loss of INR 24 million on net sales of INR120
million for 2010-11 (refers to financial year, April 1 to
March 31), as against a loss of INR44 million on net sales of
INR138 million for 2009-10.
MACROCOSM INFRA: CRISIL Cuts Rating on INR650MM Loan to 'D'
-----------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Macrocosm Infrastructure & Power Pvt Ltd (part of the
Macrocosm group) to 'CRISIL D' from 'CRISIL B/Negative'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 350 CRISIL D (Downgraded from
'CRISIL B/Negative')
Term Loan 300 CRISIL D (Downgraded from
'CRISIL B/Negative')
The downgrade reflects instances of delay by the Macrocosm group
in servicing its term debt. These delays have ranged from 30 to
60 days. The delays have been caused by the weak liquidity of the
group which has, in turn, been caused by inadequate cash accruals
generated by the group to meet its large incremental working
capital requirements. As against the total working capital
requirements of INR650 million over the two years ended 2010-11
(refers to financial year, April 1 to March 31), the company has
generated cash accruals of only INR110 million, leading to
increased dependence on its bank lines to fund its working
capital requirements. The Macrocosm group's large working capital
requirements are marked by high debtors of around 90 days. The
debtor days are high because of MMEPL's high exposure to
government clients.
In addition, the company maintains an inventory of around 60
days, leading to large working capital requirements for the
company. This has led to the near full utilisation of the
available bank limits of the company; Macrocosm Metals and Energy
Pvt Ltd's bank lines of INR250 million were utilised at an
average of 102 per cent for the 12 months ended January 2012. In
its first year of operations, MIPPL has also had weak liquidity,
as reflected in full utilisation of its bank lines since October
2011. The liquidity of the group is also constrained by the less-
than-adequate working capital limits of the group in comparison
to the overall scale of operations. CRISIL believes that the
liquidity of the Macrocosm group will remain weak over the medium
term, driven by its large incremental working capital
requirements.
The Macrocosm group has weak liquidity, driven by large working
capital requirements, and its profitability is susceptible to
volatility in copper prices. The group, however, benefits from
its moderate operating efficiencies.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of MMEPL and MIPPL. This is because the
two companies, together referred to as the Macrocosm group, have
a common management team. In addition, the promoters plan to
merge the two companies by 2013-14.
About the Group
The Macrocosm group manufactures copper alloy tubes, copper alloy
billets, copper wire rods, copper wires, sections, and profiles.
MMEPL's plant is in Sanand (Gujarat), while MIPPL's manufacturing
plant is in Raigad (Maharashtra). MMEPL was set up in 2008-09 and
commenced commercial production in October 2009. It has capacity
to produce 10,000 tonnes per annum (tpa) of various copper alloy
tubes. MIPPL began its commercial production from July 2011
onwards with an initial installed capacity of 10,000 tpa to
manufacture copper alloy wire rods, copper wires, copper alloy
billets, copper tubes, and sections.
The Macrocosm group is promoted by brothers Mr. Hrishikesh Shah
and Mr. Jaikishen Shah, each holding direct or indirect stake of
50 per cent in all the group entities. The promoters' father, Mr.
B K Shah, has been involved in the gems and jewellery business.
To diversify the business, Mr. Hrishikesh Shah and Mr. Jaikishen
Shah entered the business of trading in copper alloy tubes,
wires, sections, and rods in 2001 through a group concern
Macrocosm Metals & Alloys, which outsourced manufacturing to
Gujarat Cypromet Ltd (GCL). In 2009, the promoters took over GCL,
made significant additions to its plant and machinery, and
renamed it MMEPL. Another sister concern, Macrocosm Industries
Pvt Ltd trades in copper wires and strips and scraps.
MMEPL reported a profit after tax (PAT) of INR57.4 million on net
sales of INR 1.19 billion for 2010-11, against a PAT of
INR17.6 million on net sales of INR 40.77 million for 2009-10.
MAMATA HOSPITAL: CRISIL Rates INR100MM LT Loan at 'CRISIL B+'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Mamata Hospital.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 100 CRISIL B+/Stable (Assigned)
Bank Loan Facility
The rating reflects MH's modest scale of operations, and expected
weakening of its financial risk profile due to its proposed debt-
funded expansion program. These rating weaknesses are partially
offset by MH's promoter's extensive experience in the healthcare
industry and established name in Dombivli (Maharashtra).
Outlook: Stable
CRISIL believes that MH will maintain its business risk profile
over the medium term, supported by the extensive experience of
its promoters in the health care sector and the established
presence in Dombivli. The outlook may be revised to 'Positive' in
case MH generates significantly higher-than-expected revenues
while maintaining its profitability, thereby improving its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if MH's financial risk profile materially deteriorates
due to the larger-than-expected, debt-funded capex or if the
hospital suffers a sharp decline in its revenues or
profitability.
About Mamata Hospital
MH, established in 1994 as sole proprietorship concern of Dr. U
Prabhakar Rao, runs a multi-speciality secondary-care hospital in
Dombivli. Dr. U Prabhakar Rao is a general surgeon and has been
practising medicine in Dombivli since 1966. He is supported by
his three sons - Dr. Pradeep Rao (urologist), Dr. Prashant Rao
(laparoscopic surgeon) and Dr. Pramod Rao (interventional
radiologist).
MH reported a net profit of INR7.1 million on revenues of INR46.7
million for 2010-11 (refers to financial year, April 1 to March
31); the firm reported a net profit of INR5.6 million on revenues
of INR45.7 million for 2009-10.
MANDEEP INDUSTRIES: CRISIL Puts 'B' Rating to INR300MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Mandeep Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL B/Stable (Assigned)
Warehouse Financing 100 CRISIL B/Stable (Assigned)
The rating reflects MI exposure to inventory risk arising from
exposure to volatility in raw material prices, and below-average
financial risk profile, marked by high gearing and weak debt
protection metrics. These rating weaknesses are partially offset
by the extensive industry experience of MI's partners and
established relationships with key clients.
Outlook: Stable
CRISIL believes that MI will maintain its credit profile over the
medium term on the back of the extensive experience of its
partners in the groundnut processing business and strong
relationships with its customers. The outlook may be revised to
'Positive' if the firm increases its scale of operations
significantly, without impacting profitability, or if its
financial risk profile improves significantly, most likely due to
infusion of partners' capital. Conversely, the outlook may be
revised to 'Negative' in case of decline in profitability or
significant increases in working capital, or any large debt-
funded capital expenditure leading to material deterioration in
the firm's financial risk profile.
About Mandeep Industries
MI was set up in 1974 by members of the Desai and Talaviya
families. The firm currently has nine partners, of which four are
involved in its daily operations. MI produces de-oiled cake and
refined groundnut oil from groundnut oil cakes, which are
purchased from oil millers in Gujarat. The firm entered into the
cotton ginning business in 2011-12 by leasing a plant in Gujarat.
The firm pays an annual lease of about INR6.5 million, and
produced up to 14,000 bales of cotton in the first six months of
its cotton ginning operations.
MI reported a profit after tax (PAT) of INR7.0 million on net
sales of INR348.7 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR5.3 million on net
sales of INR483.2 million for 2009-10.
PCH RETAIL: Delay in Loan Payment Cues CRISIL Junk Ratings
----------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
PCH Retail Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
BB/Stable/CRISIL A4+'.
Amount
Facilities ( INRMln) Ratings
---------- --------- -------
Cash Credit 990 CRISIL D (Downgraded from
CRISIL BB/Stable)
Letter of Credit 127.5 CRISIL D (Downgraded from
CRISIL A4+)
Long-Term Loan 945 CRISIL D (Downgraded from
CRISIL BB/Stable)
The downgrade reflects delays by PCH in servicing its term debt;
the delays have been caused by PCH's weak liquidity resulting
from inadequate cash accruals for meeting its term debt
obligations. PCH has aggressively opened new stores in the past
two years and losses from these recently launched stores have
adversely affected PCH's profitability. PCH has approached
Corporate Debt Restructuring (CDR) cell for restructuring its
debt.
PCH is exposed to severe competition in the retail electronics
segment and has working-capital-intensive operations. Its
financial risk profile is also constrained by its large debt-
funded capital expenditure (capex). However, the company is
benefitting from its improving market position in the organised
retail industry.
About PCH Retail
PCH was established as the partnership concern, Punjab Crockery
House, in January 2007 by Mr. Balvinder Singh and his wife, Mrs.
Baljit Kaur. It was incorporated by merging the partnership
firms, Punjab Crockery House, PCH Associates, PCH Mobile Zone and
PCH Sales, and the proprietorship firm, PCH Business. PCH is one
of the largest retailers in the consumer durables and electronic
goods segment in Andhra Pradesh. The company has more than 110
showrooms, with a combined retail space of around 0.83 million
square feet, in Andhra Pradesh, Karnataka, Maharashtra and Tamil
Nadu.
For 2010-11 (refers to financial year, April 1 to March 31), PCH
reported a profit after tax (PAT) of INR164 million on net sales
of INR9.30 billion, against a PAT of INR88 million on net sales
of INR6.58 billion for the previous year.
RANGANATHAN RAJESWARI: CRISIL Rates INR180MM Loan at 'CRISIL D'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Ranganathan Rajeswari Charitable Trust. The rating
reflects instances of delay by RRCT in servicing its debt; the
delays have been caused by the trust's weak liquidity.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 180 CRISIL D
RRCT also has a weak financial risk profile marked by high
gearing and a small net worth, and vulnerability to regulatory
risks associated with educational institutions. These rating
weaknesses are partially offset by the extensive industry
experience of RRCT's promoters and healthy demand prospects for
the educational industry.
Located in Coimbatore (Tamil Nadu), RRCT was set up in 2006 by
Dr. P Tamilarasi Murugesan along with her daughter, Mrs. M
Praveena. In 2007-08 (refers to financial year, April 1 to March
31), the trust started an educational institute, Ranganathan
Engineering College (REC). REC offers six streams of engineering
courses, along with Master of Business Administration and Master
of Engineering in Very Large Scale. In 2010-11, the trust started
two more educational institutes, Ranganathan Architecture College
(RAC) and Ranganathan Polytechnic College (RPC). RAC offers
Bachelor of Architecture while RPC offers diploma course in
electronics and communication engineering, electrical and
electronics engineering, mechanical engineering, and civil
engineering. All the three institutes are located on the same
campus; moreover, the trust also offers hostel facility to house
440 students (320 boys and 120 girls).
RRCT reported a surplus of INR26.1 million on net income of
INR85.6 million for 2010-11, as against a surplus of INR9.6
million on net income of INR54.2 million for 2009-10.
RAVIBALA IMPORTS: Delay in Loan Payment Cues CRISIL Junk Ratings
----------------------------------------------------------------
CRISIL has downgraded its rating on the short-term bank
facilities of Ravibala Imports & Exports (part of the Ravibala
group) to 'CRISIL D' from 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase- 30 CRISIL D (Downgraded
Discounting Facility from 'CRISIL A4')
Letter of Credit 5 CRISIL D (Downgraded
from 'CRISIL A4')
Packing Credit 37.5 CRISIL D (Downgraded
from 'CRISIL A4')
Standby Line of 14 CRISIL D (Downgraded
Credit from 'CRISIL A4')
The rating downgrade reflects Ravibala's instances of delays in
servicing its bank facilities; the delays have been caused by the
Ravibala group's weak liquidity.
The Ravibala group has a weak financial risk profile, marked by a
high gearing and a small net worth, and has volatile revenues.
The group is also exposed to risks related to adverse regulatory
changes, to adverse climatic conditions, to epidemic-related
factors, and to volatility in raw material prices. However, the
group benefits from its promoters experience in the gherkin
export business.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Stangl Pickles & Preserves (Stangl)
and Ravibala, together referred to as the Ravibala group. This is
because the entities are under a common management, are in
similar lines of business, and have close operational linkages,
including fungible cash flows, with each other.
About the Group
Ravibala, set up in 1994 by Mr. M Gnanashekar, is the flagship
firm of the group. The Sivagangai (Tamil Nadu)-based firm
cultivates and exports processed and semi-processed gherkins and
also manufactures coir pith. Set up in 2004, Stangl is engaged in
the packaging and exporting of gherkins, processed in Ravibala
Imports. The firm packages the processed gherkins in various
bottle sizes ranging from 70 millilitre (ml) to 1000 ml. The
group has a gherkin processing facility of around 10,000 tonnes
per annum.
The Ravibala group reported a net loss of INR16.7 million on net
revenues of INR156.0 million for 2010-11, against a profit after
tax (PAT) of INR1.9 million on net revenues of INR239.5 million
for 2009-10.
SHREE KRISHNA: CRISIL Assigns 'B' Rating to INR52.5MM Loans
-----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term
bank facilities of Shree Krishna Industries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B/Stable
Term Loan 22.5 CRISIL B/Stable
The rating reflects SKI's start-up phase and small scale of
operations in fragmented industry, weak financial risk profile,
marked by high gearing and weak debt protection metrics, and
susceptibility to volatility in raw material prices and
unfavourable changes in government policy regarding cotton
industry. These rating weaknesses are partially offset by the
extensive industry experience of SKI's partners.
Outlook: Stable
CRISIL believes that SKI's financial risk profile will remain
constrained over the medium term because of its start-up phase of
operations; however, the firm's business risk profile will
improve gradually over the medium term with stabilisation of
operations in its manufacturing facility. The outlook may be
revised to 'Positive' in case of earlier-than-expected ramp-up of
operational income leading to higher-than-expected cash accruals.
Conversely, the outlook may be revised to 'Negative' in case of
pressure on the firm's profitability negatively affecting its
cash accruals or larger-than-expected debt-funded capex, leading
to deterioration in its financial risk profile.
About Shree Krishna
SKI was incorporated in 2010 for installing a cotton ginning unit
and to manufacture cotton seed oilcake in Bhiwani (Haryana). The
firm is promoted by the Singla and Yadav families of Haryana. The
firm has capacity of 60 tonnes per day (tpd) and 45 tpd of cotton
and cottonseed, respectively, and became operational in November
2011.
SRI KALYANI: CRISIL Cuts Rating on INR204.7MM Loans to 'CRISIL B'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the long term bank facilities
of Sri Kalyani Agro Products & Industries Ltd to 'CRISIL
B/Stable' from 'CRISIL B+/Stable', and reaffirmed the rating on
the short-term bank facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 120.0 CRISIL B/Stable (Downgraded
from CRISIL B+/Stable)
Letter of Credit 20.0 CRISIL A4 (Reaffirmed)
Term Loan 84.7 CRISIL B/Stable (Downgraded
from CRISIL B+/Stable)
Warehouse Financing 30.0 CRISIL A4 (Reaffirmed)
The downgrade reflects expected deterioration in SKAPIL's
liquidity over the near term because of stretch in its working
capital requirements and decline in its cash accruals. The
stretch in working capital requirements is expected as the
company has not received full payment of the bills it raised to
Transmission Corporation of Andhra Pradesh Limited (AP Transco).
As per SKAPIL's revised power purchase agreement with AP Transco,
signed in December 2011, SKAPIL is eligible to raise around
INR5.39 per kilowatt hour (kWH); however, AP Transco continues to
pay around INR3.58 per kWH as per the old agreement rate. SKAPIL
has filed a petition with the High Court of Andhra Pradesh
against AP Transco for the receipt of the remainder payment;
however, the final order on the petition is awaited. The lower
payment by AP Transco has increased SKAPIL's working capital
requirement and increased its reliance on outside funding. CRISIL
believes that SKAPIL's liquidity will remain constrained over the
near term because of stretched working capital cycle and reduced
cash accruals.
The ratings continue to reflect SKAPIL's weak financial risk
profile marked by high gearing and weak debt protection metrics,
and large working capital requirements. These rating weaknesses
are partially offset by the extensive experience of SKAPIL's
promoters in the rice mill business, and the stable demand from
Food Corporation of India (FCI, rated 'CRISIL AAA (SO)/Stable').
Outlook: Stable
CRISIL expects SKAPIL's liquidity to remain constrained over the
near term because of its reduced cash accruals. Nevertheless, the
company will continue to benefit from its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
SKAPIL effectively manages its working capital requirements,
leading to improvement in its liquidity, or increases its
revenues and improves profitability significantly, while
improving its capital structure. Conversely, the outlook may be
revised to 'Negative' if SKAPIL faces further stretch in its
debtor levels or undertakes a larger-than-expected debt-funded
capital expenditure programme, leading to further weakening in
its financial risk profile.
About Sri Kalyani
SKAPIL was originally formed in 1985 as a partnership firm,
Kalyani Agro Products and Industries, by Mr. Vanapalli Narayana
Rao and his family members, and was reconstituted as a public
limited company, with its current name, in 1999. It is based in
the West Godavari district of Andhra Pradesh. The company has a
rice mill, with processing capacity of 480,000 quintals per
annum. In 2002, the company set up a 4 megawatt-(MW) biomass
power plant. In 2005, SKAPIL also set up a steel ingot
manufacturing unit, with capacity of 33,000 tonnes.
SKAPIL reported a profit after tax (PAT) of INR4.1 million on net
sales of INR946.0 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR4.0 million on net
sales of INR752.6 million for 2009-10.
STANGL PICKLES: CRISIL Assigns 'D' Rating to INR83MM Loans
----------------------------------------------------------
CRISIL has downgraded its rating on the short-term bank
facilities of Stangl Pickles & Preserves (part of the Ravibala
group) to 'CRISIL D' from 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bill Purchase- 50 CRISIL D (Downgraded
Discounting Facility from 'CRISIL A4')
Letter of Credit 8 CRISIL D (Downgraded
from 'CRISIL A4')
Packing Credit 25 CRISIL D (Downgraded
from 'CRISIL A4')
The rating downgrade reflects Stangl's instances of delays in
servicing its bank facilities; the delays have been caused by the
Ravibala group's weak liquidity.
The Ravibala group has a weak financial risk profile, marked by a
high gearing and a small net worth, and has volatile revenues.
The group is also exposed to risks related to adverse regulatory
changes, to adverse climatic conditions, to epidemic-related
factors, and to volatility in raw material prices. However, the
group benefits from its promoters experience in the gherkin
export business.
For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Ravibala Imports and Exports
(Ravibala) and Stangl, together referred to as the Ravibala
group. This is because the entities are under a common
management, are in similar lines of business, and have close
operational linkages, including fungible cash flows, with each
other.
About the Group
Ravibala, set up in 1994 by Mr. M Gnanashekar, is the flagship
firm of the group. The Sivagangai (Tamil Nadu)-based firm
cultivates and exports processed and semi-processed gherkins and
also manufactures coir pith. Set up in 2004, Stangl is engaged in
the packaging and exporting of gherkins, processed in Ravibala
Imports. The firm packages the processed gherkins in various
bottle sizes ranging from 70 millilitre (ml) to 1000 ml. The
group has a gherkin processing facility of around 10,000 tonnes
per annum.
The Ravibala group reported a net loss of INR16.7 million on net
revenues of INR156.0 million for 2010-11, against a profit after
tax (PAT) of INR1.9 million on net revenues of INR239.5 million
for 2009-10.
=================
I N D O N E S I A
=================
ANEKA TAMBANG: Moody's Says Indonesia Export Tax Credit Negative
----------------------------------------------------------------
On May 6, Indonesia announced imposing of a 20% tax on the export
of certain unprocessed minerals, including nickel, tin, gold,
copper, silver, lead, zinc, chromium, platinum, bauxite, iron ore
and manganese. The tax will be credit negative for P.T. Aneka
Tambang (Persero) Tbk (Antam, Ba3 stable), which derived
approximately 70% of its revenue from export of nickel, gold and
bauxite in 2011.
"Given that the metals Antam exports are sold at international
prices, the company will not be able to fully pass through the
export tax to its customers," says Vikas Halan, a Vice President
- Senior Analyst at Moody's, and lead analyst for Antam.
"Although, the detailed regulation is yet to be published, if the
government taxes all of Antam's exports and the company cannot
pass along any of those taxes to its customers, its EBITDA margin
would fall by nearly half from approximately 37% in 2011. The
impact may be lower if the company, being 65%-owned by the
government, either is able to get exemption or to reduce its
proportion of exports" Mr. Halan adds.
The government also announced banning the export of unprocessed
minerals by miners that have not yet finalized a plan to start
constructing smelters to process their ores. Antam is well
positioned on this aspect of the regulation as it is already
working on a number of projects to process its ores and they will
start coming online in the next two to three years.
The tax is the first step to a blanket ban on the export of raw
minerals by 2014. The export tax's aim is to boost domestic
investment and allow the government to take a bigger slice of
mining revenue.
In addition to being credit negative for Indonesia's mining
industry, the export tax discourages foreign investments in the
sector. The tax comes just over two months after the government
imposed a new regulation that obliges foreign companies to divest
51% of their stakes in Indonesian mining assets after 10 years of
production.
The revised tax on raw mineral export excludes coal. However,
even if it included coal, Moody's rated Indonesian coal companies
-- Adaro (Ba1 Stable), Bumi Resources (Ba3 Stable), Indika
Energy (B1 Positive) and Berau Coal Energy (B1 Positive) -- would
not be affected owing to their "lex specialis," or special law
status, which exempts them from any changes in Indonesian general
law, such as revisions to the general tax code, investment laws,
and land use laws, that occur after the respective Coal Contract
of Work (CCoW) was signed between each miners (in earlier years)
and the government. Tax rates for first-generation CCoW miners
are fixed for the duration of the contract (13.5% royalty and 45%
corporate income tax).
Despite coal companies' exemption from the latest tax, Indonesia
is mulling a ban on the export of low -- calorific value thermal
coal starting in 2014. Currently, mining companies have no
economically viable technology available to convert low-ranking
coal into higher ranking coal. As a result, a ban may erode
mining companies' revenues, if Indonesia's domestic power sector
does not sufficiently grow in the next two years to absorb the
huge domestic coal supply.
"These tax and export changes highlight the regulatory risks
associated with operating in Indonesia, and will have a negative
impact on foreign direct investment into the country's resources
sector as investors seek more clarity on companies' business
plans in light of these evolving regulations," says Mr. Halan.
=========
J A P A N
=========
ELPIDA MEMORY: Micron in Talks to Acquire Japanese Chipmaker
------------------------------------------------------------
Bloomberg News reports that Micron Technology Inc. said it's in
talks to buy Elpida Memory Inc., the Japanese chipmaker that
filed for bankruptcy in February, adding capacity to make chips
used in personal computers and smartphones.
Bloomberg relates that Micron said it got the approval from the
Tokyo District Court on May 10 to negotiate to acquire Elpida's
entire business. Elpida picked Micron after holding a bidding,
the Tokyo-based company said in a separate statement.
According to Bloomberg, acquiring Elpida would double Micron's
share of the global market for dynamic random-access memory, the
most widely used chips in PCs, to about 24%, helping it compete
against industry leader Samsung Electronics Co. Elpida, which has
three factories, also supplies Apple Inc. with chips used in
iPhones.
Yukio Sakamoto, Elpida's president, is heading the company's
restructuring efforts after getting court approval to serve as
its trustee March 23. The company plans to submit its revival
plan Aug. 21.
As reported in the Troubled Company Reporter-Asia Pacific on
May 8, 2012, The Japan Times Online said that the bankruptcy
administrators of Elpida Memory Inc. have decided to select
Micron Technology Inc. to sponsor its rehabilitation program,
sources said. According to Japan Times, Micron has offered a
total of JPY220 billion in financial assistance and would also
allow Elpida, Japan's only maker of dynamic random access memory
chips, to retain its two main plants in Hiroshima and Akita
prefectures, the sources said. The U.S. chip manufacturer will
likely receive preferential negotiation rights, and a final deal
could be concluded by the end of the month, according to the
sources, Japan Times related.
About Elpida Memory
Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is
a Japan-based company principally engaged in the development,
design, manufacture and sale of semiconductor products, with a
focus on dynamic random access memory (DRAM) silicon chips. The
main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM,
Mobile RAM and XDR DRAM, among others. The Company distributes
its products to both domestic and overseas markets, including the
United States, Europe, Singapore, Taiwan, Hong Kong and others.
The company has eight subsidiaries and two associated companies.
After semiconductor prices plunged, Japan's largest maker of DRAM
chips filed for bankruptcy in February with liabilities of 448
billion yen ($5.6 billion) after losing money for five quarters.
Elpida Memory and its subsidiary, Akita Elpida Memory, Inc.,
filed for corporate reorganization proceedings in Tokyo District
Court on Feb. 27, 2012. The Tokyo District Court immediately
rendered a temporary restraining order to restrain creditors from
demanding repayment of debt or exercising their rights with
respect to the company's assets absent prior court order.
Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo
Court as Supervisor and Examiner in the case.
Elpida Memory Inc. sought the U.S. bankruptcy court's recognition
of its reorganization proceedings currently pending in Tokyo
District Court, Eight Civil Division. Yuko Sakamoto, as foreign
representative, filed a Chapter 15 petition (Bankr. D. Del. Case
No. 12-10947) for Elpida on March 19, 2012.
OLYMPUS CORP: Posts JPY48.99 Bil. Net Loss for FY2011
-----------------------------------------------------
Japan Today reports that Olympus Corp. on Thursday posted a
JPY48.99 billion loss in the year to March, a shortfall largely
tied to a loss cover-up at the camera and medical equipment maker
that hammered Japan's corporate-governance image.
Japan Today says the firm attributed the loss to a scandal that
sparked lawsuits and the arrest of former executives accused of
hiding about US$1.7 billion in investment losses.
According to the report, Olympus said the result, which reversed
a small profit of JPY3.87 billion a year earlier and was bigger
than forecast, was largely attributed to costs related to the
cover-up.
The company, which declined to give an earnings forecast for the
fiscal year ending March 2013, said it booked sales of
JPY848.55 billion in the latest period, up slightly from the
previous year.
Olympus said the results were hampered by a not-previously-
announced "additional special loss" of JPY8.82 billion, which
included a "revaluation of assets" as well as "losses linked to
the restructuring of systems-related businesses," Japan Today
relays.
About Olympus Corp.
Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products. As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.
====================
N E W Z E A L A N D
====================
TRINITY ROOTS: Placed In Liquidation Over Unpaid Taxes
------------------------------------------------------
Fairfax NZ News reports that celebrated Wellington band Trinity
Roots' registered trading company has been put into liquidation
owing nearly NZ$100,000 to Internal Revenue Department.
According to the news agency, liquidators appointed this month
have assumed control of Trinity Roots Ltd's finances, but say it
has virtually no assets and any unsecured creditors are unlikely
to be repaid.
The company's listed directors are founding members Rio Hemopo
and Warren Maxwell. Maxwell also played with Fat Freddy's Drop
and is the front man of Little Bushman. Former members Riki Gooch
and Darren Mathiassen are listed as former directors.
The reggae and dub band was formed in 1998 but disbanded in 2005.
Its albums True and Home, Land and Sea were critically acclaimed
and achieved gold status in New Zealand. The band has reformed
and is due to play in Wellington on May 18.
Fairfax NZ News recalls that Trinity Roots Ltd was fined NZ$1,560
in 2006 for 22 charges of failing to file tax and GST returns
over three years. Its lawyer at the time told the court the
returns had simply been overlooked, the report says.
According to the report, liquidator Paul Bartley said at least
part of the current debt -- totalling NZ$99,140.59 in unpaid
taxes and penalties -- was linked to the historic charges.
Trinity Roots' co-manager Ange Kalogeropoulos -- Maxwell's
partner -- said the financial troubles had a long history. The
musicians had been "failed" by their previous management.
*********
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 ***