/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120702.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, July 2, 2012, Vol. 15, No. 130 Headlines A U S T R A L I A ABC LEARNING: Founder Ordered to Pay AUD5MM to Commonwealth Bank HASTIE GROUP: UAE Workers Yet to Receive Entitlements IPM AUSTRALIA: S&P Keeps 'BB+' Corp. Credit Rating; on Watch Pos LIBERTY SERIES 2012-1: S&P Rates $3.6-Mil. Cl. E Securities 'BB' C H I N A LDK SOLAR: Incurs $177 Million Net Loss in First Quarter MIE HOLDINGS: Fitch Says Proposed Investment Won't Affect Ratings H O N G K O N G CTC GARMENT: Court to Hear Wind-Up Petition on Aug. 1 EUROPE LIGHTING: Creditors Get 33.80% Recovery on Claims GOLD UNION: Court to Hear Wind-Up Petition on Aug. 22 JOIN LEADER: Court to Hear Wind-Up Petition on Aug. 8 HONEST PORT: Court Enters Wind-Up Order HONEST PORT INVESTMENT: Court Enters Wind-Up Order HONOUR HALL: Court Enters Wind-Up Order KAM YUEN: Court to Hear Wind-Up Petition on Aug. 15 MYRIAD FINE: Court Enters Wind-Up Order NICE HARVEST: Court Enters Wind-Up Order UNITED TECHNOLOGY: Court to Hear Wind-Up Petition on Aug. 22 WAH NAM: Arab and Wong Appointed as Liquidators WELL DELUXE: Court Enters Wind-Up Order WINTAX COMPANY: Creditors Get HK$50/Share Recovery on Claims YUE XIU: Court to Hear Wind-Up Petition on Aug. 1 I N D I A AIR INDIA: Pilots' Strike the Longest Pilot Stir in 40 Years APEX HEALTHCARE: CRISIL Assigns 'B+' Rating to INR53.9MM Loans BHAGAVATHI SPINNERS: CRISIL Rates INR60MM Loans 'CRISIL B+' BHOOMI FASHION: CRISIL Raises Rating on INR108.3MM Loans to 'B+' BIJASANI GINNING: CRISIL Assigns 'B' Rating to INR60MM Loans CLASSIC MICROTECH: CRISIL Raises Rating on INR49.9MM Loans DISHA INDUSTRIES: CRISIL Assigns 'B-' Rating to INR448MM Loans D.K. ENGINEERING: CRISIL Rates INR7.5 Cash Credit at 'CRISIL B' DURGA AUTOMOTIVES: Delay in Loan Payment Cues CRISIL Junk Ratings JAI MAAKALI: CRISIL Assigns 'CRISIL B+' Rating to INR160MM Loans J.J. GLASTRONICS: CRISIL Places 'D' Rating on INR160MM Loans KULAR CONSTRUCTION: CRISIL Lifts Rating on INR110MM Loans to 'B+' SUNSTAR MERCANTILE: CRISIL Cuts Rating on INR98.6MM Loans to 'D' SURAJ PRECISION: CRISIL Cuts Rating on INR131.6MM Loan to 'D' I N D O N E S I A BAKRIE SUMATERA: S&P Downgrades Corp. Credit Rating to 'CC' J A P A N ELPIDA MEMORY: Micron Agrees to Buy Firm for JPY200 Billion NCI TRUST: S&P Puts 'B-' Rating on Class D Certs. on Watch Neg TOKYO ELECTRIC: Moody's Affirms 'Ba3' CFR; Outlook Negative N E W Z E A L A N D NATHAN'S FINANCE: Civil Case to Start This Month S I N G A P O R E HONG NGIAP: Creditors' Meetings Set for July 3 HUMPUSS SEA: Creditors' Meeting Set for July 6 HYMICS HOLDINGS: Court to Hear Wind-Up Petition July 6 LEKIM TEXTILE: Creditors Get 42.91572% Recovery on Claims MICROTRONICS ASSOC: Creditors Get 14.67808% Recovery on Claims T H A I L A N D THANACHART BANK: Fitch Affirms Support Rating Floor at 'BB+' - - - - - ================= A U S T R A L I A ================= ABC LEARNING: Founder Ordered to Pay AUD5MM to Commonwealth Bank ---------------------------------------------------------------- ABC News reports that the founder of ABC Learning Centres, Eddy Groves, has been ordered to repay more than AUD5 million to the Commonwealth Bank. ABC News relates that the bank sued Mr. Groves over an unpaid debt and the civil case was tried in the South Australian Supreme Court earlier this year. According to the report, the bank had wanted to take ownership of The Dome stadium in Adelaide as part of its claim. Lawyers for the bank argued Mr. Groves put up The Dome as security for a line of credit in return for an extension of time to pay his debt. ABC News says Justice Malcolm Blue has ruled in favor of the bank, and ordered Mr. Groves repay the amount claimed. An interim suppression order was placed on the reasons for the judgment, the report notes. It will be reviewed during a hearing next week, when the court will also finalize interest and cost orders, ABC News adds. About ABC Learning Based in Australia, ABC Learning Centres Limited provided childcare services and education in more than 1,200 centers in Australia, New Zealand, the United States and the United Kingdom. In November 2008, ABC Learning Centres Limited appointed Peter Walker and Greg Moloney of Ferrier Hodgson as voluntary administrators of the company and a number of its subsidiaries. Subsequent to the appointment of administrators, the company's banking syndicate appointed Chris Honey, Murray Smith and John Cronin of McGrathNicol as receivers. The Administrators filed a Chapter 15 petition for the Company (Bankr. D. Del. Case No. 10-11711) on May 26, 2010. Joel A. Waite, Esq., at Young, Conaway, Stargatt & Taylor, represents the Petitioners in the Chapter 15 case. ABC's debts and assets were estimated to be between US$100 million and US$500 million. A separate Chapter 15 petition was filed for affiliate A.B.C. USA Holdings Pty Ltd., listing assets and debts of at least US$100 million. In June 2010, ABC Learning creditors in Australia voted to wind up the failed childcare provider. HASTIE GROUP: UAE Workers Yet to Receive Entitlements ----------------------------------------------------- Peter Ryan at ABC News reports that few weeks after the collapse of the Hastie Group, 1,000 staff based in the United Arab Emirates (UAE) have been left in the lurch, with their former managers forced to support them out of their own pockets. In Australia, ABC News relates, about 80% of the 2,700 workers made redundant are now back working for other contractors, having received their full termination entitlements. But the 1,000 mainly Indian and Bangladeshi laborers are yet to see a cent of their entitlements, known locally as gratuities, after Hastie's bank account was drained of AUD3 million just days before administrators were appointed, according to ABC News. And a small group of Hastie managers, who have been using their own money to help abandoned employees, claim they have been left high and dry by the administrators, the report relates. According to ABC News, Hastie's general manager in Abu Dhabi, Darren Hunt, is one of four bosses left in the country, and like his workers, he feels abandoned. ABC News relates Mr. Hunter said managers have been left in the lurch and are standing by foreign laborers at their own personal expense to meet food and housing costs. "I think that what has happened is criminal . . . The three senior managers have absconded the country, left 940 employees in the Middle East," the report quotes Mr. Hunter as saying. "There is a humanitarian issue where we have got to accommodate people, we've got to provide food." About Hastie Group Hastie Group provides technical and engineering services to the building, infrastructure and resources sectors. It has operations in Australia, New Zealand, the United Kingdom, Ireland and the Middle East and has approximately 7,000 employees worldwide including approximately 4,000 in Australia. The Hastie Group of companies appointed David McEvoy, Craig Crosbie and Ian Carson of PPB Advisory as Voluntary Administrators of all of the Australian entities of Hastie Group on May 28, 2012. Peter Anderson, Joseph Hayes, Jason Preston, and Matthew Caddy of McGrathNicol were also appointed Receivers and Managers over a limited number of trading businesses within the Hastie Group by a syndicate of secured creditors on May 28, 2012. Those businesses are Spectrum Fire and Safety, Hastie Services, Gordon Brothers Industries and Austral Refrigeration. McGrathNicol said the control of those businesses now rests with the Receivers who intend to continue to trade each one on a "business as usual" basis while moving quickly to prepare them for public sale to secure their future. A sale process for the Austral business was commenced prior to the appointment and the Receivers intend to quickly complete that process. IPM AUSTRALIA: S&P Keeps 'BB+' Corp. Credit Rating; on Watch Pos ---------------------------------------------------------------- Standard & Poor's Ratings Services revised its CreditWatch to positive, from negative implications, on the 'BB+' corporate credit rating on IPM Australia Ltd. the trading arm of the Loy Yang B project. The revision in the CreditWatch follows the successful refinancing of the project's AUD1.1 billion of debt. "In addition, we have withdrawn the 'BB+' rating on LoyVic Pty Ltd.'s senior secured debt, as it has been repaid following the refinancing. On April 20, 2012, we had placed the ratings on CreditWatch negative due to our view of the company's refinancing uncertainty," S&P said. "The CreditWatch positive reflects our view that the stand-alone credit profile of IPM could benefit from parental support," Standard & Poor's credit analyst Richard Creed said. "We note the recent parental support for the wider group's Hazelwood plant." "To resolve the CreditWatch, we will need to review the terms and conditions of the new debt package, and IPM's relationship with the rest of the Australian business to ascertain the likelihood and quantum of parental support. We consider that the group has managed the assets as a portfolio notwithstanding the separate financing for each project," S&P said. "LoyVic and IPM are respectively the financing and trading arms of the Loy Yang B joint venture (LYB) that owns and operates the 1,000 megawatt brown coal-fired power plant in the Australian State of Victoria. LYB's owners comprise Mitsui & Co. Ltd. (A+/Stable/A-1; 30% share) and International Power PLC, with a 70% share (IPR; A/Stable/--). IPR is in turn 70% owned by GDF SUEZ S.A. (A/Stable/A-1)," S&P said. LIBERTY SERIES 2012-1: S&P Rates $3.6-Mil. Cl. E Securities 'BB' ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its preliminary ratings to eight of the nine classes of nonconforming residential mortgage-backed securities (RMBS) issued by Liberty Funding Pty. Ltd. in respect of the Liberty Series 2012-1 Trust. Liberty Series 2012-1 is a securitization of nonconforming residential mortgages originated by Liberty Financial Pty Ltd. The preliminary ratings reflect: - S&P's view of the credit risk of the underlying collateral portfolio, including the fact that this is a closed portfolio, which means no further loans will be assigned to the trust after the closing date; - S&P's view that the credit support is sufficient to withstand the stresses the ratings agency apply. This credit support comprises note subordination for each class of rated note; - S&P's expectation that the various mechanisms to support liquidity within the transaction, including a reserve account, principal draws, and a liquidity facility equal to 2.5% of the invested amount of all rated notes and the stated amount of the class F notes, are sufficient under S&P's stress assumptions to support timely payment of interest; - The benefit of a fixed-to-floating interest-rate swap provided by National Australia Bank Ltd. (NAB; AA-/Stable/ A-1+) to hedge the mismatch between receipts from any fixed- Rate mortgage loans and the variable-rate RMBS; and - The provision of a reserve account established and maintained through the trapping of excess spread on each payment date up to a maximum limit of A$4,500,000. The reserve account may be utilized to meet current loan losses, and as a third source of liquidity for the payment of unpaid interest. "The issuer has not informed Standard & Poor's (Australia) Pty Limited whether the issuer is publically disclosing all relevant information about the structured finance instruments the subject of this rating report or whether relevant information remains non-public," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Standard and Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com/1111691.pdf PRELIMINARY RATINGS ASSIGNED Class Rating Amount (mil. A$) A1 AAA (sf) 87.3 A2 AAA (sf) 60.0 A3 AAA (sf) 60.0 A4 AAA (sf) 60.0 B AA (sf) 9.6 C A (sf) 8.1 D BBB (sf) 5.7 E BB (sf) 3.6 F N.R. 5.7 N.R.-Not rated. ========= C H I N A ========= LDK SOLAR: Incurs $177 Million Net Loss in First Quarter -------------------------------------------------------- LDK Solar Co., Ltd., reported a net loss of US$177.15 million on US$200.10 million of net sales for the three months ended March 31, 2012, compared with a net loss of US$564.55 million on US$420.16 million of net sales for the quarter ended Dec. 31, 2011. The Company's balance sheet at March 31, 2012, showed US$6.63 billion in total assets, US$5.96 billion in total liabilities, US$228.21 million in redeemable non-controlling interests and US$447.32 million in total equity. "Our revenue was within the expected range as our results reflected first quarter seasonality and the continued difficult solar industry conditions," stated Xiaofeng Peng, Chairman and CEO of LDK Solar. "Industry-wide overcapacity continued and drove price declines across the entire solar supply chain, which significantly reduced our revenue and negatively impacted our margins." A copy of the press release is available for free at: http://is.gd/qEXd75 About LDK Solar LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi- Tech Industrial Park, Xinyu City, Jiangxi Province, People's Republic of China, is a vertically integrated manufacturer of photovoltaic products, including high-quality and low-cost polysilicon, solar wafers, cells, modules, systems, power projects and solutions. LDK Solar was incorporated in the Cayman Islands on May 1, 2006, by LDK New Energy, a British Virgin Islands company wholly owned by Xiaofeng Peng, LDK's founder, chairman and chief executive officer, to acquire all of the equity interests in Jiangxi LDK Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin Industrial Limited. KPMG in Hong Kong, China, said in a May 15, 2012, audit report there is substantial doubt on the ability of LDK Solar Co., Ltd. to continue as a going concern. According to KPMG, the Group has a net working capital deficit and is restricted to incur additional debt as it has not met a financial covenant ratio under a long-term debt agreement as of Dec. 31, 2011. These conditions raise substantial doubt about the Group's ability to continue as a going concern. MIE HOLDINGS: Fitch Says Proposed Investment Won't Affect Ratings ----------------------------------------------------------------- Fitch Ratings says that MIE Holdings Corporation's (MIE, 'B'/Stable) proposed USD100 million investment for a 51% stake in Sino Gas & Energy Limited will not have an immediate impact on its ratings. This is because MIE's current 'B' rating has built in adequate headroom for investments of this size. Under the terms of the proposed acquisition, MIE will progressively inject USD90m in SGE and pay USD10m to Sino Gas & Energy Holdings Limited for 51% of SGE. Following the proposed acquisition, MIE will have majority representation on the board of SGE, which has natural gas assets (prospective resources of 1.799 trillion cubic feet) in the resource-rich Ordos Basin in the Shanxi Province of People's Republic of China. The gas resources acquired are still in the exploration stage and the current development plan indicates that the USD90m from MIE will be sufficient to fund initial exploration costs. The gas fields acquired are located in or close to gas pipeline hubs with existing major natural gas trunk lines. The proposed transaction will be funded by MIE's existing cash- on-hand. As a result, MIE's credit metrics will be weakened; Fitch expects its leverage, as measured by funds from operations (FFO) adjusted net leverage, will be around 2x in 2012 and 2013 (end-2011: 1.2x). Under the current rating, MIE can tolerate a rise in is funds from operations (FFO)-adjusted net leverage above 3x and a decline in FFO gross interest coverage below 4.5x, on a sustained basis, before Fitch considers a negative rating action. The 'B' rating on MIE's USD400m 9.75% due 2016 senior notes is not affected by the SGE investment. However, if material senior ranking debt were to be raised by subsidiaries in the future, the senior unsecured rating and Recovery Rating may be negatively affected. MIE's ratings reflect the upstream nature of its operations and the consequential exposure to potential oil price volatility. The ratings also reflect that its size is in line with other oil and gas companies in the 'B' category. ================ H O N G K O N G ================ CTC GARMENT: Court to Hear Wind-Up Petition on Aug. 1 ----------------------------------------------------- A petition to wind up the operations of CTC Garment Limited will be heard before the High Court of Hong Kong on Aug. 1, 2012, at 9:30 a.m. Bank of China (Hong Kong) filed the petition against the company on May 30, 2012. The Petitioner's solicitors are: Rowland Chow, Chan & Co. Unit 2101, 21st Floor Malaysia Building No. 50 Gloucester Road Wanchai, Hong Kong EUROPE LIGHTING: Creditors Get 33.80% Recovery on Claims -------------------------------------------------------- Europe Lighting Group Limited will declare the dividend to its unsecured creditors only on July 25, 2012. The company will pay 33.80% for ordinary claims. GOLD UNION: Court to Hear Wind-Up Petition on Aug. 22 ----------------------------------------------------- A petition to wind up the operations of Gold Union Footwear Limited will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. DBS Bank (Hong Kong) Limited filed the petition against the company on June 20, 2012. The Petitioner's solicitors are: Wilkinson & Grist 6th Floor, Prince's Building 10 Chater Road Central, Hong Kong JOIN LEADER: Court to Hear Wind-Up Petition on Aug. 8 ----------------------------------------------------- A petition to wind up the operations of Join Leader Godown Logistics Company Limited will be heard before the High Court of Hong Kong on Aug. 8, 2012, at 9:30 a.m. Ideascape Limited filed the petition against the company on June 5, 2012. The Petitioner's solicitors are: Danny Lau & Lam Unit 2702, 27th Floor West Tower, Shun Tak Centre No. 168-200 Connaught Road Central, Hong Kong HONEST PORT: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on June 20, 2012, to wind up the operations of Honest Port Investment (Holding) Limited. The company's liquidator is Teresa S W Wong. HONEST PORT INVESTMENT: Court Enters Wind-Up Order -------------------------------------------------- The High Court of Hong Kong entered an order on June 20, 2012, to wind up the operations of Honest Port Investment Limited. The company's liquidator is Teresa S W Wong. HONOUR HALL: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on May 24, 2012, to wind up the operations of Honour Hall Engineering Limited. The company's liquidators are Ho Man Kit Horace and Kong Sze Man Simone. KAM YUEN: Court to Hear Wind-Up Petition on Aug. 15 --------------------------------------------------- A petition to wind up the operations of Kam Yuen Toys Manufactory Limited will be heard before the High Court of Hong Kong on Aug. 15, 2012, at 9:30 a.m. DBS Bank (Hong Kong) Limited filed the petition against the company on June 12, 2012. The Petitioner's solicitors are: Chu & Lau Unit A, 33rd Floor United Centre No. 95 Queensway Hong Kong MYRIAD FINE: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on June 20, 2012, to wind up the operations of Myriad Fine Chemical Limited. The company's liquidator is Teresa S W Wong. NICE HARVEST: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on June 20, 2012, to wind up the operations of Nice Harvest Investment (Holding) Limited. The company's liquidator is Teresa S W Wong. UNITED TECHNOLOGY: Court to Hear Wind-Up Petition on Aug. 22 ------------------------------------------------------------ A petition to wind up the operations of United Technology Holdings Company Limited will be heard before the High Court of Hong Kong on Aug. 22, 2012, at 9:30 a.m. Shinewing (HK) CPA Limited filed the petition against the company on June 18, 2012. The Petitioner's solicitors are: Philip K.Y. Lee & Co Suite 1203, 12th Floor Shanghai Industrial Investment Building 60 Hennessy Road Wanchai, Hong Kong WAH NAM: Arab and Wong Appointed as Liquidators ----------------------------------------------- Osman Mohammed Arab and Wong Tak Man Stephen on May 30, 2012, were appointed as liquidators of Wah Nam Group Limited. The liquidators may be reached at: Osman Mohammed Arab Wong Tak Man Stephen 29/F, Caroline Centre Lee Gardens Two 28 Yun Ping Road Hong Kong WELL DELUXE: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on April 2, 2012, to wind up the operations of Well Deluxe Limited. The company's liquidator is Pui Chiu Wing. WINTAX COMPANY: Creditors Get HK$50/Share Recovery on Claims ------------------------------------------------------------ Wintax Company Limited, which is in liquidation, will declare the first and final dividend to its creditors on July 23, 2012. The company will pay HK$50 per share for ordinary claims. YUE XIU: Court to Hear Wind-Up Petition on Aug. 1 ------------------------------------------------- A petition to wind up the operations of Yue Xiu Medicines & Health Products Company Limited will be heard before the High Court of Hong Kong on Aug. 1, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on May 25, 2012. The Petitioner's solicitors are: Li, Wong, Lam & W.I. Cheung 22nd Floor, Infinitus Plaza No. 199 Des Voeux Road Central, Hong Kong ========= I N D I A ========= AIR INDIA: Pilots' Strike the Longest Pilot Stir in 40 Years ------------------------------------------------------------ The Times of India reports that the hunger protest by the pilots of Air India entered its sixth day on Friday. According to the report, the pilots have been on strike for more than 50 days now, making it the longest running pilots' strike in the last 40 years. The report relates that the pilots went on strike on May 8, 2012, to protest against the airline's decision to train the erstwhile Indian Airlines (IC) pilots for the soon- to-be inducted Dreamliner aircraft. The union of the AI pilots, Indian Pilots' Guild (IPG) was derecognized by the airline when they went on strike, the report notes. The report adds that the members of the derecognized unions released Wednesday a press note saying that the strike is the longest strike in the last 40 years. About Air India Air India Ltd -- http://www.airindia.com/-- transports passengers throughout India and to more than 40 destinations throughout the world. Affiliate Air India Express operates as a low-fare carrier, mainly between India and destinations in the Middle East, and Air India Cargo provides freight transportation. The government of India has merged Air India with another state- controlled carrier, Indian Airlines, which has focused on domestic routes. The combined airline, part of a new holding company called National Aviation Company of India, uses the Air India brand. The new Air India and its affiliates have a fleet of more than 110 aircraft altogether. * * * The Troubled Company Reporter-Asia Pacific, citing the Hindustan Times, reported on June 19, 2009, that Air India has been bleeding cash due to excess capacity, lower yield, a drop in passenger numbers, an increase in fuel prices and the effects of the global slowdown. Air India had debt of INR42,570 crore and accumulated losses of INR22,000 crore as of March 31, 2011, according to livemint.com. In April 2012, the Union Cabinet approved an operational turnaround plan through an equity infusion of INR30,000 crore (US$5.8 billion) over the next eight years. "The Cabinet Committee on Economic Affairs (CCEA) has approved the turnaround plan (TAP) and financial restructuring plan (FRP) of Air India, under which the government will infuse INR30,000 crore into the airline by 2020-21, subject to certain milestones that AI will have to meet," civil aviation minister Ajit Singh said. APEX HEALTHCARE: CRISIL Assigns 'B+' Rating to INR53.9MM Loans -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Apex Healthcare Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 3.9 CRISIL B+/Stable (Assigned) Cash Credit 50.0 CRISIL B+/Stable (Assigned) The rating reflects AHL's below-average financial risk profile marked by low networth, high gearing, and working-capital- intensive and small-scale operations. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the pharmaceutical industry and expected improvement in scale of operations. Outlook: Stable CRISIL believes that AHL will continue to benefit from its promoters' extensive industry experience over the medium term. The outlook may be revised to 'Positive' if AHL reports higher- than-expected growth in revenues and earnings, while improving its capital structure and liquidity. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile weakens, caused most likely by substantially lower-than-expected profitability or revenues, or larger-than-expected, debt-funded, capital expenditure programme, or a stretch in its working capital cycle. About Apex Healthcare Apex Healthcare Ltd. was established as a partnership (Apex Laboratories) firm in 2003 by Mr. Umesh Mendapara and his cousins, Mr. Ramesh Gabani and Dr. Chandu Gabani. In January 2007, it was reconstituted as public limited company (closely held) and its name was changed to the current one. The company manufactures bulk drugs. Its manufacturing unit at Ankleshwar (Gujarat) has capacity of 75 tonnes per annum - the unit's current capacity utilisation is about 70 per cent. AHL, on a provisional basis, reported profit after tax (PAT) of INR2.2 million on net sales of INR104.6 million for 2011-12 (refers to financial year, April 1 to March 31), as against a PAT of INR0.9 million on net sales of INR63.44 million for 2010-11. BHAGAVATHI SPINNERS: CRISIL Rates INR60MM Loans 'CRISIL B+' ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Bhagavathi Spinners. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable (Assigned) Long-Term Loan 40 CRISIL B+/Stable (Assigned) The rating reflects BS' modest scale of operations in fragmented cotton textile industry, and exposure to risks related to volatility in prices, and its working capital intensive operations. These rating weaknesses are partially offset by the benefits that BS derives from the extensive experience of its promoters in the textile industry and its moderate financial profile marked by a low gearing and adequate debt protection metrics. Outlook: Stable CRISIL believes that BS will continue to benefit from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' if the firm improves its scale of operations and operating profitability on a sustained basis. Conversely, the outlook may be revised to 'Negative' if there is considerable decline in yarn realizations translating to lower accruals or if its working capital management deteriorates, resulting in stretched liquidity, or if BS undertakes a large debt-funded capital expenditure programme, resulting in weakening in its financial risk profile. Established in 1995 as a partnership entity, Bhagavathi Spinners is involved in the manufacture of cotton yarn. BS manufactures cotton yarn primarily in 60s counts and also 30's count carded warp yarn; its facility at Coimbatore (Tamil Nadu)has an installed capacity of 12,000 spindles The firm is promoted by Mr.Rakkiya Gounder and it is presently being managed by his sons, Mr.Subramanian and Mr.Natarajan. BS reported a profit after tax (PAT) of INR 7 million on net sales of INR 85.6 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR 5.9 million on net sales of INR 55.7 million for 2009-10. BHOOMI FASHION: CRISIL Raises Rating on INR108.3MM Loans to 'B+' ---------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Bhoomi Fashion Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 20 CRISIL B+/Stable (Upgraded from CRISIL B/Stable) Term Loan 88.3 CRISIL B+/Stable (Upgraded from CRISIL B/Stable) The upgrade reflects expected continued improvement in BFPL's capital structure and liquidity over the medium term. The company's gearing improved to about 1.9 times in as on March 31, 2012 from about 3 times a year ago, driven mainly by equity capital infusion of INR18.5 million and improvement in working capital management. Also, the company's performance has remained steady, marked by year-on-year revenue growth of 26 per cent and stable operating profitability of about 18 per cent in 2011-12 (refers to financial year, April 1 to March 31). The rating reflects BFPL's restricted flexibility in a competitive industry, with modest scale of operations and weak financial risk profile marked by small net worth and high gearing. These rating weaknesses are partially offset by the company's promoters' extensive experience in the textile industry. Outlook: Stable CRISIL believes that BFPL will continue to benefit from its established position in the textile industry and improved working capital management. The outlook may be revised to 'Positive' if BFPL's cash accruals are larger than expected, or if its capital structure improves, driven most likely by sizeable equity capital infusion. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile weakens, caused most likely by a stretch in working capital cycle or larger-than-expected, debt-funded capital expenditure. About Bhoomi Fashion Incorporated in 1996, BFPL was acquired by its current owners, Mr. Lalit Agarwal and Mr. Ramesh Agarwal, in 2008. A Surat (Gujarat)-based company, BFPL is a processing house that undertakes dyeing and printing of cotton and synthetic fabrics. The fabric supplied by the client is cleaned and dyed as per customer specifications. The company has processing capacity of around 150,000 meters of fabric per day, with capacity utilisation of 100 per cent. BFPL profit after tax (PAT) and net sales are estimated at INR2.4 million and INR197 million for 2011-12; the company reported a PAT of INR1 million on net sales of INR158 million for 2010-11. BIJASANI GINNING: CRISIL Assigns 'B' Rating to INR60MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Bijasani Ginning & Pressing Factory. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 2.5 CRISIL B/Stable (Assigned) Cash Credit 50 CRISIL B/Stable (Assigned) Standby Line of 7.5 CRISIL B/Stable (Assigned) Credit The ratings reflect BGPF's weak financial risk profile marked by high gearing and weak debt protection metrics, small scale of operations, exposure to intense completion in the cotton ginning industry, and vulnerability to adverse regulatory changes. These rating weaknesses are partially offset by BGPF's partners' extensive experience in the cotton ginning industry, leading to its established customer relationships. Outlook: Stable CRISIL believes that BGPF will continue to benefit over the medium term from its promoter-partners' extensive industry experience. The outlook may be revised to 'Positive' if the firm's scale of operations increases substantially, along with a improvement in its profitability, or if its capital structure improves, driven most likely by equity infusion or larger-than- expected cash accruals. Conversely, the outlook may be revised to 'Negative', if the firm's financial risk profile weakens, caused most likely by increase in working capital borrowings, larger- than-expected debt-funded capex, or a disruption in its operations because of adverse regulatory change. About Bijasani Ginning Formed in 2007, BGPF is a partnership firm of Mr. Sajay Choudhri and Mr. Umesh Choudhri. The firm has a cotton ginning and pressing unit at Dharangaon, Jalgaon (Maharashtra). The unit has capacity of 150 bales per day. BGPF sells cotton oil seeds to its group entity, GSR Oil Industries, for further processing. BGPF reported a net profit of INR1.4 million on net sales of INR333 million for 2010-11 (refers to financial year, April 1 to March 31), against a net profit of INR0.6 million on net sales of INR201 million for 2009-10. For 2011-12, BGPF's net sales are estimated at INR343 million. CLASSIC MICROTECH: CRISIL Raises Rating on INR49.9MM Loans ---------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Classic Microtech Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL B- /Stable' and has reaffirmed its rating on CMPL's short-term facilities at 'CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 40 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Term Loan 9.9 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') Letter of Credit 50 CRISIL A4 (Reaffirmed) The upgrade reflects improvement in CMPL's business risk profile, driven by substantial and sustained growth in its scale of operations, while the company maintained its profitability. CMPL's revenues, which increased by 72 per cent year-on-year to around INR390 million in 2011-12 (refers to financial year, April 1 to March 31), is expected to further increase by about 50 per cent in 2012-13. The growth in the company's revenues is mainly driven by addition of new customers and enhancement of business share from the older customers. CMPL's operating profit margin remained stable at around 5.2 per cent in 2011-12 and is expected to improve marginally over the medium. The improvement in margin will be driven by economies of scale - its capacity is expected to increase to 6600 tonnes per annum (tpa) from 4200 tpa with completion of its ongoing capacity expansion project by August 2012. The upgrade also reflects improvement in CMPL's financial risk profile, marked by improvement in gearing to an estimated 2.0 times as on March 31, 2012 from 2.8 times as on March 31, 2011, driven by equity infusion of INR16.1 million during 2011- 12; gearing is expected to continue to be less than 2 times over the medium term, supported by increasing cash accruals. The ratings reflect CMPL's average financial risk profile, marked by moderate gearing and average debt protection metrics, large working capital requirements, and small scale of operations. These rating weaknesses are partially offset by the extensive experience of CMPL's promoters in the tiles industry in Gujarat. Outlook: Stable CRISIL believes that CMPL will maintain its established market position in the zirconium industry over the medium term, supported by its promoters' extensive industry experience and established relationships with customers. The outlook may be revised to 'Positive' if there is substantial and sustained improvement in CMPL's profitability, while it maintains its healthy revenue growth, or there is an improvement in its working capital management, over the medium term. Conversely, the outlook may be revised to 'Negative' if there is a steep decline in the company's profitability or significant deterioration in its capital structure because of larger-than-expected working capital requirements. About Classic Microtech Incorporated in 2007, CMPL manufactures zirconium silicate and zirconium flour, which are used in the ceramic and vitrified tiles industry for whitening and glazing tiles. CMPL's current capacity of 4200 tpa is being fully utilized; the company is enhancing its capacity to 6600 tpa, which is expected to be operational by August 2012. The capacity enhancement cost is INR10.00 million, funded by debt of INR5.25 million. The promoters are also in the business of manufacturing vitrified and wall tiles under the group company, Regent Granito India Ltd, and ceramic glaze tiles under the group company, Ricasil Ceramic Industries Pvt Ltd. CMPL's profit after tax (PAT) and net sales are estimated at INR3.7 million and INR387.9 million respectively for 2011-12 (refers to financial year, April 1 to March 31); it reported a PAT of INR2.8 million on net sales of INR226.0 million for 2010- 11. DISHA INDUSTRIES: CRISIL Assigns 'B-' Rating to INR448MM Loans -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the long- term bank facilities of Disha Industries Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 105 CRISIL B-/Stable (Assigned) Term Loan 343 CRISIL B-/Stable (Assigned) The rating reflects DIL's exposure to risks related to the implementation of its kraft paper facility project, and weak financial risk profile marked a high gearing and low net cash accruals. These rating weaknesses are, however, partially offset by the extensive experience of DIL's promoters in the paper industry. Outlook: Stable CRISIL believes that DIL will benefit over medium term from its promoters' extensive experience in the paper industry, and will remain dependent on infusion of funds by its promoters to support the payment of its interest obligations. The outlook may be revised to 'Positive' in case the company stabilizes its operations earlier than expected, registers better-than-expected revenue growth, or records higher-than-expected profitability. Conversely, the outlook may be revised to 'Negative' if DIL reports less-than-expected revenues and profitability, or if it undertakes a large, debt-funded capital expenditure programme. About Disha Industries DIL was set up by Mr. Ajay Paliwal and Mr. Suraj Prakash in 1995; however, the company has remained non-operational till date. It is setting up a 39,600-tonne-per-annum kraft paper plant in Mujjaffarnagar (Uttar Pradesh). The total cost of the project is expected to be INR588 million, which is to be funded through a term loan of INR343 million and promoter's contribution for the rest. The plant is expected to commence commercial production in September 2012. The bursting factor is expected to remain in the range of 20 to 26. D.K. ENGINEERING: CRISIL Rates INR7.5 Cash Credit at 'CRISIL B' --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank loan facilities of D.K. Engineering & Construction Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 35.0 CRISIL A4 (Assigned) Cash Credit 7.5 CRISIL B/Stable The ratings reflect DKECPL's large working capital requirements and small scale of operations in the competitive and fragmented civil construction industry. These rating weaknesses are partially offset by the experience of the promoters in the civil construction industry. Outlook: Stable CRISIL believes that DKECPL will maintain its business risk profile, backed by the experience of its promoters in the civil construction industry. The outlook may be revised to 'Positive' if DKECPL strengthens its business risk profile by improving its scale of operations and, improves its liquidity, driven by better-than-expected cash accruals or improvement in working capital management. Conversely, less-than-expected accruals, stretch in working capital cycle, any large, debt-funded capital expenditure (capex), leading to deterioration in the company's liquidity, may lead to a revision in the outlook to 'Negative'. About D.K. Engineering Incorporated in 2000, DKECPL is promoted by Mr. Deokant Jha and Mr. Vinay Kumar Jha. Prior to its reconstitution as a private limited company in 2000, it operated as a proprietorship concern under the name D K Engineering & Construction. The company is engaged in civil construction work for government organisation such as Public Works Department (PWD) and Prime Minister Gramin Sadak Yogna (PMGSY), primarily in Bihar and Arunachal Pradesh. It mainly undertakes projects related to construction of roads and bridges. DURGA AUTOMOTIVES: Delay in Loan Payment Cues CRISIL Junk Ratings ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL D' rating to the long-term bank facilities of Durga Automotives Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 46.30 CRISIL D (Assigned) Cash Credit 40.00 CRISIL D (Assigned) Inventory Funding 100.00 CRISIL D (Assigned) Facility The rating reflects the instances of delay by DAPL in servicing its debt; the delays have been caused by the company's weak liquidity. DAPL also has a weak financial risk profile marked by a high gearing and a small net worth. The company, however, benefits from its promoters' extensive industry experience. DAPL was set up in 1998; in the same year, the company started its authorised service centre for passenger cars of Mahindra & Mahindra Ltd in Siliguri (West Bengal). In 1999, DAPL started its authorised dealership and service centre for Hyundai Motor India Ltd in Siliguri. In 2002, DAPL started an authorised dealership of three wheelers for Piaggio Vehicles Pvt Ltd in Siliguri. DAPL has three showrooms of HMIL in Siliguri, Malda, and Cooch Behar, and three branches in Jaigaon, Darjeeling, and Siliguri (all in West Bengal). Moreover, the company has one showroom for Piaggio in Cooch Behar. Around 92 per cent of DAPL's total revenues are generated through sales of passenger cars (90 per cent from HMIL and the rest from Piaggio). JAI MAAKALI: CRISIL Assigns 'CRISIL B+' Rating to INR160MM Loans ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Jai Maakali Fish Farms Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B+/Stable (Assigned) Proposed Long-Term 10 CRISIL B+/Stable (Assigned) Bank Loan Facility The rating reflects JMFFPL's weak financial risk profile, marked by a small size of net worth and weak debt protection metrics, small scale of operations in a fragmented and competitive industry, working-capital-intensive operations, and susceptibility to volatility in raw material prices. These rating weaknesses are partially offset by the benefits that JMFFPL derives from its promoters' extensive experience in the fish cultivation and poultry businesses. Outlook: Stable CRISIL believes that JMFFPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case the company significantly improves its financial risk profile, most likely because of capital infusion by its promoters and better-than- expected revenues and profitability, along with improvement in its working capital management. Conversely, the outlook may be revised to 'Negative' in case the company reports a decline in its profitability or revenues or there is a stretch in its working capital cycle, resulting in lower-than-expected cash accruals, or if it undertakes any larger-than-expected, debt- funded capital expenditure programme, leading to deterioration of its financial risk profile. About Jai Maakali Jai Maakali Fish Farms Pvt Ltd, incorporated in 2003, is based in Tanuku (Andhra Pradesh). The company is engaged in cultivation of fish such as Rohu and Katla across 2750 acres at Potluru and Dosapadu villages in West Godavari District (Andhra Pradesh). JMFFPL is promoted by Mr. Kumar Pappu Singh, who has more than two decades of experience in the poultry business. JMFFPL, on a provisional basis, reported a profit after tax (PAT) of INR6.6 million on a net sales of INR160.1 million for 2011-12 (refers to financial year 2011-12) against a PAT of INR2.5 million on a net sales of INR104.7 million for 2010-11. J.J. GLASTRONICS: CRISIL Places 'D' Rating on INR160MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of J.J. Glastronics Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 73.4 CRISIL D (Assigned) Foreign Bill Purchase 46.6 CRISIL D (Assigned) Packing Credit 40 CRISIL D (Assigned) The ratings reflect instances of delay by JJGPL in servicing its term debt; the delays have been caused by the company's weak liquidity as it has made losses in the last three years resulting in low cash accruals. JJGPL also has a weak financial risk profile marked by a high gearing, and a constrained financial flexibility because of large working capital requirements. The company, however, benefits from its promoters' exensive industry experience and its established customer base. About J.J. Glastronics JJGPL was set up in 1996 by members of the Jhunjhunwala family; it is actively managed by its managing director, Mr. Anuj Jhunjhunwala. The company manufactures electronic and machined components used in televisions, monitors, refrigerators, air conditioners, and automobiles. It has two manufacturing facilities at Electronic City in Bengaluru (Karnataka). JJGPL derives around 80 per cent of its revenues from export. The company's products include glass rods used in colour picture tubes, glass to metal seals used in refrigerators and air conditioners, and machined components used in the automobile industry. For 2010-11 (refers to financial year, April 1 to March 31), JJGPL reported a loss of INR29.5 million on net sales of INR290.8 million, against a loss of INR44.8 million on net sales of INR322.4 million for 2009-10. KULAR CONSTRUCTION: CRISIL Lifts Rating on INR110MM Loans to 'B+' ----------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Kular Construction Ltd to 'CRISIL B+/Stable' from 'CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12.5 CRISIL B+/Stable (Upgraded from 'CRISIL D') Term Loan 75.0 CRISIL B+/Stable (Upgraded from 'CRISIL D') Proposed Long-Term 22.5 CRISIL B+/Stable (Upgraded Bank Loan Facility from 'CRISIL D') The rating upgrade reflects KCL's track record of timely debt servicing over the past 12 months, driven by improvement in its liquidity. The company has prepaid its term loan instalments for the next 18 months. The company's liquidity has improved on account of increase in its accruals driven by sale of its commercial complex over the past two years; the proceeds of the sale were utilised for the term loan repayment. Moreover, KCL's promoters infused equity of INR50 million into the company in 2011-12 (refers to financial year, April 1 to March 31), which has further supported its liquidity. The rating upgrade also factors in the significant improvement in KCL's financial risk profile, driven by equity infusion and conversion of unsecured loans into equity. The company's net worth as on March 31, 2012, is estimated at INR179 million, up from INR18 million as on March 31, 2010. The company's gearing is estimated to have declined to 0.6 time as on March 31, 2012, from 11.2 times as on March 31, 2010. The gearing is expected to decline to around 0.5 time over the medium term, with repayment of term loan instalment leading to decline in debt and driven by continuous accretions to reserves. The ratings continue to reflect KCL's small scale of operations, low net worth, and exposure to risks related to cyclicality in the hospitality segment. These rating weaknesses are partially offset by KCL's improved financial risk profile marked by a low gearing and healthy debt protection metrics. Outlook: Stable CRISIL believes that KCL's financial risk profile will improve over the medium term, driven by continuous decline in debt. However, the company's scale of operations is expected to remain small because of low occupancy level at its hotel. The outlook may be revised to 'Positive' if KCL reports higher-than-expected occupancy level, leading to higher-than-expected revenues and profitability, resulting in improvement in the company's liquidity. However, the outlook may be revised to 'Negative' if KCL's revenues and profitability decline, driven by lower-than- expected occupancy leading to deterioration in its liquidity. About the Group Incorporated in 1984, KCL was promoted by Mr. Bhajan Singh. It was engaged in civil construction until 2004, when it received a franchisee from the ITC group of hotels to construct Fortune Klassik Hotel in Ludhiana (Punjab). By this time, Mr. Bhajan Singh's sons had joined the business. The hotel was opened in July 2006 with all 75 rooms in operations. It also has restaurants and banquet halls which are also operational. However, the sixth and the ninth floors are yet to be constructed; the company plans to set up club rooms, spa and saloon on these floors. The company has sold 90 per cent of the commercial space and is likely to sell the balance in 2012-13. The total cost of the project was around INR400 million, funded through term loans of INR240 million and through promoters' contribution. KCL reported a profit after tax of INR29 million on net sales of INR228.4 million for 2010-11, against a net loss of INR2.1 million on net sales of INR98.4 billion for 2009-10. SUNSTAR MERCANTILE: CRISIL Cuts Rating on INR98.6MM Loans to 'D' ---------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Sunstar Mercantile Company Ltd to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 5 CRISIL D (Downgraded from 'CRISIL A4') Cash Credit 40 CRISIL D (Downgraded from 'CRISIL A4') Letter of Credit 10 CRISIL D (Downgraded from 'CRISIL B/Stable') Proposed Long-Term 43.6 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B/Stable') Rupee Term Loan 88.4 CRISIL D The downgrade reflects the instances of delays by SMCL in meeting its current interest payments on its term loan; the delays have been caused by the company's weak liquidity. SMCL has been continuously delaying its interest payments over the past three months. The weak liquidity is reflected in the company's frequently overdrawn cash credit lines, and instances of devolvement of its letter of credit facility in the recent past. SMCL has weak liquidity, mainly because of stretch in receivables from its customers against immediate payment made to the suppliers, resulting in cash-flow mismatches. SMCL also has a limited industry track record, modest scale of operations, and weak financial risk profile marked by a small net worth and a high gearing. The company, however, benefits from its promoter's extensive industry experience. About Sunstar Mercantile SMCL was set up in 1999 by Mr. Kailesh Maheshwari; it commenced operations in 2010. The company texturises partially oriented yarn (POY). It sources polyethylene terephthalate chips, the key raw material for POY, from Sanghi Industries Ltd and Indorama Synthetics (India) Ltd, and outsources the same for processing into POY on a job-work basis. The POY is then texturised by SMCL and sold in the market. SMCL has eight texturising machines, with total capacity of producing 550 tonnes per month. SURAJ PRECISION: CRISIL Cuts Rating on INR131.6MM Loan to 'D' ------------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Suraj Precision Engineering Works Pvt Ltd to 'CRISIL D' from 'CRISIL BB/Stable'. The rating downgrade reflects instances of delay by SPEWPL in servicing its term loan; the delays have been caused by the company's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90.0 CRISIL D (Downgraded from 'CRISIL BB/Stable') Long-Term Loan 41.6 CRISIL D (Downgraded from 'CRISIL BB/Stable') SPEWPL also has large working capital requirements and customer concentration in its revenue profile. These rating weaknesses are partially offset by the benefits that SPEWPL derives from its strong track record in the automobile components industry. Set up in 1979 in Chennai (Tamil Nadu) by Mr. Sushil Haridass and Mr. C K Haridass, SPEWPL manufactures automobile components, including steering races and retainers for two-wheelers. The company sells its products to Hero MotoCorp Limited (rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+') and Royal Enfield, a unit of Eicher Motors Ltd. SPEWPL also undertakes jobwork for Ashok Leyland Ltd (rated 'CRISIL AA-/Stable/CRISIL A1+'), Delphi-TVS Diesel Systems Ltd, and Ucal Auto Pvt Ltd. For 2010-11 (refers to financial year, April 1 to March 31), SPEWPL reported a profit after tax (PAT) of INR7.7 million on net sales of INR340.4 million, against a PAT of INR6.6 million on net sales of INR265.1 million for 2009-10. ================= I N D O N E S I A ================= BAKRIE SUMATERA: S&P Downgrades Corp. Credit Rating to 'CC' ----------------------------------------------------------- Standard & Poor's Ratings Services lowered its long-term corporate credit rating on Indonesian plantation company PT Bakrie Sumatera Plantations Tbk. to 'CC' from 'CCC+'. "At the same time, we lowered our long-term corporate credit rating on Agri International Resources Pte. Ltd. (CC/Watch Negative/--) to 'CC' from 'CCC+'. We also lowered our issue rating on Agri International's guaranteed US$150 million senior secured notes due July 15, 2012, to 'CC' from 'CCC+'. All the ratings remain on CreditWatch, where they were first placed with negative implications on May 31, 2012. AI Finance B.V., a wholly owned subsidiary of Indonesian plantation company Agri International, issued the notes," S&P said. "We lowered the ratings because BSP is taking longer than we had expected to finalize a loan to repay the guaranteed notes of its subsidiary Agri International," said Standard & Poor's credit analyst Vishal Kulkarni. "Any further delay would substantially increase the risk of default by Agri International. Due to a cross default clause in BSP's syndicated bank loan documents, a default on Agri International's notes would be tantamount to a default by BSP." "We understand that BSP is in discussions with prospective lenders for refinancing the notes. Such an arrangement could materialize close to the notes' maturity date of July 15, 2012," S&P said. "We aim to resolve the CreditWatch placements within the next three weeks," said Mr. Kulkarni. "We will lower our ratings on BSP and on Agri International to 'D' if Agri International fails to repay the notes by July 15, 2012. We could upgrade the companies to up to 'CCC+' if Agri International refinances the notes on time." ========= J A P A N ========= ELPIDA MEMORY: Micron Agrees to Buy Firm for JPY200 Billion ----------------------------------------------------------- Kyodo News reports that Micron Technology Inc. has agreed to buy Elpida Memory Inc. for about JPY200 billion, paving the way for a foreign firm to rehabilitate the only Japanese maker of dynamic random access memory chips, sources said Friday. Kyodo News' sources said Micron is expected to also invest around JPY100 billion to boost production facilities at Elpida. According to the report, sources said the Idaho-based firm will seek to write off around 70% of the failed chipmaker's liabilities, totaling about JPY420 billion. Reuters, citing the Nikkei business daily, relates that Elpida's creditors have agreed to forgive 70% of JPY420 billion (US$5.3 billion) of debts. Elpida will submit its restructuring plan to the Tokyo district court by August 21, Kyodo News adds. 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. NCI TRUST: S&P Puts 'B-' Rating on Class D Certs. on Watch Neg -------------------------------------------------------------- Standard & Poor's Ratings Services has placed its ratings on the class A to D trust certificates issued under the NCI Trust Certificate-2 transaction on CreditWatch with negative implications. "The trust certificates issued under this transaction were originally backed by one specified bond and seven loans, six of which were repaid. As of , only one loan and one specified bond remain. The loan and specified bond originally represented a combined 41% or so of the total rated initial issuance amount of the trust certificates. The remaining loan defaulted in February 2012, while the expected maturity of the specified bond was in the same month," S&P said. "Although collection activities relating to the remaining loan and specified bond are underway, the sales of the related collateral properties have not yet been completed. As such, we see downward pressure on the ratings on the class A to D trust certificates, given the status of the property sales and the limited remaining period until the transaction's legal final maturity date in September 2013. We placed our ratings on classes A to D on CreditWatch negative to reflect this view. We intend to review our ratings on these classes after reviewing our assumption for the likely collection amount from, and ascertaining progress in the sales of, the properties," S&P said. NCI Trust Certificate-2 is a multiborrower commercial mortgage- backed securities (CMBS) transaction. The trust certificates issued under the transaction were initially secured by seven loans and one specified bond that were ultimately secured by 22 real estate properties. The transaction was arranged by Nomura Securities Co. Ltd. "The ratings reflect our opinion on the likelihood of the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date in September 2013 for the class A certificates, and the full payment of interest and ultimate repayment of principal by the legal final maturity date for the class B to D certificates," S&P said. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS PLACED ON CREDITWATCH NEGATIVE NCI Trust Certificate-2 JPY31.1465 billion trust certificates due Sept. 2013* Class To From Initial issue amount A AAA (sf)/Watch Neg AAA (sf) JPY22.8 bil. B A (sf)/Watch Neg A (sf) JPY4.2 bil. C BB- (sf)/Watch Neg BB- (sf) JPY2.3 bil. D B- (sf)/Watch Neg B- (sf) JPY1.4535 bil. *Class R (initial issue amount: JPY0.393 bil.) is not rated. TOKYO ELECTRIC: Moody's Affirms 'Ba3' CFR; Outlook Negative ----------------------------------------------------------- Moody's Japan K.K. has affirmed the ratings of Tokyo Electric Power Company, Incorporated. The affected ratings are its Ba3 corporate family rating; Ba2 senior secured rating; and B1 long-term issuer rating. The rating outlook remains negative. The affirmation follows the change in TEPCO's ownership status due to shareholder approval on June 27, 2012, of a substantial capital injection from the government, as proposed by the company's management. Consequently, TEPCO will be about 25% owned by the government following the injection by the Nuclear Damage Compensation Facilitation Fund (not rated by Moody's, 50% owned by the government) by July 25, 2012. Accordingly, Moody's now views TEPCO -- previously an entirely private company -- as a government related issuer (GRI) and analyzes it under Moody's GRI Rating Methodology. Moody's notes that the Nuclear Damage Compensation Facilitation Fund plans to eventually return TEPCO to full private status and in accordance with the comprehensive special business plan jointly prepared by the company and the fund, and approved by the government on May 9, 2012. Moody's has not adjusted TEPCO's ratings in light of the government's ownership because they already factor in the direct and indirect support provided by the government. Government support for TEPCO following the March 11, 2011 earthquake has been extensive and involved liquidity support including that from the Development Bank of Japan (Aa3), establishment of the compensation framework, and approval of TEPCO's special business plans. Moody's notes that this support has been based on the political consensus on the need to keep TEPCO financially viable to minimize the overall burden on taxpayers, ensure stable energy supply, and compensation payments. Without support from the government, TEPCO would be technically in default, given the gap between its projected compensation obligations of JPY2.5 trillion and its equity of JP812 billion at end-March 2012. This is the rationale for Moody's baseline credit assessment (BCA) of 18 (equivalent to Caa2). Because of its full reliance on the domestic market, the dependence of TEPCO on the government is "very high". In view of developments since March 11, 2011, the probability of support is "high". In Moody's Joint Default Analysis, support probability is a measure of the possibility that the government will provide a GRI extraordinary support, such as actual financial support to avoid default of the GRI. Moody's recognizes that the company's special business plan -- including possibility of further expansion of costs for plant decommissioning and additional compensation -- ensures the high possibility of additional support from the government. The rating outlook remains negative. This reflects concern that there is some uncertainty over the timely execution of some of the aspects of the business plan and greater clarity is required. The principal methodologies used in these ratings were Moody's "Government-Related Issuers: Methodology Update" and "Regulated Electric and Gas Utilities", published respectively on September 30, 2010, and available on www.moodys.co.jp. Tokyo Electric Power Co., Inc. (TEPCO) is the largest integrated electricity supplier in Japan and is headquartered in Tokyo. ==================== N E W Z E A L A N D ==================== NATHAN'S FINANCE: Civil Case to Start This Month ------------------------------------------------ Catherine Harris at stuff.co.nz reports that a civil case against the directors and auditors of Nathans Finance could get underway in court as soon as next month, according to the receivers' lawyer. stuff.co.nz notes that Nathan's Finance collapsed in 2007 owing investors NZ$174 million, and its four directors were convicted last year of making untrue statements in documents related to a debt offering in 2006. Two directors, Kenneth Moses and Mervyn Doolan, were jailed for more than two years while Donald Young received home detention. On June 28, another chapter in the Nathans' saga came to a close when the High Court in Auckland ruled that receivers PricewaterhouseCooopers should receive NZ$885,000 in reparation from Messrs. Moses, Doolan and Young, according to the report. stuff.co.nz says PwC has already begun civil proceedings against Nathan's directors and auditors on investors' behalf, and a High Court trial date could be fixed as soon as next month. "We expect to get a date shortly," the report quotes PwC lawyer Murray Tingey as saying. Just over 7,000 investors were owed money by Nathans and Mr. Tingey said most of them were elderly and in no position to fund legal costs on their own, stuff.co.nz relates. stuff.co.nz notes that PWC's civil case will seek at least NZ$66 million from Nathan's directors and the company's auditors, Staples Rodway, but the claim could top NZ$100 million when unquantified costs are added. While the directors might not have that sort of money, Mr. Tingey said insurance, particularly the auditor's insurance, might come into play, the report says. Unlike the criminal case which focussed on directors making mistatements, Mr. Tingey said the civil case would centre on their common-law obligations, that they "fell below the standards of a reasonable director," notes stuff.co.nz. The case against the auditors would focus on breaches of contract and negligence, the report adds. About Nathans Finance Nathans Finance Ltd went into receivership when the finance company's trustee, Perpetual Trust Limited, appointed receivers on Aug. 20, 2007. The company owed approximately NZ$174 million to some 7,000 investors. Nathans Finance is a wholly owned subsidiary of VTL Group Limited, which also went into receivership in November 2008. VTL Group owns a number of vending machine related businesses which operate in New Zealand, Australia, North America and Europe. ================= S I N G A P O R E ================= HONG NGIAP: Creditors' Meetings Set for July 3 ---------------------------------------------- Hong Ngiap Trading Pte Ltd, which is in compulsory liquidation, will hold a meeting for its creditors on July 3, 2012, at 4:00 p.m., at 100 Beach Road #30-00 Shaw Tower, in Singapore 189702. Agenda of the meeting includes: a. to receive an update on the progress of liquidation; b. to consider and if thought fit to appoint a Committee of Inspection to approve the Liquidator's proposal in relation to a potential claim against a certain creditor; and c. discuss other business. The company's liquidator is: Chan Yee Hong c/o Nexia TS Risk Advisory Pte Ltd 100 Beach Road #30-00 Shaw Tower Singapore 189702 HUMPUSS SEA: Creditors' Meeting Set for July 6 ----------------------------------------------- Creditors of Humpuss Sea Transport Pte Ltd will hold a meeting on July 6, 2012, at 10:00 a.m., at One Raffles Place, Tower 2, #10- 62, in Singapore 048616. At the meeting, Cosimo Borrelli and Jason Kardachi, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. HYMICS HOLDINGS: Court to Hear Wind-Up Petition July 6 ------------------------------------------------------ A petition to wind up the operations of Hymics Holdings (S) Pte Ltd will be heard before the High Court of Singapore on July 6, 2012, at 10:00 a.m. United Overseas Bank Limited filed the petition against the company on June 12, 2010. The Petitioner's solicitors are: Messrs WongPartnership 63 Market Street, #02-01 Singapore 048942 LEKIM TEXTILE: Creditors Get 42.91572% Recovery on Claims --------------------------------------------------------- Lekim Textile Industries Pte Ltd declared the preferential dividend on June 18, 2012. The company paid 42.91572% to the received claims. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 MICROTRONICS ASSOC: Creditors Get 14.67808% Recovery on Claims -------------------------------------------------------------- Microtronics Associates Pte Ltd declared the preferential dividend on June 21, 2012. The company paid 14.67808% to the received claims. The company's liquidator is: The Official Receiver The URA Centre (East Wing) 45 Maxwell Road #06-11 Singapore 069118 =============== T H A I L A N D =============== THANACHART BANK: Fitch Affirms Support Rating Floor at 'BB+' ------------------------------------------------------------ Fitch Ratings has revised Thanachart Bank Public Company Limited's and majority shareholder Thanachart Capital Public Company Limited's Outlooks to Negative from Stable. Their ratings have been affirmed. The revision of TBANK's Outlook reflects deterioration in its financial profile in the past two years, despite the bank's metrics already being largely inferior to those of similarly rated international peers. TBANK's funding profile in particular has shown more vulnerability than previously expected, despite an enlarged branch network. Its deposit base has contracted in the last two years while reliance on funding through bills of exchange has increased. Although the bank has seen modest improvement in recent months in terms of its deposit base and a higher percentage of low-cost depositors, Fitch has some reservations over whether they will be sustained. Meanwhile, high operating costs and margin pressure continue to hamper profitability improvement. Fitch is of the view that management's strategy to strengthen its retail deposit franchise could face challenges. Successful execution would support a revision back to Stable Outlook, but risks remain as to deposit expansion being achieved at higher funding costs due to intense competition. This may slow the recovery of profitability over the next one to two years to levels before its acquisition of Siam City Bank Public Company Limited (SCIB). Moreover, high operating costs would continue to constrain the bank's profitability enhancement process in the medium term as a result of ongoing system investments and resource rationalisation. Fitch expects cost reduction to be gradual over the next two to three years. The bank's policy to increase provisioning could also impact profitability improvement. TBANK's asset quality has improved, but at a slower pace than Fitch's expectation over the last two years. The agency believes that the flood impact on the bank's asset quality should be temporary and moderate. Downside risks in the medium term, however, include a renewed volatile operating environment and potential increase of credit risk due to its asset diversification strategy. These in turn could heighten provisioning risk and hinder asset quality and profitability improvement. A downgrade of TBANK could result from a lack of material improvement in profitability, asset quality or its funding and liquidity profile in the next one to two years. Conversely, improvement in its funding profile, evidenced by deposit base expansion without sacrificing net interest margin over the next 12 to 18 months -- consistent with the bank's strategy -- may lead to the Outlook being revised back to Stable. Increased majority ownership and support by Bank of Nova Scotia (BNS; 'AA- '/Stable) would also be viewed as positive for the ratings. The revision of Outlook for TCAP is consistent with the Negative Outlook of TBANK. TCAP is rated one notch below TBANK, based on its structural subordination. TCAP mainly relies on dividend payment from TBANK. TCAP's double leverage (measured by investments in subsidiaries and related companies compared with shareholder's equity) remained moderately high at 111% at end- March 2012, although this should be stable over the next two to three years given no further plans for acquisition or to raise equity. Future rating actions on TBANK could lead to similar rating actions on TCAP. A wider notching between TCAP and TBANK may result from a further increase in TCAP's double leverage and significantly higher leverage. TBANK is the main operating entity within the Thanachart Group. TCAP currently holds 51% in TBANK, while BNS, Canada's third- largest bank, holds 49%. TBANK is the sixth largest banks in Thailand with a market share of 7.3% in assets and 6.4% in deposits at end-March 2012. TBANK has a solid franchise in the domestic auto hire purchase market. The following ratings have been affirmed: TBANK -- Long-Term Foreign Currency Issuer Default Rating (IDR) affirmed at 'BBB-'; Outlook revised to Negative from Stable -- Short-Term Foreign IDR affirmed at 'F3' -- Support Rating Floor affirmed at 'BB+' -- National Long-Term Rating affirmed at 'A+(tha)'; Outlook revised to Negative from Stable -- National Short-Term Rating affirmed at 'F1+(tha)' -- Support Rating affirmed at '3' -- Viability Rating affirmed at 'bbb-' TCAP -- National Long-Term Rating affirmed at 'A(tha)' ; Outlook revised to Negative from Stable -- National Short-Term Rating affirmed at 'F1(tha)' -- Support Rating affirmed at '5' ********* 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 ***