/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/121101.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 Thursday, November 1, 2012, Vol. 15, No. 218 Headlines A U S T R A L I A BANKSIA FINANCIAL: Receivers Appointed to Cherry Fund BD MOBILE: Launches AUD3MM Claim Vs. Vodafone After Liquidation RESIMAC 2012-1NC: S&P Assigns 'B' Rating to Class F RMBS ST HILLIERS: Subcontractors May Recoup Money as DOCA Okayed H O N G K O N G 3D-GOLD JEWELLERY: Contributories, Creditors to Meet on Nov. 20 CTC GARMENT: Court Enters Wind-Up Order DAWN GLOVES: Court to Hear Wind-Up Petition on Dec. 19 FAIRTOL INDUSTRIAL: Court to Hear Wind-Up Petition on Nov. 28 GLAD ATTAIN: Creditors Get 100% Recovery on Claims HENCH (CHINA): Court to Hear Wind-Up Petition on Nov. 14 HIGASHIGI INDUSTRIAL: Court to Hear Wind-Up Petition on Dec. 12 JOINDIN (CHINA): Court Enters Wind-Up Order KWAN WAI: Court Enters Wind-Up Order LAND ASIA: Court Enters Wind-Up Order MEGA PROJECTS: Court Enters Wind-Up Order NOVEL ADVANCE: Court to Hear Wind-Up Petition on Dec. 12 POLYGLORY (HK): Creditors Get 7.344% Recovery on Claims REGAL LINK: Court to Hear Wind-Up Petition on Nov. 28 SERLIN LIMITED: Creditors Get 16.7814% Recovery on Claims TAKAGI INDUSTRIES: Court Enters Wind-Up Order THERMOPOWER ELECTRICAL: Court to Hear Wind-Up Petition on Nov. 28 TREASURE ISLAND: Court to Hear Wind-Up Petition on Dec. 5 WATHNE OVERSEAS: Court Enters Wind-Up Order WIKI EDUCATION: Court to Hear Wind-Up Petition on Nov. 14 I N D I A BHUWALKA CASTINGS: ICRA Assigns 'BB+' Rating to INR11.27cr Loans CLAIR ENGINEERS: ICRA Cuts Rating on INR5cr Loan to '[ICRA]BB+' ISLAND STAR: ICRA Rates INR350cr Term Loan at '[ICRA]B+' KANHIYA DHALIWAL: ICRA Rates INR10cr Demand Loan at '[ICRA]B' K. S. R. TEXTILE: ICRA Reaffirms 'B+' Rating on INR29.3cr Loan MICROPACK LIMITED: ICRA Assigns 'BB+' Rating to INR6.81cr Loans POLAR STAR: ICRA Reaffirms '[ICRA]BB-' Rating on INR28cr Loans RAJASTHAN VIKAS: Delays in Loan Payment Cues ICRA Junk Ratings SHREE RAM: ICRA Assigns '[ICRA]BB-' Rating to INR6.65cr Loans ST. SHIRDI: ICRA Rates INR24.23cr Term Loans at '[ICRA]BB+' VAIBHAV JEWELLERS: ICRA Reaffirms 'BB' Rating on INR12cr Loans VRV TEXTILES: Delay in Loan Payment Cues ICRA Junk Ratings I N D O N E S I A SMARTFREN TELECOM: Fitch Junks Rating on IDR603 Billion Bond N E W Z E A L A N D SOUTH CANTERBURY: Trial Call-Over Set For January 25 STRUCTURED FINANCE: To Pay 25% to Some Investors X X X X X X X X * Fitch Published Edition of AP Monthly Newsletter - - - - - ================= A U S T R A L I A ================= BANKSIA FINANCIAL: Receivers Appointed to Cherry Fund ----------------------------------------------------- The Sydney Morning Herald reports that Cherry Fund, an investment fund linked to the collapsed lender Banksia Financial Group, has appointed receivers. Cherry invests in mortgage securities and owes about AUD10 million to investors, the report discloses. SMH says the secured creditor of Cherry Fund, The Trust Company Limited, appointed receivers McGrathNicol after the Fund conducted an urgent review of its forecast cash flows for the next 12 months. According to the report, the review found Cherry to be unlikely to meet the anticipated level of redemption requests by investors during that period, as a consequence of the decision to appoint a receiver to Banksia last week. "We are now reviewing Cherry Financial's business and mortgage portfolio which we are doing with the support of the executive team at The Banksia Financial Group," the report quotes Tony McGrath, from McGrathNicol, as saying. "We are also working with the executive team at The Banksia Financial Group to ensure that the group's remaining investment fund Banksia Mortgage Fund can continue to trade uninterrupted." SMH relates that the Banksia Financial Group chairman, Peter Keating, said the Banksia Board was working with McGrathNicol "to achieve the best possible outcome for our investors, employees and shareholders". About Banksia Securities Banksia Securities Limited is a subsidiary of The Banksia Financial Group Ltd. TBFG is a privately owned, independent group of companies operating in the finance sector, largely operating as a National Financier and Mortgage Fund Manager. The Trust Company (Nominees) Limited on Oct. 25, 2012, appointed Tony McGrath, Joseph Hayes, Matthew Caddy and Robert Kirman of McGrathNicol as receivers and managers of Banksia Securities Limited. The Trustee is the secured creditor of BSL. The Trustee made the appointment of Receivers and Managers following a request of BSL's Board. McGrathNicol said BSL owes approximately $660 million to investors and advanced these funds to borrowers primarily to finance real property purchases. BSL holds first ranking real property mortgages to secure its advances. Control of the business and the assets of BSL rests with the Receivers and Managers who will be working in close consultation with the Trustee to ensure the interests of debenture holders are being protected. Interest payments and redemptions have been frozen as of Oct. 25, 2012. BD MOBILE: Launches AUD3MM Claim Vs. Vodafone After Liquidation --------------------------------------------------------------- SmartCompany reports that BD Mobile, which was formerly one of Vodafone's biggest mobile dealers, is now embroiled in litigation against the telco following its liquidation. SmartCompany relates that Besyl, which traded as BD Mobile, has launched a AUD3 million claim against Vodafone in the NSW Supreme Court for outstanding commission payments and loss of business and customers. The report says the claim follows the appointment of Jamieson Louttit Insolvency & Advisory as liquidator of BD Mobile. Jamieson Louttit told SmartCompany that BD Mobile was one of Vodafone's exclusive dealers and is suing Vodafone for unpaid commissions. The amounts are monthly commissions paid to BD Mobile based on bills paid by customers, the report relays. "They owe me money, and the records from what I can see from an accounting perspective are very poor, they are atrocious," the report quotes Mr. Louttit as saying. "It appears that Vodafone relies on the dealers to calculate the commissions owed to it as its own internal systems don't allow it to do the calculations." According to the report, Mr. Louttit said he estimates at least AUD162,000 is owed but BD Mobile is claiming AUD3 million in the NSW Supreme Court on the basis of the outstanding commission along with loss of business and customers. SmartCompany notes BD Mobile is claiming that problems with Vodafones' network caused it to lose customers and for the business to fail. A letter of demand has been issued to Vodafone and Mr. Louttit said the case is set down for mediation in two weeks' time. BD Mobile's principal creditor is the Australian Tax Office, which is owed about $67,000 and Mr. Louttit said it is the ATO which wound the company up, SmartCompany adds. RESIMAC 2012-1NC: S&P Assigns 'B' Rating to Class F RMBS -------------------------------------------------------- Standard & Poor's Ratings Services assigned its ratings to seven of the eight classes of residential mortgage-backed securities (RMBS) issued by Perpetual Trustee Company Ltd. as trustee of RESIMAC Bastille Trust in respect of RESIMAC Series 2012-1NC. RESIMAC Series 2012-1NC is a securitization of a pool of nonconforming and prime residential mortgages originated by RESIMAC Ltd. The 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 expectation that the various mechanisms to support liquidity within the transaction, including principal draws and an amortizing liquidity facility equal to 3.2% of the initial invested amount of all notes, subject to a floor of AUD1,920,000, are sufficient under S&P's stress assumptions to support timely payment of interest on the rated notes. * S&P's view that the credit support is sufficient to withstand the stresses it applies. This credit support comprises mortgage insurance for 40% of the portfolio, which covers 100% of the face value of those loans, their accrued interest, and reasonable costs of enforcement; and note subordination for the class A1, class A2, class B, class C, class D, class E, and class F notes. * The benefit of a fixed-to-floating interest-rate swap provided by National Australia Bank Ltd. (AA-/Stable/A-1+), to hedge the mismatch between receipts from any fixed-rate mortgage loans and the variable-rate RMBS. * The condition that a minimum margin will be maintained on the residential mortgage loans. * The availability of a retention amount built from excess spread, and which will be applied monthly to repay the most subordinated rated note at that time. An equal amount of unrated class G notes will be issued at the same time to maintain the level of credit support available to the rated notes. * The availability of an amortization amount built from excess spread, starting two months after the call date onward, to absorb any mortgage losses. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an assetbacked 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/1048.pdf RATINGS ASSIGNED Class Rating Amount (mil. A$) A1 AAA (sf) 208.2 A2 AAA (sf) 34.8 B AA (sf) 27.0 C A (sf) 11.1 D BBB (sf) 7.8 E BB (sf) 5.1 F B (sf) 2.28 G N.R. 3.72 N.R. - Not rated. ST HILLIERS: Subcontractors May Recoup Money as DOCA Okayed ------------------------------------------------------------ The Coffs Coast Advocate reports that a number of sub-conractors on the Coffs Coast left short by the collapse of St Hilliers Construction may finally be able to see some financial light at the end of the tunnel. The Advocate relates that hard-hit contractors of the Coffs Harbour Housing NSW unit block on Harbour Dr look like recovering a large percentage of the AUD1.6 million owed to them after a Deed of Company Arrangement (DOCA) was approved Wednesday by creditors of St Hilliers Construction Pty Ltd. According to the report, the DOCA will create a deed fund of up to AUD8.1 million for the Company which will be used to pay all former employee entitlements in full and the balance to be available to ordinary unsecured creditors. The estimated dividend pool for unsecured creditors (who are not former employees) is between AUD1 million and AUD4.5 million, the Advocate discloses. The report notes the DOCA will take effect in the coming weeks at which time the Administration will cease and control of the Company will revert to the Director. "We're pleased that a solution has been forthcoming for creditors. This arrangement will keep people in work, it will keep projects going and it will put the Company in a position to rebuild," the report quotes St Hilliers Group executive chairman Tim Casey as saying. "This has been a difficult period for all stakeholders of the Company, especially our employees and contractors." As reported in the Troubled Company Reporter-Asia Pacific on May 17, 2012, St Hilliers Construction Pty Ltd said it had appointed Trent Hancock and Michael Hird of Moore Stephens Sydney Corporate Recovery Group as voluntary administrators. An associated company, St Hilliers Ararat Pty Ltd is part of a consortium contracted to undertake the AUD350 million expansion of the Ararat Prison in central Victoria. St Hilliers Ararat Pty Ltd has at the same time been placed into liquidation. The administration of St Hilliers Construction Pty Ltd is due to exposure under guarantees for debts of St Hilliers Ararat Pty Ltd relating to the Ararat Prison project in Victoria. St Hilliers Group is an Australian property group providing services in property development, contracting and funds management. St Hilliers Construction Pty Ltd is the construction arm of the St Hilliers Group. ================ H O N G K O N G ================ 3D-GOLD JEWELLERY: Contributories, Creditors to Meet on Nov. 20 --------------------------------------------------------------- Creditors and contributories of 3D-Gold Jewellery Holdings Limited will hold their first meetings on Nov. 20, 2012, at 9:30 a.m., and 10:30 a.m., respectively at St. James' Settlement No. 85 Stone Nullah Lane, Wanchai, in Hong Kong. At the meeting, Darach E. Haughey, Edmond Wah Ching and Yeung Lui Ming (Edmund), the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. CTC GARMENT: Court Enters Wind-Up Order --------------------------------------- The High Court of Hong Kong entered an order on Oct. 17, 2012, to wind up the operations of CTC Garment Limited. The official receiver is Teresa S W Wong. DAWN GLOVES: Court to Hear Wind-Up Petition on Dec. 19 ------------------------------------------------------ A petition to wind up the operations of Dawn Gloves Manufactory Company Limited will be heard before the High Court of Hong Kong on Dec. 19, 2012, at 9:30 a.m. Standard Chartered Bank (Hong Kong) Limited filed the petition against the company on Oct. 4, 2012. The Petitioner's solicitors are: Tsang, Chan & Wong 16th Floor, Wing On House No. 71 Des Voeux Road Central, Hong Kong FAIRTOL INDUSTRIAL: Court to Hear Wind-Up Petition on Nov. 28 ------------------------------------------------------------- A petition to wind up the operations of Fairtol Industrial Limited will be heard before the High Court of Hong Kong on Nov. 28, 2012, at 9:30 a.m. Ching Wo Ping filed the petition against the company on Sept. 26, 2012. GLAD ATTAIN: Creditors Get 100% Recovery on Claims -------------------------------------------------- Glad Attain International Limited, which is in liquidation, will declare first and final dividend to its creditors on or after Nov. 2, 2012. The company will pay 100% for preferential and 0.02% for ordinary claims. The company's liquidator is: Rainier Hok Chung Lam 22nd Floor, Prince's Building Central, Hong Kong HENCH (CHINA): Court to Hear Wind-Up Petition on Nov. 14 -------------------------------------------------------- A petition to wind up the operations of Hench (China) Building Services Engineering Limited will be heard before the High Court of Hong Kong on Nov. 14, 2012, at 9:30 a.m. Hong Kong Air Flow Equipment Limited filed the petition against the company on July 11, 2012. The Petitioner's solicitors are: Hioe & Pun 18th Floor, Kailey Tower 16 Stanley Street Central, Hong Kong HIGASHIGI INDUSTRIAL: Court to Hear Wind-Up Petition on Dec. 12 --------------------------------------------------------------- A petition to wind up the operations of Higashigi Industrial Company Limited will be heard before the High Court of Hong Kong on Dec. 12, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on Sept. 27, 2012. The Petitioner's solicitors are: Arthur K.H. Chan & Co Unit C1, 15th Floor United Centre No. 95 Queensway Hong Kong JOINDIN (CHINA): Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order on Sept. 24, 2012, to wind up the operations of Joindin (China) Limited. The company's liquidator is Bruno Arboit. KWAN WAI: Court Enters Wind-Up Order ------------------------------------ The High Court of Hong Kong entered an order on Aug. 16, 2012, to wind up the operations of Kwan Wai Decoration Limited. The company's liquidator is Bruno Arboit. LAND ASIA: Court Enters Wind-Up Order ------------------------------------- The High Court of Hong Kong entered an order on Aug. 1, 2012, to wind up the operations of Land Asia Management Limited. The company's liquidator is Bruno Arboit. MEGA PROJECTS: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order on Oct. 15, 2012, to wind up the operations of Mega Projects Construction Limited. The company's liquidator is Bruno Arboit. NOVEL ADVANCE: Court to Hear Wind-Up Petition on Dec. 12 -------------------------------------------------------- A petition to wind up the operations of Novel Advance Limited will be heard before the High Court of Hong Kong on Dec. 12, 2012, at 9:30 a.m. The Petitioner's solicitors are: Messrs. Marie Tsang, Dustin Chan & Co Unit 2303-04, 23rd Floor Wing On Centre No. 111 Connaught Road Central, Hong Kong POLYGLORY (HK): Creditors Get 7.344% Recovery on Claims ------------------------------------------------------- Polyglory (Hong Kong) Limited, which is in creditors' voluntary liquidation declared the first and final dividend to its creditors on or after Oct. 26, 2012. The company paid 7.344% for ordinary claims. The company's liquidator is: Stephen Briscoe 602 The Chinese Bank Building 61-65 Des Voeux Road Central, Hong Kong REGAL LINK: Court to Hear Wind-Up Petition on Nov. 28 ----------------------------------------------------- A petition to wind up the operations of Regal Link Industrial Limited will be heard before the High Court of Hong Kong on Nov. 28, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on Sept. 13, 2012. The Petitioner's solicitors are: Arthur K.H. Chan & Co Unit C1, 15th Floor United Centre No. 95 Queensway Hong Kong SERLIN LIMITED: Creditors Get 16.7814% Recovery on Claims --------------------------------------------------------- Serlin Limited, which is in creditors' liquidation declared the first dividend to its creditors on Oct. 26, 2012. The company paid 16.7814% for ordinary claims. The company's liquidators are: Cosimo Borrelli G Jacqueline Fangonil Walsh Level 17, Tower 1 Admiralty Centre 18 Harcourt Road Hong Kong TAKAGI INDUSTRIES: Court Enters Wind-Up Order --------------------------------------------- The High Court of Hong Kong entered an order on Aug. 16, 2012, to wind up the operations of Takagi Industries (Shenzhen) Company Limited. The company's liquidator is Bruno Arboit. THERMOPOWER ELECTRICAL: Court to Hear Wind-Up Petition on Nov. 28 ----------------------------------------------------------------- A petition to wind up the operations of Thermopower Electrical Appliance (HK) Limited will be heard before the High Court of Hong Kong on Nov. 28, 2012, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on Sept. 13, 2012. The Petitioner's solicitors are: Arthur K.H. Chan & Co Unit C1, 15th Floor United Centre No. 95 Queensway Hong Kong TREASURE ISLAND: Court to Hear Wind-Up Petition on Dec. 5 --------------------------------------------------------- A petition to wind up the operations of Treasure Island Trading Limited will be heard before the High Court of Hong Kong on Dec. 5, 2012, at 9:30 a.m. Simple Symbol Limited filed the petition against the company on Oct. 3, 2012. The Petitioner's solicitors are: So, Lung & Associates 15th Floor, China Taiping Tower Phase 2 8 Sunning Road Causeway Bay, Hong Kong WATHNE OVERSEAS: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order on Oct. 3, 2012, to wind up the operations of Wathne Overseas Limited. The company's liquidator is Bruno Arboit. WIKI EDUCATION: Court to Hear Wind-Up Petition on Nov. 14 --------------------------------------------------------- A petition to wind up the operations of Wiki Education Network Limited will be heard before the High Court of Hong Kong on Nov. 14, 2012, at 9:30 a.m. Yim Kai Ming filed the petition against the company on Sept. 5, 2012. The Petitioner's solicitors are: Leung, Tam & Wong Rooms 901-902, 9th Floor The Chinese Bank Building 61-65 Des Voeux Road Central, Hong Kong ========= I N D I A ========= BHUWALKA CASTINGS: ICRA Assigns 'BB+' Rating to INR11.27cr Loans ---------------------------------------------------------------- ICRA has reaffirmed the long term rating assigned to INR6.0 crore1 bank facilities and INR5.27 crore term loans of Bhuwalka Castings & Forging Private Limited at '[ICRA]BB+'. The outlook on the rating is Stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loan 5.27 [ICRA]BB+(stable) Fund Based-Cash Credit 6.0 [ICRA]BB+(stable) The rating action favorably considers BCFPL's experienced management and its long track record in the castings and forging business. The rating also takes into account the benefits enjoyed by BCFPL on account of being a part of Bhuwalka Premier Group namely established brand image, captive consumer for products like rolls, extensive linkages with steel industry players and easy access to some raw material and consumables like scraps, mis-rolls and refractory bricks. The rating is however constrained by BCFPL's moderate scale of operations with an operating income of INR99 Cr coupled with low profitability as reflected in net profit margin of 0.26% for FY12. While assigning the rating, ICRA also considers BCFPL's adverse capital structure with gearing of 3.7 times (Mar 31, 2012). Moreover, the rating continues to factor in demand risk associated with new product lines such as industrial castings, rolls and machined products. While assigning the rating, ICRA has taken a consolidated view of the Bhuwalka Group due to strong operational linkages among the companies. Bhuwalka Castings & Forging Pvt Ltd is part of Bhuwalka Premier Group and is into making cast and forged iron products for industrial use. The Plant is located in Tamaka Industrial Area, Kolar about 80 Kms from Bangalore. This unit has the manufacturing facilities for 20,000 TPA of Steel Casting & M.S. Ingots using scrap metal. Company was earlier primarily into ingot production which in turn was used by group companies for rolled products. However it has now stopped manufacturing ingots from Dec 2009 and is now completely focusing on industrial castings, rolled products and machined products. It possesses capability to manufacture various grades of Grey iron and S.G. iron castings in the weight range of 0.5 to 6 MT single pieces. The company presently caters primarily to the domestic market and serves industries like Machine Tool Industry, Air Compressors and Refrigeration, High Speed Diesel Engines, valve and vacuum pump Industries. Bangalore based Bhuwalka Premier Group has interests in steel trading business, refractory bricks, and manufacturing of steel rolled products including TMT bars and steel structural sold under the brand name 'Bhuwalka'. Recent Results For the financial year 2011-12, BCFPL recognized an operating income of INR99.28 crore and net profit of INR0.26 crore as against an operating income of INR62.46 crore and net profit of INR0.22 crore during FY 2010-11. CLAIR ENGINEERS: ICRA Cuts Rating on INR5cr Loan to '[ICRA]BB+' --------------------------------------------------------------- ICRA has revised the long term rating assigned to the INR5.00 crore1 fund based facilities of Clair Engineers Private Limited from '[ICRA]BBB-' to '[ICRA]BB+'. The outlook on the long term rating is stable. ICRA has also revised the short term rating assigned to the INR7.50 crore non-fund based facilities of CEPL from '[ICRA]A3+' to '[ICRA]A4+'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based Limits 5.00 Revised to [ICRA]BB+ (Stable) from [ICRA]BBB- (Stable) Non Fund based Limits 7.50 Revised to [ICRA]A4+ from [ICRA]A3+ The rating revision factors in the inability of the company to scale up its operations on account of weak order inflow in FY12 resulting from low expansion activity by its user industries (cement, sugar etc). The rating revision also factors in the stretched projected debt servicing coverage indicators due to considerable debt repayments scheduled over the near term. Given that company has recently commenced operations at its new manufacturing facility, the ability of the company to scale up the operations remains critical to timely debt servicing. The ratings continue to remain constrained by the inherent volatility in the business, poor power scenario present in the region and CEPL's exposure to forex risk as company has began substantial exports since FY12 (although foreign exchange movements have been favorable in recent past). However the ratings draw comfort from the long experience and the technical qualification of the promoters in the industry and CEPL's reputed client base which reduces the counterparty risk to a large extent. The ratings favorably factor in the improvement in operating profitability in FY12 due to involvement of the company in direct exports primarily to African countries. Clair Engineers Private Limited was started in 1992, as a proprietary concern by Dr. K. Sainath, who is a chemical engineering graduate who also holds a PhD from IIT Delhi. CEPL started in 1992 as an extension to project and engineering consultancy services being offered by Dr. Sainath for Cement and Allied industries for over 25 Years. CEPL benefits largely from the vast experience of Dr. Sainath and colleagues in the field of design, engineering & supply of air pollution control equipment. ISLAND STAR: ICRA Rates INR350cr Term Loan at '[ICRA]B+' -------------------------------------------------------- ICRA has assigned '[ICRA]B+' rating to the INR350 crore lease rental discounting term loan limits of Island Star Mall Developers Private Limited. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term loan Limits 350 [ICRA]B+ (Assigned) The rating assigned to Island Star Mall Developers Limited are constrained by delay in the project execution by over six months from the scheduled commercial operation date and consequential 18% increase of the project cost on account of increase in Interest During Construction and pre-operative expenses. Given that the incremental project cost has been largely funded by additional debt; the overall indebtedness of the project has increased as compared to the earlier estimates. The ratings are further constrained by the dependence of the liquidity position of the company over the medium term on cash flows proposed to be generated from the sale of FSI of 0.40 million sq. ft. for hotel portion and sale of the residential project of 0.60 million sq. ft. planned to be executed in Joint Venture (JV) with PML; however no significant progress has been achieved towards the same till date. ICRA also notes that the company is exposed to loan refinancing risk as 30.40% of the debt is to be repaid by the company through bullet repayment scheduled at the end of FY19. Nevertheless, the assigned ratings of ISMD positively take into account the operational status of the retail mall since October 2011 with lease agreements having executed for over 88% of the total leasable area of 0.97 million sq. ft. and healthy occupancy of -73% of the mall witnessed as of September 2012. Further, the ratings are supported by the fact that debt refinancing through fresh Lease rental discounting (LRD) loan in April 2012 has resulted in improvement of liquidity position of the project for short term on the back of relatively favorable repayment terms as compared to the previous term loan. The attractive location of the project which along-with established relationship of the promoters with reputed brands are likely to help securing higher occupancy in the mall in short to medium term. The ratings also accounts the established track record of PML as key promoter of ISMD in operation of similar retail mall at Mumbai and Pune which mitigates the operational risks in the project. Company Profile ISMD is developing a large, integrated market complex, namely 'Market City' at Whitefield in Bangalore. The project is located at Mahadevapura abutting the Whitefield road in Eastern Bangalore. The project is in close proximity to the International Technology Park at Whitefield and EPIP (Export Promotion Industrial Park) zone. The company is promoted by Phoenix Mills Ltd and Horizon Venture Capital Fund who together hold 74.39% share in ISMD. Remaining 25.62% of ISMD's stake is held by investors namely IL&FS Trust Company Limited and Edelweiss Trustee Services. The project is operational on a lease model basis since October 2011. Recent Results: In FY12; the company reported a Profit after tax (PAT) of INR10.45 crore on an Operating Income (OI) of INR27.41 crore. KANHIYA DHALIWAL: ICRA Rates INR10cr Demand Loan at '[ICRA]B' ------------------------------------------------------------- ICRA has assigned an '[ICRA]B' rating to the INR10.0 crores Fund Based bank limits of Kanhiya Dhaliwal Developers. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Working Capital Demand Loan 10.0 [ICRA]B (Assigned) The rating factors in the established track record of KDD's promoters in the construction sector in the Bhatinda region, Punjab and successful completion of earlier plotted projects in the region by the promoters. The rating is however constrained by firm's exposure to execution risks for its on-going project owing to the initial stage of implementation and various approvals are yet to be secured. Further, the high dependence on promoter's contribution and customer advances for funding the project cost exposes the project to high funding risks. The real estate demand in Bhatinda has remained sluggish, which can put pressure on the project's sales volume. Going forward, KDD's ability to achieve bookings in its project, meet its construction schedule, as well as ensure timely infusion of funds by the promoters would be the key rating sensitivities. Kanhiya Dhaliwal Developers is a partnership firm and is incorporated with the purpose of developing a 35 acre Township opposite Phase 4 & 5, BDA, Green Palace Road, Bhatinda, Punjab. The firm is promoted by five partners which include Mr. Darshan Garg, Mr. Dharam Pal Goyal, Mr. Nazar Singh, Mr. Gurvinder Singh and Mr. Sukhpinder Singh. The township is named Green city 1 & 2 and is being constructed on 35 acre land which has been purchased from the individual partners in the firm for a consideration of INR16.2 crore. In the township, company plans to sell 198 residential plots, 53 commercial plots and 68 plots for economically weaker section (EWS). In addition, the township would also have a school, a dispensary and a club house. K. S. R. TEXTILE: ICRA Reaffirms 'B+' Rating on INR29.3cr Loan -------------------------------------------------------------- ICRA has reaffirmed the long-term rating of '[ICRA]B+' outstanding on the INR19.30 crore term loan facilities and the INR10.00 crore fund based facilities of K. S. R. Textile Mills Private Limited. ICRA has also assigned the short-term rating of '[ICRA]A4' to the INR0.58 crore non-fund based facilities of the Company. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term loan facilities 19.30 [ICRA]B+ reaffirmed Fund based facilities 10.00 [ICRA]B+ reaffirmed Non-fund based 0.58 [ICRA]A4 assigned facilities The rating reaffirmation in rating takes note of the long standing experience of the promoters in the spinning industry spanning more than two decade and their diversified business profile with presence in both yarn and fabric segments lends stability to volumes. The ratings however continue to be constrained by the stretched financial profile of the Company characterized by high gearing and modest coverage indicators, the Company's small scale of operations limiting scale economics and intense competition in a highly fragmented textile industry, weak recovery in yarn demand. The ratings also consider the power availability issues in Tamil Nadu which impacted operating performance and margins in the recent past; however the same is mitigated to an extent through additions of windmill capacities. Incorporated in 1988 and commencing operations in 1992, K. S. R. Textile Mills Private Limited is engaged in manufacturing of grey/ unbleached carded, combed and compact cotton yarn and blended yarn in the 40s to 80s range. The Company also sells cotton fabric, woven / knitted from local players through job work. Beginning operations with a capacity of 6,720 spindles, the Company has expanded over the years in a phased manner to reach a capacity of 34,224. With manufacturing facilities spreads across two units in Thiruchengode (Tamil Nadu) operating on a three- shift basis, the Company has about 250 employees (including 200 laborers with no union). The Company is managed by Sri. K. S. Rangaswamy, Sri. R. Balakrishnan and Sri. K. R. Sengottuvelu and is wholly owned by their families. Other companies under the same management include Summer India Textile Mills Private Limited, Summer India Weaving and Processing Private Limited, R. B. Wovens Private Limited, K. S. R. Exports and K. S. R. Educational and Charitable Trust. While K. S. R. Educational and Charitable Trust runs graduate, post graduate and professional colleges, the remaining companies are engaged in businesses in the textile sector. Recent results In 2011-12, KSR reported a net profit of INR0.4 crore on an operating income of INR26.1 crore as against a net profit of INR1.0 crore on an operating income of INR41.2 crore in 2010-11. MICROPACK LIMITED: ICRA Assigns 'BB+' Rating to INR6.81cr Loans --------------------------------------------------------------- ICRA has revised the rating assigned to INR2.31 crore Term Loan (revised from INR4.15 crore), and INR4.5 crore Fund Based Limits (revised from INR3.25 crore) of Micropack Limited from '[ICRA]BBB- to '[ICRA]BB+'. ICRA has also revised the short term rating assigned to INR1.19 crore non fund based limits (revised from INR0.6 crore) of the company from '[ICRA]A3' to '[ICRA]A4+'. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 2.31 [ICRA]BB+ Fund Based Limits 4.50 [ICRA]BB+ Non Fund Based Limits 1.19 [ICRA]A4+ The revision in the ratings takes into account increase in Micropack's debtor levels during first half of FY13 (H1FY13); the company's debtor days increased to 118 days during H1FY13 from 90-95 days during previous four years. ICRA also notes that the company's greater-than-six-months debtor has also increased from 14-15% of the total debtors during FY10 and FY11 to almost 22% in FY12. This aggravates the concern of elongation in debtor cycle or losses due to bad debt. The issue is of higher pertinence on account of the company's track record of writing-off significant bad debts in the past; 2.5% and 3% of operating income were written-off as bad debt in FY09 and FY10, respectively. Further, ICRA notes that the company's profitability has moderated from the earlier levels; operating margin moderated to 17-18% during FY11 and FY12 from 20-23% during previous three years. The profitability has further declined during H1FY13 with PBT margin of 4.2% during the period, as compared to 11.5% during H1FY12. The moderation in the profitability is partly attributed to adverse foreign currency movements. Moreover, Micropack revenue growth has been flattish or negative during last eighteen months; the company registered revenue growth of only 2% in FY12 and Y-o- Y de-growth of ~12% in H1FY13. Considering that during FY12 and H1FY13 the company has incurred significant debt-funded capital expenditure, the company's ability to grow its revenue base, improve its profitability and working capital management would be critical for its future debt servicing capability and overall financial health. Besides the above mentioned factors, the assigned ratings continue to remain constrained by Micropack's modest scale of operation, its high sector and geographic concentration, and the competition faced from the technologically more advanced foreign players. The ratings are further constrained by the high working capital intensity of the company and high technology obsolescence risk associated with the sector. The assigned ratings however, continue to draw comfort from Micropack's long track record in the manufacturing of Printed Circuit Boards (PCBs) and its reputed client base mainly comprising of Indian Public Sector Units catering to domestic Defence, Aeronautics and Aerospace sectors. ICRA further notes that Micropack has an edge over the domestic competition because of its relatively high quality standards and manufacturing capabilities which distinguishes it from most of the local suppliers. Additionally, as the company caters to confidentiality sensitive defence and aerospace sectors, its Indian identity and its proximity to customers provides it with competitive advantage against the foreign suppliers (particularly Chinese/ Taiwanese). POLAR STAR: ICRA Reaffirms '[ICRA]BB-' Rating on INR28cr Loans -------------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]BB-' and short term rating of '[ICRA]A4' to the INR26.60 crore1 fund based facilities of Polar Star. The outlook on the long term rating remains "Stable". The proposed limits of INR1.40 crore have been rated by ICRA on both the scales at '[ICRA]BB-' and '[ICRA]A4'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- LT & ST Scale-Fund 26.60 [ICRA]BB- (Stable)/ Based Limits [ICRA]A4 reaffirmed Proposed Limits 1.40 [ICRA]BB- (Stable)/ [ICRA]A4 reaffirmed The ratings reaffirmation continues to factor in PS's relatively modest scale of operations and weak operating profitability levels. Despite improvement in net profit margins in FY 2012, which is largely supported by exchange fluctuation gains, margins remains exposed to the risk of fluctuations in exchange rates as well as disproportionate rise in rough diamond prices vis-a- vis polished diamond prices. The rating, however, favourably factors in the long experience of the partners in the CPD business and comfortable gearing position at present. Polar Star is a partnership firm established in 1989. The firm is managed by five partners namely Mr. Anup P. Zaveri, Mr. Ashit P. Zaveri, Mr. Smitesh S. Mehta and Mr. Sujit S. Mehta. PS is engaged in the business of manufacturing and trading of cut & polished diamonds. The other line of business, which PS has engaged itself in is the sale of electricity through its Wind Mill Project in Sangli, Maharashtra primarily to avail tax benefits. The firm has its marketing office at Mumbai and a production facility at Surat. Recent results: For the year 2011-12, PS recorded a net profit of INR4.12 crore on an operating income of INR63.12 Crores as against a net profit of INR1.47 Crore on an operating income of INR57.26 Crore in 2010-11. RAJASTHAN VIKAS: Delays in Loan Payment Cues ICRA Junk Ratings -------------------------------------------------------------- ICRA has revised the rating assigned to INR24.90 crore(earlier INR23.5 crore) term loan, INR5.40 crore(earlier INR6.8 crore) non fund based and INR2.0 crore fund based facilities of Rajasthan Vikas Sansthan to '[ICRA]D' from '[ICRA]BB'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loan 24.90 [ICRA]D(Revised) Non-Fund Based Limits 5.40 [ICRA]D(Revised) Fund Based Limits 2.00 [ICRA]D(Revised) The revision in rating takes into account delays in servicing of debt obligations by the society in the recent past on account of its stretched liquidity position. The rating is also constrained by increase in debt its levels due to continuous capex for upgrading and maintaining the infrastructural facilities. The rating continues to factor in the diverse range of courses offered, healthy occupancy levels and healthy profitability of the society. Going forward, timely servicing of debt obligations and improvement in capital structure will be the key rating sensitive factors. Rajasthan Vikas Sansthan is a Society under the Societies Registration Act in the year 1999. RVS is primarily engaged in providing higher education, with eight colleges providing courses at the undergraduate as well as post graduate level in dental science (BDS and MDS), engineering (B.Tech.), management (MBA and BBA), nursing and teacher training (B.Ed.). The society is also running a 150 bedded general hospital. RVS has two campuses in Jodhpur, Rajasthan. Recent Results For the year 2011-12 RVS reported an operating income of INR23.60 crore and profit of INR3.27 crore as compared to an operating income of INR19.37 crore and profit of INR3.13 crore in 2010-11. SHREE RAM: ICRA Assigns '[ICRA]BB-' Rating to INR6.65cr Loans ------------------------------------------------------------- The rating of '[ICRA]BB-' has been assigned to the INR0.15 crore term loans and INR5.50 crore cash credit facility of Shree Ram Steel Re Rolling Mill. The outlook on the rating is 'Stable'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit Facility 5.50 [ICRA]BB- (Stable) assigned Term Loan 0.15 [ICRA]BB- (Stable) assigned The assigned rating is constrained by SSRM's modest scale of operations; low profitability margins due to limited value additive nature of operations coupled with intense competition on account of fragmented industry structure and modest coverage indicators. The rating is further constrained by vulnerability of firm's profitability to adverse fluctuations in raw material prices which may not be passed on to the customers adequately. ICRA also notes that SSRM is a partnership firm and any significant withdrawals from the capital account could adversely impact its net worth and thereby the capital structure. The rating, however, favourably considers the long experience of the promoters in the secondary steel industry; favourable long term demand potential for the firm's products and its diversified customer base. Shree Ram Steel Re-Rolling Mill was established in the year 1995 as a partnership firm and it is engaged in manufacturing of MS flats, MS rounds and MS square bars from MS Ingots. The manufacturing facility of the firm is located at Vijapur, Mehsana district of Gujarat, with an installed capacity of 21,000 TPA. In FY 2012, SSRM reported an operating income of Rs 43.72 crore and profit after tax of INR0.54 crore as against an operating income of INR38.16 crore and profit after tax of Rs 0.52 crore during FY 2011. ST. SHIRDI: ICRA Rates INR24.23cr Term Loans at '[ICRA]BB+' ----------------------------------------------------------- ICRA has assigned an '[ICRA]BB+' rating to the INR24.23 crore term loans of St. Shirdi Sai Education Society. The outlook on the long term rating is Stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 24.23 [ICRA]BB+ (Stable) assigned While assigning the rating, ICRA has considered the standalone financials of SSSES from FY12 and consolidated financials of SSSES and St. Sirdi Sai Education Society Limited till FY11 to evaluate the financial profile, as the school's assets were owned by SSSESL till March 31, 2011 and have been transferred to SSSES effective April 1, 2011. The rating takes into account the favourable positioning of Sai International School as demonstrated by a significant increase in the student intake in the academic year (AY) 2012-13, and the good performance of the students in the Board examinations and competitive entrance examinations, which would enhance its reach further among the student community. The rating takes cognizance of SIS's composite affiliation for secondary and senior secondary classes from Central Board of Secondary Education, experience and academic background of the faculty and Management Committee members, and the positive demand outlook for the education sector in India. The rating is, however, constrained by the school's limited track record of about 4 years in imparting education, moderate scale of the entity's operations, despite significant growth in revenues and profits in 2011-12, and its significant revenue concentration, with its entire revenues being derived from one school. The rating takes into consideration the entity's significant improvement in the capital structure, with a gearing of 2.24 times as on June 30, 2012, declining from 3.29 times as on March 31, 2012. However, the same remains high in absolute terms. SSSES has undertaken significant capital expenditure (capex) in the past, which has enabled SIS to increase the student intake capacity by 800 from the AY2012-13. In ICRA's opinion, this would help the entity admit higher number of students going forward, which would have a favourable impact on the profits and cash accruals, a trend that was also witnessed during FY12. However, the ability of the entity to increase its turnover and profits while maintaining a conservative capital structure would remain a key rating sensitivity going forward. Incorporated in 2007, SSSES was formed to manage and run a school -- Sai International School -- in Bhubaneswar. However, St. Sirdi Sai Education Society Limited used to own the assets and liabilities of Sai International School till March 31, 2011. Effective April 1, 2011, all the assets and liabilities of SSSESL related to the school have been transferred to SSSES. The school has affiliation from CBSE up to class XII for all the streams. The school was started during the academic year 2008-09 and currently has around 2100 students. Recent Results During Q1FY13, SSSES reported a net profit (PAT) of INR2.27 crore on an OI of INR6.82 crore as compared to a PAT and OI of INR2.84 crore and INR20.06 crore respectively during FY12. VAIBHAV JEWELLERS: ICRA Reaffirms 'BB' Rating on INR12cr Loans -------------------------------------------------------------- ICRA has reaffirmed the long term rating of '[ICRA]BB' assigned to INR12.00 crore fund based bank facilities of Vaibhav Jewellers. The outlook on long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long Term Fund 12 [ICRA]BB reaffirmed based Limits The ratings reaffirmation by ICRA factors in VJ's limited financial flexibility on account of highly leveraged capital structure, poor coverage indicators and high working capital intensity characterized by the high inventory maintained by the entity which also exposes it to volatility in gold prices. The assigned rating continues to factor in the highly competitive nature of the jewellery market characterized by the presence of a large number players and low entry barriers for new entrants. The rating remains constrained due to concentration risks arising from the fact that the entity operates through a single showroom. ICRA has also taken note of expected increase in gearing and the project risks associated with the construction of new showroom. The rating however favourably factors in the long-standing experience of Vaibhav Jewellers's promoters and management in the jewellery business which has enabled the entity to establish leadership position in retail jewellery business in the Eluru market. Going forward the ability of the entity to maintain its growth and manage its inventory amidst intense competition will be a continued challenge in this market and will be a key rating sensitivity. Vaibhav Jewellers is a partnership firm which was constituted in 1991 in Eluru village as a manufacturer and retailer of gold Jewellery by Mr GSV Amarandra, Mr G Narendra and Mr G Manoj Kumar. In 1997 Vaibhav Jewellers was converted as a proprietary concern with Mr GSV Amarendra as a sole proprietor. VJ's showroom size is about 120 sq yards and it employs about 30 people. VRV TEXTILES: Delay in Loan Payment Cues ICRA Junk Ratings ---------------------------------------------------------- ICRA has revised the long-term rating to '[ICRA]D' from '[ICRA]B+' for INR30.86 crore fund based limits of VRV Textiles Limited. ICRA has also revised the short-term rating to '[ICRA]D' from '[ICRA]A4' for INR3.38 crore non-fund based limits and INR1.50 crore proposed long-term/short-term limits of VRV. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long term fund 30.86 [ICRA]D revised from [ICRA]B+ based limits Short term non- 3.38 [ICRA]D revised from [ICRA]A4 fund based limits Proposed long-term/ 1.50 [ICRA]D revised from short-term limits [ICRA]B+/[ICRA]A4 The revision in the ratings primarily factor in the recent delays in debt servicing following stretched liquidity condition on account of net losses of INR3.75 crore in FY12. The ratings also factor in 19% dip in operating income in FY12 in addition to net losses in FY12 which led to significant deterioration in coverage indicators, resulting in overall deterioration in financial risk profile during the year. The ratings are further constrained by the recent power holiday announcement of 3 days per week in Andhra Pradesh (AP) which is likely to impact VRV's profitability due to dependence on high cost merchant power and modest scale of operations with 16,896 spindles capacity which restricts economies of scale. However, the ratings favorably factor in the experience of the promoter in cotton ginning, lint trading and spinning activities and change in product profile to value added m�lange yarn from cotton yarn which is likely to result in improvement and stability in profitability going forward. The ratings also take comfort from the conversion of INR2.98 crore redeemable preference share capital into equity share capital during FY12 and proximity to a major cotton growing area and lower power tariffs in the state with fiscal incentives offered by the AP state government. Timely debt servicing would however be the key rating driver over the near term. VRV Textile Limited, promoted in the year 2006, started its operations with manufacturing of cotton yarn and gradually shifted to the manufacturing of m�lange* yarn. Since June, 2012 the company is fully engaged in manufacturing of m�lange yarn. Its primary customers are in the hosiery segment in domestic market. Currently, VRV has an installed capacity of 16,896 spindles. ================= I N D O N E S I A ================= SMARTFREN TELECOM: Fitch Junks Rating on IDR603 Billion Bond ------------------------------------------------------------ Fitch Ratings has assigned Indonesia-based PT Smartfren Telecom Tbk a National Long-term Rating of 'CC(idn)'. At the same time, Fitch has also assigned Smartfren's IDR603bn bond (originally IDR675bn), issued in 2007 by PT Mobile-8 Telecom Tbk, a National Rating of 'CC(idn)'. Smartfren's ratings reflect its weak liquidity position arising from sustained poor cash flow generation; EBITDA has been negative since 2008. Despite Smartfren's improving operating performance and its expectations of a turnaround in 2013, Fitch believes further new funding requirements would continue to arise until 2015 as cash flows from operations are unlikely to be able to meet obligations in these years. Smartfren does not currently have funds in place to meet its debt, interest and lease obligations in 2013. Fitch believes that Smartfren is unlikely to be able to raise new debt funding and the company is relying on funds from the future issue of equity-like mandatory convertible bonds (MCBs). Although Smartfren has received periodic funding from MCB issuance since January 2011, in its analysis Fitch cannot rely on further similar cash injections as these investors' willingness and ability to continue to fund Smartfren cannot be assessed, particularly given the company's low equity value. In general, due to the volatility and uncertainty of equity valuations Fitch does not give credit for future equity injections unless there is a very high degree of certainty about future receipt of funds. This would normally have to be evidenced by an underwritten rights issue, an unconditional sale agreement for new shares with a creditworthy buyer or a stated policy of support from a parent which has the demonstrated financial resources to provide the equity funding. To reduce its leverage, Smartfren has previously undertaken debt- for-equity swaps. Where creditors face a material reduction in terms from such a swap, it is generally classified as distressed debt exchange (DDE) under Fitch's methodology. A DDE would lead to the company being assigned a Restricted Default ('RD(idn)') National Long-Term rating. Fitch believes it is possible that Smartfren's management may offer further debt-for-equity swaps to creditors in the future. What Could Trigger A Rating Action? Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- Improvements in both trading and liquidity Negative: Future developments that may, individually or collectively, lead to negative rating include: -- Failure to secure new funding to meet obligations -- Announcement of a further debt-for-equity swap offer, likely to be considered a DDE ==================== N E W Z E A L A N D ==================== SOUTH CANTERBURY: Trial Call-Over Set For January 25 ---------------------------------------------------- Emma Baile at stuff.co.nz reports that the five men alleged to be involved in the biggest white-collar crime in New Zealand through South Canterbury Finance have been committed to a trial call-over on January 25 next year. stuff.co.nz says the five face 21 charges worth NZ$1.7 billion, which were brought by the Serious Fraud Office last December. According to the report, the registrar at Timaru District Court confirmed that the defendants -- Graeme Brown, Terry Hutton, Lachie McLeod, Edward Sullivan and Robert White -- have been remanded on bail until the trial. A post committal conference is scheduled for (Monday) November 5 at 9:00 a.m. A post committal conference occurs after an accused is committed for trial, where the parties' counsel may agree to a conference to define the issues in dispute, stuff.co.nz discloses. Judge Saunders has refused any television or photographic coverage of the defendants while attending at the courthouse for the purpose of signing a bail bond, the report adds. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the provision of financial services. The Company's principal activities were borrowing funds from public and institutional investors and on lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advanced funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. On Aug. 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalize. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government repaid South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the Crown retail deposit guarantee scheme. STRUCTURED FINANCE: To Pay 25% to Some Investors ------------------------------------------------ stuff.co.nz reports that Structured Finance will pay some of its investors 25c in the dollar after they voted to accept a settlement offer from the company's owner. But the deal excluded the bulk of debenture stock, casting doubt on potential recoveries for investors in defunct First Step funds owed close to NZ$30 million, the report says. stuff.co.nz says Structured Finance, owned by interests associated with Auckland financier Martyn Reesby, owed debenture investors about NZ$32.7 million after defaulting on its debts in May 2009. According to the report, the company has failed to meet any of its scheduled repayments under a moratorium agreement, which should have returned 60c in the dollar, and the final due date was extended to October 31 this year. stuff.co.nz notes the 25c offer, which excludes interest due, was made only to public investors owning about 10% of the debentures. The other 90% is owed to investors in the First Step fund structure marketed by failed advisory firm Money Managers and frozen in 2006. Structured Finance's trustee, Foundation, told BusinessDay it was up to First Step's trustee to decide what to do with its stock, stuff.co.nz adds. Structured Finance Ltd is a New Zealand-based property lender. =============== X X X X X X X X =============== * Fitch Published Edition of AP Monthly Newsletter -------------------------------------------------- Fitch Ratings has published the latest edition of its Asia- Pacific monthly newsletter. The 'Asia-Pacific Monthly' is one of the most viewed reports on the Fitch website. Uncertainty about the global economic outlook and its impact remained the key theme in September, which also saw Fitch downgrade its growth forecasts for Asia's two economic giants, India and China, in "Fitch: Weaker Global Growth Outlook Despite Monetary Policy Stimulus" and "Fitch Cuts China, India 2012 Growth Forecasts as Risks to Global Recovery Mount" (both dated 27 September 2012). Other related commentaries are "Fitch: Eurozone Exposure Not A Key Risk For Most APAC Corporates" (11 September 2012), and "Fitch: Growing Caution for APAC Banks as GDP Growth Slows" (17 September 2012). China was on Fitch's radar in "Fitch: Hong Kong Banks' China Lending to Slow" (27 September 2012) and "Fitch: Chinese Banks' Balance Sheet Growth A Concern" (4 September 2012). Financial institutions were corporates active issuers in Asia- Pacific bond markets in September. Fitch published rating actions on several transactions including "Fitch Rates CITIC Bank International's Subordinated Notes 'BBB-(EXP)'", "Fitch Rates NH Bank's GMTN Programme 'A' and Notes 'A(EXP)'", "Fitch Rates Bangkok Bank's USD Senior Notes 'BBB+'", "Fitch Rates Siam Commercial Bank's Senior Notes 'BBB+'", "Fitch Rates China Hongqiao's USD Senior Unsecured Notes 'BB(EXP)'", and "Fitch Rates BOC Aviation's Senior Notes 'A-(EXP)'". ********* 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 ***