/raid1/www/Hosts/bankrupt/TCRAP_Public/121115.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 15, 2012, Vol. 15, No. 228
Headlines
A U S T R A L I A
BLUESCOPE STEEL: S&P Withdraws 'BB-' Rating on New $300MM Notes
BRISCONNECTIONS: Macquarie Sees No Impact if Operator Fails
C H I N A
LDK SOLAR: Unit Completes Construction of 12MW Project in Italy
WEST CHINA: Moody's Cuts CFR & Sr. Unsecured Bond Ratings to 'B1'
H O N G K O N G
ACTION FOR VISION: Creditors' Proofs of Debt Due Dec. 3
AFEX INTERNATIONAL: Members' Final Meeting Set for Dec. 11
AFEX PROCUREMENT: Members' Final Meeting Set for Dec. 11
ART AND MUSIC: Creditors' Proofs of Debt Due Dec. 10
CITIPORT LIMITED: Seng and Lo Step Down as Liquidators
FAST KIND: Chan Yui Hang Appointed as Liquidator
GOLDWISE LEATHERWARE: Placed Under Voluntary Wind-Up Proceedings
HK GENERAL: Wong and Chan Appointed as Liquidators
JC NO. 1: Members' Final Meeting Set for Dec. 10
KGC LIMITED: Commences Wind-Up Proceedings
NEW WELL: Court Enters Wind-Up Order
PESO NAVIGATION: Creditors' Proofs of Debt Due Nov. 30
SMART EMPIRE: Creditors' Proofs of Debt Due Dec. 14
VAST EAST: Chan Yui Hang Appointed as Liquidator
VAST SUNNY: Chan Yui Hang Appointed as Liquidator
WAL SHION: Court to Hear Wind-Up Petition on Nov. 21
WISDOM CASTLE: Creditors' Proofs of Debt Due Dec. 31
WORLD ENTERPRISES: Creditors to Get 100% Recovery on Claims
I N D I A
BAJRANG COTGIN: ICRA Assigns 'B-' Rating to INR14.83cr Loans
GHODAWAT FOODS: ICRA Reaffirms 'BB' Rating on INR26cr LT Loan
KINGFISHER AIRLINES: Fails to Pay May Salary on Diwali
KUDU KNIT: ICRA Reaffirms '[ICRA]BB' Rating on INR10.89cr Loan
NEW TESTAMENT: ICRA Rates INR18.25cr LT Loan at '[ICRA]B-'
PARDES DEHYDRATION: CRISIL Puts 'BB-' Rating on INR3.9cr Loans
SAHAJANAND TECHNOLOGIES: ICRA Rates INR15cr Loan at '[ICRA]BB+'
SONAL VYAPAR: ICRA Reaffirms 'BB+' Rating on INR8.50cr Loan
SONY CONSTRUCTION: ICRA Rates INR7cr Loan at '[ICRA]B'
SPECTOMS ENG'G: ICRA Rates INR1.4cr Cash Credit at '[ICRA]B+'
VARUN CASTINGS: ICRA Assigns '[ICRA]B+' Rating to INR4cr Loan
J A P A N
CSC SERIES 1 GK: S&P Cuts Ratings on 4 Bond Classes to 'D'
JAPAN FINANCE: Moody's Affirms 'Caa2' Rating to Class A Notes
TITAN JAPAN: Fitch Downgrades Rating on Three Notes to 'Dsf'
TITAN JAPAN 1: S&P Cuts Ratings on 3 Bond Classes to 'D'
N E W Z E A L A N D
ASHLEY FOGEL: Closes Shop After 40 Years
GENESIS RESEARCH: "Insufficient Funds" Cues Voluntary Liquidation
WESTCOAST BREWING: Placed in Liquidation; Bar and Grill Unit Sold
P H I L I P P I N E S
AMAN FUTURES: Investors Lose PHP12 Billion in "Pyramid Scam"
S I N G A P O R E
ARGO CAPITAL: Creditors' Proofs of Debt Due Dec. 10
TNS SHIPPING: Court to Hear Wind-Up Petition Nov. 23
TRICOMM INTERNATIONAL: Court Enters Wind-Up Order
TRI-OCEANIC PTE: Creditors' Proofs of Debt Due Dec. 10
S R I L A N K A
TRADE FINANCE: Fitch Affirms 'BB+' National Long Term Rating
- - - - -
=================
A U S T R A L I A
=================
BLUESCOPE STEEL: S&P Withdraws 'BB-' Rating on New $300MM Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services had withdrawn its 'BB-' issue
rating on the proposed notes by BlueScope Steel Ltd.'s
(BB/Stable/--) wholly-owned subsidiaries BlueScope Steel
(Finance) Ltd. and BlueScope Steel Finance (USA) LLC, following
the company's announcement of its decision not to proceed with
its proposed offering of US$300 million senior unsecured notes.
"At the same time, we withdrew the recovery rating of '5' on the
proposed debt," S&P said.
BRISCONNECTIONS: Macquarie Sees No Impact if Operator Fails
-----------------------------------------------------------
Anthony Marx at The Courier-Mail reports that the biggest single
investor in embattled BrisConnections expects no impact on its
bottom line if the AirportLink toll road operator fails.
The Courier-Mail relates that Macquarie Group, which controls 45%
of the stapled securities, said there would be no material effect
on its results if the carrying value of the investment was partly
or wholly impaired.
According to the report, Macquarie obtained the 178.1 million
securities when it acted as underwriter for the 2008 float of
Brisconnections, meaning there will be no flow-on impact for
small investors.
Deutsche Bank, the second largest investor, with a 33% holding,
also acquired its stake by serving as a joint underwriter of the
public listing, the Courier-Mail relates.
Other investors also clarified their exposure to BrisConnections,
which is teetering on the edge of collapse as it negotiates a
restructuring deal with banks owed more than AUD3 billion, says
The Courier-Mail.
The report notes that battered by traffic numbers far below
forecast, the company suspended trading on the Australian
Securities Exchange on November 12 after acknowledging the
AUD4.8 billion project may be worth less than its debt load.
Construction giant Leighton Holdings said it was now reviewing
the carrying value of its AUD63 million deferred equity
commitment to BrisConnections, the Courier-Mail relates.
About BrisConnections
BrisConnections Management Company Limited (ASX:BCSCA) --
http://www.brisconnections.com.au/-- is an Australia-based
company. The company is engaged in designing, constructing,
operating, maintaining and financing Airport Link in Australia.
Airport Link is a 6.7 kilometer toll road, mainly underground,
connecting the North-South Bypass Tunnel, Inner City Bypass and
local road network at Bowen Hills, to the northern arterials of
Gympie Road and Stafford Road at Kedron, Sandgate Road and the
East West Arterial leading to the airport.
=========
C H I N A
=========
LDK SOLAR: Unit Completes Construction of 12MW Project in Italy
---------------------------------------------------------------
LDK Solar Co., Ltd.'s subsidiary company, Solar Green Technology
of Italy, has completed design and construction of a 12-megawatt
(MW) PV project known as "Century."
The Century project consists of industrial rooftop PV plants
ranging between 300 and 1,000 kilowatts (kW), located throughout
Italy. A portion totaling approximately 7.8MW of the project has
been completed and 40% of the financing was provided by LDK
Solar. These projects will benefit from the Fourth Conto
Energia, which was issued in May 2011 by the Italian Ministry of
Economic Development and the Ministry of Environment, and
provides incentives based on the type and size of the PV system.
"We are pleased to expand our presence in Italy's solar market
through this project. The completion of these projects
demonstrates the existing demand for solar power in Italy and we
look forward to continuing to broaden our relationships in this
region," stated Xingxue Tong, President and CEO of LDK Solar.
"This project is one of the largest rooftop PV plants. The
strategic partnership between the parties involved confirms that
the integration and cooperation among industry players, such as
module manufacturers, EPC contractors and financial operators,
can lead the development and implementation of projects in Italy
with a goal of moving toward grid parity," stated Angelo Prete,
Managing Director of Solar Green Technology.
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, LDK Solar 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.
The Company's balance sheet at June 30, 2012, showed US$6.40
billion in total assets, US$5.95 billion in total liabilities,
US$254.44 million in redeemable non-controlling interests and
US$192.17 million in total equity.
WEST CHINA: Moody's Cuts CFR & Sr. Unsecured Bond Ratings to 'B1'
-----------------------------------------------------------------
Moody's Investors Service has downgraded the corporate family and
senior unsecured bond ratings of West China Cement Limited (WCC)
to B1 from Ba3.
The ratings outlook is negative.
These actions conclude the ratings review that commenced on
August 22, 2012, following the announcement of WCC's 1H 2012
results.
Ratings Rationale
"The ratings downgrade reflects WCC's weakened liquidity and
financial profiles, owing to its fast business expansion and a
more competitive pricing in the market," says Jiming Zou, a
Moody's Analyst.
WCC's fast expansion has weakened its liquidity profile -- its
cash balance declined to RMB174 million as of June 2012 from
RMB566 million as of December 2011 and short-term debt doubled to
RMB1.25 billion in the same period. Such a low level of cash
balance cannot support its current business plan.
The company's plan to increase its capacity to 30 million tonnes
per annum by 2015 will utilize all of its operating cash flows
and increase its debt leverage. In addition, with the expansion,
WCC will venture into new regions -- including Xinjiang-- where
it doesn't have the similar competitive edge as in its core
market of Shaanxi.
"At the same time, cement demand and prices have not recovered as
meaningfully as originally expected, because of overcapacity and
subdued investment spending in Shaanxi," Mr. Zou says.
WCC's averaging selling price has recently stabilized at RMB240-
245 per ton, which is slightly up from RMB235 per ton in 1H 2012,
but remains low compared with RMB289 per ton in 1H 2011. Moody's
expects cement prices to linger at the current level over the
next 12 months.
The lower cement prices in Shaanxi province have pressured its
operating margin. Moody's expects WCC's operating margin to
remain below 20%, compared to 25.9% in 2011.
In this context, the company's weak projected credit metrics --
adjusted debt/EBITDA of around 4.0x-4.5x and EBITDA/interest of
around 3.5x-4.0x in the next two years -- more appropriately
position it in the B1 category.
The B1 rating also reflects the company's top-tier position in
southeastern Shaanxi, which benefits from long-term demand from
infrastructure-related projects and urbanization.
The rating also considers the company's track record of profit
growth, which is well above the national industry average, due to
its market leadership and extensive local business networks.
The negative rating outlook reflects WCC's weak liquidity and
financial profiles, because of challenging market conditions, and
the execution and financial risks associated with its ambitious
plans to grow capacity outside Shaanxi province.
The rating outlook could return to stable, if WCC can
demonstrate: (1) more disciplined financial management,
characterized by reduced capital spending and larger financial
buffers; (2) improved liquidity, such that cash balance covers
around 30%-40% of short-term debt payments; and (3) improved
profitability, highlighted by operating margins of around 20%.
The ratings could be further downgraded if there is: (1) a
material loss in WCC's market share; (2) further deterioration in
the pricing environment that erodes its profitability; (3)
continued aggressive spending, such that EBITDA/interest expense
falls below 3.0x and a debt/EBITDA ratio exceeds 5.0x.
The principal methodology used in rating West China Cement
Limited was the Global Building Materials Industry Methodology
published in July 2009.
West China Cement is one of the leading cement producers in
Shaanxi province. As of end-2011, the company's production
capacity had reached 16.2 million tons per annum. Most of its
plants are in southern Shaanxi, where it has a dominant market
share.
In addition, it is setting up a footprint in the Xinjiang
Autonomous Region, as evidenced by the acquisition of a
production facility in Hetian in May 2011 and the construction of
another cement plant in Yutian.
The company is 38.53% owned by its chairman, Mr. Zhang Jimin. It
was listed on the Hong Kong Stock Exchange in August 2010.
================
H O N G K O N G
================
ACTION FOR VISION: Creditors' Proofs of Debt Due Dec. 3
-------------------------------------------------------
Creditors of Action for Vision Eye Foundation Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by Dec. 3, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 31, 2012.
The company's liquidator is:
Chan Mei Bo Mabel
Suites 2208-11, 22nd Floor
Tower One, Times Square
1 Matheson Street
Causeway Bay, Hong Kong
AFEX INTERNATIONAL: Members' Final Meeting Set for Dec. 11
----------------------------------------------------------
Members and creditors of AFEX International (HK) Limited will
hold their final meeting on Dec. 11, 2012, at 2:30 p.m., and
2:45 p.m., respectively at Unit A, 14/F, JCG Building, at 16
Mongkok Road, Mongkok, Kowloon, in Hong Kong.
At the meeting, Ng Kwok Wai and Lui Chi Kit, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
AFEX PROCUREMENT: Members' Final Meeting Set for Dec. 11
--------------------------------------------------------
Members and creditors of AFEX Procurement Company Limited will
hold their final meeting on Dec. 11, 2012, at 3:15 p.m., and
3:30 p.m., respectively at Unit A, 14/F, JCG Building, at 16
Mongkok Road, Mongkok, Kowloon, in Hong Kong.
At the meeting, Ng Kwok Wai and Lui Chi Kit, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
ART AND MUSIC: Creditors' Proofs of Debt Due Dec. 10
----------------------------------------------------
Creditors of The Art and Music Foundation of Asia Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by Dec. 10, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 26, 2012.
The company's liquidators are:
Ng Kit Ying Zelinda
Kan Tim Hei
Tower Two, Times Square
1 Matheson Street
Causeway Bay, Hong Kong
CITIPORT LIMITED: Seng and Lo Step Down as Liquidators
------------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Citiport Limited on Oct. 31, 2012.
FAST KIND: Chan Yui Hang Appointed as Liquidator
------------------------------------------------
Chan Yui Hang on Oct. 26, 2012, was appointed as liquidator of
Fast Kind Limited.
The liquidator may be reached at:
Chan Yui Hang
Room 512, 5/F
New Mandarin Plaza Tower B
14 Science Munseum Road
Tsimshatsui East
Kowloon, Hong Kong
GOLDWISE LEATHERWARE: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------------
At an extraordinary general meeting held on Oct. 31, 2012,
creditors of Goldwise Leatherware (MFG.) Company Limited resolved
to voluntarily wind up the company's operations.
The company's liquidator is:
Ha Man Kit Marcus
Room 1402, 14/F
Wanchai Central Building
89 Lockhart Road
Wanchai, Hong Kong
HK GENERAL: Wong and Chan Appointed as Liquidators
--------------------------------------------------
Wong Chun Wa and Chan Kwun Chi on Oct. 26, 2012, were appointed
as liquidators of Hong Kong General Association of Construction
Machinery Limited.
The liquidators may be reached at:
Wong Chun Wa
Chan Kwun Chi
Room 905-906, 9/F
Houston Centre
63 Mody Road, Tsim Sha Tsui
Kowloon, Hong Kong
JC NO. 1: Members' Final Meeting Set for Dec. 10
------------------------------------------------
Members of JC No. 1 (H.K.) Limited will hold their final meeting
on Dec. 10, 2012, at 10:00 a.m., at 7th Floor, Alexandra House,
at 18 Chater Road, Central, in Hong Kong.
At the meeting, Philip Brendan Gilligan, the company's
liquidator, will give a report on the company's wind-up
proceedings and property disposal.
KGC LIMITED: Commences Wind-Up Proceedings
------------------------------------------
Members of KGC Limited, on Oct. 26, 2012, passed a resolution to
voluntarily wind up the company's operations.
The company's liquidator is:
Kwong Chi Choi Oliver
Room 601, 6/F
Tai Tung Building
8 Fleming Road
Wanchai, Hong Kong
NEW WELL: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on Oct. 31, 2012, to
wind up the operations of New Well Fortune Limited.
The official receiver is Teresa S W Wong.
PESO NAVIGATION: Creditors' Proofs of Debt Due Nov. 30
------------------------------------------------------
Creditors of Peso Navigation Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Nov. 30, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Nov. 2, 2012.
The company's liquidator is:
Man Yun Wah
Room 2105, 21/F
Office Tower, Langham Place
8 Argyle Street
Mongkok, Kowloon
Hong Kong
SMART EMPIRE: Creditors' Proofs of Debt Due Dec. 14
---------------------------------------------------
Creditors of Smart Empire Capital Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Dec. 14, 2012, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Oct. 30, 2012.
The company's liquidator is:
Chan Sek Kwan Rays
Unit F, 12/F
Seabright Plaza
9-23 Shell Street
North Point, Hong Kong
VAST EAST: Chan Yui Hang Appointed as Liquidator
------------------------------------------------
Chan Yui Hang on Oct. 26, 2012, was appointed as liquidator of
Vast East Foodstuff Limited.
The liquidator may be reached at:
Chan Yui Hang
Room 512, 5/F
New Mandarin Plaza Tower B
14 Science Munseum Road
Tsimshatsui East
Kowloon, Hong Kong
VAST SUNNY: Chan Yui Hang Appointed as Liquidator
-------------------------------------------------
Chan Yui Hang on Oct. 26, 2012, was appointed as liquidator of
Vast Sunny Limited.
The liquidator may be reached at:
Chan Yui Hang
Room 512, 5/F
New Mandarin Plaza Tower B
14 Science Munseum Road
Tsimshatsui East
Kowloon, Hong Kong
WAL SHION: Court to Hear Wind-Up Petition on Nov. 21
----------------------------------------------------
A petition to wind up the operations of Wal Shion and Company
Limited will be heard before the High Court of Hong Kong on
Nov. 21, 2012, at 9:30 a.m.
The Petitioner's solicitors are:
Y.S. Lau & Partners
7th Floor, Hing Yip Commercial Centre
272-284 Des Voeux Road
Central, Hong Kong
WISDOM CASTLE: Creditors' Proofs of Debt Due Dec. 31
----------------------------------------------------
Creditors of Wisdom Castle Kindergarten Foundation Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by Dec. 31, 2012, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Oct. 29, 2012.
The company's liquidator is:
Chan Mei Kuen
Room 202, 2/F
Conwell House
34-38 Stanley Street
Central, Hong Kong
WORLD ENTERPRISES: Creditors to Get 100% Recovery on Claims
-----------------------------------------------------------
The World Enterprises Holdings Limited, which is in liquidation,
will pay the first preferential dividend to its creditors on
Dec. 20, 2012.
The company will pay 100% for preferential claims.
The company's liquidators are:
Li Man Wai
Tsang Lai Fun
Room 902, 9/F
Fu Fai Commercial Centre
27 Hillier Street
Sheung Wan, Hong Kong
=========
I N D I A
=========
BAJRANG COTGIN: ICRA Assigns 'B-' Rating to INR14.83cr Loans
------------------------------------------------------------
The rating of '[ICRA]B-' has been assigned to the INR14.83 crore
long-term fund based facilities of Bajrang Cotgin Private
Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Cash Credit 14.00 [ICRA]B- assigned
Term Loan 0.83 [ICRA]B- assigned
The assigned rating is constrained by the weak financial profile
as evident from highly leveraged capital structure, weak debt
coverage indicators and low profitability. The rating is further
constrained by the highly competitive and fragmented industry
structure owing to low entry barriers and vulnerability of
profitability to any adverse fluctuations in the raw material
prices, which are also subject to seasonality, crop harvest and
regulatory risks. However, the ratings favorably factor in the
long track record of the company in the ginning industry;
favorable location of the company's manufacturing facility in
Rajkot giving it an easy access to raw material and favorable
demand outlook for cotton and cottonseeds in the domestic as well
as international market.
Bajrang Cotgin Private Limited was incorporated in the year 2005
and is engaged in the business of ginning and pressing of raw
cotton along with crushing of cotton seed to extract cotton seed
oil and cotton seed cake. The company's plant is located in
Rajkot with production capacity of 300 bales per day. Besides
manufacturing, the company is also engaged in trading of cotton
seeds, yarn, lint, etc.
Recent Results
For the year ended on March 31, 2012, the company reported an
operating income of INR149.07 crore and profit after tax of
INR0.09 crore as against an operating income of INR82.02 crore
and profit after tax of INR0.03 crore for FY 2011.
GHODAWAT FOODS: ICRA Reaffirms 'BB' Rating on INR26cr LT Loan
-------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB' rating assigned to the
INR26.00 crore fund based cash credit facilities and has assigned
'[ICRA]BB' rating to the INR 14.00 crore proposed long term fund
based facilities of Ghodawat Foods International Private Limited.
The outlook on the long-term rating is stable.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long Term, Term Loan 13.71 Rating Withdrawn
Long term, Cash Credit 26.00 [ICRA]BB Reaffirmed
Proposed Long Term Fund 14.00 [ICRA]BB Assigned
Based
ICRA has withdrawn the [ICRA]BB rating assigned to the INR 13.71
crore long term loan facilities. The same have been fully repaid
by GFPL and there is no amount outstanding with respect to the
same.
ICRA had earlier suspended the long term rating of '[ICRA]BB
(Stable)' outstanding on the company on Sept. 6, 2012.
The reaffirmation of ratings takes into consideration the growth
in revenues by virtue of increased crushing capacity with
Gangakhed plant commencing its operations in the previous year,
continued financial support from promoters through timely
infusion of funds and the branded presence in the Southern
Maharashtra and Northern Karnataka region. The ratings, however,
remain constrained by stretched accruals on back of low margins
and working capital intensive nature of business. The financial
risk profile is characterized by high gearing and moderate debt
coverage indicators though remain supported by unsecured loans
from promoter group. ICRA also takes note of inherent risks
associated with the soybean industry on back of vulnerability to
agro climatic conditions, international demand-supply scenario
and regulatory framework resulting in volatility in realizations
and availability of seed for crushing. Though the record prices
of soya products during H1FY13 resulted in exceptional margins
for the company the same are expected to moderate going forward
with imminent correction in prices.
About Ghodawat Foods
GFPL was incorporated in 2002 and is engaged in the business of
Edible Oil manufacturing, refining and trading. The company
manufactures edible oil mainly from Soybean and sunflower seeds
and sells it under the "Star" brand. In addition, the company
also engages in trading of refined oil, also sold under the Star
brand. GFPL's manufacturing facility is located at Chipri and has
a solvent extraction capacity of 250 TCD (tons crushed per day)
and a refining capacity of 100 TPD (tons per day). The company
has also up an additional solvent extraction plant (with a
capacity of 500 TCD) at Gangakhed, near Parbhani.
GFPL is closely held within the Ghodawat family and is a part of
the Ghodawat group of companies, a diversified group engaged in
businesses such as pan masala, wind energy, wind turbine
manufacturing, food products and education.
Recent Results
GFPL recorded an operating income of INR 260.5 crore and a PAT of
INR 1.56 crore in FY12 as against an operating income of INR
187.5 crore and a PAT of INR 0.92 crore for the twelve months
ending March 31, 2011. For the H1 FY 13 (Provisional) GFPL has
reported revenues of INR208.2 crore and a PBT of INR20.8 crore.
KINGFISHER AIRLINES: Fails to Pay May Salary on Diwali
------------------------------------------------------
Press Trust of India reports that around 3,000 employees of the
near-bankrupt Kingfisher Airlines were left in the dark on Diwali
after the management failed to pay their May salary, despite its
commitment that the dues will be cleared by the festival.
"3,000 employees got a Diwali gift from chairman Vijay Mallya in
the form of no salary despite his commitment," airline sources
told PTI.
"It is a dark Diwali for us. The management has once again failed
to keep its commitment on payment of salary dues. We did not
receive salaries in our account till late last night, although
the management had made tall claims of clearing our dues by the
festival," the sources said.
The news agency notes the airline, which is grounded since
October 1 after its engineers and pilots went on strike demanding
payment of their salary dues, has not paid its employees since
May this year.
The employees, however, called off their strike late last month
after the airline's chief executive, Sanjay Agarwal pleaded them
to return to work and assured that they will receive their three-
month salaries in staggered schedule by Diwali, the report
relates.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintains bases in major cities such as Delhi and
Mumbai.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 5, 2012, The Times of India said Kingfisher Airlines has
been given a reality check by its auditors in the company's
annual report 2011-12. The company had current liabilities,
including borrowings and trade payables of INR8,436 crore,
against current assets of INR1,618.8 crore at the end of
March 2012. According to TOI, the Vijay Mallya-promoted company
has defaulted in repayment of loans to banks and financial
institutions, for which several lenders have had to take a hit by
setting aside more funds, with overdues estimated at nearly
INR800 crore at the end of March 2012.
Kingfisher, which has been unprofitable since it was created in
2005, accumulated losses of $1.9 billion between May 2005 and
June 30 of this year, The Wall Street Journal reported citing
Sydney-based consultant CAPA-Centre for Aviation. The airline
also owes about $2.5 billion to lenders, suppliers, leasing
companies and investors, the Journal added.
KUDU KNIT: ICRA Reaffirms '[ICRA]BB' Rating on INR10.89cr Loan
--------------------------------------------------------------
ICRA has re-affirmed '[ICRA]BB' rating on long term scale to
INR10.89 crore fund based facilities of Kudu Knit Process Pvt
Ltd. The outlook on the long term rating continues to remain
stable. ICRA has also re-affirmed '[ICRA]A4' on short term scale
to INR0.10 crore non fund based facilities of KKPL.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long Term Fund Based 10.89 [ICRA]BB Re-affirmed
Limits
Short Term Non Fund 0.10 [ICRA]A4 Re-affirmed
Based Limits
ICRA's ratings continue to favorably take into account conversion
of sizeable portion of share application money into equity which
assuages risk of withdrawal of capital previously noted by ICRA.
Further, the ratings continue to be strengthened by established
track record of promoters and company's composite mill status,
evidenced by vertical integration from yarn processing to garment
manufacturing. ICRA remains cognizant of greater supply chain
control and off-take visibility (owing to nomination with leading
brands) benefits accruing to the company owing to its level of
integration of operations. Further, ICRA also continues to
favorably factor in availment of term loan by KKPL under TUFS
(Technology Up-gradation Funds scheme) scheme which makes the
company eligible for favorable borrowing covenants.
The ratings however, continue to remain constrained by relative
weakening of capital structure owing to primarily debt funded
capex undertaken by the company towards augmentation of knitted
fabric manufacturing capacity. This said, ICRA notes despite the
increased debt levels, the overall debt coverage indicators
continued to remain moderate owing to relative improvement in
operating profitability during the same period. The ratings
continue to take into account KKPL's working capital intensive
nature of operations led by high inventory days which lead to
high reliance on working capital funds and unsecured loans
thereby leading to sizeable interest costs and modest net
margins. Further, the ratings continue to remain weakened by
inherent susceptibility of profitability and cash flows to
cyclicality in raw material prices. Given the fact that raw
material accounts for nearly two-thirds of sales, any adverse
deviation in the same has a pronounced malign impact on margins
for the company. The ratings also continue to factor in revenue
concentration in the garment division with top 5 clients
accounting for more than half the revenues; however, launching of
own brand "Nitrate Sports" coupled with directed efforts towards
diversifying client base is expected to mitigate the concern to
an extent going forward. The ratings also maintain their concern
towards KKPL's limited pricing power in wake of competition owing
to fragmented nature of the industry.
Going forward, ability of the company to improve its revenues
following the completion of the debt funded capex and launch on
own brand, sustain the profitability margins in the backdrop of
volatile raw material prices and prudently manage its working
capital cycle will remain the key rating sensitivities in the
near to medium term.
Incorporated in 1999 by the current managing director and second
generation entrepreneur Mr. Vipan Kumar Mittal and now also
actively managed by Mr. Varun Mittal, the company is engaged in
manufacture of knitted fabrics, garments and blankets along with
other ancillary items across the textile value chain. The company
positions itself as a composite knitting group equipped with
trend sensitive technology for manufacturing knitted products in
the textile product portfolio. While the fabrics remain the main
revenue driver for the company, KKPL also has sizeable focus on
garments division wherein the company not only manufactures
garments under private label and on job-work for fast selling
international brands like Reebok, Rockport, Van Heusen, Peter
England, Pantaloon, Head, Kappa, Bombay Dyeing etc, but has also
now launched its own brand called "Nitrate Sports" for mass-
market unisexual sportswear. The company clocked revenues of
INR55.54 crore in FY2012 which grew from INR50.30 crore in FY2011
and a PAT of INR0.87 crore which increased from INR0.56 crore in
FY2011.
NEW TESTAMENT: ICRA Rates INR18.25cr LT Loan at '[ICRA]B-'
----------------------------------------------------------
An [ICRA]B- rating has been assigned to the INR18.25 crore
(enhanced from INR15.00 crore), long term fund based bank
facilities of The New Testament Church of Christ Society.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long Term Fund Based 18.25 [ICRA]B- assigned
Facilities
The rating incorporates the positive response obtained by the new
school, Christ International School "CIS", in its first year of
commencement from June 2012, with a total of 434 admissions
granted for the academic year 2012-13 as compared to the
previously expected ~290 admissions. The favorable response
obtained for the residential facilities resulting in a total of
53 students opting for hostel facilities as compared to the
previously expected 17 students, further strengthens the ratings.
ICRA also favorably notes the management's experience in
successfully running educational institutes like "NTCC High
School" and "NTCC D T.Ed" and managing over 2000 students in
these institutes. However, the debt of INR7.85 crore undertaken
for the construction of the new school coupled with the
additional debt proposed for the construction of the second phase
is likely to result in stretched coverage indicators for the
trust in the medium term and the response to the residential
facilities will remain key sensitivity for improving the same.
The commencement of the term loan repayments from FY2014 is
likely to stress the liquidity of the trust going forward.
However, equity infusion by the trust will provide comfort to an
extent to the otherwise stretched gearing.
The New Testament Church of Christ Society was established in
1973 by Late. Rev P D Prabhakar Rao and was registered as a trust
in June 1978, with the aim of improving quality education for
areas of Mumbai and adjoining areas. The society started its
operations by setting up a primary school "NTCC Primary School"
in 1980, after getting the requisite approvals from the BMC
(Brinhanmumabi Municipal Corporation). In 1984, the society
received the approvals for setting up the secondary and higher
secondary schools. The society was then taken over by Mr. Jeevan
Kumar Maddewad (the current Chairman )in the year 1992, post
which the trust established its college "NTCC D T Ed college" in
Marathi medium in the year 2007. In June 2012, the trust
commenced the operations of its new school Christ International
School, CIS, located in Latur.
Recent Results
For the twelve months ending March 31, 2012, NTCC reported a
profit after tax (PAT) of INR0.14 crore (provisional) on an
operating income (OI) of INR1.0 crore (provisional), as against a
PAT of INR0.12 crore on an OI of INR0.9 crore for the twelve
months ending March 31, 2011.
PARDES DEHYDRATION: CRISIL Puts 'BB-' Rating on INR3.9cr Loans
--------------------------------------------------------------
A rating of '[ICRA]BB-' has been assigned to INR0.90 crore fund
based cash-credit facility and INR3.00 crore packaging credit
limit of Pardes Dehydration Company. The outlook on the long
term rating is stable. A rating of '[ICRA]A4' has also been
assigned INR4.25 crore short term non-fund based facilities and
INR3.75 crore short-term fund based facility of PDC.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Cash Credit 0.90 [ICRA]BB- assigned
Packaging Credit 3.00 [ICRA]BB- assigned
Forward Purchase Contract 3.75 [ICRA]A4 assigned
FDBN/FDBP/FDBD 3.75 [ICRA]A4 assigned
Forward Sale Contract 0.25 [ICRA]A4 assigned
BG/Import LC 0.25 [ICRA]A4 assigned
The assigned ratings reflect PDC's modest size of operations, and
the weak financial profile characterized by low profitability,
modest coverage indicators on account of high interest charges,
and high working capital intensity marked by high inventory due
to seasonal nature of produce. ICRA also takes notes of the
vulnerability of margins to government regulations, raw material
price movements which are subject to seasonality and crop
harvest; and foreign exchange fluctuations however the risk is
mitigated to a large extent as the firm hedges its position
through forward contracts. ICRA also incorporates partnership
concern status of PDC and any significant withdrawals from the
capital account would affect its net worth and thereby its
capital structure.
The ratings, however, favorably consider the established track
record of the firm with long experience of the promoters in food
processing industry and favorable location of the firm giving it
easy access to key input.
Pardes Dehydration Co. was incorporated in 1983 as a partnership
firm. The firm is currently headed by Mr. Hitendra Parekh. It is
primarily engaged in dehydration of onions and garlic which it
sells under the brand name 'Pardes Dehydration'. The production
facility of the firm is located in Gondal, Gujarat with the
capacity to dehydrate 3000 MT annually.
Recent Results
For the year ended March 31, 2012, (provisional financials), the
firm has reported an operating income of INR25.04 crore with a
profit after tax (PAT) of INR0.60 crore.
SAHAJANAND TECHNOLOGIES: ICRA Rates INR15cr Loan at '[ICRA]BB+'
---------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]BB+' to the fund-
based facilities aggregating to INR15.00 crore of Sahajanand
Technologies Private Limited. The long term rating has a stable
outlook.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund Based Limits 15.00 [ICRA]BB+ assigned
(Cash Credit)
The ratings take into account of the company's proven track
record and technical capabilities in the manufacturing of capital
equipments for the diamond processing industry, as well as,
comfortable debt protection indicators. The ratings are however
constrained by the company's small size of operations, high
working capital intensity of operations and vulnerability of
profitability margins to any inventory write-offs owing to high
excess inventory levels. ICRA further notes that STPL's
operations are exposed to business cycles in the diamond
processing industry and competitive pressures remain intense from
both domestic as well as overseas players. Further, the company's
operations remain exposed to technological risks by virtue of
constant improvements in laser based technologies and ability of
the company to keep pace with such developments remains critical
to maintain profitability margins
Sahajanand Technologies Private Limited was incorporated in the
year 1993 by Mr. Dhirajlal Kotadia and is engaged in development
and manufacturing of machines primarily for the diamond
processing industry. The company manufactures machines for three
major processing stages of diamond processing viz. Diamond
Analysis & Planning, cutting and polishing. The company's
manufacturing facilities are located in Surat and Daman.
For FY 2012, the company reported profit after tax of INR2.89
crore on an operating income of INR35.97 Cr. For H1 FY 2013, the
company reported profit before depreciation and tax of INR3.58
crore on an operating income of INR17.36 crore (provisional).
SONAL VYAPAR: ICRA Reaffirms 'BB+' Rating on INR8.50cr Loan
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB+'
outstanding on the INR8.50 crore fund based facilities of Sonal
Vyapar Limited. ICRA has also reaffirmed the short-term rating
of '[ICRA]A4+' outstanding on the INR15.00 crore non-fund based
facilities of SVL. The outlook on the long-term rating is stable.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund based facilities 8.50 [ICRA]BB+ reaffirmed
Non-fund based facilities 15.00 [ICRA]A4+ reaffirmed
The reaffirmation of ratings considers SVL's comfortable capital
structure, the improvement in its coverage metrics due to the
significant growth in turnover and profits on the back of trading
operations and the experience of its promoters in the steel
industry. The ratings also consider the low operating
profitability, the tight power supply situation in Tamil Nadu
which impacts the manufacturing operations and the ongoing
weakness in the steel industry which is expected to maintain
profitability at muted levels in the near-to-medium term. While
intense competition in the fragmented structural steel
manufacturing business exposes the Company's accruals to
volatility in raw material costs and restricts scope for margin
expansion, its accruals are also vulnerable to adverse movements
in foreign currency rates.
Established in 1985, SVL is primarily engaged in the manufacture
of structural steel (largely comprising MS angles, channels,
etc.) at its facility located in Salem, Tamil Nadu. The
manufacturing facility has an induction furnace with a capacity
of 30,000 tonnes per annum and a rolling mill with a capacity of
36,000 tonnes per annum. The Company is also engaged in trading
in scrap and structural steel, which contributed INR90.0 crore to
revenues during 2011-12. SVL is part of the OPG group, which has
interests in steel manufacturing/trading and power generation.
Recent Results
SVL reported profit before taxes of INR1.1 crore on operating
income of INR173.5 crore during 2011-12 (according to unaudited
results), against profit before taxes of INR0.5 crore on
operating income of INR65.5 crore during 2010-11.
SONY CONSTRUCTION: ICRA Rates INR7cr Loan at '[ICRA]B'
------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B' to the INR7.00
crore fund based bank limits M/s Sony Construction.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund Based Limits-Cash 7.00 [ICRA]B assigned
Credit
The rating factor in SC's decline in operating income due to
delays in project execution and cancellation of major projects,
leading to small scale of current operations and nominal profits
and net cash accruals and the weak financial profile of the firm
as characterized by aggressive capital structure, which keeps the
debt protection indicators depressed. The rating also remains
impacted by the lowest price (L-1) based contract award system in
a highly competitive industry with many players, which may
continue to limit SC's profitability. ICRA also takes note of the
firm's high working capital requirement that exerts pressure on
its liquidity position thus leading to high fund based limit
utilisation and high sector concentration risk, with the business
being generated mainly from the power sector. Majority of SC's
project are located in the eastern part of the country and this
exposes SC to significant geographical concentration risks, in
ICRA's opinion. The ratings, however, favorably factor in SC's
established presence in the civil construction industry and SC's
technical competence and satisfactory performance and quality of
work as indicated by the repeat orders from established clients.
While assigning the ratings ICRA has taken into consideration
SC's healthy order book position which provides revenue
visibility over the near term. While the same is likely to lead
to an increase in SC's scale of operations from current levels,
SC's ability to manage its working capital requirements without
significantly stretching its liquidity position would remain a
key rating sensitivity going forward.
M/s Sony Construction was incorporated in 1992 as a
proprietorship firm and started construction activities generally
as a retainer contractor to reputed companies like Siemens,
Reliance Power etc. The firm was subsequently changed into a
partnership entity. The firm is involved in the development of
the civil foundation work for transmission towers and control
rooms, building trenches, boundary walls and other miscellaneous
civil works.
Recent Results
The firm has reported a net profit after tax (PAT) of INR0.25
crore in FY12 on an operating income (OI) of INR3.23 crore. The
firm had earned a PAT of INR0.41 crore on an OI of INR5.88 crore
in FY11.
SPECTOMS ENG'G: ICRA Rates INR1.4cr Cash Credit at '[ICRA]B+'
-------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR1.40 crore cash
credit facility of Spectoms Engineering Pvt. Ltd. ICRA has also
assigned an '[ICRA]A4' rating to the INR5.45 crore short term
fund and non-fund based facilities of SEPL.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Cash Credit 1.40 [ICRA]B+ assigned
BP/BD 0.20 [ICRA]A4 assigned
Bank Guarantee 4.65 [ICRA]A4 assigned
Letter of Credit 0.60 [ICRA]A4 assigned
The assigned ratings are constrained by SEPL's very small scale
of operations given its dependence largely on feed milling
projects and vulnerability of profitability to raw material price
fluctuations in the absence of price escalation clauses in the
project contracts. The ratings are further constrained by
financial profile of the company characterized by moderate
profitability, leveraged capital structure and moderate debt
coverage indicators.
However, the ratings favorably factor in the extensive experience
of promoters with over three decades of experience in the same
line of business, enabling the company in meeting technical
criteria while bidding for tenders and client portfolio
consisting mostly of government and semi-government bodies
leading to low counterparty credit risks. While the order book
position is healthy, providing revenue visibility in the near
term, timely execution of projects remains critical given the
instances of LD invocation against the company in the past.
Spectoms Engineering Private Limited (SEPL) was incorporated in
1974 and is primarily involved in setting up animal feed milling
plants and food processing plants on turnkey basis. The range of
activities involves designing, plant and building layout,
equipment procurement, installation and commissioning of the
plant. The company is also involved in manufacturing of marine
equipments to be used in ships, however the revenues from the
sale of marine equipments currently remains limited.
Recent Results
During FY 2011, the company reported a profit after tax of
INR0.19 crore on an operating income of INR5.20 crore. Further,
during FY 2012, the company reported operating income of INR11.66
crore and profit before tax of INR0.48 crore (as per provisional
unaudited numbers).
VARUN CASTINGS: ICRA Assigns '[ICRA]B+' Rating to INR4cr Loan
-------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to the INR4.00
crore1 fund based facilities. ICRA has also assigned short term
rating of '[ICRA]A4' to the INR5.00 crore non fund based limits
of Varun Castings Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund Based Limits 4.00 [ICRA]B+ (assigned)
Non Fund Based Limits 5.00 [ICRA]A4 (assigned)
The rating of the company are constrained by VCPL moderate scale
of operations resulting in inadequate economies of scale which
coupled with intensely competitive nature of metal casting
industry has resulted in modest operating margins, weak debt
coverage indicators and high gearing. Further VCPL's revenues are
exposed to adverse movements in prices of key material like MS
Scrap. However the ratings are supported by long standing track
record of the promoters in the steel industry, favorable demand
outlook for the steel industry driven by increased demand from
TMT bars manufactures. VCPL's established relationship with
various TMT steel manufacturers and some of the key cliental are
Mohindra Enterprise, Bansal Ispat Udog, Madhav Udyog Private
Limited.
VCPL was incorporated in 2009 and is a closely held private
limited company, under the leadership of Mr. Vinod Kumar Goyal.
The company is engaged in the manufacturing steel ingots. The
plant has a production capacity of 16,200 MT per annum and has
been operational since October 2010. The company sources its key
raw material which is MS Steel (Mild Steel) from domestic
suppliers and also imports from Middle East countries i.e Dubai,
Abu Dhabi and South Africa.
Recent Results
As per the audited figures of 2011-12, the company reported a
profit after tax (PAT) of INR0.15 crore on an operating income of
INR54.95 crore as against PAT of INR0.10 crore on an operating
income of INR21.36 crore in 2011.
=========
J A P A N
=========
CSC SERIES 1 GK: S&P Cuts Ratings on 4 Bond Classes to 'D'
----------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' its
ratings on the class B-2, B-3, C-2, and D-2 bonds issued under
the CSC, Series 1 GK transaction. The class A-2 and A-3 bonds
fully redeemed on the principal and interest payment date in
November 2011. "We downgraded to 'D (sf)' the class X bonds on
Feb. 1, 2011, the class G-3 bonds on Feb. 17, 2011, and the class
E-2, E-3, and F-3 bonds on Feb. 17, 2012," S&P said.
"Only one remaining loan backed the transaction, and this loan
has defaulted. The outstanding principal on the securitized
portion of the loan exceeded the amount of proceeds collected
through the sales of the loan's collateral properties. We
lowered our ratings on classes B-2, B-3, C-2, and D-2 because we
confirmed that no or only partial principal payments on classes
C-2 and D-2, and no interest payments on classes B-2, B-3, C-2,
and D-2, were made
on the transaction's legal final maturity date in November 2012.
The loan originally represented about 38% of the total initial
issuance amount of the bonds," S&P said.
"CSC, Series 1 GK is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. Eleven nonrecourse loans
(effectively six loans because some of the loans are in cross-
collateral and cross-default) extended to six obligors initially
secured the bonds, and 72 real estate trust certificates and real
estate properties originally backed the loans. Credit Suisse
Securities arranged the transaction, and ORIX Asset Management &
Loan Services Corp. acts as the servicer," 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 LOWERED
CSC, Series 1 GK
JPY36.2 billion yen-denominated bonds due November 2012
Class To From Initial issue amount
B-2 D (sf) CCC (sf) JPY1.7 bil.
B-3 D (sf) CCC (sf) JPY1.5 bil.
C-2 D (sf) CCC- (sf) JPY3.2 bil.
D-2 D (sf) CCC- (sf) JPY3.2 bil.
JAPAN FINANCE: Moody's Affirms 'Caa2' Rating to Class A Notes
-------------------------------------------------------------
Moody's Japan K.K. has upgraded to A3 (sf) from Baa2 (sf) its
rating on the Series One Class B Unsecured Notes of the Synthetic
CLOs of Regional Financial Institutions (Clover, LLC.) by Japan
Finance Corporation.
Moody's has also affirmed the Aaa (sf) rating of the Series One
Class A Unsecured Notes and the Caa2 (sf) rating of the Class C
Unsecured Notes.
Details follow:
Deal Name: Synthetic CLO of Regional Financial Institutions
(Clover, LLC.)
Issuer: Clover, LLC.
JPY1,900,000,000 Series One Class A Unsecured Notes, affirmed
at Aaa (sf);
Previously on 3 March 2011, assigned Aaa (sf).
JPY578,646,000 Series One Class B Unsecured Notes, upgraded to
A3 (sf);
Previously on 3 March 2011, assigned Baa2 (sf).
JPY175,928,000 Series One Class C Unsecured Notes, affirmed at
Caa2 (sf);
Previously on 3 March 2011, assigned Caa2 (sf).
Dividend: Floating
Issue Date: 11 March 2011
Final Maturity Date: 28 May 2014
Reference Obligation: Loans to small and medium-sized enterprises
(SMEs) in Japan
Originator/First CDS Buyer/Servicer: THE SAIKYO SHINKIN BANK,
Toyama Shinkin Bank, KITAISEUENO SHINKIN BANK, Osaka Shinkin
Bank, The Awaji Shinkin Bank
First CDS Seller/Second CDS Buyer: Japan Finance Corporation
(JFC, Aa3)
Second CDS Seller: Clover, LLC.
Independent Auditor: Tokyo Kyodo Accounting Office
Note Trustee/Initial Deposit Bank: Mizuho Corporate Bank, Ltd.
(Mizuho Corporate Bank, A1/P-1)
Calculation Agent: Mizuho Trust & Banking Co., Ltd.
Arranger: Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
The notes represent a synthetic CLO transaction referencing
corporate loans for small and medium-sized enterprises (SME).
These loans were originated by 5 financial institutions with the
intention of securitizing them under a "purchase scheme" program
of the Japan Finance Corporation (JFC).
Ratings Rationale
The rating upgrade of the Class B Unsecured Notes reflects
increased credit enhancement due mainly to deal amortization.
Moody's affirmed the rating of the Class A Unsecured Notes at Aaa
(sf) because the increased credit enhancement is enough to
support the highest rating, which is Aaa (sf).
Moody's affirmed the rating of the Class C Unsecured Notes at
Caa2 (sf), given its low credit enhancement level and the
outstanding amount of delinquencies.
The main factor for the uncertainty in Moody's analysis is the
macroeconomic environment for SMEs, as well as the financing
environment.
The Japanese economy is weak following the slowdown in the global
economy. Although the business environment for SMEs is also
weakening, government support for SME financing remains strong,
as highlighted by favorable measures, such as the SME Moratorium
Law, Safety Net Guarantee Program (No.5), Disaster-Recovery-
Related Emergency Guarantee and Special Lending Programs.
Thus, the number of corporate bankruptcies is now at its lowest
in 10 years.
As for the performance of the transaction, there were 8
delinquencies (approximately JPY188 million) in September, with
one credit event so far. This performance is worse than Moody's
initial expectation.
However, as a result of referencing loan amortization, the
subordination ratio* for the Class B Notes rose to 38.8% in
September 2012 from 21.1% in March 2011.
* The formula used to calculate the subordination in this
transaction is Y/Z, where "Y" equals the outstanding principal
amount of the Class C Notes subordinated to the Class B Notes
and the total amount of the credit protection threshold**, and
"Z" equals the current reference obligation amount.
** The Originators will individually hold the credit protection
threshold amounts and use them to cover losses incurred on the
loans that they themselves have originated (the "sub-pool").
The credit protection threshold amounts cannot be used to
cover losses incurred against other sub-pools.
Moody's increased the expected credit event rate for the
referencing pool to 4.0% (annualized) from 2.9%, given the
delinquencies so far and the current business environment for
SMEs. Moody's also assumes a zero recovery rate from a credit
event.
In its rating analysis, Moody's takes into account expected
credit event rates, outstanding delinquent loans, and changes in
credit enhancement, including current subordination, using the
CDOROM model.
If the annualized credit event rate were to increase from 4.0% to
6.0%, the model outputs for Class A, B and C would change from
Aaa to Aa1 (Class A); from A3 to Baa3 (Class B); from Caa2 to
Caa3 (Class C).
The principal methodology used in this rating was "Moody's
Approach to Rating Japan SME CDOs" published on September 30,
2010, and available on www.moodys.co.jp.
Moody's did not receive or take into account a third party due
diligence report on the underlying assets or financial
instruments related to the monitoring of this transaction in the
past six months.
TITAN JAPAN: Fitch Downgrades Rating on Three Notes to 'Dsf'
------------------------------------------------------------
Fitch Ratings has downgraded three classes of Titan Japan, Series
1 GK notes, due November 2012 and simultaneously withdrawn the
ratings due to tranche default. The transaction is a Japanese
multi-borrower type CMBS securitisation.
-- JPY1.3bn* Class B notes downgraded to 'Dsf' from 'Csf';
rating withdrawn; Recovery Estimate NC
-- JPY11.8bn* Class C notes downgraded to 'Dsf' from 'Csf';
rating withdrawn; Recovery Estimate NC
-- JPY11.7bn* Class D notes downgraded to 'Dsf' from 'Csf';
rating withdrawn; Recovery Estimate NC
*as of 13 November 2012
The downgrade of the class B to D notes reflects the failure of
the issuer to redeem the notes in full by the legal final
maturity on 13 November 2012. Since the previous rating action
in July 2012, the sales of all of the then remaining 10
underlying properties have been settled, leading to the full
repayment of the class A notes in August 2012.
Fitch will no longer calculate the Recovery Estimate for this
transaction following the withdrawal of the ratings.
At closing, the notes were backed by six loans ultimately secured
by 43 real estate properties in Japan. All of the underlying
properties were sold by end-July 2012.
Fitch will no longer provide ratings or analytical coverage for
this transaction.
TITAN JAPAN 1: S&P Cuts Ratings on 3 Bond Classes to 'D'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' its
ratings on the class B to D floating-rate bonds issued under the
Titan Japan, Series 1 GK transaction. The class A bonds fully
redeemed on the principal and interest payment date in August
2012.
"Four remaining loans backed the transaction, and all these loans
have defaulted. The outstanding principal on the securitized
portions of the loans exceeded the amount of proceeds collected
through the sales of the loans' collateral properties. We lowered
our ratings on classes B to D because we confirmed that no or
only partial principal payments on these classes were made on the
transaction's legal final maturity date in November 2012. The
loans originally represented a combined 84% or so of the total
initial issuance amount of the bonds," S&P said.
Titan is a multiborrower commercial mortgage-backed securities
(CMBS) transaction. Six nonrecourse loans extended to six
obligors originally secured the bonds, and 43 real estate
properties or real estate beneficial interests initially backed
the nonrecourse loans. Credit Suisse Securities (Japan) Ltd.
arranged the transaction, and Premier Asset Management Co. acts
as the
servicer.
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 LOWERED
Titan Japan, Series 1 GK
JPY125.8 billion floating-rate bonds due Nov. 2012
Class To From Initial issue amount
B D (sf) CCC (sf) JPY12.1 bil.
C D (sf) CCC- (sf) JPY11.8 bil.
D D (sf) CCC- (sf) JPY11.7 bil.
====================
N E W Z E A L A N D
====================
ASHLEY FOGEL: Closes Shop After 40 Years
----------------------------------------
The Wellington Fashion Week related that Ashley Fogel has
announced the discontinuation of his leading New Zealand fashion
label that has borne great national and international success.
After more than 40 years of designing and manufacturing iconic
women's clothing, Fogel will now focus on his personal health and
well-being. "After having a heart attack in April and double
bypass surgery [thereafter]," he said, "it's now time to
prioritise."
The Wellington Fashion Week noted the Ashley Fogel label is
intrinsically defined by high quality tailoring and femininity;
aspects that the New Zealand and international fashion scenes
have adored for many years.
Ashley Fogel showcased its Summer 2012 collection at the
inaugural Wellington Fashion Week in April, and was a crowd
favorite on the opening evening, with a standout presence and
upbeat flare.
News of Fogel's decision to cease production has been greeted
with great sadness by the industry, with Chris Hales owner of
Goodness Boutique, a stockist of the Fogel label, defining the
news as devastating. "I am hugely saddened by the news; Ashley
Fogel is such an iconic brand which exuberantly personifies his
innate passion for what he does. I'm very sorry to see him go."
The decision is also indicative of a tougher economic climate and
the surge of online international retail channels.
GENESIS RESEARCH: "Insufficient Funds" Cues Voluntary Liquidation
----------------------------------------------------------------
Blair Cunningham at NBR Online reports that Genesis Research and
Development has been placed into voluntary liquidation because of
"insufficient funds".
NBR notes that board member Aki von Roy made the announcement on
November 13 to the NZX after trading halt while the company
sought legal advice.
NBR says the company, which is developing genre silencing
technology which targets the growth and drug resistance of cancer
cells, has been struggling to find funding for the past two
years.
According to the report, Mr. von Roy, Steven Gillis, Andy Gearing
and Daniel Mahnert-Lueg have resigned from the board, leaving
Catherine Yan as the sole director.
In July, the report recalls, Genesis announced it would not be
going ahead with its proposed merger with unlisted pharmaceutical
development company Mariposa.
NBR relates that Mr. van Roy said the merger would have given
Genesis more funding to survive and continue in the field of
biotechnology and drug development.
About Genesis Research
New Zealand-based Genesis Research & Development Corp.
-- http://www.genesis.co.nz/-- engages in commercializing
scientific research. It operates solely in the biotechnology
industry and considers the health operation as the only segment.
The health programs focus on developing products for human
health, predominantly in the fields of immunology and cancer,
together with animal health and physiology, and include venture
capital type investments, including investment interests in
Solirna Biosciences Ltd, Real Time Genomics Inc. and Pure Power
Global. Operations are carried out in New Zealand. The Company's
subsidiaries include AgriGenesis Biosciences Limited, BioGenesis
Limited, BioStore NZ Limited and Genesis Employee Fund Limited.
WESTCOAST BREWING: Placed in Liquidation; Bar and Grill Unit Sold
-----------------------------------------------------------------
Michael Berry at stuff.co.nz reports that Westcoast Brewing has
been put into liquidation by Inland Revenue (IRD), along with its
Christchurch bar and grill subsidiary.
stuff.co.nz relates that Associate Judge Rob Osborne on
November 13 ordered that Westcoast Brewing and West Coast Bar &
Grill (Christchurch) be put into liquidation under Iain Nellies
and Wayne Deuchrass of Insolvency Management.
According to the report, Mr. Nellies said West Coast Bar & Grill
(Christchurch) had sold the Main North Rd bar & grill business on
Monday and it was still trading as far as he knew.
The amounts owed by Westcoast Brewing and the bar & grill were
not available, the report notes.
About 370 investors bought in to Westcoast Brewing during its
almost six-year life. The latest public records show the company
had NZ$4.3 million in equity in the year ended June 2010; the
last public share issue was in 2009, stuff.co.nz discloses.
The recalls that Messrs. Nellies and Deuchrass were appointed
liquidators of related company The West Coast Brewery back in
May. The Westport-based craft brewery owed about NZ$265,000 to
unsecured creditors, a further NZ$133,700 was owed to
preferential creditors.
About NZ$90,000 of the preferential claims was due to the IRD --
the principal tax debt -- with NZ$144,000 of the unsecured claims
penalties and interest claimed by the department.
stuff.co.nz reports that Queenslander Paddy Sweeney, founder and
director of the Westcoast Brewing group of companies and the Good
Bastards Club, has said those penalties were harsh, with the IRD
the only creditor allowed to impose such high punishment on
debtors.
Mr. Sweeney would not comment except to say it was business as
usual at the West Coast Bar & Grill after its sale, the report
adds.
=====================
P H I L I P P I N E S
=====================
AMAN FUTURES: Investors Lose PHP12 Billion in "Pyramid Scam"
------------------------------------------------------------
Nancy C. Carvajal at the Philippine Daily Inquirer reports that
Aman Futures Group Phils. Inc. has duped at least 15,000 people
in Mindanao and the Visayas of PHP12 billion in a pyramid scam,
an official of the National Bureau of Investigation said Tuesday.
According to the report, Virgilio Mendez, NBI deputy director for
regional operations services, said among Aman Futures' victims
were local politicians, police and military personnel, government
workers, market vendors, farmers, drivers, retired employees and
overseas Filipino workers.
He said the number of "complainants from across the country is
piling up," the Inquirer relays.
The Inquirer relates that Mr. Mendez said Justice Secretary Leila
de Lima had ordered the NBI to file estafa cases against
executives and directors of Aman Futures namely Manuel K.
Amalilio, Fernando "Nonoy" R. Luna, Lelian Lim Gan, Edward L.
Lim, William L. Fuentes, Naezelle M. Rodriguez and Lurix Lopez.
Mr. Mendez said the first investors of the company were low-
income people but professionals and retired employees followed
because of the promise of a high return on investment, the report
adds.
"The first clients of Aman Futures were market vendors in
Pagadian City who invested PHP1,000 with a 70-percent return
after one week," the Inquirer quotes Mr. Mendez as saying.
According to the Inquirer, the NBI deputy director said Mr. Luna,
who managed the multibillion scam, "is a former driver and
utility person for a company located near the Pagadian City
public market."
Mr. Luna's boss, Amalilio, is a 32-year-old Malaysian, whose
Malaysian name is Mohammad Suffian Saaid. His wife is identified
as Abigail Pendulas, and they have two children, ages 2 and 1.
Mr. Mendez said Luna and Amalilio and their families are now in
hiding, the Inquirer reports.
=================
S I N G A P O R E
=================
ARGO CAPITAL: Creditors' Proofs of Debt Due Dec. 10
---------------------------------------------------
Creditors of Argo Capital Management (Asia) Pte Ltd, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Dec. 10, 2012, to be included in the company's
dividend distribution.
The company's liquidators are:
Chee Yoh Chuang
Abuthahir Abdul Gafoor
c/o 8 Wilkie Road
#03-08 Wilkie Edge
Singapore 228095
TNS SHIPPING: Court to Hear Wind-Up Petition Nov. 23
----------------------------------------------------
A petition to wind up the operations of TNS Shipping Services Pte
Ltd will be heard before the High Court of Singapore on Nov. 23,
2012, at 10:00 a.m.
Kog Japan K. K. filed the petition against the company on
Oct. 29, 2012.
The Petitioner's solicitors are:
Lexcompass LLC
101 Upper Cross Street
#06-19 People's Park Centre
Singapore 058357
TRICOMM INTERNATIONAL: Court Enters Wind-Up Order
-------------------------------------------------
The High Court of Singapore entered an order on Nov. 2, 2012, to
wind up Tricomm International Pte Ltd's operations.
The company's liquidators are:
Goh Yeow Kiang Victor
Sim Guan Seng
care of M/s Baker Tilly TFW LLP
15 Beach Road #03-10
Beach Centre
Singapore 189677
TRI-OCEANIC PTE: Creditors' Proofs of Debt Due Dec. 10
------------------------------------------------------
Creditors of Tri-Oceanic Pte Ltd, which is in liquidation, are
required to file their proofs of debt by Dec. 10, 2012, to be
included in the company's dividend distribution.
The company's liquidator is:
Chua Teck Lian
c/o 15 Fishery Port Road
Jurong, Singapore 619735
================
S R I L A N K A
================
TRADE FINANCE: Fitch Affirms 'BB+' National Long Term Rating
------------------------------------------------------------
Fitch Ratings Lanka has affirmed Trade Finance and Investments
PLC National Long-Term Rating at 'BB+(lka)' with a Stable
Outlook.
The rating factors in TFI's strong capitalisation and
profitability metrics for a small-sized registered finance
company (RFC). The rating is however, constrained by its limited
lending diversity, narrow deposit base and small franchise.
The ratings may be downgraded upon continued strong loan growth
and heightened portfolio concentration (towards two stroke three
wheelers and motor cycles) leading to an elevated risk profile
and weakened financial profile. A rating upgrade is less likely
in the short to medium term, but could occur if there were
concerted evidence of funding (deposit mobilisation) and lending
diversification in line with the development of its franchise,
while maintaining its financial profile relative to higher-rated
peers.
TFI posted strong loan growth of 82.9% in FY12 (FY11: 36.7%)
supported by lower import duties on vehicles in 2010-2011. Fitch
expects that TFI's unseasoned loan book is likely to face asset
quality stresses unless strong monitoring and control measures
are maintained on loan portfolio.
The company's core business of vehicle finance, in the form of
lease and hire purchase (HP), comprised of 78% and 19.4% of its
loan book at the financial year to end-March 2012 (FYE12), with
the balance consisting of loans. Three wheelers and motor cycles
accounted for 69.4% of asset financed in FYE12 (FYE11:83.3%
FYE10:83%).
Profitability measured by pre-tax return on assets (ROA) adjusted
for non-recurring items was at 13.8% (annualised) in the six
months to end-September 2012 (H113) (14.1% in FYE12) which was
well above the similar rated peer average of 6.6%. This was
supported by wider net interest margins which benefit from high
equity funded assets. NIMs are expected to narrow due to
intensified competitive pressure and gradual change in funding
mix (as more loans are expected to be funded by deposits).
Mainly due to the rapid loan growth, TFI's non-performing loan
ratio improved to 12.9% for over three months in arrears, and
2.6% for over six months in arrears, of total advances at FYE12
(FYE11:16.1%, 4.5% respectively). However, Fitch notes that
these loans are still new and as such NPLs could increase as the
loan book seasons. Provision coverage for NPLs over six months
was at 76.8% at end-H113 (FYE12:73.3%). TFI has maintained
satisfactory provision cover compared with its peers.
TFI's funding is predominantly through equity and deposit from
related parties. Deposits funds accounted for 40.5% of assets at
end H113 (FYE12: 32.2%), where around 68.6% of deposits came from
related parties.
Fitch expects TFI's capitalisation to come under pressure due to
its expanding operation but to stay well above peers' level.
Capitalisation measured by equity to asset ratio stood at 54.7%
at H113 (FYE12:61.4%). The ratio was high on account of the
equity infusion through an IPO in 2011 of LKR120m and high
internal capital generation in light of strong profitability and
high earnings retention.
TFI is a RFC incorporated in 1978. It was listed in the Colombo
Stock Exchange in 2011 and the Cooray family owns around 75.16%
of TFI. It operates through four branches and has an asset base
of LKR1,139m at end H113.
*********
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 ***