/raid1/www/Hosts/bankrupt/TCRAP_Public/121211.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
Tuesday, December 11, 2012, Vol. 15, No. 246
Headlines
A U S T R A L I A
EQUITITRUST LIMITED: Owner Declared Bankrupt, Mother's Home Sold
OCTAVIAR LIMITED: Liquidators Rack Up AUD44.73 Million in Fees
URBAN CONSTRUCT: 2 Units in Administration Over Contract Breach
* Fitch Analysts Discuss Outlook For Australian Resources Sector
C H I N A
HYVA GLOBAL: S&P Cuts Corp. Credit Rating to B; Outlook Negative
* CHINA: Moody's Reports on Information Challenges of RLGs
H O N G K O N G
BOSTAR LIMITED: Creditors' Proofs of Debt Due Jan. 8
CAMIS METAL: Creditors' Meeting Set for Dec. 14
CANTON PROPERTY: Annual Meetings Set for Dec. 31
CHINA RAILWAY: Members' and Creditors Meetings Set for Dec. 31
CHINESE INVESTMENT: Leung and Yuen Step Down as Liquidators
CHINESE MERCHANTS: Leung and Yuen Step Down as Liquidators
CITITEAM DEVELOPMENT: Commences Wind-Up Proceedings
DYNAMIC DEVELOPMENT: Creditors' Proofs of Debt Due Jan. 7
EVER GROWTH: Leung and Yuen Step Down as Liquidators
GLOBAL SUCCESS: Members' and Creditors' Meetings Set for Dec. 31
GOLDEN CHOICE: Members' and Creditors Meetings Set for Dec. 31
GUANDONG INTERNATIONAL: Annual Meetings Set for Jan. 11
HENDERSON CHINA: Commences Wind-Up Proceedings
INSPECTORATE HK: Members' Final Meeting Set for Jan. 8
LECO WATCH: Creditors' Meeting Set for Dec. 14
I N D I A
ANIRUDH TEXCHEM: ICRA Reaffirms 'B+' Rating on INR9.45cr Loans
BOHRA EXPORTS: ICRA Assigns '[ICRA]BB-' Rating to INR150cr Loans
GBJ HOTELS: ICRA Rates INR108cr Term Loans at '[ICRA]B+'
HARSO STEELS: CRISIL Assigns 'CRISIL B+' Rating to INR150MM Loans
NORTH MALABAR: ICRA Assigns '[ICRA]B-' Rating to INR6.30cr Loan
OM STEEL: CRISIL Assigns 'CRISIL BB-' Rating to INR50MM Loans
PATEL COTTON: ICRA Reaffirms '[ICRA]BB-' Rating on INR7.5cr Loan
RAM SAROOP: CRISIL Hikes Rating on INR200MM Loan to 'CRISIL[BB-]'
ROADLINES CORP: CRISIL Assigns 'C' Rating to INR98-Mil. Loan
R V PLASTIC: CRISIL Cuts Rating on INR110MM Loans to 'CRISIL B'
SHREE KRISHNA: ICRA Hikes Rating on INR71cr Loans to 'C'
VEDANTA RESOURCES: Moody's Affirms 'Ba1' CFR; Outlook Negative
J A P A N
J-CORE15 TRUST: Fitch Affirms 'Csf' Rating on Four TBI Classes
JLOC XXX: Fitch Affirms 'Csf' Rating on Two TBI Classes
JLOC XXX: Fitch Affirms Junk Rating on Three TBI Classes
RENESAS ELECTRONICS: Sells JPY150-Bil. New Shares to Japan Fund
M A L A Y S I A
GOLDEN AGRI-RESOURCES: Moody's Says Faces LT Financing Event Risk
N E W Z E A L A N D
COMPUTER POWER: Liquidators Chase NZ$9.5MM from Directors
P H I L I P P I N E S
PHILIPPINES: S&P Corrects Ratings History on Two Debt Issues
S I N G A P O R E
3COM ASIA: Creditors' Proofs of Debt Due Jan. 7
ASPINDEN HOLDINGS: Creditors' Proofs of Debt Due Jan. 7
BAXUS MARINE: Creditors' Meetings Set for Dec. 11
EAST ZONO: Creditors' Proofs of Debt Due Jan. 8
FATWIRE ASIA: Creditors' Proofs of Debt Due Jan. 7
OLAM INT'L: Banks Didn't Raise Credit Concerns on Bond Sale
POSCO ENGINEERING: S&P Keeps 'bb+' Stand-Alone Credit Profile
X X X X X X X X
* BOND PRICING: For the Week Dec. 03 to Dec. 7, 2012
- - - - -
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A U S T R A L I A
=================
EQUITITRUST LIMITED: Owner Declared Bankrupt, Mother's Home Sold
-----------------------------------------------------------------
Lucy Ardern at goldcoast.com.au reports that the Federal
Magistrates Court of Australia late last month declared
Equititrust Limited merchant bank founder Mark McIvor bankrupt.
According to the report, Mr. McIvor did not attend the court
hearing and there was no one to represent him when Registrar
Baldwin made a sequestration order against his estate.
goldcoast.com.au relates that the bankruptcy lodgment by David
Tucker and his legal practice partner Richard Cowen of a
creditor's petition with the court came after the parties were
unable to agree on payment for legal costs.
Mr. Tucker, the report cites, was Mr. McIvor's personal lawyer
for more than a decade and provided services for Equititrust for
many years through the firm Tucker and Cowen. The relationship
between the two took a turn for the worse, goldcoast.com.au
relates, when Equititrust started to experience financial
troubles and Mr. Tucker was forced off the board in October last
year.
According to goldcoast.com.au, Mr. McIvor recently contacted
business associates across Australia to attract investors for a
new boutique bank, Mi Citizens Union, which he has been trying to
launch.
Mr. McIvor told prospective investors thru e-mail that he was
confident of rebuilding his wealth during the next three years,
goldcoast.com.au relays.
However, Mr. McIvor's bankruptcy will stand until 2015, or for
three years after he fills out his statement of affairs and the
bankruptcy trustee identifies any assets and income that can be
used to return funds to his creditors, the report relates.
goldcoast.com.au notes that receivers have already sold several
properties linked to Mr. McIvor and his family, including his
home on Cronin Island.
Michael Peldan, from Worrells, is expected to be appointed as
Mr. McIvor's bankruptcy trustee, the report adds.
In a separate Dec. 8 report, Quentin Tod at goldcoast.com.au
relays that receivers have sold the Southport home of Janice
McIvor, Mr. McIvor's mother, for AUD4 million less than Westpac's
exposure. The Brighton Parade house, according to the report,
sold at a Dec. 8 auction for AUD1.175 million to buyers who have
a home nearby.
The sale of the home, which sits on a 1,050 sq. meter site that
cost AUD375,000 in 2003, was ordered by receivers KordaMentha,
goldcoast.com.au cites.
According to the report, Mrs. McIvor went to court last month to
retain another house she owned at Currumbin, in Queensland,
Australia, for 23 years. She asked the Supreme Court in Brisbane
to restrain Westpac from enforcing a mortgage and guarantees over
the Woodgee St house, the report relays.
goldcoast.com.au relates that Mrs. McIvor said at the hearing
that she had no idea that her son had convinced her to sign AUD22
million in mortgages over four properties -- the Currumbin and
Southport houses and two holdings in Palm Beach's Jefferson Lane.
The documents signed for the Southport house were for
AUD5.2 million in mortgages or guarantees, the report notes.
About Equititrust
Equititrust Limited -- http://www.equititrust.com.au/-- is an
Australian-based specialist funds management and property
investment group. Equititrust is the responsible entity of the
Equititrust Income Fund (EIF) and Equititrust Priority Class
Income Fund (EPCIF). EIF is a mortgage fund whose primary
business is lending retail investors' pooled funds for property
development and taking mortgages over the property. The EPCIF is
currently dormant.
The board of directors of Equititrust Limited (as trustee of the
Equititrust Income Fund) on Feb. 15, 2012, appointed Richard
Albarran, Blair Pleash and Glen Oldham of Hall Chadwick Chartered
Accountants as Voluntary Administrators. On Feb. 16, 2012,
Gregory Moloney and William Colwell of Ferrier Hodgson (Qld) were
appointed as receivers and managers of Equititrust by a secured
creditor.
In the Supreme Court of Queensland on Nov. 21, 2011, orders were
made to wind up EIF and EPCIF, following an application filed by
Equititrust. The Court appointed David Whyte of BDO to take
responsibility for ensuring that EIF and EPCIF were wound up in
accordance with their constitutions. The Court also appointed
Mr. Whyte as receiver of the property of EIF and EPCIF. A
further application by Equititrust Ltd to appoint a temporary
responsible entity (RE) to EIF and EPCIF was unsuccessful.
Therefore Equititrust Ltd remains as the RE of those funds.
On May 10, 2012, on the application of the Australian Securities
& Investment Commission, the Supreme Court of Queensland ordered
that the proceedings be dismissed. This followed the appointment
of Messrs. Albarran, Pleash and Oldham as liquidators of
Equititrust Ltd on April 20, 2012.
About 1,400 investors lost their life savings in the collapse of
the business. The merchant bank at one time controlled investor
funds totalling AUD550 million, according to goldcoast.com.au.
OCTAVIAR LIMITED: Liquidators Rack Up AUD44.73 Million in Fees
--------------------------------------------------------------
Lisa Allen at The Australian cites a Ferrier Hodgson report in
relaying that liquidators and lawyers associated with collapsed
Gold Coast property and financial services group MFS Limited --
now known as Octaviar Limited -- have collected AUD44.733 million
in fees. The fees comprise of millions of dollars in legal fees;
AUD1.53 million in disbursements; and a further AUD308,012 for
media consultancy services, the report notes.
According to The Australian, the confidential summary of costs,
as prepared by Ferrier Hodgson, reveals that MFS liquidator
Bentleys collected AUD15.69 million plus expenses since its
appointment in September 2009, while lawyers Henry Davis York
have reaped more than AUD20 million in fees even though the two
central pieces of MFS litigation involving KPMG and the Fortress
Liquidation are continuing.
Ferrier Hodgson liquidator Will Colwell said in a letter to Bill
Fletcher of Bentleys, as obtained by The Australian, that he is
concerned by the "significant levels of costs incurred."
"These levels of costs are of serious concern . . . to the public
trustee himself and to the noteholders he represents," The
Australian quoted Mr. Colwell as saying. "As discussed, after
AUD44 million and three years, the (MFS creditors) committee is
none the wiser as to whether both (legal) actions should be
proceeded with."
The Australian points out that the legal actions relate to a
class action against KPMG, auditor of the MFS compliance plan,
and also to New York investment house Fortress, which had almost
AUD190 million worth of its Australian assets frozen after a
complaint by the MFS liquidators.
The Australian relates that the Supreme Court of Queensland ruled
in favor of the MFS liquidators, who argued that Fortress had
received preferential payments from MFS while it was insolvent.
But Fortress recently failed in a bid to have the freezing order
thrown out in the NSW Supreme Court, arguing it had been
"prejudiced" by the terms of the liquidators' lawsuit.
In his November 22 letter to Bentleys, The Australian says,
Mr. Colwell demanded a full cost-benefit analysis to pursue the
KPMG and Fortress claims, adding that "going forward, the (MFS
creditors) committee, needs to have a further discussion about
reining in costs, and ensuring creditors are getting value for
money, as the costs to date have been significant". The
creditors committee should receive a "detailed fee budget on a
three-month rolling basis with a very specific scope of work."
"Alternatively, the committee could consider fixed fee caps for
some or all of your future work . . . at the moment, all the work
you are seeking to be paid for is effectively open-ended."
About Octaviar Limited
Australian-based Octaviar Limited, formerly known as MFS Limited,
operated as an investment management business with a portfolio of
businesses and assets.
* * *
As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 15, 2008, Octaviar Limited appointed John Greig and
Nicholas Harwood of Deloitte as Voluntary Administrators. The
directors of three Octaviar subsidiaries, Octaviar Financial
Services Pty Ltd, Octaviar Investment Notes Limited and Octaviar
Investment Bonds Limited, also appointed Messrs. Greig and
Harwood as Voluntary Administrators. Fortress Credit Corporation
(Australia) II Pty Ltd., one of Octaviar Limited's major
creditors, also appointed Stephen James Parbery and Anthony
Milton Sims of PPB Advisory as receivers and managers for
Octaviar.
In December 2008, Octaviar's creditors voted for a deed of
company arrangement over two entities in the Octaviar group,
Octaviar Limited, and Octaviar Administration Pty Limited. The
three other companies in the group were subsequently wound up.
The TCR-AP reported on Aug. 4, 2009, that the Supreme Court of
Queensland placed Octaviar Ltd into liquidation. Justice
Philip McMurdo terminated a deed of company arrangement that has
been in place since December 2008, naming company administrators
John Greig and Nick Harwood at Deloitte, as provisional
liquidators.
Administrators and liquidators Greig and Harwood at Deloitte were
then replaced by Bentleys Corporate Recovery under court order.
According to The Age, creditors are yet to recover about
AUD2.5 billion from the Group, which was found to have
AUD1 billion in intercompany loans.
URBAN CONSTRUCT: 2 Units in Administration Over Contract Breach
---------------------------------------------------------------
Adelaide Now reports that two subsidiaries of embattled property
developer Urban Construct fell into administration in October
after being ordered to pay damages of more than AUD4.7 million
for breaching contracts to buy two properties in Glenelg, South
Australia.
The report notes that companies controlled by directors of Urban
Construct are facing losses of more than AUD6 million because of
a failed apartment development in Glenelg.
College Street, an Urban Construct subsidiary, has gone into
liquidation with debts of more than AUD3.3 million, Adelaide Now
relays. Meanwhile, the fate of another subsidiary, Commercial
and Residential Developments (SA), who is headed by Urban
Construct directors James Rice, David Rice and Todd Brown, will
be determined this month, the report cites.
Ian Lock -- ilock@slp.net.au -- and John Sheahan --
jsheahan@slp.net.au -- of Sheahan Lock Partners have been
appointed liquidators of College Street, which owes major
creditor Highfield Property Investments almost AUD2.9 million,
the report discloses.
Adelaide Now relates that Mr. Lock said without legal action,
recoupment of debts from College Street would be negligible.
That includes a AUD448,771 intercompany loan from Urban
Construct, the report relays.
"My understanding is that the prospect of creditors receiving a
meaningful return is dependent on the identification and
successful prosecution of causes of action," the report quotes
Mr. Lock as saying. "Let's just say it's something we're going
to take a very close look at."
Creditors of Commercial and Residential, a company with common
directorship and shareholders to Urban Construct, will meet on
December 20 to vote on a deed of company arrangement proposal put
forward by the directors of the company, Adelaide Now reports.
Adelaide Now cites that Commercial and Residential owes creditors
more than AUD11 million, including almost AUD900,000 to Urban
Construct and almost AUD5 million to its subsidiary C&R Project
Marketing (SA).
Anthony Phillips -- anthony@heardphillips.com.au -- from Heard
Phillips remains as administrator of Commercial and Residential,
despite being challenged for the role at the first meeting of
creditors.
* Fitch Analysts Discuss Outlook For Australian Resources Sector
----------------------------------------------------------------
Matt Jamieson spoke with Andrew Colquhoun in Fitch's Asian
sovereign rating team, and Vicky Melbourne, Fitch's commodity
analyst based in Sydney, about the outlook for the Australian
resources sector. Andrew and Vicky commented that Australia's
resources sector is likely to enter a new phase based on
sustainable volume growth, and that a high AUD/USD exchange rate
is likely to persist with potentially negative implications for
the non-resource economy. In this context, Australia's large
miners are likely to benefit from ongoing growth in commodity
exports to China, notwithstanding lower commodity prices. Matt
is Head of APAC Research in Fitch's Corporate Ratings Group.
Matt: Back in August 2012, Australia's Resources and Energy
Minister made a comment to the effect that Australia's resources
boom is over. Does Fitch agree with this view?
Vicky: No, we wouldn't subscribe to such a simplified view.
Rather we believe the sector is entering a new and, perhaps, more
sustainable growth phase focused on volumes, as opposed to the
previous period of growth and investment based on high commodity
prices. At the same time we believe that commodity prices are
unlikely to return to previous high levels, and with mining cost
inflation remaining stubbornly high, this may force the exit or
consolidation of those miners with high-cost structures. This
will result in a lower level of investment growth in the mining
sector over the medium-to long-term, and related industries will
be negatively impacted.
However, at least for the short-term, absolute investment levels
are still growing. According to the Australian Bureau of
Statistics's September capex survey, nominal spend in mining for
2012-13 is expected to increase 17.1% to AUD109bn which is only
3.5% lower than their estimate at the start of the year.
Matt: What will be impact of lower commodity prices and lower
investment over the medium-to long-term on the Australian mining
sector, and particularly for the larger players rated by Fitch?
Vicky: For the larger and more cost-efficient players, such as
BHP Billiton Limited/Plc (BHP; 'A+'/Stable) and Rio Tinto
Limited/Plc ( 'A-'/Stable), what they may lose in price, they are
likely to make up for in terms of volume, particularly given
their expansion over the past two to three years. Although these
large miners have announced some curtailment to their expansion
in light of China's slowdown, the potential for volume growth
remains. Their free cash flow generation is also likely to
increase as a result of a containment in operating costs and
lower capex. Fortescue Metals Group Limited (Fortescue;
'BB+'/Negative), on the other hand, will benefit from a step-
change in production volume and from becoming a lower cost iron
ore producer from 2013 as its new Solomon Hub comes on line.
Matt: To what extent will the Australian economy be negatively
impacted by the miners' likely reduction in investments and
capital expenditure?
Vicky: Not substantially. At present, there are 87 mining
industry projects committed and/or underway worth AUD268bn, with
the majority of these in liquefied natural gas, and the balance
in iron ore and coal. This represents a significant pipeline of
investments despite the capex reductions announced by several
entities. The bulk of this spending will peak in 2014 because of
long lead times on projects, which means they will continue to
provide a meaningful contribution to the Australian economy for
at least two more years.
The main reduction in planned investments is related to
uncommitted/not yet approved projects such as BHP's Olympic Dam,
which now look unattractive given the current stage of the
commodity cycle and the greater focus on capital allocations.
Matt: Andrew, what's your perspective on this? With China's
economic growth slowing, does it not follow that Australia's
resources sector is likely to face weakening demand?
Andrew: To the contrary, we think demand for Australia's
resources from China will remain robust, although it is unlikely
to grow as strongly in the next 10 years as it did in the
previous decade. The chance of a Chinese "hard landing" in the
near term appears to be diminishing and is certainly not Fitch's
base case. Fitch still expects China to grow in the 7%-8% range
over the next two to three years, albeit slower than the 9%-10%
level achieved over 2009 to 2011. Importantly the size of China's
economy is now around 40% greater than it was in 2008.
Under new leadership China will face the challenge of rebalancing
its economy away from investment towards consumption. Even if
the rate of China's growth in investment is not as strong as was
the case historically, nonetheless a significant amount of
investment still remains to occur. Its urbanisation rate is well
below that of advanced countries, meaning that there is still a
substantial amount of buildings and infrastructure to be built.
Matt: So Fitch actually expects demand for Australian resources
to continue growing over the next two to three years?
Andrew: Yes. Chinese demand for key commodities including iron
ore and coal will continue to grow in an absolute sense over the
next two to three years, supported by government programmes to
expand infrastructure and social housing construction. So while
there may be fluctuations in China's demand for Australian
resources in the short term, demand should continue growing over
the long term.
Moreover, there is the rest of emerging Asia to consider. For
example India took 6% of Australia's exports in 2011, well below
China's 27% but up from 2% in 2001, and India is at an earlier
stage of development than China.
Matt: Despite a lot of negative news on China's slowdown, and
declines in commodity prices, the AUD/USD exchange rate has not
significantly depreciated. What's behind this?
Andrew: It is partly a function of the continued strength in
Australia's terms of trade due to still high commodity prices,
and partly owing to the AUD gaining "reserve currency" status to
some extent as global investors seek to diversify out of USD and
EUR assets. The Australian sovereign is rated 'AAA' and the AUD
is now the world's fifth-most traded currency.
Matt: These factors suggest that the AUD effective exchange rate
could remain high even if commodity prices weaken, particularly
if overall demand for Australia's resources remains strong. How
will the rest of Australia's economy be able to cope?
Andrew: It will be a big challenge, but non-resource sectors will
have to remain competitive by strengthening productivity to
compete globally. The alternative, if companies cannot increase
their productivity, is higher unemployment. The most likely
outcome is probably a bit of both, depending on the particular
industry and on government structural policies.
Matt: Vicky, a final question then. In light of Andrew's
comments, outside of the resources industry what corporate
sectors in Australia are most at risk to a higher effective
exchange rate?
Vicky: The impact on the non-resource economy is significant,
particularly on Australia's tourism industry, both local and
inbound, on the country's export-reliant agriculture sector, and
on its retail and manufacturing sectors. A higher cost base
attributed to the strong AUD continues to negatively impact
Australia's auto sector - and that is despite government
subsidies. The Australian Industry Group's measure of
manufacturing activity showed a ninth straight month of
contraction in November as firms complained of soft demand,
higher energy costs and a strong Australian dollar. Moreover,
with most key industries under pressure, the negative spillover
facing Australia's small-and-medium sized enterprises is
significant.
Australia's retail sector and discretionary spending feed off the
tourism industry, particularly in states like Queensland. The
retail sector is already struggling from the proliferation of
online shopping, and hence additional pressure due to a high
exchange rate only compounds their difficulties. A high exchange
rate also makes it more attractive for the larger supermarkets to
source their own-brand foods and products from overseas as
opposed to local producers, as they look to deliver on their
"everyday low prices" campaigns. Finally, a weak retail sector
has a knock-on effect on the commercial property sector.
=========
C H I N A
=========
HYVA GLOBAL: S&P Cuts Corp. Credit Rating to B; Outlook Negative
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on Netherlands-based supplier of
hydraulic cylinders Hyva Global B.V. to 'B' from 'B+'. The
outlook is negative. "At the same time, we lowered our issue
rating on the company's US$375 million senior unsecured notes due
2016 to 'B' from 'B+'. We also lowered our long-term Greater
China regional scale rating on Hyva to 'cnB+' from 'cnBB-'," S&P
said.
"We downgraded Hyva because we expect that the company's already
weak performance may continue to deteriorate over the next 12
months," said Standard & Poor's credit analyst Joe Poon. "Hyva's
profitability and cash flow protection measures are likely to
remain sensitive to volatile raw material prices, low visibility
over a global economic recovery, and slumping sales in emerging
markets, particularly China. Hyva's performance in the third
quarter of 2012 was much weaker than our expectation, with
revenues declining 25% year over year and EBITDA falling 29%."
Hyva's business risk profile remains "weak." "We expect the heavy
duty truck (HDT) market to remain sluggish over the next few
quarters. The company's profitability is likely to stay under
pressure if the current weakness in the market is prolonged.
Hyva's good brand recognition and established sales and
distribution networks partly offset this factor. The company's
low-cost production base in emerging markets offers additional
support."
"We have lowered our assessment of Hyva's financial risk profile
to 'highly leveraged' from 'aggressive,' as defined in our
criteria. In our revised financial projection, excluding
preferred shares, we forecast the total-debt-to-EBITDA ratio at
or above 5.5x over the next 12 months," S&P said.
"The negative outlook reflects the global economic uncertainty
over the next few quarters and our expectation that Hyva's credit
measures may weaken further. In addition, the company's potential
breach of the financial covenants in its revolving credit
facility could negatively affect its working capital and weaken
its liquidity position," S&P said.
"We could lower the rating if: (1) Hyva's profitability
deteriorates further, causing its total-debt-to-EBITDA ratio to
exceed 6.0x on a sustained basis; or (2) the company breaches the
financial covenants and it no longer gets the bank's support,
resulting in a lack of financial flexibility for working capital.
We could also downgrade Hyva if Hyva engages in major debt-funded
acquisitions or its shareholders aggressively extract value from
the company," S&P said.
"We could revise the outlook to stable if the HDT market starts
to recover meaningfully and Hyva significantly improves its
profitability and cash flow protection measures such that its
total-debt-to-EBITDA ratio falls below 5x on a consistent basis,"
S&P said.
* CHINA: Moody's Reports on Information Challenges of RLGs
----------------------------------------------------------
Moody's Investors Service says that the level of disclosure of
financial data by Chinese regional and local governments (RLGs)
presents various challenges in regard to analyzing the credit
profiles of such entities, but the central government's long-term
strategy to improve governance practices and oversight could lead
to improved disclosure over time.
However, despite the challenges, the provision of credit
assessments on China's RLGs -- through the application of Moody's
global ratings methodology -- is still possible with the
information at hand, and importantly through ongoing dialogue
with a particular RLG's officials.
Moody's announced its conclusions in a new report looking at what
is now available from these entities and offers comparative
examples from RLGs in other countries, including Australia,
Canada, Japan and Korea.
The report is titled: "Evaluating the Creditworthiness of Chinese
Provinces and Cities: Managing Uncertainties and Opportunities
for Enhancing Transparency".
For RLGs in China, the Moody's report says that there are three
credit factors where, in some cases, it finds information
limitations that make the credit assessment process more
difficult, but where it also sees opportunities for enhancing
transparency to support creditworthiness: financial performance;
debt profiles; and governance and management.
Moody's view is that, as in other countries, the eventual
development of a borrowing model which allows the more
creditworthy RLGs to borrow directly from the markets or banks
could help promote a much more transparent system of data
availability, and impose a level of scrutiny and market
discipline that could be expected to ultimately support the
credit rating process.
Moody's also believes that the need for credit estimates on RLGs
in China is becoming increasingly important as government-related
issuers (GRIs) or state-owned enterprises (SOEs) turn more and
more to the bond markets for financing. Over the longer term, as
local bond markets develop and RLGs are allowed to directly
access the capital markets, the demand for ratings will likely
grow.
In its analysis of credit quality, in addition to data, Moody's
also considers that with China, and with other countries,
dialogue is an invaluable step, particularly where local
governments do not publish detailed forecasts. Accordingly,
Moody's is committed to developing this same degree of
interaction with Chinese RLGs to help ensure the accuracy of its
credit estimates.
Moody's already assesses that the credit quality of RLGs in China
is expected to vary widely, given differences in their economic
profiles, levels of strategic importance to the central
government, fiscal policies, planning strategies, and exposures
to the activities of related companies.
This report follows on from Moody's July comment titled
"Assessing the Creditworthiness of Chinese Regional and Local
Governments".
================
H O N G K O N G
================
BOSTAR LIMITED: Creditors' Proofs of Debt Due Jan. 8
----------------------------------------------------
Creditors of Bostar Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by Jan. 8,
2013, to be included in the company's dividend distribution.
The company commenced wind-up proceedings on Dec. 5, 2012.
The company's liquidator is:
Wong Yee Sui Andrew
Room 1601, Wing On Centre
111 Connaught Road Central
Hong Kong
CAMIS METAL: Creditors' Meeting Set for Dec. 14
-----------------------------------------------
Creditors of Camis Metal Manufacturing Limited will hold their
meeting on Dec. 14, 2012, at 2:00 p.m., for the purposes provided
for in Sections 228A, 242, 243, 244 and 255A of the Companies
Ordinance.
The meeting will be held at Thornton Room, 3/F, South Tower, 41
Salisbury Road, YMCA of Hong Kong. Tsimshatsui, Kowloon, in
Hong Kong.
CANTON PROPERTY: Annual Meetings Set for Dec. 31
------------------------------------------------
Members and creditors of Canton Property Investment (Hong Kong)
Limited will hold their annual meetings on Dec. 31, 2012 at
12:00 p.m., and 4:00 p.m., respectively at Suite 1710, 17/F, 625
King's Road, North Point in Hong Kong.
At the meeting, Jackson Ip, the company's liquidator, will give a
report on the company's wind-up proceedings and property
disposal.
CHINA RAILWAY: Members' and Creditors Meetings Set for Dec. 31
--------------------------------------------------------------
Members and creditors of China Railway Mall & Properties
Development Limited will hold their annual meetings on Dec. 31,
2012 at 10:00 a.m ., and 2:00 p.m., respectively at Suite 1710,
17/F., 625 King's Road, North Point in Hong Kong.
At the meeting, Jackson Ip, the company's liquidator, will give a
report on the company's wind-up proceedings and property
disposal.
CHINESE INVESTMENT: Leung and Yuen Step Down as Liquidators
---------------------------------------------------------
Ruby Mun Yee Leung and Yuen Tsz Chun Frank stepped down as
liquidators of Chinese Investment Limited on Nov. 30, 2012.
CHINESE MERCHANTS: Leung and Yuen Step Down as Liquidators
----------------------------------------------------------
Ruby Mun Yee Leung and Yuen Tsz Chun Frank stepped down as
liquidators of Chinese Merchants Investment Limited on Nov. 30,
2012.
CITITEAM DEVELOPMENT: Commences Wind-Up Proceedings
---------------------------------------------------
Shareholders of Cititeam Development Limited, on Dec. 6, 2012,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidator is:
Lee King Yue
72-76/F, Two International Finance Centre
8 Finance Street
Central, Hong Kong
DYNAMIC DEVELOPMENT: Creditors' Proofs of Debt Due Jan. 7
---------------------------------------------------------
Creditors of Dynamic Development Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Jan. 7, 2013, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Nov. 28, 2012.
The company's liquidator is:
Leung Mei Fan
Room 1005, Allied Kajima Building
138 Gloucester Road
Wanchai, Hong Kong
EVER GROWTH: Leung and Yuen Step Down as Liquidators
----------------------------------------------------
Ruby Mun Yee Leung and Yuen Tsz Chun Frank stepped down as
liquidators of Chinese Investment Limited on Nov. 30, 2012.
GLOBAL SUCCESS: Members' and Creditors' Meetings Set for Dec. 31
----------------------------------------------------------------
Members and creditors of Global Success Asia Group Limited will
hold their annual meetings on Dec. 31, 2012 at 11:00 a.m., and
3:00 p.m., respectively at the Suite 1710, 17/F., 625 King's
Road, North Point in Hong Kong.
At the meeting, Jackson Ip, the company's liquidator, will give a
report on the company's wind-up proceedings and property
disposal.
GOLDEN CHOICE: Members' and Creditors Meetings Set for Dec. 31
--------------------------------------------------------------
Members and creditors of Golden Choice Investment (Group) Limited
will hold their annual meetings on Dec. 31, 2012 at 11:30 a.m.,
and 3:30 p.m., respectively at Suite 1710, 17/F., at 625 King's
Road, North Point in Hong Kong.
At the meeting, Jackson Ip, the company's liquidator, will give a
report on the company's wind-up proceedings and property
disposal.
GUANDONG INTERNATIONAL: Annual Meetings Set for Jan. 11
-------------------------------------------------------
Members and creditors of Guandong International Trust &
Investment Corporation Hong Kong Hong Kong (Holdings) Limited
will hold their annual meetings on Jan. 11, 2013, at 9:00 a.m.,
and 9:30 a.m., respectively at 8/F, Prince's Building, at 10
Chater Road, Central, in Hong Kong.
At the meeting, Jacky CW Muk and Gabriel CK Tam, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
HENDERSON CHINA: Commences Wind-Up Proceedings
----------------------------------------------
Sole members of Henderson China Property Finance Limited, on
Dec. 6, 2012, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidator is:
Lee King Yue
72-76/F, Two International Finance Centre
8 Finance Street
Central, Hong Kong
INSPECTORATE HK: Members' Final Meeting Set for Jan. 8
------------------------------------------------------
Members of Inspectorate Hong Kong Limited will hold their final
general meeting on Jan. 8, 2013, at 11:00 a.m., at 29/F, Caroline
Centre, Lee Gardens Two, at 28 Yun Ping Road, in Hong Kong.
At the meeting, Wong Poh Weng and Wong Tak Man Stephen, the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.
LECO WATCH: Creditors' Meeting Set for Dec. 14
----------------------------------------------
Creditors of Leco Watch Case Manufactory Limited will hold their
meeting on Dec. 14, 2012, at 3:00 p.m., for the purposes provided
for in Section 228A, 242, 243, 244 and 255A of the Companies
Ordinance.
The meeting will be held at Thornton Room, 3/F., South Tower, 41
Salisbury Road, YMCA of Hong Kong, Tsimshatsui, Kowloon in
Hong Kong.
=========
I N D I A
=========
ANIRUDH TEXCHEM: ICRA Reaffirms 'B+' Rating on INR9.45cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]B+' to INR9.45
crore1 fund based facilities and term loans of Anirudh Texchem
Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund based limits- 5.15 [ICRA]B+ reaffirmed
Cash Credit/Standby
Line of Credit
Fund based limits- 4.30 [ICRA]B+ reaffirmed
Term Loans
The rating reaffirmation takes into account modest growth of 9%
in operating income of ATPL in FY12 over FY11 due to delay in
implementation of capacity expansion project (on account of late
supply of machinery). These developments are however offset by
effective working capital management by ATPL consequent to which
reliance on bank borrowings have remained moderate as well the
deferment in loan availment for above mentioned capacity
expansion project which helped reduce interest burden in FY12.
The rating continues to be constrained by the weak financial
profile of ATPL characterized by subdued debt coverage indicators
with net cash accruals vis-a-vis total debt (NCA/TD) of 8% and
TD/OPBDITA of around 6 times as on March 31, 2012. While ATPL
forayed into high margin men's accessories segment in FY12
through the sale of neckties, its contribution to operating
revenues remained small (less than one percent of FY12 operating
revenues), with majority of revenues continued to be accounted
for by (low margin) trading of finished fabrics. The rating is
also constrained by the competitive and fragmented nature of the
textile industry which limits the pricing power of the company
and has resulted in thin margins in the past.
The rating however draws comfort from the experience of the
promoters in the textile industry and favorable location of the
weaving facilities which provides easy accessibility to raw
materials and processing houses. While ICRA takes note of
implementation of the debt funded capacity expansion project in
October 2012, the ability of the company to utilize the same
remains to be seen, in absence of which the financial profile
might weaken further. The ability of the company to improve its
scale of operations, utilize the enhanced capacity as well as its
performance in the high margin segment which would help reduce
low margin trading activities and improve the financial profile
would be the key rating sensitivities going forward.
Anirudh Texchem Private Limited is engaged into manufacturing and
trading of fabrics - mainly check uniform fabrics for school
wear, hotel wear, hospital uniforms etc and men's accessories.
The fabrics are manufactured in various blends like Polyester
Viscose, 100% polyester, Poly cotton, Polywool etc. Incorporated
in 2005, ATPL is managed by Mr. Manoj Kamalia, a third generation
entrepreneur and became operational in January 2007.
The company's facilities are located at RIICO Growth Center at
Bhilwara. It has 32 Sulzer looms (16 single width and 4 double
width) with a current installed capacity of around 200,000 metres
per month. The company has recently ventured into men's
accessories segment with the supply of Zipper (ready knot) ties
under the brand name 'Cakewalk.' Going forward, the company will
also be entering into other segments of men's accessories like
Cufflinks, Handkerchiefs, scarves etc.
BOHRA EXPORTS: ICRA Assigns '[ICRA]BB-' Rating to INR150cr Loans
----------------------------------------------------------------
ICRA has assigned '[ICRA]BB-' and '[ICRA]A4' rating to the
existing bank facility of INR100.00 Crore and INR50.00 Crore
proposed bank facility of Bohra Exports Private Limited. The
outlook on the long-term rating is Stable.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based/Non-Fund 100.00 [ICRA]BB-(Stable)/
Based Limit [ICRA]A4 assigned
Proposed Limits 50.00 [ICRA]BB- (Stable)/
[ICRA]A4 assigned
The ratings are constrained by small scale of operations, weak
financial profile characterized by low profitability margins and
weak coverage indicators, vulnerability of profitability to
fluctuating foreign exchange rate and steel prices. The ratings
also take into account the highly competitive nature of the
industry and high cyclicality and environment regulatory risks
associated with the business of the company. Nonetheless, the
ratings draw comfort from the experience of the promoters of
almost two decades in the ship breaking business and the
diversified customer base that mitigates the concentration risk.
Bohra Exports Private Limited undertakes ship breaking activities
in Alang, Bhavnagar (Gujarat). BEPL is a closely held company
promoted in 1986 by Mr. Pratap Bohra for trading in commodities
and chemicals. In 1992, BEPL forayed into ship breaking and
recycling. The operations are carried out on a 3015 sq metre area
plot in Alang, Bhavnagar. The company has recycled more than 50
ships till date and has received ISO 9001, 14001 and 18001
certification for its ship breaking operations. Further the
company also trades in scrap generated by dismantling the
distressed assets bought from factories where operations are
discontinued due to closure of business.
GBJ HOTELS: ICRA Rates INR108cr Term Loans at '[ICRA]B+'
--------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to the INR108.00 crore term
loans of GBJ Hotels Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- --------- -------
LT Scale-Term Loans 108.00 [ICRA]B+ assigned
The rating reflects the company's experienced project management
team supported by reputed consultants CB Richard Ellis, India and
B.E. Billimoria and Company Limited, and the management tie-up
the hotel has with Radisson Hotels International Inc. for
operating the hotel under the "Radisson Blu Hotel" brand. The
rating also favorably takes into account the large infusion of
equity of INR45.00 crores (of a total project cost of INR187.00
crores) in the initial stages of the project (as of August 31,
2012), as against a limited loan draw down. The loan enjoys a
significantly high moratorium of 30 months from date of first
draw down, and ~10-12 months from date of commissioning the
project.
However with a project cost of INR187 crore (-Rs 1.4 crore per
room) and a debt:equity of 1.4 times as on 31st March, 2012, the
per room investment in the project is high, particularly in view
of the location and the ability of the location to command
premium average rooms rates (ARRs). While the long term viability
of the property is sound with limited competition, we expect the
high project cost to lead to a stretched breakeven period leading
to considerable requirements for loss funding. The promoter has
had limited experience in the business of constructing hotels.
However, a professional project management team with sound
experience has been engaged to work on the project. The Company
owns a 134 room single hotel located in Coimbatore, exposing the
company to event risks within the Coimbatore region. The project
construction is currently in its early stages which exposes the
project to time and cost overruns. The project is currently
running on a 3-4 month delay, although the management expects to
make up for it by employing multiple interior decorators to speed
up the project completion. With imports forming ~30% of the cost,
the project cost is exposed to volatility in exchange rates.
GBJ Hotels Limited was incorporated in 2008, by Mr. G.
Balasubramaniam, and is currently setting up its first hotel in
Coimbatore. Radisson Blu Hotel is to come up in 3.93 acres of
land in Avinashi road, at the heart of Coimbatore city, at ~ 5 km
from the Coimbatore Airport. The hotel under construction is
estimated to be around 2 lakh square feet with 134 rooms, a grand
banquet hall (of 10,000 square feet), Coffee shop, Speciality
restaurant, Health club, Swimming pool, Business centre, Meeting
halls, Gym, Club floor, etc. The property is expected to be
launched by October, 2013. GBJ Hotels Private Limited currently
does not have any operations.
HARSO STEELS: CRISIL Assigns 'CRISIL B+' Rating to INR150MM Loans
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Harso Steels Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 25 CRISIL B+/Stable (Assigned)
Bank Loan Facility
Cash Credit 125 CRISIL B+/Stable (Assigned)
Letter of Credit 50 CRISIL A4 (Assigned)
The ratings reflect the HSPL's weak financial risk profile,
marked by high gearing and weak debt protection metrics, large
working capital requirements, and small scale of operations in
the intensely competitive pipes industry. These rating weaknesses
are partially offset by the benefits that HSPL derives from its
promoters' extensive experience in the pipes industry.
Outlook: Stable
CRISIL believes that HSPL will benefit over the medium term from
its promoter's extensive experience in the pipes industry and
established relationship with its customers and suppliers. The
outlook may be revised to 'Positive' in case HSPL is able to
achieve significant increase in its scale of operations while
maintaining its profitability or improvement in working capital
management. Conversely, the outlook may be revised to 'Negative'
in case less-than-expected revenues, deterioration in its
operating margin or large, debt-funded capital expenditure
programme causes its debt protection metrics to weaken or further
stretch in working capital requirements leading to deterioration
of liquidity profile.
HSPL, incorporated in 1986 and promoted by the late Mr. Harbans
Lal Bansal, manufactures mild steel black pipes, steel structural
tubes, PVC (Poly Vinyl Chloride) pipes and PPR (Polypropylene
Random Co-polymer Pipe) fittings. HSPL is managed by Mr. Rakesh
Bansal (son of Mr. Harbans Lal Bansal).
HSPL reported a a net profit of INR2.18 million on net sales of
INR504.9 million for 2010-11, as against a net profit of
INR3.55 million on a net sales of INR630.4 million for 2009-10.
HSPL's provisional net sales for 2011-2012 are estimated at
INR468.6 million.
NORTH MALABAR: ICRA Assigns '[ICRA]B-' Rating to INR6.30cr Loan
---------------------------------------------------------------
ICRA has assigned long-term rating of '[ICRA]B-' to the INR6.30
crore1 term loan facilities of North Malabar Educational &
Charitable Trust. ICRA has also assigned a short-term rating of
'[ICRA]A4' to the INR0.50 crore fund based facilities of the
Trust.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loan facilities 6.30 [ICRA]B- assigned
Fund based facilities 0.50 [ICRA]A4 assigned
The assigned ratings consider the favorable outlook for higher
education in the country and the experience of the trustees in
the education sector. The ratings reflect the weak financial
indicators owing to nascent stage of operations and the small
scale of operations of the Trust which restricts financial
flexibility. The Trust's capital structure and coverage
indicators are stretched and is expected to remain at similar
levels over the medium term owing to the large debt funded
capital expenditure plans. The ratings also consider the capital
infusion required for timely servicing of the debt repayment
obligations in the initial year of operations. Intense
competition in the higher education sector exerts pressure on the
ability of the Trust to attract and retain experienced faculty.
North Malabar Educational & Charitable Trust is a public
charitable trust registered in 2008 at Payyanur, Kerala with the
objective of providing educational facilities. The Trust
established the engineering college "North Malabar Institute of
Technology" in the year 2012 offering five specializations namely
Mechanical Engineering, Electronics & Communication Engineering,
Civil Engineering, Electrical and Electronics Engineering and
Computer Science with sanctioned strength of 60 students each.
OM STEEL: CRISIL Assigns 'CRISIL BB-' Rating to INR50MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to
the bank facilities of Om Steel Traders Chennai Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 50 CRISIL BB-/Stable (Assigned)
Bank Loan Facility
Cash Credit 300 CRISIL BB-/Stable (Assigned)
Letter of Credit 100 CRISIL A4+ (Assigned)
The ratings reflect OSTCPL's established track record in the
steel trading business. This rating strength is partially offset
by OSTCPL's below-average financial risk profile, marked by high
Total Outside Liabilities to Tangible Networth (TOL/TNW) ratio
and the susceptibility of the company's operating margin to
volatility in steel prices and to intense competition in the
steel trading business.
Outlook: Stable
CRISIL believes that OSTCPL will continue to benefit over the
medium term from its established track record in the steel
trading business. The outlook may be revised to 'Positive' if the
company registers higher-than-expected increase in its revenues
and profitability, supported by improvement in its debt
protection metrics. Conversely, the outlook may be revised to
'Negative' if OSTCPL generates lower-than-expected accruals or
undertakes a significant debt-funded capital expenditure
programme, resulting in deterioration in its financial risk
profile.
About Om Steel
OSTCPL, established in 1980, trades in steel products such as
thermo-mechanically treated bars, flats, angles, channels,
sheets, and plates. The company's day-to-day operations are
managed by its managing director, Mr. S Devarajan.
OSTCPL reported a profit after tax (PAT) of INR7.99 million on
net sales of INR2.01 billion for 2011-12 (refers to financial
year, April 1 to March 31); the company reported a PAT of INR6.48
million on net sales of INR1.50 billion for 2010-11.
PATEL COTTON: ICRA Reaffirms '[ICRA]BB-' Rating on INR7.5cr Loan
----------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB-' rating for the INR7.50 crore
fund-based cash credit facility of Patel Cotton Industries. The
outlook on long-term rating is 'stable'.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit Limit 7.50 [ICRA]BB- (stable) reaffirmed
The rating continues to be constrained by the modest scale of
operation as well as weak financial profile of the firm as
reflected by low profitability on account of low value additive
nature of the cotton ginning business; and a highly leveraged
capital structure leading to weak coverage indicators. The rating
is further constrained by susceptibility of the cotton prices to
seasonality and regulatory risks which together with the highly
competitive industry environment further exert pressure on
margins. ICRA also notes that Patel Cotton Industries is a
partnership firm and any significant withdrawals from the capital
account would affect its net worth and thereby the gearing
levels. The rating, however, positively considers the long
experience of the promoters in the cotton ginning and pressing
business and favorable location of the firm which gives it easy
access to raw cotton.
Established in 2006, Patet Cotton Industries is engaged in
ginning and pressing operations. The business is owned and
managed by Mr. Rameshchandra Patel, Mr. Girish Patel, Mr. Rohit
Patel, Mr. Jagdish Patel and Pankaj Patel. The firm's
manufacturing facility is located in Vijapur, Gujarat. The firm
has 24 ginning machines and 1 pressing machine having a
cumulative processing capacity of 100 TPD of raw cotton.
Recent Results
For the year ended March 31, 2012, the firm reported an operating
income of INR32.59 crore with profit after tax (PAT) of INR0.31
crore against operating income of INR29.45 crore with profit
after tax of INR0.29 crore.
RAM SAROOP: CRISIL Hikes Rating on INR200MM Loan to 'CRISIL[BB-]'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Ram
Saroop Deepak Kumar to 'CRISIL BB-/Stable' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
The upgrade reflects CRISIL belief that RDK will maintain its
significantly improved financial risk profile, marked by an
improved gearing and efficient working capital management. The
gearing of the company has improved on account of increased net
worth of INR48 million as on March 31, 2012 from INR37 million as
on March 31, 2012. This improvement in net worth was primarily on
account of infusion of INR6.3 million of equity during 2011-12
(refers to financial year, April 1 to March 31) and moderate
accretion to reserves. Furthermore, the company's debt level has
also reduced due to better working capital management as a result
of faster realization from customers and lower inventory levels.
The debtor has, for 2011-12, stood at around 48 days as against
55 to 75 days in the past, leading to reduced bank borrowing for
meeting working capital requirements. The total outstanding debt
stood at INR117 million as on March 31, 2012, against INR135
million as on March 31, 2011. The liquidity profile is also
benefitted by support received from its promoters in the form of
unsecured loan for meeting a part of its working capital
requirements.
CRISIL ratings on the bank loan facilities of RDK continue to
reflect RDK's longstanding presence in the agricultural
commodities trading industry and moderate risk management
policies. These rating strengths are partially offset by RDK's
below-average financial risk profile and low operating margin
because of the trading nature of the firm's operations.
For arriving at its rating, CRISIL has treated unsecured loans
extended by RDK's promoters of INR29.4 million outstanding as on
March 31, 2012 to the company as neither debt nor equity; any
interest thereof on these loans would be retained in the
business. Moreover, RDK has provided an undertaking for non-
withdrawal of these loans.
Outlook: Stable
CRISIL believes that RDK will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of a significant
improvement in the firm's capital structure and liquidity, most
likely driven by more-than-expected cash accruals or large, fresh
equity infusion Conversely, the outlook may be revised to
'Negative' in case RDK reports deterioration in its profitability
and pressure on its revenues, or larger-than-expected working
capital borrowings.
About Ram Saroop
RDK was set up in 1999 as a proprietorship firm by Mr. Deepak
Kumar in Narela Mandi (New Delhi). The firm trades in basmati
rice and paddy, and holds a license from Agricultural Product
Market Commission (APMC) for the same. Mr. Kumar, along with his
father and two brothers, has been trading in agricultural
commodities since 1970. All the members of the family
individually hold licenses of APMC and operate across different
mandis in Uttar Pradesh.
RDK reported a profit before tax (PBT) of INR6.0 million on net
sales of INR1117 million for 2011-12; the company reported a PBT
of INR5.2 million on net sales of INR1020 million for 2011-12.
ROADLINES CORP: CRISIL Assigns 'C' Rating to INR98-Mil. Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL C' rating to the long-term bank
loan facility of Roadlines Corporation Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 98 CRISIL C (Assigned)
The rating reflects the instances of delay by RCPL in servicing
its vehicle loans (not rated by CRISIL); the delays have been
caused by RCPL's weak liquidity. The company has weak liquidity
on account of its large working capital requirements. The ratings
also factor in RCPL's weak financial profile. These rating
weaknesses are partially offset by the benefits that the company
derives from its promoters' extensive experience in the road
freight transportation business.
RCPL, incorporated in 1994, provides road freight transportation
services; it caters mainly to the power and capital goods
industry. The company's day-to-day operations are managed by Mr.
Yatendra Kumar Arya and Yogendra Kumar Arya.
R V PLASTIC: CRISIL Cuts Rating on INR110MM Loans to 'CRISIL B'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of R V
Plastic Ltd to 'CRISIL B/Stable/CRISIL A4' from 'CRISIL
BB/Stable/A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL B/Stable (Downgraded
from 'CRISIL BB/Stable')
Channel Financing 80 CRISIL B/Stable(Downgraded
from 'CRISIL BB/Stable')
Bank Guarantee 20 CRISIL A4 (Downgraded from
'CRISIL A4+')
The rating downgrade reflects deterioration in RVPL's financial
risk profile, driven by a stretch in its debtors. RVPL's debtors
increased to 94 days at the end of 2011-12 (refers to financial
year, April 1 to March 31) from 58 days a year earlier. The
debtors increased further to an estimated 110 days as on
September 30, 2012. The sizeable working capital debt contracted
to fund the increasing debtors, coupled with RVPL's extremely
small net worth has led to significant deterioration in the
company's capital structure. RVPL's total outside liabilities to
tangible net worth ratio has deteriorated to 4.89 times as on
March 31, 2012, from 1.35 times as on March 31, 2011. CRISIL
believes that the company's financial risk profile will remain
weak over the near term, driven by its stretched debtors. An
improvement in RVPL's debtor level will remain a key rating
sensitivity factor.
The ratings reflect RVPL's below-average financial risk profile,
marked by a small net worth and low profitability, small scale of
operations, and large working capital requirements. These rating
weaknesses are partially offset by the extensive experience of
RVPL's promoters in the polymers industry, and its low inventory
risks.
Outlook: Stable
CRISIL believes that RVPL's financial risk profile will remain
constrained over the near term driven by its stretched debtors.
The outlook may be revised to 'Positive' in case RVPL improves
its receivables management and strengthens its capital structure.
Conversely, the outlook may be revised to 'Negative' if the
company's financial risk profile deteriorates further because of
a continued stretch in its debtors.
About R V Plastic
RVPL was established as a proprietorship firm in 1978 by Mr.
Kailash Chand Goyal. In 1991, it was reconstituted as a closely
held public limited company, and was engaged in trading of
polymers. In May 2010, it became a del credere agent of Indian
Oil Corporation Ltd (IOCL). RVPL is the sole del credere
agent/consignment stockist of IOCL in Haryana for polymers, such
as linear low-density polyethylene, high-density polyethylene,
and poly propylene. RVPL also trades in imported polymers, such
as ethylene vinyl acetate and low-density polyethylene.
RVPL reported an profit after tax (PAT) of INR1.2 million on net
sales of INR326.5 million for 2011-12, as against a PAT of INR0.7
million on net sales of INR132.3 million for 2010-11.
SHREE KRISHNA: ICRA Hikes Rating on INR71cr Loans to 'C'
--------------------------------------------------------
ICRA has upgraded the long term rating assigned to INR66 crore
fund based limits of Shree Krishna Paper Mills & Industries
Limited from '[ICRA]D' to '[ICRA] C.' ICRA has also upgraded the
long term rating assigned to its INR5.00 crore Cumulative
Redeemable Preference Shares from "[ICRA] D" to "[ICRA] C". ICRA
has also upgraded the rating assigned to its INR14.00 crore non
fund based short term bank facilities from "[ICRA] D" to
"[ICRA]A4".
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long Term Fund 66.00 [ICRA]C/Upgraded
Based Limits
Cumulative Redeemable 5.00 [ICRA]C/Upgraded
Preference Shares
ShortTerm Non Fund 14.00 [ICRA]A4/Upgraded
based Limits
The rating upgrade takes into consideration the improved
operational performance of the company as characterized by
increased levels of capacity utilization of -81% in FY 2012 and -
-84% in H1 FY 2013 as against a capacity utilisation of -65% in
FY 2011. The increased capacity utilisation has resulted in
amortization of fixed expenses over a large production base
leading to generation of positive OPBDITA of Rs.14.43crore, PAT
of INR0.43 crore and net cash accruals (NCA) of INR5.90 crore for
the year ending March 31, 2012 as against a net loss of 7.14
crore and negative NCA of INR2.06 crore for the year ending
March 31, 2011. With improved financial performance, the debt
servicing track record of the company has been satisfactory over
the last few months with timely servicing of debt. However, the
rating continues to be constrained by the history of the debt
reschedulement; twice in past three years; latest being in August
2009, whereby the company underwent a Corporate Debt
Restructuring (CDR) exercise in the backdrop of economic slowdown
resulting in weak operational and financial performance. The
rating also remains constrained on account of negative net-worth
position on account of high level of accumulated losses, which
were largely funded through debt resulting in weak capital
structure. As a result, despite improvement in operational
profile, the financial profile continues to remain weak as
reflected in Total Debt(TD)/OPBDITA of ~5.02X, NCA/TD of ~8%,
interest coverage of 1.81Xas on March, 2012.
Going forward, the ability to the company to sustain its improved
operational performance by maintaining high capacity utilization
of its manufacturing plants on a consistent basis, improve
financial performance and timely servicing of its debt
obligations will remain key rating sensitivities.
Shree Krishna Paper Mills & Industries) was incorporated in
September 1972 by Pasari Group. The company has a coated paper
manufacturing unit at Bahadurgarh, Haryana, which was acquired
from Bansal Paper Mills in 1974. During 2005-06, the company also
commissioned a Greenfield paper plant of 30000 MTPA to
manufacture Printing and Writing Paper (PWP) at Kotputli
Rajasthan.
During FY 2012, the company reported operating income of
INR148.27 crore and net profit of INR0.43 crore as against
operating income of INR106.84 crore and net loss of INR7.14 crore
during FY 2011. During the 6 month period ended September 2012,
the company reported operating income of INR77.37 crore and net
profit of INR0.19 crore.
VEDANTA RESOURCES: Moody's Affirms 'Ba1' CFR; Outlook Negative
--------------------------------------------------------------
Moody's Investors Service has affirmed Vedanta Resources plc's
corporate family rating at Ba1 and its senior unsecured rating at
Ba3.
The outlook for both ratings remains negative.
Ratings Rationale
Vedanta's rating reflects its earnings generation underpinned by
its acquisition of Cairn India Ltd. (CIL) in December 2011 but
its operating cash flow is restrained by softer commodity prices
in the current year. While capital investment can be deferred to
compensate for weaker cash flow, the purchase of the Government
of India's stake in Hindustan Zinc Ltd. (HZL) at some stage, and
the Group's refinancing requirements over the next nine months
leave undue pressure on its liquidity and rating. Nevertheless,
Vedanta still showed USD484 million of free cash flow post-
expansionary capex in H1 FY13.
"Vedanta's EBITDA for the financial year ended March 2013 will
include a full twelve months of Cairn India instead of the less
than four months' of contribution made in FY12. However, given
the output challenges in the iron ore business and only modest
output ramp-ups elsewhere, EBITDA in H2 FY13 is not expected to
advance on that achieved in H1 FY13," says Alan Greene, a Moody's
VP-Senior Credit Officer.
"The bedrock of the business is clearly Vedanta's 58.5% stake in
Cairn India, and following its recent restructuring, it is now
able to convert its cash flow into dividends." continues
Mr. Greene, also Moody's Lead Analyst for Vedanta.
Moody's notes the progress being made towards refinancing
forthcoming debt maturities, but expects companies to have
confirmed funding well in advance of repayment dates. However,
Moody's concerns are partially alleviated by Vedanta's track
record of timely access to global debt capital markets and
through its subsidiaries, to bank finance in India. At the same
time, Moody's is affording some leeway to allow for the Group's
structural changes underway.
"The formation of Sesa-Sterlite should be completed this month
and we expect the HZL purchase to be close behind," says
Mr. Greene. "Once the new entity is finalised, it may be
preferable to raise debt finance in this vehicle, which will have
its own, substantial operating cash flow as well as significant
dividend income, and so we expect Vedanta to be constantly
reviewing its funding options", continues Mr. Greene.
Moody's retains the two-notch differential between the corporate
family rating of the Group and the senior unsecured debt issued
by the Parent company. The primary driver for this remains the
inherently weak financial profile of the standalone UK-listed
entity. At the same time, the proportion of priority debt in the
subsidiaries to total debt remains uncomfortably high, bearing in
mind that Vedanta's creditors are subordinated to the minority
shareholders and not just the creditors of the operating
subsidiaries. The gap may change once the new Sesa Sterlite
structure has crystallized and on gaining access to the liquid
funds currently trapped within HZL.
There is limited upward pressure on the rating over the near-
term. However, the outlook could be stabilized if 1) commodity
prices, especially oil, move higher, thus supporting cash flow
growth; 2) CIL maintains or increases its output; 3) Vedanta's
refinancing of maturing debt progresses smoothly and 4) the
restructuring of Indian subsidiaries is completed.
Conversely, the ratings could come under downward pressure if 1)
CIL encounters material production difficulties; 2) the parent
remains thinly capitalized with less than expected dividends
upstreamed from the core operating subsidiaries; 3) Vedanta
undertakes further acquisitions, investments or shareholder
remuneration policies that include incremental debt beyond
Moody's expectations; or 4) it fails to satisfactorily execute
its expansion projects in aluminium and power.
Credit metrics that Moody's would consider for a ratings
downgrade include CFO (less dividends)/Adjusted Debt below 15%,
Adjusted Debt to EBITDA exceeding 3.5-4.0x, or EBIT interest
coverage declining to 3.5x or less on a sustained basis.
The principal methodology used in rating Vedanta was the Global
Mining Industry Methodology published in May 2009.
=========
J A P A N
=========
J-CORE15 TRUST: Fitch Affirms 'Csf' Rating on Four TBI Classes
--------------------------------------------------------------
Fitch Ratings has affirmed all classes of J-CORE15 Trust's trust
beneficiary interests (TBIs) or asset-backed loans (ABLs) due
July 2013. At the same time, the agency has removed four senior
classes from Rating Watch Negative (RWN). The transaction is a
Japanese single-borrower type CMBS securitisation. The rating
actions are as follows:
-- JPY5.2bn* Class A1 TBIs affirmed at 'Asf'; off RWN; Outlook
Stable
-- JPY11.4bn* Class A1 ABL affirmed at 'Asf'; off RWN; Outlook
Stable
-- JPY14.7bn* Class A2 TBIs affirmed at 'BBBsf'; off RWN;
Outlook Stable
-- JPY1bn* Class A2 ABL affirmed at 'BBBsf'; off RWN; Outlook
Stable
-- JPY8bn* Class B TBIs affirmed at 'Bsf'; Outlook revised to
Stable from Negative
-- JPY6.6bn* Class D ABL affirmed at 'Csf'; Recovery Estimate
0%
-- JPY3bn* Class E TBIs affirmed at 'Csf'; Recovery Estimate 0%
-- JPY1.4bn* Class F TBIs affirmed at 'Csf'; Recovery Estimate
0%
-- JPY4bn* Class F ABL affirmed at 'Csf'; Recovery Estimate 0%
*as of December 6, 2012
The affirmations and removal from RWN of the four senior classes
follow the disposal of the sole underlying property backing this
transaction. As Fitch expects the five senior classes to be
redeemed in full at the next payment date in January 2013, the
ratings have been affirmed at their current levels.
The affirmations at 'Csf' of the four junior classes reflect
Fitch's view that the sales proceeds will not be sufficient to
redeem these classes in full.
Fitch assigned ratings to the TBIs and ABLs from this transaction
in July 2008. The transaction is a securitisation of a TMK bond
purchased by Deutsche Bank AG, Tokyo Branch. The bond was backed
by a Class A office building -- the former Head Office Building
of the Shinsei Bank -- located in Chiyoda-ku, Tokyo.
JLOC XXX: Fitch Affirms 'Csf' Rating on Two TBI Classes
-------------------------------------------------------
Fitch Ratings has affirmed JLOC XXX Satellite Trust's mezzanine
trust beneficiary interests (TBIs) due April 2014. The
transaction is a Japanese single-borrower type CMBS
securitisation. The details of the rating actions are as
follows:
-- JPY8.3bn* Class 1 mezzanine TBIs affirmed at 'Csf'; Recovery
Estimate 0%
-- JPY1bn* Class 2 mezzanine TBIs affirmed at 'Csf'; Recovery
Estimate 0%
*as of December 6, 2012
The affirmations reflect Fitch's unchanged view that principal
loss for these TBIs is inevitable, taking into account the
workout activity to date. The servicer is implementing property
sales in accordance with its business plan. Since the previous
rating action in January 2012, six hotels backing the sole
defaulted loan have been sold at higher prices than Fitch's
expectations. However, the agency believes that the remaining 10
hotels are unlikely to achieve sufficient sales proceeds to
redeem these TBIs in full.
Both TBIs, which rank equally in payment priority, are backed by
the junior portions of TBIs of a satellite trust, which is
secured by a Tokutei Mokuteki Kaisha specified bond whose
collateral currently consists of 10 hotel properties and sales
proceeds.
JLOC XXX: Fitch Affirms Junk Rating on Three TBI Classes
--------------------------------------------------------
Fitch Ratings has affirmed JLOC XXX Trust's trust beneficiary
interests (TBIs) due April 2014. The transaction is a Japanese
multi-borrower type CMBS securitisation. The rating actions are
as follows:
-- JPY12.3bn* Class A TBIs affirmed at 'BBsf'; Outlook Stable
-- JPY3.7bn* Class B TBIs affirmed at 'CCCsf'; Recovery
Estimate revised to 95% from 70%
-- JPY16.6bn* Class C TBIs affirmed at 'CCsf'; Recovery
Estimate 65%
-- JPY20bn* Class D TBIs affirmed at 'Csf'; Recovery Estimate
revised to 0% from 5%
*as of December 6, 2012
The affirmation of the class A TBIs reflects Fitch's view that
the TBIs are likely to be redeemed in full in H213, not far off
from the legal final maturity. The servicer is implementing
workouts on the remaining two defaulted loans through property
sales in accordance with its business plan. Since the previous
rating action in January 2012, seven properties have been sold
and each of the sales value has been higher than Fitch's
expectation. However, full repayment of class A TBIs may be
affected if the largest hotel, based on Fitch's valuations, in
the remaining portfolio, is not sold.
The affirmations of the class B to D TBIs reflect Fitch's
unchanged view of the possibility of principal loss on these
TBIs.
Under the structure of the transaction, the TBIs' principal is
repaid on a sequential basis in accordance with allocated TBI
principal amounts. These principal amounts are set on a loan-by-
loan basis, when the underlying loan is repaid with proceeds from
property sales. To date, four underlying loans have been paid in
full, and proceeds have been applied to the repayment of multiple
TBI classes in accordance with the allocated amount of the
underlying loans.
This transaction was originally a securitisation of five Tokutei
Mokuteki Kaisha specified bonds and a senior portion TBI of a
satellite trust, backed by a specified bond, and ultimately
backed by a total of 125 properties. The transaction is
currently backed by 13 properties and sales proceeds.
RENESAS ELECTRONICS: Sells JPY150-Bil. New Shares to Japan Fund
---------------------------------------------------------------
Takashi Amano & Naoko Fujimura at Bloomberg News report that
Renesas Electronics Corp rose to the highest level in five months
in Tokyo trading on Monday, Dec. 10, after announcing that it
will raise at least JPY150 billion (US$1.8 billion) from a Japan-
based fund and customers as part of a bailout plan. The
chipmaker advanced 10% to JPY340, according to the report.
Renesas, according to Bloomberg, will sell new shares to a group
led by Innovation Network Corp. of Japan, making the government-
backed fund its biggest shareholder with a 69% stake INCJ will
buy 1.25 billion shares for JPY120 a piece, the report notes.
Bloomberg notes that the capital will help Renesas, a supplier to
Apple Inc. and Nintendo Co., boost spending to develop more
advanced microcontrollers used in cars and TVs.
"The risk of bankruptcy is gone with this fresh capital,"
Bloomberg quotes Makoto Kikuchi, chief executive officer at Myojo
Asset Management Japan Co., a Tokyo-based hedge advisory firm, as
saying. "Renesas must now fix its money-losing structure before
considering ways to boost revenue."
According to Bloomberg, Renesas said it may get an additional
JPY50 billion of investment or financing from INCJ if more funds
are needed. The chipmaker may eliminate as many as 5,000
positions and shut more factories under INCJ's proposal, a person
familiar with the plan told Bloomberg last week.
Bloomberg adds that a group of companies including Toyota Motor
Corp., Nissan Motor Co., Denso Corp., Keihin Corp., Panasonic
Corp., Nikon Corp., Yaskawa Electric Corp. and Canon Inc. is also
expected to invest in Renesas. Toyota, Japan's biggest carmaker,
will hold 2.5% of Renesas, the company said.
Renesas on Dec. 9 cut its revenue forecast for the year ending
March 31 to JPY820 billion from a previous forecast of JPY868
billion, Bloomberg relates. It maintained its net-loss forecast
of JPY150 billion, compared with last year's loss of JPY62.6
billion, the report discloses.
About Renesas Electronics
Based in Tokyo, Japan, Renesas Electronics Corp. --
http://am.renesas.com/-- manufactures semiconductor systems for
mobile phones and automotive applications.
Renesas, which has been unprofitable since it was established in
2010, announced a restructuring plan which included a reduction
of about 5,000 workers, or 12% of its workforce, in a bid to turn
around its bottom line.
For the fiscal year that ended March 31, 2012, the chip maker
reported a net loss of JPY62.60 billion and revenue of
JPY883.11 billion. In the previous fiscal year when the company
was created, it reported a net loss of JPY115.02 billion, The
Wall Street Journal reported.
===============
M A L A Y S I A
===============
GOLDEN AGRI-RESOURCES: Moody's Says Faces LT Financing Event Risk
-----------------------------------------------------------------
Moody's Investors Service says that Golden Agri-Resources Ltd's
recent inaugural issuance of RM1.5 billion (approximately USD490
million) of Islamic medium term notes (IMTN), as well as other
recent long-term debt issuance are credit positive, but will
increase event risk.
"Numerous positives arise from Golden Agri's recent debt
issuance, including a stronger liquidity position and greater
stability for the company's capital structure, which was
historically reliant on short-term, secured debt", says Alan
Greene, a Moody's Vice President and Senior Credit Officer.
Golden Agri reported USD479 million of cash, cash equivalents and
short-term investments at the end of Q3 2012. Since then,
additional funds have come from USD400 million of convertible
bonds issued on October 4, 2012 and the drawdown of the IMTN,
completed on November 19, 2012.
Golden Agri's wholly-owned subsidiary, Golden Assets
International Finance Limited, has established a 15-year RM5
billion IMTN programme. The first tranche of RM1.5 billion was
issued with a tenor of five years. The convertible bond came as a
five year, non-call three year bond.
Gross debt will increase at the end of FY2012 as a result of the
IMTN drawdown and convertible bond, although some portion of the
proceeds are expected to be temporarily used to pay down short
term working capital loans. However, Golden Agri's credit metrics
are strongly positioned for its rating, where Debt/EBITDA and
EBITDA/Interest ratios are expected to remain comfortably above
its downward rating triggers unless CPO prices fall below
USD700/tonne on a sustained basis.
Overall financing cost is also expected to reduce as the
convertible bond is priced at 2.5% and the IMTN's profit rate is
4.35% before cross currency swap. Golden Agri borrowed long-term
USD at rates between 2.9% and 6.5% in 2011.
"After mainly dealing with Indonesian and Chinese banks in the
past and, more recently, lenders in Europe and Japan, the
issuance continues Golden Agri's broadening of its banking and
capital market relationships", says Mr. Greene, who is also the
Lead Analyst for Golden Agri.
"The unsecured nature of recent issuance also alleviates our
previous concern over Golden Agri's high proportion of secured
debt", adds Mr. Greene.
Golden Agri's secured debt comprised 99% of its total debt as at
December 31, 2011. The ratio fell to approximately 91% in Q3 2012
after the issuance of IDR1 trillion (approximately USD106
million) of local unsecured bond from PT Smart Tbk, one of Golden
Agri's key operating subsidiaries in Indonesia. Moody's expects
the proportion of secured debt to total debt to fall further to
about 50-60% at the end of FY2012 with the IMTN and convertible
bond.
"However, the heightened financial flexibility increases event
risk as it is uncertain how Golden Agri will spend its war chest
of cash. Potential acquisitions have become a more likely option
with the increased liquidity", says Mr. Greene.
Golden Agri has apportioned 80% of the net proceeds from the
convertible bond for capital expenditure. It seeks to grow its
operations through upstream and downstream expansion, as well as
by improvements to its logistics and infrastructure.
Golden Agri, registered in Mauritius, is the largest listed oil
palm plantation company in Indonesia. Listed on the Singapore
Stock Exchange in 1999, it mainly operates in Indonesia and China
and is 49.95% owned by the Widjaja family.
As reported by the Troubled Company Reporter-Asia on Sept. 11,
2012, Moody's Investors Service upgraded the corporate family
rating on Golden Agri-Resources Ltd. to Ba2 from Ba3. Moody's
said the outlook for the rating remains stable.
====================
N E W Z E A L A N D
====================
COMPUTER POWER: Liquidators Chase NZ$9.5MM from Directors
---------------------------------------------------------
stuff.co.nz reports that liquidators are fighting to retrieve
NZ$9.5 million from the director of a training institute after
they say the money was redirected to his Australian companies
before going bust.
stuff.co.nz says sole director, Andrew Horton, of Victoria,
Australia, is now being held personally liable for the debt left
in New Zealand, including more than NZ$8.3 million in tax,
penalties and interest.
And despite 750 students having their fees covered under the
company's insurance policy, nearly 140 ex-students owed refunds
at the time of its demise are not -- adding up to about
NZ$400,000, the report relates.
According to the report, PricewaterhouseCoopers liquidator John
Fisk said he was holding Mr. Horton personally liable for
NZ$9.5 million of debt left in New Zealand.
"We're saying that he is personally liable for the debt that he
has left in Computer Power," the report quotes Mr. Horton as
saying.
stuff.co.nz notes that while Mr. Horton did not have any assets
PwC was aware of in New Zealand, it was seeking to have his
Australian assets used to repay his debt.
Computer Power (NZ) Ltd is a private computer training institute.
The institute runs Computer Power Institute campuses in
Wellington, Christchurch and Auckland. It has about 750 students
including about 150 international students.
As reported in the Troubled Company Reporter-Asia Pacific on
March 22, 2012, The Dominion Post said Computer Power (NZ) Ltd
went into liquidation owing more than NZ$8.3 million in tax,
penalties and interest.
=====================
P H I L I P P I N E S
=====================
PHILIPPINES: S&P Corrects Ratings History on Two Debt Issues
------------------------------------------------------------
Standard & Poor's Ratings Services corrected the rating history
on two peso-denominated global bond issues by the Republic of
Philippines (BB+/Stable/B; axBBB+/axA-2), including correcting
the rating type from preliminary rating to foreign currency long-
term rating. "The corrected rating history reflects the fact that
we originally assigned foreign-currency rather than local-
currency debt ratings to the Philippines peso (PHP) 44.109
billion global bond due 2021 and PHP54.77 billion global bond due
2036. In addition, the corrected rating history shows that the
ratings have moved in line with our action on the foreign-
currency sovereign credit ratings and are currently 'BB+'. The
rating history on the sovereign credit ratings and other
outstanding debt is not affected. A corrected rating history on
the two bonds and related articles are shown," S&P said.
Rating History
Philippines (Republic of)
PHP44.109 billion global bond due 2021
Rating raised (July 4, 2012) To From
Foreign currency long-term BB+ BB
Rating raised (Nov. 12, 2010) To From
Foreign currency long-term BB BB-
Rating assigned (Sept. 20, 2010)
Foreign currency long-term BB-
PHP54.77 billion global bond due 2036
Ratings raised (July 4, 2012) To From
Foreign currency long-term BB+ BB
ASEAN regional rating axBBB+ axBBB-
Ratings assigned (Jan. 5, 2011)
Foreign currency long-term BB
ASEAN regional rating axBBB-
=================
S I N G A P O R E
=================
3COM ASIA: Creditors' Proofs of Debt Due Jan. 7
-----------------------------------------------
Creditors of 3com Asia Pacific Rim Pte Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Jan. 7, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
ASPINDEN HOLDINGS: Creditors' Proofs of Debt Due Jan. 7
-------------------------------------------------------
Creditors of Aspinden Holdings Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Jan. 7, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Sim Guan Seng
Khor Boon Hong
Victor Goh
C/o Baker Tilly TFW LLP
15 Beach Road
#03-10 Beach Centre
Singapore 189677
BAXUS MARINE: Creditors' Meetings Set for Dec. 11
-------------------------------------------------
Baxus Marine Pte Ltd, which is in compulsory liquidation, will
hold a meeting for its creditors on Dec. 11, 2012, at 3:00 p.m.,
at 21 Merchant Road, #07-02 Royal Merukh S.E.A. Building, in
Singapore 058267.
Agenda of the meeting includes:
a. to update the creditors on the status of the liquidation of
the Company;
b. to appoint a committee of inspection, if thought fit; and
c. discuss other business.
The company's liquidators are:
Chia Soo Hien
Leow Quek Shiong
c/o 21 Merchant Road
#05-01 Royal Merukh S.E.A. Building
Singapore 058267
EAST ZONO: Creditors' Proofs of Debt Due Jan. 8
-----------------------------------------------
Creditors of East Zono (Singapore) Pte Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Jan. 8, 2013, to be included in the company's dividend
distribution.
The company's liquidator is:
Jacqueline Chan Li Shan
171 Chin Swee Road
#08-01 San Centre
Singapore 169877
FATWIRE ASIA: Creditors' Proofs of Debt Due Jan. 7
--------------------------------------------------
Creditors of Fatwire Asia Pacific Pte Ltd, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Jan. 7, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Low Sok Lee Mona
Teo Chai Choo
c/o Low, Yap & Associates
4 Shenton Way
#04-01 SGX Centre 2
Singapore 068807
OLAM INT'L: Banks Didn't Raise Credit Concerns on Bond Sale
-----------------------------------------------------------
Shruti Date Singh & Michelle Yun at Bloomberg News report that
Olam International Ltd., the commodity trader that Muddy Waters
LLC alleges is in danger of default, said banks hired to help
sell $1.25 billion in bonds and warrants didn't raise concerns
about its credit position in discussions with shareholder Temasek
Holdings Pte.
Bloomberg relates that the company said Credit Suisse Group AG,
DBS Bank Ltd., HSBC Holdings Plc and JPMorgan Chase & Co "confirm
that there was no mention of any concern regarding Olam's credit
position in their discussions with Temasek," which is supporting
the bond sale.
Bloomberg notes that Olam, the world's second-largest rice
trader, and Carson Block's Muddy Waters have engaged in a war of
words since 36- year-old Block said last month he was selling
Olam shares short -- borrowing them to profit by buying them at a
lower price later -- because he expected the company to fail due
to mounting debts. The report says Olam Chief Executive Officer
Sunny Verghese, who sued the research firm and Block on Nov. 21,
described the sale as a vote of confidence from Temasek.
According to Bloomberg, the Singapore-based trader rejected a
theory by Muddy Waters that the banks may have refused to lend
more money to the company if Temasek didn't provide additional
support. Temasek, Olam's second-largest shareholder, "made its
own independent assessment" before deciding to back the sale of
bonds and warrants, the company, as cited by Bloomberg, said.
Based in Singapore, Olam International Limited (SGX:O32) --
http://olamonline.com/-- engages in sourcing, processing,
packaging and merchandising of agricultural products. The
Company's supply chain activities include sourcing, processing
and merchandising across a range of agricultural products.
POSCO ENGINEERING: S&P Keeps 'bb+' Stand-Alone Credit Profile
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on POSCO Engineering & Construction Co.
Ltd. to 'BBB-' from 'BBB'. The outlook on the rating is negative.
"The downgrade of POSCO E&C reflects Standard & Poor's view that
the likelihood of extraordinary support from its parent, POSCO
(BBB+/Stable/--), in the event of financial distress, has fallen.
The ability of POSCO to provide support to POSCO E&C has
weakened, in our view, and is unlikely to improve significantly
over the next 12-24 months, as indicated by the downgrade of
POSCO to 'BBB+' on Oct. 22, 2012, mainly due to our assessment of
its deteriorated financial risk profile. Thus we reduced the two
rating notches of support from the parent embedded in the ratings
on POSCO E&C to one notch. POSCO E&C accounted for less than 3%
of the parent's EBITDA over the past two years, and while we
expect captive orders from the parent to remain stable over the
next two years, we see them declining beyond the next two years
considering the parent's ongoing efforts to limit its capital
expenditure," S&P said.
"The stand-alone credit profile (SACP) of POSCO E&C remains
'bb+'. The company's business risk profile remains 'satisfactory'
and financial risk profile remains 'significant.' We expect that
an increase in the backlog for orders will lead to moderate
growth in revenue over the next few years. Furthermore, the
company's EBITDA margin is likely to remain stable above 4.5%
over the next 12 to 18 months given that the size and quality of
the projects that the company embarked on in the past 12 months
is healthy. The company kicked off two captive orders in line
with the parent's global expansion into Brazil and Indonesia. As
a result, we expect the company's adjusted debt to EBITDA, which
is likely to exceed 4x in 2012, to recover to below 4x in 2013
and 2014 backed by new orders from this year," S&P said.
"However, a large balance of payment guarantee that POSCO E&C
extended to small property developers-worth Korean won (KRW) 1.1
trillion as of the end of October 2012--remains a negative factor
for its credit quality. The activation of such a guarantee could
pressure the company's liquidity and its debt profile if the
developers fail to pay the interest and principal they owe to
creditors and POSCO E&C is obligated to take over or repay such
debt," S&P said.
"The negative outlook reflects our view that POSCO E&C may need
to take over its guaranteed debt of property developers amid an
increasingly difficult refinancing environment for small
developers and increasing likelihood of prolonged weakness in the
Korean property market, which would harm the company's financial
risk profile," S&P said.
"We may lower the rating on POSCO E&C if adjusted debt to EBITDA
stays above 4x for a prolonged period, likely as a result of the
triggering of additional payment guarantees or weaker-than-
expected operating performance," S&P said.
"We may revise the outlook to stable if the company's debt to
EBITDA stabilizes below 4x on a sustained basis. This could occur
if the company's debt falls due to stable operating performance
in key businesses or through financing measures to strengthen its
capital structure, such as an IPO, and reduced exposure to
developers' project finance debt," S&P said.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week Dec. 03 to Dec. 7, 2012
----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
COM BK AUSTRALIA 1.50 04/19/22 AUD 70.32
EXPORT FIN & INS 0.50 06/15/20 NZD 73.29
MIDWEST VANADIUM 11.50 02/15/18 USD 58.91
MIDWEST VANADIUM 11.50 02/15/18 USD 59.00
MIRABELA NICKEL 8.75 04/15/18 USD 75.00
MIRABELA NICKEL 8.75 04/15/18 USD 72.38
NEW S WALES TREA 0.50 09/14/22 AUD 68.47
NEW S WALES TREA 0.50 10/07/22 AUD 68.28
NEW S WALES TREA 0.50 10/28/22 AUD 68.11
NEW S WALES TREA 0.50 11/18/22 AUD 68.78
NEW S WALES TREA 0.50 12/16/22 AUD 68.57
NEW S WALES TREA 0.50 02/02/23 AUD 68.21
NEW S WALES TREA 0.50 03/30/23 AUD 67.80
TREAS CORP VICT 0.50 08/25/22 AUD 68.86
TREAS CORP VICT 0.50 03/03/23 AUD 68.58
TREAS CORP VICT 0.50 11/12/30 AUD 50.59
CHINA
-----
CHINA GOVT BOND 4.86 08/10/14 CNY 104.19
CHINA GOVT BOND 1.64 12/15/33 CNY 68.45
INDIA
-----
AKSH OPTIFIBRE 1.00 02/05/13 USD 67.56
JCT LTD 2.50 04/08/11 USD 20.00
JSL STAINLESS LT 0.50 12/24/19 USD 66.63
MASCON GLOBAL LT 2.00 12/28/12 USD 10.00
PRAKASH IND LTD 5.63 10/17/14 USD 68.51
PRAKASH IND LTD 5.25 04/30/15 USD 66.51
PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00
REI AGRO 5.50 11/13/14 USD 68.33
REI AGRO 5.50 11/13/14 USD 68.33
SHIV-VANI OIL 5.00 08/17/15 USD 50.04
SUZLON ENERGY LT 5.00 04/13/16 USD 42.43
JAPAN
-----
EBARA CORP 1.30 09/30/13 JPY 100.09
ELPIDA MEMORY 2.03 03/22/12 JPY 14.50
ELPIDA MEMORY 2.10 11/29/12 JPY 14.50
ELPIDA MEMORY 2.29 12/07/12 JPY 14.50
ELPIDA MEMORY 0.50 10/26/15 JPY 14.00
ELPIDA MEMORY 0.70 08/01/16 JPY 15.13
JPN EXP HLD/DEBT 0.50 09/17/38 JPY 63.19
JPN EXP HLD/DEBT 0.50 03/18/39 JPY 63.05
KADOKAWA HLDGS 1.00 12/18/14 JPY 105.64
SHARP CORP 1.42 03/19/14 JPY 54.13
SHARP CORP 0.85 09/16/14 JPY 51.63
SHARP CORP 1.14 09/16/16 JPY 44.25
SHARP CORP 2.07 03/19/19 JPY 41.25
SHARP CORP 1.60 09/13/19 JPY 41.13
SOFTBANK CORP 1.50 03/31/13 JPY 150.34
TOKYO ELEC POWER 2.35 09/29/28 JPY 67.88
TOKYO ELEC POWER 2.40 11/28/28 JPY 69.13
TOKYO ELEC POWER 2.21 02/27/29 JPY 67.88
TOKYO ELEC POWER 2.11 12/10/29 JPY 66.25
TOKYO ELEC POWER 1.96 07/29/30 JPY 64.63
TOKYO ELEC POWER 2.37 05/28/40 JPY 62.00
MALAYSIA
--------
DUTALAND BHD 7.00 04/11/13 MYR 0.69
PHILIPPINES
-----------
BAYAN TELECOMMUN 13.50 07/15/49 USD 20.50
BAYAN TELECOMMUN 13.50 07/15/49 USD 20.50
SINGAPORE
---------
BAKRIE TELECOM 11.50 05/07/15 USD 58.00
BAKRIE TELECOM 11.50 05/07/15 USD 57.90
BLD INVESTMENT 8.63 03/23/15 USD 60.77
BLUE OCEAN 11.00 06/28/12 USD 37.75
BLUE OCEAN 11.00 06/28/12 USD 39.16
CAPITAMALLS ASIA 2.15 01/21/14 SGD 99.62
CAPITAMALLS ASIA 3.80 01/12/22 SGD 100.42
DAVOMAS INTL FIN 11.00 12/08/14 USD 28.63
DAVOMAS INTL FIN 11.00 12/08/14 USD 28.63
F&N TREASURY PTE 2.48 03/28/16 SGD 100.22
KOREA
-----
CN 1ST ABS 8.00 02/27/15 KRW 33.15
CN 1ST ABS 8.30 11/27/15 KRW 34.48
EXP-IMP BK KOREA 0.50 08/10/16 BRL 71.94
EXP-IMP BK KOREA 0.50 09/28/16 BRL 71.41
EXP-IMP BK KOREA 0.50 10/27/16 BRL 70.90
EXP-IMP BK KOREA 0.50 11/28/16 BRL 70.34
EXP-IMP BK KOREA 0.50 12/22/16 BRL 70.17
EXP-IMP BK KOREA 0.50 10/23/17 TRY 71.54
EXP-IMP BK KOREA 0.50 11/21/17 BRL 64.77
EXP-IMP BK KOREA 0.50 12/22/17 BRL 64.04
EXP-IMP BK KOREA 0.50 12/22/17 TRY 70.78
GREAT KO 3RD ABS 10.00 12/29/14 KRW 30.66
GYEONGGI MUTUAL 8.50 08/29/14 KRW 86.23
HYUNDAI SWISS BK 8.50 10/02/13 KRW 93.69
HYUNDAI SWISS BK 8.50 07/15/14 KRW 87.81
HYUNDAI SWISS BK 7.90 07/23/15 KRW 77.37
KIBO GRE 1ST ABS 10.00 01/25/15 KRW 30.54
SINBO 4TH ABS 8.00 08/18/14 KRW 30.14
SINBO 7TH ABS 8.00 09/22/14 KRW 29.90
SINBO CO 3RD ABS 10.00 09/29/14 KRW 30.66
SRI LANKA
---------
SRI LANKA GOVT 5.80 01/15/17 LKR 71.73
SRI LANKA GOVT 5.80 07/15/17 LKR 71.08
SRI LANKA GOVT 7.50 08/15/18 LKR 73.21
SRI LANKA GOVT 5.65 01/15/19 LKR 64.14
SRI LANKA GOVT 8.50 05/01/19 LKR 75.29
SRI LANKA GOVT 8.00 11/01/19 LKR 71.88
SRI LANKA GOVT 8.00 06/01/20 LKR 69.83
SRI LANKA GOVT 6.20 08/01/20 LKR 61.47
SRI LANKA GOVT 8.00 01/01/22 LKR 66.23
SRI LANKA GOVT 7.00 10/01/23 LKR 59.31
SRI LANKA GOVT 5.35 03/01/26 LKR 45.33
SRI LANKA GOVT 8.00 01/01/32 LKR 56.75
THAILAND
--------
BANGKOK LAND 4.50 10/13/03 USD 5.50
*********
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 ***