/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/121219.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 Wednesday, December 19, 2012, Vol. 15, No. 252 Headlines A U S T R A L I A AMARANTHUS: Jim Raptis Fights Bank Claims Over Funding BENDIGO AND ADELAIDE: Fitch Retains 'BB' Support Rating Floor JACKSON'S RARE: Collapse Reminds Personal Securities Register KAGARA LTD: Administrators Sell North Queensland Assets * AUSTRALIA: Sees New Wave of Business Insolvencies in 2013 C H I N A * CHINA: Moody's Says RLG Use of Trust Products May Cause Problem H O N G K O N G CHARTER SMART: Court Enters Wind-Up Order FACTORY LIMITED: Court to Hear Wind-Up Petition on Jan. 16 GOODYEAR INSURANCE: Blaauw and Lam Step Down as Liquidators HAINA MARINE: Court to Hear Wind-Up Petition on Jan. 9 JADE PRODUCT: Court to Hear Wind-Up Petition on Jan. 23 JFK HOLDING: Court to Hear Wind-Up Petition on Jan. 30 LEHMAN BROTHERS: Paul Jeremy Brough Steps Down as Liquidator MAXWAY INTERNATIONAL: Court to Hear Wind-Up Petition on Jan. 23 M TRAVEL: Court to Hear Wind-Up Petition on Jan. 9 TECHWELL ENGINEERING: General Meetings Set for Jan. 15 I N D I A BARBEQUE NATION: CARE Assigns 'BB+' Rating to INR48.56cr Loan BHAVNA TEXTILES: CARE Rates INR8.40cr LT Loan at 'CARE BB-' DHANUSH INFOTECH: CARE Reaffirms 'CARE BB' Rating on INR6cr Loan JUHI ALLOYS: CARE Rates INR35cr Long-Term Loan at 'CARE B+' KINGFISHER AIRLINES: Revival Remains on Paper as Talks Continue MALU PAPER: ICRA Reaffirms '[ICRA]D' Rating on INR113.24cr Loans MOENUS TEXTILE: CARE Cuts Rating on INR30.87cr Loans to 'CARE D' NS PAPERS: CARE Assigns 'CARE BB-' Rating to INR104.22cr LT Loan RUCHIRA PAPERS: CARE Raises Rating on INR103.85cr Loan to 'B+' SAINOV SPIRITS: ICRA Assigns 'ICRA B' Rating to INR75cr LT Loan SHREE KANTA: ICRA Rates INR5cr Fund Based Loans at '[ICRA]B' SHYAM JEE: CARE Assigns 'CARE B+' Rating to INR2.5cr LT Loan SUPER STAINLESS: ICRA Rates INR8cr Cash Credit at '[ICRA]B' N E W Z E A L A N D AORANGI SECURITIES: Managers Drop Plan to Recoup NZ$1.6MM Funds CREDIT SAILS: Commerce Commission Secures NZ$60MM for Investors S I N G A P O R E CALOMEL PTE: Creditors' Proofs of Debt Due Jan. 7 CLEARVIEW SOLUTIONS: Court Enters Wind-Up Order DAUPHIN SHIPYARD: Court Enters Wind-Up Order GUAN SHENG: Court Enters Wind-Up Order LLC INVEST: Creditors' Proofs of Debt Due Jan. 14 X X X X X X X X * Upcoming Meetings, Conferences and Seminars - - - - - ================= A U S T R A L I A ================= AMARANTHUS: Jim Raptis Fights Bank Claims Over Funding ------------------------------------------------------ Quentin Tod at goldcoast.com.au reports that Gold Coast developer Jim Raptis is in court battle against the Commonwealth Bank. The report says the bank has gone to court to claim nearly AUD2 million from Mr. Raptis over funding provided to his private company, Amaranthus. Three Amaranthus lots in Commodore Drive, Paradise Waters, were security for the funding and were sold for AUD6.2 million late last year by receivers, goldcoast.com.au relates. The bank said Mr. Raptis gave a guarantee and indemnity over the funding. According to the report, the 66-year-old, who headed up the public company, Raptis Group, is alleging unconscionable conduct by the bank and its Bankwest arm and is counterclaiming for damages and compensation. goldcoast.com.au reports that the bank said a finance facility offered to Amaranthus in 2005 was for up to AUD6.955 million and that all money owing had to be repaid by January 18 last year. When the money had not been repaid by March 21 this year, the CBA filed a claim against Mr. Raptis seeking AUD1.984 million plus interest at AUD543 a day, according to the report. The Commodore Drive land was sold to Chinese buyers Songming Zheng and Yanlian Wu for AUD6.2 million at an auction last December, goldcoast.com.au recalls. The court documents indicate that those buyers had, in the months before the receiver auction, entered into contracts for AUD8.6 million, and then AUD8 million, on the land. According to the report, the Raptis counterclaim documents argue that it is the duty of a mortgagee or receiver to take reasonable care to ensure a property is sold at market value. They say the land was sold in one line despite Landmark White saying a higher price could be achieved by selling it as three separate lots, the report adds. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 16, 2011, goldcoast.com.au said receivers have moved on the personal assets of Raptis Group founder Jim Raptis, placing one of his residential holdings at Paradise Waters on the market. The waterfront property, at 151 Commodore Drive, is understood to have a sizeable mortgage against it and was seized by receivers after Mr. Raptis failed to find a buyer earlier in 2011. goldcoast.com.au, citing company records, disclosed that two months after selling the home, Mr. Raptis secured a credit facility of up to AUD10 million against 151 Commodore Drive which is owned through private Raptis company Amaranthus. The property, which was bought by Amaranthus in 1999 for AUD1.11 million, has a site value of AUD6.8 million. The charge over the company is held by Gibraltar-based Sevinhand Company Ltd, which is understood to have appointed receivers Graham Killer -- graham.killer@au.gt.com -- and Michael McCann -- michael.mccann@au.gt.com -- of Grant Thornton, to recover the debt. BENDIGO AND ADELAIDE: Fitch Retains 'BB' Support Rating Floor ------------------------------------------------------------- Fitch Ratings has affirmed Australia-based Bendigo and Adelaide Bank Limited's Long- and Short-Term Issuer Default (IDR) ratings at 'A-' and 'F2' respectively. The Outlook on the Long-Term IDR is Stable. At the same time, the agency affirmed BEN's Viability Rating (VR) at 'a-' and Support Rating at '3'. The ratings reflect BEN's stable domestic retail banking franchise, sound funding and liquidity position, conservative risk management framework and adequate capitalisation. The ratings also consider increasing pressure on BEN's operating profitability. BEN's IDRs and VR may come under pressure from a weakening of funding and liquidity or significant deterioration in asset quality. Positive rating action is unlikely due to the bank's unresolved exposure to investors under Great Southern Limited's investment management scheme and earnings pressures stemming from competition for deposits and loans against a mildly weaker economic backdrop. BEN has performed well despite funding pressures and a weakening operating environment. Fitch expects the bank to continue to perform solidly in the financial year ending June 30, 2013, in a low credit growth environment, benefiting from a loyal customer base. More efficient cost management and sound asset quality will be key to maintaining profit growth in FY13. BEN's asset quality remains strong, benefiting from conservative risk controls and a well collateralised loan book. Concentration risk by single name and industry is manageable. Fitch expects the bank's impaired loans to rise from their low levels, reflecting a slowdown in non-mining sectors and given the bank's cyclically low arrears. However, a high level of loans secured on residential property should provide buffer for potential losses and keep overall loan impairment manageable. BEN's solid funding is underpinned by an extensive regional franchise and community-focused business model. Around 80% of BEN's funding is sourced from customer deposits, making the bank less dependent on wholesale markets relative to peers. Wholesale funds are well diversified by instrument and maturity, and include securitizations which are non-recourse and whose maturities are matched by that of underlying loans, limiting refinancing risk. In addition, the bank benefits from sound liquidity which sufficiently covered wholesale funds maturing within 12 months at FYE12. BEN's capitalization has continued to improve, supported by healthy internal capital generation in addition to a AUD195.5m share issue in FY12. The Support Rating and Support Rating Floor reflect the moderate potential of support, in case of need, from the government for the bank, given its modest market share in Australia. The Support Rating is sensitive to any change in assumptions around the propensity or ability of the Australian sovereign to provide timely support to the bank. The rating actions are as follows: Bendigo and Adelaide Bank Limited: -- Long-Term IDR affirmed at 'A-'; Outlook Stable -- Short-Term IDR affirmed at 'F2' -- Viability Rating affirmed at 'a-' -- Support Rating affirmed at '3' -- Support Rating Floor affirmed at 'BB' -- Commercial Paper affirmed at 'F2' -- Long-term senior unsecured debt affirmed at 'A-' -- Short-term senior unsecured debt affirmed at 'F2' JACKSON'S RARE: Collapse Reminds Personal Securities Register ------------------------------------------------------------- Patrick Stafford at SmartCompany reports that small businesses have once again been warned about the importance of being up to speed with the new Personal Properties Security Registry, after the collapse of Jackson's Rare Guitars has left suppliers empty- handed and confused. SmartCompany says the administration of Jackson's Rare Guitars in Sydney has left some 100 guitar sellers empty-handed, after they had provided custom guitars to the store. SmartCompany notes that experts have been warning SMEs for months that they need to have a better understanding of the registry, and especially how it can affect them in the event of a corporate collapse. "As an insolvency practitioner I always thought it was going to be a nightmare," the report quotes Dissolve liquidator Cliff Sanderson as saying. "And it will become increasingly so as the years go by." Jackson's Rare Guitars, a staple in the Sydney music community for decades, was placed in administration last month, SmartCompany reports. Jamieson Louttit & Associates has been tapped as administrator. SmartCompany says the Jacksons store gained a name for itself after selling instruments to famous musicians, including country star Keith Urban and former Beatle George Harrison. According to the report, the collapse is complicated by the store's sale of guitars contributed on consignment by local guitar makers, which is where the new Personal Properties Security Registry comes in. Earlier this year, the registry was set up so that any person or company which has personal property involved in a business needs to register that property, in the event of a corporate collapse. That property extends to almost everything except most buildings. SmartCompany states that the importance of the registry is this: if you register your property, you'll be treated as a secured creditor, rather than an unsecured creditor, in the event of a company collapse. But the registry is new, and many people aren't up to speed with how it works. Mr. Sanderson said it will take time for property owners -- like the guitar makers -- to become familiar with the system and how to register, SmartCompany adds. KAGARA LTD: Administrators Sell North Queensland Assets ------------------------------------------------------- The West Australian reports that administrators for failed miner Kagara have sold some of the company's North Queensland assets for AUD40 million. Snow Peak Mining, which is associated with the listed Consolidated Tin Mines, will pick up Kagara Central Region assets including the resources and processing plant at Mt. Garnet, the Balcooma and Baal Gammon mines and the Einasleigh and Maitland exploration projects, the report relates. "This transaction enables the administrators to continue to review the restructuring options available to the group," the West Australian quotes administrators Taylor Woodings as saying. "The proceeds from the sale will largely be used to extinguish the group's secured debt, trading costs, and administration expenses, with the balance to be retained for working capital. "The administrators are currently considering offers on other assets of the group and are considering possible deed of company arrangement scenarios." According to the report, Michael Ryan, of Taylor Woodings, said the transaction was another positive step that might facilitate the restructuring of the group, or assist in maximising the value which can be returned to creditors. The transaction is set to settle next month and the administrators are expected to announce a second creditors' meeting before February 28, the report adds. About Kagara Ltd Kagara Ltd (ASX: KZL) -- http://www.kagara.com.au/-- engages in exploration, development, and production of mineral properties in Western Australia and North Queensland. It primarily focuses on the exploration of zinc, copper, gold, lead, and nickel. Michael Joseph Patrick Ryan, Mark David Peter Englebert, Quentin James Olde and Stefan Dopking of Taylor Woodings were appointed Joint and Several Administrators of Kagara Ltd and certain subsidiaries on April 29, 2012. * AUSTRALIA: Sees New Wave of Business Insolvencies in 2013 ----------------------------------------------------------- Russell Emmerson at Herald Sun reports that Australia may be on the cusp of a new wave of business collapses, debt collectors and a leading retailer warn. Herald Sun relates that the chief executive of debt collector Prushka, Roger Prushka, said retail businesses are set for a new-year shock. According to the report, Mr. Prushka said businesses are holding on to accounts for longer before referring them for collection, meaning these older debts are more likely to spark a business collapse. Mr. Prushka said the firm has noted a 50% increase in statutory demands, this being the last step before a company is liquidated, but a failure of creditors to pursue liquidation meant figures understated the number of insolvent businesses. "I believe that the B2B (business to business) sector is really struggling," the report quotes Mr. Prushka as saying. "Our statutory demands are substantially up and more clients are now prepared to fund liquidation proceedings. Insolvency continues to be the real sleeper in the economy; it screams warning bells." Herald Sun reports that the head of Harvey Norman, Gerry Harvey, has also warned of a retail slowdown, saying there are "plenty more" retail collapses to come, fuelled by an "extremely difficult" first half and the arrival of big bills after the Christmas sales peak. "After Christmas, you will see a lot more (retailers) go," Mr. Norman said. "It is going to happen, I can guarantee you. It's only getting worse." ========= C H I N A ========= * CHINA: Moody's Says RLG Use of Trust Products May Cause Problem ----------------------------------------------------------------- Moody's Investors Service says that regional and local governments (RLGs) in China have recently increased their use of government trust cooperation products to secure financing for capital projects, and the amounts, while still small, could negatively affect the credit quality of some RLGs, if they continue to rise. Trust products ultimately add to an RLG's debt burden as they are contractual obligations that require a repayment or "returns on projects". As such, they are akin to debt obligations. Additional pressures on RLG budgets could also emerge in view of the elevated costs, which are related to the short tenors and higher coupon rates of these transactions. Moreover, these transactions -- which are not recorded as debt -- add a further layer of complexity for determining an RLG's indebtedness levels, thereby potentially further blurring fiscal transparency. Unlike bank loans, which are recorded on a bank's balance sheets, and bond issues, which are registered with the China Interbank Regulator or are recorded on the local government financing vehicles' (LGFVs') own balance sheets, there is no requirement to report trust products as debt. Moody's included its conclusions in a new report titled, Chinese Regional & Local Governments: Growing Use of Trust Products Could Challenge Credit Quality. Chinese RLGs have increased their use of trust products in 2012, given their ongoing demand for infrastructure investment as well as the shortage of other financing options. Accordingly, the balance of trust products -- which had been on a declining trajectory over the 24 months until end-March 2012 -- climbed by nearly 30% during April-June and 19.9% during July-October. The report points out that ultimately, these transactions have the potential to add to an RLG's debt burden as they are undertaken by LGFVs or other government-related entities to carry out local government policy objectives. Another feature of trust products is that they offer yields ranging from 9% to 14% -- considerably higher than bank loans and bond issuance -- to attract high wealth individuals. Such higher yields significantly increase the interest expenditure burdens of the RLGs. In addition, their short tenors of typically 1-2 years raise refinancing risk, and can create a cash mismatch to the extent that they become due in advance of any revenues that may be generated by the infrastructure projects they are funding. ================ H O N G K O N G ================ CHARTER SMART: Court Enters Wind-Up Order ----------------------------------------- The High Court of Hong Kong entered an order Dec. 3, 2012, to wind up the operations of Charter Smart Limited. The company's liquidator is: Mat Ng JLA Asia Limited 20/F Henley Building 5 Queen's Road Central, Hong Kong FACTORY LIMITED: Court to Hear Wind-Up Petition on Jan. 16 ---------------------------------------------------------- A petition to wind up the operations of The Factory Limited will be heard before the High Court of Hong Kong on Jan. 16, 2013, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company on Nov. 8, 2012. The Petitioner's solicitors are: Arthur K. H. Chan & Co. Unit C1, 15th Floor, United Centre No. 95 Queensway, Hong Kong GOODYEAR INSURANCE: Blaauw and Lam Step Down as Liquidators ----------------------------------------------------------- Jan Gerard Willemszoon Blaauw and Rainier Hok Chung Lam stepped down as liquidators of Goodyear Insurance Company Limited on May 10, 2012. HAINA MARINE: Court to Hear Wind-Up Petition on Jan. 9 ------------------------------------------------------ A petition to wind up the operations of Haina Marine Hong Kong Limited will be heard before the High Court of Hong Kong on Jan. 9, 2013, at 9:30 a.m. Chimbusco Pan Nation PetroChemical Co. Ltd filed the petition against the company on Oct. 16, 2012. The Petitioner's solicitors are: Clyde & Co 58th Floor, Central Plaza 18 Harbour Road Wanchai, Hong Kong JADE PRODUCT: Court to Hear Wind-Up Petition on Jan. 23 ------------------------------------------------------- A petition to wind up the operations of Jade Product Limited will be heard before the High Court of Hong Kong on Jan. 23, 2013, at 9:30 a.m. Petitioners (1) ShenZhen Wingart Art Supplies Co. Ltd filed the petition against the company on Nov. 12, 2012. The Petitioner's solicitors are: Ho and Wong Room 1408-1411, 14th Floor China Merchants Tower Shun Tak Centre 168-200 Connaught Road JFK HOLDING: Court to Hear Wind-Up Petition on Jan. 30 ------------------------------------------------------ A petition to wind up the operations of JFK Holding Company Limited will be heard before the High Court of Hong Kong on Jan. 30, 2013, at 9:30 a.m. Great Bill Limited filed the petition against the company on Nov. 22, 2012. The Petitioner's solicitors are: Chan, Lau & Wai Address: 8th Floor, Asia Standard Tower Nos. 59-65 Queen's Road Central, Hong Kong LEHMAN BROTHERS: Paul Jeremy Brough Steps Down as Liquidator ------------------------------------------------------------ Paul Jeremy Brough stepped down as liquidator of Lehman Brothers Securities Asia Limited on Sept. 28, 2012. MAXWAY INTERNATIONAL: Court to Hear Wind-Up Petition on Jan. 23 --------------------------------------------------------------- A petition to wind up the operations of Maxway International Enterprise Limited will be heard before the High Court of Hong Kong on Jan. 23, 2013, at 9:30 a.m. Petitioner Industrial and Commercial Bank of China (Asia) Limited filed the petition against the company on Nov. 13, 2012. The Petitioner's solicitors are: Ho and Wong Room 1408-1411, 14th Floor China Merchants Tower Shun Tak Centre 168-200 Connaught Road Central, Hong Kong M TRAVEL: Court to Hear Wind-Up Petition on Jan. 9 -------------------------------------------------- A petition to wind up the operations of Jade Product (HK) Company Limited will be heard before the High Court of Hong Kong on Jan. 9, 2013, at 9:30 a.m. Chan Ho Yin Eric filed the petition against the company on Nov. 7, 2012. TECHWELL ENGINEERING: General Meetings Set for Jan. 15 ------------------------------------------------------ Creditors and contributories of Techwell Engineering Limited will hold their general meetings on Jan. 15, 2013, at 3:00 p.m., and 3:30 p.m., respectively at the Official Receiver's Office, 10th Floor, Queensway Government Offices, at 66 Queensway, in Hong Kong. At the meeting, Teresa S W Wong, the official receiver & Provisional liquidator, will give a report on the company's wind- up proceedings and property disposal. ========= I N D I A ========= BARBEQUE NATION: CARE Assigns 'BB+' Rating to INR48.56cr Loan ------------------------------------------------------------- CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank facilities of Barbeque Nation Hospitality Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 48.56 CARE BB+ Assigned Short-term bank Facilities 0.50 CARE A4+ Assigned Rating Rationale The ratings are constrained by Barbeque Nation Hospitality Limited's on-going predominantly debt funded expansion project towards setting-up new outlets and long gestation period associated with it. The ratings are further constrained by its presence in a highly competitive business of fine dining along with risks associated with operating under a single brand. The ratings, however, favorably consider BNHL's experienced promoters, established brand with geographically diversified revenue stream and growth in its scale of operations. Timely completion and stabilization of new restaurants within the envisaged cost and time parameters and improvement in its capital structure will be the key rating sensitivities. BNHL, a subsidiary of Sayaji Hotels Ltd, was incorporated in 2006 at Indore as Sanchi Hotels Pvt Ltd. During 2008, SHPL was converted in to a public limited company and its name was changed to the present form. BNHL was promoted with a view to operate specialty restaurant business under the brand "Barbeque Nation". SHL was promoted by Late Mr. Sajid Dhanani in 1982. During 2009, a corporate investor, M/s BlueDeebaj LLC, UAE infused equity share capital. Subsequently in Q2FY12, there was an additional equity infusion by BlueDeebaj which diluted SHL's equity holding to 68%. BNHL operates 28 restaurants spread across India as on October 30, 2012. All the outlets are on lease and operated directly by BNHL. During FY12 (refers to the period of April 01 to March 31), BNHL reported total operating income INR129.37 crore and a PAT of INR6.74 crore against total operating income of INR102.41 crore and PAT of INR1.85 crore during FY11. Further, as per provisional results of H1FY13, BNHL achieved total operating income of INR79.95 crore with PBILDT of INR14 crore. BHAVNA TEXTILES: CARE Rates INR8.40cr LT Loan at 'CARE BB-' ----------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Bhavna Textiles Pvt. Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.40 CARE BB- Assigned Rating Rationale The rating assigned to the bank facilities of Bhavna Textiles Pvt. Ltd. (BTPL) is primarily constrained on account of its short operating track record, small scale of operations, leveraged capital structure and high customer concentration risk. The rating is also constrained on account of low entry barriers in the spinning sector leading to high competition and inherent cyclicality associated with denim industry. The above weaknesses are partially offset by strength derived from long-standing track record and experience of BTPL's promoters in the textile industry. Improvement in BTPL's overall financial risk profile marked by increase in the scale of operations and improvement in its profitability are the key rating sensitivities. Incorporated in 1995, BTPL is promoted by the Chiripal group based out of Ahmedabad. BTPL was a dormant company till FY08 (refers to the period April 1 to March 31) and thereafter it started trading in shares & securities and denim fabrics in domestic market. During FY11, the company expanded its operations by setting up a spinning unit with an installed capacity of 18 Tons Per Day (TPD) at an estimated cost of INR10.87 crore. The commercial production at the spinning unit commenced in June 2011. BTPL carries out spinning activity (i.e. manufacturing of cotton yarn from cotton) on job work basis for Nandan Exim Ltd., which is one of its group companies engaged in the manufacturing of denim fabric. NEL is BTPL's sole customer and BTPL's 100% capacity is being used only for the purpose of job work for NEL. Subsequent to the commencement of production at its spinning unit, BTPL has wound up its trading business. Among the other group entities, Shanti Shirting Pvt. Ltd. (rated: 'CARE BB-'), Dwarka Knitting Pvt. Ltd. (rated: 'CARE BB- / CARE A4') and Hexa International Pvt. Ltd. (rated: 'CARE BB-') also carry out job work for NEL, which is their sole customer. As per the audited results for FY12, BTPL reported a total operating income of INR3.94 crore (FY11: INR24.56 crore) and net loss of INR0.28 crore (FY11: net loss of INR0.27 crore). DHANUSH INFOTECH: CARE Reaffirms 'CARE BB' Rating on INR6cr Loan ---------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Dhanush Infotech Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6 CARE BB Reaffirmed Rating Rationale The rating continues to be constrained by small scale of operations and moderate gearing. However, the rating is underpinned by the experience of the promoters in the industry, and moderate order book position. The ability of the company to effectively manage its working capital, maintain the profitability and increase the scale of operations would be the key rating sensitivities. Incorporated in the year 2008, Dhanush Infotech Pvt Ltd is jointly promoted by Mr.D. S. N. Murthy, Mr. D. Sriramakrishna, Mr. V. Natarajan and Mrs. D. Chandrima. DIPL is engaged in providing Information Technology services mainly in the sphere of Enterprise Resource Planning (ERP) on Microsoft and Oracle platform. DIPL is a gold-certified partner of Microsoft and platinum partner of Oracle. DIPL has an offshore development centre in Hyderabad which caters to the customers in Africa, Australia, USA and Papua New Guinea. DIPL also provides learning management solutions, health management solutions, education information management solutions and embedded technologies like implementation of Vehicle Tracking Systems (VTS). DIPL has onshore offices in Australia and Kenya through associated companies of DIPL. JUHI ALLOYS: CARE Rates INR35cr Long-Term Loan at 'CARE B+' ----------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Juhi Alloys Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 35 CARE B+ Assigned Rating Rationale The rating is constrained by the elevated financial risk profile characterized by low profitability margins, highly working capital intensive operations and volatility in sales in the recent years. The rating is also constrained by the exposure of Juhi Alloys Ltd to fluctuation in the raw material prices, the risks related to the proposed debt-funded project, highly fragmented nature of the industry resulting in intense competition and inherent cyclical nature of the steel industry. The rating also takes into account the significant exposure of JAL to group companies. However, the rating derives strength from the experienced promoters and established track record in the steel industry and established operations with regionally known brand name "Rimjhim". The ability of the company to consistently scale up the operations with improvement in the profitability margins, effective working capital management along with completion of the proposed debt-funded project within envisaged cost parameters remain the key rating sensitivities. Incorporated on July 12, 1990, Juhi Alloys Ltd is a part of the Kanpur-based Rimjhim group managed by Mr. Yogesh Kumar Agarwal & family relatives. JAL is engaged in manufacturing variety of Thermo mechanically Treated (TMT) Bars, SS Flats and Rounds products coupled with trading of billets, ingots, etc, which primarily find application in construction activities. The company markets its products through mix of direct sales to builders and sales through traders. The manufacturing facilities of the company are located in Hamirpur district of Uttar Pradesh (UP) with an installed capacity of 90,000 MTPA p.a as on March 31, 2012. JAL reported a PAT of INR0.87 crore on a total income of INR167.46 crore for FY12 (refers to the period April 1 to March 31) as compared with PAT of INR0.43 crore on a total income of INR123.39 crore for FY11. KINGFISHER AIRLINES: Revival Remains on Paper as Talks Continue --------------------------------------------------------------- The Economic Times reports that the revival of Kingfisher Airlines remained on paper as lenders turned down Vijay Mallya's demand for bank guarantees even though he promised to invest at least INR105 crore in its equity by February. According to the report, two people familiar with the development said bankers have formed a group with executives from State Bank of India, Bank of India, IDBI, Bank of Baroda and Punjab National Bank to work out ways to revive the company amid assurance by Mallya to invest as much as INR425 crore in stages. "They have informed us that they will restart operations on a limited basis and have assured us the promoters will infuse Rs 425 crore for the same. They have not yet set a time-frame for restarting operations," Shyamal Acharya, deputy managing director of State Bank of India, told waiting reporters outside The Trident Hotel in Mumbai, relates ET. ET states that billionaire Mallya and bankers are keen on reviving the airline, once coveted for its five-star services. The airline that never made a profit has defaulted on loans worth more than INR7,000 crore to banks. While banks have said Mallya bringing in equity is a pre-condition for them agreeing to restructure loans, the liquor baron is seeking bank guarantees, the report relays. "If the limited restart happens and we are happy, then we are not averse to restructuring their loans," ET quotes Mr. Acharya as saying. ET notes that bankers are averse to providing guarantee at this point, given the airline owes INR1,600 crore to the airports authority and oil companies. Any guarantee may be invoked by them, leaving little funds for restarting operations, the bankers, as cited by ET, said. About Kingfisher Airlines Headquartered in Mumbai, India, Kingfisher Airlines -- http://www.flykingfisher.com/-- formerly known as Deccan Aviation Ltd., serves about 35 domestic destinations with a fleet of more than 40 aircraft, including Airbus jets and ATR 72 turboprops. It maintains bases in major cities such as Delhi and Mumbai. * * * As reported in the Troubled Company Reporter-Asia Pacific on Sept. 5, 2012, The Times of India said Kingfisher Airlines has been given a reality check by its auditors in the company's annual report 2011-12. The company had current liabilities, including borrowings and trade payables of INR8,436 crore, against current assets of INR1,618.8 crore at the end of March 2012. According to TOI, the Vijay Mallya-promoted company has defaulted in repayment of loans to banks and financial institutions, for which several lenders have had to take a hit by setting aside more funds, with overdues estimated at nearly INR800 crore at the end of March 2012. Kingfisher, which has been unprofitable since it was created in 2005, accumulated losses of $1.9 billion between May 2005 and June 30 of this year, The Wall Street Journal reported citing Sydney-based consultant CAPA-Centre for Aviation. The airline also owes about $2.5 billion to lenders, suppliers, leasing companies and investors, the Journal added. MALU PAPER: ICRA Reaffirms '[ICRA]D' Rating on INR113.24cr Loans ---------------------------------------------------------------- ICRA has reaffirmed the rating of '[ICRA]D' assigned to the term loans, fund based facilities and non-fund based facilities of Malu Paper Mills Limited aggregating to INR113.24 crore (enhanced from INR95.95 crore). Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 74.29 [ICRA]D reaffirmed Fund Based Limits 24.75 [ICRA]D reaffirmed Non-Fund Based Limits 14.20 [ICRA]D reaffirmed The reaffirmation of rating takes into account the weak financial profile of the company with continuing net losses, highly leveraged capital structure with gearing of 5.37 times as on March 2012 and a stretched liquidity position which puts pressure on the company's ability to meet the debt repayments that have commenced from June 2012 as per the Corporate Debt Resourcing (CDR) package. ICRA notes that a significant improvement in the company's financial position in the near term would remain critical as its debt repayments would increase subsequently, given the ballooning structure of the repayment schedule. The ratings are further constrained by the cyclical nature of the newsprint industry and vulnerability of the company's profitability margins to price fluctuations of waste paper (key raw material) and international newsprint paper. ICRA however favorably factors in the long track record of the promoters in the business, the healthy plant capacity utilization levels, the widening of the product portfolio with commissioning of writing & printing paper production from FY 2011 onwards and the presence of a captive power plant for the newsprint manufacturing unit which provides power supply reliability. Malu Paper Mills Limited, the flagship company of Malu group, was incorporated on 11th January 1994 as Malu Solvex Ltd. Subsequently the name of the company was changed to Malu Paper Mills Ltd. with effect from 24th April 1998. MPML is promoted by the Malu family. The company is involved in the manufacture of kraft paper, newsprint paper and writing & printing paper and has plants located in Saoner-Taluka district, about 30 km away from Nagpur city in the state of Maharashtra. The first paper machine of the company was commissioned for commercial production in 1996 with a capacity to produce 5,940 TPA of kraft paper which was later upgraded to 8,250 TPA. MPML set up another unit at the same location to produce 19,800 TPA of newsprint in 2001 and later modified the same for production of kraft paper from FY 2011. The capacity of the unit has been further expanded to 26,400 TPA. The company also setup a new plant of 49,500 TPA for production of newsprint and writing & printing paper, along with captive power generation capacity of 6 MW, in the nearby area for which the equity requirement was met through company's Initial Public Offer (IPO) issued in March 2006 raising proceeds of about INR 20 crore. The plant commenced operations on 10th March 2008. MOENUS TEXTILE: CARE Cuts Rating on INR30.87cr Loans to 'CARE D' ---------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Moenus Textile Private Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 28.07 CARE D Revised from CARE B+ Short-term Bank Facilities 2.80 CARE D Revised from CARE A4 Rating Rationale The revision in the ratings assigned to the bank facilities of Moenus Textiles Private Limited is driven by the on-going irregularity in debt servicing of its fund-based bank facilities. Background Moenus Textile Pvt. Ltd., incorporated in 2005, is a private limited company promoted by Saket Rupramka & Associates and J.N. Patel & Associates. Mr. J. N. Patel is a NRI based in London and friend of Mr. N. M. Shukla (director of MTPL). MTPL is engaged in the manufacturing of coarser-count cotton yarn ranging from Ne4 to Ne12 through rotor spinning technology. It has an installed capacity of 1,800 rotors or 6,000 Metric Tonnes Per Annum (MTPA) at its facility at Mandideep (Madhya Pradesh) as on March 31, 2012. MTPL uses virgin cotton and comber noil (produced as waste during ring spinning) for manufacturing cotton yarn and it caters to the demand of manufacturers of denim products and industrial fabrics in India and abroad. During FY12 (refers to the period April 1 to March 31), MTPL reported a total operating income of INR44.47 crore (FY11: INR47.47 crore) with a net loss of Rs0.09 crore (FY11: net loss of INR6.04 crore). NS PAPERS: CARE Assigns 'CARE BB-' Rating to INR104.22cr LT Loan ---------------------------------------------------------------- CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of NS Papers Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 104.22 CARE BB- Assigned Short-term Bank Facilities 9.10 CARE A4 Assigned The ratings assigned to the bank facilities of NS Papers Limited are constrained by its financial risk profile characterized by low profitability margins, declining capacity utilization levels & working capital intensive operation, susceptibility of margins to volatility in raw material price, highly fragmented industry and large ongoing debt-funded capital expenditure. The ratings, however, derive strength from the experience of the promoters in the paper industry, their established marketing network, locational advantages and presence of a captive power plant both for its existing and new capacities. Going forward, the ability of NSPL to improve its profitability margins, increase its scale of business and timely complete the expansion project and derive the expected benefits out of the same would remain the key rating sensitivities. Incorporated in 1997, NS Papers Limited earlier known as Rana Papers Limited is promoted by Mr. Noor Saleem Rana and his family members. NSPL is engaged in manufacturing kraft paper (waste paper based), Kraft Liner & MS ingots. The manufacturing facilities of NSPL are located at Muzaffarnagar, UP, with installed capacity of 49,500 TPA for Kraft paper, 52,500 TPA of MS ingots and captive power plant of 14 MW. NSPL recorded total operating income of INR120 crore and net profit of INR4 crore during FY12 (refers to the period April 1 to March 31). RUCHIRA PAPERS: CARE Raises Rating on INR103.85cr Loan to 'B+' -------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Ruchira Papers Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 103.85 CARE B+ Revised from 'CARE D' Long/Short-term Bank 6.25 CARE B+/CARE A4 Facilities Revised from 'CARE D Rating Rationale The revision in the ratings take into account the regularisation of debt servicing by the company, steady improvement in plant capacity utilization levels along with improvement in the financial risk profile characterized by increasing operating income, improved profitability and capital structure. The ratings also consider the promoter's experience and long operational track record, diversified product profile, proximity of the manufacturing plant to raw material sources and captive power generation capacity. However, the ratings continue to be constrained by working capital intensive nature of operations, vulnerability of profitability to volatility in raw material prices and fragmented nature of the industry resulting in intense competition. Going forward, the ability of Ruchira Papers Ltd to maintain healthy capacity utilization levels and profitability along with servicing of debt obligations in a timely manner would be the key rating sensitivities. RPL, incorporated in 1980, is engaged in the manufacturing of writing and printing paper (W&P) and kraft paper. RPL was promoted by Mr. Subhash Chander Garg, Mr. Jatinder Singh and Mr. Umesh Chander Garg. The manufacturing unit is located at Kala Amb, Himachal Pradesh (HP), with total installed capacity of 85,800 MTPA as on March 31, 2012 (52,800 MTPA for Kraft Paper and 33,000 MTPA for WPP). During FY12 (refers to the period April 01 to March 31), RPL reported a total income of INR284 crore and PAT of INR8 crore. In H1FY13, RPL has achieved PBT of INR13 crore on a total income of INR150 crore. SAINOV SPIRITS: ICRA Assigns 'ICRA B' Rating to INR75cr LT Loan --------------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]B' to INR75.00 crore1 fund-based facilities and a short-term rating of '[ICRA]A4' to INR25 crore fund based facilities (Sub-limit of Long-Term fund based facilities) of Sainov Spirits Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long-Term Fund Based 75.00 [ICRA]B Assigned Facilities Short-Term Fund Based 25.00 [ICRA]A4 Assigned Facilities The rating takes comfort from the track record of promoters having relevant experience in alcoholic/FMCG/ beverages industries; leveraging on which the company is generating good business volumes during its initial years of operations. During FY-12, Sainov increased its operating income to INR106.5 crore as compared to INR19.8 crore in the previous financial year. The growth was mainly driven by trading activities undertaken by the company for ENA which accounted for 81% of its revenues and the revenue contribution of relatively higher margin IMFL retailing segment remained minimal at 7% during FY12. Owing to nature of trading operations, the operating profit margins remained low at 9% which coupled with high growth and high working capital intensity (41% in FY-12) resulted in increased funding requirements thereby increasing its reliance on working capital borrowings. Further, to supplement its IMFL retailing business, Sainov acquired a distillery in February 2011, which was substantially funded through debt. Due to its high vintage and adverse cost structure, the distillery witnessed low capacity utilization (16% in FY-12) thereby resulting in limited contribution to company's profitability. As a result of the above acquisition and working capital borrowings, the company witnessed sharp increase in its overall debt levels without a corresponding increase in profitability. While the equity infusion by promoter group protected the deterioration in capital structure to an extent as reflected in a gearing of 1.26 times as on March 31, 2012, however in the backdrop of low profitability, the debt coverage indicators of the company remained weak. This is reflected by Total Debt/OPBDITA at 6.4 times, OPBDITA/Interest at 1.3 times and Net Cash accruals/Total debt at 9% as on March 31, 2012. ICRA has taken a note of competitive nature of industry, vulnerability to Government's policies and high entry barriers from already established brands of various domestic and international players. Given the focus of Sainov to improve its presence in IMFL retailing business; ICRA notes that the gestation period in this business segment of company could be longer, however it is expected to be supported by the profitability from the ENA trading segment. Going forward, ability of the company to effectively maintaining its liquidity through calibrated growth, managing working capital in its trading operations and optimally utilize its distillery on profitable basis will be key rating sensitivities. ICRA also notes that, to efficiently utilize its distillery, Sainov may require further capital investments; hence the scale and the funding mix of the same will also remain rating sensitivities. Sainov Spirits Private Limited, incorporated in April-2008 is an alcoholic beverage company promoted by - Mr. Sanjay Lamba and Mr. Rajesh Mehta. Based in Delhi, the company is engaged in manufacturing & trading of ENA, manufacturing & marketing of IMFL and concentrates in India and abroad. The company also has a distillery unit at Saharanpur (Uttar Pradesh) having a production capacity of 36 KLPD (Kilo liters per day) and bottling facility of 2 lakh cases per month, which is currently being utilized for United Spirits Limited. As per the provisional results, on standalone basis, during FY2012, Sainov reported a PAT of INR3.91 crore with the operating income of INR106.04 crore as compared to loss of INR0.06 crore with operating income of INR19.67 crore for the previous financial year. SHREE KANTA: ICRA Rates INR5cr Fund Based Loans at '[ICRA]B' ------------------------------------------------------------ ICRA has assigned '[ICRA]B' B) rating to the INR 5.00 crore fund based limits of Shree Kanta Rice and General Mills. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund based limits 5.00 [ICRA]B assigned The rating takes into account the highly competitive and low value additive nature of the rice milling industry with limited pricing power vis-a-vis consumers and suppliers (paddy farmers). These factors, coupled with the small size and non value added nature of the firm's rice milling unit have resulted in relatively weak profitability indicators and given the fundamental industry dynamics, ICRA does not expect any change in the near future. Further, the firm's working capital intensive operations have been largely debt funded resulting in high gearing and weak debt coverage indicators. ICRA also factors in the vulnerability of firm's operations to agro climatic risks, which can affect the pricing and availability of paddy. ICRA however draws comfort from the proximity of the mill to a major rice growing area which results in easy availability of paddy and stable demand outlook given that India is a major consumer (rice being an important staple of the Indian diet) and exporter of rice. Incorporated in the year 2006, Shree Kanta Rice and General Mills was a partnership firm till 31st March 2012 and with effect from 1st April, 2012, the business is run as a proprietorship concern. The entity is engaged in milling of rice with an installed capacity of 4 tons/hour. The firm is mow run by Mr. Rakesh Kumar Garg as a proprietor. Recent Results The firm reported a net profit after tax of INR0.03 crores on an operating income of INR29.62 crores in 2011-12 as against a profit after tax of INR0.05 crores on operating income of INR25.46 crores in 2010-11. SHYAM JEE: CARE Assigns 'CARE B+' Rating to INR2.5cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Shyam Jee Lumbers Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 2.50 CARE B+ Assigned Short-term Bank Facilities 14.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Shyam Jee Lumbers Pvt. Ltd. are constrained by relatively small size of its operations, leveraged capital structure and low profitability margins which are vulnerable to fluctuating exchange rates and log prices. The ratings are further constrained due to its concentrated supplier base, presence in a highly competitive timber sector and exposure to government regulations. The ratings, however, are underpinned by long track record of the promoters along with their considerable experience in the timber sector, location advantage, moderately diversified customer base and good demand from user industries. The ability of the company to increase its scale of operations along with improvement in profitability and manage its foreign exchange and raw material price risk are the key rating sensitivities. Shyam Jee Lumbers Pvt. Ltd., a Karnal (Haryana)-based importer and wholesale supplier of timber was established as a proprietorship firm in 1989. The constitution was later changed in 2007 and the firm was rechristened to its current name. SJLPL imports log from Malaysia, Nigeria, New Zealand and some African countries and supplies processed timber to the wholesalers in the states of Maharashtra, Haryana, UP, Punjab and Karnataka. The company has a saw mill in Gandhidham, Gujrat, for procuring logs and processing the same. Main varieties of wood imported include Malaysian Saal, Ivory Coast Teak Wood, Nigerian Wood and New Zealand wood. Termed as commercial wood, these varieties of woods find application in making doors, windows, furniture and other wooden items. SJLPT is a family owned business of the Mittal family, managed by Mr. Ram Partap Mittal and his sons, Mr. Puneet Mittal and Mr. Piyush Mittal. In FY12 (refers to the period April 1 to March 31), SJLPL recorded total operating income of INR30.79 crore with PBILDT of INR0.58 crore against total operating income of INR20.97 crore and PBILDT of INR0.39 crore in FY11. SUPER STAINLESS: ICRA Rates INR8cr Cash Credit at '[ICRA]B' ----------------------------------------------------------- The rating of '[ICRA]B' has been assigned to the INR 8.00 crore cash credit facility of Super Stainless Steel. The rating of '[ICRA]A4' has also been assigned to the INR2.00 crore short-term non-fund based limit of SSS. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 8.00 [ICRA]B assigned Bank Guarantee 2.00 [ICRA]A4 assigned The assigned ratings are constrained by SSS's modest scale of operations and weak financial profile characterized by thin profitability, adverse capital structure and weak coverage indicators. The ratings also take into account the vulnerability of firm's profitability with adverse fluctuations in stainless steel prices, high competitive intensity with fragmented industry structure and dependence on limited number of suppliers resulting in limited bargaining power with respect to credit period received for procurement. The ratings also factor in the high working capital requirements owing to long credit periods extended to the customers and high level of inventory required to be maintained resulting in stretched liquidity position as indicated by near full utilization of working capital limits. While assigning the ratings ICRA has also noted the risks of capital withdrawals that are inherent in proprietorship firms. Super Stainless Steel is a proprietor ship firm, established in the year 2002 by Mr. Devendra Patel. From 2002 to 2005, the firm was mainly involved in the trading of the ammonium alum. From 2005 onwards, the firm discontinued trading of ammonium alum and started the trading of the stainless steel sheets, coils and plates. In the year 2007, the firm acquired the dealership of Jindal Stainless Ltd. The firm currently also undertakes trading of stainless steel products of SAIL. Super Stainless Steel is a proprietor ship firm, established in the year 2002 by Mr. Devendra Patel. From 2002 to 2005, the firm was mainly involved in the trading of the ammonium alum. From 2005 onwards, the firm discontinued trading of ammonium alum and started the trading of the stainless steel sheets, coils and plates. In the year 2007, the firm acquired the dealership of Jindal Stainless Ltd. The firm currently also undertakes trading of stainless steel products of SAIL. Recent Results For the year ended March 31, 2012, SSS has reported operating income of INR 88.46 crore and profit after tax (PAT) of INR 0.38 crore as against operating income of INR 86.07 crore and PAT of INR 0.65 crore for the year ended March 31, 2011. ==================== N E W Z E A L A N D ==================== AORANGI SECURITIES: Managers Drop Plan to Recoup NZ$1.6MM Funds --------------------------------------------------------------- Matt Nippert at stuff.co.nz reports that statutory managers appointed to the late Allan Hubbard's Hubbard Management Funds have dropped attempts to claw back funds incorrectly distributed to investors. stuff.co.nz says investors in HMF believed, according to reports issued by Hubbard, their funds were worth NZ$80 million. But statutory managers Grant Thornton, appointed in June 2010, have since discovered significant discrepancies between the investment statements and the NZ$60 million worth of assets held by HMF and available for realization, stuff.co.nz relates. stuff.co.nz notes the shortfall, and individual investor statements apparently showing individual asset portfolios, has complicated repayments to investors with High Court action ongoing since early 2011 to determine how HMFs assets should be carved up. In April the High Court ordered a NZ$12 million distribution to investors, but subsequent calculations showed NZ$1.6 million had been overpaid, with five investors receiving the bulk of the extra cash, stuff.co.nz recalls. In a decision released earlier this month, stuff.co.nz relates, Justice Lester Chisholm of the High Court in Timaru said Grant Thornton had dropped efforts to claw back the NZ$1.6 million. According to the report, the move came after concerns ongoing legal action would cost more than it would recoup, and potentially lead to a further year of delays while the matter was before the Courts. stuff.co.nz relates that the judgment said HMF was solvent only until March 31, 2007. "The fund was solvent at that time even if individual statements might not have been completely accurate." Investor balances at this date will be used to determine how future asset recoveries by Grant Thornton are to be distributed, the report adds. About Aorangi Securities Aorangi Securities Ltd was incorporated in 1974 and is solely controlled by the Hubbards. On June 20, 2010, Aorangi Securities and seven charitable trusts were placed into statutory management, and Allan and Jean Hubbard were also placed into statutory management as "associated persons" of those entities. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. The Temple Bar Family Trust and Barns Charitable Trust were also put into statutory management in September 2010 on recommendation from the Securities Commission. Hubbard Churcher Trust Management and Forresters Nominees Company were also added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn, of Grant Thornton, on September 20, 2010. On June 20, 2011, the Serious Fraud Office laid 50 charges under Crimes Act against Allan Hubbard in relation to its investigation into the affairs of Aorangi Securities Ltd; Hubbard Management Funds; and ASL directors Allan and Margaret (Jean) Hubbard. The SFO dropped the fraud charges against Allan Hubbard following Mr. Hubbard's death on Sept. 2, 2011. Mrs. Hubbard was also removed from statutory management, effective on Nov. 13, 2011. Aorangi's statutory managers said 400 investors in the mortgage lender owed NZ$96 million were likely to face a substantial shortfall as many loans were in default. So far, statutory managers have paid just 12 cents in the dollar, The Timaru Herald reports. CREDIT SAILS: Commerce Commission Secures NZ$60MM for Investors --------------------------------------------------------------- The Commerce Commission has reached a settlement with five companies that concludes its investigation into the failed investment product Credit SaILS. As part of the settlement, the companies have agreed to create a settlement fund of NZ$60 million to be distributed to investors who lost money when Credit SaILS failed in 2008. The companies involved in establishing the fund were Forsyth Barr Limited, Forsyth Barr Group Limited, Credit Agricole Corporate and Investment Bank, Credit Sail Limited and Calyon Hong Kong Limited. Credit SaILS were sophisticated debt securities marketed and sold to the New Zealand public in 2006 with the prospect of 8.5% interest income and capital protection. $91.5 million was raised through the offer. Credit SaILS failed in 2008 and the notes are now virtually worthless. On the information available, the Commission estimates the total loss for those eligible for a share of the settlement fund is around $70 million. The Commission has reached the view that Credit SaILS was marketed and sold in a way that is likely to have breached the Fair Trading Act, in that: * the representations that Credit SaILS were 'capital protected' were misleading and deceptive; * Credit SaILS were marketed to the average investor; * Credit SaILS were highly complex and unsuitable for the average investor; and * the companies who marketed and sold Credit SaILS ought to have known that the product was unsuitable for the average investor. The companies have not admitted liability and do not accept the Commission's views on these matters. "In our view there were sufficient grounds to file legal proceedings under the Fair Trading Act against the companies who promoted and sold Credit SaILS. While the Commission could have issued proceedings, those proceedings would likely have been lengthy, costly and with no absolute certainty of a successful outcome," said Dr. Mark Berry, Chair of the Commerce Commission. "We believe that a settlement fund of $60 million, available to investors from March next year, is an excellent outcome. We expect this settlement to restore eligible investors to around 85% of their original investment in Credit SaILS. We place high priority on seeking redress for businesses and consumers and we are pleased we are able to achieve this outcome for the investors," said Dr. Berry. More than 3,000 investors bought Credit SaILS. Most of these were retail investors with a limited understanding of complex financial products like Credit SaILS. A significant number of investors are now over 70 years of age. Under this settlement, investors will now receive about $850 for every NZ$1,000 they invested in Credit SaILS. Without this settlement, investors could expect to get about NZ$20 from their NZ$1,000. "It is crucial in relation to complex financial products that investors are provided with accurate information, particularly about the risks of a product. We believe these mostly elderly investors bought Credit SaILS because they were told that their capital was protected," said Dr. Berry. "Consumers must be able to rely on representations made." Eligible investors are defined in the settlement agreement as including anyone who purchased Credit SaILS before Nov. 1, 2008, and who still hold those notes, and anyone who purchased Credit SaILS before Nov. 1, 2008, who has sold the notes at any time for less than 85 cents per note. A trustee will be appointed to distribute the settlement fund to eligible investors. Investors do not need to contact the Commerce Commission or the companies - the trustee will write to all investors shortly. The Commission's investigation has included liaison with the Financial Markets Authority, which is aware of the Commission's settlement and has agreed not to take action against the companies in light of this settlement. The settlement deed and further information about the settlement, including more details about the settlement offer and the pay-out process, are available on the Credit Sails Investigation page. ================= S I N G A P O R E ================= CALOMEL PTE: Creditors' Proofs of Debt Due Jan. 7 ------------------------------------------------- Creditors of Calomel 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: Leow Quek Shiong Gary Loh Weng Fatt c/o BDO LLP 21 Merchant Road #05-01 Royal Merukh S.E.A. Building Singapore 058267 CLEARVIEW SOLUTIONS: Court Enters Wind-Up Order ----------------------------------------------- The High Court of Singapore entered an order on Dec. 21, 2012, to wind up the operations of Clearview Solutions Pte Ltd. Nicky Backjoo Kim filed the petition against the company. The company's liquidators are: JLC ADVISORS LLP 22 Malacca Street #07-03 RB Capital Building Singapore 048980 DAUPHIN SHIPYARD: Court Enters Wind-Up Order -------------------------------------------- The High Court of Singapore entered an order on Dec. 7, 2012, to wind up the operations of Dauphin Shipyard Pte Ltd. Compass Steel International Pte Ltd filed the petition against the company. The company's liquidator is: Kung Seah Lim (Mr) c/o Kung Seah Lim Consultancy Pte Ltd 336 Smith Street #05-309 Singapore 050336 GUAN SHENG: Court Enters Wind-Up Order -------------------------------------- The High Court of Singapore entered an order on Dec. 7, 2012, to wind up the operations of Guan Sheng Oil Singapore Pte Ltd. The Comptroller of Income Tax filed the petition against the company. The company's liquidator is: Aw Eng Hai M/s Foo Kon Tan Grant Thornton LLP 47 Hill Street, #05-01 Singapore Chinese Chamber Of Commerce & Industry Building Singapore 179365 LLC INVEST: Creditors' Proofs of Debt Due Jan. 14 ------------------------------------------------- Creditors of LLC Invest Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Jan. 14, 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 =============== X X X X X X X X =============== * Upcoming Meetings, Conferences and Seminars --------------------------------------------- Feb. 20-22, 2013 AMERICAN BANKRUPTCY INSTITUTE VALCON Four Seasons Las Vegas, Las Vegas, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Apr. 10-12, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Spring Conference JW Marriott Chicago, Chicago, Ill. Contact: http://www.turnaround.org/ Apr. 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Annual Spring Meeting Gaylord National Resort & Convention Center, National Harbor, Md. Contact: 1-703-739-0800; http://www.abiworld.org/ June 13-16, 2013 AMERICAN BANKRUPTCY INSTITUTE Central States Bankruptcy Workshop Grand Traverse Resort, Traverse City, Mich. Contact: 1-703-739-0800; http://www.abiworld.org/ July 11-13, 2013 AMERICAN BANKRUPTCY INSTITUTE Northeast Bankruptcy Conference Hyatt Regency Newport, Newport, R.I. Contact: 1-703-739-0800; http://www.abiworld.org/ July 18-21, 2013 AMERICAN BANKRUPTCY INSTITUTE Southeast Bankruptcy Workshop The Ritz-Carlton Amelia Island, Amelia Island, Fla. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 8-10, 2013 AMERICAN BANKRUPTCY INSTITUTE Mid-Atlantic Bankruptcy Workshop Hotel Hershey, Hershey, Pa. Contact: 1-703-739-0800; http://www.abiworld.org/ Aug. 22-24, 2013 AMERICAN BANKRUPTCY INSTITUTE Southwest Bankruptcy Conference Hyatt Regency Lake Tahoe, Incline Village, Nev. Contact: 1-703-739-0800; http://www.abiworld.org/ Oct. 3-5, 2013 TURNAROUND MANAGEMENT ASSOCIATION TMA Annual Convention Marriott Wardman Park, Washington, D.C. Contact: http://www.turnaround.org/ Nov. 1, 2013 AMERICAN BANKRUPTCY INSTITUTE NCBJ/ABI Educational Program Atlanta Marriott Marquis, Atlanta, Ga. Contact: 1-703-739-0800; http://www.abiworld.org/ Dec. 2, 2013 BEARD GROUP, INC. 19th Annual Distressed Investing Conference The Helmsley Park Lane Hotel, New York, N.Y. Contact: 240-629-3300 or http://bankrupt.com/ Dec. 5-7, 2013 AMERICAN BANKRUPTCY INSTITUTE Winter Leadership Conference Terranea Resort, Rancho Palos Verdes, Calif. Contact: 1-703-739-0800; http://www.abiworld.org/ ********* 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 ***