/raid1/www/Hosts/bankrupt/TCRAP_Public/130207.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, February 7, 2013, Vol. 16, No. 27
Headlines
A U S T R A L I A
ADELPHI HOTEL: Placed in Liquidation Over Tax Liability
* Arrears Higher for Aussie Investment vs. Owner Mortgages
* Falling Rates Boost Aussie Mortgages Recovery, Fitch Reports
C H I N A
CHINA BOTANIC: Gets NYSE MKT Listing Non-Compliance Notice
CHINA GREEN: Albert Wong Replaces Madsen as Accountants
GLORIOUS PROPERTY: Weak 2012 Results No Impact on Moody's B3 CFR
H O N G K O N G
APC SOLUTIONS: Liu and Yen Step Down as Liquidators
CAPE TRANS: Tong Lap Hong Steps Down as Liquidator
CAPITALAND (HK): Tong Lap Hong Steps Down as Liquidator
EASTERN COTTON: Tam Kwan Ping Ignatius Steps Down as Liquidator
ETERNAL CHARTER: Creditors' Proofs of Debt Due Feb. 25
POLY VISION: Members' Final Meetings Set for Feb. 27
SELCO SALVAGE: Annual Meetings Set for Feb. 20
STAR GLOBAL: Members' Annual General Meeting Set for Feb. 8
STAR GLOBAL INT'L: Members' Annual General Meeting Set for Feb. 8
TAI ON: Creditors' Proofs of Debt Due Feb. 25
TAMAKI INTERNATIONAL: Final Meetings Set for Feb. 28
TDA INTERIORS: Commences Wind-Up Proceedings
I N D I A
DARSHAN FOODS: CARE Assigns 'C' Rating to INR9.08cr LT Loan
GARG & COMPANY: CARE Reaffirms 'B+' Rating on INR10.4cr Loans
IND-BARATH THERMAL: CARE Assigns 'BB' Rating to INR1,079cr Loans
JAIN INFRAPROJECTS: CARE Lowers Rating on INR1,912cr Loan to 'D'
JAYABHARAT CREDIT: CARE Reaffirms 'C' Rating on INR5.63cr Loan
KINGFISHER AIRLINES: Posts INR755cr Net Loss in 4th Qtr 2012
KINGFISHER AIRLINES: Staff to Move Court For Winding KFA Up
MAHADEO CONSTRUCTION: CARE Reaffirms BB Rating on INR6.73cr Loan
PRAKASH VANIJYA: CARE Lowers Rating on INR300cr Loan to 'CARE D'
SHAILJA TEXPRINTS: CARE Reaffirms 'B+' Rating on INR7cr Loans
SHRI MUNIVEER: CARE Assigns 'B+' Rating to INR12.83cr Loans
SWAJIT ABRASIVES: CARE Reaffirms 'B+' Rating on INR6cr LT Loan
I N D O N E S I A
BATAVIA AIR: Travel Agents Group Accuses Bankruptcy Foul Play
ENERGI MEGA: S&P Revises Outlook to Stable; Affirms 'B' CCR
J A P A N
PANASONIC CORP: Fitch Affirms 'BB' LT IDR; Outlook Negative
N E W Z E A L A N D
CAPITAL + MERCHANT: Two Australia-based Directors Plead Guilty
MAINZEAL PROPERTY: PricewaterhouseCoopers Appointed Receivers
S I N G A P O R E
MMI INTERNATIONAL: Fitch Affirms 'BB-' Issuer Default Ratings
NJ TRADING: Court to Hear Wind-Up Petition Feb. 8
PARCO SEALS: Creditors' Proofs of Debt Due March 2
PROTOCOL INTERNATIONAL: Meetings Slated for Feb. 19
SUPREME VOYAGER: Court to Hear Wind-Up Petition Feb. 8
SPN INTERNATIONAL: Creditors' Proofs of Debt Due Feb. 15
WINFORT GLOBAL: Applies for Judicial Management
T H A I L A N D
* Thai Banks' Rising Loan Concentration Not Risk, Fitch Says
V I E T N A M
VIETNAM SHIPBUILDING: Credit Suisse Accept Proposed Revamp Plan
- - - - -
=================
A U S T R A L I A
=================
ADELPHI HOTEL: Placed in Liquidation Over Tax Liability
-------------------------------------------------------
Patrick Stafford at SmartCompany reports that the iconic
Melbourne Adelphi Hotel has shut its doors, another victim of the
harsh hospitality environment throttled by a high Australian
dollar, and consumers who are spending fewer dollars on hotels
interstate.
The hotel has been closed by its parent company, Gabriel Hotels
Group, following a winding-up order issued by the Australian
Taxation Office.
Liquidator Gary Fettes -- gfettes@rodgersreidy.com -- of Rodgers
Reidy told SmartCompany the business itself has now been placed
in liquidation. The company owes around AUD150,000, the report
notes.
"They had an outstanding ATO taxation liability and the ATO wound
them up," the report quotes Mr. Fettes as saying.
The Adelphi has been noted around the world as a boutique hotel
landmark, appearing in several best-of lists and collections.
* Arrears Higher for Aussie Investment vs. Owner Mortgages
----------------------------------------------------------
Fitch Ratings says in a new report that severe delinquencies are
higher for investment mortgages in Australia than owner-occupier
mortgages. The 90+ day delinquency rates of Australian investment
loans have on average been 1.16x higher than owner-occupied
mortgages in the decade to September 2012; the ratio was higher
at 1.51x as of September 2012.
Fitch analysis shows that regions characterised by high 90+ day
delinquencies for investment properties do not, in general,
experience the same trends in owner-occupied mortgages. This
indicates that mortgages for investment purposes in these areas
might be affected by different variables (e.g. house prices,
rental yield) and in different ways than owner-occupied
mortgages. Among the regions with a high concentration of
investment loans, inner-metropolitan areas have low delinquency
rates while tourism and/or coastal urbanisation areas tend to
have above-average 90+ day delinquency rates. Among the 20 worst
performing regions by 90+ day arrears for investment loans as at
end September 2012 were South West Western Australia (1.53%),
Gold Coast East (1.24%) and Sunshine Coast (1.1%).
Fitch assumes a 25% higher base default probability in the case
of a mortgage collateralised by an investment property compared
with an owner-occupied property. Fitch believes that investment
property loans will have a higher probability of default in an
economic downturn, as borrowers will try harder to protect their
primary residence than an investment property.
The report analyses the performance of the local residential
mortgage market using data covering around 15% of all mortgages
in Australia (approximately 1.1 million loans), as of September
2012, with a total outstanding balance of over AUD211bn and
approximately AUD43.3bn of loans classified as lending for
investment purposes.
The report, "Investment Versus Owner Occupied: Divergence in
Mortgage Performance across Australia ", is available on
www.fitchratings.com or by clicking on the link above.
* Falling Rates Boost Aussie Mortgages Recovery, Fitch Reports
--------------------------------------------------------------
Fitch Ratings has said in its latest update of Australian
mortgage performance that the Reserve Bank of Australia's (RBA)
decision to reduce the cash rate by 50bp in May 2012 and 25bp in
June 2012 has improved mortgage performance across all Australian
states and regions. Delinquencies decreased to 1.2% nationwide at
end-September 2012, down from 1.6% at end-March 2012 and
significantly below the five-year average of 1.56%.
Queensland remained the worst performing state, with a 30+ day
delinquency rate of 1.41%, but down from 1.86% at end-March 2012.
Most of the country's 10 worst performing regions were in
Queensland.
Regions southwest of Sydney, west of Melbourne, and south of
Brisbane - where serviceability is key to mortgage performance -
benefited most from the cuts. For example, Ipswich (QLD) and
Fairfield-Liverpool (NSW) had the largest decreases in 30+ day
delinquency rates among all Australian regions since end-March
2012, with falls of 100bp to 1.71% and 1.82%, respectively - 2.5x
the national average decrease.
Delinquency rates in Logan City (QLD) and Outer South Western
Sydney (NSW) and Outer Western Sydney (NSW) also decreased
significantly, by 91bp, 79bp, and 76bp, respectively.
The October and December 2012 cash rate cuts are expected to
benefit Australian mortgage performance in Q113, and offset
seasonal Christmas spending. The effect of interest rate
movements is reflected in mortgage performance with a three- to
four-month lag. Regions in which serviceability is key to
mortgage performance, such as New South Wales (NSW), are expected
to benefit the most.
Gold Coast East (QLD) replaced Fairfield-Liverpool (NSW) as the
worst-performing region in Australia despite a small improvement
in mortgage performance, with a 30+ day delinquency rate of
2.44%, and 16 out of 1,000 borrowers in arrears. Fitch expects
Gold Coast East to remain the worst performing region in Q113, as
Fairfield-Liverpool (NSW) is expected to benefit more from the
Q412 cash rate cuts.
Tourist areas are less affected by monetary policy and more by
the high Australian dollar, housing prices, occupancy rates and
rental yields. This is evident in popular tourist destinations
being among the worst performing postcodes. Nelson Bay (NSW), a
well-known tourism destination in NSW's Hunter region, remained
the worst performing postcode by value of mortgages in arrears,
with a 30+ day delinquency rate of 6.6%.
Lower Northern Sydney (NSW), Inner Brisbane in Queensland (QLD),
Northern Middle Melbourne in Victoria (VIC) and Central
Metropolitan Perth in Western Australia (WA) were the best
performing regions in their respective states, by both mortgage
value and number of mortgages in arrears.
The full impact of the flooding and bushfires that hit Australia,
and in particular Queensland, in January 2013 has yet to be
quantified. Mortgages whose property or borrower is located in
the affected areas might experience hardship as was the case in
2011. Fitch will continue to monitor developments closely as the
impact of the natural disasters on Australian mortgages becomes
clearer.
The report, "Australian Mortgage Delinquency by Postcode - 30
September 2012", analyses the performance of the local
residential mortgage market using data covering around 15% of all
mortgages in Australia (approximately 1.1 million loans), as of
September 2012, with a total outstanding balance of over
AUD211bn.
=========
C H I N A
=========
CHINA BOTANIC: Gets NYSE MKT Listing Non-Compliance Notice
----------------------------------------------------------
China Botanic Pharmaceutical Inc. on Feb. 5 disclosed that on
January 31, 2013, the Company received a notice of failure to
satisfy continued listing standards from the NYSE MKT LLC.
The Letter indicates that although the Company has resolved the
Audit Committee continued listing deficiency referenced in the
letter from the Exchange dated January 12, 2013, the staff of the
NYSE MKT Corporate Compliance Department has determined that
based upon its review of the Form NT 10-K filed on January 30,
2013 and subsequent discussions, the Company will be unable to
timely file its Form 10-K for the period ended October 31, 2013
by February 14, 2013. In the Company's Form NT 10-K, the Company
indicated that management has encountered delays in completing
the Company's consolidated financial statements and corresponding
delays in completing its annual audit. As such, information
necessary for the filing of a complete and accurate report on
Form 10-K cannot not be gathered within the prescribed time
period without unreasonable effort and expense. The Company
remains committed to completing its Form 10-K at the earliest
possible time, but does not currently anticipate its completion
within the fifteen calendar days following the prescribed due
date. The timely filing of the Form 10-K is a condition for the
Company's continued listing on the Exchange under Sections 134
and 1101 of the NYSE MKT LLC Company Guide.
In order to maintain its listing, the Company must submit a plan
of compliance by February 14, 2013 advising of actions that
Company has taken or will take to comply with Sections 134 and
1101 of the Company Guide by May 1, 2013. The Compliance
Department will evaluate the Compliance Plan and make a
determination as to whether or not to accept the Compliance Plan
by May 1, 2013. In the event the Compliance Plan is accepted,
the Company will remain listed during the plan period and will be
subject to periodic review to determine whether progress is being
made pursuant to the Compliance Plan. In the event that a
Compliance Plan is not submitted, accepted or progress is not
made under the Compliance Plan during the plan period, the
Exchange staff may initiate delisting proceedings in accordance
with Section 1010 and Part 12 of the Company Guide.
The Company intends to submit a Compliance Plan by February 14,
2013 and continues its efforts to file the Form 10-K at the
earliest possible time.
About China Botanic Pharmaceutical Inc.
China Botanic Pharmaceutical Inc. -- http://www.renhuang.com--
is engaged in the research, development, manufacturing, and
distribution of botanical products, bio-pharmaceutical products,
and traditional Chinese medicines ("TCM"), in the People's
Republic of China. All of the Company's products are produced at
its three GMP-certified production facilities in Ah City,
Dongfanghong and Qingyang. The Company distributes its botanical
anti-depression and nerve-regulation products, biopharmaceutical
products, and botanical antibiotic and OTC TCMs through its
network of over 3,000 distributors and over 70 sales centers
across 24 provinces in China.
CHINA GREEN: Albert Wong Replaces Madsen as Accountants
-------------------------------------------------------
China Green Creative, Inc., dismissed Madsen & Associates CPA's,
Inc as its independent registered accounting firm.
Madsen reported on the Company's financial statements for the
years ended Dec. 31, 2011, and 2010. Their opinion did not
contain an adverse opinion or a disclaimer of opinion, and was
not qualified as to uncertainty, audit scope, or accounting
principles but was modified as to a going concern.
The dismissal was not a result of any disagreement with the
accounting firm.
Immediately following the dismissal of Madsen, the Company's
Board of Directors commenced contacting and interviewing other
auditors in order to engage another firm as its independent
auditor. Effective Jan. 30, 2013, the Company engaged Albert Wong
& Co as its new Independent registered public accounting firm.
The decision to engage Albert Wong & Co was approved by the
Company's board of directors. During its two most recent fiscal
years, and during any subsequent interim period prior to the date
of Albert Wong & Co's engagement, the Company did not consult the
new auditor regarding any matter.
About China Green
China Green Creative, Inc., located in Shenzhen, Guangdong
Province, People's Republic of China, is principally engaged in
the distribution of consumer goods and electronic products in the
PRC.
After auditing the 2011 results, Madsen & Associates CPA's, Inc.,
in Salt Lake City, Utah, expressed substantial doubt about China
Green Creative's ability to continue as a going concern. The
independent auditor noted that the Company does not have the
necessary working capital to service its debt and for its planned
activity.
The Company reported a net loss of $344,901 on $1.93 million of
revenues for 2011, compared with a net loss of $3.35 million on
$2.78 million of revenues for 2010.
The Company's balance sheet at June 30, 2012, showed $5.43
million in total assets, $7.43 million in total liabilities, and
a $2 million total stockholders' deficit.
GLORIOUS PROPERTY: Weak 2012 Results No Impact on Moody's B3 CFR
----------------------------------------------------------------
Moody's Investors Service reports that Glorious Property Holdings
Limited's B3 corporate family rating and Caa1 senior unsecured
debt rating are not affected by its weak FY2012 results, which
had been expected and factored into its ratings and negative
outlook.
"The current ratings and outlook continue to reflect Moody's
concern over Glorious' weak sales performance and financial
profile," says Franco Leung, a Moody's Assistant Vice President
and Analyst.
The company's sales remain adversely affected by the regulatory
measures imposed by the central government on property purchases.
It reported contract sales of RMB10.9 billion for FY2012, down
18% year-on-year. This figure is also 16% below its full-year
sales target of RMB13 billion.
The company also reported a 12.5% year-on-year decrease in book
revenue to around RMB8.4 billion in FY2012. Its gross profit
margin dropped significantly to 23% from about 40% due to
delivery of low-margin products. These resulted in low EBITDA and
interest coverage in FY2012.
Moody's expects Glorious' credit metrics to remain weak; adjusted
EBITDA/ interest ratio will likely remain below 2x for 2013, and
which will position it at the B3 rating level.
"Despite the subdued financial performance, Glorious' liquidity
position has improved in the past year, driven primarily by
proactive management of its debt maturity profile," adds Leung,
who is also the lead analyst for Glorious.
While total debt remained at around RMB15.8 billion at end-2012,
its short-term debt dropped to RMB6.1 billion from about RMB10
billion at end-June 2012. Cash coverage of its short-term debt
improved to about 54% at end-2012 from 35% at end-June 2012.
"Looking ahead, better execution capability, as reflected in
growth in sales and improvement in profit margins, or further
improvement in its debt maturity and liquidity profile, could
return the outlook to stable," says Leung.
The company reported contract sales of RMB1.5 billion in January
this year, a significant increase from the same month last year.
The principal methodology used in this rating was the Global
Homebuilding Industry Methodology published in March 2009.
Glorious Property Holdings Limited is a medium-sized residential
property developer based in Shanghai. It has now expanded to
eastern and northern China. It had a land bank of around 16.2
million sqm (GFA) in Shanghai, Beijing, Tianjin, and several
second-tier cities in the Yangtze River Delta and Northeast China
at end-December 2012. Glorious was listed on the Stock Exchange
of Hong Kong in 2009. Its chairman, the major shareholder, owns
68.4%, and also has a shipbuilding company listed in Hong Kong.
================
H O N G K O N G
================
APC SOLUTIONS: Liu and Yen Step Down as Liquidators
---------------------------------------------------
Stephen Liu Yiu Keung and David Yen Ching Wai stepped down as
liquidators of APC Solutions (HK) Limited on Jan. 22, 2013.
CAPE TRANS: Tong Lap Hong Steps Down as Liquidator
--------------------------------------------------
Tong Lap Hong stepped down as liquidator of Cape Trans Co.
Limited on Jan. 18, 2013.
CAPITALAND (HK): Tong Lap Hong Steps Down as Liquidator
-------------------------------------------------------
Ha Yue Fuen Henry stepped down as liquidator of Capitaland (HK)
Consultancy and Management Limited on Jan. 25, 2013.
EASTERN COTTON: Tam Kwan Ping Ignatius Steps Down as Liquidator
---------------------------------------------------------------
Tam Kwan Ping Ignatius stepped down as liquidator of Eastern
Cotton Mills Limited on Jan. 25, 2013.
ETERNAL CHARTER: Creditors' Proofs of Debt Due Feb. 25
------------------------------------------------------
Creditors of Eternal Charter International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Feb. 25, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on Feb. 25, 2013.
The company's liquidator is:
Mat Ng
JLA Asia Limited
20/F, Henley Building
5 Queen's Road
Central, Hong Kong
POLY VISION: Members' Final Meetings Set for Feb. 27
----------------------------------------------------
Members of Poly Vision Group Company Limited will hold their
final meetings on Feb. 27, 2013, at 2:30 p.m., at 17th Floor, Li
Ka Shing Tower, The Hong Hong Polytechnic University, Hung Hom,
Kowloon, in Hong Kong.
At the meeting, Heung Sai Kit, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
SELCO SALVAGE: Annual Meetings Set for Feb. 20
----------------------------------------------
Members and creditors of Selco Salvage Limited will hold their
annual meetings on Feb. 20, 2013, at 10:00 a.m., and 11:00 a.m.,
respectively at 21st Floor, Edinburgh Tower, The Landmark, 15
Queen's Road, Central, in Hong Kong.
At the meeting, Rainier Lam, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
STAR GLOBAL: Members' Annual General Meeting Set for Feb. 8
-----------------------------------------------------------
Members of Star Global Services Limited will hold their annual
general meeting on Feb. 8, 2013, at 10:00 a.m., at 25/F, Wing On
Centre, 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
STAR GLOBAL INT'L: Members' Annual General Meeting Set for Feb. 8
-----------------------------------------------------------------
Members of Star Global International (H.K.) Limited will hold
their annual general meeting on Feb. 8, 2013, at 10:30 a.m., at
25/F, Wing On Centre, 111 Connaught Road Central, in Hong Kong.
At the meeting, Kong Chi How Johnson, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
TAI ON: Creditors' Proofs of Debt Due Feb. 25
---------------------------------------------
Creditors of Tai On Quarry Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by Feb. 25, 2013, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Jan. 11, 2013.
The company's liquidator is:
Kin-Keung Chow
1901A, 19/F
One Harbourfront
18 Tak Fung Street
Hung Hom, Kowloon
Hong Kong
TAMAKI INTERNATIONAL: Final Meetings Set for Feb. 28
----------------------------------------------------
Creditors and members of Tamaki International Limited will hold
their final meetings on Feb. 28, 2013, at 10:00 a.m., and 10:30
a.m., respectively at 5th Floor, Ho Lee Commercial Building, 38-
44 D'Aguilar Street, Central, in Hong Kong.
At the meeting, Yuen Tsz Chun Frank, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
TDA INTERIORS: Commences Wind-Up Proceedings
--------------------------------------------
Members of TDA Interiors Hong Kong Limited, on Jan. 15, 2013,
passed a resolution to voluntarily wind-up the company's
operations.
The company's liquidators are:
Cosimo Borrelli
Chan Ho Yin
Level 17, Tower 1
Admiralty Centre
18 Harcourt Road
Hong Kong
=========
I N D I A
=========
DARSHAN FOODS: CARE Assigns 'C' Rating to INR9.08cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE C' rating to the bank facilities of Darshan
Foods Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 9.08 CARE C Assigned
Rating Rationale
The rating assigned to the bank facilities of Darshan Foods
Private Limited is primarily constrained by its poor debt
servicing record, below average financial risk profile
characterized by low profitability margins, leveraged capital
structure and stressed liquidity position. The rating is further
constrained by lack of backward integration, competition with
established brands and exposure to risk inherent in meat
processing industry. The rating, however, take comfort from the
experience of the promoters of DFPL and reputed clientele with
strong distribution network.
Going forward, the ability of DFPL to improve its debt servicing
debt record, improvement in overall financial risk profile and
better working capital management would be the key rating
sensitivities.
Darshan Foods Private Limited was incorporated in 1992 as a
private limited company and promoted by Narinder Jaisinghani and
his brother Rajiv Jaisinghani. DFPL is engaged in
processing of raw meat (chicken, pork, beef) as well as
manufacturing of vegetarian products at its manufacturing
facilites located at Gurgaon and Bawal in Haryana. The company
procures raw meat/chicken from poultry farms in Delhi and
Chennai, Hyderabad. DFPL offers ready to cook (sausages, hams,
salamis, etc) and ready to eat (nuggets and fingers) products
under the brand 'Meatzza' and vegetarian products such as veg
kabab, finger chips etc in the ready to eat category which are
sold under the brand 'Veggie Delight'.
For FY12 (refers to the period April 1 to March 31), DFPL
achieved total operating income of INR50.03 crore with PBILDT and
PAT of INR4.23 crore and INR0.32 crore, respectively.
GARG & COMPANY: CARE Reaffirms 'B+' Rating on INR10.4cr Loans
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Garg & Company.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 10.40 CARE B+ Reaffirmed
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The rating continues to remain constrained by the fluctuating
total operating income of Garg & Company along with its weak
financial profile characterized by very low profitability
margins, moderately leveraged capital structure and weak debt
coverage indicators. The rating is further constrained by GCO's
exposure to volatility in the raw material prices, inherent
cyclical trends associated with the steel industry, risk
associated with project implementation and constitution of the
entity as a partnership firm.
The rating, however, continues to derive strength from the
experience of the partners, moderate operating cycle and direct
sourcing from reputed suppliers with whom it has long
association.
Going forward, the ability of the firm to improve its scale of
operations while improving profitability margins and timely
execution of project within the envisaged cost shall remain the
key sensitivities.
Garg & Company was initially constituted as a proprietorship
concern in 1972 by Harish Kumar Garg, and later on in 2009, it
was converted to a partnership firm with Lokesh Jain (aged
37 years), Kailash Jain (aged 30 years) and Harish Kumar Garg
(aged 60 years) as the partners having profit sharing ratio of
33%, 33% and 34%, respectively. GCO is a family-managed
business and the firm is engaged in the trading of steel
products, mainly CR strips, HR strips, HR coils and HR strips.
GCO is an authorized dealer of Ispat Industries Limited, Essar
Steel Limited, Steel Authority of India Limited, Bhushan Power &
Steel Limited (BPSL) and Jindal Steel & Power Limited. The firm
sells the products mainly in Punjab.
IND-BARATH THERMAL: CARE Assigns 'BB' Rating to INR1,079cr Loans
----------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of
Ind-Barath Thermal Power Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 1,079.61 CARE BB Assigned
Rating Rationale
The rating of Ind-Barath Thermal Power Limited is constrained by
delay in the commencement of the operations and generation of
power due to calibration works, high debt funded project, high
dependence on imported coal exposing to foreign currency
fluctuation risk and profitability vulnerable to coal prices due
to purchase of coal on spot basis. The rating, however, is
underpinned by the experience of the promoter and huge power
deficit in Tamil Nadu which augurs well for merchant power. The
ability of the company to stabilize the operations of the plant
and commencement of operations at captive mines or other
arrangement for long term supply of coal are the key rating
sensitivities.
Ind-Barath Thermal Power Limited is a special purpose vehicle
(77.41%) of Ind-Barath Power Infra Limited. It was incorporated
in January 2007 as Ind Barath Power (Karwar) Limited with the
objective of setting up of a 300 MW (150 *2) imported coal-based
power plant at Hankon Village in Uttara Kannada district of
Karnataka. However, despite getting all the statutory clearances,
including Environment Clearance and Consent for Establishment,
commencement of construction activities at project site had held
up on account of protests from local political/environmental
groups. In view of the inordinate delay in project construction
and consequent delay in project commissioning, the company
shifted the project to Tuticorin in Tamil Nadu. Consequent to the
change in location, the name of the company was changed to the
current nomenclature.
Also, the Commercial Operation Date (COD) of the Project
originally estimated in June 2010, was changed to June 2012,
leading to restructuring of Senior and Subordinated Debt. The
project has achieved COD on June 29, 2012, however, it has
commenced generation of power only from January 1, 2013.
JAIN INFRAPROJECTS: CARE Lowers Rating on INR1,912cr Loan to 'D'
----------------------------------------------------------------
CARE revises ratings assigned to the bank facilities of Jain
Infraprojects Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term bank facilities 1,912.0 CARE D Revised from
CARE BBB+
Long/Short term Bank 320.0 CARE D/CARE D
Facilities Revised from CARE
BBB+ Revised from
CARE BBB+/CARE A3+
Rating Rationale
The aforesaid revision in ratings takes into account delays in
debt servicing by JIL.
JIL, a medium sized construction company based in Kolkata, is the
flagship company of the Kolkata based Jain Group, owned by Mr.
Mannoj Kumar Jain. The company is engaged in execution of civil
construction contracts & turnkey projects mainly in the roads &
highways and housing sectors. The company had an order book of
INR3,508.1 crore as on March 31, 2012 vis a vis INR2,185.4 crore
as on September 30, 2011.
In FY12 (refers to the period April 2011 to March 2012), on a net
sales of INR1,200 crore (Rs.1,152.7 crore in FY11), JIL earned a
PAT of INR23.5 crore (Rs.53.0 crore in FY11). JIL earned PBILDT
of INR42.0 crore on net sales of INR426.0 crore in H1FY13.
Mismatch in cash flows on account of stretching of operating
cycle and lower than envisaged GCA due to slow execution of a few
large orders have led to liquidity pressure resulting in delay of
debt servicing by the company.
JAYABHARAT CREDIT: CARE Reaffirms 'C' Rating on INR5.63cr Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities and FD
of Jayabharat Credit Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Fund-based Bank Facilities 5.61 CARE C Reaffirmed
(Cash Credit, Term loan)
Non-Fund-based 0.02 CARE C Reaffirmed
Bank Facilities
Fixed Deposits 1.59 CARE C (FD)
Reaffirmed
Rating Rationale
The ratings factor in the high liquidity stress due to asset
quality pressures, fall in the profits and decreasing business
volumes. The ratings are further constrained by degrowth in the
operations and moderate scale of operations. The ratings draw
comfort from the long track record of Jayabharat Credit Limited
and demonstrated support by one of the promoters (The Motor and
General Finance Ltd).
Jayabharat Credit Ltd incorporated in 1943 is a public Ltd
company engaged in the business of new commercial vehicle
financing. The Motor and General Finance Ltd holds 43.45% equity
stake in the company as on December 31, 2012. JCL is
headquartered in Mumbai with three branch offices located in
Delhi, Ahmedabad and Bangalore. JCL is slowly reducing its
outside liabilities and also its business volumes.
KINGFISHER AIRLINES: Posts INR755cr Net Loss in 4th Qtr 2012
------------------------------------------------------------
The Times of India reports that grounded Kingfisher Airlines
reported a loss of INR755 crore in the October-December 2012
period - the first quarter when it did not fly. The airline's
auditors, however, said in their report that the Q3 loss would
have been way higher at INR1,090 crore if treatment of items like
loans, taxes and aircraft costs followed "generally accepted
accounting standards prevalent in India".
KFA had stopped flying on October 1 and its license expired on
December 31. With no income from operations, its Q3 FY13 loss is
70% higher than the INR444.3 crore lost in same quarter last
fiscal.
TOI says the auditor pointed out that KFA, whose net worth is
eroded, may have prepared its accounts on a going concern basis
but that assumption will be dependent on getting the airline's
license renewed by the Directorate General of Civil Aviation
(DGCA); fund infusion and resuming normal operations.
According to TOI, KFA CMD Vijay Mallya admitted in his notes with
the accounts that "the company has incurred substantial losses
and its net worth has been eroded" but said: "the company is in
constant dialogue with DGCA and is confident of meeting DGCA
requirements for renewal of the permit and re-start of its
operations at the earliest."
TOI relates that the limited review report of the auditor,
Bangalore-based B K Ramadhyani & Co, has disagreed with KFA's
recognition of deferred tax credit aggregating INR362.7 crore.
"In our opinion, the virtual certainty test for recognition of
deferred tax credit . . . is not satisfied," the report says.
However, Mr. Mallya says: "The management is of the opinion that
there is a virtual certainty supported by convincing evidence
against which such deferred tax will be realized, notwithstanding
that the auditors have opined to the contrary."
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.
According to The Times of India, the company began showing signs
of weakness in November 2011 when it ran out of money to operate
most of its flights and started reducing its flights to cut cost.
The airline also failed to pay salaries to its employees for a
long time following which the employees went on an indefinite
strike. Its flying license was finally suspended in October 2012,
TOI reported.
KINGFISHER AIRLINES: Staff to Move Court For Winding KFA Up
-----------------------------------------------------------
The Times of India reports that the employees of grounded
Kingfisher Airlines on Monday decided to move court for winding
up the nearly bankrupt company to recover their salary dues.
While they plan to move court as soon as Wednesday, some staffers
are also planning to hold agitation at the upcoming IPL matches
where KFA promoter Vijay Mallya's Bangalore team plays, the
report says.
Late last year, a similar threat by employees to agitate at the
Greater Noida F1 track where Mallya was supposed to be for his
team had led to a promise from the management to pay three
months' pay, out of which salary of two months were paid. This
time, however, employees are not issuing this threat to strike a
bargain, TOI relates.
"All section of employees met at IGI Airport's terminal 2 on
Monday to decide the future course of action. The meeting was
held there as many employees have not got the airport entry pass
now. The management has gone silent and there is just no word on
what they plan to do for clearing our dues," the report quotes a
senior employee, who is spearheading the agitation now, as
saying.
A section of former pilots has already started the winding up
proceedings against the company. The Delhi-based engineers had
also decided to adopt a similar course of action. "But now we are
joined by several other sections of employees and they too want
to file this petition with us now," the senior employee, as cited
by TOI, 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.
According to The Times of India, the company began showing signs
of weakness in November 2011 when it ran out of money to operate
most of its flights and started reducing its flights to cut cost.
The airline also failed to pay salaries to its employees for a
long time following which the employees went on an indefinite
strike. Its flying license was finally suspended in October 2012,
TOI reported.
MAHADEO CONSTRUCTION: CARE Reaffirms BB Rating on INR6.73cr Loan
----------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Mahadeo Construction Company.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 6.73 CARE BB Reaffirmed
Short-term Bank Facilities 2.50 CARE A4 Reaffirmed
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.
Rating Rationale
The ratings of the Mahadeo Construction Company continue to
remain constrained by the small scale of operations with low net
worth base, weak liquidity profile characterized by low current
ratio and high regulatory risks pertaining to mining and crushing
industry. The ratings also take into cognizance the constitution
of the entity as a partnership firm. However, the ratings
continue to derive comfort from the experience of the promoters,
its moderate capital structure and reputed client base with
comfortable order book position.
Going forward, the firm's ability to increase the scale of
operations while maintaining the profitability margins and timely
execution of the projects shall be the key rating sensitivities.
Mahadeo Construction Company is a partnership firm set up by
Anoop Kumar Singh, Arun Kumar Singh, Anil Kumar Singh and Umesh
Kumar Singh in 2002 as the partners, having profit sharing ratio
of 65%, 10%, 10% and 15%, respectively. The firm is engaged in
stone mining and crushing work related to road construction. The
firm is also involved in open excavation, underground excavation,
concreting, earth work, etc, and mainly operates in UP, Bihar,
Jharkhand, and Orissa. The firm supplies for both private as well
as government companies whereby it gets orders through bidding
and tendering process.
As per the audited results for FY12 (refers to the period April 1
to March 31), MCC reported a total operating income of INR24.16
crore with PAT of INR1.50 crore.
PRAKASH VANIJYA: CARE Lowers Rating on INR300cr Loan to 'CARE D'
----------------------------------------------------------------
CARE revises ratings assigned to the bank facilities of Prakash
Vanijya Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Short term Bank Facilities 300.0 CARE D Revised from
CARE A3+ (SO)
Proposed short term Bank Withdrawn
Facilities
Rating Rationale
The aforesaid revision in ratings takes into account delays in
debt servicing by Prakash Vanijya Pvt Ltd.
PVPL, incorporated in 2004, is engaged in trading of various
commodities (iron & steel products, textile fabric, coking coal,
soya bean oil, waste paper, cotton yarn, etc.) since April, 2009.
The company belongs to Kolkata based Jain group with JIL being
the flagship company of the group, engaged in civil construction
of roads & houses.
In FY12 (refers to the period April 2011 to March 2012), on a net
sales of INR634.7 crore (INR262.3 crore in FY11), PVPL earned a
PAT of INR4.3 crore (INR2.0 crore in FY11).
PVPL has not been able to collect majority of its dues and this,
along with the inability of JIL to provide support, has resulted
in LC devolvements which are yet to be regularized.
SHAILJA TEXPRINTS: CARE Reaffirms 'B+' Rating on INR7cr Loans
-------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Shailja Texprints.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 7.00 CARE B+ Reaffirmed
Rating Rationale
The rating continues to remain constrained due to the modest
scale of operations of Shailja Texprints along with its
constitution as a proprietorship concern and financial risk
profile marked by low profitability, weak solvency position and
weak liquidity. The rating is further constrained due to its
presence in a highly fragmented textile processing industry and
risk related to a fluctuation in the raw material price. The
rating, however, continues to derive strength from the
experienced proprietor.
The ability of SPL to increase its scale of operation coupled
with an improvement in the profitability in the light of raw
material price volatility and efficient management of working
capital remains the key rating sensitivities.
STP is a proprietorship concern, promoted by Mr Dinesh Kumar
Digga in March 2007. Dinesh Kumar Digga has experience of more
than 15 years in the textile processing industry. He initially
started with Shailja Prints (SPS) in 2001 which was engaged in
hand-made and table printing of fabrics. Due to the high level of
labour intensity and old technology machinery, he established STP
in March 2007 and shifted the entire operations of SPS in STP.
STP mainly deals with the processing of cotton fabrics for ladies
night-wear and dress materials. It has installed processing
capacity of 300 Lakh Meter Per Annum (LMPA) as on March 31, 2012,
at Balotra in Rajasthan.
The firm also has the team of experienced designers and
technicians with inhouse design studio. It sells its products
under registered trademarks of 'Panihari', 'Panghat',
'Panchratna', 'Kundan', 'Shailja' and 'Pearl'. The firm sells its
products mainly in Maharashtra, Kolkata, Kerala, Karnataka, Tamil
Nadu and Andhra Pradesh through agents appointed for marketing
and distribution purpose. STP has associate concerns promoted by
other family members namely Annapurna Texofin Pvt Ltd which is
engaged in dyeing of fabrics, Shivan Mills which is engaged in
value addition printing for manufacturing of ladies suits, kurtis
and tops and Shivani Cotex Private Limited incorporated in 2009,
engaged in the processing of fabric.
During FY12 (refers to the period April 1 to March 31), STP
reported a total income of INR76.16 crore (FY11: INR62.23 crore)
with a net profit of INR0.38 crore (FY11: INR0.24 crore). As per
provisional result of 9MFY13, the company has achieved a total
income of around INR60 crore.
SHRI MUNIVEER: CARE Assigns 'B+' Rating to INR12.83cr Loans
-----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Shri Muniveer Spinning Mills.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 12.83 CARE B+ Assigned
Long-term/Short-term Bank 0.56 CARE B+/CARE A4
Facilities Assigned
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo change in case of withdrawal of capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of Shri Muniveer
Spinning Mills are primarily constrained due to the ongoing debt-
funded greenfield project for establishing spinning mills and
the stabilization risk associated with it. The ratings are
further constrained on the account of SMVS's presence in a highly
fragmented and competitive Man Made Fiber industry coupled with
higher supplier concentration risk and its constitution as a
partnership concern. The rating, however, derives strength from
the experience of the promoters in the textile industry.
Timely completion of the on-going project within envisaged cost
parameters and early stabilization of operations while achieving
the envisaged levels of capacity utilization would be the key
rating sensitivities.
Surat-based (Gujarat), SMVM was established as a partnership firm
in August 2010 by a group of 11 persons belonging to three
families namely Shah, Patel and Bhartiya family. During FY12, the
firm undertook implementation of a green field project for
setting up of spinning mill having nine rings (1,440 spindles per
ring having an operating installed capacity of 12,960 spindles as
on March 31, 2012) for manufacturing of 100% viscose yarn. The
total cost of the project was INR17.71 crore which is funded at a
project debt equity ratio of 1.56 times. Furthermore, the project
is almost completed and commercial production of the viscose yarn
has commenced from May 2012.
SWAJIT ABRASIVES: CARE Reaffirms 'B+' Rating on INR6cr LT Loan
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Swajit Abrasives Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 6.00 CARE B+ Reaffirmed
Short-term Bank Facilities 1.15 CARE A4 Reaffirmed
Rating Rationale
The ratings of Swajit Abrasives Private Limited continue to be
constrained by its small scale of operations with a limited
product portfolio and below average financial profile marked by
declining profitability margin and elongated operating cycle. The
ratings are further constrained by project risk and presence in
the highly competitive abrasives industry dominated by two major
players.
The ratings continue to factor in the benefits derived from the
company's long track record of operations and the experience of
the promoters.
Successful scheduled commercial operation of the enhanced
facilities along with an improvement in the overall financial
risk profile and efficient management of working capital cycle
are the key rating sensitivities.
Swajit Abrasives Private Limited, incorporated in 2000, is a part
of the Aurangabad-based "Swajit Group", promoted by Mr Avinash V.
Chavan in 1992. The parent company Swajit Engineering Private
Limited (SEPL; rated CARE BB/CARE A4) is into manufacturing of
conveyor chains used in material handling and caters to sugar,
cement, fertilizers and allied industries.
SAPL is engaged in manufacturing of coated abrasives products at
its manufacturing facility at Aurangabad with installed capacity
of 4.20 lakh square meters per annum. Abrasives are mainly
used for grinding and surface finishing purpose and finds
applications in automobile, hand tool, furniture, electroplating,
leather and several other industries. SAPL sells its products
under "Abracut" and "Tiger" brands.
SAPL has also installed additional machinery at existing factory
location to enhance capacity to 2.5 times at a total cost outlay
of INR4 crore, funded through term loan of INR3 crore and balance
through the promoters' contribution.
=================
I N D O N E S I A
=================
BATAVIA AIR: Travel Agents Group Accuses Bankruptcy Foul Play
-------------------------------------------------------------
The Jakarta Globe reports that two associations housing thousands
of Indonesian travel agents have accused Batavia Air of
purposefully concealing a bankruptcy declaration and making off
with billions of rupiah deposited by the agents in the private
carrier's bank accounts.
According to the report, the Indonesian Ticket Agents Association
(Astindo)'s deputy chairwoman for ticketing, Pauline Suharno,
said that about 1,200 travel agents in Jakarta alone reported
that they may have lost a combined IDR18 billion (US$1.9 million)
they had deposited with Batavia before the Central Jakarta
Commercial Court declared it bankrupt on Jan. 30.
The Globe relates that Ms. Pauline said the 1,200 travel agents
were members of the Jakarta chapters of Astindo and the
Association of Indonesian Tour and Travel Agencies (Asita).
She added that there were up to 1,600 other travel agents
operating outside Jakarta who were similarly concerned about the
uncertain fate of the money they had deposited at Batavia, the
report relays.
"All we want is for the curators to separate our deposits from
Batavia's assets. It's travel agents' money; the money that we
deposited to ensure ticket issuance. It is not part of Batavia's
assets," Ms. Pauline told the Jakarta Globe.
"We have asked for audiences to discuss the issue with the
curators, the YLKI [the Indonesian Consumer Protection
Foundation], the House of Representatives and Batavia Air; but
none has responded to our request," she added.
The Globe adds Ms. Pauline accused Batavia of committing a
"criminal act," saying it had hidden the fact that it faced a
bankruptcy petition, allowing some travel agents to continue
depositing their money as of the afternoon on Jan. 29, before the
court delivered its verdict.
According to the Globe, Batavia abruptly ended operations at
12:00 a.m. on Jan. 31 after the Central Jakarta Commercial Court
ruled in favor of a bankruptcy petition filed by US-based
aircraft leasing firm the International Lease Finance Corporation
concerning a $4.68 million debt.
Batavia reportedly failed to pay leasing fees for an Airbus A330
fleet it leased from the US firm at the agreed upon deadline on
Dec. 13, 2012. The airline was planning to use the fleet to serve
Indonesian hajj pilgrims, but failed to win a bid for that, the
report adds.
Indonesia-based Batavia Air -- http://www.batavia-air.co.id/--
operated domestic flights to around 30 destinations and
international services to China and Malaysia. Its main base is
Soekarno-Hatta International Airport, in Jakarta.
ENERGI MEGA: S&P Revises Outlook to Stable; Affirms 'B' CCR
-----------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on PT Energi Mega Persada Tbk. to stable from positive.
At the same time, S&P affirmed its 'B' long-term
corporate credit rating and its 'axBB-' long-term ASEAN regional
scale rating on the Indonesia-based exploration and production
company. S&P also withdrew its 'B' issue rating on EMP's
proposed senior secured notes. The proposed notes were to be
issued by EMP's subsidiary, EMP International Holdings Pte. Ltd.,
and were guaranteed by EMP and its subsidiaries.
"We revised the outlook on EMP to reflect our view that the
company's liquidity has weakened because its proposed issuance of
senior secured notes is unlikely to proceed as planned," said
Standard & Poor's credit analyst Andrew Wong.
S&P assess EMP's liquidity as "less than adequate," as defined in
S&P's criteria. The company planned to refinance existing loans,
resolve outstanding covenant compliance issues, and lower its
high interest cost burden with the proposed issuance.
EMP has a US$200 million bank loan maturing in September 2013,
and is in breach of related covenants. However, S&P expects the
company to receive a waiver on the covenants, as has been the
case in the past, and refinance the bank loan.
EMP's financial risk profile is likely to remain "aggressive,"
given the company's large refinancing needs, high interest
payments, and sizeable capital expenditure of more than
US$250 million annually over the next two years. In S&P's
opinion, EMP has limited cash flows at the holding company
level, after accounting for debt servicing and capital
expenditure at the operating subsidiary. S&P's base-case
forecasts indicate that EMP can fund its capital expenditure
internally, but only with a thin cushion. However, the company
also has some flexibility in its capital expenditure plans.
S&P expects EMP's solid operating performance to continue in
2013. The company will likely generate sufficient cash flow to
pay for interest and capital expenditure, and sustain operations.
S&P assess EMP's management and governance as "weak," as defined
in S&P's criteria. This is reflected in management's inability
to control the execution of its financial strategies, and its
inadequate internal controls, which delayed filing of financial
information. This weakness overshadows the satisfactory
underlying operational and financial management at the individual
oil and gas blocks.
"The stable rating outlook reflects our expectation that EMP's
operating performance will continue to be in line with our
expectation," said Mr. Wong. "We anticipate that the company
will be able to refinance its debt maturities due in 2013 and
obtain waivers for its outstanding covenant breaches."
S&P is likely to lower the rating if: (1) EMP continues to face
difficulty in raising funds for refinancing beyond June 2013; or
(2) EMP's production slips or oil prices fall, causing a short-
term strain on cash flows.
S&P could raise the rating on EMP if: (1) the company refinances
its debt due in 2013 with a lower interest rate; (2) it maintains
a healthy capital structure post-refinancing, with no unexpected
sizable capital expenditure or acquisition; and (3) EMP smoothly
services its debt, cash flow movement between the company's oil
and gas blocks is unrestricted, and the company remains compliant
with its covenants.
=========
J A P A N
=========
PANASONIC CORP: Fitch Affirms 'BB' LT IDR; Outlook Negative
-----------------------------------------------------------
Fitch Ratings has affirmed Japan-based Panasonic Corporation's
Long-Term Foreign- and Local-Currency Issuer Default Ratings
(IDR) and local currency senior unsecured ratings at 'BB',
respectively. The Outlook on the Long-Term IDRs is Negative.
Simultaneously, Panasonic's Short-Term Foreign- and Local-
Currency IDRs have been affirmed at 'B'.
The speculative-grade ratings reflect Panasonic's weak
competitiveness in its core businesses, particularly in TVs and
panels, as well as weak cash generation from operations (CFO).
The Negative Outlook reflects the agency's view that the
company's financial profile is not likely to show a material
improvement in the short- to medium-term. Fitch acknowledges that
the company is heading in the right direction with its
restructuring efforts which could potentially lead to margin
recovery over the long-term. However, the company's turnaround
programme remains exposed to execution risk.
Fitch believes that Panasonic will continue to suffer from frail
economic conditions in both Japan and overseas and resultant weak
demand for its products, as well as from intense competition. In
particular, the company's market position in its core TV/panel
business suffers from strong competition from Korean
manufacturers, which has led to Panasonic downsizing its
business. Fitch, therefore, forecasts that the company's CFO will
remain weak and that any significant reduction in gross debt is
unlikely in the short- to medium-term.
Fitch believes that Panasonic's restructuring efforts,
principally through consolidation of its manufacturing facilities
and labour force rationalisation, will gradually help improve
operating margins as witnessed in the results for the nine months
of the financial year ending March 2013. However, the agency
remains cautious that the benefits of the restructuring may be
marred by the weak performance in Panasonic's electronics
products and components businesses and lead to a slow recovery in
profitability.
Revenue contracted 9% yoy to JPY5,440bn for 9MFYE13, due to
dampened demand for its major products, with a 2.2% EBIT margin
(9MFYE12: 0.7%). Panasonic has kept its FYE13 guidance for
JPY7,300bn revenue with a 1.9% EBIT margin. (FYE12: JPY7,846bn
revenue with a 0.6% EBIT margin)
What could trigger a rating action?
Negative: Future developments that may, individually or
collectively, lead to negative rating action include
- Funds flow from operations (FFO)-adjusted leverage remaining
over 4.5x (FYE12: 14x) on a sustained basis
- EBIT margin below 2% on a sustained basis
Positive: Future developments that may, individually or
collectively, lead to a revision of the Outlook to Stable include
- FFO-adjusted leverage falling below 4x on a sustained basis
- EBIT margin above 2.5% on a sustained basis
====================
N E W Z E A L A N D
====================
CAPITAL + MERCHANT: Two Australia-based Directors Plead Guilty
--------------------------------------------------------------
Two directors of Capital + Merchant Finance have entered guilty
pleas to three charges laid by the Financial Markets Authority
under the Securities Act 1978.
The Financial Markets Authority said in a statement that
Robert Gordon Sutherland and Colin Gregory Ryan, who reside in
Australia, pleaded guilty to two charges of making an untrue
statement in a registered prospectus and one charge of
distributing advertisements which included an untrue statement.
They will be sentenced on March 15, 2013, at the High Court in
Auckland.
Under the New Zealand Securities Act and the Australian
Commonwealth Corporations Act, their convictions mean they are
automatically banned from managing companies in New Zealand and
Australia for five years.
Last week, another Capital + Merchant director, Owen Tallentire,
pleaded guilty to the same charges.
"The law requires Directors to ensure that investors receive
accurate information in disclosure documents. FMA regards the
guilty pleas of Mr. Sutherland and Mr. Ryan as reflecting their
failure in their obligations to investors in this respect," said
FMA Head of Enforcement, Belinda Moffat.
The prosecution against Capital + Merchant directors Neal
Nicholls and Wayne Douglas is scheduled to begin on February 11.
About Capital + Merchant
Capital + Merchant Finance Ltd, operating in property finance,
was one of the bigger finance companies in New Zealand.
Capital + Merchant Finance, along with subsidiary Capital +
Merchant Investments Ltd., went into receivership on Nov. 23,
2007, due to breaches in respect of general security agreements
issued by the companies in favor of creditor Fortress Credit
Corporation (Australia) 11 Pty Ltd. Fortress appointed Tim
Downes and Richard Simpson of Grant Thornton, chartered
accountants, while trustee Perpetual Trust have called in
KordaMentha.
Capital + Merchant owed NZ$167.1 million to about 7,500
investors. Fortress reportedly has a prior charge over assets and
was owed around NZ$70 million in total.
MAINZEAL PROPERTY: PricewaterhouseCoopers Appointed Receivers
-------------------------------------------------------------
Colin McCloy -- colin.mccloy@nz.pwc.com -- and David Bridgman --
david.bridgman@nz.pwc.com-- partners from PricewaterhouseCoopers
have been appointed receivers to Mainzeal Property and
Construction Limited and associated entities as a result of a
request made by its director to BNZ.
Mainzeal's director, Richard Yan advised that following a series
of events that had adversely affected the Company's financial
position coupled with a general decline in major commercial
construction activity, and in the absence of further shareholder
support, the Company could no longer continue trading.
Receiver Colin McCloy said "we are committed to doing the best we
can for the suppliers, staff and subcontractors of Mainzeal. We
will work closely with all parties involved with Mainzeal
contracts to determine the best way forward."
Mainzeal Property and Construction Ltd is a New Zealand-based
property and construction company. The company forms part of the
Mainzeal Group, which is owned by Richina Inc, a privately held
New Zealand-based company with a strong China focus.
=================
S I N G A P O R E
=================
MMI INTERNATIONAL: Fitch Affirms 'BB-' Issuer Default Ratings
-------------------------------------------------------------
Fitch Ratings has affirmed Singapore-based MMI International
Limited and its parent company, Precision Capital Private Limited
at Long-Term Issuer Default Ratings (IDR) 'BB-'. The Outlook is
Stable. Fitch has also affirmed MMI's 8% senior secured USD300
notes due 2017 at 'BB-'. The notes are fully guaranteed by PCPL
and certain other subsidiaries of MMI based outside China.
MMI's ratings reflect its concentration risk, its acquisition
strategy as well as its position as a major vendor of hard drive
disks (HDD) for US-based Seagate Technology PLC (Seagate,
'BB+'/Positive) and moderate-to-high barriers of entry.
Seagate contributed 82% of MMI's revenue in the financial year
ended June 2012. Fitch expects MMI's FY13 revenue and EBITDA to
decline, along with its EBITDA margin (to 16%-17% from 19.5% in
FY12), due to lower product prices as supply of HDD components
normalises and returns to pre-Thailand flood levels. FY13
financial performance will also suffer from flat HDD shipment
volume due to slower personal computer (PC) demand and on-going
replacement of HDDs by solid state drive (SSDs), particularly in
tablets and notebooks.
MMI has a track record of inorganic growth including the
acquisition of three smaller component makers in FY11. Although
Fitch does not rule out the risk of further debt-funded
acquisitions, it expects the company to maintain its net
debt/EBITDA target of 3.0x.
Positively, the consolidation of the HDD industry during 2012,
which reduced the number of participants to three - Seagate,
Western Digital and Toshiba - from five, should help limit
aggressive price competition in HDD and eventually help MMI.
Fitch believes that MMI is likely to maintain its credit profile
given its ability to generate solid free cash flows (FCF/revenue:
4%-5%), supported by its low capex requirements net of insurance
claims (capex/revenue: 6%). During FY12, MMI's funds from
operation (FFO)-adjusted leverage improved to 3.1x (FY11: 5.5x)
due to higher product pricing on tighter supply conditions as a
result of the Thailand floods.
What Could Trigger A Rating Action?
Negative: Future developments that may, individually or
collectively, lead to a negative rating action include:
- FFO-adjusted leverage of above 4x on a sustained basis
- FFO interest coverage below 3.0x (FY12: 6.4x) on a sustained
basis
- Significant fall in cost per gigabyte differential between
SSDs and HDDs, resulting in lower demand for HDDs, or if
Seagate moves its production capacity towards SSDs
Fitch notes that the senior secured notes are structurally
subordinated to the existing and future debt of certain MMI
subsidiaries, particularly those based in China, which do not
guarantee the notes. Such subsidiaries contributed 48% of MMI's
consolidated revenue for FY12 but represented just 16% and 9% of
MMI's assets and liabilities respectively. The rating of the
notes may be downgraded if MMI raises structurally super-senior
debt or if creditors' claims at non-guarantor subsidiaries rise
to a level that threatens expected recovery on the notes.
Positive: Future developments that may, individually or
collectively, lead to the outlook being revised to stable
include:
- FFO-adjusted leverage below 3.0x on a sustained basis
- FFO interest coverage above 8.0x on a sustained basis
- Upgrade of Seagate's IDR to 'BBB-'
NJ TRADING: Court to Hear Wind-Up Petition Feb. 8
-------------------------------------------------
A petition to wind up the operations of NJ Trading & Construction
Pte Ltd will be heard before the High Court of Singapore on
Feb. 8, 2013, at 10:00 a.m.
Westlite Dormitory (Tuas) Pte Ltd (formerly known as 5 Star
Dormitory Management Pte Ltd) filed the petition against the
company on Jan. 24, 2013.
The Petitioner's solicitors are:
M/s Moey & Yuen
133 Cecil Street
#09-03 Keck Seng Tower
Singapore 069535
PARCO SEALS: Creditors' Proofs of Debt Due March 2
--------------------------------------------------
Creditors of Parco Seals Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by
March 2, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Andrew Grimmett
Lim Loo Khoon
6 Shenton Way Tower Two
#32-00, Singapore 068809
PROTOCOL INTERNATIONAL: Meetings Slated for Feb. 19
---------------------------------------------------
Protocol International Pte Ltd, which is in creditors' voluntary
liquidation, will hold their meetings for its creditors and
contributories on Feb. 19, 2013, at 9:00 a.m., and 9:30 a.m., at
80 Raffles Place, #26-01 UOB Plaza 1, in Singapore 048624.
Agenda of the meeting include:
a. to lay before the creditors and contributories a
liquidation account;
b. to receive a report from the liquidator on the course of
liquidation;
c. to approve liquidator's remuneration; and
d. to approve liquidator's release.
The company's liquidator is Shanker Iyer.
SUPREME VOYAGER: Court to Hear Wind-Up Petition Feb. 8
------------------------------------------------------
A petition to wind up the operations of Supreme Voyager Pte Ltd
will be heard before the High Court of Singapore on Feb. 8, 2013,
at 10:00 a.m.
Supreme Oilfield Services Pte Ltd filed the petition against the
company on Jan. 18, 2013.
The Petitioner's solicitors are:
M/S Oon & Bazul
36 Robinson Road
#08-01/06 City House
Singapore 068877
SPN INTERNATIONAL: Creditors' Proofs of Debt Due Feb. 15
--------------------------------------------------------
Creditors of SPN International Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by
Feb. 15, 2013, to be included in the company's dividend
distribution.
The company's liquidator is:
The Official Receiver
The URA Centre (East Wing)
45 Maxwell Road #06-11
Singapore 069118
WINFORT GLOBAL: Applies for Judicial Management
-----------------------------------------------
An application to place Winfort Global Ltd under judicial
management will be heard before the High Court of Singapore on
Feb. 15, 2013, at 10:00 a.m.
Chee Yoh Chuang and Abuthahir Abdul Gafoor of Stone Forest
Corporate Advisory Pte Ltd have been nominated as joint and
several judicial managers.
The Petitioner's solicitors are:
Stamford Law Corporation
10 Collyer Quay #27-00
Ocean Financial Centre
Singapore 049315
===============
T H A I L A N D
===============
* Thai Banks' Rising Loan Concentration Not Risk, Fitch Says
------------------------------------------------------------
Fitch Ratings says rising loan concentration in major Thai banks,
prompted by the recent spate of large corporate M&A transactions,
should remain manageable based on the banks' sound loss-
absorption qualities. This is underlined in the Stable Outlooks
of Fitch-rated banks with no material changes expected to most
major banks' risk appetite and to regulatory prudential standards
over the medium term.
Rapid expansion of corporate loans in Thailand since 2010, and
more recently in 2012 the issuance of USD funding by major Thai
banks, both underscored growing demand for funding by large Thai
corporates for investments, domestically and overseas. In a sign
of increasing concentration risk, the major Thai banks' loan
exposures to the top 20 borrowers relative to equity have risen
since 2010. However, this remains generally in line with, and for
certain banks lower than, regional peers' ratios of 100%-150%.
On balance, strong core capitalisation and loan loss reserves,
together with steady profitability, should continue to help
protect most major Thai banks' credit profiles against loan
concentration and other associated risks. Nevertheless, Fitch
cautions that signs of aggressive underwriting leading to
excessive loan concentration and heightened asset quality risks,
and weakened loss-absorption capacities would likely be negative
for the banks' ratings.
Fitch further takes comfort from the Bank of Thailand's (BoT) cap
on financial institutions' maximum daily exposures to a single
party or a group of related parties at 25% of their total capital
funds. Thai banks are further required to limit the aggregate of
large exposures (exceeding 10% of a bank's total capital funds)
to 300% of a bank's total capital funds. Such limits are largely
in line with many other banking sectors in the region.
BoT has, however, on occasions waived the single borrower limit
on a case-by-case basis, largely for companies which it considers
to carry strong growth potential, or to be of a sound financial
standing. Fitch notes that such waivers are temporary in nature
and are not likely to result in more lenient regulatory limits on
concentration risk in Thailand.
=============
V I E T N A M
=============
VIETNAM SHIPBUILDING: Credit Suisse Accept Proposed Revamp Plan
---------------------------------------------------------------
Katrina Nicholas at Bloomberg News reports that Credit Suisse
Group AG will accept a debt restructuring plan that Vietnam
Shipbuilding Industry Group put to its creditors, helping to
resolve negotiations surrounding a default that occurred more
than two years ago, according to a person familiar with the
matter.
The Swiss lender sent a letter to about 20 other creditors of the
Hanoi-based company, telling them it plans to accept the proposal
and outlining the rationale for them to do the same, said the
person, who asked not to be identified because the matter is
private, told Bloomberg.
Bloomberg relates that the person said Vietnam Shipbuilding
Industry Group proposed swapping a $600 million loan, plus
accrued and unpaid interest, with bonds guaranteed by Vietnam's
finance ministry. State-owned Vinashin, as the company is known,
received the $600 million financing in 2007 from a group of
institutions led by Credit Suisse, according to data compiled by
Bloomberg.
According to Bloomberg, Moody's Investors Service said Vinashin
missed the first $60 million payment on the principal in December
2010, putting the loan into default.
Vinashin needs creditors holding at least 75% of the $600 million
loan by value and 51% by number to consent to its proposal to be
able to file a scheme of arrangement with a U.K. court,
Bloomberg's source said.
Vinashin, whose debts of more than US$4 billion pushed it to the
brink of bankruptcy, in December 2010 reportedly defaulted on the
first US$60 million installment of a US$600 million loan arranged
by Credit Suisse in 2007.
Vinashin got a US$600 million loan in 2007 from banks led by
Credit Suisse Group AG that paid interest of 1.5 percentage
points more than the London interbank offered rate, according to
data compiled by Bloomberg. While it made a US$6.8 million
interest payment on Dec. 23, 2010, the company missed a Dec. 20,
2010, deadline to make a US$60 million principal payment and
asked lenders for a one-year extension, Bloomberg related.
Vietnam Shipbuilding Industry Group is a state-owned shipbuilding
company.
*********
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., Washington, D.C., 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 2013. 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$775 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 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***