/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130221.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 21, 2013, Vol. 16, No. 37 Headlines A U S T R A L I A ILLAWARRA SERIES: Fitch Affirms 'BB' Rating on Class B Certs. NEWCASTLE KNIGHTS: Tinkler Settles Two ATO Debt Cases WESTERN LIBERTY: Moody's Downgrades Senior Debt Rating to 'Ba1' * Moody's Completes Review of CIRs from two Australian RMBS Deals C H I N A AMERICAN NANO: Incurs $446,000 Net Loss in Fiscal 1st Quarter CHINACAST EDUCATION: Funds Sue Deloitte & Touche Over Losses EVERGRANDE REAL: S&P Revises Outlook to Stable; Affirms 'BB' CCR GLORIOUS PROPERTY: S&P Assigns 'B-' Rating to Proposed US$ Notes MCE FINANCE: Moody's Assigns B1 Rating to US$1-Bil. Senior Bonds H O N G K O N G ENGINEERING LIMITED: Chan and Chow Step Down as Liquidators GOLDEN YEAR: Creditors' Meeting Set for March 1 HENLY ENGINEERING: Annual Meetings Set for March 14 HEP B: Members' Final General Meeting Set for Feb. 28 HK BIO: Annual Meetings Set for March 8 HK VISION: Chan Mei Bo Mabel Steps Down as Liquidator HK YANG: Annual Meetings Set for March 8 HOI FAI: Members' Final General Meeting Set for March 19 IDONA INVESTMENT: Members' Final Meeting Set for March 12 JOINT WEALTHY: Annual Meetings Set for March 14 KING LAU: Members' Final Meeting Set for March 12 LONGWAY CONSTRUCTION: Annual Meetings Set for March 14 MACQUARIE EQUITIES: Creditors' Proofs of Debt Due March 11 MACQUARIE FUTURES: Creditors' Proofs of Debt Due March 11 MARTINAIR FAR: Members' Final Meeting Set for March 8 I N D I A AROCHEM INDUSTRIES: CRISIL Puts 'B' Ratings on INR75MM Loans ASHWANI KUMAR: CRISIL Cuts Ratings on INR84.1MM Loans to 'B+' CINEOLA DIGITAL: CRISIL Rates INR50MM Cash Credit at 'B' EMPOWER GENSETS: CRISIL Assigns 'C' Ratings to INR32.8MM Loans EXODUS FUTURA: Delays in Loan Payment Cues CRISIL to Junk Ratings MAINI GROUP: CRISIL Rates INR70MM Term Loan at 'CRISIL B' MAYA ENGINEERING: CRISIL Puts 'C' Ratings on INR45.5MM Loans RANGA RAJU: CRISIL Assigns 'B+' Ratings to INR180MM Loans RAVI OFFSET: CRISIL Assigns 'B-' Ratings to INR205MM Loans VARA LAKSHMI: CRISIL Assigns 'B' Ratings to INR53MM Loans * Telecom Regulator Sees Limited Prospect for Reviving 3 Firms I N D O N E S I A * INDONESIA: Flood Losses Manageable For Insurers, Fitch Says J A P A N RENESAS ELECTRONICS: May Replace President Akao This Month N E W Z E A L A N D KITCHEN HOUSE: Customers Seek to Recover Deposits MAINZEAL PROPERTY: Unit Owes More Than NZ$14MM, Liquidator Says MAINZEAL PROPERTY: Receivers Nearly Completes Initial Assessment - - - - - ================= A U S T R A L I A ================= ILLAWARRA SERIES: Fitch Affirms 'BB' Rating on Class B Certs. ------------------------------------------------------------- Fitch Ratings has affirmed 8 tranches from four transactions from the Illawarra series of residential mortgage-backed securities (RMBS). These transactions are backed by pools of first-ranking Australian residential mortgages originated by IMB Limited. The rating actions are: Illawarra Series 2004-1 RMBS Trust: -- AUD56.2m Class A-2 (ISIN AU300ILWC028) affirmed at 'AAAsf'; Outlook Stable -- AUD12.5m Class B (ISIN AU300ILWC036) affirmed at 'BBsf'; Outlook Stable Illawarra Series 2005-1 RMBS Trust: -- AUD71.6m Class A (ISIN AU300ILWD018) affirmed at 'AAAsf'; Outlook Stable -- AUD13m Class B (ISIN AU300ILWD026) affirmed at 'BBsf'; Outlook Stable Illawarra Series 2006-1 RMBS Trust: -- AUD107.4m Class A (ISIN AU3FN0000139) affirmed at 'AAAsf'; Outlook Stable -- AUD12.5m Class B (ISIN AU3FN0000147) affirmed at 'BBsf'; Outlook Stable Illawarra Series 2010-1 RMBS Trust: -- AUD144.0m Class A (ISIN AU3FN0010468) affirmed at 'AAAsf'; Outlook Stable -- AUD11m Class AB (ISIN AU3FN0010476) affirmed at 'AAAsf'; Outlook Stable The affirmations reflect Fitch's view that credit enhancement levels are able to support the notes' current ratings. The sequential amortization of the notes has resulted in an improvement in credit enhancement for all senior notes. The transactions have performed well, with the credit quality and performance of the loans in the collateral pools reflecting IMB's conservative lending standards. Since closing, the 30+ days arrears levels for the four Illawarra RMBS transactions have been below Fitch's 30+days Dinkum Index. As at Dec. 31, 2012, Illawarra Series 2004-1 RMBS Trust had the highest level of arrears at 1.03%, while Illawarra Series 2005-1 RMBS Trust recorded no loans in arrears. The transactions have experienced low levels of losses and all losses have been covered by LMI or excess spread. These pools all have lender mortgage insurance provided by QBE Lenders' Mortgage Insurance Limited (AA-/Stable), Genworth Financial Mortgage Insurance Pty Ltd and Housing Loan Insurance Corporation. Of the four transactions, Illawarra Series 2006-1 RMBS Trust experienced the highest cumulative claims on LMI at 0.04% of the original balance, while Illawarra Series 2010-1 Trust has not experienced any losses to date. NEWCASTLE KNIGHTS: Tinkler Settles Two ATO Debt Cases ----------------------------------------------------- The Australian reports that the Federal Court has dismissed two tax debt cases against troubled millionaire businessman Nathan Tinkler's sports interests, including the Newcastle Knights, after settlements were reached between the parties. The Australian relates that in the court in Sydney on February 20, the Australian Taxation Office cases against the Knights and Mr. Tinkler's Hunter Sports Group were dismissed "on the basis an accommodation has been reached" but a third tax debt case involving the Newcastle Jets soccer club was adjourned until April 5 along with other actions involving businesses associated with Mr. Tinkler. The report, citing documents filed in the Federal Court in Sydney, discloses that the Knights owed more than AUD1.4 million to the tax office, the Jets owed just over AUD1 million, while Hunter Sports Group was AUD184,000 in the red. The dismissal of the case against the Knights dispels fears over the club's future, the report notes. According to the report, the ATO had applied for the Knights, the Jets and the Hunter Sports Group to be wound up due to unpaid debts. The court ordered that in the cases of the two dismissed actions, the defendants pay the ATO AUD4,538 in costs for each case, The Australian. As reported in the Troubled Company Reporter-Asia Pacific on Dec. 12, 2012, smh.com.au related that former billionaire Nathan Tinkler's legal battles continue, with the ATO confirming it will seek to wind up one of his main private entities, Tinkler Group Holdings Administration, over unspecified debts. Two of Mr. Tinkler's companies, Mulsanne Resources and Patinack Farm Administration, are in liquidation and another, TGHA Aviation, is in receivership. The ATO has also filed wind-up proceedings against Queen St Capital. WESTERN LIBERTY: Moody's Downgrades Senior Debt Rating to 'Ba1' ------------------------- ------------------------------------- Moody's Investors Service downgraded the senior secured rating of Western Liberty Group Finance Pty Ltd to Ba1 from Baa2. The outlook on the rating remains negative. WLGF is the financing vehicle for Western Liberty Group Pty Ltd, which is a special purpose entity set up to design, construct, operate, and provide long term maintenance for Perth Courts in Western Australia under a public private partnership. Ratings Rationale: "The rating downgrade reflects continued refinancing challenges facing WLGF due to prevailing credit margins remaining materially above the levels incorporated in the original rating" says Mary Anne Low, a Moody's Analyst. WLGF has outstanding bonds of AUD77 million, which were issued in 2006 at a credit margin that is significantly lower than the currently prevailing level. The bond has a scheduled maturity in 2018 and a legal maturity in 2020. "These refinancing challenges, plus WLGF's inherently very high financial leverage, position the company's credit profile at a level that is no longer consistent with investment grade rating", adds Low. Moody's had previously highlighted that WLGF's rating was very weakly positioned and exposed to downward momentums. "WLGF has limited financial flexibility, given its high financial leverage, coupled with its inability to increase its revenues to provide the required coverage of increased debt service costs," says Low, adding, "As the proximity to maturity draws nearer, the absence of any committed capital restructure plans and/or any material improvement in capital market conditions adds further challenges to the Ba1 rating." Moody's notes that WLGF has mitigated its exposure to changes in the base interest rate (as opposed to the credit margin) through a forward starting swap mechanism commencing on the refinance date. WLGF's rating continues to consider its predictable cashflow generation prior to the refinance, despite some operating issues, given the project's low business risk profile underpinned by an availability-based revenue stream from the State of Western Australian (State; rated Aaa) and extensive subcontracting of its performance obligations at the courts. Moody's understands that day-to-day operations of the courts have improved over the last year, and WLGF have so far not been materially impacted by any performance issues as all abatements have been absorbed by the relevant subcontractors. Moody's notes that the project has successfully secured additional revenue from the State through its recent benchmarking exercise. However, the overall impact on WLGF's financial profile was minimal and did not alter its very weak financial profile, as the allowed increased in revenue will absorb the corresponding increases in costs of the project. The negative outlook reflects ongoing refinancing challenges, given the heightened credit margins and WLGF's weak coverage metrics and limited financial flexibility. Accordingly, the rating could undergo further downward trend over time. The rating is unlikely to see any positive momentum in the absence of a committed plan that addresses the refinancing task in 2018. The principal methodology used in this rating was Operating Risk in Privately-Financed Public Infrastructure (PFI/PPP/P3) Projects published in December 2007. * Moody's Completes Review of CIRs from two Australian RMBS Deals ----------------------------------------------------------------- Moody's Investors Service has concluded its review on two counterparty instrument ratings (CIRs) from two Australian RMBS transactions. The affected ratings are as follows: Issuer: Interstar Millennium Series 2004-1E Trust EUR14M Counter Instrument Rating - Class B Certificate, Downgraded to B1 (sf); previously on Nov 20, 2012 A3 (sf) Placed Under Review for Possible Downgrade Issuer: RHG Mortgage Securities Trust in respect of Series 2007- 1HE EUR24M Counterparty Instrument Rating Notes, Downgraded to B1 (sf); previously on Nov 20, 2012 A3 (sf) Placed Under Review for Possible Downgrade Ratings Rationale: The CIRs assigned to the two foreign currency swaps address the expected loss posed to the Royal Bank of Scotland (RBS, A3, negative outlook), the counterparty, in relation to the payment obligations of the relevant trusts. Interstar Millennium Series 2004-1E Trust Under the terms of this currency swap, if the trust only makes a partial interest or principal payment due to RBS, an Additional Termination Event will be triggered. The ability of the trust to make such payments reflects its ability to make timely interest and principal payments on the Class B notes. The CIR is therefore highly linked to the rating of the Class B notes, and no additional cash flow analysis or stress scenarios have been conducted. RHG Mortgage Securities Trust Series 2007-1HE Under the terms of this currency swap, if the trust makes a partial interest payment to RBS, then in such an instance, RBS is entitled to terminate the swap. The ability of the trust to make timely interest payments may be hampered if a servicer transfer event occurs. The transaction currently has 1% of the outstanding notes amount as liquidity. This amount is equivalent to around five weeks of senior fees and notes interest at stressed rates. The servicer in this transaction is RSPL, an unrated entity. RSPL has delegated its role to another unrated entity, Unisys Mortgage Processing (RHG) Pty Limited (Unisys). The security trustee, BNY Trust Company of Australia Pty Limited (BNY), is the cold standby back-up servicer to RSPL. There is no back-up servicing plan to address potential servicer transfer. In Moody's view, a servicing disruption of more than two months may occur if there is a servicer transfer event. Hence, the likelihood of an interest payment on the Class B swap being missed is high in the case of a servicer transfer. And if the swap is terminated, then termination payments payable by the trust will rank junior in the income waterfall. The rating of this CIR is downgraded to B1 (sf), reflecting the likelihood that Class B interest payments will be missed in the event that the unrated servicer needs to be transferred and in view of the expected loss to RBS on the swap termination payment. Moody's did not conduct any additional cash flow analysis or stress scenarios because the servicer is unrated. Rating Methodology The principal methodology used in these ratings was "Moody's Approach to Counterparty Instrument Ratings" published in February 2012. ========= C H I N A ========= AMERICAN NANO: Incurs $446,000 Net Loss in Fiscal 1st Quarter ------------------------------------------------------------- American Nano-Silicon Technologies, Inc., reported a net loss of $445,684 on $33,396 of revenues for the three months ended Dec. 31, 2012, compared with a net loss of $216,009 on $0 revenues for the three months ended Dec. 31, 2011. The Company's balance sheet at Dec. 31, 2012, showed $28.5 million in total assets, $14.7 million in total liabilities, and stockholders' equity of $13.8 million. The Company had negative cash flow from operations for the three months ended Dec. 31, 2012, and the Company's current liabilities exceed its current assets by $7.3 million as of that date. The Company suspended manufacturing operations in May 2011 as part of an effort to relocate the production facilities. The Company resumed limited production on Jan. 2, 2012. According to the regulatory filing, the current cash and inventory level will not be sufficient to support the Company's resumption of its normal operations and repayments of the loans. "These factors raise substantial doubt about the Company's ability to continue as a going concern. The Company will need additional funds to meet its operating and financing obligations until sufficient cash flows are generated from anticipated production to sustain operations and to fund future development and financing obligations." A copy of the Form 10-Q is available at http://is.gd/LJ3MPW About American Nano Based in Sichuan, China, American Nano-Silicon Technologies, Inc., has been primarily engaged in the business of manufacturing and distributing refined consumer chemical products through its subsidiaries, Nanchong Chunfei Nano-Silicon Technologies Co., Ltd., Sichuan Chunfei Refined Chemicals Co., Ltd., and Sichuan Hedi Veterinary Medicines Co., Ltd. The Company reported a net loss of $2.1 million on $89,378 of revenues in fiscal 2012, compared with net income of $3.4 million on $16.1 million of revenues in fiscal 2011. Friedman LLP, in New York, noted that the Company suspended its operations in May 2011. "In addition, the Company has suffered negative cash flows for the year ended Sept. 30, 2012, and has a net working capital deficiency as of Sept. 30, 2012, that raises substantial doubt about its ability to continue as a going concern." CHINACAST EDUCATION: Funds Sue Deloitte & Touche Over Losses ------------------------------------------------------------ Christie Smythe at Bloomberg News reports that Deloitte & Touche LLP was sued by a group of investment funds over "tens of millions of dollars in losses" allegedly caused by the accounting firm's failure to properly audit ChinaCast Education Corp. The funds, including Columbia Pacific Opportunity Fund LP and Fir Tree Value Master Fund LP, are seeking to recover losses in ChinaCast securities purchased from March 31, 2008, to March 30, 2012, Bloomberg relates citing a lawsuit filed in federal court in Manhattan. "Deloitte recklessly failed to conduct even the most basic audit procedures and blatantly violated numerous accounting standards," the funds said in the Feb. 15 complaint, citing losses in the "tens of millions," Bloomberg relays According to the report, the funds said in the complaint the company at issue in the case was formed originally as Great Wall Acquisition Corp., a special-purpose entity created with the intent to merge with another firm. In 2006, it purchased Chinese e-learning company ChinaCast Communication Holdings Ltd. and began trading on the Nasdaq exchange under the name of ChinaCast Education Corp., according to the filing obtained by Bloomberg. The company took out massive loans and pledged its assets to third parties without making disclosure to investors, according to the complaint. Its former chief executive officer also engaged in "brazen looting" by diverting $35 million in cash to parties outside the company, the funds alleged. ChinaCast said in May that Nasdaq had decided to delist it from the exchange, Bloomberg adds. EVERGRANDE REAL: S&P Revises Outlook to Stable; Affirms 'BB' CCR ---------------------------------------------------------------- Standard & Poor's Ratings Services said that it had revised the rating outlook on Chinese property developer Evergrande Real Estate Group Ltd. to stable from negative. At the same time, S&P affirmed the 'BB' long-term corporate credit rating on Evergrande and the 'BB-' issue rating on the company's outstanding senior unsecured notes. As a result of the outlook revision, S&P raised its Greater China credit scale rating on Evergrande to 'cnBBB-' from 'cnBB+' and that on the notes to 'cnBB+' from 'cnBB'. "We revised the outlook to reflect our view that a negative U.S. research report on the company in June last year has no long-term implications and that Evergrande will be less aggressive about funding growth with debt this year," said Standard & Poor's credit analyst Bei Fu. "We expect the company's sales execution to remain strong over the next 12 months, at least." S&P believes the negative impact of a report on Evergrande by Citron Research, a U.S. investment research company, has proved short-lived. S&P's view takes into consideration the following indicators: (1) the company has access to equity markets to raise funds and issued shares in January 2013; (2) its bond trading prices are in line with peers' and have risen in the past few months; (3) Evergrande was able to obtain an offshore bank loan for the first time, although it was a small amount; and (4) the company's onshore bank access and operations remain intact. Evergrande is likely to tackle its high leverage this year. Management intends to keep the debt at a reasonable level, which is not much higher than that at the end of 2012. S&P expects Evergrande to achieve or exceed its target sales of Chinese renminbi (RMB) 100 billion in 2013, given supportive market conditions and its large number of new projects for sale. S&P affirmed the ratings to reflect Evergrande's still-aggressive growth appetite and debt-funded expansion, limited track record in prudent financial management, and weak corporate governance framework. The rating also factors in the company's good execution, competitively priced products, and its large, geographically diversified, low-cost land bank. Evergrande also has good cost controls and growing economies of scale. "The stable outlook reflects S&P's expectation that Evergrande will adopt a more disciplined growth strategy and control its leverage over the next 12 months at least," said Ms. Fu. S&P expects the company to continue to execute its asset-churn model while maintaining largely stable profit margins. S&P could lower the rating if Evergrande deviates from its core business, or its sales and profitability are materially lower than S&P expects, or its debt-funded expansion is more aggressive than S&P anticipates. Downgrade triggers include a debt-to-EBITDA ratio of more than 5x, EBITDA interest coverage of less than 3x, and unrestricted cash of less than RMB10 billion on a sustainable basis. S&P could raise the rating if Evergrande demonstrates consistent and prudent financial management. A ratio of debt to EBITDA of less than 3x on a sustained basis would indicate such strength. GLORIOUS PROPERTY: S&P Assigns 'B-' Rating to Proposed US$ Notes ---------------------------------------------------------------- Standard & Poor's Ratings Services assigned its 'B-' issue rating and its 'cnB' Greater China regional scale rating to a proposed issue of U.S.-dollar denominated senior notes by Glorious Property Holdings Ltd. (B/Negative/--; cnB+/--). The ratings are subject to S&P's review of the final issuance documentation. The company intends to use the proceeds from the proposed issuance to refinance its existing debt and for general corporate purposes. The issue rating on Glorious' proposed notes is one notch lower than the corporate credit rating to reflect S&P's opinion that offshore noteholders would be materially disadvantaged, compared with onshore creditors, in the event of default. In S&P's view, the company's ratio of priority borrowings to total assets will remain above S&P's notching threshold of 15% for speculative-grade debt. The rating on Glorious reflects S&P's view that the company has "less than adequate" liquidity, as defined in S&P's criteria, a weak capital structure, and weak execution. Glorious' low land costs, improving geographic diversity, and established market position in Shanghai and nearby cities temper these weaknesses. S&P assess the company's business risk profile to be "weak" and its financial risk profile to be "highly leveraged," as S&P's criteria define these terms. S&P expects Glorious' operating performance to recover to an extent in the next 12 months. The company's contract sales, property delivery, and profit margin are likely to improve on new project launches and improved market conditions. Its performance in 2012 was weaker than S&P expected. The negative outlook on Glorious reflects the uncertainty regarding the magnitude of the recovery in the company's financial performance due to its weak project execution. The outlook also reflects S&P's view that Glorious' capital structure and cash flow adequacy over the next 12 months may remain weaker than those of peers with a similar rating. MCE FINANCE: Moody's Assigns B1 Rating to US$1-Bil. Senior Bonds ---------------------------------------------------------------- Moody's Investors Service has assigned a definitive B1 rating to the US$1 billion, 5.00%, eight-year senior unsecured bonds issued by MCE Finance Limited. The ratings outlook is stable. Ratings Rationale: Moody's definitive rating on this debt obligation affirms the provisional rating assigned on 29 January 2013. Moody's ratings rationale was set out in a press release published on the same day. The affirmation follows MCE Finance's successful completion of its US$ bond issuance, the final terms and conditions of which are consistent with Moody's expectations. The company will use the proceeds from the issuance to redeem its existing US$600 million bonds and to repay part of Melco Crown Entertainment Limited's RMB2.3 billion bonds. The principal methodology used in this rating was the Global Gaming Industry Methodology published in December 2009. MCE Finance Limited is a subsidiary of Melco Crown Entertainment Limited (unrated), which is majority-owned by the Australian-based gaming operator, Crown Limited (Baa2 stable) and Hong Kong-listed Melco International Development Ltd (unrated), with each company holding 33.36% equity stakes. MCE Finance also owns a 100% economic interest in Melco Crown Gaming (Macau) Limited. Melco Crown Gaming is the key operating company within the MCE Finance group. It holds one of six gaming concessions/sub- concessions in Macau. ================ H O N G K O N G ================ ENGINEERING LIMITED: Chan and Chow Step Down as Liquidators ----------------------------------------------------------- Chan Shu Kin and Chow Chi Tong stepped down as liquidators of YDS Engineering Limited on Feb. 8, 2013. GOLDEN YEAR: Creditors' Meeting Set for March 1 ----------------------------------------------- Creditors of Golden Year Limited will hold their meeting on March 1, 2013, at 11:30 a.m., for the purposes provided for in Sections 241, 242, 243, 244, 251 and 283 of the Companies Ordinance. The meeting will be held at 21/F, Tung Hip Commercial Building, 248 Des Voeux Road Central, in Hong Kong. HENLY ENGINEERING: Annual Meetings Set for March 14 --------------------------------------------------- Members and creditors of Henly Engineering Limited will hold their annual meetings on March 14, 2013, at 4:00 p.m., and 4:30 p.m., respectively at 62/F, One Island East, at 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung the company's liquidator will give a report on the company's wind-up proceedings and property disposal. HEP B: Members' Final General Meeting Set for Feb. 28 ----------------------------------------------------- Members of HEP B Alliance Limited will hold their final general meeting on Feb. 28, 2013, at 4:00 p.m., at Unit 2509, 25th Floor, 113 Argyle Street, Mongkok, Kowloon, in Hong Kong. At the meeting, Hsu Yau Que, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HK BIO: Annual Meetings Set for March 8 --------------------------------------- Members and creditors of Hong Kong Bio Products Manufacturing Limited will hold their annual meetings on March 8, 2013, at 10:30 a.m., and 11:00 a.m., respectively at 62/F, One Island East, 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung and David Yen Ching Wai, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. HK VISION: Chan Mei Bo Mabel Steps Down as Liquidator ----------------------------------------------------- Chan Mei Bo Mabel stepped down as liquidator of The Hong Kong Vision Foundation Limited on Jan. 31, 2013. HK YANG: Annual Meetings Set for March 8 ---------------------------------------- Members and creditors of Hong Kong Yang Yang Bio Products Company Limited will hold their annual meetings on March 8, 2013, at 11:30 a.m., and 12:00 p.m., respectively at 62/F, One Island East, 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung and David Yen Ching Wai, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. HOI FAI: Members' Final General Meeting Set for March 19 -------------------------------------------------------- Members of Hoi Fai Resource Management Limited will hold their final meeting on March 19, 2013, at 2:00 p.m., at Room 3, 8/F, Yue Xiu Building, 160 Lockhart Road, Wan Chai, in Hong Kong. At the meeting, Leung Chi Wing, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. IDONA INVESTMENT: Members' Final Meeting Set for March 12 --------------------------------------------------------- Members of Idona Investment Limited will hold their final general meeting on March 12, 2013, at 10:00 a.m., at 409, Jardine House, at 1 Connaught Place Central, in Hong Kong. At the meeting, Yam Kam Kwong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. JOINT WEALTHY: Annual Meetings Set for March 14 ----------------------------------------------- Members and creditors of Joint Wealthy Holdings Limited will hold their annual meetings on March 14, 2013, at 5:00 p.m., and 5:30 p.m., respectively at 62/F, One Island East, at 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung the company's liquidator will give a report on the company's wind-up proceedings and property disposal. KING LAU: Members' Final Meeting Set for March 12 ------------------------------------------------- Members of King Lau Development Company Limited will hold their final general meeting on March 12, 2013, at 3:00 p.m., at 409, Jardine House, at 1 Connaught Place Central, in Hong Kong. At the meeting, Yam Kam Kwong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. LONGWAY CONSTRUCTION: Annual Meetings Set for March 14 ------------------------------------------------------ Members and creditors of Longway Construction Engineering Limited will hold their annual meetings on March 14, 2013, at 10:00 a.m., and 10:30 a.m., respectively at 62/F, One Island East, at 18 Westlands Road, Island East, in Hong Kong. At the meeting, Stephen Liu Yiu Keung the company's liquidator will give a report on the company's wind-up proceedings and property disposal. MACQUARIE EQUITIES: Creditors' Proofs of Debt Due March 11 ---------------------------------------------------------- Creditors of Macquarie Equities (Asia) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 11, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 25, 2013. The company's liquidator is: Ng Kit Ying Zelinda Liou Kun Chiu Eddie 36/F, Tower Two, Times Square 1 Matheson Street Causeway Bay, Hong Kong MACQUARIE FUTURES: Creditors' Proofs of Debt Due March 11 --------------------------------------------------------- Creditors of Macquarie Futures (Asia) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 11, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Jan. 25, 2013. The company's liquidator is: Ng Kit Ying Zelinda Liou Kun Chiu Eddie 36/F, Tower Two, Times Square 1 Matheson Street Causeway Bay, Hong Kong MARTINAIR FAR: Members' Final Meeting Set for March 8 ----------------------------------------------------- Members of Martinair Far East Limited will hold their final general meeting on March 8, 2013, at 5:45 p.m., at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong. At the meeting, Susan Y H Lo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= AROCHEM INDUSTRIES: CRISIL Puts 'B' Ratings on INR75MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the bank facilities of Arochem Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 17.5 CRISIL B/Stable (Assigned) Bank Loan Facility Bank Guarantee 5.0 CRISIL A4 (Assigned) Cash Credit 57.5 CRISIL B/Stable (Assigned) The ratings reflect AI's modest scale of operations, working capital intensive operations and weak financial risk profile marked by a modest net worth, high gearing and subdued debt protection metrics. These rating weaknesses are partially offset by the benefits that AI derives from its partner's extensive experience in the dye intermediate segment in the chemicals industry. Outlook: Stable CRISIL believes that AI will continue to benefit from the extensive industry experience of its partners, over the medium term. The outlook may be revised to 'Positive' if the firm achieves significant and sustained improvement in its revenues and margins, while improving its capital structure. Conversely, the outlook may be revised to 'Negative' in case AI registers significant decline in its revenues or margins, elongation of its working capital cycle, or if it undertakes a larger-than-expected, debt-funded capital expenditure programme, resulting in weakening of its financial risk profile. AI was established as a partnership firm in 1962 by Mr. Sureshchandra R Gandhi and his family members. The current partners of the firm are Mr. Nilesh Gandhi (son of Mr. Sureshchandra Gandhi) and Mr. Manish Gandhi (nephew of Mr. Sureshchandra Gandhi). The firm manufactures dye intermediates (resist salt, metanilic acid, 3'3' dinitro diphenyl sulfone) which are used primarily in the textile industry. The firm's manufacturing facilities are in Vapi (Gujarat). AI reported a profit after tax (PAT) of INR1.5 million on net sales of INR242.5 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR2 million on net sales of INR233 million for 2010-11. ASHWANI KUMAR: CRISIL Cuts Ratings on INR84.1MM Loans to 'B+' ------------------------------------------------------------- CRISIL has downgraded its rating on the bank facilities of Ashwani Kumar and Co Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL BB/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 62 CRISIL B+/Stable (Downgraded from 'CRISIL BB/Stable') Term Loan 22.1 CRISIL B+/Stable(Downgraded from 'CRISIL BB/Stable') The downgrade reflects CRISIL's belief that AKCPL's liquidity will remain stretched over the medium term owing to increase in inventory holding and stretched receivables. Continuing the trend of higher inventory of about INR170 million seen in 2010-11 (refers to financial year, April 1 to March 31), the average inventory maintained by the company is expected to be in the range of INR150-160 million in 2012-13 and 2013-14 which is significantly higher than INR120-130 million maintained in the past four years from 2006-07 to 2009-10. Higher inventory and moderate scale of operations--as indicated by revenues of INR150 million to INR200 million--will result in inventory of more than 500 days over the medium term, up from 280 days in the past. The average debtors are also expected to be substantial, at around INR40 million over the medium term. Against these, the company does not get sufficient credit from suppliers. Increased working capital requirements are expected to result in almost full utilization of bank limits. Net cash accruals are expected to be between INR9.4 million and INR11.6 million over the medium term, tightly matched against term loan obligations of INR10.5 million per annum. Average net cash accruals are in turn a reflection of the modest scale of operations, average profitability, and high interest costs on bank limit, interest-bearing unsecured loans from promoters, and term loan. The term loan obligations are, however, expected to be repaid on time as these are secured with the annual rental income of INR10.9 million received on a leased facility. The rating reflects the working capital intensity and moderate scale in AKCPL's operations. These rating weaknesses are partially offset by the industry experience of AKCPL's promoters and moderate financial risk profile. Outlook: Stable CRISIL believes that AKCPL's liquidity will remain stretched over the medium term owing to working capital intensity in its operations. The outlook may be revised to 'Positive' if the company scales up its operations significantly, while maintaining profitability and significantly improving its working capital management, leading to a substantially stronger liquidity. Conversely, the outlook may be revised to 'Negative' if there is significant decline in AKCPL's profitability, or further stretch in liquidity profile, or if the company contracts sizeable term debt to acquire large assets, thereby weakening its capital structure. Incorporated in 1962, AKCPL trades in used industrial machinery. The company has dealt in more than 600 different sizes and types of machines--these include lathes, and milling, grinding, drilling, boring, shearing, moulding and welding machines. The products find application in industries such as auto ancillaries, and heavy and general engineering. CINEOLA DIGITAL: CRISIL Rates INR50MM Cash Credit at 'B' -------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the cash credit facility of Cineola Digital Cinema Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL B/Stable (Assigned) The rating reflects the start-up nature of Cineola's operations in the intensely competitive digital cinema industry. These rating weaknesses are partially offset by the funding support from the company's promoters. Outlook: Stable CRISIL believes that Cineola will benefit over the medium term from the funding support of its promoters. The outlook may be revised to 'Positive' if the company achieves a more-than-expected increase in its scale of operations, resulting in improved cash accruals. Conversely, the outlook may be revised to 'Negative' if the company records lower than expected accruals or if its working capital management deteriorates, impacting its liquidity. Cineola was set up in 2009 and is engaged in digital cinema exhibition. The operations of the company are managed by Mr. Antony John. EMPOWER GENSETS: CRISIL Assigns 'C' Ratings to INR32.8MM Loans -------------------------------------------------------------- CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank facilities of Empower Gensets Pvt ltd. (Empower Gensets Pvt ltd; part of the Maya group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 27.8 CRISIL C (Assigned) Bank Loan Facility Letter of credit & 7.2 CRISIL A4 (Assigned) Bank Guarantee Proposed Cash Credit 5.0 CRISIL C (Assigned) Limit The ratings reflect the Maya group's weak liquidity, as reflected in the instances of devolvement of the group's letter of credit facility over the past 12 months, wherein the dues were not serviced for beyond 30 days. The ratings also factor in the Maya group's modest scale of operations in the intensely competitive precision metal components industry and low profitability, and the group's average financial risk profile marked by a small net worth and average capital structure and debt protection metrics. These rating weaknesses are partially offset by the benefits that the Maya group derives from its promoters' extensive experience in the precision sheet metal components industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Empower Gensets Pvt Ltd and Maya Engineering. This is because both these entities, together referred to as the Maya group, are in the same line of business and have significant financial fungibilty. Moreover, both the entities are under the same management. The Maya group, set up in 1993 in Pune (Maharashtra), is involved in sheet metal fabrication. The group's key products include acoustic enclosures and gensets canopies and assemblies of the same. The Maya group's day-to-day operations are managed by Mr. Ajit Kuchu and his wife, Mrs. Sunita Kuchu. EXODUS FUTURA: Delays in Loan Payment Cues CRISIL to Junk Ratings ----------------------------------------------------------------- CRISIL has downgraded its rating on the long term bank facilities of Exodus Futura Knit Pvt Ltd to 'CRISIL D' from 'CRISIL B- /Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 53.00 CRISIL D (Downgraded from 'CRISIL B-/Stable') Term Loan 90.00 CRISIL D (Downgraded from 'CRISIL B-/Stable') The downgrade reflects instances of delays by EFKPL in servicing the interest and principal payment on its term loan; the delays have been caused by the company's weak liquidity on account of its large working capital requirements and high debt funded capex plans. EFKPL also has a weak financial risk profile, marked by weak debt protection metrics and exposure to risks related to its ongoing capex and stabilisation of operations at its unit. These rating weaknesses are partially offset by the extensive experience of the company's promoters in the garment industry. EFKPL was taken over by Mr. Anil Bagaria of Kolkata (West Bengal) in 2006. Initially, the company was trading in ready-made garments. Subsequently, it set up a garment-manufacturing facility with cutting, stitching, and embroidery units in Sonarpur (West Bengal). MAINI GROUP: CRISIL Rates INR70MM Term Loan at 'CRISIL B' --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the term loan facility of Maini Group of Educational Society. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 70 CRISIL B/Stable (Assigned) The rating reflects MGES's limited track record of operations, and average financial risk profile on account of low accruals in the initial year of its operations. These rating weaknesses are partially offset by the benefits that MGES derives from its association with the established brand name of Cambridge International School in the education services segment in North India, and the financial support that it receives from its promoters. Outlook: Stable CRISIL believes that MGES will continue to benefit over the medium term from the financial support that it receives from its promoters, and its association with the established brand name of Cambridge International School in North India. The outlook may be revised to 'Positive' in case MGES registers higher-than-expected accruals and, hence, an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the society registers deterioration in its financial risk profile on account of lower-than-expected cash accruals resulting from lower admissions or any debt-funded capital expenditure in the near future. MGES was formed in 2011 by Mr. Sukhdev Parsad Maini and Mr. Rajan Maini. The society has proposed to start a school in the name of Cambridge International School (CIS), in Nawanshahr (Punjab); the school is expected to commence its first academic year in April 2013. MAYA ENGINEERING: CRISIL Puts 'C' Ratings on INR45.5MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank facilities of Maya Engineering (Maya; part of the Maya group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 37.5 CRISIL C (Assigned) Bank Loan Facility Letter of Credit 4.5 CRISIL A4 (Assigned) Bank Guarantee 30.0 CRISIL A4 (Assigned) Cash Credit 8.0 CRISIL C (Assigned) The ratings reflect the Maya group's weak liquidity, as reflected in the instances of devolvement of the group's letter of credit facility over the past 12 months, wherein the dues were not serviced for beyond 30 days. The ratings also factor in the Maya group's modest scale of operations in the intensely competitive precision metal components industry and low profitability, and the group's average financial risk profile marked by a small net worth and average capital structure and debt protection metrics. These rating weaknesses are partially offset by the benefits that the Maya group derives from its promoters' extensive experience in the precision sheet metal components industry. For arriving at the ratings, CRISIL has combined the business and financial risk profiles of Maya and Empower Gensets Pvt Ltd. This is because both these entities, together referred to as the Maya group, are in the same line of business and have significant financial fungibilty. Moreover, both the entities are under the same management. The Maya group, set up in 1993 in Pune (Maharashtra), is involved in sheet metal fabrication. The group's key products include acoustic enclosures and gensets canopies and assemblies of the same. The Maya group's day-to-day operations are managed by Mr. Ajit Kuchu and his wife, Mrs. Sunita Kuchu. RANGA RAJU: CRISIL Assigns 'B+' Ratings to INR180MM Loans --------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Ranga Raju Rice Mill. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B+/Stable (Assigned) Proposed Long-Term 60 CRISIL B+/Stable (Assigned) Bank Loan Facility The rating reflects RRRM's modest scale of operations, low profitability in the intensely competitive rice milling industry, and weak financial risk profile marked by a small net worth and average debt protection ratios. These rating weaknesses are partially offset by the extensive industry experience of RRRM's promoters. Outlook: Stable CRISIL believes that RRRM will continue to benefit over the medium term from its promoters' extensive experience in the rice milling industry. The outlook may be revised to 'Positive' if the firm successfully improves its sales and profitability, leading to improvement in its financial risk profile, or benefits from significant capital infusion, leading to improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' if RRRM registers significant decline in its revenues and profitability, or in case of large capital withdrawals by its partners, or if the firm undertakes any large, debt-funded capital expenditure programme, leading to further deterioration in its financial risk profile. RRRM, a partnership firm based at Palakol (Andhra Pradesh), has been involved in the rice milling business since 1983. It is managed primarily by Mr. Ranga Raju and his family. The firm has production facility with capacity of up to 150 tonnes per day (tpd); the same is currently being utilised at about 120 tpd. RRRM reported a net profit of INR0.9 million on net sales of INR404.3 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR0.8 million on net sales of INR388.6 million for 2010-11. RAVI OFFSET: CRISIL Assigns 'B-' Ratings to INR205MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of Ravi Offset Printers and Publishers Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 6 CRISIL B-/Stable (Assigned) Proposed Long-Term 91 CRISIL B-/Stable (Assigned) Bank Loan Facility Bank Guarantee 25 CRISIL A4 (Assigned) Cash Credit 108 CRISIL B-/Stable (Assigned) The ratings reflect Ravi's weak financial risk profile, marked by high debt levels against low cash accruals, and modest scale of operations in the intensely competitive printing and publication industry. These rating weaknesses are partially offset by the extensive industry experience of Ravi's promoters and the funding support that the company receives from them. Outlook: Stable CRISIL believes that Ravi will continue to benefit over the medium term from its promoters' extensive experience in the printing and publication industry. The outlook may be revised to 'Positive' if the company's financial risk profile, particularly its liquidity, improves significantly, most likely because of significant increase in its cash accruals, or lower-than-expected debt levels, or further funding support from its promoters. Conversely, the outlook may be revised to 'Negative' if Ravi registers a decline in its sales and profitability, or if its liquidity weakens sharply, because of large working capital requirements or debt- funded capital expenditure, or in case of withdrawal of share application money. Ravi was established in 1994 as a private limited company by the Jain family in Agra (Uttar Pradesh). The company undertakes printing and publishing activity and has over 3000 publications. The promoter family has been in the publications business for over five decades. All the publications of the company are published under the name, Ravi. VARA LAKSHMI: CRISIL Assigns 'B' Ratings to INR53MM Loans --------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Vara Lakshmi Paraboiled Rice Mills Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 12 CRISIL B/Stable (Assigned) Long-Term Loan 41 CRISIL B/Stable (Assigned) The rating reflects VLPL's weak financial risk profile, marked by a small net worth, a high gearing, and weak debt protection metrics, and exposure to intense competition in the rice milling industry. These rating weaknesses are partially offset by the extensive industry experience of VLPL's promoter. Outlook: Stable CRISIL believes that VLPL will benefit over the medium term from the extensive industry experience of its promoter. The outlook may be revised to 'Positive' if the company improves its scale of operations and profitability, leading to an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if VLPL undertakes aggressive debt-funded expansions, or if its revenues and profitability decline substantially, thereby weakening its financial risk profile. VLPL, set up in 2012, is in the business of milling and processing paddy into rice, rice bran, broken rice, and husk. It is promoted by Mr. G Venkateshwarlu. VLPL commenced commercial operations in October 2012. * Telecom Regulator Sees Limited Prospect for Reviving 3 Firms -------------------------------------------------------------- George Smith Alexander & Anto Antony at Bloomberg News report that India's telecom regulator said there are "limited" prospects for reviving as many as three mobile-phone service providers as their equity has been wiped out because of rising losses. Earnings before interest, depreciation, taxes and amortization at two to three companies is negative, Rahul Khullar, chairman of the Telecom Regulatory Authority of India, told Bloomberg at an interview on February 18 at the Kotak Institutional Equities investor conference in Mumbai titled "Chasing Growth." "It's no longer possible for many companies to carry on like this," the report quotes Mr. Khullar as saying. "Small companies will anyway have to exit. They are bleeding. Turnaround prospects are limited." India's mobile operators have combined debts of $23 billion, Bloomberg discloses citing Cellular Operators Association of India, an industry lobby, whose members include Bharti Airtel Ltd., Vodafone Group Plc's local unit and Idea Cellular Ltd. Bloomberg says the government is seeking to raise at least INR700 billion ($12.9 billion) from the operators through spectrum sales and a one-time fee by March to help pare the budget deficit. Bloomberg recalls that mobile-phone companies including Tata Teleservices Maharashtra Ltd. and Norway's Telenor ASA lost subscribers after the Supreme Court canceled 122 licenses in February 2012 saying that their allocation had flouted rules. According to Bloomberg, Rajan Mathews, director general of COAI said service providers will have to "pay exponentially higher rates just to start from scratch if they want to continue." "But the people who were going to fold have already folded," he said. "Everyone remaining has deep pockets and are likely in it for the long haul," Mr. Mathews, as cited by Bloomberg, said. ================= I N D O N E S I A ================= * INDONESIA: Flood Losses Manageable For Insurers, Fitch Says ------------------------------------------------------------- Fitch Ratings says it does not expect insured losses from the recent flooding in Jakarta, Indonesia in January to trigger widespread solvency problems or excessive financial strain on the balance sheet of non-life insurers in the country. This is mainly due to the low insurance penetration rate in the country at less than 2% of GDP (based on Swiss Re Sigma estimates), and protection from reinsurance coverage. According to the National Disaster Mitigation Agency, the floods in Jakarta caused at least 41 fatalities. The flooding covered a total of 41 square kilometres of land (approximately 8% of Jakarta's total area). It affected a total of 74 urban wards in 31 sub districts across Jakarta's five municipalities, inundating more than 100,000 houses as well as some of the capital's main roadways. Government officials reported that total economic losses would reach IDR32trn (USD3.31bn). Fitch's initial assessment is that the insured losses will be markedly lower than the economic losses, although the extent of the impact will vary from one company to another. Insured losses are expected to top IDR3trn (USD311m) based on industry estimates. It will take time for international catastrophe modelling firms and local loss adjusters to finalize the insured loss amount. The majority of the losses are likely to have come from the motor and property insurance lines. However, since flood risks are not automatically included in many of the motor and property insurance policies in Indonesia, a sizeable proportion of those affected might remain uncovered by insurance protection. Indonesian non-life insurers also benefit from protection through their reinsurance coverage. Based on industry estimates, more than 40% of the non-life industry's total gross premiums in 2011 were being ceded, with around 6% of these premiums to Indonesian reinsurers. This suggests that a substantial proportion of the industry's premiums are being ceded to foreign reinsurers. In Fitch's view the low capital base of domestic reinsurers encourages reliance on overseas retrocessions. Within the life insurance sector, insurers are not expected to be materially affected due to the low casualty rate relative to Indonesia's over 200 million populations and the low insurance penetration of the life market. Fitch estimates that the insured losses will be greater than the flood losses from the 2002 and 2007 floods since the areas affected are more extensive and concentrated towards inner Jakarta, whereby insurance coverage is higher than in rural areas. Based on the General Insurance Association of Indonesia statistics, flood-related claims in 2002 and 2007 amounted to IDR1.5trn and IDR2.1trn respectively. The agency will continue to evaluate the impact as loss estimates are updated and insured losses disclosed. Fitch stresses that it remains important for insurers to enhance their risk management practices and increase their catastrophe modelling sophistication to better prepare for future disasters. One way is by conducting better flood risk modelling, which PT Asuransi MAIPARK Indonesia is currently working on. Flood risk modelling which can include more detailed mapping of flood zones and aid tariff regulation, could prove useful for future risk mitigation and product innovation in order to provide better flood risk protection coverage. ========= J A P A N ========= RENESAS ELECTRONICS: May Replace President Akao This Month ---------------------------------------------------------- Taipei Times reports that Renesas Electronics Corp, the Japanese chipmaker getting a bailout from a state-backed fund, may replace president Yasushi Akao this month, a company official said. According to Taipei Times, the official said the company may name Renesas senior vice president Tetsuya Tsurumaru to succeed Akao. Mr. Tsurumaru, 58, started at Hitachi Ltd in 1979 and spent most of his career in production after joining Renesas's predecessor company in 2003, the report discloses. Taipei Times notes that the new president would take over in the midst of a restructuring effort that includes more than 10,500 job cuts announced since July as Renesas tries to recover from losses amid falling demand for its system LSI chips. The company plans to sell JPY150 billion (US$1.6 billion) of new shares to investors led by state-backed Innovation Network Corp of Japan as part of a bailout, the report states. About Renesas Electronics Based in Tokyo, Japan, Renesas Electronics Corp. -- http://am.renesas.com/-- manufactures semiconductor systems for mobile phones and automotive applications. For the fiscal year that ended March 31, 2012, the chip maker reported a net loss of JPY62.60 billion and revenue of JPY883.11 billion. In the previous fiscal year when the company was created, it reported a net loss of JPY115.02 billion, The Wall Street Journal reported. Renesas Electronics on Feb. 8 widened its annual loss forecast to JPY176 billion ($1.9 billion). ==================== N E W Z E A L A N D ==================== KITCHEN HOUSE: Customers Seek to Recover Deposits ------------------------------------------------- Jason Krupp at stuff.co.nz reports that a bid by Kitchen House customers to retrieve their deposits from the failed firm has taken a step closer after a Wellington couple shared their frustrations with the 18-month receivership process. Andy Morse and his partner paid a 20% deposit on a NZ$13,000 kitchen to Kitchen House. Now the second receivers have gone to court seeking to unlock customers' deposits to pay to the appointing creditors, the report relays. Since The Dominion Post published Mr. Morse's story on Tuesday a deluge of former customers have come forward to form a group that will push to get their money back, according to stuff.co.nz. Their plight has even attracted offers of free legal representation, advice from a liquidator, and messages of support from former staff members, says stuff.co.nz. stuff.co.nz notes that at the heart of the case is a fund worth NZ$177,876 made up of customer deposits that was set aside when Kitchen House was put into receivership in early 2012. That money remained untouched when HSBC, as first secured creditor, claimed the almost NZ$200,000 it was owed from the sale of the firm's assets, the report relays. Now second receiver Anthony Harris, acting for former owners Brian and Walter Smaill (who are also second-ranked creditors), is asking the High Court in Auckland to rule whether he can pay these funds to his clients. The case is expected to go before the High Court in March, the report adds. Kitchen House manufactures cabinets, bench tops and doors. It has six retail sites around the North Island. CGKH Ltd, which traded as Kitchen House, was placed into receivership on Feb. 22, 2012. The company owes creditors NZ$2.4 million. MAINZEAL PROPERTY: Unit Owes More Than NZ$14MM, Liquidator Says --------------------------------------------------------------- William Mace at stuff.co.nz reports that a Mainzeal Property and Construction Limited subsidiary that has copped some of the blame for pushing the construction company into receivership owes over NZ$14 million, its liquidators say. King Facade Limited was put into voluntary liquidation on February 12 by shareholder Richina Global Real Estate Limited -- part of a business empire built by Chinese New Zealander Richard Yan that includes MPCL, stuff.co.nz relates. According to the report, MPCL partially blamed supply chain problems out of China for its receivership, a problem believed to stem from delays in shipments of glass facades. stuff.co.nz relates that liquidator BDO's first report on King Facade shows the firm has total assets of NZ$4.4 million and total liabilities of NZ$18.9 million, including NZ$14.9 million owed to MPCL. According to stuff.co.nz, liquidator Andrew Bethell said it appeared that MPCL had been funding King Facade for some time, including NZ$8.3 million in a trading account and a NZ$6.5 million "historical balance". The list of assets also shows NZ$5.7 million owed under an intercompany account with parent company RGREL. Another company, King Facade (NZ) Limited, shares the same owner as King Facade Limited but has not been put into liquidation, the report notes. Mr. Bethell said MPCL may also have been funding King Facade (NZ) Limited. A debt of NZ$903,000 owed by the second King Facade company to the first one would require further investigation, Mr. Bethell, as cited by stuff.co.nz, said. About Mainzeal Property 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. Colin McCloy and David Bridgman, partners from PricewaterhouseCoopers, on Feb. 6, 2013, were 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. The receivers are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment. MAINZEAL PROPERTY: Receivers Nearly Completes Initial Assessment ---------------------------------------------------------------- Fairfax NZ News reports that the receivers of collapsed Mainzeal Property and Construction have nearly completed their initial assessment of the company's projects, warning it is a complicated case. PricewaterhouseCoopers partners Colin McCloy and David Bridgman said it was a "large and complex receivership with many different stakeholders" and wanted to assure people PwC was working as quickly as it legally could, according to Fairfax NZ News. The report relates that limited work has resumed on the Kapiti Coast District Council's new aquatic center, and PwC said it hoped work on other Mainzeal projects would soon either be resumed or, "as is more likely in a number of instances", transferred back to the client or another contractor. The vast majority of contractors and sub-contractors had been given access to sites to retrieve their tools, and some milestones had been achieved, the report notes. Fairfax NZ News discloses that these included the buyout of a Mainzeal joint venture by its partner MWH Recovery which meant a substantial number of Christchurch staff had been able to remain in work. Wellington's CentrePort is one of the companies hit by the receivership, noting the delay on refurbishment of its Shed 39 building during its half year result, the report notes. Fairfax NZ News says that Mainzeal's collapse has left the owners of Christchurch's Hornby Mall to find a new main building contractor for the NZ$47 million expansion after the receivers said they would not continue it. But McCloy and Bridgeman will finish another Mainzeal contract in Christchurch that is not far from complete - St Andrew's College new boarding houses and associated buildings, Fairfax NZ News adds. About Mainzeal Property 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. Colin McCloy and David Bridgman, partners from PricewaterhouseCoopers, on Feb. 6, 2013, were 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. The receivers are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment. ********* 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, Psyche A. Castillon, 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 ***