/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130228.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 28, 2013, Vol. 16, No. 42 Headlines A U S T R A L I A BECTON PROPERTY: Holding Companies Placed in Receivership HAMPER MAGIC: Goes Into Administration, Owes AUD830,000 UNLEASH SOLAR: In Administration, Owes $5 Million VEGA COLOUR: Placed Into Administration * Queensland Records Highest Number of Distress Sales H O N G K O N G SUMMIT FORTUNE: Court to Hear Wind-Up Petition on April 10 TUNGDA INNOVATIVE: Lai and Haughey Appointed as Liquidators TWIN PROFIT: Court to Hear Wind-Up Petition on April 10 WAY AND FUNG: Court to Hear Wind-Up Petition on April 10 WELLCO DEVELOPMENT: Court to Hear Wind-Up Petition on April 10 I N D I A ARM OVERSEAS: CRISIL Upgrades Rating on INR120MM Loan to 'B' ASCENT INDUSTRIES: CRISIL Places 'B+' Ratings on INR70MM Loans BALAJI GINNING: CRISIL Upgrades Rating on INR100MM Loan to 'B+' GOPAL DIAMONDS: CRISIL Assigns 'B+' Ratings to INR150MM Loans MALABAR HOTELS: CRISIL Places 'B-' Ratings on INR490MM Loans PAREKH ALUMINEX: CRISIL Cuts Ratings on INR13.45BB Loans to 'D' POOJITHA PARBOILED: CRISIL Ups Ratings on INR90MM Loans to 'B+' PONMANI INDUSTRIES: CRISIL Puts 'B+' Ratings to INR57.5MM Loans SELVALAKSHMI GARMENTS: CRISIL Puts 'D' Ratings on INR177MM Loans SHREE BALAJI: CRISIL Upgrades Ratings on INR436.9MM Loans to 'D' STATE BANK OF INDIA: Moody's Keeps (P)Ba1 Rating on Jr. MTN U. M. RAMESH: CRISIL Rates INR50MM Term Loan at 'B-' VFC INDUSTRIES: Delays in Loan Payment Cue CRISIL to Junk Ratings * Hong Kong Reinforces Banks Against Property Risk, Fitch Says J A P A N MF2 SENIOR: S&P Keeps BB Rating on Creditwatch Negative * S&P Raises Rating on 4 Japanese Synthetic CDO Tranches S O U T H K O R E A SSANGYONG ENG'G: Creditors Move to Put Firm on Debt Work Program N E W Z E A L A N D IAN FRANKLIN: Owner Puts Boat Building Firm Into Liquidation MAINZEAL PROPERTY: Fletcher Building to Rescue Some Projects - - - - - ================= A U S T R A L I A ================= BECTON PROPERTY: Holding Companies Placed in Receivership --------------------------------------------------------- Becton Property Group Limited (BPGL) and a limited number of non- trading corporate subsidiaries were placed under receivership and Mark Korda -- mkorda@kordamentha.com -- and Janna Robertson -- jrobertson@kordamentha.com -- of Kordamentha were appointed receivers and managers of the companies. The receivership has no impact on the Becton operating companies involved in construction, development and retirement businesses. Shares in BPGL and units in the Becton Property Trust are stapled securities which are listed on the ASX (code BEC). BEC securities were suspended from trading on the ASX on February 22. "It is important to understand this is a very limited receivership which affects the ownership and control of Becton, but not the business operations," Mr. Korda said in statement. "It will be business as usual in the development, construction and retirement operations." Mr. Korda said settlements on sale of homes and retirement villas will continue as scheduled and deposits for future villas will be preserved. Creditors including contractors will continue to be paid. The retirement business is a joint venture between Becton and Oman Investment Fund (OIF) and is unaffected by the receivership, Mr. Korda said. The receivership has no impact on resident contracts, service fees, occupation rights or staff entitlements. The development of the sites known as Bonnyrigg and Waterloo continues. The operating companies will continue to be managed by the Chief Executive Officer, Mr. Matthew Chun. Mr. Korda said: "The entity that employs Becton staff is part of the 'headstock' and we can confirm that all salaries will continue to be paid and all accrued employee entitlements will be paid as and when they fall due." The Australian reports that the receivers were appointed after the company failed to reach an agreement with its consortium of bankers led by Goldman Sachs. Goldman Sachs and consortium partner Fortress Investment Group have called in two major loans to Becton totalling AUD200 million, The Australian relates. That move has placed the listed headstock Becton Property Group Ltd and associated entities Becton Pty Ltd, Becton Group Holdings Pty and Becton Construction Group Pty Ltd into receivership. The main operating entities of the company, which includes the entities which control its residential projects and its retirement business, have not been placed into receivership and will continue as a going concern, The Australian reports. Becton Property Group Limited (ASX:BECDC) -- http://www.becton.com.au/-- is a listed Australian diversified property group involved in property development and construction, property funds management and retirement village ownership and operation. It was established in 1976. HAMPER MAGIC: Goes Into Administration, Owes AUD830,000 ------------------------------------------------------- SmartCompany reports that Hamper Magic has gone into administration placing the deposits of over 1,600 customers in jeopardy. Andrew Cummins and Antony Resnick of BRI Ferrier were appointed as administrators of Hamper Magic earlier this month, the report discloses. Louisa Sijabat, manager at BRI Ferrier, told SmartCompany Hamper Magic owed AUD830,000 to creditors, which are mainly trade suppliers. "The administrators are conducting an urgent review of the business, its financial position and its operations," SmartCompany quotes Ms. Sijabat as saying. "The administrators are actively seeking to sell the business and or assets of Hamper Magic and are currently speaking with several prospective purchasers." SmartCompany relates that Ms. Sijabat said the administrators are currently seeking to protect the deposits of the 1,600 customers for Christmas this year. "The administrators are encouraging prospective purchasers to consider taking over the deposits paid by customers for 2013 hampers in their offer to purchase the business and or assets of Hamper Magic," Ms. Sijabat told SmartCompany. Hamper Magic operated layby Christmas hamper company. Hamper Magic's hampers start from AUD1.53 per week for a "beans and spaghetti" hamper to AUD39.98 per week for the "mega" hamper with a total cost of AUD1,399. Last year, SmartCompany recalls, the company had more than 1,100 customers for Christmas and 1,600 were already signed up, having paid deposits for the coming Christmas. UNLEASH SOLAR: In Administration, Owes $5 Million ------------------------------------------------- Yahoo! 7News reports that Unleash Solar has gone into voluntary administration with debts of $5 million, and warranties on its products might not be honored. After issuing a public warning, Consumer Affairs has received 40 complaints about the company, according to Yahoo! 7News. The report relates that Consumer Affairs has seized documents from the company and has defended its decision not to name the company earlier. "We have to be particularly careful when publicly naming companies that could suffer as a result so we have to go through due process and we did that as quickly as possible," the report quoted Consumer Affairs Commissioner Paul White as saying. Consumer Affairs has also revealed it is investigating another two solar companies, but won't say which ones, the report relates. VEGA COLOUR: Placed Into Administration --------------------------------------- SmartCompany reports that Melbourne-based printing business Vega Colour Group has been placed in administration. Damian Templeton --- djtempleton@kpmg.com.au -- and Darren Lewis -- dlewis@kpmg.com.au -- from KPMG were appointed on February 20 by the secured creditor, National Australia Bank, ProPrint discloses. KPMG confirmed the company turned over AUD17.4 million in the 2011-12 financial year, with earnings before interest, tax, depreciation and amortization of AUD1.7 million, SmartCompany relates. Mr. Templeton told SmartCompany while an investigation is still underway into why the business collapsed, the industry in general is facing tough times. "It's a little early to say too much, we were only appointed late last week so we're undertaking an urgent view of the business' situation. But we are continuing to trade and have . . . been approached by a number of parties already," the report quotes Mr. Templeton as saying. KPMG is putting the business up for sale as a going concern. SmartCompany relates that Mr. Templeton said he could not reveal details of debt, but said creditors were mostly other entities in the printing industry. "The printing industry has been one that's been quite tough for a while now, there have been some that have gone under, including Geon last week," Mr. Templeton told SmartCompany. "A big part of it is over capacity in the industry, and people are chasing work. It does tend to impact those that are weakest first." Vega Colour Group is a Melbourne-based printing business focused on creating environmentally-friendly printing material. The business was founded in 1960 as a family business, and now operates out of a factory and office space larger than 5,000 square metres. * Queensland Records Highest Number of Distress Sales ----------------------------------------------------- Jenny Rogers at goldcoast.com.au reports that Queensland again has the highest number of distressed sales in Australia as receivers move to rid their books of commercial properties that have fallen victim to financial failure. The report relates that more than half (52%) of advertised properties nationwide listed by a mortgagee, receiver or liquidator in the December quarter were in Queensland. The Gold Coast was on par with the rest of the state, with 51.9% of all commercial properties advertised representing forced sales, goldcoast.com.au relates citing the latest LandMark White Forced Sales Monitor. However, the figure is an improvement on the previous quarter when 67.7% of all commercial properties advertised on the Gold Coast were receiver-instigated sales, the report notes. Nationwide, 31% of properties listed were forced sales, with the New South Wales figure at 21% and Victoria's at 11%. goldcoast.com.au notes that most of the receiver stock advertised was in regional areas rather than metropolitan areas (82% of the total). Queensland was the state hit hardest by the malaise in the residential sector, with 39 per cent of all residential advertisements representing distressed sales, the report adds. ================ H O N G K O N G ================ SUMMIT FORTUNE: Court to Hear Wind-Up Petition on April 10 ---------------------------------------------------------- A petition to wind up the operations of Summit Fortune Investments Limited will be heard before the High Court of Hong Kong on April 10, 2013, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company. The Petitioner's Solicitors are: Li & Partners 22/F, World-Wide House 19 Des Voeux Road Central, Hong Kong TUNGDA INNOVATIVE: Lai and Haughey Appointed as Liquidators ----------------------------------------------------------- Messrs. Lai Kar Yan (Derek) and Darach E Haughey on Sept. 10, 2012 were appointed as liquidators of Tungda Innovative Lighting Holdings Limited. The liquidators may be reached at: Messrs. Lai Kar Yan (Derek) Darach E Haughey 35/F One Pacific Place 88 Queensway, Hong Kong TWIN PROFIT: Court to Hear Wind-Up Petition on April 10 ------------------------------------------------------- A petition to wind up the operations of Twin Profit Limited will be heard before the High Court of Hong Kong on April 10, 2013, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company. The Petitioner's Solicitors are: Li & Partners 22/F, World-Wide House 19 Des Voeux Road Central, Hong Kong WAY AND FUNG: Court to Hear Wind-Up Petition on April 10 -------------------------------------------------------- A petition to wind up the operations of Way and Fung Property Development Limited will be heard before the High Court of Hong Kong on April 10, 2013, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company. The Petitioner's Solicitors are: Li & Partners 22/F, World-Wide House 19 Des Voeux Road Central, Hong Kong WELLCO DEVELOPMENT: Court to Hear Wind-Up Petition on April 10 -------------------------------------------------------------- A petition to wind up the operations of Wellco Development Limited will be heard before the High Court of Hong Kong on April 10, 2013, at 9:30 a.m. Bank of China (Hong Kong) Limited filed the petition against the company. The Petitioner's Solicitors are: Li & Partners 22/F, World-Wide House 19 Des Voeux Road Central, Hong Kong ========= I N D I A ========= ARM OVERSEAS: CRISIL Upgrades Rating on INR120MM Loan to 'B' ------------------------------------------------------------ CRISIL has upgraded its rating on the long-term bank facility of ARM Overseas Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL B-/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 120 CRISIL B/Stable (Upgraded from 'CRISIL B-/Stable') The upgrade reflects CRISIL's belief that ARM will continue to witness healthy revenue growth over the medium term, supported by stabilization of its operations, and increase in its order flow. ARM registered revenues of around INR917.8 million for the five months ended August 31, 2012, compared to INR799.8 million for the entire year 2011-12 (refers to financial year, April 1 to March 31). ARM's working capital management has been comfortable, supported by extended trade credits from its group company, and increased bank limits. The upgrade also factors in financial flexibility that ARM has, reflected from equity infusion of INR28 million in 2011-12 to support its increased scale of operations. The ratings reflect ARM's below-average financial risk profile, marked by a highly leveraged capital structure, because of the working-capital-intensive nature of the company's business, modest scale of operations in highly fragmented rice industry and susceptibility of operating margin to volatility in rice prices. These rating weaknesses are partially offset by the extensive industry experience of ARM's promoters. Outlook: Stable CRISIL believes that ARM will continue to benefit over the medium term from its promoters' extensive industry experience. CRISIL, however, also believes that ARM's financial risk profile will remain weak over the same period, because of the company's large working capital requirements. The outlook may be revised to 'Positive' in case ARM registers significant improvement in its capital structure and scale of operations, with improvement in its margins. Conversely, the outlook may be revised to 'Negative' if the company registers deterioration in its working capital cycle or undertakes any large, debt-funded capital expenditure programme. ARM, incorporated in 2008, mills and processes basmati rice; it sells to exporters in India. ARM is managed by Mr. Anand Goel and his family. ARM reported a profit after tax (PAT) of INR1.8 million on net sales of INR799.7 million for 2011-12; the company reported a PAT of INR1.9 million on net sales of INR633.6 million for 2010-11. ASCENT INDUSTRIES: CRISIL Places 'B+' Ratings on INR70MM Loans -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Ascent Industries Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 30 CRISIL B+/Stable (Assigned) Term Loan 40 CRISIL B+/Stable (Assigned) The rating reflects AIPL's below-average financial risk profile marked by a modest net worth and weak debt protection metrics. The rating also factors in the company's small scale of operations in the intensely competitive kraft board and straw board industry. These rating weaknesses are partially offset by the benefits that AIPL derives from its promoters' extensive experience in the kraft board and straw board manufacturing business and its established relationships with its customers and suppliers. Outlook: Stable CRISIL believes that AIPL will continue to benefit over the medium term from its promoters' extensive experience in the kraft board and straw board industry. The outlook may be revised to 'Positive' in case the company registers improvement in its financial risk profile, most likely because of more-than-expected improvement in its scale of operations and in its operating margin, or further equity infusion by its promoters. Conversely, the outlook may be revised to 'Negative' in case AIPL's financial risk profile or liquidity deteriorates, most likely because of lower-than-expected cash accruals, more-than-expected increase in working capital requirements, or further debt-funded capital expenditure. AIPL, incorporated in January 2007, manufactures kraft board and straw board. The company's manufacturing unit is at Gangavaram in East Godavari district (Andhra Pradesh). AIPL is promoted by Mr. B Venkateshwara Rao and Mr. M Ramakrishna and their family members. BALAJI GINNING: CRISIL Upgrades Rating on INR100MM Loan to 'B+' --------------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of Balaji Ginning & Pressing to 'CRISIL B+/Stable' from 'CRISIL B/Stable' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The upgrade reflects the healthy growth in revenues over the past two years expected to continue in 2013-14 (refers to financial year, April 1 to March 31) as well. The upgrade also reflects the regular support from promoters in terms of capital infusion. BGP's net sales have exhibited healthy growth of around 57 per cent, to INR533 million in 2011-12 from INR339 million in 2010-11. The firm is expected to post significant growth in 2012-13 as well, with it already achieving around INR450 million of sales in the first nine months of 2012-13. The firm is expected to maintain a moderate growth rate going forward. The promoters have been supporting the business via regular equity infusions, with around INR35 million of equity infusion and INR5 million of unsecured loans infused over the past three years. The rating reflects BGP's moderate financial risk profile, marked by small net worth, moderate gearing, and weak debt protection metrics, and the adverse impact the government's minimum support prices regime has on players in the cotton industry. These weaknesses are partially offset by the experience of BGP's promoters in the cotton ginning industry. For arriving at the ratings, CRISIL has treated the unsecured loans of INR25 million as on March 31, 2012, extended to SKP by its promoters as neither debt nor equity, as these loans would be retained in the business and have a lower rate of interest than bank rates. Outlook: Stable CRISIL believes that BGP will benefit over the medium term from its promoters' established experience in the cotton ginning industry. The outlook may be revised to 'Positive' in case of significant improvement in accruals and equity infusion, leading to improvement in the capital structure and financial risk profile. Conversely, the outlook may be revised to 'Negative' if the firm's operating margin declines, leading to lower cash accruals, or if a debt-funded capital expenditure adversely impacts its debt protection metrics. BGP, based in Yavatmal (Maharashtra), is in the business of cotton ginning and pressing. The firm was established in 2003, with Mr. Ashok Nilwar and Mr. Sainath Motewar as equal partners. BGP reported a profit after tax (PAT) of INR4.5 million on net sales of INR533.3 million for 2011-12, against a PAT of INR3.2 million on net sales of INR338.6 million for 2010-11. GOPAL DIAMONDS: CRISIL Assigns 'B+' Ratings to INR150MM Loans ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Gopal Diamonds Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 92.5 CRISIL B+/Stable (Assigned) Bank Loan Facility Cash Credit 17.5 CRISIL B+/Stable (Assigned) Long-Term Loan 40.0 CRISIL B+/Stable (Assigned) The rating reflects GDPL's below-average financial risk profile, marked by a weak capital structure, small scale of operations with low profitability, and susceptibility to intense competition in the jewellery business and to volatility in gold prices. These rating weaknesses are partially offset by the extensive experience of GDPL's promoter in the jewellery business, and the benefits that the company is expected to derive from its new jewellery showroom, which is currently being set up. Outlook: Stable CRISIL believes that GDPL will continue to benefit over the medium term from its promoter's extensive experience in the jewellery business. The outlook may be revised to 'Positive' in case the company registers substantial improvement in its scale of operations and profitability, leading to higher-than-expected cash accruals and subsequent improvement in its debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case GDPL registers deterioration in its financial risk profile, particularly in its liquidity, because of larger-than-expected working capital requirements, pressure on its cash accruals, or large, debt-funded capital expenditure. GDPL was set up in February 2012 by Mr. Yash Pal Verma. The company, based in New Delhi, mainly trades in gold and diamond- studded gold jewellery. GDPL has taken over the business operations of its promoter's proprietorship firm, Gopal Jewellers, with effect from November 1, 2012. GDPL has a showroom of around 750 square feet (sq ft) at Karol Bagh (New Delhi); it is currently setting up a showroom of around 1000 sq ft in New Delhi. MALABAR HOTELS: CRISIL Places 'B-' Ratings on INR490MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the long-term bank facilities of Malabar Hotels Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-Term Loan 460 CRISIL B-/Stable (Assigned) Bank Guarantee 10 CRISIL A4 (Assigned) Cash Credit 30 CRISIL B-/Stable (Assigned) The ratings reflect MHPL's weak liquidity, modest scale of operations, and exposure to cyclicality and intense competition in the hospitality segment. These rating weaknesses are partially offset by the extensive experience of MHPL's management in the hospitality industry. Outlook: Stable CRISIL believes that MHPL will continue to benefit over the medium term from its management's experience in the hospitality segment. The outlook may be revised to 'Positive' if the company records more-than-expected increase in its revenues and profitability on account of higher occupancy levels and average room rates (ARR), resulting in improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if MHPL undertakes a larger-than-expected, debt-funded capital expenditure programme, or if its accruals are less than expected because of lower occupancy levels or ARR. MHPL, incorporated in 2002, owns a five-star hotel, Kohinoor- Asiana, in Old Mahabalipuram Road in Chennai (Tamil Nadu). The hotel commenced operations in October 2007. The company's day-to- day operations are managed by Mr. S Sriharan and Mr. S Alagurajan. For 2011-12 (refers to financial year, April 1 to March 31), MHPL reported a profit after tax (PAT) of INR3.5 million on total revenues of INR333.9 million; the company reported a PAT of INR11.5 million on total revenues of INR326.5 million in 2010-11. PAREKH ALUMINEX: CRISIL Cuts Ratings on INR13.45BB Loans to 'D' --------------------------------------------------------------- CRISIL has downgraded its ratings on the non-convertible debentures and bank facilities of Parekh Aluminex Ltd to 'CRISIL D/CRISIL D' from 'CRISIL BB+/CRISIL A4+/Rating Watch with Negative Implications'; the ratings have been removed from watch. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash credit 3,450 CRISIL D (Downgraded from 'CRISIL BB+; Removed from 'Rating Watch with Negative Implications') Letter of Credit 550 CRISIL D (Downgraded from 'CRISIL A4+; Removed from 'Rating Watch with Negative Implications') Letter of Credit 900 CRISIL D (Downgraded from and Bank Guarantee 'CRISIL A4+; Removed from 'Rating Watch with Negative Implications') Proposed Long-Term 8,550 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL BB+; Removed from 'Rating Watch with Negative Implications') The downgrade reflects continued overdrawals of more than thirty days in some of PAL's bank facilities; the overdrawals have been caused by the company's weak liquidity. The liquidity is weak on account of cash flow mismatches, driven by the company's large capital expenditure (capex) plan and large working capital requirements. The efforts by the company to resolve its cash flow mismatches were disrupted following the demise of the chairman and managing director. CRISIL believes that PAL's liquidity will remain weak over the medium term because of delay in infusion of long-term funds for the large capex plan and large working capital requirements. PAL has a leadership position in the aluminium foil container (AFC) industry, strong clientele, and sound operational capabilities. PAL has working-capital-intensive operations, and it is exposed to risks associated with its large, debt-funded capex plans over the medium term. PAL, incorporated in 1994, manufactures AFC, lids, covers, and allied products. The products are used in packaging food items. PAL's manufacturing units are in Dadra and Nagar Haveli. In 2005, PAL acquired a Singapore-based company to enter the Southeast Asian markets. In 2008, PAL's manufacturing units acquired an export-oriented-unit status. PAL ventured into the retail space with two brands, PAL and ME Foil, in 2010-11 (refers to financial year, April 1 to March 31). Currently, the company has production capacity of 6880 million pieces of AFC, 39.6 million pieces of aluminium foil roll, and 1790 million pieces of aluminium foil lids per annum. PAL provides customised products through a bank of more than 288 multi-cavity moulds. PAL reported a profit after tax (PAT) of INR846.6 million on net sales of INR13.7 billion for 2011-12, against a PAT of INR672.5 million on net sales of INR9.0 billion for 2010-11. For the six months ended September 30, 2012, PAL reported a PAT of INR580.4 million on net sales of INR10.1 billion, against a PAT of INR378.9 million on net sales of INR6.08 billion for the corresponding period of the previous year. POOJITHA PARBOILED: CRISIL Ups Ratings on INR90MM Loans to 'B+' --------------------------------------------------------------- CRISIL has upgraded its rating on the bank facilities of Poojitha Parboiled Rice Mill to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Term Loan 10 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') The rating upgrade reflects the improvement in PRPM's business risk profile on account of a substantial and sustained increase in its revenues, while maintaining its moderate profitability margins. The subsequent increase in PRPM's cash accruals, on account of its healthy revenue growth and its stable profitability margins, would also result in sustenance of its above-average debt protection metrics. The revenues of the firm are estimated to register a compounded annual growth rate of around 35 per cent from 2010-11 (refers to financial year, April 1 to March 31) to 2012-13; the operating profit margins of the firm are also expected to remain moderate at around 6.5 per cent to 7.5 per cent over this period. The healthy revenue growth has been mainly driven by lifting of the ban on exports of non-basmati rice by the Government of India. The subsequent increase in PRPM's cash accruals, coupled with its moderate debt levels contracted for funding its working capital requirements, are expected to result in sustenance of its above- average debt protection metrics; PRPM's interest coverage and net cash accruals to total debt ratios are expected to be 2.5 times and 15 per cent, respectively, for 2012-13. The ratings continue to reflect PRPM's modest scale of operations, its large working capital requirements, and its susceptibility to adverse regulatory changes and volatility in raw material prices. These rating weaknesses are partially offset by the experience of PPRM's partners in the rice business, and its moderate financial risk profile marked by moderate gearing and above-average debt protection metrics. Outlook: Stable CRISIL believes that PPRM will continue to benefit over the medium term on the back of its partners extensive experience in the rice business and its established relationships with customers. The outlook may be revised to 'Positive' if there is a substantial and sustained improvement in the firm's profitability margins, while maintaining its healthy revenue growth or there is an improvement in its working capital management. Conversely, the outlook may be revised to 'Negative' if there is a steep decline in the firm's profitability margins from the current levels or there is a significant deterioration in its capital structure on account of larger-than-expected working capital requirements or large debt- funded capex. PPRM was established in 1986 as a partnership firm by Mr. Bachu Janarthan and his family members; it is based in Hayatnagar, Rangareddy district (Andhra Pradesh). The firm has a processing capacity of 12 tonnes of rice per hour. It processes varieties of raw non-basmati rice and sells its products in the open market under the brands Paddyzz and Daisy. The firm owns two retail stores in Andhra Pradesh. PONMANI INDUSTRIES: CRISIL Puts 'B+' Ratings to INR57.5MM Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of Ponmani Industries. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Cash 10 CRISIL B+/Stable (Assigned) Credit Limit Bank Guarantee 12.5 CRISIL A4 (Assigned) Cash Credit 47.5 CRISIL B+/Stable (Assigned) The ratings reflect PI's modest scale of operations and customer concentration. These rating weaknesses are partially offset by the extensive industry experience of PI's proprietor and its above- average financial risk profile, marked by a healthy capital structure. Outlook: Stable CRISIL believes that PI will continue to benefit from its proprietor's extensive industry experience over the medium term. The outlook may be revised to 'Positive' in case PI scales up its operations significantly while diversifying its customer profile and maintaining its financial risk profile, leading to a substantial increase in its cash accruals. Conversely, the outlook may be revised to 'Negative' if there is a decline in orders from the Tamil Nadu government, or deterioration in PI's working capital management, or if the firm undertakes a larger-than- expected debt-funded capital expenditure (capex) programme, weakening its financial risk profile. PI, set up in 1985, is a sole proprietorship concern that manufactures and supplies table-top wet grinders, primarily to the Tamil Nadu government. Its day-to-day operations are managed by its proprietor, Mr. P Kumaresan. PI reported a profit after tax (PAT) of INR24.2 million on net sales of INR521.7 million for 2011-12 (refers to financial year, April 1 to March 31), as against a PAT of INR800,000 on net sales of INR15.2 million for 2010-11. SELVALAKSHMI GARMENTS: CRISIL Puts 'D' Ratings on INR177MM Loans ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Selvalakshmi Garments. The rating reflects instances of delay by SG in servicing its debt owing to stretched liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long-Term Loan 107 CRISIL D (Assigned) Cash Credit 40 CRISIL D (Assigned) Letter of Credit 30 CRISIL D (Assigned) SG's below-average financial risk profile is marked by highly leveraged capital structure and weak debt protection metrics. However, the firm benefits from the extensive experience of its promoters in the textile industry. Set up in 1999 and based in Tirupur (Tamil Nadu), SG manufactures fabrics. The firm is promoted by Mr. C Thangaraj. For 2011-12 (refers to financial year, April 1 to March 31), SG reported a profit after tax (PAT) of INR3.6 million on net sales of INR198.0 million, against a PAT of INR1.2 million on net sales of INR181.1 million for 2010-11. SHREE BALAJI: CRISIL Upgrades Ratings on INR436.9MM Loans to 'D' ---------------------------------------------------------------- CRISIL has upgraded its ratings on the bank facilities of Shree Balaji Engicons Private Limited to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL D/CRISIL D'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 79.5 CRISIL B-/Stable (Upgraded from 'CRISIL D') Proposed Long-Term 14.9 CRISIL B-/Stable (Upgraded Bank Loan Facility from 'CRISIL D') Bank Guarantee 300.0 CRISIL A4 (Upgraded from 'CRISIL D') Cash Credit 42.5 CRISIL B-/Stable (Upgraded from 'CRISIL D') The upgrade follows sizeable track record of timely servicing of debt obligations by SBEPL, backed by improvement in its liquidity. The company's liquidity has improved, with accruals increasing to INR163 million in 2011-12 compared to INR75 million in 2010-11, on an increased scale of operations. The ratings continue to reflect its geographical concentration in the revenue profile and its high working capital intensity of operations. These weaknesses are partially offset by the longstanding experience of promoters in the civil construction industry and its average financial risk profile, marked by comfortable capital structure, though constrained by its stretched liquidity profile. Outlook: Stable CRISIL believes that SBEPL will continue to benefit over the medium term from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case the company registers significant improvement in its accruals and cash flow management. Conversely, the outlook may be revised to 'Negative' in case SBEPL faces stretch in its working capital cycle or undertakes any large, debt-funded capital expenditure programme, or make large investments in group companies, thereby adversely affecting its liquidity and financial risk profile. SBEPL was set up as a partnership firm in 1993 by Mr. Anil Agarwal and family, which got reconstituted as a private limited company in 1998. It undertakes civil construction, road construction, and related jobs in Orissa. The company also runs a petrol pump. For 2011-12, SBEPL reported a profit after tax (PAT) of INR119 million on net sales of INR1.2 billion, against a PAT INR34 million on revenues of INR1.0 billion for 2010-11. STATE BANK OF INDIA: Moody's Keeps (P)Ba1 Rating on Jr. MTN ----------------------------------------------------------- Moody's Investors Service has affirmed the ratings of the State Bank of India, while repositioning its baseline credit assessment one notch lower. The ratings affirmed are its: Local currency bank deposit ratings of Baa2/P-2 Foreign currency bank deposit ratings of Baa3/P-3 Senior unsecured MTN program (foreign currency) of (P)Baa2 Subordinate MTN Program (foreign currency) of (P)Baa3 Junior subordinate MTN program (foreign currency) of (P)Ba1 Other short-term debt of (P)P-3 Foreign currency senior unsecured debt rating of Baa2 Senior unsecured foreign currency debt of Baa2 In the process, Moody's has also affirmed SBI's D+ bank financial strength rating, while adjusting its mapping to a baseline credit assessment of ba1 from baa3 previously on the long-term scale. BFSRs and BCAs are inputs in the determination of long-term ratings, and a BFSR of D+ can be mapped to either ba1 or baa3, depending on the relative credit standing of a bank. The lowering of SBI's BCA reflects its relatively high level of non-performing loans, which are unlikely to be managed down quickly, and the bank's relatively weaker ability to sustain any further deterioration in the economic environment relative to its similarly-rated peers globally. The bank benefits from this support uplift based on Moody's assessment of its systemic importance, which is characterized by its dominant market position as the largest bank in the country, its critical function in India's payment system -- processing 14% of all transactions -- its 61.58% ownership by the government, and historical evidence of government support for the bank. As a result of this systemic importance, Moody's has left unchanged the global local currency deposit rating and senior unsecured debt rating at Baa2 despite the lowering of the stand-alone credit assessment to ba1. However, as a result of the one-notch lowering of the BCA, Moody's has revised its foreign hybrid Tier 1 debt rating (preferred stock non-cumulative) to B1 (hyb) from Ba3 (hyb), as these ratings of junior securities are notched off from the BCA under Moody's bank rating methodology. The outlook on all SBI's ratings is stable. Ratings Rationale: Moody's ratings on SBI recognize its dominance as the largest commercial bank in India. However, the deterioration in asset quality witnessed over the last 18 months -- including a rise in impaired loans (gross NPL and re-structured loans), and a smaller cushion to absorb losses due to low-provision coverage and lower Tier 1 capital relative to other large banks in emerging markets - - increases the bank's risk profile. SBI's gross NPL ratio rose to 5.3% at end-December 2012 from 4.4% at end-March 2012, while its restructured loans ratio rose to 2.35% from 1.75%. Such levels for poorly performing assets are among the highest for its similarly rated peers in BRIC countries, and are unlikely to fall quickly, given the economic environment in India. Furthermore, SBI's shock-absorbing buffers are also not as robust as those of its peers. Its loan-loss reserves of 61% of gross NPLs or less than 45% of impaired loans are modest when compared globally. And although the Tier 1 capital ratio improved to 9.8% at end-March 2012 from an industry low of 7.8% a year ago, SBI's business model entails frequent capital injections from the government because internal capital generation is lower than credit growth. This situation is an important consideration as to why the BCA is more appropriately positioned at ba1 compared to baa3. Moody's further notes that SBI's pre-provision profitability is characterized by rising net interest margins. Moody's believes that this rise is in turn driven by the growth in loans outpacing the growth in deposits, and the rise in loan yields, whereas the costs of deposit rise with a lag. The rise in the bank's margins have improved cost-income ratios but, in view of expected increases in wages provisions, this benefit may be short lived. Overall, Moody's expects the improvement in pre-provision profitability may be under pressure and could now decline. Rising credit costs, due to pressures on asset quality, would curb growth in net income and internal capital generation. SBI is the largest bank in India and accounts for more than 16% of the system's loans and deposits. The bank has nationwide reach through more than 14,000 branches and 22,000 ATMs. Moody's expects these factors to reinforce the long-running advantages in its franchise, funding and liquidity positions, and sees no material outstanding threat to SBI's credit profile. SBI's BCA of ba1 could be revised upwards if asset quality improves and the improvement seems sustainable and capitalization levels improve; specifically, if its gross NPL ratio improves to around 2% and the bank sustains its Tier 1 capital levels via internal capital generation rather than depending upon frequent capital injections from government. SBI's ratings could face downward pressure if asset quality deteriorates further with its reported gross NPL ratio increasing to above 6% or total impaired loans increasing to over 8.5% of total loans. A deterioration in the bank's loss-absorbing buffer, and more particularly a decline in its Tier 1 capital level to below 8%, or a material decline in the combination of profits, loan-loss reserves and capital relative to impaired assets. A downgrade of the Indian government's ratings would have negative implications for SBI's ratings. The principal methodology used in these ratings was Moody's Consolidated Global Bank Rating Methodology published in June 2012. State Bank of India, headquartered in Mumbai, had assets of INR13.36 trillion as of March 31, 2012. U. M. RAMESH: CRISIL Rates INR50MM Term Loan at 'B-' ---------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the term loan facility of U. M. Ramesh Rao. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 50 CRISIL B-/Stable (Assigned) The rating reflects UMRR's working-capital-intensive operations and vulnerability of its operating profitability to risks related to the fragmented nature of the coffee plantation industry and fluctuations in global coffee prices. These rating weaknesses are partially offset by the extensive industry experience of UMRR's promoters. Outlook: Stable CRISIL believes that UMRR will continue to benefit over the medium term from its promoters' extensive experience in the coffee plantation industry. The outlook may be revised to 'Positive' in case of more-than-expected increase in the firm's revenues and profitability, or improvement in its capital structure. Conversely, the outlook may be revised to 'Negative' if UMRR generates lower-than-expected cash accruals, or undertakes a significantly debt-funded capital expenditure programme, resulting in deterioration in its financial risk profile. UMRR, set up in 1975 as a proprietorship firm, operates two coffee estates, Watekhan and Yellikodige, in Chikmagalur district (Karnataka). The firm is managed by Mr U M Ramesh Rao and Mr. Bhaskar Rao. VFC INDUSTRIES: Delays in Loan Payment Cue CRISIL to Junk Ratings ----------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of VFC Industries Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL B/Stable/CRISIL A4'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2 CRISIL D (Downgraded from 'CRISIL A4') Cash Credit 115 CRISIL D (Downgraded from 'CRISIL B/Stable') Letter of Credit 43 CRISIL D (Downgraded from 'CRISIL A4') Proposed Long-Term 12.9 CRISIL D (Downgraded from Bank Loan Facility 'CRISIL B/Stable') Term Loan 46.6 CRISIL D (Downgraded from 'CRISIL B/Stable') The downgrade reflects the continued delays by VIPL in servicing its term debt; the delays have been caused by the company's weak liquidity. VIPL has weak liquidity because of increase in the working capital intensity of its operations, and on account of the large debt contracted to fund its capital expenditure programme towards improving the efficiency of its manufacturing plant. CRISIL believes that VIPL's liquidity will remain weak over the medium term because of the company's working-capital-intensive operations and large debt obligations. VIPL also has a weak financial profile marked by adverse gearing and debt protection metrics on account of depletion of its net worth because of losses in its business. Also, VIPL's business risk profile is constrained by lower profitability on account of the company's relatively small scale of operations, and its inability to pass on increase in prices to its customers. These rating weaknesses are partially offset by VIPL's established market position, supported by limited market competition because of stringent product quality requirements. VIPL, incorporated in 1994, manufactures folding boxboard cartons (FBCs) at its plant in Halol (Gujarat). FBCs are used for packaging products such as fast-moving consumer goods, liquor, tobacco, stationery, perfumes, and pharmaceutical products. The company was formed by the merger of Vijay Art Printing Press, a partnership concern that was set up in 1969, and Rathika Pvt Ltd. For 2011-12 (refers to financial year, April 1 to March 31), VIPL reported a net profit of INR1.48 million on net sales of INR403.64 million, against a net loss of INR75.1 million on net sales of INR464.1 million for 2010-11. * Hong Kong Reinforces Banks Against Property Risk, Fitch Says -------------------------------------------------------------- The Hong Kong regulator's measures to tighten conditions for mortgage financing and introduce a risk-weight floor for residential mortgages help to underpin the banks' credit profiles, Fitch Ratings says. These macro-prudential initiatives are expected to curb new lending and help strengthen banks' resilience against property risk. This is because new property loans will require higher safeguards against any sharp property downturn. Fitch says: "We see no weakening of the banking sector, despite concerns over a possible domestic housing bubble. Hong Kong banks already follow prudent underwriting standards, which have been tightened regularly since 2009. In addition, property-related loan growth was moderate in 2012 at 4.3%. "HKMA's imposition of a more severe 300bp interest-rate stress test (previously 200bp) for all real estate-related underwriting - to determine whether the borrower meets the maximum debt-servicing ratio of 50%-60% - should bolster the banks' defences against a deterioration in mortgage affordability if and when interest rates rise. "The introduction of a 15% risk-weight floor for residential mortgages will only have a limited immediate impact on the strong capital adequacy of the Hong Kong banks. It may help ease pricing competition, and have an overall benefit on net interest margins. This is because the floor will increase the amount of capital that banks using the internal ratings based approach have to set aside for new mortgages. It will bring these large banks' risk-weighted assets/total assets (around 30%-40%) closer to the mid-60% to 70% range for banks using the standardised approach. "The banks also have substantial collateral coverage to help withstand a significant correction in Hong Kong property prices. Residential mortgage loans in negative equity are scarce, while maximum LTVs for new residential mortgage loans remain unchanged at between 30% and 70%. We estimate that residential and commercial property loans are on average at a low 40% of the property value. The lowering of the maximum loan-to-value ratios for financing commercial and industrial properties by 10 percentage points - to 20%-40% - provide additional buffers for these loans. "We do not expect a sudden and severe correction in property prices at present as we see low interest rates and constrained property supply supporting the market. Nevertheless, property loans account for around a third of Hong Kong banks' loans, so they are vulnerable to property-price fluctuations. The banks' sensitivity to property is even greater if unsecured exposures to developers and investments in property (including head office and branches) are included. Banks also rely on property collateral for other types of loans. "The measures, announced last week along with a significant increase in stamp duty, are part of a continuing policy response to the threat of a residential property bubble. However, the higher taxes and stricter underwriting requirements may not contain the risk without effective measures to boost housing supply." ========= J A P A N ========= MF2 SENIOR: S&P Keeps BB Rating on Creditwatch Negative ------------------------------------------------------- Standard & Poor's Ratings Services said that it has kept its ratings on the class A1 and A2 senior asset-backed loans (ABLs) issued under the MF2 Senior Loan transaction on CreditWatch with negative implications, where they were placed on Nov. 28, 2012. S&P placed its ratings on the class A1 and A2 ABLs on CreditWatch negative because the performance of some of the properties backing the transaction's nonrecourse loan was worse than the assumptions S&P had made when it had last reviewed its ratings in October 2011. Three office buildings in Tokyo back the loan, which defaulted in March 2012. The CreditWatch negative placements reflected S&P's view that the likely collection amounts from these properties could come under additional downward pressure. The sales of the properties backing the transaction's nonrecourse loan are currently progressing, and S&P expects the class A1 and A2 ABLs to repay in full upon completion of the sales. Nevertheless, S&P kept its ratings on the class A1 and A2 ABLs on CreditWatch negative because it may still downgrade these ABLs if S&P sees a decreased likelihood that the sales of the related collateral properties will be completed as currently planned. S&P intends to review its ratings on classes A1 and A2 after considering the status of the sales of the above properties and the amount of time remaining until the transaction's legal final maturity date, which is drawing closer. Morgan Stanley Japan Securities Co. Ltd. arranged this commercial mortgage-backed securities (CMBS) transaction. The ratings reflect S&P's opinion on the likelihood of the full and timely payment of interest and the ultimate repayment of principal by the transaction's legal final maturity date in March 2014 for the class A1 ABL and the full payment of interest and ultimate repayment of principal by the legal final maturity date for the class A2 ABL. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATINGS KEPT ON CREDITWATCH NEGATIVE MF2 Senior Loan JPY25.4 billion senior ABLs due March 2014 Class Rating Initial issue amount A1 ABL AA- (sf)/Watch Neg JPY19.0 bil. A2 ABL BB (sf)/Watch Neg JPY4.0 bil. * S&P Raises Rating on 4 Japanese Synthetic CDO Tranches -------------------------------------------------------- Standard & Poor's Ratings Services said that it has raised its ratings on four Japanese synthetic collateralized debt obligation (CDO) transactions by one notch, and removed the ratings from CreditWatch with positive implications. At the same time, S&P kept its ratings on two synthetic CDO transactions on CreditWatch with negative implications. S&P's upgrades of four transactions reflect, among other factors, the tranches' synthetic rated overcollateralization (SROC) ratios, which exceeded 100% with sufficient SROC cushions at higher rating levels as of S&P's February review, as well as S&P's sensitivity analyses in line with its criteria. On the other hand, the SROC ratio of Corsair (Jersey) No. 2 Ltd.'s series 58 fixed rate credit-linked loan was less than 100% as of the February review. However, assuming no rating migration of the reference entities in the portfolio, S&P projects that the loan's SROC would exceed 100% in 90 days. As a result, S&P kept its rating on series 58 on CreditWatch negative. Also, S&P kept its rating on Corsair (Jersey) No. 2 Ltd.'s series 46 credit default swap (CDS) on CreditWatch negative because S&P believes additional information from the issuer on one of the reference entities in the portfolio is required to complete S&P's review of the transaction's credit quality. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Reports included in this credit rating report are available at: http://standardandpoorsdisclosure-17g7.com RATINGS RAISED, REMOVED FROM CREDITWATCH POSITIVE Silk Road Plus PLC Limited-recourse secured floating-rate credit-linked notes series 2 class B1-U To From Amount BB (sf) BB- (sf)/Watch Pos $70.0 mil. Limited-recourse secured variable return combination credit-linked notes series 6 class B3-U To From Amount BBpNRi (sf) BB-pNRi (sf)/Watch Pos $14.0 mil. Limited recourse secured floating-rate credit-linked notes series 10 class A1-E To From Amount BBB- (sf) BB+ (sf)/Watch Pos EUR10.0 mil. Hummingbird Securitisation Ltd. Series 2 loan To From Amount B- (sf) CCC+ (sf)/Watch Pos JPY3.0 bil. RATINGS KEPT ON CREDITWATCH NEGATIVE Corsair (Jersey) No. 2 Ltd. Series 46 credit default swap Rating Amount BBsrp (sf)/Watch Neg JPY3.0 bil. Fixed rate credit-linked loan series 58 Rating Amount B+ (sf)/Watch Neg JPY3.0 bil. ==================== S O U T H K O R E A ==================== SSANGYONG ENG'G: Creditors Move to Put Firm on Debt Work Program ---------------------------------------------------------------- Yonhap News reports that creditors of Ssangyong Engineering & Construction Co. are moving to place the troubled builder under a debt-rescheduling program in a bid to salvage it from a cash crunch, the financial regulator said Wednesday. Ssangyong E&C filed for the program on February 26 after it has suffered from capital erosion due to massive losses for the second straight years in 2012 amid the lackluster housing market. "The creditors shared the view that they would kick off the debt workout program for Ssangyong E&C," Kim Jin-soo, director-general at the Financial Supervisory Service, said in a briefing, Yonhap relates. The builder owed some 50% of its debt to Woori Bank, the main creditor bank, and four other banks. Yonhap says the creditors' meeting to decide to approve the workout program will be held on March 4. If approved, the builder will again be put under a program after it was released from a similar workout scheme in 2004. Based in Seoul, Korea, Ssangyong Engineering & Construction Co., Ltd. -- http://www.ssyenc.com/eng/-- is involved in the areas of construction and engineering. ==================== N E W Z E A L A N D ==================== IAN FRANKLIN: Owner Puts Boat Building Firm Into Liquidation ------------------------------------------------------------ The Marlborough Express reports that Franklins of Waikawa owner Ian Franklin is wrapping up his boat building company after more than 30 years, to concentrate on his boat repairs and maintenance business. The report relates that Mr. Franklin said he put his boat building business Ian Franklin Boat Builders into voluntary liquidation on February 14. The business had been based in Christchurch until August 2011, when he moved to Waikawa after his home and business were damaged by the Canterbury earthquakes. According to the report, Mr. Franklin said it had been a "rough few years" following the earthquakes, which caused major disruptions to his Christchurch business. "After the earthquakes business dried up and the overseas market dried up, it [the Christchurch business] was a big hole," the Express quotes Mr. Franklin as saying. "Business at the Waikawa boatyard, where he provided boat repairs and refurbishments was good and strong . . . it's always been strong up here. Christchurch pulled it down a bit but it's a good feeling to have everything wrapped up." Mr. Franklin started his boat-building business in Christchurch in 1971, and started up the boat repairs and maintenance business in Waikawa in 1992, the Express notes. MAINZEAL PROPERTY: Fletcher Building to Rescue Some Projects ------------------------------------------------------------ Maria Slade at The Dominion Post reports that Fletcher Building is in talks with the receivers of failed construction group Mainzeal Property to see if it can rescue some of the projects left high and dry by the collapse. The Post says improved trading conditions in New Zealand helped Fletcher Building yesterday post marginally higher net earnings for the six months till December of NZ$146 million, up from NZ$144 million at the same time the previous year. Sharebroker Forsyth Barr said net earnings came in above its estimate of NZ$136 million, albeit reflecting better-than-expected tax and interest costs in the period, the Post relays. At its interim results briefing in Auckland on February 20, chief executive Mark Adamson said the trans-Tasman building materials group had agreed with receivers PricewaterhouseCoopers that it would assess partly finished Mainzeal developments job by job, according to the report. The Post relates that Mr. Adamson said picking up half-finished building work was fraught, and it did not want to inherit any issues. "But we are extremely keen to try and see these projects to completion, because some of the developers, or indeed some of the sponsors in the form of the government, are our customers as well. And probably as importantly, we're looking to protect the supplier base." the report quotes Mr. Adamson as saying. Mr. Adamson said the company also had a vested interest in that it was owed NZ$7.5 million by sub-contractors at risk because of the Mainzeal situation, the Post 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 ***