/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130312.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, March 12, 2013, Vol. 16, No. 50 Headlines A U S T R A L I A ILLAWARRA CMBS: Fitch Affirms 'BB' Rating on Class E Certs. MOTHERCARE AUSTRALIA: Offers "Administrations Sale" to Save Firm MULSANNE RESOURCES: Tinkler Lawyer to Seek Stay of Proceedings C H I N A AGFEED INDUSTRIES: Farm Credit Extends Forbearance Until May 1 BEIJING CAPITAL: Moody's Retains Ba2 Corporate Family Rating CHINA EXECUTIVE: Merger with BETC Took Effect March 6 CHINA MINZHONG: Moody's Assigns First-Time Ba3 CFR CHINA SOUTH: Higher Funding Risks Cues Moody's to Cut CFR to B2 LAI FUNG: S&P Affirms 'B+' Corporate Credit Rating H O N G K O N G CHIU WING: Creditors' Proofs of Debt Due March 15 CONVENIENCE STATIONER: Creditors' Proofs of Debt Due March 15 HENRY ENGINEERING: Lau Angela Fun Chan Steps Down as Liquidator KEMCLAY LIMITED: Creditors' Proofs of Debt Due March 15 MEAG PACIFIC: Cowley and Wong Step Down as Liquidators PREMIUM HK: Members' Final General Set for April 2 PRIMA VISION: Commences Wind-Up Proceedings PROFESSIONAL RESOURCES: Creditors' Proofs of Debt Due April 2 SARASIN INVESTMENT: Creditors' Proofs of Debt Due March 15 SHINE POINT: Placed Under Voluntary Wind-Up Proceedings SOUTH HORIZONS: Commences Wind-Up Proceedings SUN MOTOR: Annual Meetings Set for March 26 SUN MOTOR MANUFACTORY: Annual Meetings Set for March 26 SUN MOTOR OEM: Annual Meetings Set for March 26 SUN MOTOR PRECISION: Annual Meetings Set for March 26 SY HONG: Commences Wind-Up Proceedings TAP MUN: Members' Final General Set for April 2 TARGET MAGIC: Members' Final General Set for April 2 TEIFEBS LIMITED: Commences Wind-Up Proceedings TUREF NOVS: Commences Wind-Up Proceedings TWON ARY: Commences Wind-Up Proceedings VAST BILLION: Creditors' Proofs of Debt Due April 1 WATERFRONT W: Commences Wind-Up Proceedings WORLDMART DEVELOPMENT: Commences Wind-Up Proceedings WORLDWIDE TIME: Placed Under Voluntary Wind-Up Proceedings WORLD LUCK: Creditors' Proofs of Debt Due March 15 ZETEX INTERNATIONAL: Creditors' Meeting Set for March 15 I N D I A HIMALAYAN POLYMER: CARE Reaffirms 'C' Rating on INR17.91cr Loans INVENT BIO: CARE Reaffirms 'BB-' Rating on INR8.05cr Loans KPC MEDICAL: CARE Reaffirms 'B+' Rating on INR127.3cr LT Loans LION INSULATION: CARE Rates INR11cr LT Loan at 'CARE B' ROYAL FASTENERS: CARE Reaffirms 'BB+' Rating on INR5.28cr Loans SANDIP NANAVATI: CARE Assigns 'BB' Rating to INR1.09cr LT Loans S. K. TREXIM: CARE Assigns 'BB-' Rating to INR3.5cr LT Loans SR BUILDCON: CARE Rates INR38.38cr LT Loan at 'CARE BB-' URVASHI PULP: CARE Assigns 'B' Ratings to INR7.01cr Loans I N D O N E S I A STAR ENERGY: Fitch Assigns 'B+' Rating to Sr. Secured Notes J A P A N NCI TRUST: S&P Lowers Rating on Class D Certificates to 'D' SHARP CORP: Mulls Selling New Shares to Raise JPY100 Billion N E W Z E A L A N D AORANGI SECURITIES: HMF Managers to Make Further 15c Payment HANOVER FINANCE: Ex-Director Wants Trustees to Help Pay Damages X X X X X X X X * BOND PRICING: For the Week March 4 to March 8, 2013 - - - - - ================= A U S T R A L I A ================= ILLAWARRA CMBS: Fitch Affirms 'BB' Rating on Class E Certs. ----------------------------------------------------------- Fitch Ratings has affirmed 10 tranches of two Illawarra CMBS transactions. The transactions are backed by a pool of Australian small balance commercial mortgages originated by IMB Ltd. The rating actions are: Illawarra Series 2007-1 CMBS Trust (Illawarra 2007-1 CMBS): AUD29.7m Class A (ISIN AU3FN0002747) affirmed at 'AAAsf'; Outlook Stable AUD12.25m Class B (ISIN AU3FN0002754) affirmed at 'AAAsf'; Outlook Stable AUD10.25m Class C (ISIN AU3FN0002838) affirmed at 'AAsf'; Outlook Stable AUD8m Class D (ISIN AU3FN0002853) affirmed at 'Asf'; Outlook Stable AUD4.3m Class E (ISIN AUSFN0002788) affirmed at 'BB+sf'; Outlook Stable Illawarra Series 2011-1 CMBS Trust (Illawarra 2011-1 CMBS): AUD109.9m Class A (ISIN AU3FN0014007) affirmed at 'AAAsf'; Outlook Stable AUD5.17m Class B (ISIN AU3FN0014015) affirmed at 'AAsf'; Outlook Stable AUD8.41m Class C (ISIN AU3FN0014023) affirmed at 'Asf'; Outlook Stable AUD9.73m Class D (ISIN AU3FN0014031) affirmed at 'BBBsf'; Outlook Stable AUD2.03m Class E (ISIN AUSFN0014049) affirmed at 'BBsf'; Outlook Stable Key Rating Drivers The rating actions reflect Fitch's view that available credit enhancement supports the notes at their current ratings and that the credit quality and performance of the underlying loans has remained within the agency's expectations. Arrears and losses have consistently been low and excess spread has remained stable. As the mortgage portfolios reduce in size, the risk of principal losses resulting from the concentrated default of large loans becomes the primary driver of Fitch's analysis. Since closing in May 2007, Illawarra 2007-1 CMBS has experienced two defaults generating a loss of AUD261,288 which was fully covered by excess spread and credit enhancement provided by the unrated Class F notes. Arrears historically have been low and as at end-December 2012 there were no loans in arrears. Illawarra Series 2011-1 CMBS has experienced no defaults since closing in August 2011. As at end-December 2012 just one loan with a balance of AUD91,942, was in arrears by 30-59 days, equivalent to 0.06% of the outstanding pool balance. Rating Sensitivities The prospect for downgrades is considered remote at present given the satisfactory performance of the pools, as well adequate excess spread and subordination. Current and expected concentration levels in both portfolios are a constraint on the ratings. MOTHERCARE AUSTRALIA: Offers "Administrations Sale" to Save Firm ---------------------------------------------------------------- The Sydney Morning Herald reports that Mothercare Australia has announced an "administrations sale" in a last bid attempt to rescue the embattled baby clothing and accessories retailer. According to the report, the 43 Mothercare, Early Learning Centre and Kids Central stores went into voluntary liquidation following the collapse of its sale to the Myer family company. Eighteen stores have closed since late January. SMH relates that a spokesman for BRI Ferrier, the administrator for the retailer, said staff who worked at the 18 stores that have been closed and couldn't be relocated have been terminated and their redundancy packages "frozen in line with voluntary administration procedures." There are up to 400 staff who are at risk of losing their jobs. The sale, announced on March 8, will offer up to 40% off stock. "The stock sale campaign will run in conjunction with the Administrators' continuing efforts in negotiating a sale of the business as a going concern," the administrators from BRI Ferrier said in a statement, SMH relates. Stores now closed in NSW include Bondi Junction, Artarmon, Erina and Penrith, the report relays. About Mothercare Australia Mothercare Australia is an independent business established under a franchise license from Mothercare PLC, a UK business retailing parenting and children's products, mother's and children's fashion and educational toys. Antony Resnick and Brian Silvia of BRI Ferrier were appointed voluntary administrators of Mothercare Australia, comprising of Mothercare Australia Limited, Skansen Pty Ltd, Skansen KCG Pty Ltd and Baby On A Budget Pty Ltd on Jan. 29, 2013. The companies together operate the Mothercare business in Australia and control the Mothercare business in New Zealand. BRI Ferrier said they were appointed by the directors following the failure to proceed of a proposed sale of the business to Myer Family Group. Without the support provided by that sale, the directors believed that Mothercare Australia may be, or will become, insolvent and accordingly acted to protect the interests of the Companies and their creditors. MULSANNE RESOURCES: Tinkler Lawyer to Seek Stay of Proceedings -------------------------------------------------------------- The Australian Associated Press reports that a judge will hear this week why troubled businessman Nathan Tinkler's lawyers think he should not have to answer questions from the liquidators of his Mulsanne Resources in court. AAP relates that the former billionaire and his fellow directors were due to appear in the NSW Supreme Court on Friday, March 15, to be examined over Mulsanne's failure to pay AUD28.4 million for buying a major stake in listed coal explorer Blackwood Corporation. However, his barrister Alec Leopold SC told the court that he would be seeking a stay of the proceedings, the report relays. According to the report, Mr. Leopold said the same solicitor had acted on behalf of Mulsanne's liquidator Ferrier Hodgson, Blackwood and a major shareholder. Mr. Leopold also said the liquidator had met with Blackwood and the major shareholder, the report relays. The matter was listed for directions in the NSW Supreme Court on March 18. Justice Paul Brereton adjourned the case for a hearing on March 19. AAP notes that Blackwood sued Mulsanne Resources after Mr. Tinkler's company agreed last July to buy a 33.85% stake in it for AUD28.4 million. But Mulsanne then failed to follow through with the deal. 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. ========= C H I N A ========= AGFEED INDUSTRIES: Farm Credit Extends Forbearance Until May 1 -------------------------------------------------------------- AgFeed USA, LLC, a wholly owned subsidiary of AgFeed Industries, Inc., and certain subsidiaries of AgFeed USA, LLC, Farm Credit Services of America, FLCA, and Farm Credit Services of America, PCA, entered into an amendment to the Forbearance Agreement, dated Feb. 1, 2013, among the Borrowers and Farm Credit, with respect to AgFeed USA, LLC's Credit Agreement, dated June 6, 2006. In the Amendment, Farm Credit agreed that it will extend the period during which it will take no action to enforce its default remedies under the Credit Agreement and related security and other agreements until the earlier of (1) violation of the Forbearance Agreement or further breach of the Credit Agreement and related security and other agreements or (2) May 1, 2013. The Company is working closely with Farm Credit in reviewing its financing options. A copy of the Amended Forbearance is available at: http://is.gd/JyQ7WD About Agfeed Industries NASDAQ Global Market Listed AgFeed Industries, formerly known as M2 P2, LLC, is an international agribusiness with operations in the U.S. and China. AgFeed has two business lines: animal nutrition in premix, concentrates and complete feeds and hog production. In the U.S., AgFeed's hog production unit, M2P2, is a market leader in setting new standards for production efficiency and productivity. AgFeed believes the transfer of these processes, procedures and techniques will allow its new Western- style Chinese hog production units to set new standards for production in China. China is the world's largest pork market consuming 50% of global production and over 62% of total protein consumed in China is pork. Hog production in China currently enjoys income tax free status. BEIJING CAPITAL: Moody's Retains Ba2 Corporate Family Rating ------------------------------------------------------------ Moody's Investors Service reports that Beijing Capital Land Limited's 2012 results were weaker than expected, but within the parameters of its current corporate family rating of Ba2 and stable outlook. "BJCL's key financial ratios for 2012 have weakened -- as exemplified by lower profit margins and increased borrowings -- due to changes in its product mix and an increased pace in expansion," says Kaven Tsang, a Moody's Vice President and Senior Analyst. BJCL's gross margin dropped to 27% in 2012 from 33% in 2011 due to an increased revenue contribution from lower-priced projects in lower-tier cities around China. But Moody's expects such margins to slightly improve to around 30% in 2013 because the company plans for the delivery of more projects in major cities, like Beijing and Tianjin. BJCL's debt level increased to RMB18.6 billion at end-2012 from RMB13.0 billion at end-2011, as the company needs fund to support its projects, primary-land developments and liquidity for new acquisitions. As a result, adjusted debt/capitalization was high at 67.5% at end-2012 and adjusted net debt/net capitalization was 54.5%. Meanwhile, adjusted EBITDA/interest was weak at below 2x. Such credit metrics position BJCL at the weaker end of the Ba2 rating. On the other hand, BJCL's contract sales of RMB13.3 billion were 20.1% higher than 2011 and 10.5% higher than its target. An increase in projects and better market conditions contributed to the improved level of contract sales. "In light of the better contract sales, Moody's expects BJCL to continue increasing revenues -- up 21% to RMB9.1 billion in 2012 from RMB7.5 billion in 2011 -- which could in turn improve its financial metrics over the next 12 -- 18 months". Moody's expects BJCL's adjusted net debt/net capitalization will trend down to 50% over the next 1-2 years, while EBITDA/interest will trend towards 2.5x, as it gradually repays high-cost trust finance. With better contract sales, BJCL accordingly shows better liquidity. Its cash on hand of RMB8.6 billion -- together with estimated operating cash flow of RMB2-2.5 billion over the next 12 months -- can cover its short-term maturing debt of RMB3.5 billion and committed land payment premiums of RMB5.9 billion. The latter figure includes the cost of recent land acquisitions in Beijing and Chongqing. At the same time, BJCL's Ba2 corporate family rating continues to reflect its medium-sized operation and track record of operating through various business cycles since it was established in 2002. The rating further reflects BJCL's good access to funding and its ability to secure good growth opportunities because of its close relationship with its parent and the Beijing Municipal Government. The principal methodology used in this rating was the Global Homebuilding Industry Methodology published in March 2009. Incorporated in China, BJCL is a mid-sized developer in China's residential property sector. As of 31 December 2012, it had a total land bank of 9.52 million square meters (sqm) (attributable land bank: 7.48 million sqm) in GFA covering 15 cities in China. This land bank would support the company's development for the next 3-4 years. CHINA EXECUTIVE: Merger with BETC Took Effect March 6 ----------------------------------------------------- The merger of Beyond Extreme Training Corp. with and into China Executive Education Corp. pursuant to Section 92A.180(2) of Nevada Revised Statute became effective on March 6, 2013. CEEC is the corporation surviving the merger, and as a result of the merger is now a privately held wholly-owned subsidiary of the rollover shareholders Kaien Liang, Pokai Hsu, Tingyuan Chen, Yen Chen Chi, Huang-Jen Chou, ChiaYeh Lin, China Berkshire Surpass Buffett Co., Ltd., and Zhicheng Zheng. CEEC filed a final amendment to that Transaction Statement on Schedule 13E-3 filed by the Rollover Shareholders, CEEC, and CTEC on Oct. 16, 2012, as amended. Pursuant to the terms of the merger, each outstanding share of common stock will be cancelled and converted into the right to receive $0.324 per share in cash, without interest. A copy of the Amended Schedule 13E-3 is available at: http://is.gd/Jyc4VB In a separate regulatory filing, CEEC filed a Form 15 with the SEC to voluntarily terminate the registration of its common stock and suspend its duty to file reports under Sections 13 and 15(d) of the Securities Exchange Act of 1934. As of March 6, 2013, there was only one holder of the common shares. About China Executive Hangzhou, China-based China Executive Education Corp. is an executive education company with operations in Hangzhou and Shanghai, China. It operates comprehensive business training programs that are designed to fit the needs of Chinese entrepreneurs and to improve their leadership, management and marketing skills, as well as bottom-line results. Albert Wong & Co, in Hong Kong, China, issued a "going concern" qualification on the financial statements for the year ended Dec. 31, 2011. The independent auditors noted that the Company has accumulated deficits as at Dec. 31, 2011, of $17,466,892 including net losses of $5,478,202 for the year ended Dec. 31, 2011, which raised substantial doubt about the Company's ability to continue as a going concern. The Company reported a net loss of US$5.47 million in 2011, compared with a net loss of US$8.54 million in 2010. China Executive's balance sheet at Sept. 30, 2012, showed US$9.01 million in total assets, US$28.20 million in total liabilities and a US$19.18 million total stockholders' deficiency. CHINA MINZHONG: Moody's Assigns First-Time Ba3 CFR -------------------------------------------------- Moody's Investors Service assigned Ba3 corporate family and senior unsecured debt ratings to China Minzhong Food Corporation Limited. At the same time, Moody's has assigned a Ba3 rating to China Minzhong's proposed USD bonds. This is the first time that Moody's has assigned ratings to China Minzhong. The outlook for the ratings is stable. Ratings Rationale: "China Minzhong's Ba3 rating reflects its established business model. It provides a wide range of processed vegetables to overseas markets, shows a track record of food safety and quality assurance, demonstrates improved techniques for cultivation and processing, and offers high-value new products," says Lina Choi, a Moody's Vice President and Senior Analyst. "China Minzhong is well positioned to grow, supported by the increase in demand for safe and quality vegetables in China," says Choi, who is also the lead analyst for Minzhong. Steadily growing domestic vegetable consumption is the biggest factor supporting China Minzhong, especially as it has the scale to further expand both in size and in product variety. In response to multiple negative food safety events in the past two years, the Chinese government has stepped up industry regulation, and encouraged industrialization and consolidation of the industry. These developments provide a favorable environment for China Minzhong to grow its business and reinforce its market position. "China Minzhong's unique integrated business model -- which encompasses fresh food cultivation and food processing -- also provides flexibility in a sector where product prices may be volatile," says Choi. "However, the rating is also constrained by the challenges of consistently rising costs in labor, farmland acquisitions and raw materials, which could become material as the company plans to expand its industrialized farming facilities and raise the yield of various mushroom products for the domestic market", says Choi. Despite its track record and experience in fresh crop cultivation, China Minzhong's home market in China remains highly fragmented and competitive. Cost inflation is unlikely to abate in the near term, and a strong RMB diminishes its competitiveness in the export business. China Minzhong is also pursuing the cultivation and processing of high-priced vegetables, such as the king oyster mushrooms, for domestic consumption to achieve new sales and high profit margins to counter the weakness in the European market and the rising cost of production. This new domestic business demands skill in increasing its customer base and collecting receivables. China Minzhong has to demonstrate that it can execute such new business initiatives and preserve its strong credit metrics -- Adjusted debt/EBITDA should stay at around 1x, while EBITDA/interest should stay well over 6x in the next three years. China Minzhong has sufficient liquidity. Its operating cash flow of more than RMB1 billion and cash on hand of around RMB300 million will be enough to cover committed capital expenditures and short-term debt. The stable outlook reflects Moody's expectation that Minzhong will maintain stable revenue streams and profitability from its processed vegetable business with a satisfactory record of product quality and safety. The company is also expected to maintain its current strong credit metrics, while expanding its cultivation capacity and new product investments. Upward rating pressure is limited in the near term as the company is expanding its domestic business. However, positive rating momentum may arise if the company (1) successfully expands the sales of its high value products, such as organic fresh vegetables and king oyster mushrooms in the local market, thereby providing another stable revenue stream and reducing the impact of lower cost competitiveness in export markets; (2) avoids any deterioration in its cash conversion cycle; and (3) maintains steady profitability and low debt leverage. On the other hand, downward rating pressure may arise if the company (1) encounters any product quality and food safety failures which significantly affect its corporate image and businesses; (2) fails to maintain stable revenue contributions from its export of processed vegetables, which could result from competition from producers in China, or other low cost countries; (3) engages in aggressive capital spending or farmland acquisitions, which pressure its liquidity position and balance sheet strength; or (4) its profitability weakens and leverage increases, such that Debt/EBITDA exceeds 4x. The principal methodology used in this rating was Global Food - Protein and Agriculture Industry Methodology published in September 2009. Listed on the Singapore Stock Exchange in April 2010 and started as a collective enterprise specializing in dehydrated vegetables, China Minzhong Food Corporation Ltd has been operating its vegetable processing business for 40 years. It produces more than 100 types of processed vegetables for customers in 26 countries. PT Indofood (29.3%) and Franklin Templeton Investments (11.1%) are the two major shareholders with a collective 40.4% ownership. CHINA SOUTH: Higher Funding Risks Cues Moody's to Cut CFR to B2 --------------------------------------------------------------- Moody's Investors Service downgraded China South City Holdings Limited's corporate family rating to B2 from B1 and its senior unsecured debt rating to B3 from B2. This action concludes the ratings review which commenced on December 10, 2012, following the company clarification of the need for certain certificates and permits for its property projects. The ratings outlook is stable. Ratings Rationale: "The ratings downgrade reflects the significant business risks and execution challenges associated with CSC's fast development of trade and logistics centers, as well as its increased level of funding risk because of the need to support such fast development," said Jiming Zou, a Moody's analyst. In this environment, and as indicated in its 4 December 2012 announcement, CSC has not secured all the necessary government certificates and permits for its property projects under construction. The company indicated to Moody's that it has already made good progress towards resolving this issue in the last three months. Nonetheless, it will need more time and will need to take more steps to obtain all the required certificates and permits. As such, Moody's considers that the level of risk associated with CSC's business model has increased, given the extent of projects under construction without proper certificates and permits. Its lack of full compliance in part of the projects under construction could impact access to funding and therefore adversely affect liquidity. CSC requires a high level of funding because of the fast pace of expansion and the fact that its sales pattern is lumpy with a high proportion occurring in the last few months of each fiscal year. About 3 million sqm of gross floor area -- about 5 times its contracted area for 2011/12 -- were under development as of September 2012. Accordingly, Moody's considers CSC's current credit profile as more appropriately positioned in the B2 category. At the same time, its B2 corporate family rating reflects its successful development and operation of a single integrated trade center in Shenzhen. It also considers CSC's ability to access large suburban land plots at low cost, as well as the support it receives from local governments on infrastructure improvement projects and property project terms. As a result, it has achieved a high gross margin of above 50% and can recover costs within 3-4 years. But its rating is constrained by its fast expansion into large- scale developments in new locations. Such an approach presents a degree of execution risk. The volatility in its sales will remain high, and the company will need to secure a critical mass of tenants and make further progress on adjacent infrastructure developments to ramp up sales. It is also very dependent on the strength of regional economies. In addition, CSC has yet to achieve a meaningful stream of recurring rental income from its logistics and trade centers, and which can significantly contribute to debt servicing. CSC's unrestricted cash balance could cover its short-term debt of around HKD3 billion as of September 2012. However, Moody's expects external financing will be necessary to meet capital spending according to its development schedule, and despite some flexibility in its construction schedule. CSC's bond rating is one notch below its corporate family rating, reflecting structural subordination to the company's bank loans at its domestic subsidiaries, which accounted for nearly 16% of total assets as of September 2012. Moody's expects this ratio will not decline materially in the coming 2-3 years. The stable outlook reflects Moody's expectation that CSC will progress towards full compliance and that it will carefully manage capital spending to maintain satisfactory liquidity position in the next 12-18 months. A rating upgrade is unlikely before the company receives all the necessary certificates and permits for its projects. Upward rating pressure could be considered, if CSC (1) shows a track record of development with proper certificates and permits; (2) establishes a track record of stable sales growth in locations outside Shenzhen; (3) demonstrates a healthy financial profile with EBITDA/interest exceeding 3x -- 3.5x and debt/book capitalization below 40%-45%, and (4) strengthens its liquidity profile. On the other hand, the ratings could be downgraded, if CSC (1) shows weakened sales or liquidity; (2) fails to reduce its inventory without proper certificates and permits; or (3) undertakes further aggressive expansion into more new locations to the detriment of its financial profile, such that debt/book capitalization exceeds 50%-55%. The principal methodology used in this rating was the Global Homebuilding Industry Methodology published in March 2009. China South City, listed on the Hong Kong Stock Exchange, is a developer and operator of large-scale integrated logistics and trade centers in China. The company operates one center in Shenzhen and is developing new trade centers in Nanning, Nanchang, Xian, Harbin, Zhengzhou and Hefei. LAI FUNG: S&P Affirms 'B+' Corporate Credit Rating -------------------------------------------------- Standard & Poor's Ratings Services said that it had revised the rating outlook on China-based property developer Lai Fung Holdings Ltd. to stable from negative. In line with the outlook revision, S&P raised its long-term Greater China regional scale rating on Lai Fung and its outstanding senior unsecured notes to 'cnBB' from 'cnBB-'. S&P also affirmed its 'B+' long-term foreign currency corporate credit rating on Lai Fung and 'B+' issue rating on its senior unsecured notes. "We revised the rating outlook to reflect our expectation that Lai Fung's cash flow will likely improve in the coming 12 months because of sizable recurring income from its gradually expanding leasing property portfolio and a modest increase in property sales," said Standard & Poor's credit analyst Frank Lu. "The sales improvement should stem from a stabilizing property market in China and higher volume of properties available for sale. We also expect the company to maintain disciplined financial management despite a revived appetite for expansion." Lai Fung's recurring income remains a rating support. S&P expects the company's rental income to increase by 10%-15% per year in the next two years because of positive "rental reversions" (or higher rents on renewal of expiring leases), high occupancy, and additional small-scale leasing properties. Lai Fung's property sales performance should improve over the next 12 months, but will likely remain volatile because of project concentration risk. S&P anticipates Lai Fung's property contract sales will rise to Hong Kong dollar (HK$) 1.2 billion- HK$1.4 billion in fiscal 2013 from a weak HK$843 million in fiscal 2012. "We believe refinancing risks have reduced for Lai Fung's US$200 million senior unsecured notes due 2014 after the company entered into a three-year syndication loan facility that can fully cover the note repayments," said Mr. Lu. The stable outlook reflects S&P's expectation that Lai Fung's investment properties will continue to generate sizable cash flow to cover most of its interest expenses, and that its property sales will improve over the next 12 months but remain volatile. S&P also expects the company to maintain disciplined financial management while pursing expansion. S&P may lower the rating if: (1) Lai Fung's rental income declines for a prolonged period; (2) the company's debt-funded growth becomes more aggressive than S&P expects, such that its leverage and interest expenses increase significantly. Rental income EBITDA interest coverage that is materially below 1.0x for a prolonged period could indicate such weakness. Rating upside is limited for the next 12 months. S&P may raise the rating if Lai Fung expands its investment portfolio and materially increases recurring income, improves its project diversity, and maintains or improves its capital structure and cash flow coverage. ================ H O N G K O N G ================ CHIU WING: Creditors' Proofs of Debt Due March 15 ------------------------------------------------- Creditors of Chiu Wing Enterprise Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: Fok Hei Yu c/o FTI Consulting (Hong Kong) Limited Level 22, The Center 99 Queen's Road Central Central, Hong Kong CONVENIENCE STATIONER: Creditors' Proofs of Debt Due March 15 ------------------------------------------------------------- Creditors of Convenience Stationer Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: Jacqueline Walsh Level 17, Tower 1 Admiralty Centre 18 Harcourt Road Hong Kong HENRY ENGINEERING: Lau Angela Fun Chan Steps Down as Liquidator --------------------------------------------------------------- Lau Angela Fun Chan stepped down as liquidator of Henry Engineering System Company Limited on Feb. 21, 2013. KEMCLAY LIMITED: Creditors' Proofs of Debt Due March 15 ------------------------------------------------------- Creditors of Kemclay Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: Wong Kwok Keung 29/F, Caroline Centre, Lee Gardens Two, 28 Yun Ping Road Hong Kong MEAG PACIFIC: Cowley and Wong Step Down as Liquidators ------------------------------------------------------ Patrirck Cowley and Wong Wing Sze Tiffany stepped down as liquidators of Meag Pacific Star Asia Limited on Feb. 25, 2013. PREMIUM HK: Members' Final General Set for April 2 -------------------------------------------------- Members of Premium Hong Kong Limited will hold their final general meeting on April 2, 2013, at Room 1307-8 Dominion Centre, 43-59 Queen's Road East, Wanchai, in Hong Kong. At the meeting, Poon Chi Woo, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PRIMA VISION: Commences Wind-Up Proceedings ------------------------------------------- Members of Prima Vision Limited, on Feb. 20, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Lai Kar Yan (Derek) Yeung Lui Ming (Edmund) 35th Floor, One Pacific Place 88 Queensway, Hong Kong PROFESSIONAL RESOURCES: Creditors' Proofs of Debt Due April 2 ------------------------------------------------------------- Creditors of Professional Resources Centre (Ministry) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 2, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 22, 2013. The company's liquidator is: Tseung Siu Hang Unit 1003A, 10/F 113 Argle Street Mong Kok, Kowloon Hong Kong SARASIN INVESTMENT: Creditors' Proofs of Debt Due March 15 ---------------------------------------------------------- Creditors of Sarasin Investment Management Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 15, 2011, to be included in the company's dividend distribution. The company's liquidators are: Natalia K M Seng Susan Y H Lo Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong SHINE POINT: Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------- At an extraordinary general meeting held on Feb. 22, 2013, creditors of Shine Point Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Chan Che Wai Units 2201-2, 22/F ING Tower, 308 Des Voeux Road Central, Hong Kong SOUTH HORIZONS: Commences Wind-Up Proceedings --------------------------------------------- Members of South Horizons SH Limited, on Feb. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong SUN MOTOR: Annual Meetings Set for March 26 ------------------------------------------- Members and creditors of Sun Motor Holding Company Limited will hold their annual meetings on March 26, 2013, at 11:30 a.m., and 11:45 a.m., respectively at 32nd Floor of One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SUN MOTOR MANUFACTORY: Annual Meetings Set for March 26 ------------------------------------------------------- Members and creditors of Sun Motor Manufactory Limited will hold their annual meetings on March 26, 2013, at 2:00 p.m., and 2:15 p.m., respectively at 32nd Floor of One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SUN MOTOR OEM: Annual Meetings Set for March 26 ----------------------------------------------- Members and creditors of Sun Motor OEM Company Limited will hold their annual meetings on March 26, 2013, at 2:30 p.m., and 2:45 p.m., respectively at 32nd Floor of One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SUN MOTOR PRECISION: Annual Meetings Set for March 26 ----------------------------------------------------- Members and creditors of Sun Motor Precision Products Limited will hold their annual meetings on March 26, 2013, at 3:00 p.m., and 3:15 p.m., respectively at 32nd Floor of One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. SY HONG: Commences Wind-Up Proceedings -------------------------------------- Members of Sy Hong Corporation Limited, on Feb. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong TAP MUN: Members' Final General Set for April 2 ----------------------------------------------- Members of Tap Mun Community Development Limited will hold their final meeting on April 2, 2013, at 10:00 a.m., at Room D, 32nd Floor, Tower 1, Lippo Centre, at 89 Queensway, in Hong Kong. At the meeting, Leung Wun Man Emba, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TARGET MAGIC: Members' Final General Set for April 2 ---------------------------------------------------- Members of Target Magic Limited will hold their final meeting on April 2, 2013, at Room 1702, 17th Floor, Tung Hip Commercial Building, at 248 Des Voeux Road Central, in Hong Kong. At the meeting, Lee Siu Leung, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. TEIFEBS LIMITED: Commences Wind-Up Proceedings ---------------------------------------------- Members of Teifebs Limited, on Feb. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong TUREF NOVS: Commences Wind-Up Proceedings ----------------------------------------- Members of Turef Novs Limited, on Feb. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre 6-8 Harbour Road Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre Wanchai, Hong Kong TWON ARY: Commences Wind-Up Proceedings --------------------------------------- Members of Twon Ary Limited, on Feb. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong VAST BILLION: Creditors' Proofs of Debt Due April 1 --------------------------------------------------- Creditors of Vast Billion Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by April 1, 2013, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Feb. 20, 2013. The company's liquidator is: Ho Sun Fung Allan Room 2702-3, C.C. Wu Building 302-8 Hennessy Road Wanchai, Hong Kong WATERFRONT W: Commences Wind-Up Proceedings ------------------------------------------- Members of Waterfront W Limited, on Feb. 25, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Chen Yung Ngai Kenneth 313-317, 3/F, Shui On Centre 6-8 Harbour Road Wanchai, Hong Kong WORLDMART DEVELOPMENT: Commences Wind-Up Proceedings ---------------------------------------------------- Members of Worldmart Development Limited, on Feb. 5, 2013, passed a resolution to voluntarily wind up the company's operations. The company's liquidator is: Liu Kam Lung Unit B, 12/F Success Commercial Building 245 Hennessy Road Wanchai, Hong Kong WORLDWIDE TIME: Placed Under Voluntary Wind-Up Proceedings ---------------------------------------------------------- At an extraordinary general meeting held on Feb. 25, 2013, creditors of Worldwide Time Limited resolved to voluntarily wind up the company's operations. The company's liquidator is: Siu Yee Cheong Stephen Room 1003, Easey Commercial Building 253-261 Hennessy Road Hong Kong WORLD LUCK: Creditors' Proofs of Debt Due March 15 -------------------------------------------------- Creditors of World Luck Trading Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by March 15, 2011, to be included in the company's dividend distribution. The company's liquidator is: Jacqueline Walsh Level 17, Tower 1 Admiralty Centre 18 Harcourt Road Hong Kong ZETEX INTERNATIONAL: Creditors' Meeting Set for March 15 -------------------------------------------------------- Creditors of Zetex International Limited will hold their meeting on March 15, 2013, at 3:00 p.m., for the purposes provided for in Sections 241, 242, 243, 244 and 255A of the Companies Ordinance. The meeting will be held at Rm. 1006, 10/F, Landmark North, 39 Lung Sum Avenue, Sheung Shui, N.T., in Hong Kong. ========= I N D I A ========= HIMALAYAN POLYMER: CARE Reaffirms 'C' Rating on INR17.91cr Loans ---------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Himalayan Polymer Industries. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 17.91 CARE C Reaffirmed Short-term Bank Facilities 4.50 CARE A4 Reaffirmed The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The ratings may undergo a change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Himalayan Polymer Industries continue to remain constrained by its constitution being a partnership, weak liquidity position, small scale of operations, leveraged capital structure, susceptibility to volatility in raw material prices and working capital intensive nature of operations. The ratings are further constrained by its presence in highly competitive packaging industry. The ratings, however, continue to draw comfort from its experienced promoters and benefits derived from its presence in tax-free zone. Going forward, the effective management of working capital and maintaining the profitability margins shall be the key rating sensitivities. Himalayan Polymer Industries was established in December 2009 as a partnership firm by Mr. Suresh Singhal, Mr. Om Prakash Jalan and Mr. Rajeev Maheshwari. The firm is engaged in manufacturing of Polyethylene Terephthalate (PET) and polypropylene (PP) bottles and containers for pharma filling, water bottles and liquor filling. The main raw materials for HPI are Pet resins which are procured domestically as well as by way of imports. HPI is primarily engaged in B2B marketing and selling arrangement. The Himalayan group includes Himalayan Packaging Industries Pvt Ltd, (rated 'CARE C/CARE A4') which is also engaged in the field of PET packaging for pharmaceutical, distillery and food product segments and has been operational since FY08. INVENT BIO: CARE Reaffirms 'BB-' Rating on INR8.05cr Loans ---------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of Invent Bio Med Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.05 CARE BB- Reaffirmed Short-term Bank Facilities 2.50 CARE A4 Reaffirmed Rating Rationale The ratings of Invent Bio Med Private Limited continue to be constrained by its relatively small scale of operations with a low net worth base, moderately high gearing level and stretched liquidity position. The ratings are further constrained by the competition faced by the company from the global players in the healthcare industry. These constraints far outweigh the strength derived from the experience of the management and the favorable prospects of the Indian healthcare devices industry. The ability of IBPL to improve its overall scale of operations and financial risk profile, efficient management of its working capital cycle and improvement in the liquidity position are the key rating sensitivities. Invent Bio-Med Private Limited, incorporated in the year 2005 is promoted by Mr. Ravi Srivastava and his wife Mrs Nivedita Srivastava. IBPL is engaged in the business of manufacturing Cardio Vascular interventional devices with its main product being coronary stents used for arterial diseases. During FY12 (refers to the period April 1 to March 31), the company generated major percentage of its revenue from the export market, mainly to Europe, Russia, UAE and Sri Lanka. IBPL has a network of more than 40 distributors across India. The company has its manufacturing facility located at Special Economic Zone (SEZ), Surat. KPC MEDICAL: CARE Reaffirms 'B+' Rating on INR127.3cr LT Loans -------------------------------------------------------------- CARE reaffirms the ratings assigned to the bank facilities of KPC Medical College & Hospital, Jadavpur. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 127.3 CARE B+ Reaffirmed Short-term Bank Facilities 15.0 CARE A4 Reaffirmed Rating Rationale The ratings continue to be constrained by net deficit during the last four years leading to erosion of networth and stress on the liquidity position. The ratings also factor in the association of eminent doctors with the hospital, satisfactory infrastructure with the latest available technology and infusion of funds by the promoters. The ability to further improve its infrastructure, introduce postgraduate courses subject to necessary statutory approvals and improve its profitability and the capital structure would remain the key rating sensitivities. KPC Medical College and Hospital was promoted by Dr K. P. Chaudhuri in August 2003 as a society registered under the West Bengal Societies Registration Act, 1961. KPC was established with an objective of setting up a medical college along with a 750-bed hospital on 48 acres of land in Kolkata. KPC is one of the first private medical educational institutions for imparting undergraduate studies in West Bengal and is affiliated to the West Bengal University of Health Sciences and is approved by the Government of West Bengal. While the hospital became operational in 2007, the medical college started its operation in 2008. Besides the hospital and the medical college, KPC also has a B.Sc Nursing college and a General Nursing & Midwifery (GNM) Nursing school in the same campus which provide for the requirement of nurses in the hospital. In accordance with Medical Council of India guidelines, KPC is now admitting 150 students (per year) in the MBBS course. The college is already permitted by Medical Council of India (MCI), and having completed five years, it expects to receive its Letter of Recognition this year. LION INSULATION: CARE Rates INR11cr LT Loan at 'CARE B' ------------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of Lion Insulation Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 11 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of Lion Insulation Private Limited is tempered by the execution risk associated with large-size project, vulnerability to slowdown in the end-user industries, raw material price risk and competition from similar and substitute products. The rating, however, derives strength from experience of the promoter and its management in the insulation industry The ability of LIPL to start its operations by implementing project within the estimated time and cost and achieve the envisaged revenue and profitability amidst increasing competition are the key rating sensitivities. Incorporated in 2007, Lion Insulation Private Limited (LIPL) is setting up a manufacturing unit for manufacturing thermal and acoustical insulation products (like Rockwool mattress, Rockwool slabs and pipe section) at Guna, Madhya Pradesh, with an estimated capacity of 9,000 MTPA. The products will be used in refineries, chemicals plants and malls. The total costs of the project is estimated to be INR13.46 crore funded through term loan of INR8 crore and the remaining through equity at a debt/ equity of 1.46x. The project was expected to commence commercial production from December 2012, however, has been delayed by four months (will commence operations from April 2013). ROYAL FASTENERS: CARE Reaffirms 'BB+' Rating on INR5.28cr Loans --------------------------------------------------------------- CARE reaffirms ratings assigned to the bank facilities of Royal Fasteners (Ne) Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.28 CARE BB+ Reaffirmed Short-term Bank Facilities 2.00 CARE A4+ Reaffirmed Rating Rationale The ratings continue to be constrained by the company's small scale of operations with significant dependence on a single customer and cyclicality of the industry. The ratings also factor in the experience of the promoters in similar line of business, satisfactory profitability and gearing ratios and successful completion of the ongoing project. The ability of the company to improve its revenue, profitability and capital structure, regular issuance of orders by Indian Railways and timely receipt of contract proceed will remain the key rating sensitivities. Royal Fasteners (NE) Pvt Ltd is a private limited company, incorporated on November 19, 2003. The company, which commenced commercial production in 2005, is engaged in the manufacturing and supply of engineering products and railway track fittings. Its major client is Indian Railways. The company is enlisted as RDSO- approved (Research Design & Standards Organisation) vendor for the manufacturing and supplying of Grooved Rubber Sole Plates (GRSP, 6mm & 10mm), Glass Filled Nylon--66 insulating Liners and Elastic Rail Clips to the Ministry of Railway, Government of India. The company has been promoted by Mr. Kamlesh Kumar Jain and Mr Ajay Kumar Saraf. GRSP and GFN Liners are two essential components of the rail track assembly that is used for insulating rail with concrete sleeper. RFPL, currently, has an installed capacity to manufacture 7,200,000 nos., 4,800,000 nos. and 3,960,000 nos. of GRSP, GFN Liners and Elastic rail clips, respectively. SANDIP NANAVATI: CARE Assigns 'BB' Rating to INR1.09cr LT Loans --------------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Sandip Nanavati. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 1.09 CARE BB Assigned Short-term Bank Facilities 12.00 CARE A4 Assigned The ratings assigned by CARE are based on the capital deployed by the proprietor and the financial strength of the firm at present. The ratings may undergo a change in case of the withdrawal of capital or the unsecured loans brought in by the proprietor in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of M/s. Sandip Nanavati are constrained by geographical concentration of operations, inherent risk of the tender-driven business and constitution as a proprietorship firm. The ratings, however, are underpinned by the experience of the proprietor, improving operating performance, satisfactory financial risk profile and government thrust on infrastructure growth. The ability of the firm to diversify its operations geographically and enhance its scale of operations without impacting the profitability and capital structure are the key rating sensitivities. Vadodara-based M/s. Sandip Nanavati, established in the year 1988 as a proprietorship firm, is engaged in the business of executing civil engineering projects largely pertaining to industrial and infrastructure contracts, substation building, sheds, office buildings and interior roads. The proprietor, Mr Sandip Nanavati manages the day-to-day affairs of the firm. MSN is a regional player in the construction industry and has executed projects for varied clientele, including Juemont, IOCL, Schott Kaisha, Siemens, Samsung, Alstom, Dodsal, Hyundai, Dupont, L&T and many more. The firm has its own fleet of machineries and equipments for execution of construction work. MSN has been enlisted with Gujarat state P.W.D., Surat Municipal Corporation (Class AA), and various other private players and MNCs which helps the firm to source orders conveniently. As on January 31, 2013, MSN had an order book worth INR74.58 crore to be executed until FY15. S. K. TREXIM: CARE Assigns 'BB-' Rating to INR3.5cr LT Loans ------------------------------------------------------------ CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of S. K. Trexim Pvt. Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 3.5 CARE BB- Assigned Short-term Bank Facilities 6.0 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of S. K. Trexim Pvt. Ltd. are primarily constrained by its small scale of operations coupled with short track record and thin profitability margins, its presence in a competitive and fragmented timber trading industry, customer concentration risk, susceptibility of margins to the volatility in foreign exchange rates and the risks pertaining to any adverse change in the regulatory environment of the timber exporting countries. The ratings, however, favorably take into account the experience of the promoters in the timber trading business and positive demand prospects for timber in the domestic markets. The ability of the company to increase its scale of operations along with improvement in the profitability parameters are the key rating sensitivities. S. K. Trexim Pvt. Ltd., incorporated in September 2009, is a small-sized company promoted by Mr. Vivek Kumar Singh and Mrs. Namrata Singh belonging to Kolkata, having around a decade experience in the timber trading business. The company is engaged in the trading of imported timber logs which is subsequently sawn and sized at different saw mills into various commercial sizes as per the requirement of its customers. The company earns its entire revenue from the domestic market wherein in supplies the timber to traders and sawmills. It procures the imported timbers from domestic suppliers as well as imports it from countries like Malaysia, Indonesia, Myanmar and Ghana. Its warehousing facility is located at KPT Area, Khidderpore, Kolkata of West Bengal (covering 14,000 sq. ft.), near to the Kolkata port for facilitating easy import of timber. SR BUILDCON: CARE Rates INR38.38cr LT Loan at 'CARE BB-' -------------------------------------------------------- CARE assigns 'CARE BB-' to the bank facilities of SR Buildcon Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 38.38 CARE BB- Assigned Rating Rationale The rating assigned to the bank facilities of SR Buildcon Pvt Ltd is primarily constrained by the weak financial risk profile marked by leveraged capital structure, low profitability margin, and weak debt coverage indicators. The rating is further constrained by SRBL's susceptibility to fluctuation in the prices of scrap and risk of overestimation of realizable proceeds and uncertainty of future cash flows. The rating, however, finds support from SRBL's experienced and resourceful promoters and increasing scale of operations over the years. Going forward, the timely and estimated realization of scrap and improvement in the financial risk profile shall be the key rating sensitivity. S.R Buildcon Pvt Ltd, incorporated in March 2005 by Mr Sushil Kumar Singla and Mr. Ravinder Kumar Goyal. SRBL is engaged in the business of buying sick industrial units offered through Debt Recovery Tribunal (DRT), financial institutions (FIs) and courts. The company subsequently dismantles the unit and sells the same in piecemeal manner to respective buyers. SRBL has experienced staff (civil engineers, valuers etc), who specialize in the assessment of value of the plant & machinery, stock and building. URVASHI PULP: CARE Assigns 'B' Ratings to INR7.01cr Loans --------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Urvashi Pulp & Paper Mills Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.61 CARE B Assigned Long-term/Short-term Bank 0.40 CARE B/CARE A4 Facilities Assigned Short-term Bank Facilities 2.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Urvashi Pulp & Paper Mill Private Limited are primarily constrained by its weak financial risk profile marked by the low profitability, highly leveraged capital structure, weak debt coverage indicators and liquidity indicators. The ratings are further constrained on the account of UPPMPL's presence in a highly fragmented and competitive paper industry. The ratings, however, derives strength from the established manufacturing facilities, experienced promoters and stable demand indicators from the end-user industries, mainly packaging. The company's ability to increase the scale of operations along with improvement in the profitability amidst the strong competition and improvement in the capital structure are the key rating sensitivities. Urvashi Pulp & Paper Mill Private Limited was promoted by Mr Mahendra Shah in 1976 and had commenced operations in 1983. The company is engaged in the manufacturing of kraft paper and paper boards. UPPMPL's plant is located at Ankleshwar, Gujarat, with an installed capacity of 24,000 Metric Tonnes Per Annum (MTPA) as on March 31, 2012. The company is mainly catering to industries located in Gujarat and Maharashtra. During FY12 (refers to the period April 1 to March 31), as per the audited results, UPPMPL reported a total operating income of INR44.69 crore (FY11: INR45.50 crore) and a Profit After Tax of INR0.17crore (FY11: INR0.38 crore). ================= I N D O N E S I A ================= STAR ENERGY: Fitch Assigns 'B+' Rating to Sr. Secured Notes ----------------------------------------------------------- Fitch Ratings has assigned Indonesia-based Star Energy Geothermal (Wayang Windu) Limited's proposed senior secured notes an expected rating of 'B+(EXP)' with a Recovery Rating of 'RR4'. Key Rating Drivers The notes are rated at the same level as SEG's Issuer Default Rating (IDR) of 'B+', as they will constitute direct, unconditional and senior secured obligations of the company. The final rating is contingent upon the receipt of final documents conforming to information already received. Proceeds from the proposed notes will largely be used to refinance SEG's outstanding senior secured USD notes of USD337.5m, of which USD12.5m, USD25m and USD300m are due in 2013, 2014 and 2015 respectively. As part of the refinancing process SEG will have the option of repaying USD85m of its USD102m subordinated shareholder loan immediately and a further USD1m per annum thereafter. Fitch expects the repayment of the shareholders loan to be made out of SEG's existing cash at hand (USD139m at end-December 2012) and as such does not expect SEG's total indebtedness to change materially. While the refinancing exercise will improve SEG's liquidity in the medium-term, leverage - on a net of cash basis - will increase due to the repayment of USD85m of the subordinated shareholder loan. This is because Fitch has not treated the loan as debt due to its subordinated nature and it being interest-free. However, Fitch does not expect SEG's funds from operations (FFO)-adjusted net leverage to exceed the negative guidance of 5.0x on a sustained basis. This is based on Fitch's expectation that SEG will generate positive operational cash flows, incur limited maintenance capex and not pay out any substantial dividends in the medium term. SEG's ratings reflect geological risks inherent to operating in an active seismic area as well as the high visibility of its earnings. The rating remains constrained by geological risks, particularly given its single site operation, and by potential heavy capex relative to its balance sheet. On the other hand, the company has demonstrated reliable operating performance, underpinned by its long-term 'take or pay' energy sales contract with the state power utility, PT Perusahaan Listrik Negara (BBB-/Stable). Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include: - FFO-adjusted net leverage exceeding 5.0x (2.4x at end-9M12) and FFO interest coverage falling below 2.0x (1.9x at end-9M12), both on a sustained basis. Positive: A positive rating action is unlikely in the next 12 to 18 months. However, Fitch may consider a positive rating action once greater clarity is available on SEG's future capex, on its capital structure and on whether the company can reduce its financial leverage to below 3.5x on a sustained basis. ========= J A P A N ========= NCI TRUST: S&P Lowers Rating on Class D Certificates to 'D' ----------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered to 'D (sf)' from 'CCC (sf)' its rating on the class D trust certificates issued in July 2006 under the NCI Trust Certificate-2 transaction. The class A, B, and C trust certificates repaid in full on the interest and principal payment dates in September 2012, December 2012, and March 2013, respectively. The sale of the property backing the transaction's remaining loan has been completed. Nevertheless, S&P downgraded class D because the outstanding balance of the loan exceeded the amount collected through the sale of the related collateral property and, as a result, this class incurred a principal loss. NCI Trust Certificate-2 is a multiborrower commercial mortgage- backed securities (CMBS) transaction that Nomura Securities Co. Ltd. arranged. Twenty-two real estate properties ultimately secured the seven nonrecourse loans and one specified bond that initially secured the trust certificates issued under this transaction. 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 RATING LOWERED NCI Trust Certificate-2 JPY31.1465 billion trust certificates due Sept. 2013* Class To From Initial issue amount D D (sf) CCC (sf) JPY1.4535 bil. *Class R (initial issue amount: JPY0.393 bil.) is not rated. SHARP CORP: Mulls Selling New Shares to Raise JPY100 Billion ------------------------------------------------------------ Kyodo News reports that struggling Japanese electronics maker Sharp Corp. is considering raising around JPY100 billion through a public stock offering to help it repay JPY200 billion in debt due in September, sources said Friday. According to the report, sources said the company's main creditor banks, however, questioned the feasibility of the plan, pushing Sharp to consider other ways to raise capital, such as reducing the amount of new share sales as well as issuing preferential shares or subordinate bonds. Kyodo says ratings agencies have cut Sharp to levels considered speculative, which has made it difficult for Sharp to raise money through issuing new bonds. The news agency notes that the company has formed capital alliances with U.S. telecommunication giant Qualcomm Inc. and Samsung Electronics Co. of South Korea, but receiving around JPY10 billion in investment from each would not be enough. As Sharp is facing difficulty obtaining a nod about the plan from its main creditors, Mizuho Corporate Bank and Bank of Tokyo- Mitsubishi UFJ, it may have to postpone to April announcing its medium-term management plan, which is slated for March, the sources, as cited by Kyodo, added. About Sharp Corp. Based in Osaka, Japan, Sharp Corporation (TYO:6753) -- http://sharp-world.com/-- manufactures and sells electronic telecommunication devices, electronic machines and components. Standard & Poor's Ratings Services said earlier this month that it had lowered to 'B' from 'B+' its senior unsecured debt rating on Sharp Corp. At the same time, S&P kept the senior unsecured debt rating and 'B+' long-term and 'B' short-term corporate credit ratings on Sharp and its overseas subsidiaries-- Sharp Electronics Corp. and Sharp International Finance (U.K.) PLC -- on CreditWatch with negative implications. S&P lowered the senior unsecured debt rating by one notch from the issuer rating because it believes Sharp's priority liabilities have increased and will likely remain high against the company's assets in the next six to 12 months. Fitch Ratings also said continued support from main creditor banks will be essential for a sustained recovery of Sharp Corporation's ('B-'/Rating Watch Negative) operating performance. The Japanese electronics manufacturer's liquidity position remains vulnerable despite a turnaround to post marginally positive EBIT margins in the third quarter of financial year ending March 2013 (Q3FY13). ==================== N E W Z E A L A N D ==================== AORANGI SECURITIES: HMF Managers to Make Further 15c Payment ------------------------------------------------------------ BusinessDesk reports that statutory managers of the frozen Hubbard Management Funds will make a further payment to investors of 15 cents in the dollar as they work toward full repayment. BusinessDesk says the latest payment, due on March 15, means 25 cents in the dollar has been repaid to investors from the Capital Return Pool in addition to an initial distribution last year of NZ$9 million. "We have now realised all the liquid assets of HMF and solid progress has been made towards the realisation of the remaining assets, however due to the nature of these, the realisation process will take some time," the report quotes statutory managers Graeme McGlinn, Richard Simpson and Trevor Thornton of Grant Thornton as saying. "Investors will eventually have all of their original capital returned to them." The fund's portfolio was valued at $40.75 million as at December 31 and the managers decided to reduce and realign larger holdings in that month, BusinessDesk discloses. Last year the statutory managers decided against seeking repayments from investors who were overpaid, and the court-ordered clawback of overpayments in the interim distribution has been removed, the report notes. About Aorangi Securities Aorangi Securities Ltd was incorporated in 1974 and is solely controlled by the Hubbards. On June 20, 2010, Aorangi Securities and seven charitable trusts were placed into statutory management, and Allan and Jean Hubbard were also placed into statutory management as "associated persons" of those entities. The seven charitable trusts included in the statutory management are Te Tua, Otipua, Oxford, Regent, Morgan, Benmore and Wai-iti. Trevor Thornton and Richard Simpson of Grant Thornton were appointed as statutory managers. The Temple Bar Family Trust and Barns Charitable Trust were also put into statutory management in September 2010 on recommendation from the Securities Commission. Hubbard Churcher Trust Management and Forresters Nominees Company were also added to the list of businesses under management by Trevor Thorton, Richard Simpson and Graeme McGlinn, of Grant Thornton, on September 20, 2010. On June 20, 2011, the Serious Fraud Office laid 50 charges under Crimes Act against Allan Hubbard in relation to its investigation into the affairs of Aorangi Securities Ltd; Hubbard Management Funds; and ASL directors Allan and Margaret (Jean) Hubbard. The SFO dropped the fraud charges against Allan Hubbard following Mr. Hubbard's death on Sept. 2, 2011. Mrs. Hubbard was also removed from statutory management, effective on Nov. 13, 2011. Aorangi's statutory managers said 400 investors in the mortgage lender owed NZ$96 million were likely to face a substantial shortfall as many loans were in default. So far, statutory managers have paid just 12 cents in the dollar, The Timaru Herald reported. HANOVER FINANCE: Ex-Director Wants Trustees to Help Pay Damages --------------------------------------------------------------- The New Zealand Herald reports that former Hanover Finance director Mark Hotchin wants two trustee companies to contribute to any damages he may need to pay if the Financial Markets Authority wins its civil action against him. The Herald notes that Mr. Hotchin, along with five other former Hanover directors or promoters, are being sued by the FMA for allegedly misleading or untrue statements in finance company prospectuses. The FMA is seeking compensation for investors who put $35 million into Hanover Finance, Hanover Capital and United Finance between December 2007 and July 22, 2008, the report relays. According to the report, Mr. Hotchin is defending this claim and in turn, has filed action against the trustee of Hanover Finance, New Zealand Guardian Trust Company, and Perpetual Trust, the trustee of Hanover Capital of United Finance. The Herald relates that Mr. Hotchin argues the trustees held a duty of care to investors and that they should contribute to any damages payable if the FMA's case succeeds. But the trustees are fighting back. Appearing Monday in the High Court at Auckland, the report says Guardian applied to have the claims against it struck out. While the trustee did have a duties to investors, Guardian's lawyer Ralph Simpson said these were not responsibilities that makes it liable in this case, the report relays. Mr. Simpson said Guardian's duties did not extend to ensuring the truth of Hanover's prospectus, other than confirming that the terms of the offer to investors complied with the trust deed, the report adds. About Hanover Finance Hanover Finance Limited -- http://www.hanover.co.nz/-- was New Zealand's third-largest privately-owned finance company with total assets of NZ$796 million at December 31, 2007. The company was established in 1984 to provide finance to the rural sector and began lending to property developers and investors in 1995. The loan portfolio has been gradually downsized since 2006 as a result of a more cautious approach to lending in the face of retail funding constraints. Hanover Finance's investors in December 2008 voted in favor of the company's Debt Restructure Proposals, including a plan to fully repay NZ$552.6 million principal it owes over five years. However, Hanover Finance said in November 2009 it is no longer likely to fully repay investors under a debt restructuring plan due to a deterioration in the commercial property development market, a TCR-AP report on Nov. 12, 2009, said. In December 2009, investors agreed to swap their Hanover interests for shares in Allied Farmers Ltd. The Serious Fraud Office commenced an investigation into the affairs of Hanover Finance Ltd in September 2010 after considering complaints received from the Securities Commission, Allied Farmers and others. The Financial Markets Authority, on March 30, 2012, filed civil proceedings against directors and promoters of Hanover Finance Ltd, Hanover Capital Ltd, and United Finance Ltd. Proceedings under the Securities Act have been filed against Mark Hotchin, Eric Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and Dennis Broit. They relate to statements made in the December 2007 prospectuses, subsequent advertising, and the March 2008 prospectus extension certificate. =============== X X X X X X X X =============== * BOND PRICING: For the Week March 4 to March 8, 2013 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ADVANCED ENERGY 9.50 01/04/2015 AUD 0.65 COM BK AUSTRALIA 1.50 04/19/22 AUD 73.87 MIDWEST VANADIUM 11.50 02/15/18 USD 59.00 MIDWEST VANADIUM 11.50 02/15/18 USD 59.00 NEW S WALES TREA 0.50 09/14/22 AUD 69.47 NEW S WALES TREA 0.50 10/07/22 AUD 69.26 NEW S WALES TREA 0.50 10/28/22 AUD 69.07 NEW S WALES TREA 0.50 11/18/22 AUD 68.88 NEW S WALES TREA 0.50 12/16/22 AUD 69.58 NEW S WALES TREA 0.50 02/02/23 AUD 69.13 NEW S WALES TREA 0.50 03/30/23 AUD 68.65 TREAS CORP VICT 0.50 08/25/22 AUD 71.84 TREAS CORP VICT 0.50 03/03/23 AUD 70.13 TREAS CORP VICT 0.50 11/12/30 AUD 49.20 CHINA ----- CHINA GOVT BOND 4.86 08/10/14 CNY 105.91 CHINA GOVT BOND 1.64 12/15/33 CNY 68.06 INDIA ----- 3I INFOTECH LTD 5.00 04/26/17 USD 35.00 CORE PROJECTS 7.00 05/07/15 USD 40.36 JCT LTD 2.50 04/08/11 USD 20.00 MASCON GLOBAL LT 2.00 12/28/12 USD 10.00 PRAKASH IND LTD 5.63 10/17/14 USD 69.38 PRAKASH IND LTD 5.25 04/30/15 USD 69.01 PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00 REI AGRO 5.50 11/13/14 USD 71.04 REI AGRO 5.50 11/13/14 USD 71.04 SHIV-VANI OIL 5.00 08/17/15 USD 46.34 SUZLON ENERGY LT 5.00 04/13/16 USD 50.44 JAPAN ----- EBARA CORP 1.30 09/30/13 JPY 99.97 ELPIDA MEMORY 2.03 03/22/12 JPY 9.50 ELPIDA MEMORY 2.10 11/29/12 JPY 9.50 ELPIDA MEMORY 2.29 12/07/12 JPY 9.50 JPN EXP HLD/DEBT 0.50 09/17/38 JPY 66.70 JPN EXP HLD/DEBT 0.50 03/18/39 JPY 67.05 KADOKAWA HLDGS 1.00 12/18/14 JPY 108.88 SHARP CORP 1.14 09/16/16 JPY 67.74 SHARP CORP 2.07 03/19/19 JPY 62.08 SHARP CORP 1.60 09/13/19 JPY 61.33 TOKYO ELEC POWER 1.96 07/29/30 JPY 73.75 TOKYO ELEC POWER 2.37 05/28/40 JPY 70.37 MALAYSIA -------- DUTALAND BHD 7.00 04/11/13 MYR 0.91 PHILIPPINES ----------- BAYAN TELECOMMUN 13.50 07/15/49 USD 22.63 BAYAN TELECOMMUN 13.50 07/15/49 USD 22.63 SINGAPORE --------- BAKRIE TELECOM 11.50 05/07/15 USD 58.25 BAKRIE TELECOM 11.50 05/07/15 USD 53.26 BLD INVESTMENT 8.63 03/23/15 USD 69.78 BLUE OCEAN 11.00 06/28/12 USD 36.75 BLUE OCEAN 11.00 06/28/12 USD 36.75 CAPITAMALLS ASIA 2.15 01/21/14 SGD 99.85 CAPITAMALLS ASIA 3.80 01/12/22 SGD 102.00 DAVOMAS INTL FIN 11.00 12/08/14 USD 21.15 DAVOMAS INTL FIN 11.00 12/08/14 USD 28.88 F&N TREASURY PTE 2.48 03/28/16 SGD 100.49 SOUTH KOREA ----------- CHEJU REGION DEV 3.00 12/29/34 KRW 68.19 EXP-IMP BK KOREA 0.50 08/10/16 BRL 74.95 EXP-IMP BK KOREA 0.50 09/28/16 BRL 74.15 EXP-IMP BK KOREA 0.50 10/27/16 BRL 73.63 EXP-IMP BK KOREA 0.50 11/28/16 BRL 73.06 EXP-IMP BK KOREA 0.50 12/22/16 BRL 72.78 EXP-IMP BK KOREA 0.50 10/23/17 TRY 71.44 EXP-IMP BK KOREA 0.50 11/21/17 BRL 67.10 EXP-IMP BK KOREA 0.50 12/22/17 BRL 66.67 EXP-IMP BK KOREA 0.50 12/22/17 TRY 70.37 SRI LANKA --------- SRI LANKA GOVT 6.20 08/01/20 LKR 73.38 SRI LANKA GOVT 7.00 10/01/23 LKR 67.76 SRI LANKA GOVT 5.35 03/01/26 LKR 56.96 SRI LANKA GOVT 8.00 01/01/32 LKR 69.20 SRI LANKA GOVT 9.00 01/10/32 LKR 74.37 THAILAND -------- BANGKOK LAND 4.50 10/13/03 USD 5.50 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., 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 ***