/raid1/www/Hosts/bankrupt/TCRAP_Public/130319.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 19, 2013, Vol. 16, No. 55
Headlines
A U S T R A L I A
PAYLESS SHOES: Acquired by Retail Giant, Averts Administration
ST BARBARA: Moody's Rates Proposed US$250MM Senior Notes '(P)B2'
ST BARBARA: S&P Assigns 'B' CCR; Outlook Stable
STORM FINANCIAL: Macquarie Group Inks Deal With Investors
* Network Tariff Cuts No Impact on Gas Distributors in Victoria
C H I N A
GEMDALE CORP: S&P Rates Proposed Senior Unsecured Notes 'BB-'
SUNTECH POWER: Misses Payment on 3% Convertible Senior Notes
SUNTECH POWER: Chinese Government Rules Out Rescue
SUNTECH POWER: Some Bondholders Mull Suit to Force Payment
ZHONG AN: Needs Liquidity Improvements to Avoid Ratings Downgrade
H O N G K O N G
ARTISON MANAGEMENT: Commences Wind-Up Proceedings
BABY FISH: Creditors' Meeting Set for March 20
BEIJING MUSIC: Creditors' Proofs of Debt Due March 29
BEST QUALITY: Creditors' Meeting Set for March 20
CHEERFUL FOOD: Creditors' Meeting Set for March 20
FAT FAT: Creditors' Meeting Set for March 20
FMP INVESTMENT: Creditors' Proofs of Debt Due March 22
GERBER HOLDINGS: Creditors' Proofs of Debt Due March 22
KWAI KEE: Creditors' Meeting Set for March 20
LP DISPLAYS: Annual Meetings Set for March 22
M.D. CREATION: Creditors' Proofs of Debt Due March 21
PIPER JAFFRAY: Creditors' Proofs of Debt Due March 29
SHINE POINT: Creditors' Proofs of Debt Due March 22
VIGERS HK: Annual Meetings Set for March 19
YU KEE: Creditors' Meeting Set for March 20
YU KEE DEVELOPMENT: Creditors' Meeting Set for March 20
I N D I A
AG CONVEYING: CRISIL Assigns 'D' Ratings to INR70MM Loans
AMBOJINI PROPERTY: CRISIL Rates INR400MM Bank Loan at 'B+'
BANK OF INDIA: Moody's Affirms 'D' BFSR; Outlook is Negative
CONCORD HOSPITALITY: CRISIL Puts 'D' Ratings on INR780MM Loans
FLEXIPOL FOAMS: CRISIL Raises Ratings on INR65.6MM Loans to 'BB-'
GARIB NAWAZ: CRISIL Assigns 'D' Ratings to INR110MM Loans
JAI AMBEY: CRISIL Assigns 'B+' Rating to INR80MM Cash Credit
KONARK POLYTUBES: CRISIL Assigns 'B' Ratings to INR76.5MM Loans
KRISHNA GODAVARI: CRISIL Cuts Rating on INR1.02BB Loan to 'B-'
PG ASSOCIATES: CRISIL Upgrades Rating on INR50MM Loan to 'B+'
VIJAYAKRISHNA HATCHERIES: CRISIL Rates INR28.5MM Loan at 'B-'
I N D O N E S I A
ALAM SUTERA: Fitch Assigns 'B+' LT Issuer Default Rating
ALAM SUTERA: Strong 2012 Results Cue Moody's to Upgrade CFR to B1
ALAM SUTERA: S&P Affirms 'B' CCR; Outlook Stable
J A P A N
SHARP CORP: Says Second Qualcomm Investment Delayed
S O U T H K O R E A
LOTTE TOUR: Files for Court Receivership
N E W Z E A L A N D
HAMPTON RD DAIRY FARM: Battles With Receivership
MAINZEAL PROPERTY: Unsecured Claims Reach NZ$93.5 Million
P H I L I P P I N E S
LA CONSOLACION RURAL BANK: Placed Under PDIC Receivership
S I N G A P O R E
A-TECH MARINE: Court to Hear Wind-Up Petition April 5
ASCENTIAL SOFTWARE: Creditors' Proofs of Debt Due April 15
ASSA ABLOY: Creditors' Proofs of Debt Due April 15
ENSAFE OFFSHORE: Court Enters Wind-Up Order
HQO DESIGN: Creditors Get 6.87604% Recovery on Claims
X X X X X X X X
* BOND PRICING: For the Week March 11 to March 15, 2013
- - - - -
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A U S T R A L I A
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PAYLESS SHOES: Acquired by Retail Giant, Averts Administration
--------------------------------------------------------------
Cara Waters at SmartCompany reports that Payless Shoes has been
saved from administration after being purchased by global shoe
retailer Payless ShoeSource for an undisclosed price.
According to the report, the administrators have sold the business
and its assets as a going concern to Payless ShoeSource after
restructuring Payless Shoes into a 150-store network across NSW,
Victoria, Queensland, South Australia, Western Australia and the
ACT.
Payless ShoeSource operates around 4,400 shoe stores in more than
30 countries throughout the world, including the United States,
Canada and Latin America.
SmartCompany relates that Payless Shoes was not previously
affiliated with Payless ShoeSource; however, the business was
modelled after Payless ShoeSource stores in the United States
including a similar store format, target customer and focus on
value.
Payless ShoeSource has been in control of and running the business
under the Payless Shoes brand from last week, the report notes.
It is offering positions on the same terms and conditions to
Payless Shoes' 850 employees across the head office and store
operations, the report relays.
According to SmartCompany, administrator Vaughan Strawbridge said
the sale demonstrated that, with effective restructuring, retail
businesses could be turned around and jobs could be retained.
Payless Shoes was the largest independent shoe retailer in
Australia, operating 44 stores across Victoria.
Payless Shoes was placed in voluntary administration on Sept. 21,
2012. Company directors called in Deloitte partners David Lombe
and Vaughan Strawbridge to handle the administration.
ST BARBARA: Moody's Rates Proposed US$250MM Senior Notes '(P)B2'
----------------------------------------------------------------
Moody's Investors Service assigned a first time provisional (P)B2
corporate family rating to St Barbara Limited (St Barbara). At the
same time, Moody's has assigned a provisional (P)B2 senior secured
rating to the proposed US$250 million senior secured notes to be
issued by St Barbara Limited.
This is the first time that Moody's has assigned ratings to St
Barbara. The outlook on the ratings is stable.
The assignment of a definitive CFR and Senior Secured Notes rating
is subject to review of the final documentation, and to successful
close of the transaction. The proceeds of the issuance will be
used for general corporate purposes, which Moody's expects will
include funding the company's growth initiatives.
Ratings Rationale:
"St Barbara's (P)B2 corporate family rating reflects the company's
modest size, commodity and production concentration and exposure
to volatile gold prices" says Matthew Moore, a Moody's Assistant
Vice President -- Analyst. "The rating also reflects the potential
execution challenges around achieving targeted production and cash
cost levels at its recently acquired Pacific operations" Moore
adds.
"The rating is balanced by the established, relatively high margin
nature of the Australian operations, particularly the cornerstone
Gwalia asset" says Moore. The company has also benefited the
current strength in gold prices, which we anticipate will continue
to support earnings, cash flow generation and credit metrics over
the next 12 to 18 months.
The provisional rating for the senior secured notes is the same as
the corporate family rating, reflecting the notes' position as the
material piece of debt in the capital structure. The notes will be
issued by St. Barbara Limited and will not be guaranteed by any of
the company's subsidiaries, however, all of the subsidiaries will
be restricted subsidiaries.
"The stable outlook reflects our view that the price environment
for gold will remain favorable in the intermediate term and that
Australian assets will continue to support the Pacific assets
until they reach nameplate capacity and become cost competitive"
Moore adds.
The moderate-to-low cost position of the Gwalia mine and its
potential to continue to generate solid cash flows, supports the
rating. We expect that, pro forma for the acquisition of Allied
Gold assets, Gwalia will contribute about 50% of the company's
total production in FY13 and over 60% EBITDA. While this asset
provides support for the rating it also highlights the limited
diversity of operations and therefore any operational difficulties
at the Gwalia mine could have a significant impact on the
company's financial profile and credit metrics.
The company is currently working to drive production increases at
its recently acquired Pacific mining operations, Simberi and Gold
Ridge, which will be critical to reducing unit costs at these high
cost assets. As production increases from these assets St
Barbara's production profile will have an increasing reliance on
the less traditional and higher risk mining jurisdictions of Papua
New Guinea and the Solomon Islands.
"St Barbara's credit metrics pro forma for the notes issuance are
strong for the rating, with Debt-to EBITDA of 1.7x and we expect
credit metrics under more conservative pricing scenarios to remain
moderate for the rating" says Moore. For example, we expect FY13
Debt-to-EBITDA to be around 3.0-3.5x under a scenario which
assumes a gold price of around $1,400/oz for the remainder of the
year and some delays to production and cost improvements
associated with the Pacific Assets.
An upgrade or positive outlook could be considered should the
company successfully execute the integration of the Pacific
assets, reach name plate capacity within the specified time frames
and generate positive free cash flow while sustaining Debt to
EBITDA levels below 4.0x.
The rating could be downgraded if SBL experiences significant
operational difficulties with the Pacific assets such that the
company is unable to reach name plate capacity and reduced per
unit costs within the specified ramp up period or if there is a
material deterioration in its liquidity position. A downgrade
would also be considered should adjusted Debt/ EBITDA be sustained
above 5.5x.
The principal methodology used in this rating was the Global
Mining Industry Methodology published in May 2009.
St. Barbara Limited (SBL) is an Australian ASX listed gold
producer and explorer. SBL is headquartered in Melbourne,
Australia and the company's flagship operations are located in
Leonora, Western Australia, 240km north of Kalgoorlie. In FY12,
SBL produced about 339koz of gold and generated about
$541 million in revenues.
ST BARBARA: S&P Assigns 'B' CCR; Outlook Stable
-----------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B' corporate credit rating to Australia-based mining company
St Barbara Ltd. The rating outlook is stable. At the same time,
S&P assigned its 'B' issue-level rating and recovery rating of '3'
to the company's proposed US$250 million senior secured notes.
The recovery rating of '3' indicates S&P's expectation of
meaningful recovery (50%-70%) in the event of a default.
"The corporate credit rating on St Barbara reflects our view of
the company's "vulnerable" business risk profile, which is
characterized by its relatively small size, exposure to volatile
gold prices, and reliance on a few key assets," Standard & Poor's
credit analyst Marie Shmaruk said. "Other factors influencing our
view of the business risk are St Barbara's sizable growth plans
and high cash costs, as well as the risks associated with
integrating its recent acquisition of Allied Gold. In addition,
S&P considers that St Barbara faces significant operating and
country risks in its mines in the Solomon Islands and Papua New
Guinea."
Although on a pro-forma basis the company will have relatively low
debt levels, S&P considers its financial risk profile as
"aggressive". This assessment incorporates S&P's view that the
company has recently been acquisitive; its earnings and cash flows
are subject to volatile gold prices; and it will likely spend the
bulk of its cash flow to reduce costs and fund expansion. S&P
expects the company to incur significant capital expenditure
(predominantly sustaining) over the next few years, much of it
will be used to further develop its mines and improve its cost
position at the acquired assets. In the longer term, the company
may make further acquisitions to broaden the scope of its
operations and expand its reserve base.
Ms. Shmaruk added: "The rating and stable outlook assume that the
company will successfully complete the proposed bond transaction.
In addition, under our gold price assumptions of US$1,500 and
US$1,400 per ounce for the next two years and improving costs at
the acquired operations, we expect St Barbara's liquidity would be
adequate to fund the company's capital spending and operational
improvements at its mines in Papua New Guinea and the Solomon
Islands."
The rating could go lower if liquidity is pressured by falling
gold prices that are sustained below S&P's current pricing
assumptions or if there is an operating disruption that causes
volumes to drop or costs to rise outside of S&P's current
expectations. S&P could also lower the rating if the company
makes a relatively large debt-financed acquisition or if it adds
leverage in order to return cash to shareholders.
S&P could raise the rating if gold prices approximate its pricing
assumptions; the company successfully integrates the Allied assets
and improves the performance at those operations; and the country
risk improves. S&P would also consider an upgrade if the company
expanded and diversified its operations into more stable and
higher-rated jurisdictions without adding significant leverage.
St. Barbara Limited (SBL) is an Australian ASX listed gold
producer and explorer. SBL is headquartered in Melbourne,
Australia and the company's flagship operations are located in
Leonora, Western Australia, 240km north of Kalgoorlie. In FY12,
SBL produced about 339koz of gold and generated about
$541 million in revenues.
STORM FINANCIAL: Macquarie Group Inks Deal With Investors
----------------------------------------------------------
The Sydney Morning Herald reports that Macquarie Group has struck
a deal with close to 1,000 investors who lost their savings in the
collapse of Storm Financial, reaching an $82.5 million settlement.
SMH says the investment bank has faced a class action over its
role selling margin loans to the group of Storm investors, who
said they lost up to $290 million in the financial adviser's
collapse.
According to the report, the two parties on March 15 reached a
commercial deal that effectively ends the financial cost of the
Storm collapse for Macquarie.
SMH relates that Macquarie remains in a legal dispute with one
investor and is facing a separate action from the corporate
watchdog that is expected to entail no financial costs. Macquarie
said the settlement would not affect its financial results, the
report says.
A lawyer representing the investors, Stewart Levitt, said the case
was significant because it was the first settlement with a Storm
margin lender to involve legal proceedings, SMH relays.
The report notes that Commonwealth Bank is also facing legal
action over its role in Storm, which collapsed in 2009 after
advising many clients to borrow against their homes and invest in
the sharemarket.
SMH recalls that CBA last year made a deal with the Australian
Securities and Investments Commission under which it agreed to
provide $270 million to Storm customers.
But Mr. Levitt, who is also leading a class action against
Commonwealth Bank, argued that the Macquarie settlement would put
pressure on CBA over its role in the Storm collapse, the report
says.
"This is the only settlement that's resulted from legal
proceedings. The other offers that came from CBA came from deals
done behind closed doors between ASIC and the CBA," SMH quotes Mr.
Levitt as saying.
SMH adds that Commonwealth Bank this month said it would defend
the class action, which it said was misconceived because the bank
was not responsible for Storm's advice to its clients.
Mr. Levitt is also planning class actions against Westpac and Bank
of Queensland over their roles lending to Storm investors, SMH
reports.
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operated in the Australian wealth management industry. The
company managed over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds were invested through different investment products and
structures, including superannuation, non-superannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
In 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AUD20 million.
Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no
longer absorb."
The Commonwealth Bank of Australia, Storm's largest creditor,
lodged a AUD27.09 million debt claim at a first meeting of the
company's creditors on Jan. 20, 2010. The group's remaining
creditors are owed AUD51 million, plus a provision for dividends
of AUD10 million.
In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up. Federal court
Justice John Logan appointed Ivor Worrell and Raj Khatri of
Worrells Solvency and Forensic Accountants as liquidators for the
Company.
* Network Tariff Cuts No Impact on Gas Distributors in Victoria
---------------------------------------------------------------
Moody's Investors Service reports that the Australian Energy
Regulator's final decision to cut network tariffs does not
immediately impact the ratings of the three gas distribution
companies in Victoria. The final revenue decision affects Energy
Partnership (Gas) Pty Ltd (EPG, Baa3 stable), Envestra Ltd
(Envestra, Baa2 stable) and SP Ausnet (A1 stable).
"The final decisions to reduce tariffs will lower revenue for EPG,
Envestra and SP Ausnet. This is primarily driven by the lower rate
of return approved in the decisions" says Mary Anne Low, a Moody's
Analyst.
The AER reduced EPG, Envestra and SP Ausnet's real tariffs from
current levels by 13.9%, 0.17% and 17.4% respectively. The
regulator lowered the regulated rate of return for these networks
from more than 9% to below 7.4%.
"Notwithstanding the reduction in revenue, we believe the
companies have the ability to recover a majority of the lost
revenue through interest savings," says Low, adding, "we expect
these companies to benefit from locking in lower base interest
rates via interest rate derivatives, which will offer meaningful
savings from the higher rates paid during the previous regulatory
period."
As a result of these measures, we do not see a material impact on
the credit profiles of EPG, Envestra and SP Ausnet at this point
of time. In these regulatory decisions, the AER's observed risk
free rate is at the low 3% range, which is substantially lower
than the 6% observed during the previous revenue reset in 2008.
"We also expect the three companies to pursue measures to manage
their operating costs and capital expenditures in response to the
reduced revenue," says Low, adding "However, any credit benefit
will be based on the individual companies' execution of these
plans".
Overall, the regulator approved operating cost allowances that are
broadly in line with those approved in the last regulatory period.
For EPG and Envestra, the approved per annum operating cost
allowance are higher than in the previous period. In addition, the
capital expenditure allowances approved are also higher than the
amount spent by the companies in the prior period.
Moody's will continue to work closely with the companies to
consider the full impact of the regulatory decisions, as well as
their strategies to manage the impact on the companies' credit
profiles.
EPG's business is derived primarily from its gas distribution
networks whilst the Victorian gas distribution business represents
around 40% and 20% of total regulated asset base for Envestra and
SP Ausnet respectively.
Regulated tariffs for EPG, Envestra's Victorian network and SP
Ausnet are set until the end of 2017. The next revenue reset will
apply from 1 January 2018 and will be subject to AER's new rules
as announced in November 2012.
The principal methodology used in the ratings was Regulated
Electric and Gas Networks published in August 2009.
EPG owns and operates the Multinet gas distribution networks in
Victoria, Australia. The company is wholly-owned by DUET Group
(DUET, unrated), an ASX100 utility fund listed on the Australian
Stock Exchange.
Envestra - headquartered in Adelaide, South Australia - is the
owner of natural gas pipelines across Australia including South
Australia, Queensland and Wagga Wagga. It also owns Envestra
Victoria (EnVic, unrated), which owns gas networks and
transmission assets in Victoria.
SP AusNet is a listed infrastructure entity based in Melbourne. It
owns [1] SPI Australia Group -- which owns one of Victoria's
electricity and gas distribution networks -- and [2] SPI PowerNet
Pty Ltd -- which owns Victoria's electricity transmission network.
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C H I N A
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GEMDALE CORP: S&P Rates Proposed Senior Unsecured Notes 'BB-'
-------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB-' long-term
issue rating and 'cnBBB-' long-term Greater China credit scale
rating to a proposed issue of Chinese-renminbi-denominated
benchmark size senior unsecured notes by Gemdale (Asia) Holding
Ltd. Famous Commercial Ltd. and five other offshore subsidiaries
of Gemdale Corp. (Gemdale: BB+/Stable/--; cnBBB+/--)
unconditionally and irrevocably guarantee the notes. The ratings
on the notes are subject to S&P's review of the final issuance
documentation.
Gemdale wholly owns Famous, its Hong Kong-based offshore holding
company and financial platform. Gemdale (Asia) is a special-
purpose vehicle that Famous fully owns. S&P applies a top-down
approach while assessing the parent-subsidiary link between
Gemdale and Famous because the stand-alone credit profile of
Famous is not meaningful, in S&P's view, given the group structure
and transaction arrangement.
S&P rated the proposed notes two notches below the long-term
corporate credit rating on Gemdale because:
-- S&P views Famous as a "highly strategic" subsidiary, but
not a "core" subsidiary, of Gemdale. Famous and Gemdale
are strategically, financially, and operationally
integrated. But Famous has a limited history of
operations; the company was founded in 2005. In addition,
Famous is smaller in scale, with its total assets
accounting for about 10% of Gemdale's total assets.
-- The timeliness of the financial support from Gemdale to
Famous is uncertain because of China's controls over
foreign exchange and capital, and uncertainty relating to
regulatory approvals.
-- S&P do not consider a "keepwell agreement" and an
undertaking for an equity interest purchase between Gemdale
and Famous as guarantees even though the arrangements
demonstrate strong parent support. A keepwell agreement is
a contract between a parent company and its subsidiary to
maintain solvency and financial backing throughout the term
set in the agreement.
Gemdale intends to use the notes proceeds to refinance some
existing offshore debt obligations. The company's debt is
unlikely to be higher than S&P's base-case expectation.
The rating on Gemdale reflects the company's low asset turnover
and large, albeit reducing, exposure to the high-end residential
property segment, which is vulnerable to unfavorable regulations.
Gemdale's lower profitability and weaker credit ratios than peers
with a similar market position also constrain the rating.
Nevertheless, the company's established market position and
geographically diverse operations, its long record of steady
growth through market cycles, and its consistent financial
management with good financial flexibility support the rating.
The stable outlook reflects S&P's view that Gemdale can generate
satisfactory property sales in a volatile market and maintain
adequate liquidity to meet its financial obligations. S&P expects
the company to continue to have a large unrestricted cash balance
and diversified funding sources to support its operations.
SUNTECH POWER: Misses Payment on 3% Convertible Senior Notes
------------------------------------------------------------
Suntech Power Holdings Co., Ltd., on March 15, 2013, did not make
a required payment due under its 3.00% Convertible Senior Notes
Due 2013. The Notes matured on March 15, 2013, and as of that
date an aggregate principal amount of US$541 million of the Notes
remained outstanding.
On March 11, Suntech said it has entered into a forbearance
agreement with holders of more than 60% of its 3% Convertible
Notes, for which a principal payment of US$541 million is due
March 15, 2013. Under the forbearance agreement, in the event the
Company failed to make payments due under the Notes on March 15,
the signing bondholders agree not to exercise their rights under
the Notes and the related indenture until May 15, subject to
certain market-standard early termination events.
Suntech said the forbearance agreement will enable the Company to
continue to work with holders of the Notes with a view to
achieving a consensual restructuring.
David King, Suntech's CEO, said, "The forbearance agreement
demonstrates bondholders' support for Suntech and provides an
excellent platform to further discussions towards a mutually
agreeable restructuring of the Notes. We are making progress and
are working to find a resolution soon. At the same time, we are
continuing our cost and operational review to further improve our
efficiency."
Cassandra Sweet and Kathy Chu, writing for The Wall Street
Journal, said it wasn't clear what the Chinese solar-panel
company's plans were for repaying investors. A Suntech spokesman
declined to comment.
On March 14, Suntech said it has been contacted by the New York
Stock Exchange, Inc. regarding that day's unusual trading activity
relating to its American depositary shares. "Management of the
Company is not aware of undisclosed events that triggered such
trading activity. The Company is aware of recent market rumors
and third party reports regarding the Company's financial position
and other matters," according to the Company's regulatory
statement.
Early this month, Susan Wang was appointed chairwoman of the
Company's board of directors, effective March 4. A director of
Suntech since April 2009, Ms. Wang replaced Dr. Zhengrong Shi, who
will remain a director of Suntech.
"I'm pleased to have been elected chairwoman of Suntech's Board of
Directors," said Ms. Wang. "Suntech's board and management team
are focused on resolving critical capital structure initiatives
and charting Suntech's path forward as a leading supplier of solar
products."
Ms. Wang formerly served as the Executive Vice President of
Corporate Development and Chief Financial Officer for Solectron
Corporation, a worldwide provider of electronics manufacturing
services, where she worked from 1984 until 2002 and during which
she helped to guide Solectron's revenue growth from $40 million in
1984 to over $14 billion in 2002. Prior to Solectron, Ms. Wang
held financial and managerial positions with Xerox Corporation and
Westvaco Corporation.
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP)
produces solar products for residential, commercial, industrial,
and utility applications. With regional headquarters in China,
Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in
more than 80 countries.
SUNTECH POWER: Chinese Government Rules Out Rescue
--------------------------------------------------
The Sydney Morning Herald reports that China won't rescue Suntech
Power from its creditors because the former biggest solar-panel
maker needs to retrench along with the rest of the industry, two
advisers to government agencies said.
SMH relates that Li Junfeng, director of the climate-change
strategic research division at the government's National
Development and Reform Commission, said officials in Beijing want
to pare excess manufacturing capacity and consolidate the
US$25 billion global industry that's led by China.
"The government won't intervene and shouldn't," Li said in an
interview, the report relays. According to SMH, Meng Xiangan,
vice chairman of the China Renewable Energy Society, a liaison
between the industry and the state, said Suntech should "not rely
on government assistance."
SMH says the comments from advisers with knowledge of the Chinese
government's thinking cast doubt on whether Suntech, the largest
solar panel manufacturer in 2011, can avoid bankruptcy. The
company on March 11 said it obtained an agreement from more than
60 per cent of bond holders to delay repayment for two months on
US$541 million of notes due March 15.
The national government wants to avoid a default, which would be
the first for a bond issued by a company based in mainland China,
the report notes. Restructuring the solar industry is one of the
first issues confronting Premier Li Keqiang as his administration
takes over from Wen Jiabao this month, SMH says.
Suntech's best course would be to "file for bankruptcy for some
assets and let a state-owned power enter to protect certain
interests," the report quotes Meng as saying. "The entire company
won't go bankrupt. Its brand will remain alive."
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP)
produces solar products for residential, commercial, industrial,
and utility applications. With regional headquarters in China,
Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in
more than 80 countries.
SUNTECH POWER: Some Bondholders Mull Suit to Force Payment
----------------------------------------------------------
Cassandra Sweet and Tess Stynes, writing for Dow Jones Newswires,
report that certain bondholders of Suntech Power Holdings Co. Ltd.
plan to sue the company to collect on their investment, according
to a New York-based attorney who represents some of those
investors.
"We're putting a group together to sue the company because it
missed its bond payment," James Millar, Esq. --
james.millar@wilmerhale.com -- a partner with WilmerHale, said
Monday in an interview, according to Dow Jones. He declined to
name the bondholders he represents.
Suntech on March 15, 2013, did not make a required payment due
under its 3.00% Convertible Senior Notes Due 2013. The Notes
matured on March 15 and as of that date an aggregate principal
amount of US$541 million of the Notes remained outstanding.
On March 11, Suntech said it has entered into a forbearance
agreement with holders of more than 60% of its 3% Convertible
Notes. Under the forbearance agreement, in the event the Company
failed to make payments due under the Notes on March 15, the
signing bondholders agree not to exercise their rights under the
Notes and the related indenture until May 15, subject to certain
market-standard early termination events. Suntech said the
forbearance agreement will enable the Company to continue to work
with holders of the Notes with a view to achieving a consensual
restructuring.
On March 18, Suntech said it was continuing talks with debtholders
over a new repayment plan.
According to the Dow Jones report, Mr. Millar said at least four
investors who hold Suntech bonds plan to file suit against the
company in New York State Court in Manhattan as early as this
week. The bondholders who plan to sue aren't among those who have
been in talks with the company over a potential repayment deal, he
added.
Dow Jones also reports the group of investors that signed a
forbearance agreement said in a statement they were still
negotiating with the company over a repayment deal and were
hopeful that they would reach agreement with Suntech. "The Ad Hoc
Group believes that a consensual restructuring is attainable that
will maximize recoveries for all noteholders," according to the
statement.
According to Dow Jones, a spokesman for Duff & Phelps Securities
LLC, one of the firms representing some Suntech bondholders
engaged in talks with the company, declined to comment. A
spokesman for Suntech also declined to comment. Calls made to
Wilmington Trust Co., the trustee for the bonds, weren't returned.
Dow Jones relates that on Monday, the American depositary shares
of Suntech fell 8.4% to 64 cents in 4 p.m. trading on the New York
Stock Exchange.
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP)
produces solar products for residential, commercial, industrial,
and utility applications. With regional headquarters in China,
Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in
more than 80 countries.
ZHONG AN: Needs Liquidity Improvements to Avoid Ratings Downgrade
-----------------------------------------------------------------
Moody's Investors Service says Zhong An Real Estate Limited's
weaker-than-expected 2012 results should pressure the company to
quickly improve its financial position if it is to avoid further
negative rating actions.
"Zhong An's liquidity is tighter than expected due to the increase
in its level of short-term debt maturities. Its cash on hand of
RMB1.1 billion cannot cover its short-term maturing debt of RMB1.7
billion and committed land payment premiums of RMB0.2 billion,"
says Lina Choi, a Moody's Vice President and Senior Analyst.
"Therefore, Moody's expects that it will need to accelerate
contract sales or raise external financing in order to cover the
shortfall of RMB800 million."
If Zhong An is unable to take any concrete measures to improve its
liquidity position in the near term, its ratings would come under
downgrade pressure.
"In addition, its key financial ratios for 2012 have weakened, as
exemplified by lower profit margins and increased borrowings,"
says Choi, who is also the lead analyst for Zhong An.
Gross margin dropped to 38% in 2012 from 47% in 2011, as a higher
proportion of booked revenue came from lower-priced projects in
Anhui Province and high land cost of the Dragon Bay project.
Moody's expects the company's gross margin to bottom out at around
35% in the next 12-18 months, after incorporating the mixed impact
of 1) lower average selling prices for new projects, as the
company plans to increase the speed of inventory turnover; and 2)
the fact that a considerable proportion of sales for 2012 came
from higher-priced projects in Ningbo and Hangzhou. Revenue from
these higher-margin projects will be recognized over the course of
2013.
At the same time, Zhong An's total borrowings increased to RMB4.2
billion in 2012 from RMB3.1 billion in 2011. Interest costs stayed
at a high level throughout 2012, due primarily to the presence of
high-cost trust loans in its total loan mix.
As a result, adjusted debt/capitalization increased to around 43%
in 2012 from 38% in 2011; and adjusted EBITDA/interest declined
below 2x from 2.5x. Despite this weakness, these metrics should
still be contained within the company's B2 rating.
On the other hand, Zhong An's contract sales of RMB2.2 billion
were 19.8% higher than 2011. An improvement in sales momentum in
4Q2012 contributed to the improved level for full-year contract
sales.
While contract sales showed their first signs of improvement in
4Q2012, Moody's will closely monitor Zhong An's sales execution in
2013. Moody's expects it to continue the positive trend in sales,
which should in turn improve its financial metrics over the next
12 - 18 months.
Zhong An's B2 corporate family rating continues to reflect its (1)
low-cost land bank; and (2) its development of commercial
properties, which will partially mitigate earnings volatility.
The principal methodology used in this rating was the Global
Homebuilding Industry Methodology published in March 2009.
Zhong An Real Estate Ltd. develops residential and commercial
properties in the Yangtze River Delta Area. It has a land bank of
around 7.2 million sqm in gross floor area, mainly in Hangzhou and
Yuyao in Zhejiang Province; Huaibei and Hefei in Anhui Province;
as well as Suzhou in Jiangsu Province.
The company also has an investment portfolio, including a hotel
(Holiday Inn) and a retail mall (Highlong Plaza) in Hangzhou.
Zhong An was listed on the Hong Kong Stock Exchange in November
2007. It is majority-owned (around 68.7%) and controlled by its
chairman, Mr. Shi Kancheng.
================
H O N G K O N G
================
ARTISON MANAGEMENT: Commences Wind-Up Proceedings
-------------------------------------------------
Members of Artison Management Services Limited, on Feb. 28, 2013,
passed a resolution to voluntarily wind up the company's
operations.
The company's liquidators are:
Chan Wai Hing
Kenneth Graeme Morrison
42/F, Central Plaza
18 Harbour Road
Wanchai, Hong Kong
BABY FISH: Creditors' Meeting Set for March 20
----------------------------------------------
Creditors of Baby Fish Limited will hold their meeting on
March 20, 2013, at 10:15 a.m., for the purposes provided for in
Sections 241, 242, 243, 244, 251, 255A and 283 of the Companies
Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
BEIJING MUSIC: Creditors' Proofs of Debt Due March 29
-----------------------------------------------------
Creditors of The Beijing Music Festival Foundation (Hong Kong)
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by March 29, 2013, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on Feb. 27, 2013.
The company's liquidators are:
John Robert Lees
Mat Ng
20/F, Henley Building
5 Queen's Road
Central, Hong Kong
BEST QUALITY: Creditors' Meeting Set for March 20
-------------------------------------------------
Creditors of Best Quality Services Limited will hold their meeting
on March 20, 2013, at 4:15 p.m., for the purposes provided for in
Sections 241, 242, 243, 244, 251, 255A and 283 of the Companies
Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
CHEERFUL FOOD: Creditors' Meeting Set for March 20
--------------------------------------------------
Creditors of Cheerful Food & Beverage Holdings Limited will hold
their meeting on March 20, 2013, at 3:15 p.m., for the purposes
provided for in Sections 241, 242, 243, 244, 251, 255A and 283 of
the Companies Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
FAT FAT: Creditors' Meeting Set for March 20
--------------------------------------------
Creditors of Fat Fat Limited will hold their meeting on March 20,
2013, at 11:15 a.m., for the purposes provided for in Sections
241, 242, 243, 244, 251, 255A and 283 of the Companies Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
FMP INVESTMENT: Creditors' Proofs of Debt Due March 22
------------------------------------------------------
Creditors of FMP Investment Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 22, 2013, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on Feb. 28, 2013.
The company's liquidators are:
Patrick Cowley
Wing Sze Tiffany Wong
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
GERBER HOLDINGS: Creditors' Proofs of Debt Due March 22
-------------------------------------------------------
Creditors of Gerber Holdings Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 22, 2013, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on March 1, 2013.
The company's liquidators are:
Osman Mohammed Arab
Wong Kwok Keung
29/F, Caroline Centre
Lee Gardens Two
28 Yun Ping Road
Hong Kong
KWAI KEE: Creditors' Meeting Set for March 20
---------------------------------------------
Creditors of Kwai Kee Fruit Vegetable Limited will hold their
meeting on March 20, 2013, at 12:15 p.m., for the purposes
provided for in Sections 241, 242, 243, 244, 251, 255A and 283 of
the Companies Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
LP DISPLAYS: Annual Meetings Set for March 22
---------------------------------------------
Members and creditors of LP Displays International Limited will
hold their annual meetings on March 22, 2013, at 10:00 a.m., and
10:30 a.m., respectively at c/o FTI Consulting, Level 22, The
Center, 99 Queen's Road, Central, Central, in Hong Kong.
At the meeting, Bruno Arboit, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
M.D. CREATION: Creditors' Proofs of Debt Due March 21
-----------------------------------------------------
Creditors of M.D. Creation Limited, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by March 21, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Roderick John Sutton
John Howard Batchelor
c/o FTI Consulting (Hong Kong) Limited
Level 22, The Center
99 Queen's Road, Central
Central, Hong Kong
PIPER JAFFRAY: Creditors' Proofs of Debt Due March 29
-----------------------------------------------------
Creditors of Piper Jaffray Asia Securities Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by March 29, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on March 1, 2013.
The company's liquidators are:
Edward Simon Middleton
Lui Yee Man
8th Floor, Prince's Building
10 Chater Road
Central, Hong Kong
SHINE POINT: Creditors' Proofs of Debt Due March 22
---------------------------------------------------
Creditors of Shine Point Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
March 22, 2013, to be included in the company's dividend
distribution.
The company's liquidator is:
Chan Che Wai
Units 2201-2, 22/F
ING Tower, 308 Des Voeux
Road Central, Hong Kong
VIGERS HK: Annual Meetings Set for March 19
-------------------------------------------
Contributories and creditors of Vigers Hong Kong Limited will hold
their final meetings on March 19, 2013, at 10:30 a.m., and 11:00
a.m., respectively at 602 The Chinese Bank Building, 61-65 Des
Voeux Road Central, in Hong Kong.
At the meeting, Wong Teck Meng, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
YU KEE: Creditors' Meeting Set for March 20
-------------------------------------------
Creditors of Yu Kee Trading Company Limited will hold their
meeting on March 20, 2013, at 1:15 p.m., for the purposes provided
for in Sections 241, 242, 243, 244, 251, 255A and 283 of the
Companies Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
YU KEE DEVELOPMENT: Creditors' Meeting Set for March 20
-------------------------------------------------------
Creditors of Yu Kee Development Limited will hold their meeting on
March 20, 2013, at 2:15 p.m., for the purposes provided for in
Sections 241, 242, 243, 244, 251, 255A and 283 of the Companies
Ordinance.
The meeting will be held at 602 The Chinese Bank Building, 61-65
Des Voeux Road Central, in Hong Kong.
=========
I N D I A
=========
AG CONVEYING: CRISIL Assigns 'D' Ratings to INR70MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of AG Conveying Systems Pvt Ltd. The ratings reflect
instances of delay by AGCSPL in servicing its debt; the delays
have been caused by the company's weak liquidity arising out of
its cash losses in 2011-12 (refers to financial year, April 1 to
March 31) and depressed sales with muted profitability in the
current year.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Short-Term Loan 7.5 CRISIL D
Proposed Long-Term 11.5 CRISIL D
Bank Loan Facility
Packing Credit 7.5 CRISIL D
Bank Guarantee 15.0 CRISIL D
Cash Credit 28.5 CRISIL D
AGCSPL also has a weak financial risk profile, marked by a small
net worth and a high gearing, and small scale of operations in a
highly fragmented industry. The company, however, benefits from
its promoters' extensive experience in the material handling
business.
AGCSPL was incorporated 1971 as a proprietorship firm by Mr. Gopal
Apte. In 1983, Mr. Shripad Apte (son of Mr. Gopal Apte) joined the
firm and it was reconstituted as a partnership firm; in 2008, the
firm was again reconstituted as a private limited company. Till
1975, the company was only providing consultation services and
later started manufacturing material handling equipment.
Currently, AGCSPL is engaged in manufacturing fuel handling
equipment (conveying systems). Recently, AGCSPL has developed a
sugar harvesting machine
AMBOJINI PROPERTY: CRISIL Rates INR400MM Bank Loan at 'B+'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank
facilities of Ambojini Property Developers Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 400 CRISIL B+/Stable
Bank Loan Facility
The rating reflects APDPL's susceptibility to risks related to
completion and saleability of its ongoing real estate project, and
geographical concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of its
promoters in the real estate segment.
Outlook: Stable
CRISIL believes that APDPL will continue to benefit over the
medium term from its promoters' extensive experience in real
estate segment. The outlook may be revised to 'Positive' if APDPL
achieves a strong growth in its cash flows, driven most likely by
earlier-than-expected completion of its ongoing projects and
receipt of advances, and more-than-expected sales realisations
from the residential property, thereby aiding its liquidity.
Conversely, the outlook may be revised to 'Negative' if the
company faces delays in completion of its ongoing projects or in
receipt of payments from customers, or if it undertakes a larger-
than-expected debt-funded capital expenditure programme, leading
to deterioration in its financial risk profile.
Incorporated in 2010 as a partnership firm and reconstituted as a
private limited company in 2011, APDPL is a Chennai-based real
estate company floated by the directors of Real Value Promoters
Pvt Ltd (rated 'CRISIL BB-/Stable/CRISIL A4+') in partnership with
Ask Investment Property Advisors. The company is currently
developing a residential real estate project in Kottivakkam
(Chennai).
BANK OF INDIA: Moody's Affirms 'D' BFSR; Outlook is Negative
------------------------------------------------------------
Moody's Investors Service has affirmed the supported deposit
ratings of Baa3/P-3 of Bank of India, and has assigned a Baa3 to a
newly proposed USD denominated senior unsecured bond (rule 144A)
to be issued via BOI's London Branch in an amount of up to USD 1
billion with a maturity of 5.5 years. The proposed bond will be
listed on Singapore exchange. The outlook on these supported
ratings is stable.
At the same time, Moody's has affirmed the bank's standalone bank
financial strength rating of D, which maps to a baseline credit
assessment of ba2 on the long-term scale, but has revised the
rating outlook to negative on this rating.
The negative outlook on BOI's standalone rating reflects the
pressure arising from the persistently difficult economic
environment in India, which poses risk of further asset quality
deterioration, and the weak shock-absorbing buffers when compared
to similarly-rated peers. On the other hand, the stable outlook on
the supported ratings reflects the high probability of support
that we would expect in times of stress, and the high likelihood
that the bank deposit rating would remain at Baa3 even if its
standalone rating were to be downgraded to ba3 in the future,
given BOI's majority government ownership and its importance to
the banking system.
Ratings Rationale:
The revision in rating outlook to negative on the standalone
BFSR/BCA takes into account BOI's weak position vis-…-vis its
domestic and global peers, particularly with respect to its asset
quality vulnerability, the decline in profitability that it has
recently experienced and its relatively weak core capital level
and internal capital generation capacity. These factors prevent
the bank to sustain its own loan growth and cause the bank to
continue to need frequent capital injections by the government. On
the positive side, BOI's rating takes into account its strong
domestic franchise, comfortable liquidity and stable funding
profile.
BOI's asset quality has weakened over the last year, with a rise
in impaired loans (gross non-performing loans plus restructured
loans) as a percentage of total loans to 9.6% at end-December 2012
from 8.8% at end-March 2012. Going forward, although there are
signs of moderation in the challenges characterizing the operating
environment - moderation in inflation and interest rates - they
are not significant enough yet to mitigate the pressures on
repayment capacity of corporate borrowers and hence continue to
pose risks to bank's asset quality.
As a percentage of average risk weighted assets, at end-March
2012, BOI reported a relatively lower pre-provision profits of
3.20% and net income of 1.22%. More particularly, Moody's expects
pressured net interest margins and rising credit costs to continue
to pressure pre-provision and net income levels
Lower net income levels result in lower internal capital
generation, necessitating external capital infusion from
government of India to maintain capital position. In March 2013,
the Indian government infused INR 8.1 billion of equity capital to
maintain
BOI's tier 1 capital at 8.3% at December 31 2012, including nine-
month profits. Nevertheless, BOI's shock absorbing buffer is low
as a result of low provisioning coverage of 36% of gross non-
performing loans or 12% of impaired loans. Moreover, when
comparing Indian banks, including BOI, to regional peers their
asset quality, profitability and capitalization levels stand
lower.
Moody's has revised BOI's foreign hybrid Tier 1 debt rating
(preferred stock non-cumulative) to B2(hyb), as these ratings of
junior securities are notched off adjusted BCA under our principal
methodology for bank ratings. The B2(hyb) rating of these junior
securities carries a negative outlook, in line with the negative
outlook on the standalone rating.
The list of ratings assigned to BOI and its branches are:
(P)Baa3 for foreign currency senior unsecured debt program, stable
outlook
(P)Ba1 for foreign currency subordinated debt program, stable
outlook
(P)Ba2 for foreign currency junior subordinated debt program,
stable outlook, and
B2 (hyb) for hybrid tier 1 debt (preferred stock non-cumulative),
negative outlook.
Bank of India, London branch
(P)Baa3 for foreign currency senior unsecured debt program, stable
outlook
Baa3 for foreign currency senior unsecured debt, stable outlook
(P)Ba1 for foreign currency subordinated debt program, stable
outlook, and
Ba1 for foreign currency subordinated debt, stable outlook.
Bank of India, Jersey branch
(P)Baa3 for foreign currency senior unsecured debt program, stable
outlook
(P)Ba1 for foreign currency subordinated debt program, stable
outlook
(P)Ba2 for foreign currency junior subordinated debt program,
stable outlook, and
B2 (hyb) for hybrid tier 1 debt (preferred stock non-cumulative),
negative outlook.
BOI's ratings are unlikely to be revised upwards, given the
negative outlook on the standalone ratings.
BOI's ratings could face downward pressure if asset quality
deteriorates further with its reported gross non-performing loan
ratio increasing to above 5% or total impaired loans increasing to
over 10.5% 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% at year-end, 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 BOI's
ratings.
The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.
Bank of India, headquartered in Mumbai, had assets of INR3.85
trillion as of 31 March 2012.
CONCORD HOSPITALITY: CRISIL Puts 'D' Ratings on INR780MM Loans
--------------------------------------------------------------
CRISIL has revoked the suspension of its ratings on the bank
facilities of Concord Hospitality Pvt Ltd and has assigned its
'CRISIL D/CRISIL D' ratings to these facilities. CRISIL had
earlier, through its rating rationale dated December 26, 2011,
suspended the ratings as CHPL had not provided the necessary
information required to take rating view. CHPL has now shared the
requisite information, enabling CRISIL to assign ratings to the
company's bank facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 30 CRISIL D (Assigned; Suspension
Revoked)
Term Loan 600 CRISIL D (Assigned; Suspension
Revoked)
Proposed Long-Term 150 CRISIL D (Assigned; Suspension
Bank Loan Facility Revoked)
The ratings reflect instances of delay by CHPL in servicing its
debt; the delays have been caused by the company's weak liquidity,
resulting from a time overrun in its project.
CHPL also has limited experience in hotel management, and is
exposed to the cyclicality inherent in the hospitality industry.
However, the company benefits from the healthy growth prospects
for its hotel, because of the hotel's advantageous location and
marketing and management tie-up with Carlson Hospitality.
Incorporated in 2006, CHPL is engaged in real estate trading and
development as well as in the hospitality business. It has
completed Radisson hotel in Amritsar (Punjab) under franchise from
Carlson Hospitality, at an estimated cost of INR1.4 billion. CHPL
has also developed a commercial complex near the hotel site in
association with Ansal Property and Infrastructure Ltd. Its key
promoter-director Mr. Harpinder Singh Gill looks after its day-to-
day operations.
FLEXIPOL FOAMS: CRISIL Raises Ratings on INR65.6MM Loans to 'BB-'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of Flexipol
Foams Pvt Ltd to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 37.5 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
Letter of Credit 42.4 CRISIL A4+(Upgraded from
'CRISIL A4')
Standby Line of Credit 5.6 CRISIL BB-/Stable(Upgraded
from 'CRISIL B+/Stable')
Term Loan 22.5 CRISIL BB-/Stable(Upgraded
from 'CRISIL B+/Stable')
The rating upgrade reflects the improved operating efficiencies of
FFPL, as reflected in improvement in its operating margin to
around 9.18 per cent in 2011-12 (refers to financial year, April 1
to March 31) from 6.24 per cent in 2010-11. The improvement in the
margin was driven by the capital expenditure (capex) incurred by
FFPL in 2010-11 towards the automation of the manufacturing
process and additional capacity installed by the company, leading
to economies of scale. As a result of the increase in the
profitability, the liquidity of the company stands improved, with
high cash accruals of around INR9.8 million in 2011-12 as against
debt obligations of INR5.3 million.
The rating also reflects the extensive experience of FPPL's
promoters in the foam manufacturing industry and its longstanding
customer relationships. These rating strengths are partially
offset by FPPL's below-average financial risk profile, marked by
small net worth, modest gearing, and weak debt protection metrics,
its large working capital requirements, its susceptibility to
volatility in raw material prices, and exposure to pricing
pressures due to intense competition in the foam industry.
Outlook: Stable
CRISIL believes that FFPL will continue to benefit over the medium
term from its promoters' industry experience and established brand
presence. The outlook may be revised to 'Positive' in case of
significant improvement in FFPL's scale of operations, sustained
profitability, and improvement in capital structure. Conversely,
the outlook may be revised to 'Negative' if FFPL undertakes any
additional large, debt-funded capex, or its profitability declines
significantly, thereby deteriorating its financial risk profile.
Incorporated in 1995, FPPL is promoted by Mr. Arun Kumar Jaluka.
FPPL manufactures flexible polyurethane foam sheets, foam rolls
and other foam products used in the furniture, leather, garment,
automobile, footwear and packaging industries. The company's plant
located in Bhiwadi, Rajasthan, has a foam production capacity of
2400 tonnes per annum.
GARIB NAWAZ: CRISIL Assigns 'D' Ratings to INR110MM Loans
---------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Garib Nawaz Polymers Private Limited (GNPPL; part of the Garib
Nawaz group). The rating reflects instances of delay by the Garib
Naraz group in servicing its debt; the delays have been caused by
the group's weak liquidity position due to group's small cash
accruals and large working capital requirements.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 61.5 CRISIL D
Term Loan 48.5 CRISIL D
The Garib Nawaz group also has a weak financial risk profile,
marked by a weak capital structure and debt protection metrics,
small scale of operations, and susceptibility to raw material
price volatility. These rating weaknesses are partially offset by
group's moderate operating efficiencies supported by fiscal
benefits derived from state government and its diverse production
applications.
For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of GNPPL and G.N. Pet, collectively
referred to as Garib Nawaz group. This is because both the
entities are managed by the same promoter, are in the same line of
business and have fungible cash flows between them.
GNPPL, incorporated in 2007 by Mr. Sunil Bansal, manufactures
Polyethylene Terephthalate (PET) bottles for consumers in
pharmaceuticals, food products, dairy, cosmetics, mineral water
and liquor industries. It commenced commercial operations during
2008. In 2009 Mr. Bansal established the proprietorship concern
GNP which is also in the same line of business and commenced
commercial operations during 2011. Both group entities'
manufacturing facilities are located in Baddi, Himachal Pradesh.
The Garib Nawaz group reported a profit after tax (PAT) of INR13
million on net sales of INR254 million for 2011-12 (refers to
financial year, April 1 to March 31), as against a PAT of INR13
million on net sales of INR212 million for 2010-11.
JAI AMBEY: CRISIL Assigns 'B+' Rating to INR80MM Cash Credit
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Jai Ambey Wire Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 80 CRISIL B+/Stable (Assigned)
The rating reflects JAWL's weak financial risk profile, marked by
high gearing, and its susceptibility to intense competition and
high fragmentation in the metal wire industry. These rating
weaknesses are partially offset by the extensive industry
experience of JAWL's promoters.
Outlook: Stable
CRISIL believes that JAWL will continue to benefit from its
promoters' extensive industry experience. The outlook may be
revised to 'Positive' in case of a significant increase in JAWL's
sales or improvement in its financial risk profile, driven by
improvement in its profitability and capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
deterioration in JAWL's financial risk profile, either on account
of less-than-expected profitability, larger-than-expected working
capital requirements, or a large, debt-funded capital expenditure
programme.
JAWL was set up in 2007-08 (refers to financial year, April 1 to
March 31) as a proprietorship firm by Mr. Arvind Dubey. The
company was later reconstituted as a private limited company in
April 2012. The company manufactures mild steel wires, and barbed
wires. The manufacturing facility is in Raipur (Chattisgarh).
KONARK POLYTUBES: CRISIL Assigns 'B' Ratings to INR76.5MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Konark Polytubes Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 9 CRISIL B/Stable (Assigned)
Proposed Long-Term 7.5 CRISIL B/Stable (Assigned)
Bank Loan Facility
Bank Guarantee 4 CRISIL A4 (Assigned)
Cash Credit 60 CRISIL B/Stable (Assigned)
The ratings reflect KPPL's weak financial risk profile, marked by
a small net worth, moderately high gearing, and weak debt
protection metrics, large working capital requirements, low
profitability, and exposure to intense industry competition. These
rating weaknesses are partially offset by KPPL's small, but
improving, scale of operations and the benefits that the company
derives from its promoters' experience in polyvinyl chloride (PVC)
pipes manufacturing and favourable demand for these pipes.
Outlook: Stable
CRISIL believes that KPPL will benefit from its promoters'
experience in PVC pipe industry over the medium term. The outlook
may be revised to 'Positive' if the company significantly improves
its scale of operations and profitability, leading to more-than-
expected cash accruals, or if there is sizable fresh equity
infusion, easing liquidity pressures. Conversely, the outlook may
be revised to 'Negative' if company's financial risk profile,
especially liquidity, deteriorates further because of larger-than-
expected working capital requirements or a large, debt-funded
capex.
KPPL was incorporated by Mr. Anmol Ratan and his family members
during 1996. The company set up a PVC pipe manufacturing facility
at Aligarh (Uttar Pradesh) and commenced commercial operations
from 2007-08 (refers to financial year, April 1 to March 31). KPPL
facility presently has capacity to manufacture around 7200 tonnes
per annum of PVC pipes. The company sells its products under the
brand names of Konark and Kisan Agro, mainly in Uttar Pradesh.
KRISHNA GODAVARI: CRISIL Cuts Rating on INR1.02BB Loan to 'B-'
--------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Krishna Godavari Power Utilities Limited to 'CRISIL B-/Stable'
from 'CRISIL BB-/Stable'.
Amount
Facilities (INR Bln) Ratings
---------- --------- -------
Long-Term Loan 1.0219 CRISIL B-/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects deterioration in KGPU's liquidity
because of significant time and cost overruns in its ongoing
project of setting up a 60-megawatt (MW) coal-based power plant.
The company's project is delayed by eight months, and the plant is
expected to commence operations by June 2013. The principal
repayment on its term loan would start from July 2013. Hence,
more-than-expected delay in completion of the project would result
in KGPU's cash accruals being inadequate to service its term debt.
There has also been a cost overrun in KGPU's project to the extent
of INR655 million; the company plans to fund 70 per cent of this
additional cost through debt. It has intimated its lenders
regarding the delay in commissioning of the plant and has
requested for rescheduling of its term loan. Its term loan was
already rescheduled in July 2012, with the principal repayment
rescheduled to commence from July 15, 2013, vis-…-vis July 15,
2012, as per the earlier sanction terms.
The rating reflects KGPU's susceptibility to project
implementation risks, and to volatility in coal prices. These
rating weaknesses are partially offset by the good business
support that the company receives from PTC India Ltd (PTC; rated
'CRISIL A1+'), which owns 49 per cent stake in KGPU.
Outlook: Stable
CRISIL believes that KGPU will benefit over the medium term from
its healthy business synergies with PTC. The outlook may be
revised to 'Positive' if KGPU completes its project within the
revised scheduled time and budgeted cost, or there is higher-than-
expected infusion of funds by its promoters, thereby augmenting
its liquidity. Conversely, the outlook may be revised to
'Negative' if the plant does not commence operations within the
revised scheduled time or there are delays in its stabilisation.
KGPU is an independent power producer based in Andhra Pradesh
(AP). The estate of the late Dr. M Venkataratnam and his family
have 51 per cent stake in the company, and PTC has 49 per cent
stake. KGPU is implementing an imported coal-based power plant in
Nalgonda district (AP), with an installed capacity of 60 MW.
PG ASSOCIATES: CRISIL Upgrades Rating on INR50MM Loan to 'B+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
PG Associates Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL
B/Stable'; the rating on the company's short-term bank facilities
has been reaffirmed at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 50 CRISIL B+/Stable (Upgraded
from 'CRISIL B/Stable')
Letter of Credit 125 CRISIL A4 (Reaffirmed)
Proposed Letter of 25 CRISIL A4 (Reaffirmed)
Credit
The rating upgrade is driven by CRISIL's belief that PGA's
financial risk profile will improve over the medium term, driven
by continuous funding support from the promoters and sustenance of
improved operating margin. CRISIL believes that PGA will achieve
steady revenue growth over the medium term, and sustain its
operating margin at around 6 per cent, thus resulting in
improvement in its cash accruals. PGA's financial risk profile
will likely improve with an improvement in its cash accruals,
marked by interest coverage of around 1.6 times in the near term.
The rating reflects PGA's relatively small market position in the
fragmented timber, ceiling tiles and gypsum board trading industry
and its average financial risk profile, marked by high total
outside liabilities to total net worth ratio, and average debt
protection metrics. These rating weaknesses are partially offset
by promoters' extensive industry experience.
Outlook: Stable
CRISIL believes that PGA will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if there is an improvement in PGA's working
capital management, leading to better financial flexibility, or if
there is a significant improvement in its scale of operations and
profitability. Conversely, the outlook may be revised to
'Negative' if the company's financial risk profile deteriorates
due to increased working capital borrowings or if it undertakes
any large, debt-funded capital expenditure, or in case a change in
government policy has a negative impact on its operations.
PGA was incorporated in 1997 and is managed by Mr. Narayan Patel
and family. PGA is engaged in trading of timber and plywood. The
company is also engaged in trading of ceiling tiles and gypsum
board.
PGA reported a net profit of INR3.7 million on net sales of
INR328.0 million for 2011-12 (refers to period from April 1 to
March 31), against a net profit of INR2.4 million on net sales of
INR229.0 million for 2010-11.
VIJAYAKRISHNA HATCHERIES: CRISIL Rates INR28.5MM Loan at 'B-'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Vijayakrishna Hatcheries.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 28.5 CRISIL B-/Stable (Assigned)
The rating reflects VKH's modest scale of operations and
vulnerability to risks inherent in the poultry industry. The
ratings also factor in VKH's weak financial risk profile, marked
by modest net worth, high gearing and subdued debt protection
metrics. These rating weaknesses are partially offset by the
benefits that the firm derives from the extensive experience of
its proprietor in the poultry industry.
Outlook: Stable
CRISIL believes that the VKH will continue to benefit over the
medium term from the extensive experience of its proprietor in the
poultry business. The outlook may be revised to 'Positive' in case
there is significant and sustained improvement in the firm's
revenues and profitability margins, while improving its capital
structure and debt protection metrics. Conversely, the outlook may
be revised to 'Negative' in case of a significant decline in the
firm's revenues or profitability margins, or if there is
elongation in its working capital cycle or if it undertakes any
large debt-funded capex, resulting in weakening in its financial
risk profile.
VKH was established as a proprietorship concern in 2010 of Mrs.
Vijaya Reddy. The concern is engaged in the business of poultry
hatching. Its poultry unit is located in Ranga Reddy District,
Andhra Pradesh. The day to day operations are overseen by Mr.
Krishna Reddy (Husband of Mrs. Vijaya Reddy) and Mr. Amarnath
Reddy (Son of Mrs. Vijaya Reddy). The firm commenced commercial
operations from December 2012.
=================
I N D O N E S I A
=================
ALAM SUTERA: Fitch Assigns 'B+' LT Issuer Default Rating
--------------------------------------------------------
Fitch Ratings has assigned Indonesia-based property developer PT
Alam Sutera Realty Tbk Long-Term Foreign Currency Issuer Default
Ratings of 'B+' with Stable Outlook.
The agency has also assigned ASRI a senior unsecured rating of
'B+' and its proposed senior unsecured USD notes an expected
'B+(EXP)' rating, with a Recovery Rating of 'RR4'. The proposed
notes are to be issued by Alam Synergy Pte Ltd and guaranteed by
PT Alam Sutera Realty Tbk and certain subsidiaries. The final
rating is contingent upon receipt of documents conforming to
information already received.
Key Rating Drivers
The ratings reflect ASRI's small scale, lack of project
diversification and inherent volatility in the property
development business. Fitch views the company's project
concentration at Serpong, which represents more than 50% of
medium-term cashflows, as a major constraining factor over the
medium-term. The ratings, however, also recognise ASRI's low-cost,
large land bank inventory, strategic development location, and a
growing recurring income base.
The ratings are also supported by ASRI's high profit margins, low
leverage, and comfortable liquidity. Its pre-sales model also
allows a fast cash collection cycle which allows for minimum
working capital requirements and an ability to scale back project
execution if market reception is weaker than expected.
About 50% of ASRI's cashflows from Serpong are attributable to
commercial plots sales. Its strategic development location,
coupled with an established and growing urban population, will be
an important driver of commercial plot sales. The company also
plans to launch additional high-rise projects in the next couple
of months. Fitch takes comfort from continued robust property
demand to drive presales, partially mitigating ASRI's limited
track record in executing high-rise projects.
In January 2013 the company announced its proposed acquisition of
170 hectares of land bank from Modernland in Serpong. Fitch views
this acquisition positively, as it extends ASRI's development
life, particularly in Serpong, where the company's most developed
assets are concentrated.
ASRI opened its first shopping center, Mall@Alam Sutera, in
December 2012 with an about 97% occupancy rate. This, coupled with
ASRI's GWK project in Bali, will be the main contributors to
recurring income, which Fitch expects will cover about 69% of the
company's interest expense in 2013.
The Stable Outlook reflects Fitch's view that the company will be
able to maintain its strong financial metrics in the next 12 to 18
months, on continued strong presales and limited debt maturity
until 2017.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
- A sustained increase in leverage as measured by presales/gross
debt to below 0.75x (2012: 1.5x) on a sustained basis. However,
even in Fitch's stress case of weaker presales, leverage has
managed to remain above this threshold
- An increase in its exposure to non-core businesses
Positive rating action is not expected due to the cyclical nature
of property development business, company's small scale and lack
of project diversification
ALAM SUTERA: Strong 2012 Results Cue Moody's to Upgrade CFR to B1
-----------------------------------------------------------------
Moody's Investors Service upgraded the corporate family and senior
unsecured bond ratings of PT Alam Sutera Realty Tbk (Alam Sutera)
to B1 from B2.
The senior unsecured bonds were issued by Alam Sutera
International Pte Ltd, a wholly owned subsidiary of Alam Sutera.
At the same time, Moody's has assigned a provisional (P)B1 senior
unsecured rating to the proposed senior unsecured notes to be
issued by Alam Synergy Pte Ltd -- an entity wholly owned by Alam
Sutera -- and guaranteed by Alam Sutera and some of its
subsidiaries.
The outlook for the ratings is stable.
These actions conclude the rating review of Alam Sutera, which
commenced on 4 February 2013.
The provisional status of the senior unsecured bond rating will be
removed upon completion of the bond issuance with all satisfactory
terms and conditions met.
Ratings Rationale:
"The upgrade reflects Alam Sutera's strong performance in FY2012,
specifically in its core business of township development in Alam
Sutera, a suburb in the Tangerang region of Greater Jakarta," says
Jacintha Poh, a Moody's Analyst.
"The rating upgrade also reflects the company's successful
execution of projects such as the sales launches in the Pasir
Kemis township -- which is also in Tangerang -- and the completion
of the Mall@Alam Sutera," adds Poh, who is also Moody's Lead
Analyst for Alam Sutera.
In FY2012, the company posted record marketing sales of IDR3.4
trillion, a 33% increase from FY2011.
While its adjusted EBITDA/interest (9.3x) and adjusted debt/book
capitalization (34.6%) were weaker than in FY2011 (11.7x and 21.7%
respectively) -- because of the issuance of a USD150 million bond
in 1Q 2012 -- these ratios were stronger than Moody's expectations
and beyond the rating parameters for the company.
"We expect the strong operating cash flows and profitability of
the company's operations in the Alam Sutera township to continue
to support its ratings at least in the next 12-24 months," says
Poh.
"Its business is sustainable because of its low cost land bank in
Tangerang, a region in Greater Jakarta, and because its land bank
is expected to support 15 to 20 years of its core business of
township development in the area," adds Poh, also Moody's lead
analyst for Alam Sutera.
Alam Sutera increased its land bank to 2,074 ha at end-2012. Some
85% or 1,763 ha is located in Tangerang.
"However, we expect Alam Sutera to post a second consecutive year
of negative free cash flows in FY2013, given its rapid expansion
plans," says Poh.
"Moreover, Alam Sutera faces higher execution and development
risks in FY2013 than it did in FY2012, because of acquisitions
that have led to it expanding into areas in which it has limited
experience, such as the development of a tourist attraction in
Bali and the construction of a high-rise office building in
Central Jakarta," adds Poh.
Alam Sutera's capex in FY2012 totaled IDR3.4 trillion versus
operating cash flows of IDR2.3 trillion.
The company's capex in FY2012 was mainly used to: (1) acquire land
in the Tangerang region, (2) construct the Mall@Alam Sutera, (3)
acquire the Garuda Wisnu Kencana cultural park for IDR813 billion,
which is the tourism project in Bali, and (4) acquire two office
building projects in Jakarta's central business district.
In relation to the new bond issuance, proceeds will be used for
land acquisition, property development and the refinancing of
existing bank loans.
Moody's believes the debt funding will provide Alam Sutera greater
financial flexibility and support its plans for long term growth.
Moreover, if the refinancing is successful, the company's debt
maturity profile will be extended, and encumbrances on its assets
is expected to substantially reduce.
However, the bond issuance will have a negative effect on Alam
Sutera's credit metrics in FY2013, although they should still be
appropriate for the company's B1 rating. Specifically, its
EBITDA/interest is expected to decline from FY2012 (9.3x), as a
result of higher debt servicing. Its debt/EBITDA may also slightly
increase if the company is unable to meet its sales targets.
The stable outlook reflects Moody's expectation that Alam Sutera's
ratings will continue to be supported by its low-cost land bank in
Greater Jakarta, as well as the company's financial discipline
even as it pursues growth.
Further upward rating pressures are unlikely over the medium term,
but could emerge if Alam Sutera is able to successfully execute
its expansion strategy and produce sustained improvement in its
credit metrics. Credit metrics that will support an upgrade
include adjusted EBITDA/Interest coverage above 5.0x, adjusted
leverage below 30%, adjusted Debt/EBITDA below 1.5x and consistent
positive free cash flows (FCF) on a sustained basis.
On the other hand, downward pressure could emerge if Alam Sutera's
financial and liquidity profile weaken owing to: (1) the company
failing to execute its business plans, (2) a deterioration in the
property market, leading to protracted weakness in its operations
and credit profile, and (3) a material depreciation in the rupiah,
which may increase the company's debt-servicing obligations.
Moody's considers adjusted EBITDA/Interest coverage of less than
3.0x, adjusted leverage of above 40%, adjusted Debt/EBITDA above
2.5x and consistent negative FCF on a sustained basis, as
indications that a downgrade may be necessary.
The principal methodology used in these ratings was the Global
Homebuilding Industry Methodology published in March 2009.
Established on November 3, 1993, Alam Sutera is an integrated
property developer in Indonesia with a sizeable land bank of 2,074
ha (gross area) as of end-2012. The company focuses on the sale of
land lots in accordance with township planning requirements, as
well as property development in residential, commercial and
industrial segments in Indonesia. Alam Sutera -- which was
formerly known as PT Adhihutama Manunggal -- was founded by the
family of The Ning King -- The company listed on the Indonesian
Stock Exchange on December 18, 2007.
ALAM SUTERA: S&P Affirms 'B' CCR; Outlook Stable
------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B' long-term corporate credit rating on PT Alam Sutera Realty
Tbk. The outlook is stable. S&P also affirmed its 'axBB-' long-
term ASEAN regional scale rating on the Indonesia-based property
developer. At the same time, S&P affirmed the 'B' issue rating on
all of the company's outstanding senior unsecured notes.
S&P also assigned its 'B' issue rating to a proposed issue of
senior unsecured notes by Alam Synergy Pte Ltd., a special purpose
vehicle that Alam Sutera owns. Alam Sutera and some of its
subsidiaries will guarantee these notes.
"We affirmed the rating because we believe Alam Sutera can
maintain its improved operating performance over the next 12
months despite its material single-project concentration," said
Standard & Poor's credit analyst Kah Ling Chan. In our view, the
company has sufficient room to increase debt without undermining
its "aggressive" financial risk profile. We view the business
risk profile as "vulnerable."
S&P expects that Alam Sutera will use part of the proceeds from
the proposed notes to refinance certain domestic loans, with the
balance for replenishing its land bank and working capital
purposes.
In S&P's base-case scenario, it forecasts Alam Sutera's property
presales to increase 15% to about Indonesian rupiah
(IDR) 4.2 trillion in 2013, from S&P's estimate of
IDR3.6 trillion-IDR3.7 trillion in 2012. However, the company's
property sales are heavily concentrated toward its Alam Sutera
township. Based on S&P's expectation of healthy growth in
property sales and good margins, it anticipates that Alam Sutera's
ratio of debt to capitalization will remain 38%-42% in 2013-2014,
with the ratio of debt to EBITDA at less than 2x. These ratios
are low, and give the company room to increase debt at the current
rating level.
S&P views Alam Sutera's debt appetite as aggressive. The company
raised US$150 million in March 2012 to fund the acquisition of
land and assets, and is now proposing to raise more debt.
The affirmed rating on Alam Sutera also reflects the company's low
recurring income. Alam Sutera's large, low-cost, and well-located
land bank, and the company's strong growth potential underpin the
rating.
Alam Sutera's liquidity is "adequate," as defined in S&P's
criteria. S&P estimates that the company's liquidity sources will
be more than 1.3x its uses in the next 12 months.
"The stable outlook reflects our expectation that Alam Sutera will
expand in its established market through new property projects
over the next 12 months," said Ms. Chan. "We anticipate that the
company's timely delivery of projects and sales will generate
steady cash flows."
"We may lower the rating if Alam Sutera makes larger debt-funded
acquisitions than we expect or deviates from its strategy and core
business of property development. We may also downgrade the
company if its revenues and profitability slip over the next 12
months. This could occur if a significant slowdown in Indonesia's
economy or a sharp increase in interest rates reduces the demand
for properties. A downgrade trigger could be a ratio of debt to
EBITDA above 4.5x on a sustained basis and EBITDA interest cover
falling below 1.5x," S&P said.
Potential upside to the rating is limited, in S&P's view. S&P may
upgrade Alam Sutera if the company increases its operating scale
and diversifies its cash flow sources to include a larger number
of projects and property leasing.
=========
J A P A N
=========
SHARP CORP: Says Second Qualcomm Investment Delayed
---------------------------------------------------
Naoko Fujimura & Grace Huang at Bloomberg News report that Sharp
Corp. said a second investment of about JPY5 billion from Qualcomm
Inc. has been delayed because the companies failed to meet terms
of their original agreement.
Sharp couldn't develop production technology for its Micro Electro
Mechanical System displays, so the payment scheduled to be made
March 29 will be delayed, spokeswoman Miyuki Nakayama told
Bloomberg. Sharp won't have a liquidity problem because of the
postponement, and the companies now are working toward a
June 30 deadline, she said.
Bloomberg says Sharp is selling assets and has formed capital
alliances with Qualcomm Inc. and Samsung Electronics Co. to raise
funds after posting a 376 billion-yen net loss in the year ended
March 2012 amid slumping demand for its televisions and display
panels.
According to Bloomberg, Qualcomm, the largest seller of
semiconductors for mobile phones, agreed in December to invest
JPY9.9 billion in Osaka-based Sharp, which is trying to restore
its balance sheet amid record losses and dwindling demand for its
TVs. The investment also is conditional on developing a plan for
mass producing the displays and Sharp's business becoming
profitable, Ms. Nakayama told Bloomberg.
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).
====================
S O U T H K O R E A
====================
LOTTE TOUR: Files for Court Receivership
----------------------------------------
Yonhap News reports that Lotte Tour has filed for court
receivership as part of its efforts to get back on its feet
following the default of a company in which Lotte has a stake.
The news agency relates that Lotte Tour said in a regulatory
filing that the Seoul Central District Court is scheduled to
decide whether to approve its request, though it did not give any
specific time frame.
Lotte Tour Co. is a South Korean tour operator.
====================
N E W Z E A L A N D
====================
HAMPTON RD DAIRY FARM: Battles With Receivership
------------------------------------------------
Tvnz reports that one of Okato's oldest farming families is in a
standoff with receivers to keep the land they have lived on for
seven generations.
Kelvin Gray was served notice that his 300-acre (120-hectare)
Hampton Rd dairy farm was in receivership on March 6 and he has
been told he has until March 24 to leave, according to Tvnz
reports.
The report notes that Mr. Graytold the Taranaki Daily News that
Rabobank had called in loans and fees totaling $5.6 million. The
report relates that some of that was debt on the farm and a
further $2 million stemmed from his involvement with the failed
2005 Taranaki Milk Products factory.
Although Mr. Gray acknowledged he owed the money, and his family
had been working 80-hour weeks for years to service the debt, he
has refused to leave his "ancestral lands," the report discloses.
The report says that just minutes before the receivership notice
was served by Auckland-based Dennis Wood, of Act Three Insolvency
Services, police visited the farm to tell him what was about to
take place and asked him and his son, Andrew, to hand over their
firearms because the situation had the potential to "turn sour".
Rural debt mediator Jannette Walker predicted a long and
acrimonious battle, the report says.
Mr. Gray, the report relays, said a Rabobank representative had
told him the bank would not negotiate a deal that involved any
"parking" of debt because they "had 200 other farms in the same
position and did not want to set a precedent". Mr. Gray said he
had secured $4.2 million in alternative financing to pay Rabobank
when he was told he owed $4.184 million, the report notes.
However, two days after receiving this demand on February 13, Mr.
Gray said he received another lawyer's letter saying the earlier
figure was a mistake and the Grays had one week to pay $5.6
million, the report relates. They claim this was later extended
to three weeks but the receivership notice was served two days
before that deadline, the report adds.
MAINZEAL PROPERTY: Unsecured Claims Reach NZ$93.5 Million
---------------------------------------------------------
Marta Steeman at stuff.co.nz reports that the liquidators of
Mainzeal Property and Construction estimate the failed
construction firm faces at least NZ$93.5 million in claims from
unsecured creditors.
The liquidators said in their first report released on March 15
that the amount from secured creditors is not known yet,
stuff.co.nz relates.
According to stuff.co.nz, total unsecured claims across four
trading companies in the Mainzeal group of companies in
liquidation amount to NZ$117.6 million so far while the total
value of their assets not subject to security or charges is
recorded at NZ$123.6 million.
However, the liquidators, Andrew Bethell, Brian Mayo-Smith and
Stephen Tubbs of BDO, said they were not confident of the accuracy
of the information supplied in the companies' accounts,
stuff.co.nz relays.
stuff.co.nz relates that the liquidators could not say yet how
much, if anything, preferential and unsecured creditors would be
paid. They said while the information provided from the
companies' records provided some insight, "we have concerns about
the accuracy of this information and believe that many balances
warrant further investigation," the report relays.
stuff.co.nz notes that the statement of affairs did not include
legal claims, performance bonds and other contingent creditors.
It also did not include allowances for such costs as the cost of
selling assets, receivers' fees and legal fees.
According to the report, the liquidators said while 12 companies
in the group are in liquidation, only four were trading. Three of
the trading companies were also in receivership and under the
control of receivers from PricewaterhouseCoopers.
stuff.co.nz adds the receivers were expected to hand "residual
assets" to the liquidators when their appointer was repaid in
full.
One of the lenders with security over those assets was BNZ owed
NZ$300,000 but it was also owed an unknown amount on a performance
bond. The amount owed to other secured creditors of MPCL was
unknown at this stage, stuff.co.nz reports.
Claims by unsecured creditors of MPCL amounted to NZ$93.5 million
so far, the report discloses.
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.
On Feb. 28, 2013, BDO's Andrew Bethell and Brian Mayo-Smith were
appointed liquidators to those three companies in receivership and
nine others in the group that were not in receivership.
The companies now under the control of the liquidators are
Mainzeal Group, Mainzeal Property and Construction, Mainzeal
Living, 200 Vic, Building Futures Group Holding, Building Futures
Group, Mainzeal Residential, Mainzeal Construction, Mainzeal,
Mainzeal Construction SI, MPC NZ and RGRE.
=====================
P H I L I P P I N E S
=====================
LA CONSOLACION RURAL BANK: Placed Under PDIC Receivership
---------------------------------------------------------
The Monetary Board placed the La Consolacion Rural Bank (Laguna),
Inc. under the receivership of the Philippine Deposit Insurance
Corporation (PDIC) by virtue of MB Resolution No. 417.A dated
March 15, 2013. As Receiver, PDIC took over the bank on
March 15, 2013.
PDIC said that upon takeover, all bank records shall be gathered,
verified and validated. The state deposit insurer assured
depositors that all valid deposits shall be paid up to the maximum
deposit insurance coverage of PHP500,000.
PDIC also announced that it will conduct a Depositors-Borrowers
Forum on March 19, 2013 to inform depositors of the requirements
and procedures for filing deposit insurance claims. Claim forms
will be distributed during the Forum. The schedule and venue of
the Forum will be posted in the bank premises and in the PDIC
website, www.pdic.gov.ph.
Depositors may update their addresses with the PDIC
representatives at the bank premises or during the Forum using the
Mailing Address Update Forms to be furnished by PDIC
representatives. Duly accomplished Mailing Address Update Forms
should be submitted to PDIC representatives accompanied by a
photo-bearing ID of the depositor with signature. The signature
must tally with bank records. Depositors may update their
addresses until March 19, 2013.
Depositors with valid deposit accounts with balances of PHP15,000
and below, who have no outstanding obligations with the La
Consolacion Rural Bank and have complete and updated addresses
with the bank, need not file deposit insurance claims. PDIC
targets to start mailing payments to these depositors to their
addresses recorded in the bank by the third week of March.
Depositors whose accounts have balances of more than PHP15,000 and
all those who have outstanding obligations with La Consolacion
Rural Bank should file their deposit insurance claims. The PDIC
targets to start claims settlement operations for these accounts
by the fourth week of March. The schedule of the claims settlement
operations will be announced through notices to be posted in the
bank premises and other public places as well as through the PDIC
website, www.pdic.gov.ph.
La Consolacion Rural Bank is a single-unit bank with Head Office
located at the G/F CCP Bldg., National Highway, Landayan, San
Pedro, Laguna. Latest available records show that as of
December 31, 2012, La Consolacion Rural Bank had 279 accounts with
total deposit liabilities of PHP34.94 million. According to the
latest Bank Information Sheet (BIS) as of December 31, 2012 filed
by the La Consolacion Rural Bank with the PDIC, the bank is
majority-owned by Ma. Theresa G. Amoloza (20%), Thelma G. De Leon
(20%), Lois Anne M. Perez (15%) and Ma. Lailani M. Abalos (13%).
Its Chairman is Thelma G. De Leon and its President is Ma. Theresa
G. Amoloza.
=================
S I N G A P O R E
=================
A-TECH MARINE: Court to Hear Wind-Up Petition April 5
-----------------------------------------------------
A petition to wind up the operations of A-Tech Marine Services Pte
Ltd will be heard before the High Court of Singapore on
April 5, 2013, at 10:00 a.m.
The Comptroller of Income Tax filed the petition against the
company on March 8, 2013.
The Petitioner's solicitors are:
Infinitus Law Corporation
77 Robinson Road
#16-00, Robinson 77
Singapore 068896
ASCENTIAL SOFTWARE: Creditors' Proofs of Debt Due April 15
----------------------------------------------------------
Creditors of Ascential Software Singapore Pte Ltd which is in
members' voluntary liquidation are required to file their proofs
of debt by April 15, 2013, to be included in the company's
dividend distribution.
The company's liquidators are:
Andrew Grimmett
Lim Loo Khoon
6 Shenton Way Tower Two #32-00
Singapore 068809
ASSA ABLOY: Creditors' Proofs of Debt Due April 15
--------------------------------------------------
Creditors of Assa Abloy South Asia Pte Ltd which is in members'
voluntary liquidation are required to file their proofs of debt by
April 15, 2013, to be included in the company's dividend
distribution.
The company's liquidator is:
Ng Kim Yeow
c/o 10 Arumugam Road
#06-00 Lion Building A
Singapore 409957
ENSAFE OFFSHORE: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Singapore entered an order on March 1, 2013, to
wind up Ensafe Offshore Marine Private Limited operations.
The Comptroller of Goods and Services Tax and The Comptroller of
Income Tax filed the petition against the company.
The company's liquidator is:
Aw Eng Hai
c/o Foo Kon Tan Grant Thornton LLP
47 Hill Street, #05-01
Singapore Chinese Chamber Of Commerce
& Industry Building
Singapore 179365
HQO DESIGN: Creditors Get 6.87604% Recovery on Claims
-----------------------------------------------------
HQO Design Pte Ltd declared the first and final dividend on
March 8, 2013.
The company paid 6.87604% to the received claims.
The company's liquidator is:
The Official Receiver
The URA Centre East Wing
45 Maxwell Road #06-11
Singapore 069118
===============
X X X X X X X X
===============
* BOND PRICING: For the Week March 11 to March 15, 2013
-------------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
COM BK AUSTRALIA 1.50 04/19/22 AUD 72.75
MIDWEST VANADIUM 11.50 02/15/18 USD 61.41
MIDWEST VANADIUM 11.50 02/15/18 USD 61.00
NEW S WALES TREA 0.50 09/14/22 AUD 67.95
NEW S WALES TREA 0.50 10/07/22 AUD 67.74
NEW S WALES TREA 0.50 10/28/22 AUD 67.56
NEW S WALES TREA 0.50 11/18/22 AUD 67.35
NEW S WALES TREA 0.50 12/16/22 AUD 68.49
NEW S WALES TREA 0.50 02/02/23 AUD 68.05
NEW S WALES TREA 0.50 03/30/23 AUD 67.55
TREAS CORP VICT 0.50 08/25/22 AUD 70.56
TREAS CORP VICT 0.50 03/03/23 AUD 68.89
TREAS CORP VICT 0.50 11/12/30 AUD 47.62
CHINA
-----
CHINA GOVT BOND 4.86 08/10/14 CNY 102.52
CHINA GOVT BOND 1.64 12/15/33 CNY 67.95
INDIA
-----
3I INFOTECH LTD 5.00 04/26/17 USD 34.85
CORE PROJECTS 7.00 05/07/15 USD 50.34
DR REDDY'S LABOR 9.25 03/24/14 INR 5.00
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 68.90
PRAKASH IND LTD 5.25 04/30/15 USD 69.34
PUNJAB INFRA DB 0.40 10/15/24 INR 31.83
PUNJAB INFRA DB 0.40 10/15/25 INR 28.94
PUNJAB INFRA DB 0.40 10/15/26 INR 26.34
PUNJAB INFRA DB 0.40 10/15/27 INR 24.00
PUNJAB INFRA DB 0.40 10/15/28 INR 21.91
PUNJAB INFRA DB 0.40 10/15/29 INR 20.06
PUNJAB INFRA DB 0.40 10/15/30 INR 18.39
PUNJAB INFRA DB 0.40 10/15/31 INR 16.90
PUNJAB INFRA DB 0.40 10/15/32 INR 15.55
PUNJAB INFRA DB 0.40 10/15/33 INR 14.34
PYRAMID SAIMIRA 1.75 07/04/12 USD 1.00
REI AGRO 5.50 11/13/14 USD 70.37
REI AGRO 5.50 11/13/14 USD 70.37
RELIGARE FINVEST 11.75 02/08/15 INR 4.35
SHIV-VANI OIL 5.00 08/17/15 USD 39.23
SREI INFRA FIN 8.90 03/22/22 INR 28.48
SUZLON ENERGY LT 7.50 10/11/12 USD 65.13
SUZLON ENERGY LT 5.00 04/13/16 USD 50.78
JAPAN
-----
EBARA CORP 1.30 09/30/13 JPY 99.97
ELPIDA MEMORY 2.03 03/22/12 JPY 9.13
ELPIDA MEMORY 2.10 11/29/12 JPY 9.13
ELPIDA MEMORY 2.29 12/07/12 JPY 9.13
JPN EXP HLD/DEBT 0.50 09/17/38 JPY 69.33
JPN EXP HLD/DEBT 0.50 03/18/39 JPY 69.04
KADOKAWA HLDGS 1.00 12/18/14 JPY 113.87
SHARP CORP 2.07 03/19/19 JPY 73.75
SHARP CORP 1.60 09/13/19 JPY 73.00
TOKYO ELEC POWER 1.96 07/29/30 JPY 73.13
TOKYO ELEC POWER 2.37 05/28/40 JPY 69.25
MALAYSIA
--------
AMAN SUKUK 4.25 03/08/28 MYR 4.21
DUTALAND BHD 7.00 04/11/13 MYR 1.02
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 50.36
BAKRIE TELECOM 11.50 05/07/15 USD 47.00
BLD INVESTMENT 8.63 03/23/15 USD 68.50
BLUE OCEAN 11.00 06/28/12 USD 36.13
BLUE OCEAN 11.00 06/28/12 USD 36.13
CAPITAMALLS ASIA 2.15 01/21/14 SGD 99.91
CAPITAMALLS ASIA 3.80 01/12/22 SGD 101.01
DAVOMAS INTL FIN 11.00 12/08/14 USD 29.38
DAVOMAS INTL FIN 11.00 12/08/14 USD 29.38
F&N TREASURY PTE 2.48 03/28/16 SGD 100.58
INDO INFRASTRUCT 2.00 07/30/49 USD 2.00
SOUTH KOREA
-----------
CHEJU REGION DEV 3.00 12/29/34 KRW 69.05
EXP-IMP BK KOREA 0.50 08/10/16 BRL 74.81
EXP-IMP BK KOREA 0.50 09/28/16 BRL 73.94
EXP-IMP BK KOREA 0.50 10/27/16 BRL 73.41
EXP-IMP BK KOREA 0.50 11/28/16 BRL 72.84
EXP-IMP BK KOREA 0.50 12/22/16 BRL 72.66
EXP-IMP BK KOREA 0.50 10/23/17 TRY 70.76
EXP-IMP BK KOREA 0.50 11/21/17 BRL 66.89
EXP-IMP BK KOREA 0.50 12/22/17 BRL 66.44
EXP-IMP BK KOREA 0.50 12/22/17 TRY 69.70
SINBO 14TH ABS 8.00 02/02/15 KRW 30.17
SINBO 3RD ABS 9.00 07/27/15 KRW 30.29
SRI LANKA
---------
SRI LANKA GOVT 6.20 08/01/20 LKR 73.31
SRI LANKA GOVT 7.00 10/01/23 LKR 67.82
SRI LANKA GOVT 5.35 03/01/26 LKR 56.26
SRI LANKA GOVT 9.00 07/01/28 LKR 75.00
SRI LANKA GOVT 8.00 01/01/32 LKR 67.77
SRI LANKA GOVT 9.00 01/10/32 LKR 73.71
THAILAND
--------
BANGKOK LAND 4.50 10/13/03 USD 6.38
G STEEL 3.00 10/04/15 USD 8.13
MDX PUBLIC CO 4.75 09/17/03 USD 4.00
*********
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
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or solicitation to buy or sell any security of any kind. It is
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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
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Don't be fooled. Assets, for example, reported at historical
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sheet for liabilities that may never materialize. The prices at
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Ivy B. Magdadaro, Julie Anne L. Toledo,
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
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*** End of Transmission ***