/raid1/www/Hosts/bankrupt/TCRAP_Public/130404.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Thursday, April 4, 2013, Vol. 16, No. 66
Headlines
A U S T R A L I A
FOSTIDE PTY: Appoints BRI Ferrier as Administrators
KENTOR MINERALS: Taps Ferrier Hodgson as Voluntary Administrators
LM INVESTMENT: Troubled Fund Faces Liquidation Threat
LOVE ENERGY: In Administration, Blames Government Policy
NEPEAN HOSPITALS: In Administration; Aged-Care Centers on Sale
* Moody's Sees Rising Rate of Mortgage Arrears in Australia
C H I N A
SUNTECH POWER: Customers Inability to Pay Cues Unit's Bankruptcy
YINGDE GASES: Fitch Assigns 'BB' Issuer Default Rating
YINGDE GASES: Moody's Assigns Ba2 CFR; Outlook is Stable
H O N G K O N G
ASIA PACIFIC: Creditors' Proofs of Debt Due April 22
BEKAERT INDUSTRIAL: Members' Final Meeting Set for April 23
BRISWELL DEVELOPMENT: Creditors' Proofs of Debt Due May 3
CAMBRIDGE UNIVERSITY: Creditors' Proofs of Debt Due April 22
CENTURY MUTUAL: Annual Meetings Set for April 8
CHINA SCI-TECH: Members' Final General Meeting Set for April 26
CHINA SCI-TECH CORP: Final General Meeting Set for April 26
CHINA SCI-TECH INDUSTRIAL: Final General Meeting Set for April 26
CHINA SCI-TECH INFORMATION: Final General Meeting Set for Apr. 26
CHINA SCI-TECH PROPERTIES: Final General Meeting Set for April 26
CLARLY LIMITED: Philip Brendan Gilligan Steps Down as Liquidator
CMR LIFE: Kwan and Liu Step Down as Liquidators
ESAMSUNG GREATER: Final General Meeting Set for April 23
FINEAST TRADING: Chan Sek Kwan Steps Down as Liquidator
FLIUTSHIRE PROPERTIES: Members' Final Meeting Set for April 23
FLYING UNICORN: Final Meeting Set for April 23
HK ICE: Members' Final Meeting Set for April 24
HK TENNIS: Commences Wind-Up Proceedings
HOI KA: Members' Final Meeting Set for April 23
HUTCHISON 3G: Creditors' Proofs of Debt Due April 12
IMPRIMIS HOLDINGS: Ling Wai Ming Steps Down as Liquidator
INFO SOURCE: Chow Chun Man Appointed as Liquidator
INTERCARGO HK: Members' Final Meeting Set for April 24
INTER OPEN: Chan Sek Kwan Steps Down as Liquidator
JERNEH INVESTMENT: Sung Mi Yin Steps Down as Liquidator
I N D I A
AIR INDIA: May Face Fresh Trouble Over Staff's Delayed Wages
BALAJI OVERSEAS: ICRA Assigns 'B' Rating to INR5.88cr Loan
CASTALL TECHNOLOGIES: ICRA Assigns 'BB-' Rating to INR35.8cr Loan
DHARESHWAR COTTON: ICRA Reaffirms 'B' Rating on INR8.90cr Loans
HOTEL RAJ: ICRA Reaffirms 'BB' Ratings to INR16.15cr Loans
KINGFISHER AIRLINES: State Bank Seeks to Seize Mallya's Villa
MAS GMR: ICRA Lowers Rating on INR232cr Term Loan to 'D'
MIMANI AGRO: ICRA Reaffirms 'B+' Ratings on INR10.49cr Loans
RADIANT PLASTRUDERS: ICRA Assigns 'B+' Ratings to INR5.5cr Loans
RASHI STEEL: ICRA Assigns 'BB' Rating to INR82cr Term Loan
SATYAWATI SUBODH: ICRA Rates INR12.45cr Term Loans at 'B-'
SHASHWAT CABLES: ICRA Assigns 'B-' Rating to INR4cr Loan
SHIVGANGA DRILLERS: ICRA Assigns 'BB-' Ratings to INR35.5cr Loans
SURYAVANSHI SPINNING: ICRA Cuts Ratings on INR75.55cr Loans to BB
UNIQUE STRUCTURES: ICRA Cuts Rating on INR26.5cr Loan to 'BB+'
J A P A N
EACCESS LTD: S&P Keeps 'BB+' CCR on CreditWatch Developing
SOFTBANK: S&P Likely to Cut Rating to 'BB+' Upon Sprint Purchase
N E W Z E A L A N D
MAINZEAL PROPERTY: Creditors Face "Substantial Shortfall"
S I N G A P O R E
AKAI SALES: Members' Meeting Set for April 18
AURORA AIRLEASING: Creditors' Proofs of Debt Due April 29
AURORA AIRLEASING B: Creditors' Proofs of Debt Due April 29
AURORA AIRLEASING C: Creditors' Proofs of Debt Due April 29
AURORA AIRLEASING D: Creditors' Proofs of Debt Due April 29
- - - - -
=================
A U S T R A L I A
=================
FOSTIDE PTY: Appoints BRI Ferrier as Administrators
---------------------------------------------------
dissolve.com.au reports that Fostide Pty Ltd has gone into
voluntary administration. The company directors have appointed
BRI Ferrier as administrator while the business is restructured,
the report says.
Employing 400 staff in its Events and Queenspark chains, Fostide
has closed 25 unprofitable stores and relocated most of the store
staff, according to dissolve.com.au. According to the report, the
remaining 55 stores will be operated under licence from the
voluntary administrators by Queenspark Australia, which is not
affected by the voluntary administration.
dissolve.com.au notes that Fostide is another victim of the
downturn in discretionary spending and increased competition from
global online and bricks and mortar retailers.
Fostide Pty Ltd is a fashion retailer for women.
KENTOR MINERALS: Taps Ferrier Hodgson as Voluntary Administrators
-----------------------------------------------------------------
Ferrier Hodgson partners have been appointed Voluntary
Administrators of a mid-tier gold mining company which has
advanced projects in Australia.
The appointment is over Kentor Minerals (WA) Pty Ltd, a 100%-owned
subsidiary of ASX-listed Kentor Gold. Kentor Gold shares went into
a trading halt on March 27, 2013, when arrangements for a pending
finance facility fell through.
Ferrier Hodgson partners Tim Michael -- tim.michael@fh.com.au --
and Darren Weaver -- darren.weaver@fh.com.au -- were appointed
Voluntary Administrators of the Brisbane-based subsidiary, Kentor
Minerals (WA) Pty Ltd, on March 28, 2013.
The voluntary administration applies to KM (WA) Pty Ltd and does
not apply to Kentor Gold or the subsidiary companies that hold the
Andash or Jervois projects.
Administrator, Tim Michael, said he would be looking at ways of
stabilising the business while the business seeks additional
funding.
"This appointment has been made to give the board time to consider
and evaluate additional finance opportunities,"
Mr. Michael said. "In the meantime, the mine is continuing to
operate whilst we conduct an urgent review of the company's
finances."
LM INVESTMENT: Troubled Fund Faces Liquidation Threat
-----------------------------------------------------
Jenny Rogers at goldcoast.com.au reports that administrators on
Tuesday hinted at the prospect LM Investment Management could be
facing liquidation due to the size and complexity of the
investigation.
Administrators at FTI Consulting also intend to apply to be
appointed receivers over the assets of LM's Managed Performance
Fund amid concerns over spending on the company's flagship
$1 billion Maddison Estate at Pimpama, according to the report.
This was after the Australian Securities & Investment Commission
revealed it had concerns over the regulatory status of the Managed
Performance Fund which, it said, was operating as an unregulated
fund outside the Corporations Act, goldcoast.com.au says.
The report says that at the first meeting of creditors, at
Broadbeach, FTI Consulting's John Park and Ginette Muller said
that an 11-member creditors committee had been appointed,
comprising of three Australian and also eight overseas parties, to
oversee the next stage of the process.
According to goldcoast.com.au, Mr. Park said while a deed of
company arrangement was the desired outcome, it was rare for this
to occur with such a large and complex administration.
"There has been no proposition for a DOCA at this time, but we are
hopeful of one coming through . . . we can't restrict it from
being a possibility albeit it is a remote one," the report quotes
Mr. Park as saying. "But it is true that very rarely does a DOCA
come out the other side on such a large and complex
administration."
goldcoast.com.au relates that the administrators said they would
apply to the Queensland Supreme Court for an extension from 30
days to 90 days to conduct their review to the complexity of the
task.
They must unravel the workings of eight funds for which LM
Investment Management is the responsible entity, the report notes.
FTI said the LM Group had about $740 million in funds ranging from
cash, to foreign currency, property, commercial loans secured by
mortgages, and listed shares under its umbrella.
According to the report, the company previously had claimed to
have what was $3 billion under management.
It said based on details supplied by LM but not yet verified, they
were aware of company assets of just $7.8 million, with $5.2
million of investments in overseas entities and Cavill Avenue
property.
FTI said company records reveal that there are liabilities of just
$1.07 million to creditors, $9.9 million to advisers and there is
$13.7 million in administration management fees, relays
goldcoast.com.au.
The report relates that the administrators revealed that the
Managed Performance Fund has a $249 million exposure to the
Maddison Estate and a $17 million loan to LM boss Peter Drake.
Mr. Park said that a valuer had been appointed to determine an
updated valuation for Maddison Estate amid concerns over the end
value of the development, according to goldcoast.com.au.
FTI's applications to have their administration extended and to be
appointed receiver to the property fund will be heard in the
Queensland Supreme Court on April 12, the report says.
LM Investment Management was founded in 1993 by expat
New Zealander Peter Drake and claims to have assets worth more
than AUD3 billion under management.
New Zealand Herald reported that voluntary administrators have
been appointed to LM Investment Management, a beleaguered
Australian firm that controlled a frozen mortage fund which
New Zealanders had more than NZ$100 million tied up in. LM
directors have appointed John Park and Ginette Muller of FTI
Consulting as voluntary administrators, blaming the move on
liquidity problems caused by a smear campaign, the NZ Herald
related.
LOVE ENERGY: In Administration, Blames Government Policy
--------------------------------------------------------
adelaidenow.com.au reports that Hindmarsh-based solar retailer
Love Energy has collapsed, claiming that cheap imports and
"kneejerk" Government policy led to its failure.
Love Energy sold its outstanding order book to an unnamed company
to ensure the deposits of all 20 installations and all warranties
will be honoured, according to adelaidenow.com.au.
The report relates that its 15 staff were last week told not to
come in after Easter and callers to the company's 1300 number were
informed by a recorded message the company was experiencing
"technical difficulties" and would return calls at a later date.
Owner and director Richard Mintz confirmed he was putting the
company into administration, saying the industry had been stung by
constant regulatory changes -- including a steady drop in feed-in
tariffs that made the investment attractive -- and reliance on
cheap Chinese panels, adelaidenow.com.au notes.
Mr. Mintz would not disclose how much was owed by the company, or
how much he had lost, the report adds.
NEPEAN HOSPITALS: In Administration; Aged-Care Centers on Sale
--------------------------------------------------------------
Patrick Stafford at SmartCompany reports that two aged care
centres are up for sale after parent company Nepean Hospitals was
placed in administration, months after the company was given a
sanction relating to non-compliance.
Nepean Hospitals was placed in administration in February, with
Stephen Dixon -- stephen.dixon@au.gt.com -- and Andrew Hewitt --
andrew.hewitt@au.gt.com -- of Grant Thornton appointed, notes
SmartCompany.
While the business was placed in administration in February, it
was handed a sanction by the federal Department of Health and
Ageing over non-compliance issues, SmartCompany relays.
According to the report, the business was also cited to have
failed in its responsibility to comply with a rule which mandates
providing care recipients with information in relation to bonds,
which refers to the formation of a financial agreement with a new
resident.
A department spokesperson told SmartCompany that, while not
referring specifically to the administration of Nepean Hospitals,
a sanction usually prohibits a facility from accepting any
government compensation for new residents.
On the Nepean Hospitals sanction notice, it says the company is
prohibited from charging new accommodation bonds, SmartCompany
relates.
SmartCompany notes that the sanction was imposed on October 12,
2012, and was set to last until June 11, 2013.
Nepean Hospitals operates two aged care centres: one 46-bed
operation in Bendigo, Victoria, and another 125-bed facility in
Mount Martha, Victoria.
* Moody's Sees Rising Rate of Mortgage Arrears in Australia
-----------------------------------------------------------
Moody's Investors Service says Australian prime mortgage arrears
worsened in January compared to the previous month.
As published in Moody's just-released Global Structured Finance
Collateral Performance Review, Moody's says arrears in excess of
30 days in the Australian prime residential mortgage market were
1.52% in January, up from 1.44% in December but down from 1.71%
the same period one year earlier.
Thirty-day-plus arrears in the Australian non-conforming market
were higher at 9.21% compared with 7.39% in December and 8.68% in
January 2012.
Australian Prime 60-day-plus arrears, at 0.92%, compare favorably
to some of the other countries covered in the Global Collateral
Performance Report. The Netherlands (0.76%) and Japan (0.24%) are
the only countries reporting a lower 60-plus arrears rate.
"Looking ahead, we expect the performance trends witnessed in 2012
to continue over 2013 with stable delinquencies, underpinned by
expected GDP growth of 2.5% to 3.5%, a continuation of the low
interest rate environment, and a steady unemployment rate of 4.5%
to 5.5%" says Jennifer Wu, a Moody's Vice President and Senior
Credit Officer.
About Moody's Global Collateral Performance Report
Moody's Global Collateral Performance Report is updated monthly
and covers the collateral performance of 41 structured finance
sectors located globally. In the US, the performance metrics of 12
asset classes are covered, in Europe: 19, in Japan: 7, in
Australia: 2, and in Canada: 1.
The report features typical aggregate performance metrics, such as
delinquencies and losses, as well as sector-specific metrics that
include residential and commercial property prices, loans in
special servicing, refinancing profiles, average WARF levels,
senior OC levels, payment rates, and excess spread. The underlying
data is also included. The metrics are accompanied by sector
commentary and outlooks, and projected losses by vintage where
applicable.
Australian data focuses on:
- Australian Prime RMBS
- Australian Non-conforming RMBS
- Australian Home Prices
=========
C H I N A
=========
SUNTECH POWER: Customers Inability to Pay Cues Unit's Bankruptcy
----------------------------------------------------------------
Linda Sandler at Bloomberg News reports that Suntech Power
Holdings Co., forced to put its Chinese solar unit into bankruptcy
last month, began that slide into insolvency in 2009 when
customers linked to the founder couldn't pay their bills and the
company booked the sales as revenue anyway, regulatory filings
show.
Seven buyers backed by an investment firm funded by Suntech and
its founder, Shi Zhengrong, accounted for 29% of Suntech's
uncollected bills as 2009 ended, Bloomberg News relates citing a
correspondence between the solar company and the U.S. Securities
and Exchange Commission. Those customers hadn't yet received
enough money to proceed with their projects and Suntech, once the
world's largest solar-panel maker gave them more time to pay, the
letters obtained by Bloomberg News, showed.
According to the report, the SEC correspondence provides clues to
Suntech's prospects and a road map to business practices that left
the company vulnerable to a EUR560 million ($720 million) fraud
and a $541 million bond default. Bloomberg News notes that anyone
with Internet access could have learned that Suntech was booking
revenue from sales to related companies with unbuilt projects in
the fledgling solar industry, while also guaranteeing loans to
those related companies. It relied on a former sales agent to
secure one guarantee with bonds it never saw.
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 Holdings Co., Ltd., announced that on March 18,
2013, a group of eight Chinese banks filed a petition for
insolvency and restructuring of its Chinese subsidiary Wuxi
Suntech Power Holdings Co., Ltd., in the Wuxi Municipal
Intermediate People's Court in Jiangsu Province, China. Wuxi
Suntech notified the Court that it will not file an objection
against the petition.
Wuxi Suntech is the Company's principal operating subsidiary in
China engaged in the manufacture of photovoltaic (PV) cells and PV
modules. The Company has additional cell and module production
facilities at wholly owned or partially owned subsidiaries in
Wuxi, Shanghai and Luoyang and, in the event insolvency and
restructuring of Wuxi Suntech is approved by the Court, the
Company said it intends to continue production of solar products
to meet customer orders. In addition, management said it will
work with any Court-appointed administrators to ensure all of
Suntech's product warranty obligations are met.
YINGDE GASES: Fitch Assigns 'BB' Issuer Default Rating
------------------------------------------------------
Fitch Ratings has published China-based Yingde Gases Group Company
Limited's Long-Term Issuer Default Rating (IDR) of 'BB' with
Stable Outlook and senior unsecured rating of 'BB'. Fitch has also
assigned Yingde's proposed senior unsecured USD notes an expected
'BB(EXP)' rating. Yingde is China's largest onsite industrial gas
supplier to steel and chemical plants.
The notes will be issued by Yingde Gases Investment Limited and
unconditionally and irrevocably guaranteed by Yingde. The final
rating on the proposed notes is contingent upon the receipt of
documents conforming to information already received.
The notes are rated at the same level as Yingde's Issuer Default
Rating of 'BB', as they represent direct, unconditional, unsecured
and unsubordinated obligations of the company.
Of the net proceeds from the issue, USD150 million will be used
for capital expenditure and general corporate purposes and the
remainder to repay and/or refinance certain existing debt.
Key Rating Drivers
Utility type business: Yingde's on-site gas supply business, which
contributed to 88% of revenue in 2012 (82% in 2011), generates
stable cash flow similar to utilities companies. This operation
benefits from the cost pass-through and minimum off-take mechanism
in the long-term contracts between Yingde and its on-site
customers.
Stable profitability: Relative to peers in the industry, Yingde
enjoys more stable profitability with its high contribution from
the on-site business. Gross profit has risen every year with
growing capacity. Yingde's gross margin of 32% in 2012 (between
34% and 41% from 2008 to 2011) did show slight volatility as its
merchant sales business segment, which enjoys high gross margins
of over 80%, is subject to volatile demand and pricing.
Nevertheless, its earnings volatility is limited compared with
Yingde's competitors who have a higher exposure to this segment.
Diversified funding sources: Yingde's strengthening access to
various funding sources has given it greater financial flexibility
to fund its on-site business that requires upfront capital
expenditure. This is demonstrated by the following financing
arrangements - offshore syndicated loans amounting to USD300m,
onshore CNY880m MTN notes, and long-term project financing loans
with long maturities of more than five years.
Negative free cash flow (FCF) constrain ratings: High capex over
the next three to five years will put Yingde in negative FCF.
Yingde is still at an expansion stage and its cash flow will be
insufficient to fully fund its capex unless capex stabilises at
CNY2bn by 2015. The high capex has resulted in funds from
operations (FFO) net leverage rising to 4.1x in 2012, above
Fitch's negative rating guideline of 3.5x. However, Fitch expects
this to be temporary. Expedited capex in 2012 will result in
higher cash flow generation from 2014.
Small by global standards: The international industrial gases
sector is dominated by top global players who have strong market
positions in the merchant markets, including some with financial
strength to compete in the on-site business. Although Yingde has a
stronghold in the Chinese on-site segment, the scale of the
company is still small by global standards.
Rating Sensitivities:
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
- deterioration of Yingde's business profile demonstrated by
falling cash gross profit per unit for the on-site gas supply
business
- failure to secure long-term funding for future growth
- FFO adjusted net leverage above 3.5x on a sustained basis, or
higher than 4.5x in any single year
- FFO fixed charge coverage below 4.0x on a sustained basis (4.2x
in 2012)
Positive: Positive rating action is not expected in the next 12-18
months due to Yingde's high capex needs and negative free cash
flow. However, future developments that may, individually or
collectively, lead to positive rating action include:
- meaningful increase in business scale without deterioration in
financial metrics
- positive free cash flow on a sustained basis
YINGDE GASES: Moody's Assigns Ba2 CFR; Outlook is Stable
--------------------------------------------------------
Moody's Investors Service assigned a Ba2 corporate family rating
to Yingde Gases Group Company Limited.
At the same time, Moody's assigned a Ba3 senior unsecured rating
to the proposed USD notes to be issued by Yingde Gases Investment
Limited. The notes will be unconditionally and irrevocably
guaranteed by Yingde Gases Group Company Limited.
The ratings outlook is stable.
The proceeds of the USD notes issuance will be used to repay the
company's certain existing borrowings and for general corporate
purposes.
Ratings Rationale:
"Yingde Gases' Ba2 corporate family rating reflects the company's
strong market position in the industrial gas supply market in
China and the strong growth opportunities in this sector. With the
further commissioning of another 30 facilities in the next few
years, the company is expected to further strengthen its market
share," says Jiming Zou, a Moody's analyst.
Yingde Gases has competitive advantages, including its familiarity
with local markets and its low-cost basis when compared with its
international peers. Its advantages also include its superior
design, construction, operation and maintenance capabilities, when
compared with its domestic peers or captive producers.
The Ba2 corporate family rating is also supported by Yingde Gases'
defensive and resilient business profile, which is, at the same
time, typical for the industrial gas sector.
The company has entered into long-term take-or-pay contracts of 15
to 25 years with its on-site customers. These long-term contracts
account for about 80% of its consolidated revenues.
The take-or-pay contracts require (1) the on-site customers to pay
for a minimum amount of industrial gases, which account for the
majority of Yingde Gases' production capacity; (2) full pass-
through of utility costs; and (3) adjustments in non-utility costs
due to inflation. Hence, there is high visibility in terms of
profitability and gross cash flow generation.
Nevertheless, Yingde Gases' Ba2 corporate family rating is
constrained by the company's relatively small business scale,
customer concentration, and fast growth. The latter means the
company has a short track record for its current scale, and has
large capital expenditure requirements, resulting in significant
negative free cash flow.
Yingde Gases' business scale is smaller than that of its large
multinational peers in the industrial gas sector. Moody's
considers a large-scale industrial gas producer to have stronger
financial flexibility, including strong and more diversified
funding access. This condition is critical to business growth and
market consolidation in a capital-intensive industry.
Yingde Gases' top 5 customers account for almost half of its
revenues, and it has a material exposure to the steel sector,
which accounts for about 70% of its installed capacity.
In this context, Moody's notes that the domestic steel industry is
vulnerable to government policies which aim to restrict capacity.
Accordingly, any further tightening in these policies could
adversely impact the company's customers.
Mitigating this situation are the considerations that Yingde
Gases' supply is integral to the production of its clients and
represents a small percentage of their costs.
Therefore, the company has not so far experienced customer
defaults, price re-negotiations, or major payment delays. In
addition, with the commissioning of another 30 facilities, its
level of concentration risk will decline in the next few years.
Yingde Gases' rating is also constrained by its moderately high
debt leverage. The company has implemented a high level of capital
spending for the construction of new facilities for its on-site
customers.
Such a fast pace of expansion raised debt/EBITDA to around 4.5x at
end-2012 from 2.4x a year ago. At the same time, such a level is
acceptable for Yingde Gases when compared with other Ba2-rated
industrial companies, since its long-term take-or-pay contracts
offer sustainable, above-average profitability, and predictable
gross cash flow.
Moody's also expects debt leverage to stabilize as its new
facilities contribute to their share of revenue and profits.
There are execution risks arising from Yingde Gases' fast
expansion, including with regard to its ability to secure
management resources and consistently apply high safety and
quality standards at its new facilities.
In addition, there are construction-related risks, such as cost
overruns or project delays, but which Moody's currently considers
as moderate, given the mature state of the technology for building
industrial gas facilities and Yingde Gases' sound track record in
the last decade.
The company has a tight liquidity position. Its cash balance of
about RMB1.3 billion as of December 2012 was lower than its RMB3.3
billion in short-term debt. Gross cash flow of close to RMB1
billion is expected to be sustainable, but not enough to fund its
committed capex in the next 12 months.
Despite recent waivers from lenders after a breach in financial
covenants, Yingde Gases outstanding USD-denominated syndicated
loans have constrained its financial flexibility and exert
refinancing pressure in the near term. This situation could be
resolved, if the company secures alternative funding sources,
including the proposed USD notes issuance to pay off the
syndicated loans.
Yingde Gases' proposed USD notes are rated one-notch below its
corporate family rating, given structural subordination at the
holding company level. Yingde Gases has a large amount of onshore
debt, resulting from the construction of its gas supply
facilities.
As of December 2012, subsidiary debt accounted for about 30% of
total consolidated assets. The significant amount of secured debt
that is evident at the operating company level in China would rank
ahead of bondholders at the listed holding company level in the
event of default. In addition, the notched-down bond rating
reflects the lower expected recovery levels for such bondholders
if such a scenario occurred.
The ratings outlook is stable, reflecting the sustainable
character of the company's gross cash flow through the cycle and
the expected stabilization of debt leverage over the next 12
months.
Upside rating pressure is limited at this stage, given the
company's moderately high debt leverage and continued large
capital spending against the backdrop of a relatively small and
concentrated business profile. Positive rating pressure could
emerge if Yingde Gases improves its business scale and customer
diversification, and enhances debt/EBITDA below 3.0x and RCF/Net
debt above 30% on a sustained basis.
A downgrade could be triggered, if Yingde Gases further increases
debt leverage through aggressive expansion, or experiences an
unexpected deterioration in its gross cash flow. Debt/EBITDA above
5x and RCF/Net debt below 10% - 15% could result in a downgrade.
The principal methodology used in these ratings was Global
Chemical Industry Methodology published in December 2009.
Yingde Gases Group Company Limited is one the largest players in
the independent on-site industrial gas market in China. The
company reported RMB4.96 billion revenues in 2012. It had a total
of 41 production facilities in operation and another 30 under
development, as end-2012. On-site gas production accounted for
about 80% of Yingde Gases' revenues, with the rest coming from
merchant sales.
The company listed on the Hong Kong Stock Exchange in September
2009. The executive directors and founders, Zhongguo Sun, Zhao
Xiangti and Trevor Raymond Strutt held 18.5%, 14.43% and 10.15%
equity stakes, respectively, as of March 2013.
================
H O N G K O N G
================
ASIA PACIFIC: Creditors' Proofs of Debt Due April 22
----------------------------------------------------
Creditors of Asia Pacific Accessories Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by April 22, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on March 15, 2013.
The company's liquidator is:
Chan Yuk Lin
10/F, Nan Dao Commercial Building
359-361 Queen's Road
Central, Sheung Wan
Hong Kong
BEKAERT INDUSTRIAL: Members' Final Meeting Set for April 23
-----------------------------------------------------------
Members of Bekaert Industrial Coatings Hong Kong Limited, which is
in members' voluntary liquidation, will hold their final general
meeting on April 23, 2013, at 10:00 a.m., at 19/F, Tower A,
Manulife Financial Centre, 223-231 Wai Yip Street, Kwun Tong,
Kowloon, in Hong Kong.
At the meeting, John Chi Wai Wong and Lay Hong Tan, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
BRISWELL DEVELOPMENT: Creditors' Proofs of Debt Due May 3
---------------------------------------------------------
Creditors of Briswell Development Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by May 3, 2013, to be included in the company's dividend
distribution.
The company commenced wind-up proceedings on March 11, 2013.
The company's liquidator is:
Chan Cho Wing
Room 602, Eastern Commercial Centre
397 Hennessy Road
Wanchai, Hong Kong
CAMBRIDGE UNIVERSITY: Creditors' Proofs of Debt Due April 22
------------------------------------------------------------
Creditors of Cambridge University Asia Pacific Training Services
Limited, which is in members' voluntary liquidation, are required
to file their proofs of debt by April 22, 2013, to be included in
the company's dividend distribution.
The company commenced wind-up proceedings on March 11, 2013.
The company's liquidators are:
Thomas Andrew Corkhill
Iain Ferguson Bruce
8th Floor, Gloucester Tower
The Landmark
15 Queen's Road
Central, Hong Kong
CENTURY MUTUAL: Annual Meetings Set for April 8
-----------------------------------------------
Members and creditors of Century Mutual Limited, which is in
members' voluntary liquidation, will hold their annual meetings on
April 8, 2013, at 3:00 p.m., and 3:30 p.m., respectively at the
office of FTI Consulting, Level 22, The Center, 99 Queen's Road
Central, Central, in Hong Kong.
At the meeting, Simon Blade, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.
CHINA SCI-TECH: Members' Final General Meeting Set for April 26
---------------------------------------------------------------
Members of China Sci-Tech Trading Limited, which is in members'
voluntary liquidation, will hold their final general meeting on
April 26, 2013, at 3:15 p.m., at Rooms 4503-05, 45/F, China
Resources Building, 26 Harbour Road, Wanchai, in Hong Kong.
At the meeting, Shom Chun Po, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CHINA SCI-TECH CORP: Final General Meeting Set for April 26
-----------------------------------------------------------
Members of China Sci-Tech Corporate Finance Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on April 26, 2013, at 3:45 p.m., at Rooms 4503-05, 45/F,
China Resources Building, 26 Harbour Road, Wanchai, in Hong Kong.
At the meeting, Shom Chun Po, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CHINA SCI-TECH INDUSTRIAL: Final General Meeting Set for April 26
-----------------------------------------------------------------
Members of China Sci-Tech Industrial Company Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on April 26, 2013, at 4:00 p.m., at Rooms 4503-05, 45/F,
China Resources Building, 26 Harbour Road, Wanchai, in Hong Kong.
At the meeting, Shom Chun Po, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CHINA SCI-TECH INFORMATION: Final General Meeting Set for Apr. 26
-----------------------------------------------------------------
Members of China Sci-Tech Information System Company Limited,
which is in members' voluntary liquidation, will hold their final
general meeting on April 26, 2013, at 4:15 p.m., at Rooms 4503-05,
45/F, China Resources Building, 26 Harbour Road, Wanchai, in Hong
Kong.
At the meeting, Shom Chun Po, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CHINA SCI-TECH PROPERTIES: Final General Meeting Set for April 26
-----------------------------------------------------------------
Members of China Sci-Tech Properties Company Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on April 26, 2013, at 4:30 p.m., at Rooms 4503-05, 45/F,
China Resources Building, 26 Harbour Road, Wanchai, in Hong Kong.
At the meeting, Shom Chun Po, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
CLARLY LIMITED: Philip Brendan Gilligan Steps Down as Liquidator
----------------------------------------------------------------
Philip Brendan Gilligan stepped down as liquidator of Clarly
Limited on March 11, 2013.
CMR LIFE: Kwan and Liu Step Down as Liquidators
-----------------------------------------------
Kwan Pak Kong and Liu Chi Tat Stephen stepped down as liquidators
of CMR Life (Hong Kong) Limited on March 8, 2013.
ESAMSUNG GREATER: Final General Meeting Set for April 23
--------------------------------------------------------
Members of eSAMSUNG Greater China Co., Limited, which is in
members' voluntary liquidation, will hold their final general
meeting on April 23, 2013, at 10:00 a.m., at 1009-1012, 10th
Floor, Nan Fung Tower, 173 Des Voeux Road Central, in Hong Kong.
At the meeting, Son Kwon Soo, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FINEAST TRADING: Chan Sek Kwan Steps Down as Liquidator
-------------------------------------------------------
Chan Sek Kwan stepped down as liquidator of Fineast Trading
Limited on March 15, 2013.
FLIUTSHIRE PROPERTIES: Members' Final Meeting Set for April 23
--------------------------------------------------------------
Members of Fliutshire Properties Limited, which is in members'
voluntary liquidation, will hold their final meeting on April 23,
2013, at 10:30 a.m., at 20th Floor, The Hong Kong Club Building,
3A Chater Road, Central, in Hong Kong.
At the meeting, Yuen Ting Wah, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
FLYING UNICORN: Final Meeting Set for April 23
----------------------------------------------
The sole member of Flying Unicorn International Limited, which is
in voluntary liquidation, will hold a final meeting on April 23,
2013, at 11:00 a.m., at Suite No. A, 11th Floor, Ritz Plaza, 122
Austin Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Sung Mi Yin Mella, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
HK ICE: Members' Final Meeting Set for April 24
-----------------------------------------------
Members of Hong Kong Ice Theatre Limited, which is in members'
voluntary liquidation, will hold their final meeting on April 24,
2013, at 3:00 p.m., at Flat D4, 1st Floor, Fa Po Villa, 12-14 Fa
Po Street, Yau Yat Chuen, in Kowloon.
At the meeting, Andrew Hung Chi Yuen, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.
HK TENNIS: Commences Wind-Up Proceedings
----------------------------------------
Members of The Hong Kong Tennis Patrons' Association Limited, on
March 14, 2013, passed a resolution to voluntarily wind up the
company's operations.
The company's liquidator is:
Lee Dick Ming-Kwai
Flat 24-D, Block 24
Baguio Villa, 555 Victoria Road
Hong Kong
HOI KA: Members' Final Meeting Set for April 23
-----------------------------------------------
Members of Hoi Ka Company Limited, which is in members' voluntary
liquidation, will hold their final meeting on April 23, 2013, at
10:00 a.m., at 20th Floor, The Hong Kong Club Building, 3A Chater
Road, Central, in Hong Kong.
At the meeting, Yuen Ting Wah, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
HUTCHISON 3G: Creditors' Proofs of Debt Due April 12
----------------------------------------------------
Creditors of Hutchison 3G Services (HK) Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by April 12, 2013, to be included in the company's
dividend distribution.
The company commenced wind-up proceedings on March 15, 2013.
The company's liquidators are:
Ying Hing Chiu
Chan Mi Har
Level 28, Three Pacific Place
1 Queen's Road
East, Hong Kong
IMPRIMIS HOLDINGS: Ling Wai Ming Steps Down as Liquidator
---------------------------------------------------------
Ling Wai Ming stepped down as liquidator of Imprimis Holdings
Limited on March 6, 2013.
INFO SOURCE: Chow Chun Man Appointed as Liquidator
--------------------------------------------------
Chow Chun Man on Feb. 8, 2013, was appointed as liquidator of Info
Source Multi Media Limited.
The liquidator may be reached at:
Chow Chun Man
Unit A, 4th Floor
Ho King Commercial Centre
2-16 Fa Yuen Street
Mongkok, Kowloon
Hong Kong
INTERCARGO HK: Members' Final Meeting Set for April 24
------------------------------------------------------
Members of Intercargo Hong Kong Limited, which is in members'
voluntary liquidation, will hold their final meeting on April 24,
2013, at 2:30 p.m., at Unit 511, 5/F, Tower 1, Silvercord, 30
Canton Road, Tsimshatsui, Kowloon, in Hong Kong.
At the meeting, Ho Man Kit and Kong Sau Wai, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
INTER OPEN: Chan Sek Kwan Steps Down as Liquidator
--------------------------------------------------
Chan Sek Kwan stepped down as liquidator of Inter Open
International Limited on March 15, 2013.
JERNEH INVESTMENT: Sung Mi Yin Steps Down as Liquidator
-------------------------------------------------------
Sung Mi Yin stepped down as liquidator of Jerneh Investment (HK)
Limited on March 11, 2013.
=========
I N D I A
=========
AIR INDIA: May Face Fresh Trouble Over Staff's Delayed Wages
------------------------------------------------------------
The Times of India reports that Air India Ltd may be headed for a
fresh round of staff trouble. TOI says constant delay in salary
payment and the uncertainty surrounding pay cut following the
implementation of Dharamadhikari committee report has forced the
pilots of erstwhile Indian Airlines to call an emergency meeting
of their union on Monday.
According to the report, the Indian Commercial Pilots' Association
(ICPA) is going to discuss the payment of just about INR7,000 to
INR10,000 this month as only basic pay was given in March and not
the flying allowances that account for over 80% of the total pay.
"The morale of the airline staff has never been lower than it
currently is. People are fed up with the never-ending financial
troubles and the uncertainty over salary payment," the report
quotes an ICPA member as saying.
TOI notes that the ICPA is likely to authorize its office bearers
to take any action they deem fit over the proposed pay cuts that
implementing the Dharmadhikari committee report will lead to and
the unending uncertainty over getting paid. "Our calculations show
us that the pay cut for co-pilots will be up to 26% and for senior
commanders, especially from Air India side, the cut will be almost
46% to 48%. This is not acceptable," an ICPA member said.
According to TOI, a senior official said that the airline's
performance has improved from revenue-generation side and costs
have been brought down too. "UPA I had taken some seriously big
ticket decisions (referring to aircraft purchase) and as the owner
it has to infuse equity in the airline. Our systems have improved
a lot and what we need now is liquidity to pay off creditors and
employees," an official admitted, TOI relays.
About Air India
Air India Ltd -- http://www.airindia.com/-- transports
passengers throughout India and to more than 40 destinations
throughout the world. Affiliate Air India Express operates as a
low-fare carrier, mainly between India and destinations in the
Middle East, and Air India Cargo provides freight transportation.
The government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on
domestic routes. The combined airline, part of a new holding
company called National Aviation Company of India, uses the Air
India brand. The new Air India and its affiliates have a fleet
of more than 110 aircraft altogether.
* * *
The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been
bleeding cash due to excess capacity, lower yield, a drop in
passenger numbers, an increase in fuel prices and the effects of
the global slowdown. Air India had debts of INR42,570 crore and
accumulated losses of INR22,000 crore as of March 31, 2011,
according to livemint.com.
In April 2012, the Union Cabinet approved an operational
turnaround plan through an equity infusion of INR30,000 crore
(US$5.8 billion) over the next eight years.
"The Cabinet Committee on Economic Affairs (CCEA) has approved
the turnaround plan (TAP) and financial restructuring plan (FRP)
of Air India, under which the government will infuse INR30,000
crore into the airline by 2020-21, subject to certain milestones
that AI will have to meet," civil aviation minister Ajit Singh
said.
BALAJI OVERSEAS: ICRA Assigns 'B' Rating to INR5.88cr Loan
----------------------------------------------------------
ICRA has assigned the long term rating of '[ICRA]B' to the INR5.88
crores Bank facilities and short term rating of '[ICRA]A4' to the
INR24.12 crores bank facilities of Balaji Overseas.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Long Term Fund 5.88 [ICRA]B assigned
Based Limits
Short Term Fund 24.00 [ICRA]A4 assigned
Based Limits
Short Term Non-Fund 0.12 [ICRA]A4 assigned
Based Limits
The assigned rating is constrained by high gearing arising out of
substantial debt funding of large working capital requirements.
The rating also takes into account high intensity of competition
in the rice milling industry and agro climatic risks, which can
affect the availability of paddy in adverse weather conditions.
The rating however, favorably takes into account good
profitability metrics at operating levels in its core business of
rice milling, long standing experience of promoters with strong
relationships with several customers and suppliers coupled with
proximity of the mill to major rice growing area which results in
easy availability of paddy.
Business was established in the year 1989 as proprietorship firm
with Mr. Kailash Chander as proprietor. Balaji Overseas together
with its other group concerns i.e. Balaji International and Shri
Shanker Rice Mill is engaged in the business of rice milling. As
per the management milling capacity of the plant is 5 tonnes/hr
and the mill operates at around 60-70% of the installed capacity.
Balaji Overseas is engaged in the business of processing and
trading of rice in domestic market as well as exporting to
countries in Middle East, Saudi Arabia, Dubai, Kuwait and USA.
Firm sells its product under the brand name of "Sargam". Company
is having its manufacturing unit at Kurukshetra Road, Sandholi,
Pehowa.
Recent Results:
Balaji reported a net profit of INR0.30 crores on an operating
income of INR51.62 crores for the year ended March 31, 2012 and a
net profit of INR0.29 crores on an operating income of INR69.84
crores for the year ended March 31, 2011.
CASTALL TECHNOLOGIES: ICRA Assigns 'BB-' Rating to INR35.8cr Loan
-----------------------------------------------------------------
ICRA has assigned an '[ICRA]BB-' rating to INR35.80 crore fund
based facilities of Castall Technologies Private Limited. ICRA has
also assigned a short term rating of '[ICRA]A4' to the INR0.40
crore non fund based facilities of CTPL. The outlook on the long-
term rating is Stable.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund based facilities 35.80 [ICRA]BB- (Stable) Assigned
Non fund based 0.40 [ICRA]A4 Assigned
facilities
The assigned ratings are constrained by the high working capital
intensity due to long receivable cycle coupled with high inventory
levels. The liquidity of the company is stretched as reflected by
consistent near 100% working capital limit utilization levels in
the recent past. The rating is further constrained by the weak
financial profile characterized by high gearing and moderate
coverage indicators, sole dependence on auto industry with high
client concentration (top two customers accounting for more than
80% of total sales) which exposes the revenues to slowdown in auto
industry and the vulnerability to adverse foreign exchange rate
fluctuations on export earnings. CTPL plans to relocate the entire
manufacturing unit to a SEZ with a proposed investment of around
INR100 crore in next three years. The relocation expenditure has
not been considered for arriving at the ratings given the
uncertainty over timelines and funding. Nevertheless, reliance on
debt to fund the proposed plans could have adverse impact on
coverage and leverage indicators.
Going forward, with expected improvement in export orders, ICRA
expects the working capital intensity and foreign exchange
fluctuations risk to increase further.
The ratings however, draw comfort from the capabilities of CTPL to
manufacture critical auto components despite modest size, improved
profitability over the last few years as a result of higher value
addition (FY 12 being an exception as a result of higher
proportion of domestic orders -relatively lower value addition).
The ratings also factor in CTPL's established relationship with
Daimler AG for its new generation gear project with committed
orders over the medium term resulting in a healthy order book
visibility.
CasTall Technologies Private Limited was incorporated in the year
1999 and is in the production of Die cast components since 2000.
It was promoted by Mr. N. Madhu Venkateswar. The manufacturing
facility is located in Gandhinagar, Hyderabad. The products
manufactured by CTPL can be broadly classified under six verticals
viz. Automotive, Aerospace, Hermetic Compressors and Appliances,
Telecommunications, Electric and starter Motors, and General
Engineering. Product wise, CTPL earns bulk of its revenues from
sale of automotive parts.
DHARESHWAR COTTON: ICRA Reaffirms 'B' Rating on INR8.90cr Loans
---------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]B' rating to the INR1.90 crore term
loan and INR7.00 crore cash credit facilities of Dhareshwar Cotton
Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Cash Credit Limit 7.00 [ICRA]B reaffirmed
Term Loan 1.90 [ICRA]B reaffirmed
The reaffirmation of rating takes into account the company's
modest scale of operations, low profitability, stretched capital
structure as well as weak coverage indicators and the fragmented
nature of the cotton ginning industry resulting in high
competitive intensity. Further, ICRA is cognizant of the fact that
the company continues to remain exposed to adverse movements in
raw material prices which coupled with low value additive nature
of the work, keeps the profitability metrics and cash accruals at
modest levels.
The rating however, favorably factors in the company's strategic
location in cotton growing belt which ensures easy availability of
cotton and favorable demand outlook for cotton and cotton seeds.
The ratings further considers the moderately diversified product
profile due to presence in crushing operations
Dhareshwar Cotton Pvt Ltd. was incorporated in 2011, to engage in
cotton ginning, pressing and seed crushing business. The company
has 24 ginning machines with an intake capacity of around 120 MTPD
of raw cotton to produce cotton bales and cotton seeds. For seed
crushing, the company has installed 4 expellers with an intake
capacity of around 35 MTPD of cotton seeds to produce oil and oil
cakes. The company is managed jointly by Mr. Sanjay Namera, Mr.
Durlabhji Bhagiya, Mr. Ganesh Devda and Mr. Arvind Bhagiya who are
also directors of the company. Recent Results For the year ended
31st March, 2012, the firm reported an operating income of
INR11.72 crore with profit after tax (PAT) of INR835.
HOTEL RAJ: ICRA Reaffirms 'BB' Ratings to INR16.15cr Loans
----------------------------------------------------------
ICRA has reaffirmed (assigned for enhancements) the long term
rating of '[ICRA]BB' to INR12.15 crore term loan facilities
(enhanced by INR8.35 crore) and INR4.0 crore long term fund based
facilities of Hotel Raj Park Private Limited. The outlook on the
long-term rating is stable.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loan 12.15 [ICRA]BB (Stable)
reaffirmed/assigned
Fund Based Limits 4.00 [ICRA]BB (Stable) reaffirmed
(Long term)
The ratings consider the locational advantage enjoyed by the hotel
which is reflected in steady occupancies and Average Room Rates
(ARRs), growth in F&B income and healthy profit margins of the
Company. The ratings also consider the Company's small scale of
operations, concentration on single property in Chennai and
competition from new and existing properties in the vicinity. ICRA
also takes note of the new 3 star property being set up in
Tirupati which is expected to drive growth and provide
diversification benefits, however partial debt funding of the
project has put pressure on capital structure with gearing
increasing from 0.7x in FY11 to 1.2x in FY12. The company has
aggressive capital expenditure plans in the medium term; however
the funding strategy for the same has not yet been finalized. In
the event that the project is largely debt funded, the impact on
the company's capital structure could be detrimental.
Hotel Raj Park Private Limited operates a single 120 room four-
star hotel-Hotel Raj Park located in Alwarpet, Chennai. The
construction of the property started in 1999 and the hotel
commenced operations in 2001 with 87 rooms. Initially HRPPL had a
marketing tie up under the Ramada brand of the global hotel
franchisor - Wyndham Worldwide and the property was named Hotel
Ramada Raj Park. The room inventory was subsequently raised to 120
in 2008 and the tie up with Ramada brand was terminated, renaming
the hotel as Hotel Raj Park. The hotel has six conference/banquet
halls, two restaurants, one restro-bar and an independent bar. It
also has a rooftop swimming pool and health club. The Company also
has windmill facilities of 800KW capacity. The company is also
setting up a 72 rooms, 3 star property in Tirupati in Andhra
Pradesh, which is expected to commence operations by April 2013.
The current shareholders of the company comprise of Mr. P.
Devarajan - the promoter and his family. The promoter has
experience in the construction business and before entering the
hospitality business was running a construction firm called Raj
Builders. Apart from HRPPL, the promoter has interests in several
real estate and hospitality ventures along with his family
members.
Recent Results
The Company reported profit after tax (PAT) of INR1.3 crore on an
operating income (OI) of INR14.6 crore in fiscal 2011-12, compared
to PAT and OI of INR0.8 crore and INR12.9 crore in fiscal 2010-11.
KINGFISHER AIRLINES: State Bank Seeks to Seize Mallya's Villa
-------------------------------------------------------------
Anto Antony at Bloomberg News reports that State Bank of India,
the biggest lender to grounded Kingfisher Airlines Ltd., said it
will seize collateral pledged by the company after the carrier's
Chairman Vijay Mallya filed a lawsuit to stop the creditors.
Mr. Mallya on March 26 filed a case against State Bank, the
nation's biggest lender, and 17 other creditors, Bloomberg News
discloses citing a filing on the Bombay High Court's website. The
court on April 2 declined to stop banks from selling shares of
United Spirits (UNSP) Ltd. that have been pledged as collateral,
Bloomberg TV India reported.
Bloomberg News notes that the liquor baron offered shares of
United Spirits and Mangalore Chemicals & Fertilizers Ltd., his
luxury villa in the beach resort of Goa as well as the Kingfisher
brand as collateral for loans raised to expand his airline.
Kingfisher, the only Indian carrier to order Airbus SAS A380s, has
halted flights since October after struggling with a 86 billion-
rupee ($1.6 billion) debt pile and five years of losses.
"The bank has called up the loan and has asked the company to
repay," State Bank Chairman Pratip Chaudhuri told Bloomberg News
in an interview in Mumbai. "We will invoke all the guarantees and
securities that we hold including shares of United Spirits that is
pledged as collateral and personal assets of the people who have
given the guarantee."
Bloomberg News recalls that a luxury villa in the western Indian
state of Goa, two helicopters, a building in Mumbai and shares
have been used as collateral for loans as of November 2011, Namo
Narain Meena, junior finance minister, said that month. The total
value of the guarantees, including furniture and fixtures worth
INR3.3 billion ($61 million), was INR52.4 billion, he said.
According to Bloomberg News, Mr. Chaudhuri said in Mumbai on
Feb. 14 that selling the shares of companies controlled by Mallya
can help recover as much as INR10 billion.
The lender on April 2 sold shares of Mangalore Chemicals and
730,000 shares of United Spirits, Bloomberg TV India reported,
citing an unidentified State Bank official.
About Kingfisher Airlines
Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., served about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops. It maintained bases in major cities such as Delhi and
Mumbai.
* * *
Kingfisher Airlines, which has been unprofitable since it was
created in 2005, accumulated losses of $1.9 billion between
May 2005 and June 30, 2012, The Wall Street Journal reported
citing Sydney-based consultant CAPA-Centre for Aviation. The
airline also owes about $2.5 billion to lenders, suppliers,
leasing companies and investors, the Journal added.
According to The Times of India, the company began showing signs
of weakness in November 2011 when it ran out of money to operate
most of its flights and started reducing its flights to cut cost.
The airline also failed to pay salaries to its employees for a
long time following which the employees went on an indefinite
strike. Its flying license was finally suspended in October 2012,
TOI reported.
MAS GMR: ICRA Lowers Rating on INR232cr Term Loan to 'D'
--------------------------------------------------------
ICRA has revised the rating assigned to the INR232 crore term loan
programme of MAS GMR Aerospace Engineering Company Limited to
'[ICRA]D' from '[ICRA]BBB-' earlier.
The rating revision primarily factors in the recent delays in
servicing of interest by MAS-GMR following delayed infusion of
funds from its sponsors. ICRA notes that MAS-GMR's INR309 crore
MRO (Maintenance, Repair, Overhaul) facility is yet to ramp up its
operations necessitating funding support from its sponsors to meet
debt servicing requirements, and that such funding support has
been untimely on a few occasions in the recent past. While ICRA's
earlier rating had already factored in the dependence on sponsors
for timely debt servicing the rating at the time reflected the
expectation that the sponsors would infuse funds in a timely
manner. As such, although the sponsors are expected to continue to
support MAS-GMR going forward, in the absence of a definite
mechanism to secure funds from its sponsors in a timely manner,
ICRA expects such delays on account of mismatched cash flows to
continue. Further, ICRA expects MAS-GMR to continue to remain
dependent on its sponsors to meet debt servicing requirements over
the near term due to the nascent nature of operations and slower
than expected ramp-up of operations.
MAS-GMR is a 50:50 Joint Venture (JV) between GMR Hyderabad
International Airport Limited (GHIAL, rated at [ICRA]BBB/A3+) and
Malaysian Aerospace Engineering Sdn. Bhd. (MAE, a 100% subsidiary
of Malaysian Airline System Bhd, operator of Malaysia Airlines).
The JV has commissioned an Airframe MRO facility at the Hyderabad
Airport in November 2011 at a total cost of INR308 crore, funded
by debt of INR232 crore and the balance by equity. Apart from DGCA
approval, an EASA approval was also received in February 2012.
Post the EASA approval, the company is in discussions with several
airlines in India/abroad for long-term service contracts. MAS-GMR
has recently restructured its operations by designating its 100%
subsidiary, MAS GMR Aero Technic Limited (MGAT) to operate the MRO
business, while it leases out the physical infrastructure to MGAT
for a lease rental.
MIMANI AGRO: ICRA Reaffirms 'B+' Ratings on INR10.49cr Loans
------------------------------------------------------------
The rating of '[ICRA]B+' has been reaffirmed for the INR10.49
crore long-term fund-based facilities and term loans of Mimani
Agro Products Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loans (Incl. 7.49 [ICRA]B+ reaffirmed
Proposed Loans)
Fund-based, Long-term 3.00 [ICRA]B+ reaffirmed
facilities
ICRA has taken a consolidated view of MAPPL and its associate
company, Ganesh Spices Private Limited, with both companies having
common promoters and financial support provided to GSPL by MAPPL
in the form of unsecured loans in the past.
The rating reaffirmation factors in the high term loan repayments
due in the near future which are tightly matched with the cash
accruals of the company. The rating also factors in the high
fragmentation and competition on account of the unorganised nature
of the industry; the modest scale of operations of the company;
vulnerability to agro-climatic risks, which impact the
availability and price of raw material and the low profitability
margins on account of the low value-added nature of the business.
The company is also in the midst of debt-funded capex, which
renders it vulnerable to business and financial risks; the project
has been delayed and is now expected to be completed only in FY14-
FY15.
The rating, however, favorably factors in the long experience and
established track record of the promoters in the industry;
positive demand outlook for the company's products in India, and
the favorable location of the unit at Bikaner (Rajasthan) leading
to ease of availability of the primary raw material (chickpea).
Timely completion of the expansion project and achievement of
satisfactory capacity utilization levels, thereby leading to
improved revenues and profits, and cash flow management will be
the key rating sensitivities going forward.
Mimani Agro Products Private Limited is a private limited company
and was incorporated in the year 1999. It is engaged in the
manufacture of sattu, besan and dal from chana (chickpea). The
company has its plant in Bikaner, Rajasthan with an installed
capacity of 4,800 MTPA of besan and 2,400 MTPA of sattu. The
company is owned by the family of the Managing Director Mr. Rajesh
Mimani. The company's products are used for household consumption
as well as for manufacture of sweets, namkeen, etc. The company
also processes certain other pulses such as moong and urad in
small quantities. The raw materials are primarily sourced from
mandis in and around Bikaner. A major part of the products are
sold in the eastern region such as Bihar through an associate
company, Ganesh Grains Limited. The company is now in the process
of expanding its chana dal capacity at its existing location as
well as setting up new capacities for manufacture of other pulses
such as urad.
In 2011-12, the company reported net profit of INR0.14 crore on an
operating income of INR38.4 crore as against net profit of INR0.2
crore on an operating income of INR50.7 crore in 2010-11.
RADIANT PLASTRUDERS: ICRA Assigns 'B+' Ratings to INR5.5cr Loans
----------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' to the fund-
based facilities aggregating to INR5.50 crores of Radiant
Plastruders (I) Private Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based Limits 1.50 [ICRA]B+ assigned
(Term Loan)
Fund Based Limits 3.50 [ICRA]B+ assigned
(Cash Credit)
Fund Based Limits 0.50 [ICRA]B+ assigned
(proposed)
The rating is constrained by the company's small size of
operations and weak financial risk profile as reflected by
continued book losses and tight liquidity position also arising
from high working capital intensity in the operations. ICRA
further notes that the company faces intense competitive pressures
from both organized and unorganized players and ability of the
company to scale up its operations remains crucial from rating
perspective. The rating further takes into account the company's
low bargaining power with suppliers and vulnerability of
profitability margins to adverse fluctuations in raw material
costs.
The rating, however, favorably takes into account the long and
established track record of the promoters in the plastic carry bag
segment and favorable demand indicators for flexible packaging
material in the domestic markets.
Radiant Plastruders (I) Private Limited was incorporated in the
year 1994 by Mr. Hasmukh Anandpara and is engaged in the
manufacturing of plastic carry bags and flexible packaging
material. The company is a subsidiary of Radiant Organics Private
Limited, which is engaged in the trading of chemicals, inks and
adhesives. RPIL has a manufacturing facility based in Daman for
production of both plastic bags and flexible packaging material.
Recent Results
For FY 2012, the company reported loss of INR0.76 crore on an
operating income of INR7.66 crore. For 9m FY 2013, ROPL reported
loss of INR0.27 crore on an operating income of INR12.48 crore.
(provisional).
RASHI STEEL: ICRA Assigns 'BB' Rating to INR82cr Term Loan
----------------------------------------------------------
ICRA has assigned an '[ICRA]BB' rating to the INR82.0 crore term
loan of Rashi Steel & Power Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loan 82 [ICRA]BB assigned
The ratings take into account the favorable outlook for demand of
pellets in the medium to long term, the experience of the
promoters in the steel industry, and financial closure of the
project with debt being tied up.
The rating also takes into consideration the project execution
risks given the early stages of project commissioning of present,
risks of time overrun leading to cost overruns, which might
significantly affect the overall returns from the project,
exposure of the profits and the cashflows of the company to the
cyclicality inherent in the steel industry, low provision for
contingency in the project cost and a project gearing of 1.56
times, which coupled with working capital debt is expected to keep
the gearing high in the initial years post commissioning. ICRA
also notes that post the commissioning of the pellet project, RSPL
has significant capital expenditure plans to set up a 1 million
tonnes per annum integrated steel plant. However, the scope and
the funding requirements for the same has not been finalised yet
and the same has not been considered while assigning the rating.
Rashi Steel & Power Limited, promoted by Mr Amar Agarwal and other
promoters in 2009, plans to set up a 0.4 million tonnes per annum
pelletization cum beneficiation plant at Bilaspur. The pellet
plant is being set up using the grate kiln technology and will be
operated on a merchant basis in the initial years. The project is
expected to be fully commissioned by October 2013 and is currently
in the early stages of project execution.
SATYAWATI SUBODH: ICRA Rates INR12.45cr Term Loans at 'B-'
----------------------------------------------------------
ICRA has assigned '[ICRA] B-' rating for INR12.45 crore term loans
of Satyawati Subodh Foundation Trust.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term Loans 12.45 [ICRA]B- Assigned
The rating is constrained by significant competition being faced
by SSFT's Sri Ram Centennial school from other established and
reputed schools such as DPS and G D Goenka, which are already
operational in SSFT's vicinity; the high market risk is also
evident from the low number of admissions done so far for the
first academic session. The rating also takes into account high
project risk as the school is still under-development. Further,
considering the low number of admissions for the Academic year
2013-14 ICRA expects SSFT's operational cash flows to be
inadequate to meet interest obligations and will remain dependent
on its trustees for timely servicing of debt. The rating, however,
derives comfort from trustees' long experience in the education
sector, attractive location of the school in Dayalbagh area of
Agra (Uttar Pradesh), and SSFT's competitive fee structure. Going
forward, timely completion of the project within the budgeted
cost, fast ramp-up in admissions and prompt funding of cash
shortfalls in the initial years would be key rating sensitivities.
SSF is a society registered on 13th January, 2012 under The
Societies Registration Act, 1880. The society, in association with
Shri Ram Education Trust currently operates a pre-school in Agra
(Uttar Pradesh). The society is building a senior secondary
school, Shri Ram Centennial School, at Dayalbagh, Agra. The school
will be completed in three phases. The first phase will consist of
classes from Nursery to Class VI, 2nd phase will consist of
classes from VII to X and 3rd phase will be for classes XI & XII.
The project cost is INR~17.5 crore, out of which the trust has
spent approximately INR~10 crore.
SHASHWAT CABLES: ICRA Assigns 'B-' Rating to INR4cr Loan
--------------------------------------------------------
ICRA has assigned '[ICRA]B-' rating to the INR4.00 crore fund of
Shashwat Cables Private Limited. The rating committee of ICRA has
also assigned the short term rating of '[ICRA]A4' rating to the
INR2.00 crore non fund based limits of Shashwat Cables Private
Limited.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund based limits 4.00 [ICRA]B- assigned
Non Fund based limits 2.00 [ICRA]A4 assigned
The ratings are constrained by competitive industry environment
characterized by presence of several players which has resulted in
modest profitability and revenues of the company in the past.
Moreover, the company's margins remain susceptible to raw material
price variations in the absence of price-variation clauses in its
contracts. ICRA also notes SCPL's high receivables from its state
utilities/public sector undertakings clients, which has resulted
in high working capital intensity and high utilization of SCPL's
working capital limits. High debt to fund the working capital
coupled with modest net margins has resulted in high gearing and
modest debt protection metrics for the company. The rating,
however favorably factors in approved vendor from PGCIL (Power
Grid Corporation of India), favorable demand outlook for the power
transmission sector and various tax/excise incentives being
availed by SCPL's unit .
Going forward, the ability of the company to secure more orders
and improve its profitability, while efficiently maintaining its
receivables will remain the key rating drivers.
Shashwat Cables was incorporated in the year 2005 and engaged in
the manufacturing of low-tension cables (Aerial Bunched Cables),
which are used in the distribution of power and has its
manufacturing plant located at Dehradun (Uttarakhand). The company
is an approved vendor for the Power Grid Corporation of India
Limited and supplies its products to various established SEB's
(State Electricity Board) such as Madhya Pradesh Vidyut Vitran
Company, Indian Railways, Uttarakhand Power Corporation Ltd, Uttar
Pradesh Power Corporation Limited and others.
SHIVGANGA DRILLERS: ICRA Assigns 'BB-' Ratings to INR35.5cr Loans
-----------------------------------------------------------------
The rating of '[ICRA]BB-' has been assigned to the INR35.50 crore
long-term fund-based limits and term loans of Shivganga Drillers
Private Limited; the outlook on the rating is Stable. The rating
of '[ICRA]A4' has been assigned to the INR19 crore short-term non-
fund based facilities of SDPL.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund-Based, Long-Term 3.00 [ICRA]BB- (Stable) assigned
Limits
Term Loans 32.50 [ICRA]BB- (Stable) assigned
Non-Fund Based, Short- 19.00 [ICRA]A4 assigned
Term Limits
The ratings factor in the limited scale of operations of the
company in the water well drilling segment due to the unorganised
nature of the industry. The ratings also factor in the cyclicality
on account of the demand for the oil & gas sector being determined
by upstream capex trends; high customer concentration risk in the
O&G segment, given that ONGC Limited is likely to be the major
customer in the domestic industry; and low bargaining power with
customers in the O&G segment, given their large size in comparison
to that of SDPL. Besides, the company is undertaking a large debt-
funded capex in the near term; the scale of the capex plan is
significantly higher compared to the current scale of operations
and balance sheet size. Given the low net worth in relation to the
project size, the gearing levels would witness a steep increase in
the near term. Further, there is no track record of the new
equipment being procured by the company in the domestic market.
The ratings also factor in a delay in servicing of term loan
instalment in the past.
The ratings, however, factor in the long track record of the
promoters in the water well drilling business; the healthy growth
in revenues post the entry into O&G drilling, and the healthy
profitability and return indicators from existing operations.
Going forward, the ability of the company to increase its scale of
operations and profits will be the key rating sensitivity.
Shivganga Drillers Private Limited, incorporated in 2005, is a
joint venture of the Rathi family, which has been engaged in the
water well drilling business for three decades, and the Amrit
Group, which is involved in bulk trading of paper. Commercial
operations began in 2006 with the import of DR24 (Heavy Duty
Drilling Machine) from Foremost Industries (Canada). Subsequently,
the company imported a second similar machine in 2007. The company
is currently engaged in the drilling of large diameter tube wells
for government departments and public sector units for extraction
of water, oil and gas. The company is now looking at expanding its
presence in the oil and gas drilling segment through the import of
the Predator Drilling Machine from Atlas Copco, USA.
In YTD 2012-13 (based on provisional financials as of January 15,
2013), SDPL reported a net profit of INR4.95 crore on an operating
income of INR34.03 crore against a net profit of INR0.38 crore on
an operating income of INR19.53 crore in 2011-12.
SURYAVANSHI SPINNING: ICRA Cuts Ratings on INR75.55cr Loans to BB
-----------------------------------------------------------------
ICRA has revised the long term rating of '[ICRA]BB+' assigned to
the INR75.55 crore long term fund based and non fund based
facilities of Suryavanshi Spinning Mills Ltd. to '[ICRA]BB'. ICRA
has also revised the short term rating of '[ICRA]A4+' assigned to
the INR31.25 crore short term non-fund based facilities of SVSML
to '[ICRA]A4'. The outlook on the long-term rating is Stable.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Term loans 23.15 Revised to[ICRA]BB (Stable)
from [ICRA]BB+
Cash credit limits 48.00 Revised to[ICRA]BB (Stable)
from [ICRA]BB+
Long term non fund 4.40 Revised to[ICRA]BB (Stable)
based limits from [ICRA]BB+
Short term non fund 31.25 Revised to [ICRA]A4 from
based limits [ICRA]A4+
The rating revision takes into account the losses in the 9 months
ending December-13 largely on account of unavailability of power
due to the adverse power situation in Andhra Pradesh and the
expectation of continued constrained power supply over the near
term which would impact margins.
The ratings also continue to be constrained by the high
competitive intensity primarily due to fragmented nature of the
industry which restricts the ability of the players to pass on
hikes in input costs thus exposing the margins of the company to
fluctuations in the raw material prices. The rating is also
constrained by the stretched gearing of the company combined with
low profitability during the year resulting into weak interest and
debt coverage indicators.
The rating however draws comfort from extensive experience of the
company of over four decades in the spinning industry. The rating
also takes into account the diversified product portfolio of SVSML
comprising blended, synthetic and cotton yarn along with garments.
The strong farmer base which SVSML developed over a period of time
is considered as a positive.
SVSML was established in 1978 and is engaged in the production of
yarn and garments. It has an installed capacity of 98,288 spindles
in case of yarn and 21 lakh pieces in case of garments. SVSML has
three spinning units at Bhongir (AP), Aliabad (AP) and Rajna (MP).
Out of the 98,288 spindles, 32,976 spindles produce blended (P/C)
and synthetic - both polyester and poly viscose. The remaining
65,312 are used for production of cotton yarn. The company has
reported an operating income of Rs.197.3 crore and a profit before
tax of INR-4.47 crore for the 9M ending December-13 on provisional
basis.
UNIQUE STRUCTURES: ICRA Cuts Rating on INR26.5cr Loan to 'BB+'
--------------------------------------------------------------
ICRA has revised the long term rating outstanding on the INR26.50
crore fund based limits of Unique Structures & Towers Limited from
'[ICRA]BBB-' to '[ICRA]BB+'. The outlook on the long term rating
is stable.
Amount
Facilities (INR Cr) Ratings
---------- -------- -------
Fund Based Limits 26.50 Revised from [ICRA]BBB-
(Stable) to [ICRA]BB+
(Stable)
Non Fund Based- 39.70 Revised from A3 to A4+
Limits
ICRA has also revised the short term rating outstanding on the
INR39.70 crores non fund based bank facilities of USTL from
'[ICRA]A3' to '[ICRA]A4+'.
The rating downgrade factors in the intensely competitive and
working capital intensive nature of the T&D EPC segment in which
the company is operating as a relatively new entrant. This apart,
delays in completion of a few projects it was executing coupled
with a change in IEEMA basis of the price change calculation for
projects which have price variation clauses resulted in a pressure
on profitability in FY 2012, which is expected to be sustained in
the near term. Furthermore, high receivables mainly from public
utilities have resulted in high working capital (WC) intensity of
operations , which coupled with a moderate growth in the turnover
has resulted in limited cash generation from operations. This in
turn has resulted in higher gearing, arising out of debt funding
of working capital requirements, and decline in coverage
indicators. The ratings nevertheless take comfort from the
established presence of the company in the tower parts
manufacturing business, strong relationship with a client base
which consists chiefly of State Electricity Boards (SEB) and
Public sector undertakings (PSU), and positive demand outlook of
power transmission and distribution (T&D) business.
The company's ability to protect its margins in face of
competitive pressures and raw material price variation, and manage
its working capital requirements will remain the key rating
drivers. Company Profile Unique Structures & Towers Limited,
Raipur (C.G.) formerly known as Unique Rolling Mills Pvt. Ltd.,
started as a Steel Re-Rolling Mill at Raipur (C.G.) in the year
1985. In 1995, the Company established a Galvanized Steel
Structures Fabrication Unit, especially for Extra High Voltage
Transmission Lines and Sub-Stations / Switchyard. and since then,
the Company has been regularly supplying Galvanized Steel
Structures to various State Electricity Boards, Power Grid
Corporation of India Limited, Indian Railways, Department of
Telecommunication, Corporate Customers etc. Apart from
manufacturing, USTL has also ventured into the field of turnkey
erection of EHV Transmission lines in the year 2006.
Recent Results
USTL has posted a net profit of INR0.45 on an operating income of
INR100.52 crore during 2011-12 as against profit after tax of
INR2.19 crore on operating income of INR79.94 crore during 2010-
11.
=========
J A P A N
=========
EACCESS LTD: S&P Keeps 'BB+' CCR on CreditWatch Developing
----------------------------------------------------------
Standard & Poor's Ratings Services kept its 'BB+' long-term
corporate credit and 'BB' long-term debt ratings on Japan-based
Internet service provider eAccess Ltd. on CreditWatch with
developing implications.
The action reflects the status of an acquisition of U.S.-based
wireless company Sprint Nextel Corp. (B+/Watch Pos/--) by eAccess'
ultimate parent, Softbank Corp. (BBB/Watch Neg/--), as still
remaining subject to various approvals, including regulatory
review. Accordingly, S&P believes it can resolve the CreditWatch
status on its ratings on eAccess when it removes its ratings on
Softbank from CreditWatch. S&P placed its ratings on eAccess on
CreditWatch developing on Oct. 17, 2012, after Softbank, a Japan-
based telecommunications and Internet company, announced its plan
to acquire Sprint Nextel.
S&P assess the stand alone credit profile (SACP, in the absence of
extraordinary support from a parent) for eAccess as 'bb'. S&P
bases its assessment of the 'bb' SACP for eAccess on the company's
weak market position, partly offset by Softbank's ongoing support
in operations, and its increasing capital expenditures and growing
financial burden to make use of its spectrum. S&P also assess the
company as a highly strategic subsidiary within the Softbank
group. Accordingly, S&P incorporates extraordinary support from
Softbank into its corporate credit rating on eAccess. EAccess'
spectrum is important for Softbank to maintain and improve its
mobile communication business, in S&P's view. S&P expects
Softbank group to use eAccess' brands, network, and spectrum more
effectively. In turn, Softbank's strong marketing capabilities
will help eAccess grow its customer base over the next two to
three years, in S&P's view. As a result, S&P expects integration
of eAccess and Softbank to proceed. At the same time, however,
eAccess' brand and business on a stand-alone basis is of limited
scale within the Softbank group. As a result, S&P considers
eAccess of high strategic importance to the Softbank group but not
to a level of importance and integration as high as a core
subsidiary. S&P's assessment of eAccess as a highly strategic
subsidiary of Softbank allows S&P to set its corporate credit
rating on it one notch below of that on Softbank unless S&P lowers
its corporate credit rating on Softbank to the same level as the
SACP for eAccess or below. EAccess may speed up capital
investment, and S&P expects Softbank to support the company
financially when necessary.
S&P believes it can resolve the CreditWatch status on its ratings
on eAccess when it removes its ratings on Softbank from
CreditWatch. Accordingly, if Softbank's acquisition of Sprint
Nextel proceeds, S&P expects to lower its corporate credit rating
on Softbank to 'BB+' and its corporate credit rating on eAccess to
'BB', which would match the SACP for the company. On the other
hand, if the acquisition does not proceed, S&P would likely keep
its corporate credit rating on Softbank at 'BBB' and raise its
corporate credit rating on eAccess to 'BBB-'.
SOFTBANK: S&P Likely to Cut Rating to 'BB+' Upon Sprint Purchase
----------------------------------------------------------------
Standard & Poor's Ratings Services kept its 'BBB' long-term
corporate credit and senior unsecured debt ratings on Softbank
Corp. on CreditWatch with negative implications.
Softbank's acquisition of U.S.-based Sprint Nextel Corp. (B+/Watch
Pos/--), the third largest wireless service provider in the U.S.,
remains subject to various approvals, including the Federal
Communications Commission's (FCC) ongoing regulatory review. S&P
expects to resolve the CreditWatch status when the transaction, if
it proceeds, closes. S&P believes this would most likely occur in
mid-2013. S&P placed the ratings on Softbank on CreditWatch
negative on Oct. 12, 2012, after Softbank announced it was in
discussions to invest in Sprint Nextel.
Standard & Poor's has assessed the Sprint acquisition's impact on
both Softbank's business and financial risk profiles. If the
transaction proceeds, S&P expects to lower its long term corporate
credit ratings on Softbank to 'BB+' based on a "satisfactory"
business risk profile and "significant" financial risk profile.
S&P bases the likelihood it will lower its ratings on Softbank to
'BB+' on the following base-case scenario.
First, S&P's view of Softbank group's "satisfactory" business risk
profile incorporates the following factors:
-- Softbank's strong market position in mobile communications
in Japan;
-- Sprint Nextel's exposure to intense competition in the U.S.
market, which is unlikely to subside substantially in the
next two to three years;
-- A likelihood that Sprint Nextel's operating performance and
profitability will rebound in 2013;
-- Certain cost savings and other benefits S&P expects from a
merger of the two companies, considering the combination
will create the world's third-largest mobile phone provider
by selling units; and
-- A likely benefit to Sprint Nextel's business risk profile
if its proposed acquisition of U.S.-based wireless Internet
service provider Clearwire Corp. (CCC/Watch Pos/--)
proceeds.
Sprint Nextel's EBITDA margin is significantly below that of
Softbank and has recently come under pressure from full-fledged
services on Long-Term Evolution (LTE) data transmission networks
and increased costs to acquire customers. But S&P expects
subscription growth and greater efficiency in network operations
to somewhat improve its operating performance and profitability.
Standard & Poor's believes Clearwire is of high strategic value to
both Softbank and Sprint Nextel because it holds deep spectrum
resources and because its Time-Division LTE network is 100%-
compatible with Advanced eXtended Global Platform, a network that
Softbank equity method subsidiary Wireless City Planning Inc.
operates. If these acquisitions go ahead, Sprint Nextel's "fair"
business risk profile, based on the factors above, will pressure,
but not trigger, a change in Softbank's business risk profile,
which is at the upper end of S&P's "satisfactory" score. In S&P's
view, integration risk will not materially damage Softbank's
business risk profile, because the company has a record of
improving operating performance through its many business
acquisitions. S&P notes, however, that this is Softbank's first
major offshore acquisition, which generates additional execution
risks for the group.
Conversely, S&P believes Softbank's financial risk profile, which
S&P assess as "intermediate," will likely deteriorate after the
acquisition, reflecting the following factors:
-- Softbank's debt will increase materially because it will
primarily finance the $20.1 billion cost of purchasing
Sprint Nextel with debt;
-- Sprint Nextel has an "aggressive" financial risk profile, a
weak capacity to generate cash flow, and high debt ratios;
and
-- Softbank's financial burden on a consolidated basis will
increase further owing to Sprint Nextel's proposed
acquisition of Clearwire, which has a"highly leveraged"
financial risk profile.
At the same time, Standard & Poor's believes consolidated EBITDA
for Softbank will strengthen following the acquisition because the
operating performance of both Softbank and Sprint Nextel is
improving. S&P projects Softbank's debt to EBITDA (after
adjustments including for lease and pension liabilities and to
subtract surplus cash) will be around the mid-4.0x level as of the
end of fiscal 2013 (ending March 31, 2014), but S&P expects it to
improve to below 4.0x by the end of fiscal 2015. Standard &
Poor's anticipates that Softbank's financial risk profile will
likely weaken after the acquisition but only to "significant,"
reflecting S&P's views that debt to EBITDA for the company is
likely to improve materially in the next two years, liquidity is
likely to remain "adequate," and the significant market value of
Softbank's listed subsidiaries may buffer its financial position.
Sprint Nextel's acquisition of Clearwire and the FCC's review will
be key factors in S&P's analysis. S&P intends to resolve
Softbank's CreditWatch status around mid-2013, when S&P believes
Softbank's acquisition of Sprint Nextel, if it proceeds, is likely
to conclude. If the transaction goes ahead and S&P resolves the
CreditWatch status, it expects to lower its corporate credit
ratings on Softbank to 'BB+'.
====================
N E W Z E A L A N D
====================
MAINZEAL PROPERTY: Creditors Face "Substantial Shortfall"
---------------------------------------------------------
William Mace at Stuff.co.nz reports that the mood at the meeting
of Mainzeal creditors in Auckland was downcast as those owed money
by the failed construction company realised it will be difficult
to get any of their money back.
Liquidators from BDO told about 200 creditors that they are
committed to realising the company's assets, but still predict a
"substantial shortfall" for unsecured creditors.
Liquidators Andrew Bethell, Brian Mayo-Smith and Stephen Tubbs
faced questions from creditors on whether they would be likely to
get any money out of the failed company.
Mr. Mayo-Smith said it was too early to say for certain how much
would be clawed back, but the value of assets listed on the
companies' books were not likely to be fully realised.
"When you look at the statement of affairs there's some
NZ$70 million-odd in the nature of inter-company assets whose
value is obviously questionable," the report quotes Mr. Mayo-Smith
as saying. "There's also the issue of about NZ$35 million of
debtors and retention [payments] and I don't think you have to be
a rocket scientist [to realise] when a company goes into
receivership and a lot of those contracts are not completed that
the recovery of that is doubtful."
According to the report, Mainzeal's remaining director, Richard
Yan, and former directors Jenny Shipley, Paul Collins, Peter Gomm
and Clive Thirlby were not at the meeting, but the liquidators
said they had offered assistance in the liquidators' process.
The liquidators said they were investigating questionable related-
party transactions, the report relays.
At a vote at the meeting, Stuff.co.nz says, BDO was retained as
liquidator, and seven creditors or their representatives were
elected to a creditors committee to liaise with the liquidators.
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.
=================
S I N G A P O R E
=================
AKAI SALES: Members' Meeting Set for April 18
---------------------------------------------
Members of Akai Sales Pte Ltd will hold a meeting on April 18,
2013, at 11:30 a.m., at FTI Consulting (Singapore) Pte Ltd, 8
Shenton Way, Level 17-02A, AXA Tower, in Singapore 068811.
At the meeting, Yit Chee Wah, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.
AURORA AIRLEASING: Creditors' Proofs of Debt Due April 29
---------------------------------------------------------
Creditors of Aurora Airleasing A Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by April 29, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
AURORA AIRLEASING B: Creditors' Proofs of Debt Due April 29
-----------------------------------------------------------
Creditors of Aurora Airleasing B Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by April 29, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
AURORA AIRLEASING C: Creditors' Proofs of Debt Due April 29
-----------------------------------------------------------
Creditors of Aurora Airleasing C Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by April 29, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
AURORA AIRLEASING D: Creditors' Proofs of Debt Due April 29
-----------------------------------------------------------
Creditors of Aurora Airleasing D Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by April 29, 2013, to be included in the company's dividend
distribution.
The company's liquidators are:
Bob Yap Cheng Ghee
Tay Puay Cheng
Wong Pheng Cheong Martin
c/o 16 Raffles Quay #22-00
Hong Leong Building
Singapore 048581
*********
Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable. Those
sources may not, however, be complete or accurate. The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication. Prices reported are not intended to reflect actual
trades. Prices for actual trades are probably different. Our
objective is to share information, not make markets in publicly
traded securities. Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind. It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.
A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged. Send announcements to
conferences@bankrupt.com
Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets. A company may establish reserves on its balance
sheet for liabilities that may never materialize. The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.
*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, 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
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.
TCR-AP subscription rate is US$775 for 6 months delivered via e-
mail. Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each. For subscription information, contact
Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200.
*** End of Transmission ***