/raid1/www/Hosts/bankrupt/TCRAP_Public/130411.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 11, 2013, Vol. 16, No. 71
Headlines
A U S T R A L I A
BILLABONG INT'L: In Talks With Sycamore Over $300MM Takeover
LIBERTY 2013-2: S&P Assigns Prelim. BB Rating on Class E Notes
LM INVESTMENT: ASIC Suspends AFS License for Two Years
PAPERLINX LTD: Taps Moelis to Explore Funding Options
PARK HOMES: EMAC Systembuilt Buys Mornington Park Unit
ST BARBARA LTD: Moody's Rates $250MM Senior Note Issuance 'B2'
* Fitch Sees Slight Slump in Australian Mortgage Performance
* Moody's Reports on Australian RMBS, ABS and Covered Bond Risks
C H I N A
BAOXIN AUTO: 2012 Results No Impact on Ba3 Long-Term CFR
CHINA OIL: Moody's Assigns Ba1 CFR; Outlook is Stable
CHINA OIL: S&P Assigns 'BB+' Corp. Credit Rating; Outlook Stable
H O N G K O N G
PET PARENTS: Court Enters Wind-Up Order
PETS CENTRAL: Court Enters Wind-Up Order
RINGTOYS LIMITED: Court Enters Wind-Up Order
SAMPSON COMPANY: Members' Final Meeting Set for May 8
SMART EMPIRE: Members' Final Meeting Set for April 29
SOLARI COMPUTER: Court Enters Wind-Up Order
SULINGTON LIMITED: Ying and Chan Step Down as Liquidators
SUMISHO INTERNATIONAL: Hiroshi Ebata Steps Down as Liquidator
SUMMIT MASS: Creditors' Proofs of Debt Due May 20
TAI CHONG: Kwan Kwok Wah Steps Down as Liquidator
I N D I A
ANAND MOULD: CARE Reaffirms 'B+' Rating on INR4.5cr Loan
AQUATECH SOLUTIONS: CARE Assigns 'C' Rating to INR10cr Loan
COIMBATORE INTEGRATED: CARE Puts 'D' Ratings on INR17.71cr Loans
IDEAS ENGINEERS: CARE Rates INR2.00cr Loan at 'CARE BB'
KARNATAKA HYBRID: CARE Assigns 'BB' Rating to INR9.27cr Loan
KINGFISHER AIRLINES: Banks Push Effort to Foreclose on Collateral
MAYUR SEEDS: CARE Assigns 'B-' Rating to INR4cr Loan
NAND BUILDERS: CARE Assigns 'B+' Rating to INR5.9cr LT Loan
RAJLAXMI AGROTECH: CARE Rates INR2.5cr Loans at 'CARE B-'
SAWAR LALL: CARE Rates INR8.09cr LT Loan at 'CARE B'
SHIVANI COTEX: CARE Rates INR5.58cr Loan at 'CARE B+'
STAR WIRE: CARE Reaffirms 'BB-' Rating on INR43.44cr Loan
VERSATILE WIRES: CARE Rates INR4.89cr LT Loan at 'CARE B'
N E W Z E A L A N D
ZAGGERS CAFE: Landlord Places Cafe in Receivership
* NEW ZEALAND: Tax Issues Push More Companies to Liquidation
X X X X X X X X
BA PROVINCIAL: Lautoka Court Grants Stay Order on Liquidation
PAKISTAN MOBILE: 2012 Results Support B2 CFR and Negative Outlook
* Natural Disasters No Impact on Fitch Structured Finance Ratings
- - - - -
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A U S T R A L I A
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BILLABONG INT'L: In Talks With Sycamore Over $300MM Takeover
------------------------------------------------------------
The New York Times' DealBook reports that Billabong International,
the Australian surfwear company, whose shares have fallen around
65% since it rejected a $824 million takeover offer from the
private equity firm TPG Capital last year, said on Tuesday that it
was in talks to sell itself for $300 million.
DealBook relates that Billabong said the discussions were with a
group led by Paul Naude, the former head of its American
operations, and the buyout firm Sycamore Partners Management, and
would last for 10 days.
According to the report, the consortium has offered to buy the
struggling retailer for 60 Australian cents a share (about 63
American cents), an 18% discount on Billabong's closing share
price on April 2 before the stock was suspended.
DealBook notes that Billabong has fallen on difficult times
because of changing consumer tastes and the financial crisis. It
has closed stores and sold assets as part of an effort to
restructure the company.
SMH reported last month that the company's path to redemption got
tougher after the surfwear group downgraded earnings guidance and
said a AUD537 million loss for the half-year put it in breach of
debt covenants. The breach led its banks to seek a secured charge
over most of the business, SMH related.
Based in Australia, Billabong International Limited (ASX:BBG) --
http://www.billabongbiz.com/-- is engaged in the wholesaling and
retailing of surf, skate, snow and sports apparel, accessories and
hardware, and the licensing of its trademarks to specified regions
of the world.
LIBERTY 2013-2: S&P Assigns Prelim. BB Rating on Class E Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
ratings to eight of the nine classes of residential mortgage-
backed securities (RMBS) to be issued by Liberty Funding Pty. Ltd.
in respect of Liberty Series 2013-2 Trust. Liberty Series 2013-2
Trust is a securitization of nonconforming and prime residential
mortgages originated by Liberty Financial Ltd.
The preliminary ratings reflect:
-- S&P's view of the credit risk of the underlying collateral
portfolio, including the fact that this is a closed
portfolio, which means no further loans will be assigned to
the trust after the closing date.
-- S&P's view that the credit support is sufficient to
withstand the stresses it applies. This credit support
comprises mortgage insurance for 19.4% of the portfolio,
which covers 100% of the face value of those loans, their
accrued interest, and reasonable costs of enforcement, and
note subordination for the class A1, class A2, class A3,
class B, class C, class D, class E, and class F notes.
-- S&P's expectation that the various mechanisms to support
liquidity within the transaction, including an amortizing
liquidity facility equal to 4.0% of the invested amount of
class A1, class A2, class A3, class B, class C, class D,
class E, and class F notes and the stated amount of class G
notes, subject to a floor of A$600,000, and principal
draws, are sufficient under our stress assumptions to
ensure timely payment of interest.
The provision of a reserve account established and maintained
through the trapping of excess spread on each payment date. The
reserve account may be utilized to meet current loan losses or as
liquidity support. The benefit of a fixed-to-floating interest-
rate swap to be provided by Commonwealth Bank of Australia, to
hedge the mismatch between receipts from any fixed-rate mortgage
loans and the variable-rate RMBS.
A copy of Standard & Poor's complete report for Liberty Series
2013-2 can be found on Global Credit Portal, Standard & Poor's
Web-based credit analysis system, at:
http://www.globalcreditportal.com
The issuer has not informed Standard & Poor's (Australia) Pty
Limited whether the issuer is publically disclosing all relevant
information about the structured finance instruments the subject
of this press release or whether relevant information remains non-
public.
STANDARD & POOR'S 17G-7 DISCLOSURE REPORT
SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and a
description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.
The Standard & Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:
http://standardandpoorsdisclosure-17g7.com/1461.pdf
REGULATORY DISCLOSURES
Please refer to the initial rating report for any additional
regulatory disclosures that may apply to a transaction.
PRELIMINARY RATINGS ASSIGNED
Class Rating Amount (mil. A$)
A1 AAA (sf) 100.0
A2 AAA (sf) 175.0
A3 AAA (sf) 150.0
B AA (sf) 34.0
C A (sf) 18.0
D BBB (sf) 9.5
E BB (sf) 6.0
F B (sf) 3.0
G N.R. 4.5
N.R.--Not rated.
LM INVESTMENT: ASIC Suspends AFS License for Two Years
------------------------------------------------------
The Australian Securities and Investment Commission has suspended
the Australian financial services (AFS) license of LM Investment
Management Limited (LM) for two years.
"The terms of the AFS license suspension do allow the Voluntary
Administrators to provide financial services such as transfer to a
new responsible entity, investigating or preserving the assets or
winding up the registered managed investment schemes operated by
LM," ASIC said in a statement.
"ASIC is continuing its inquiries in relation to the conduct of LM
and will make no further comment at this time."
Under section 915B(3)(b) of the Corporations Act 2001
(Corporations Act), ASIC can suspend or cancel an AFS licence if,
among other things, an entity becomes an externally-administered
body corporate.
Under section 915B(3)(b) of the Corporations Act the appointment
of the Voluntary Administrators gave ASIC the power to suspend
LM's AFS license without a hearing.
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 on March 19, 2013, appointed John Park and Ginette
Muller of FTI Consulting as voluntary administrators, blaming the
move on liquidity problems caused by a smear campaign.
LM is the responsible entity of these registered managed
investment schemes:
-- LM Cash Performance Fund;
-- LM First Mortgage Income Fund;
-- LM Currency Protected Australian Income Fund;
-- LM Institutional Currency Protected Australian Income Fund;
-- LM Australian Income;
-- LM Australian Structured Products Fund; and
-- The Australian Retirement Living Fund.
LM also operates the unregistered LM Managed Performance Fund.
PAPERLINX LTD: Taps Moelis to Explore Funding Options
-----------------------------------------------------
Gillian Tan at The Wall Street Journal reports that Paperlinx
Limited is set to appoint Moelis & Co to assess its funding
options.
The Journal says Paperlinx's profitability has been hurt by
consumers spending less on paper products such as documents and
glossy reports, choosing instead to publish and distribute
material online. The company has been selling assets to raise
money and is targeting more sales of non-paper products such as
signage and packaging, the report relates.
About PaperlinX Limited
Based in Australia, PaperlinX Limited (ASX:PPX) --
http://www.paperlinx.com.au/-- is a fine paper merchant and
manufacturer of communication and packaging paper. PaperlinX
employs over 9,600 people in 28 countries.
PaperlinX reported an annual loss of AUD108 million in the 2011
financial year, a loss of AUD225 million in 2010, and a loss of
AUD798 million in 2009.
PaperlinX booked an annual loss of AUD266.7 million for the year
to June 30, 2012, after writing off the value of its European
operations, smh.com.au disclosed.
In February, AAP relates, it posted a first half loss of
AUD57.3 million and said it hoped to return to profitability in
2014 following a major restructure.
PARK HOMES: EMAC Systembuilt Buys Mornington Park Unit
------------------------------------------------------
Nick Clark at themercury.com.au reports that one of the companies
associated with the collapsed Park Homes group has been sold to an
interstate company.
Modular home builder EMAC Systembuilt Group has been announced as
the buyer of Mornington Park Homes Pty Ltd, the report says.
themercury.com.au relates that a meeting will be held today, April
11, with former Park Homes employees with a view to some staff
being re-employed and the business continuing.
According to the report, a notice to the Australian Securities and
Investments Commission on April 9 revealed that receiver manager,
Robert Kirman of McGrathNicol, had ceased to act for Park Land
Developments Pty Ltd.
The receivership of a number of other companies in the group is
continuing, the report notes.
The sale price is not expected to be released, themercury.com.au
says.
ST BARBARA LTD: Moody's Rates $250MM Senior Note Issuance 'B2'
--------------------------------------------------------------
Moody's Investors Service assigned a definitive B2 corporate
family rating to St Barbara Limited. At the same time Moody's has
assigned a definitive B2 long-term rating to the company's $250
million Senior Secured Notes issuance. The outlook is stable.
The notes rated are:
$250 million 8.875% Senior Secured Notes due 15 April 2018.
The net proceeds of the notes will be used to repay existing
borrowings under St Barbara's existing AUD150 million Syndicated
Debt Facility, provide cash collateralization for the existing
AUD20 million performance bond facility and for general corporate
purposes, which Moody's expects will include funding the company's
growth initiatives.
The definitive CFR and long-term ratings confirm the provisional
ratings assigned on March 15, 2013.
Ratings Rationale:
"St Barbara's B2 corporate family rating reflects the company's
modest size, commodity and production concentration and exposure
to volatile gold prices" says Matthew Moore, a Moody's Assistant
Vice President -- Analyst. "The rating also reflects the potential
execution challenges around achieving targeted production and cash
cost levels at its recently acquired Pacific operations" Moore
adds.
"The rating is balanced by the established, relatively high margin
nature of the Australian operations, particularly the cornerstone
Gwalia asset" says Moore. The company has also benefited the
current strength in gold prices, which we anticipate will continue
to support earnings, cash flow generation and credit metrics over
the next 12 to 18 months.
The long-term rating assigned to the senior secured notes is the
same as the corporate family rating, reflecting the notes'
position as the material piece of debt in the capital structure.
"The stable outlook reflects our view that the price environment
for gold will remain favorable in the intermediate term and that
Australian assets will continue to support the Pacific assets
until they reach nameplate capacity and become cost competitive"
Moore adds.
The company is currently working to drive production increases at
its recently acquired Pacific mining operations, Simberi and Gold
Ridge, which will be critical to reducing unit costs at these high
cost assets. As production increases from these assets St
Barbara's production profile will have an increasing reliance on
the less traditional and higher risk mining jurisdictions of Papua
New Guinea and the Solomon Islands.
"St Barbara's credit metrics pro forma for the notes issuance are
strong for the rating, with Debt-to EBITDA of 1.7x and we expect
credit metrics under more conservative pricing scenarios to remain
moderate for the rating" says Moore. For example, we expect FY13
Debt-to-EBITDA to be around 3.0-3.5x under a scenario which
assumes a gold price of around $1,400/oz for the remainder of the
year and some delays to production and cost improvements
associated with the Pacific Assets.
An upgrade in the ratings or positive outlook could be considered
should the company successfully execute the integration of the
Pacific assets, reach name plate capacity within the specified
time frames and generate positive free cash flow while sustaining
Debt to EBITDA levels below 4.0x.
The ratings could be downgraded if SBL experiences significant
operational difficulties with the Pacific assets such that the
company is unable to reach name plate capacity and reduced per
unit costs within the specified ramp up period or if there is a
material deterioration in its liquidity position. A downgrade
would also be considered should adjusted Debt/ EBITDA be sustained
above 5.5x.
The principal methodology used in this rating was the Global
Mining Industry Methodology published in May 2009.
St. Barbara Limited is an Australian ASX listed gold producer and
explorer. SBL is headquartered in Melbourne, Australia and the
company's flagship operations are located in Leonora, Western
Australia, 240km north of Kalgoorlie. In FY12, SBL produced about
339koz of gold and generated about $541 million in revenues.
* Fitch Sees Slight Slump in Australian Mortgage Performance
------------------------------------------------------------
Fitch Ratings says that mortgage performance in Australia
deteriorated slightly in Q412, despite a low interest rate
environment, stable house prices and living costs as well as low
unemployment. The Dinkum Index, which records 30+ delinquencies in
the Australian prime RMBS sector, increased marginally to 1.46% in
Q412 from 1.36% in Q312, mainly driven by a 20bp increase in 30-59
days arrears.
There was no specific cause for the increase in 30-59 days
arrears, given Australia's stable macro-economic environment, but
at 0.69% in Q412 the arrears in this bucket were in line with the
average over the past five years.
Arrears of 90+ days improved by 8bp to 0.55%, the lowest level
since December 2010. Longer-term arrears decreased as the interest
rate was cut in 2012, more properties in possession were sold and
the consequent migration of loans out of the securitised mortgage
collateral increased in Q412.
However, the Dinkum Low-Doc Index deteriorated to 7.05% in Q412
from 6.98% Q312, driven by a continued shrinking mortgage pool.
Low-doc borrowers have historically taken longer to adjust their
spending and cure their delinquency status given the lumpy nature
of cash flow in this sector, which Fitch believes will continue to
be the case. Fitch expects the currently low-rate environment will
continue to bring relief to self-employed borrowers.
Australian delinquency rates continue to remain low relative to
other countries and are well within Fitch's expectations used to
derive its ratings for Australian RMBS transactions.
A seasonal increase in arrears due to holiday and Christmas
spending is expected in Q113, though Fitch expects this to be
partially mitigated by the December 2012 rate cut and some ongoing
impact from the October 2012 rate cut. Fitch expects arrears
levels to remain similar in 2013 compared with those in 2012.
* Moody's Reports on Australian RMBS, ABS and Covered Bond Risks
----------------------------------------------------------------
Moody's Investors Service says the level of set-off risk in
Australian residential mortgage backed securities (RMBS), asset
backed securities (ABS), and covered bond (CB) programs is
negligible, based on the inherent features of these transactions,
as well as their structural mitigants.
"For authorized deposit-taking institutions (ADI) set-off risks
are mitigated through origination by a special purpose vehicle
(SPV), or in the case of equitable assignment programs, through
title perfection, lack of mutuality and waiver of set-off
clauses," says Jennifer Wu, a Moody's Vice President and Senior
Credit Officer/Manager.
"In the case of non-ADIs, there are no set-off risks because the
issuers do not take deposits, sell insurance or engage in other
debt-incurring activities with borrowers, so no debt is owed to
the borrower to set-off," adds Wu.
Wu was speaking at the release of a new Moody's report titled,
"Moody's Analysis of Set-off Risk in Australian RMBS, ABS and
Covered Bonds".
The report notes that under some ADI-sponsored transactions, the
legal title to the collateral resides with an SPV, or one of its
subsidiaries, neither of which takes deposits, sells insurance nor
otherwise incurs debt vis-…-vis the borrowers. Therefore no debt
is owed to the borrower to set-off.
Moreover, some ADI-sponsored RMBS transactions have the legal
title to the collateral residing with the SPV.
In addition, all ADI-sponsored ABS transactions originate the
collateral in the subsidiary that is separately incorporated from
the deposit-taking institution.
=========
C H I N A
=========
BAOXIN AUTO: 2012 Results No Impact on Ba3 Long-Term CFR
--------------------------------------------------------
Moody's Investors Service says Baoxin Auto Group Limited's (LT
Corporate Family Ratings, Ba3) 2012 results were within
expectations and sees no immediate rating impact.
"Baoxin's 2012 results show good sales growth and strong inventory
management", says Lina Choi, a Moody's Vice President and Senior
Analyst.
Baoxin's revenue grew 47% year-on-year, mainly due to the organic
expansion of its network. This growth rate further reflected
strong sales execution and strong demand for luxury cars in China.
Moody's expects Baoxin's revenue to grow by more than 50% in 2013,
when it will enjoy a full-year contribution from NCGA Holdings
Ltd.
Inventory days-on-hand was 38.2 days, better than 41 days in June
2012, and compared with over 40 days for other auto dealerships.
Such a situation indicates Baoxin's strong inventory management
and operating efficiency.
"However Baoxin experienced declining gross margins due to
intensive price competition and increased debt leverage as result
of its NCGA acquisition", says Ping Luo, a Moody's Vice President
and Senior Analyst, also the local market analyst for Baoxin.
Specifically, Baoxin's 2012 gross margin declined to 8.7% from
10.7% in 2011. If China's auto manufacturers adjust their supply
according to market condition and Baoxin can turn around NCGA,
then its gross margin will recover to around 10% in the next two
years.
Boaxin's debt increased significantly to RMB6.9 billion from
RMB2.4 billion in 2011 due to the NCGA acquisition, its fast
network expansion, and the related increased working capital
requirements for its enlarged operation.
The acquisition of NCGA resulted in debt/EBITDA deteriorating to
over 5x from 2.8x in 2011.
Moody's expects Baoxin to slow its expansion in 2013, keep its
gross debt under control, and turn around NCGA, such that it will
maintain debt/EBITDA of around 3x and EBITDA/Interest of around
5x, which are consistent with its Ba3 rating.
The principal methodology used in this rating was Global
Automotive Retailer Industry Methodology published in December
2009.
Founded in 1999, Baoxin Auto Group Limited is one of the top
players in the luxury car dealership market in China, operating 75
stores at end-2012. Baoxin listed on the Hong Kong Stock Exchange
in December 2011. The company reported revenue of RMB18.1 billion
and total assets of RMB16.6 billion for FY2012.
CHINA OIL: Moody's Assigns Ba1 CFR; Outlook is Stable
-----------------------------------------------------
Moody's Investors Service assigned a first-time Ba1 corporate
family rating to China Oil And Gas Group Limited. At the same
time, Moody's has assigned a (P)Ba1 provisional senior unsecured
bond rating.
The outlook for these ratings is stable.
Ratings Rationale:
"COG's Ba1 corporate family rating reflects the steady revenue
contribution from the company's operating natural gas projects,
which encompass its downstream operations in piped city gas
distribution, its gas stations, as well as its midstream
operations in branch pipeline transmission and liquefied natural
gas (LNG) processing and logistics", says Ivan Chung, a Moody's
Vice President and Senior Credit Officer.
COG started its piped city gas distribution projects in 2002. In
2012, its gas sales were 1,930 million cubic meters, covering
523,400 households and 4,690 commercial and industrial users and
other users.
"The working relationship with Kunlun Energy and the favorable
operating environment in China's gas distribution sector also
support the rating," says Chung.
Kunlun Energy, a subsidiary of China National Petroleum
Corporation (CNPC, Aa3/Positive), has been a key joint venture
partner of COG since 2002. This relationship provides COG with
good access to upstream resources, core pipeline networks, and
industry expertise. In addition, CNPC's subsidiaries grant loans
to COG at favorable interest rates.
Moody's notes that another positive rating driver comes from the
consideration that the Chinese government has launched supportive
policies and investments to boost the use of natural gas in recent
years. Natural gas accounted for 4.5% of China's primary energy
consumption in 2011 and this ratio is targeted by the government
to reach 7.5% in 2015, compared with a global average 23.7%. In
2011, total natural gas consumption in China was 131 billion cubic
meters and is expected to reach 230 billion in 2015.
"However, the rating is constrained by the company's small
operating scale and concentration in economically less developed
Qinghai Province," says Chung.
COG's gas sales volume accounted for less than 1.5% of total
natural gas consumption in China in 2011 and its contribution in
percentage terms will likely remain at this level for the next
three years. Sales revenue from Qinghai Province contributed to
43% of its gas sales revenue in 2012 and the ratio is projected to
fall to 30%- 40% in coming two to three years.
"Furthermore, the rating factors in the presence of considerable
minority interests in China City Natural Gas Investment Group
(CCNG) and the resultant adjustments in credit metrics," Chung
adds.
CCNG is 51/49 joint venture between COG and Kunlun Energy. The
bulk of COG's consolidated revenue and EBITDA is contributed by
CCNG. Nevertheless, after adjusting for the minority interests,
projected debt to EBITDA and EBITDA interest coverage would be
3.5-5x and 4.5-5.5x in the next three years, taking into account
the proposed bond issuance. These ratios would be within the
expectations for a Ba1 rating.
The stable outlook reflects Moody's expectation that COG will
maintain its good working relationship with Kunlun Energy, that it
will preserve its financial discipline and sufficient liquidity at
the holding company level, and that it will not engage in
aggressive debt-funded acquisitions. It also includes Moody's
expectation that China will continue its supportive regulatory and
tariff regimes for the industry.
Upward rating pressure would be limited in the near term, given
the company's small operating scale and geographic concentration.
It could emerge over time if 1) COG achieves its plan of building
a larger and geographically more diversified operating portfolio,
or 2) it lowers its reliance on CCNG, such that consolidated
revenue exceeds RMB12 billion, and revenue contributions from
Qinghai Province and CCNG are less than 30% and 60% respectively.
Financial indicators for an upgrade could include (FFO +
interest)/interest above 5x, debt/capitalization below 35%, and
debt/EBITDA below 2x, on a consistent basis.
The rating could be downgraded if (1) aggressive debt-funded
expansion projects or acquisitions occur, (2) its relationship
with Kunlun Energy and CNPC deteriorates, (3) its liquidity
position weakens, excluding cash in CCNG, or (3) the regulatory
environment for natural gas distribution develops adversely.
Financial indicators for a downgrade could include (FFO +
interest) /interest below 2.5x, debt/capitalization above 50%, and
RCF/debt below 10%, on a consistent basis, or total unencumbered
cash and liquid securities held by the holding company and its
majority owned subsidiaries (other than CCNG) are less than RMB700
million.
The principal methodology used in this rating was Regulated
Electric and Gas Utilities published in August 2009.
China Oil And Gas Group Limited (COG) engages in the piped city
gas business, as well as the transportation and distribution of
compressed natural gas ("CNG"), liquefied natural gas ("LNG") and
liquefied petroleum gas ("LPG"). As at December 31, 2012, it had
51 piped city natural gas concession rights in 13 provinces and
one autonomous region, 36 CNG/LNG gas stations and natural gas
branch pipelines in seven provinces for mid-stream distribution .
Its piped city gas projects cover 523,400 households and 4,690
commercial and industrial customers and other users. In 2012, its
total gas sales volume was 1,930 million cubic meters.
COG was listed on Hong Kong Exchange in 1993 and began to engage
in the natural gas distribution business in 2002. Mr. Xu Tie-liang
is the largest shareholder and chairman with a 22.5% stake.
CHINA OIL: S&P Assigns 'BB+' Corp. Credit Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'BB+' long-term corporate credit rating to China Oil and Gas Group
Ltd. (COGG). The outlook is stable. At the same time, S&P
assigned its 'cnBBB+' long-term Greater China regional scale
rating to COGG. S&P also assigned its 'BB+' issue rating and its
'cnBBB+' Greater China regional scale rating to the company's
proposed senior unsecured notes.
"The rating on COGG reflects evolving regulatory risk in China,
the company's concentrated operation in Qinghai, and its
subordinated cash flow," said Standard & Poor's credit analyst
Johnson Ng. "COGG's monopolistic position in the piped city gas
projects it has secured, the company's secured gas supply, and its
stable margin temper these weaknesses."
S&P expects COGG to remain exposed to regulatory risk due to a
lack of transparency and consistency in the setting of city-gas
tariffs, and uncertainty over continuation of connection fees.
S&P believes the upstream price of natural gas (COGG's cost of
purchasing natural gas) is likely to rise because of increased
imports of higher-priced natural gas and a trial reform of the
pricing mechanism for natural gas that the government announced in
December 2011.
COGG has 51 concession rights in the piped city gas business in
China, but projects in Qinghai province (mainly capital city
Xining), a less developed region, account for the majority of the
company's gas sales volume and revenue. Most of COGG's piped city
gas projects are under a joint venture between COGG (51%) and
Kunlun Energy Co. Ltd. (49%). Kunlun Energy is a subsidiary (not
fully owned) of ultimate parent China National Petroleum Corp.
(CNPC). COGG can therefore only rely on the subordinated dividend
cash flow to service its debt obligations at the company level.
COGG's long-established working relationship and its long-term gas
supply contract with CNPC provide it with secured natural gas
supply.
COGG gains from its monopoly in cities where it has piped-gas
projects. The company's exclusive supply rights last 25-30 years
and provide sustainable revenue. The company also operates branch
pipelines in seven provinces, which generate stable cash flow in
the form of tolling revenue.
S&P expects COGG to continue to generate fairly stable operating
margin over the next few years because a high proportion (over
85%) of its revenue is from the sale of natural gas. S&P believes
the company will benefit from the Chinese government's promotion
of the use of clean energy, the country's still-low gas
penetration rate, ongoing urbanization, and economic growth.
Support also comes from improving natural gas infrastructure and
increased upstream gas supply. These factors support robust
demand for piped gas.
The issue rating on the proposed notes is the same as the
corporate credit rating. S&P expects COGG's ratio of priority
debt to total assets to remain below its threshold of 15% for
speculative-grade debt over the next two years.
"The stable outlook reflects our expectation that COGG will
continue to grow its piped city gas business in China mainly
through organic growth and maintain the current high cash balance
at the holding company level," said Mr. Ng. S&P expects COGG's
key credit metrics to remain commensurate with the rating despite
the proposed bond issuance.
S&P could consider lowering the rating on COGG if: (1) business
risks in the joint-venture company increase, for example if Kunlun
replicates the joint venture's business on its own; or (2) COGG
deviates from its current strategy by pursuing more debt-funded
expansion such that the ratio of funds from operations (FFO) to
total debt consistently stays below 20%.
The rating upside in the next 12 months appears to be limited as
COGG's capital expenditure is fairly large for constructing
pipelines and compressed liquefied gas/liquefied natural gas
stations. The company is therefore likely to be in free cash flow
deficit in the next couple of years at least. However, S&P could
consider upgrading COGG if it can generate positive free operating
cash flow on a sustainable basis, with the ratio of FFO to total
debt consistently above 30%.
================
H O N G K O N G
================
PET PARENTS: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on March 8, 2013, to
wind up the operations of Pet Parents Club (HK) Limited.
The company's liquidator is Lau Siu Hung.
PETS CENTRAL: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on March 18, 2013, to
wind up the operations of Pets Central North Point (HK) Limited.
The company's liquidator is Lau Siu Hung.
RINGTOYS LIMITED: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on Jan. 7, 2013, to
wind up the operations of Ringtoys Limited.
The company's liquidators are Wong Sun Keung and Tsui Mei Yuk
Janice.
SAMPSON COMPANY: Members' Final Meeting Set for May 8
-----------------------------------------------------
Members of Sampson Company Limited will hold their final meeting
on May 8, 2013, at 9:30 a.m., at 8th Floor, Prince's Building, 10
Chater Road, Central, in Hong Kong.
At the meeting, Patrick Cowley and Fergal Power, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.
SMART EMPIRE: Members' Final Meeting Set for April 29
-----------------------------------------------------
Members of Smart Empire Capital Limited will hold their final
meeting on April 29, 2013, at 10:00 a.m., at Unit D, 12th Floor,
Seabright Plaza, 9-23 Shell Street, in Hong Kong.
At the meeting, Chan Sek Kwan Rays, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.
SOLARI COMPUTER: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on Dec. 17, 2013, to
wind up the operations of Solari Computer Engineering Limited.
The company's liquidators are Wong Sun Keung and Tsui Mei Yuk
Janice.
SULINGTON LIMITED: Ying and Chan Step Down as Liquidators
---------------------------------------------------------
Ying Hing Chiu and Chan Mi Har stepped down as liquidators of
Sulington Limited on March 19, 2013.
SUMISHO INTERNATIONAL: Hiroshi Ebata Steps Down as Liquidator
-------------------------------------------------------------
Hiroshi Ebata stepped down as liquidator of Sumisho International
Petroleum (H.K.) Company Limited on March 19, 2013.
SUMMIT MASS: Creditors' Proofs of Debt Due May 20
-------------------------------------------------
Creditors of Summit Mass Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
May 20, 2013, to be included in the company's dividend
distribution.
The company's liquidator is:
Hung Chi Yuen Andrew
Room 1508, 15/F.
Solo Building
41-43 Carnarvon Road
Tsim Sha Tsui, Kowloon
Hong Kong
TAI CHONG: Kwan Kwok Wah Steps Down as Liquidator
-------------------------------------------------
Kwan Kwok Wah stepped down as liquidator of Tai Chong Development
(Group) Limited on Feb. 26, 2013.
=========
I N D I A
=========
ANAND MOULD: CARE Reaffirms 'B+' Rating on INR4.5cr Loan
--------------------------------------------------------
CARE reaffirms 'CARE B+' and 'CARE A4' to the Bank Facilities of
Anand Mould Steels Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 4.50 CARE B+ Reaffirmed
Short-term Bank Facilities 12.00 CARE A4 Reaffirmed
Proposed Short-term 3.00 CARE A4 Reaffirmed
Bank Facilities
Rating Rationale
The ratings assigned to the bank facilities of Anand Mould Steels
Private Limited are primarily constrained by its small scale of
operations and weak financial risk profile indicated by
fluctuating profitability, leveraged capital structure and
moderately stressed debt coverage indicators. The ratings are
further constrained by AMSPL's working capital intensive nature of
business along with the exposure to foreign exchange fluctuation
risk and cyclical steel industry.
These constraints far outweigh the benefits derived from long
track record of AMSPL, experienced promoters and established
relationship with reputed supplier.
The ability of AMSPL to increase scale of operations while
maintaining profitability margins and efficiently managing the
working capital cycle are the key ratings sensitivities.
Established in 1972 as a partnership firm, AMSPL is a sole
distributor of steel products manufactured by Schmiedewerke
Groditz Gmbh (Germany) in India since 1993. AMSPL has a warehouse
and cutting facility in Navi Mumbai (Maharashtra), along with
branches in Hyderabad (Andhra Pradesh) and Faridabad (Haryana).
AMSPL supplies mainly to original equipment manufacturers (OEMs)
of automobiles and white goods manufacturers.
AQUATECH SOLUTIONS: CARE Assigns 'C' Rating to INR10cr Loan
-----------------------------------------------------------
CARE assigns 'CARE C' and 'CARE A4' ratings to the bank facilities
of Aquatech Solutions Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 10.00 CARE C Assigned
Short-term Bank Facilities 2.50 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Aquatech Solutions
Private Limited are constrained by its weak financial risk profile
marked by stretched liquidity position, high gearing level and
weak debt coverage indicators coupled with frequent instances of
overdrawals in its Cash Credit (CC) limits. The ratings are
further constrained by delays in all of its ongoing projects
resulting in declining income levels.
The above constraints are partially offset by the experienced
promoters and modest track record of the company.
The ability of the company to improve its liquidity position along
with timely execution of its projects remains the key rating
sensitivity.
Aquatech Solutions Private Limited, incorporated in the year 2006,
is promoted by Mr. Suhas Joshi, Managing Director and is engaged
in the construction of sewage treatment plants on turnkey basis
for various government bodies and local municipal bodies in the
state of Maharashtra. ASPL is a registered Class I contractor with
Maharashtra Jeevan Pradhikaran (MJP). The company is engaged in
the design and construction of sewerage treatment plants and
underground sewage network system.
ASPL mainly utilizes a Cyclic Activated Sludge Treatment
technology, an advanced sequential batch reactor. The company has
a modest track record in similar line of operations and has
completed seven projects with an average volume of 3.22 million
liters per day (MLPD).
During FY12 (refers to the period April 1 to March 31), the
company reported a PAT of INR0.67 crore over the total income of
INR12.83 crore as against a PAT of INR0.81 crore over the total
income of INR18.94 crore. As per the 9MFY13 results, the company
has reported a PAT of INR0.75 crore over the net sales of INR17.99
crore.
COIMBATORE INTEGRATED: CARE Puts 'D' Ratings on INR17.71cr Loans
----------------------------------------------------------------
CARE assigns ratings on 'CARE D' rating assigned to Coimbatore
Integrated Waste Management Co Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 12.71 CARE D Assigned
Short-term Bank Facilities 5.00 CARE D Assigned
Rating Rationale
The ratings assigned to CIWMCPL are constrained by delay in
servicing of debt obligations in the past due to stretched
liquidity position of the company, high revenue concentration risk
with Coimbatore Municipal Corporation (CMC) being a sole customer
for CIWMCPL and net losses incurred in past years due to nascent
stage of operations.
However, the ratings continue to factor in the experience of the
promoters of CIWMCPL in waste management services.
Ability to regularize the debt servicing by improving the overall
liquidity profile of the company remains the key rating
sensitivity.
CIWMCPL is a Special Purpose Vehicle (SPV) incorporated on
Jan. 16, 2008 to undertake a waste management project in
Coimbatore. As on Dec. 31, 2012 Tatva Global Environment Limited
(T GEL) holds 99.98% stake in CIWMCPL and the balance is held by
Bharuch Enviro Infrastructure Limited. TGEL group comprises of
nine companies engaged in providing environment management
solutions for cities, townships, municipalities, industrial
estates, commercial, industrial and residential customers across
the country.
CIWMCPL reported a total operating income of INR14.93 crore and
net loss of INR8.21 crore in FY12 as against total operating
income of INR10.12 crore and net loss of INR4.22 crore in FY11.
IDEAS ENGINEERS: CARE Rates INR2.00cr Loan at 'CARE BB'
-------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Ideas Engineers.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 2.00 CARE BB Assigned
Short-term Bank Facilities 3.25 CARE A4 Assigned
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo a change in case of the withdrawal of the
capital or the unsecured loans brought in by the partners
in addition to the financial performance and other relevant
factors.
Rating Rationale
The ratings assigned to the bank facilities of Ideas Engineers
(IE) are constrained on account of limited track record of
operations of the firm coupled with relatively small scale and its
constitution as a partnership firm. The ratings are further
constrained due to the sector concentration risk and its presence
in a highly fragmented industry resulting in competition from
existing players. The ratings, however, derive strength from the
experience of promoters with strong technical background, moderate
financial risk profile marked by moderate profitability,
comfortable capital structure along with moderate liquidity
position, moderate order book position providing revenue
visibility in the short term and reputed client base.
The ability of the firm to enhance its scale of operation and
diversification of customers while maintaining the profitability
and capital structure remains the key rating sensitivity.
Established in 2008, Ideas Engineers is a partnership firm managed
by three partners Mr. Subhash R. Sarda, Mr. Sunil B. Gadekar and
Mr. Virendra Pratap Singh sharing profits equally. IE is an
Aurangabad based firm engaged in the business of
Engineering, Testing and Commissioning (ETC) contracts for
electrical projects for industries like sugar, cement, fertilizer
and metallurgical plants. The firm is also into supply of
electrical control panels, low voltage Power Control Centre (PCC),
Motor Control Centre (MCC), Distribution Boards, Bus-Ducts &
Control Desks coupled with designing, detail engineering and
drawing of electrical installation.
The firm reported a profit after tax (PAT) of INR0.62 crore on
total operating income (TOI) of INR28.65 crore in FY12 (refers to
the period April to March) against a PAT of INR0.25 crore on TOI
of INR15.21 crore in FY11.
KARNATAKA HYBRID: CARE Assigns 'BB' Rating to INR9.27cr Loan
------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Karnataka Hybrid Micro Devices Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 9.27 CARE BB Assigned
Short-term Bank Facilities 1.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Karnataka Hybrid
Micro Devices Limited is constrained by its small scale of
operations, customer concentration risk, declining profit margins
over the past three years, and risk associated with the adverse
movement in the foreign exchange rates. The ratings, however,
derive strength from the long standing experience of the promoters
and senior management team, reputed clientele with established
relationships, satisfactory order book position and satisfactory
debt coverage indicators.
The ability of the company to scale up its operations and maintain
its profitability margins in the face of increasing competition is
the key rating sensitivity.
Incorporated in 1992 by Dr. C G Krishnadas Nair, Karnataka Hybrid
Micro Devices Ltd. (KHMDL) is engaged in manufacturing of
Electronic Hybrid circuits, PCB (Printed Circuit Boards) and HCB
(Hybrid Micro Circuit board) using thick film technology.
KHMDL is engaged in the designing and manufacturing of thick film
hybrid circuit boards on ceramic substrates for chips and wire
technology. The company has a decade of experience and expertise
in the manufacturing of digital, analog and low power combination
circuits. KHMDL's facility is approved by the India n Space
Research Organization (ISRO) for hybrid microcircuits (hybrid
integrated circuit), Multi-Chip Modules (MCM) and simila r devic
es. KHMDL's pro duc ts c omply with the MIL-STD- 883 requirements
which establish uniform methods, controls, and procedures for
testing microelectronic devices suitable for use within Military
and Aerospace electronic systems. The company also has an in house
engineering team for product development.
During FY12 (refers to the April 01 to March 31), KHMDL reported a
total operating income of INR21.52 crore and a net profit of
INR0.38 crore.
KINGFISHER AIRLINES: Banks Push Effort to Foreclose on Collateral
-----------------------------------------------------------------
Anirban Chowdhury and Nupur Acharya at The Wall Street Journal
report that efforts by Indian liquor-industry billionaire Vijay
Mallya to keep his Kingfisher Airlines Ltd. a going concern are
facing a severe test.
The Journal says Indian banks owed part of the airline's
$2.5 billion in debt are increasing their efforts to foreclose on
collateral that back their loans.
According to the Journal, a consortium of Indian banks said
Tuesday that they recently sold 10 million shares in a chemical
company that is part of Mr. Mallya's business empire and had been
pledged for loans to help finance Kingfisher's expansion.
The move came after a court in Mumbai last week rejected a
petition from a company controlled by Mr. Mallya to block
Kingfisher's lenders from selling collateral, the report relates.
The Journal notes that United Breweries (Holdings) Ltd., a holding
company controlled by Mr. Mallya, had pledged shares in several
related companies to back the expansion of Kingfisher.
According to the news agency, a consortium of 15 lenders, led by
State Bank of India, recently sold around 10 million shares of
Mangalore Chemicals & Fertilizers Ltd. that had been pledged as
collateral for loans to Kingfisher, said Shyamal Acharya, deputy
managing director of the state-owned bank.
In a filing to Indian stock exchanges on Tuesday, the Journal
relates, Mangalore Chemicals said United Breweries' stake in the
chemical company had dropped to around 16% from roughly 25% at the
end of December. Three-quarters of United Breweries' remaining
stake is pledged with lenders, meaning that could be sold too.
The Journal relates that Mr. Acharya said the banks plan to serve
Kingfisher legal notice in the next couple of days to recover
their remaining debt. Once that notice is served, Kingfisher
Airlines will have 60 days to repay its debt, failing which, the
consortium can attempt to take possession of other pledged shares
and assets.
Mr. Acharya said in February that collateral pledged by companies
controlled by Mr. Mallya to back Kingfisher debt was valued at
about $1.1 billion, the Journal relays.
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.
MAYUR SEEDS: CARE Assigns 'B-' Rating to INR4cr Loan
----------------------------------------------------
CARE assigns 'CARE B-' and 'CARE A4' ratings to the Bank
Facilities of Mayur Seeds and Agritech.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long- term Bank Facilities 4 CARE B- Assigned
Short-term Bank Facilities 9 CARE A4 Assigned
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo change in the case of the withdrawal of
capital or the unsecured loans brought in by the partners in
addition to the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of Mayur Seeds and
Agritech are primarily constrained by the modest scale of its
operations in a highly fragmented and seasonal agro processing
industry and financial risk profile marked by highly leveraged
capital structure and long operating cycle. The ratings also
factor in vulnerability of MSA's profit margins to fluctuation in
prices of agriculture commodities.
The ratings, however, derive strength from the promoter's
experience in the industry, established track record of operations
and locational advantage being located in the soyabean growing
region.
Increase in the scale of operations, profitability and capital
structure while managing working capital efficiently are the key
ratings sensitivities.
Incorporated in April 2004, Indore (Madhya Pradesh)-based Mayur
Seeds and Agritech is partnership firm. MSA previously was set up
by Mr. Jagdish Chandra Khandelwal as a proprietorship firm in year
2002; later on, MSA was reconstituted as a partnership concern in
year 2004 with introduction of Mr. Rajesh Khandelwal as a partner.
MSA is engaged in the business of production, processing and
marketing of certified commercial seeds mainly soyabean and wheat
which are used by farmers for sowing agriculture crops. It sells
certified seeds under the brand name of 'Gold Mayur'. It has set
up a unit for grading and processing of seeds at Indore with an
installed capacity of 26,000 MTPA.
During FY12 (refers to the period April 1 to March 31), MSD
reported a total operating income of INR35.35 crore with a PAT of
INR0.14 crore as against a PAT of INR0.11 crore on a total
operating income of INR18.91 crore in FY11.
NAND BUILDERS: CARE Assigns 'B+' Rating to INR5.9cr LT Loan
-----------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Nand
Builders.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 5.90 CARE B+ Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Nand Builders is
primarily constrained on account of the modest booking status and
salability risk associated with its ongoing real estate project
'Nand Bhumi' coupled with inherent risk associated with the real
estate industry.
The rating, however, favorably takes into accounts the partners'
experience in real estate development industry and low project
implementation risk.
Successful completion of the project within envisaged cost
parameters along with timely receipt of booking advances and sale
of the balance units at envisaged prices are the key rating
sensitivities.
Rajkot-based NBS was incorporated as a partnership firm in January
2012. There are ten partners included in NBS out of which six
partners are actively involved who are currently looking after
overall operations. NBS is engaged in the real estate
development and is currently executing its first residential-cum-
commercial project named 'Nand Bhumi' at Rajkot, Gujarat which
comprises of 198 flats and eight shops.
The total salable area of the project is 1.99 lakh sq ft.
(approximately). NBS has received approvals for land and other
relevant clearances for the project. Only Business Use (BU)
permission is pending which would be received only after
completion of project.
RAJLAXMI AGROTECH: CARE Rates INR2.5cr Loans at 'CARE B-'
---------------------------------------------------------
CARE assigns 'CARE B-' and 'CARE A4' ratings to bank facilities of
Rajlaxmi Agrotech India Pvt. Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 2.50 CARE B- Assigned
Short-term Bank Facilities 9.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Rajlaxmi Agrotech
India Pvt Ltd are constrained on account of the working capital
intensive nature of operations leading to stressed liquidity
position, small scale of operations with limited presence in
the fertilizer value chain and susceptibility of margins to
volatility in the raw material prices. The ratings are further
constrained due to its presence in highly regulated market coupled
with geographical concentration risk. The ratings, however, derive
strength from the experience of the promoters in the fertilizer
industry through associate entity, reputed clientele base and
improving operational efficiency reflected in its improved
capacity utilization backed by high demand for fertilizer.
The ability of the company to increase its scale of operation
coupled with improvement in the profitability margins, effective
working capital management and any adverse government policies
towards the fertilizer industry regarding timely release of
subsidy are the key rating sensitivities.
Incorporated in 1995, RAIPL is engaged in the business of
manufacturing of fertilizers.
RAIPL was initially incorporated as a public limited company and
was subsequently converted into a private limited company on
December 16, 2011. In 2008, Mr. Ramesh Parsewar and Mr Sagar
Chidrawar, the present management took over the company as
the unit was shut down due to the losses incurred in the past, and
in the year 2009, the unit was modernized and resumed production.
RAIPL sells its finished products under a brand of 'Kisan Shakti'.
RAIPL's manufacturing unit is located in the Jalna district of
Maharashtra. As on Jan. 31, 2012, it has a total installed
capacity of 60,000 metric tonnes per annum (MTPA) of Single Super
Phosphate (both granulated and powder) with a capacity utilization
of 73%.
The company reported a profit after tax (PAT) of INR0.91 crore on
a total operating income (TOI) of INR39.77 crore in FY12 (refers
to the period April to March) against a PAT of INR0.69 crore on
TOI of INR25.39 crore in FY11.
SAWAR LALL: CARE Rates INR8.09cr LT Loan at 'CARE B'
----------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Sawar Lall
Singhania Memorial Trust.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 8.09 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Sawar Lall Singhania
Memorial Trust is primarily constrained on account of its modest
scale of operations with low enrolment of students in its school.
The rating is further constrained on account of the net deficit
from school operations, weak solvency position, debt funded
capital expenditure plan and increasing competition from existing
well established schools located in the nearby areas.
The rating, however, favorably takes into account the wide
experience of promoters in the education sector.
The ability of SLSMT to increase student enrolments in view of
highly competitive market scenario and increase its scale of
operations with improvement in the overall financial risk profile
is the key rating sensitivity.
Jaipur (Rajasthan)-based SLSMT was formed as a trust in 2008 with
an objective to run, operate and manage educational institutions.
Mr Pradeep Kumar Singhania and Mr. Dilip Kumar Singhania are the
founder members of SLSMT. SLSMT has established a school
named Singhania Global Academy (SGA) which is operative from
July 2010 under Rajasthan Board of Secondary Education (RBSE) from
class I till class VIII. Thereafter, in March 2012, it got
approval from Central Board of Secondary Education (CBSE) to
operate class I to class X and from FY13 (refers to the period
April 1 to March 31) onwards the RBSE curriculum was shifted to
CBSE curriculum. Currently, it runs school up to class IX under
CBSE curriculum. Apart from school, SLSMT is also involved in
agricultural business which generated total income of
INR0.46 crore during FY12 (approximately INR0.06 crore in FY11).
During FY12, SLSMT has reported SBID of INR 1.80 crore on a total
operating income of INR3.09 crore.
SHIVANI COTEX: CARE Rates INR5.58cr Loan at 'CARE B+'
-----------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Shivani
Cotex Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 5.58 CARE B+ Assigned
Rating Rationale
The rating assigned to the bank facilities of Shivani Cotex
Private Limited is primarily constrained on account of its modest
scale of operations with limited presence in the textile value
chain and financial risk profile marked by thin profitability,
weak solvency position and modest liquidity. The rating is further
constrained due to its presence in the highly fragmented and
competitive segment of the textile value chain coupled with
vulnerability of profitability margins to fluctuation in raw
material prices.
The rating, however, derives strength from the experience of the
promoters in the textile processing industry coupled with
established distribution network of the company.
Improvement in the overall financial risk profile with improvement
in profitability will be the key rating sensitivities.
SCPL incorporated in 2009, is promoted by Mr. Asha Ram Digga along
with his family members and is a part of the 'Annapurna Group'.
The group concerns include Annapurna Texofin Private Limited
(incorporated in 1988) which is engaged in the dyeing of fabrics,
Shailja Texprints (formed in 2001, rated 'CARE B+') which is
engaged in the processing of cotton fabrics for dress materials
and ladies night wears, Shivan Mills (formed in 2005) which is
engaged in value addition printing for manufacturing of ladies
suits, kurtis and tops.
SCPL is engaged in the business of processing of cotton fabrics
and produces dyed poplin and printed dress materials. In FY12
(refers to the period April1 to March 31), SCPL utilised 40% of
its total installed capacity. It had total installed capacity of
85 lakh meters per annum (LMPA) for poplin and 75 LMPA for printed
dress material as on Dec. 31, 2012. SCPL also does job work for
others located in the local market. It sells its products under
the brand name of 'Piya Basanti' and 'Gangaur'. The company
purchases grey fabrics from Maharashtra.
During FY12, SCPL reported a total income of INR20.11 crore (FY11:
INR4.55 crore), with a PAT of INR0.04 crore (FY11: nil). As per
the provisional result of 11MFY13, the company has achieved a
total operating income of INR35 crore.
STAR WIRE: CARE Reaffirms 'BB-' Rating on INR43.44cr Loan
---------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Star Wire (India) Vidyut Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 43.44 CARE BB- Reaffirmed
Rating Rationale
The rating of Star Wire (India) Vidyut Private Limited continues
to be constrained by lack of experience of the promoters in
operating biomass power project and seasonal availability of
biomass fuel. The rating also factors in delay in
commissioning of the project with cost overruns as well as post-
implementation risk with regards to the stabilization of the
operations.
The rating, however, draws comfort from the execution of long-term
Power Purchase Agreement (PPA) and execution of fuel supply
agreement up to 50% of total requirement.
Going forward, the ability of the company to successfully commence
operations and operate the plant efficiently shall be the key
rating sensitivities.
Star Wire (India) Vidyut Private Limited is undertaking a
greenfield project of installing 9.9 MW biomass-based power plant
in village Khurawata of Mahendargarh District in Haryana. The
purpose of the project is to utilize biomass fuel (mustard crop
residue, julia flora, etc) which is an agriculture waste, to
generate electricity. The power plant has been set up at a total
cost of INR59.51 crore (revised f rom INR52.06 crore) and is
expected to commence commercial production from April 2013.
VERSATILE WIRES: CARE Rates INR4.89cr LT Loan at 'CARE B'
---------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities
of Versatile Wires Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 4.89 CARE B Assigned
Short-term Bank Facilities 5.46 CARE A4
Rating Rationale
The ratings of Versatile Wires Ltd are constrained by its weak
financial profile and currently it being a sick unit, registered
under Board for Industrial and Financial Reconstruction (BIFR).
Furthermore, the ratings are also constrained by relatively small
scale of operation, improper availability of power and competitive
nature of the copper wire industry. These rating constrains are
partially offset by the experienced promoters with long track
record and established marketing network. The company's ability to
increase its scale of operations along with simultaneous
improvement in the financial risk profile would remain the key
rating sensitivities.
Versatile Wires Ltd is an ISO 9001:2008-certified company jointly
incorporated by Mr. Sriram Khemka and his son, Mr Lokesh Khemka,
in technical assistance with M/s Eldra Electrodraht Erzeugung
Aktiengesellschaft of Austria (having about 14% stake in the
company), on Nov. 9, 1993 as a private limited company. However,
it was later reconstituted as a public limited company on August
25, 1995. It is involved in manufacturing of enamelled copper
winding wires and processing of bare copper wires, of various
measurements, as per the client's requirements. Its manufacturing
facility is located at South 24 Parganas, West Bengal with an
installed capacity of 1,875 and 5,625 metric tonnes per annum
(MTPA) of enamelled copper winding wire and bare copper wire
respectively.
As per the audited results of FY12 (refers to the period April 1
to March 31), VWL reported a PBILDT of INR1.4 crore (INR1.1 crore
in FY11) and a net loss of and INR0.3 crore (net profit of INR0.1
crore in FY11) on a total income of INR28.9 crore (INR29.4
crore in FY11). Furthermore, till 9MFY13, the company has achieved
net sales of about INR22.3 crore.
====================
N E W Z E A L A N D
====================
ZAGGERS CAFE: Landlord Places Cafe in Receivership
--------------------------------------------------
Bay of Plenty Times reports that Zaggers, a high-profile Tauranga
cafe business, has been placed in receivership just months after
opening a new conference facility on The Strand.
Zaggers 2 developer and landlord Redline Holdings placed the
entire Zaggers business in receivership last week, the report
says.
Tauranga couple Eddie and Wendy Treacey own the business and
Mrs. Treacey told the Bay of Plenty Times she was "extremely
upset" about the situation and planned to contest the appointment
of the receiver through her lawyer.
"We believe the receivership is not valid," Mrs. Treacey told the
Bay of Plenty Times.
Mrs. Treacey acknowledged business had been slow at Zaggers 2 this
year and said the low number of customers had made it difficult
for her new cafe to get established, according to the report.
Receiver Kim Thompson was appointed on April 4 and while he would
not comment on the circumstances that led to Zaggers being placed
in receivership, he said he was looking at selling both cafes, the
report adds.
Zaggers has operated a popular cafe on Chapel St since 2007 and in
December last year opened another cafe (Zaggers 2) with a big
upstairs function centre capable of hosting 150 people.
* NEW ZEALAND: Tax Issues Push More Companies to Liquidation
------------------------------------------------------------
Jeremy Tauri at Bay of Plenty Times reports that tax requirements
tend to be what pushes a lot of failing companies over the brink.
According to the report, the New Zealand Insolvency Statistics
showed the Internal Revenue Department have made 61% of the total
liquidation applications submitted to the High Court over the year
ended March 31.
Bay of Plenty Times discloses that according to the companies
office website, 4,767 liquidators were appointed over the
2010/2011 financial year in total. This dropped to 4,183 for the
2011/2012 year.
Court applications for March 2013 decreased to 66 from 129 in
March 2012, the report notes.
===============
X X X X X X X X
===============
BA PROVINCIAL: Lautoka Court Grants Stay Order on Liquidation
-------------------------------------------------------------
The Fiji Times Online reports that the High Court in Lautoka has
granted a permanent stay order on the liquidation of the Ba
Provincial Holdings Limited.
The report says High Court Master Anare Tuilevuka ruled that BPHL
had settled all its debt of about $1.5 million it owed to the Fiji
Revenue and Customs Authority (FRCA) and to the Fiji National
Provident Fund (FNPF).
He said under the current management, BPHL's current trading and
general solvency status looked promising, the report relays.
According to the report, the court said BPHL's financial woes
began on July 31, 2006, when shareholders dismissed the then board
of directors and set up an interim board.
The mandate given to the interim board was to review the company
and report its findings to the shareholders within three months.
Fiji Times relates that Master Tuilevuka said the interim board
did not fulfil this and yet remained in position from July 31,
2006 to 2008 without ever reviewing the company nor made a report
of any finding to the shareholders.
According to Fiji Times, Master Tuilevuka said after two years,
the Ba Provincial Office finally woke up to the reality that the
company was treading on thin ice because of lack of probity in the
interim board's management. "It was then that the Provincial
Council orchestrated the calling of an emergency meeting of
shareholders on 11 December, 2008 which eventually reinstated the
old (current) management," the report quotes Master Tuilevuka as
saying.
He said the new management had inherited a huge mess left by the
interim board, Fiji Times relays.
"That mess included a mammoth debt to the tune of over $1.5
million to the Fiji Islands Revenue and Customs Authority and to
the Fiji National Provident Fund.
"At the time, the old board resumed management, FRCA had already
taken out a garnishee on the company's income from government
rentals. This would put considerable strain on BPHL's cash flow,
solvency and liquidity status."
The High Court revealed through a bailout by the ANZ Bank in
November, 2012, the company had managed to settle all tax arrears
to FRCA in December 2012, Fiji Times adds.
PAKISTAN MOBILE: 2012 Results Support B2 CFR and Negative Outlook
-----------------------------------------------------------------
Moody's Investors Service says that Pakistan Mobile Communications
Limited's (Mobilink) 2012 results were broadly in line with
expectations, and have no immediate impact on the company's B2
corporate family rating, Caa1 senior unsecured rating and negative
outlook.
Mobilink demonstrated a solid financial performance in 2012. Its
revenue increased by 8.9% year-on-year, supported by a 5.6% annual
increase in subscribers.
"Mobilink's consolidated EBITDA before management fees increased
by 14% through revenue growth and cost cutting initiatives. Its
reported EBITDA margin strengthened further to 46%," says Yoshio
Takahashi, a Moody's Assistant Vice President and Analyst.
"The company also generated positive free cash flow of $164
million, part of which was used to reduce debt to $508 million,
from $588 million in 2011," says Takahashi.
Based on these results, Mobilink's adjusted debt/EBITDA in 2012
improved to around 1.7x from 1.9x a year ago, a level which is
strong for its rating level. Absent the 3G auctions, Moody's
expects its adjusted debt/EBITDA to stay below 2.0x in 2013,
supported by strengthened EBITDA generation.
Moody's also believes that Mobilink's cash-on-hand, stable
operating cash flows, and access to undrawn, committed bank lines
will be sufficient to cover its debts falling due in 2013,
including $112 million in bonds maturing in November.
As of end-2012, the company held about $100 million in cash and
cash equivalents, excluding restricted cash. It should generate
cash flows from operations of at least $380 million in 2013, given
its leading market position in the growing mobile market in
Pakistan.
In addition, based on the company's earnings release for 2012, it
had $192 million in undrawn committed lines, and $198 million in
available vendor financing.
Consequently, the company's total cash sources of about $870
million should cover its short-term debt of about $314 million --
including the $112 million in bonds due in November -- and about
$200 million in estimated capital expenditure -- including $12
million in committed capital obligations -- in the absence of the
3G auction.
Although the schedule remains uncertain, auctions for 3G licenses
could take place in H2 2013. Moody's estimates that if the firm is
successful in its bid for the license, it would incur additional
cash costs of $350 million-$500 million in 2013/14, including
capex needed to roll out the 3G network.
It is likely that this will be substantially debt funded; however,
leverage -- as measured by adjusted debt/EBITDA -- is likely to
remain below 2.5x, which is still strong for its rating level.
Moody's believes that if Mobilink's financial metrics or headroom
under its bank covenants were to come under pressure due to a
possible increase in debt owing to the 3G auctions, the company
would receive financial support from its parent, Orascom Telecom
Holdings SAE (unrated) or its ultimate shareholder, VimpelCom
Limited (Ba3 stable).
Moody's understands that Mobilink was in full compliance with its
financial covenants as of December 2012.
Mobilink's B2 corporate family rating remains constrained by a
two-notch differential with the Caa1 sovereign rating, despite the
company's stronger fundamental credit strength, as demonstrated by
its leading market position, strong financial metrics and solid
relationships with its parent companies and banks.
The principal methodology used in this rating was the Global
Telecommunications Industry Methodology published in December
2010.
Mobilink is the largest mobile operator in Pakistan by number of
subscribers. According to the Pakistan Telecommunication
Authority, Mobilink had about 36 million customers equating to a
subscriber market share of about 30% as of December 2012. The
company estimates that its market share is around 36% based on an
active subscriber base.
* Natural Disasters No Impact on Fitch Structured Finance Ratings
-----------------------------------------------------------------
Fitch Ratings says in a new report that the major natural
disasters that affected Asia-Pacific from 2010 to 2012 have not
had any rating impact on the structured finance transactions rated
by the agency.
Disasters over the specified period included the Japanese
earthquake and tsunami of March 2011; the earthquakes of September
2010 and February 2011 in Canterbury, New Zealand; and the worst
flooding in decades to hit Queensland, Australia and Thailand.
In each case the impact was immediate on portfolios that had
exposure to the affected disaster zone. Exposure was through
direct property damage to loan collateral or through damage to
infrastructure and workplaces that prevented borrowers continuing
employment. In each case, affected locations saw an immediate rise
in arrears but borrowers quickly recovered in the months following
the disaster.
In most cases, transactions avoided significant exposure to the
disaster through diversification. Transactions backed by consumer
loans tend to include a large number of loans that are located
throughout the respective geography. This tends to mitigate
natural disaster risk. Data show that in the unlikely event that
the impact felt in the immediate vicinity of the event was
replicated nationwide, transactions would suffer.
Fitch analyses geographic concentration in all transactions it
rates. The agency's criteria include assessments of building
standards and insurance for natural disasters, such as earthquakes
and flooding, in regions typically affected by these phenomena.
Recent events have provided ample opportunity to test these
assumptions and Fitch has found no reason to change its
assumptions in this regard.
*********
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 ***