/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130430.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Tuesday, April 30, 2013, Vol. 16, No. 84 Headlines A U S T R A L I A AUSDRILL LIMITED: Moody's Affirms Ba2 CFR with Stable Outlook K & B LAMBERT: Appoints Clifton Hall as Liquidators MISSION NEWENERGY: Serves KNM Process with Winding Up Petition RIVERCITY MOTORWAY: Receivers Put Clem7 Tunnel Up For Sale SECURED COLLATERAL: ASIC Obtains Supreme Court Wind-Up Orders TROY LANE: Clifton Hall Appointed as Liquidators C H I N A HOPSON DEVELOPMENT: S&P Revises Outlook & Affirms 'B-' CCR INTIME RETAIL: S&P Raises CCR to 'BB'; Outlook Stable YINGDE GASES: New Bond Issuance No Impact on Ba2 CFR I N D I A AGGARWAL IRON: ICRA Rates INR25cr Fund Based Limits at 'B+' DASHMESH AUTOS: ICRA Assigns 'B' Ratings to INR5.7cr Loans EQUIPLUS (INDIA): ICRA Assigns 'C' Ratings to INR6.75cr Loans ICEWEAR CREATIONS: ICRA Assigns 'B+' Ratings to INR1cr Loans KTDC HOTELS: ICRA Assigns 'BB+' Ratings to INR21.5cr Loans MULA SAHAKARI: ICRA Assigns 'BB-' Rating to INR30cr LT Loan STYLISH PRECAST: ICRA Assigns 'B' Ratings to INR15cr Loans WARM FORGINGS: ICRA Assigns 'B-' Ratings to INR11.54cr Loans WIRECOM (INDIA): ICRA Assigns 'BB-' Ratings to INR6cr Loans I N D O N E S I A MEDCO ENERGI: Moody's Affirms CFR at B2; Rating Outlook is Stable MERPATI NUSANTARA: Restructuring Team Formed to Save Airline J A P A N JCREF CMBS 2007-1: S&P Lowers Rating on Class E Notes to CCC- JLOC 39: Moody's Lowers Ratings on Two Trust Certificates N E W Z E A L A N D MAINZEAL PROPERTY: Shipley Discloses Role in Mainzeal ROSS ASSET: FMA Probes Investors Over RAM Collapse P H I L I P P I N E S ALBAY ELECTRIC: Protesters Sue NEA Over Privatization EXPORT BANK: Uninsured Depositors Unlikely to Get Full Payment * Moody's Affirms Ba1 Ratings on Three Philippine Banks S I N G A P O R E AMARU INC: Former Accountant Withdraws Audit Report for 2011 S O U T H K O R E A GS ENGINEERING: S&P Lowers CCR to 'BB+' and Withdraws Rating X X X X X X X X * BOND PRICING: For the Week April 22 to April 26, 2013 - - - - - ================= A U S T R A L I A ================= AUSDRILL LIMITED: Moody's Affirms Ba2 CFR with Stable Outlook ------------------------------------------------------------- Moody's Investors Service has affirmed the stable outlook and the Ba2 corporate family rating on Ausdrill Limited and the Ba3 senior unsecured rating on the $300 million 144A notes issued by Ausdrill Finance Pty Ltd. Ratings Rationale: The Ba2 rating reflects Ausdrill's strong market position in relation to the provision of integrated mining services in its target markets and its ability to execute contracts to a diversified range of counterparties. "Whilst we expect that conditions will remain challenging in the mining services sector over the next 12 months, Ausdrill should generate sufficient operating cash flow to reduce outstanding debt by around AUD80 million within the next 6 to 12 months", says Arnon Musiker. a Moody's Vice President and Senior Analyst. "This will maintain financial leverage within the tolerance for the rating and provide additional headroom to absorb revenue losses from possible future contract cancellations", adds Musiker. Moody's expects the reduction in debt to counterbalance the weakness in Ausdrill's earnings, resulting in Debt/EBITDA remaining materially below the rating tolerance level of 2 - 2.5x in FY13 (fiscal year ending 30 June 2013). "We expect the weakening in commodity prices, and the general decline in sentiment to result in the resources sector deferring capital expenditure, reducing production and focusing on managing operating costs. These trends will increase competition and downward pressure on margins in the mining services sector in which Ausdrill operates, as well as increase the possibility of step-reductions in revenues from the loss of large contracts." "The composition of Ausdrill's earnings is shifting towards its Africa-based businesses due to underperformance in aggregate earnings from the Australian businesses. Whilst earnings from Africa are exceeding our base case assumption, certain jurisdictions in which the company operates -- particularly Mali - - are subject to elevated sovereign risk. Deleveraging is important in order to provide a buffer for the company to manage any sudden deterioration in higher risk sovereign environments," adds Musiker. The stable outlook reflects Moody's expectation that the company will continue to execute on its various contracts and apply operating cash flows to deleverage the business. Ausdrill's rating recognizes the countermeasures that are available to the company to preserve operating cashflow. These include workforce reductions-- which should partially counter downward pressure on operating margins --as well as management's intention to defer capital expenditure, with the exception of asset replacement. Ausdrill's rating could be downgraded if gross adjusted Debt/EBITDA consistently exceeds 2 -- 2.5x. Negative rating pressure could also result from sustained negative free cash flow and/or widespread contract cancellation that has a material effect on operating cashflow. The Ba3 rating on the $ notes reflects material legal subordination as the notes rank behind certain Ausdrill facilities including its senior secured Syndicated Bank Facility. The principal methodology used in these ratings was the Global Business & Consumer Service Industry Rating Methodology published in October 2010. Ausdrill was established in 1987 as a drill and blast company in the Australian mining services sector, and has expanded into a vertically integrated provider of mining services to the resources industry in Australia and Africa with in-house capabilities in manufacturing, logistics and supply. K & B LAMBERT: Appoints Clifton Hall as Liquidators --------------------------------------------------- Timothy Clifton -- tclifton@cliftonhall.net.au -- and Mark Hall -- mhall@cliftonhall.net.au -- were appointed as Joint and Several Liquidators of K & B Lambert Corporation Pty Ltd on April 22, 2013. The first meeting of creditors will be held at 2:00 p.m. on May 3, 2013, in the offices of Clifton Hall, Level 1, 12 Gilles Street, in Adelaide. MISSION NEWENERGY: Serves KNM Process with Winding Up Petition -------------------------------------------------------------- Mission NewEnergy Limited's subsidiary, Mission Biofuels Sdn Bhd, has served KNM Process Systems Sdn Bhd with a winding up petition, under section 218(e)&(i) and Section 218(2)(c) of the Malaysian Companies Act 1965. MBSB seeks to wind up KNM for KNM's failure to pay MBSB approximately AUS3,800,000 (MYR12.2 million) plus interest relating to Liquidated Ascertained Damages under the Engineering, Procurement, Construction and Commissioning Contract of Mission's 2nd biodiesel refinery (M2 Plant) in Malaysia. These invoices were presented to KNM over the last 2 years and despite a Letter of Demand served on KNM by MBSB's solicitors, KNM has failed to pay. The hearing of the winding up Petition will take place on July 18, 2013. About Mission NewEnergy Based in Subiaco, Western Australia, Mission NewEnergy Limited is a producer of biodiesel that integrates sustainable biodiesel feedstock cultivation, biodiesel production and wholesale biodiesel distribution focused on the government mandated markets of the United States and Europe. The Company is not operating its biodiesel refining segment. The refineries are being held in care and maintenance either awaiting a return to positive operating conditions or the sale of assets. The Company has materially diminished its Jatropha contract farming operation and the company is now focused on divesting the remaining Indian assets. The Company intends to cease all Indian operations. Grant Thornton Audit Pty Ltd, in Perth, Australia, expressed substantial doubt about the Company's ability to continue as a going concern. The independent auditors noted that the Company incurred operating cash outflows of A$4.9 million during the year ended June 30, 2012, and, as of that date, the consolidated entity's total liabilities exceeded its total assets by A$24.4 million. The Company's consolidated balance sheet at Dec. 31, 2012, showed $7.05 million in total assets, $27.29 million in total liabilities and a $20.24 million net deficit. RIVERCITY MOTORWAY: Receivers Put Clem7 Tunnel Up For Sale ----------------------------------------------------------- The Sydney Morning Herald reports that receivers are now taking expressions of interest in the Clem7 tunnel after the financial collapse of the toll road two years ago. SMH relates that KordaMentha partner Martin Madden expects a deal will be done by the end of the year, pending a successful bid's approval from Brisbane City Council. According to the report, Mr. Madden said expressions of interest would close by May 13, with bids due by the middle of June. He said parties launching a bid would have access to limited information about the tunnel but would be subject to a confidentiality agreement, the report says. "They'll have about a month to digest that information," the report quotes Mr. Madden as saying. "Then together with [sale partners] Goldman Sachs, we'll select the bids we consider most attractive." SMH adds that Mr. Madden said it was likely the firm would receive a final bid by August or September, with the council approval process set to take between one and three months. Rivercity Motorway Group is the owner and operator of Brisbane's troubled Clem7 tunnel. CourierMail said in June 2012 that Rivercity Motorway Group went into receivership after failing to get its two dozen lenders to agree to a suspension of interest repayments on the company's AUD1.3 billion debt. KordaMentha partners Martin Madden and David Merryweather were appointed receivers and managers of RiverCity Motorway. SECURED COLLATERAL: ASIC Obtains Supreme Court Wind-Up Orders ------------------------------------------------------------- Following an investigation into an unlicensed and fraudulent financial services business, the Australian Securities and Investment Commission has successfully applied to the Supreme Court of Queensland for three South-East Queensland based companies to be wound up. ASIC alleged Secured Collateral Pty Ltd, Diversified Collateral Pty Ltd, Intra Management Pty Ltd and their respective sole directors, Dylan Robson, Keiron Michael Weertman, and Shane Rodney Hasell, operated an unlicensed and fraudulent financial services business that defrauded investors of approximately AUD1,000,000 between May and October 2012. The Court ordered that: * Secured Collateral, Diversified Collateral and Intra Management be wound up; * William Fletcher and Tracy Knight of Bentleys Corporate Recovery Pty Ltd be appointed as the liquidators of the companies; and * the respondent companies and individuals pay ASIC's costs. ASIC carried out an investigation into an entity called Secured Private Wealth. ASIC alleged that Secured Private Wealth used cold calling and a website to induce investors to deposit funds into the accounts of Secured Collateral, Diversified Collateral and Intra Management. Investors were promised that the funds would be used to buy shares on behalf of the investors, and generate returns well above market returns (refer 12-265MR). ASIC also alleged that Weertman, Robson and Hasell withdrew the money from the company bank accounts in cash. The Court noted that each director must have been aware that they were involved in some form of "unlawful exercise". ASIC's inquiries to date have not been able to substantiate that shares were purchased on behalf of investors. ASIC Commissioner Greg Tanzer said ASIC took this action to ensure that an independent person could review the scheme. 'While there are still funds not accounted for, today's orders increase the likelihood that investors will see some of their investment funds returned to them. Unfortunately, with many schemes of this nature there are no returns', Commissioner Tanzer said. The Court declined to make declarations of contravention by the companies of carrying on a financial services business without an Australian financial services (AFS) licence or declarations that the directors were knowingly involved in such contraventions. The Court also declined to grant injunctions to prevent the companies or directors carrying on a financial services business, and from operating any internet websites promoting, advertising or offering financial services, without holding an AFS licence. TROY LANE: Clifton Hall Appointed as Liquidators ------------------------------------------------ Timothy Clifton and Mark Hall of Clifton Hall were appointed Joint and Several Liquidators of Troy Lane Quality Golf Services Pty Ltd on April 24, 2013. The first meeting of creditors will be held at 3:00 p.m. on May 3, 2013, at Clifton Hall, Level 1, 12 Gilles Street, in Adelaide. ========= C H I N A ========= HOPSON DEVELOPMENT: S&P Revises Outlook & Affirms 'B-' CCR ---------------------------------------------------------- Standard & Poor's Ratings Services revised the rating outlook on China-based property developer Hopson Development Holdings Ltd. to stable from negative. In line with the outlook revision, S&P raised its long-term Greater China regional scale rating on the company to 'cnB' from 'cnB-' and that on its senior unsecured notes to 'cnB-' from 'cnCCC+'. At the same time, S&P affirmed its 'B-' long-term corporate credit rating on Hopson and the 'CCC+' rating on the notes. S&P revised the outlook to stable because it believes Hopson will improve its sales execution and control its debt-funded expansion over the next 12 months. "We believe the company's refinancing risk is lower," said Standard & Poor's credit analyst Bei Fu. "The reasons for that are the company has redeemed its senior notes due late 2012, raised new offshore funding early in 2013, and is maintaining its onshore banking relationship. We also expect Hopson's profit margins to be satisfactory and its liquidity to strengthen over the next 12 months." The year-on-year growth in Hopson's contract sales during the first three months of 2013 reflects its improved sales execution, in S&P's opinion. During that period, Hopson's contract sales rose 77% year on year to Chinese renminbi (RMB) 2.65 billion, 18% of its full-year sales target. "We expect Hopson to be able to keep its profitability steady in the next two years. This is because most of the company's sales are from tier-one cities, where it has large low-cost land reserve. In addition, Hopson did not cut prices to accelerate sales during the last market downturn," Ms. Fu said. Standard & Poor's assesses Hopson's management and governance as weak. In S&P's view, the company's relatively new management team has yet to establish a record of effective operational risks management and internal control, compared with that of peers with similar business scale and market position. During the past three years, there was high turnover in senior management. Nevertheless, S&P noticed that Hopson's information disclosure has been slowly improving since the end of 2012. S&P affirmed the rating on Hopson to reflect the company's aggressive debt-funded expansion, weak and volatile financial performance, weak corporate governance, and weak execution of business strategy. The company's large and low-cost land reserve, its established brand name, especially in tier-one cities, good profit margin, and increasing recurring income temper those weaknesses. The stable outlook reflects S&P's expectation that Hopson's property sales will improve and the company will control debt- funded expansion in the next 12 months. As a result, its credit ratios will improve to a level more in line with peers'. S&P also expects the company to maintain satisfactory profitability and to refinance its upcoming debt maturities. S&P may lower the rating if Hopson's cash inflow is insufficient to fund cash outflow, particularly fixed obligations. This could happen if: (1) its property sales are materially below S&P's base- case expectation of RMB13 billion in 2013; (2) its debt-funded expansion is more aggressive than S&P expected; or (3) the company cannot refinance its short-term debt obligations or its banking relationships deteriorate, which may be reflected by a slowdown in onshore loan drawdowns. S&P may upgrade Hopson if: (1) it further improves its liquidity and leverage, such that its EBITDA interest coverage is above 1.5x on a sustainable basis; and (2) the company improves its debt maturity profile. INTIME RETAIL: S&P Raises CCR to 'BB'; Outlook Stable ----------------------------------------------------- Standard & Poor's Ratings Services said that it had raised its long-term corporate credit rating on Intime Retail (Group) Co. Ltd. and its rating on the company's senior unsecured notes to 'BB' from 'BB-'. The outlook is stable. Accordingly, S&P also raised its long-term Greater China regional scale rating on the China-based department store operator and the notes to 'cnBBB-' from 'cnBB+'. "The upgrade reflects our view that Intime's business risk profile has improved over time, given its enlarged operating scale and more geographically diversified store network in the country," said Standard & Poor's credit analyst Lillian Chiou. "We also expect the company to have good growth prospects supported by strong overall growth in retail sales in Zhejiang, its home base, and in China." S&P expects Intime will sustain its healthy cash flow generation and profitability. Sales from its concessionaire model will continue to contribute about 90% of total gross sales in the next one to two years. S&P also expect the company to maintain operating efficiency and good bargaining power against suppliers, given its dominant market position in Zhejiang. Nevertheless, intensifying industry competition, including from non-traditional retail formats, could also hurt profitability, especially for newly opened stores. S&P expects to see a moderate downward trend of concessionaire rate and gross margin in the next three to five years. Although Intime's single-province and single-store revenue concentration has been decreasing, it remains high relative to peers. S&P expects Intime's revenue contribution from Zhejiang and its flagship store to decline gradually as the company expands further outside of the province. The fact that Zhejiang continues to be one of the wealthiest provinces in China mitigates the geographical concentration risk. In S&P's view, the company will continue its somewhat aggressive debt-funded expansion plans but with better financial discipline in the next few years. S&P forecasts Intime's revenue to grow in high single-digits in 2013 and then accelerate to the mid-teens in 2014, supported mainly by a high number of new stores. S&P maintains its view on Intime's financial risk profile as "aggressive." Stronger EBITDA will be accompanied by high debt financing requirement and an increase in operating lease-adjusted debt. Due to the retailers' cash-generative model, S&P expects 50% of total cash and cash equivalents to be surplus cash. S&P measures Intime's capital structure after netting off surplus cash from operating lease-adjusted debt. In S&P's base case, it expects Intime's adjusted debt-to-EBITDA ratio to stay below 5.0x in 2013. Intime's refinancing risk will rise this year with the upcoming maturity of its convertible bonds, which, in S&P's view, is less likely to be converted. However, the company's good cash position and moderate access to capital markets mitigate the risk. S&P views Intime's liquidity as "adequate," as defined in its criteria. S&P expects the company's sources of liquidity to exceed its uses by more than 1.2x over the next 12 months. "The stable outlook reflects our expectation of sustainable cash flow generation from Intime's concessionaire model, robust revenue growth in 2013, but continued debt-funded capital expenditure for expansion," said Ms. Chiou. S&P may lower the rating if Intime's sales ramp-up from new stores is significantly slower than its expectation, profit margin deteriorates materially, or if the company takes on more aggressive debt-funded expansion than S&P expected. Downgrade triggers would be the ratio of adjusted debt to EBITDA staying above 5x on a sustained basis (after netting off surplus cash). Upgrade potential hinges on Intime's ability to execute its expansion plan with financial discipline, and continue to improve its financial position, in particular capital structure, such that the ratio of surplus-cash-adjusted debt to EBITDA stays below 3.5x. YINGDE GASES: New Bond Issuance No Impact on Ba2 CFR ---------------------------------------------------- Moody's Investors Service says that an additional bond issuance by Yingde Gases Group Company Limited will not have any impact on its Ba2 corporate family rating and Ba3 senior unsecured bond rating. The ratings outlook remains stable. The company announced on April 26, that it will issue additional bonds under the same terms and conditions as the existing bonds. The proceeds of the $ notes issuance will be used to refinance the company's existing borrowings. Ratings Rationale: "After the additional bond issuance, Yingde Gases' credit metrics will still be well positioned within its Ba2 rating range," says Jiming Zou, a Moody's Analyst. Moody's also expects the company's leverage level to stabilize as its new facilities fuel further revenue and cash flow growth. Yingde Gases' Ba2 corporate family rating reflects (1) the company's strong position in China's on-site gas supply market; and (2) the company's high profitability and sustainable operating cash flow. On the other hand, the rating is constrained by Yingde Gases' (1) relatively small business scale to its international peers; (2) short operating track record; (3) customer concentration in the domestic steel industry; and (4) moderately high debt leverage and negative free cash flow as a result of rapid expansion. While the company has been focusing on business expansion in recent years, there are weaknesses with its internal controls. For example, the company breached the listing rules when its chairman improperly used corporate funds to purchase shares in the company. Moody's expects the company to pay more attention to its internal controls and to allocate more management resources to improve its corporate governance. 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. Upward rating pressure is unlikely 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. However, positive rating pressure could emerge if Yingde Gases improves its business scale and customer diversification, and improves debt/EBITDA below 3.0x and retained cash flow (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. Specific credit metrics that would indicate a rating downgrade include: debt/EBITDA above 5x and RCF/net debt below 10%-15%. The principal methodology used in these ratings was the 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 in revenue for 2012. As of end- 2012, it had a total of 41 production facilities in operation and another 30 under development. On-site gas production accounted for about 80% of the company's revenues, with the rest coming from merchant sales. The company listed on the Hong Kong Stock Exchange in September 2009. As of March 2013, the executive directors and founders, Zhongguo Sun, Zhao Xiangti and Trevor Raymond Strutt held 18.5%, 14.43% and 10.15% equity stakes, respectively. ========= I N D I A ========= AGGARWAL IRON: ICRA Rates INR25cr Fund Based Limits at 'B+' ----------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B+' to the INR25.0 crore fund based limits of The Aggarwal Iron & Steel Co. The rating takes into consideration the intensely competitive nature of the steel trading business, AISCO's relatively moderate scale of operations, and its thin profitability. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits 25.0 [ICRA]B+ The rating also factors in the high gearing levels of the firm (5.50 times as on March 31, 2013 provisional) and its modest debt protection indicators. The rating also remains constrained by the risks inherent in a proprietorship nature of the firm such as ability to raise funds, withdrawal of capital, succession risk, etc. The ratings however derive comfort from AISCO's experienced management, its established relations with key customers and limited exposure to commodity price fluctuation risk on account of low levels of inventory being maintained by the firm. The Aggarwal Iron & Steel Co. started in 1990 as a proprietorship firm with Mr. Praveen Agarwal as the proprietor. The firm deals in trading of reinforced steel bars and supplies mainly to real estate developers. During FY2013 (provisional), the firm reported a net profit before tax of INR0.48 crore on an operating income of INR146.97 crore vis-a-vis profit after tax of INR0.79 crore on an operating income of INR164.27 crore during FY2012. DASHMESH AUTOS: ICRA Assigns 'B' Ratings to INR5.7cr Loans ---------------------------------------------------------- ICRA has assigned the '[ICRA]B' ratings for the INR5.70 crore bank facilities of Dashmesh Autos. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Cash Credit 5.00 [ICRA]B Assigned Term Loan 0.66 [ICRA]B Assigned Unallocated 0.04 [ICRA]B Assigned The assigned rating takes into account Dashmesh's healthy market position by virtue of being the sole dealer of Hyundai Motors India Limited in Ferozepur and healthy growth in revenues. The ratings are, however, constrained by the Dashmesh's thin profit margins and high working capital intensity- both inherent in the automotive dealership business. The highly geared capital structure and weak growth outlook in near term also constrain the rating. Going forward, the firm's ability to manage its liquidity and improve its financial risk profile would remain key rating sensitivities. Dashmesh Autos is a partnership firm promoted by Mr. Raman Sidana and his brother in FY10 and subsequently reconstituted as partnership firm between Mr. Raman Sidana and his wife. . The firm has been operating as an authorised dealer for vehicles of Hyundai Motors India Limited in Ferozepur, Punjab. The firm deals in sale of new cars, repairs and servicing of cars. The firm has one 3S (showroom, spares, service) sales showroom cum service workshop located in Moga Road, Ferozepur. Recent Results As per 2011-12 financials, Dashmesh reported an Operating Income (OI) of around INR22.9 crore and Operating Profits Before Depreciation, Interest and Tax (OPBDIT) of INR0.7 Crore. EQUIPLUS (INDIA): ICRA Assigns 'C' Ratings to INR6.75cr Loans ------------------------------------------------------------- ICRA has assigned a long-term rating of '[ICRA]C' and a short-term rating of '[ICRA]A4' for the INR11.25 Crore bank facilities of Equiplus (India) Exports Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Export Packing Credit 3.50 [ICRA]C assigned Limit (EPC) Foreign Bill Purchase 2.50 [ICRA]C assigned Limit (FBP) Standby Line of Credit 0.75 [ICRA]C assigned Letter of Credit 4.50 [ICRA]A4 assigned The assigned ratings take into account the company's stretched liquidity position which led to delays in debt servicing in the past, moderate scale of operations with fluctuating operating margins due to inability to pass on the increase in raw material cost entirely to its customers and high dependence on the European market for its revenues, indicating that the revenue growth would have strong linkages with the recovery in the EU region. Based on information shared by the management, the company has been regular in debt servicing over the last three months. ICRA factors in the long standing experience of promoters in the leather goods' manufacturing and export business and the company's moderate financial risk profile. Going forward, the ability to improve its debt servicing and management of working capital requirement will remain key rating sensitivities for the company. Incorporated in 2001, EEPL is engaged in the manufacture and export of leather products like horse clothing and other leather apparels. It manufactures products like sleeping bags, saddleries, leggings, jackets, braces and bags etc. mainly for the export market. These products are currently being manufactured at its facility located at Panki, Kanpur (Uttar Pradesh). It is a closely held company, being promoted by Mr. Upendra Singh. ICEWEAR CREATIONS: ICRA Assigns 'B+' Ratings to INR1cr Loans ------------------------------------------------------------ ICRA has assigned the long term rating of '[ICRA]B+' to INR0.25 crore term loan facilities and INR0.75 crore proposed long term facilities of Icewear Creation. ICRA has also assigned the short term rating of '[ICRA]A4' to INR13.00 crore fund based facilities and INR3.50 crore proposed facilities of the Firm. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 0.25 [ICRA]B+ assigned Long term proposed 0.75 [ICRA]B+ assigned Facilities Short term fund 13.00 [ICRA]A4 assigned based facilities Short term proposed 3.50 [ICRA]A4 assigned Facilities The ratings consider the experience of the promoters in the garment manufacturing business and their longstanding relationship with Primark - the Firm's largest customer, which ensures repeat orders and mitigates the customer concentration risk. The ratings are however constrained by the Firm's modest profit margins on the back of partial outsourcing of production and their susceptibility to volatility in raw material prices, changes in Government policies and exchange rate movements, with limited pricing flexibility on account of intense competitive pressure from domestic players as well as manufacturers in other low cost countries. Additionally, the working capital intensive nature of operations have resulted in constrained capital structure with high gearing and stretched coverage indicators. ICRA also takes note of the risks inherent to partnership firms in the form of limited disclosures and issues of capital continuity. Icewear Creation was established in 2004 as a partnership firm and is engaged in manufacturing of knitted garments (mainly kidswear and ladies wear). The promoter, Mr. Chandrasamy and his wife are the partners in the firm. The Firm has three manufacturing units in Tirupur and has combined production capacity of -3 lakh pieces per month. The firm has been designated as "one star export" house by Ministry of Commerce and Industry and mainly caters to large international retailers, with Primark being the largest customer (accounts for -76% of sales in FY13) and has modest domestic sales. The Firm also has a windmill of 225 KW capacity and the power produced is sold to TNEB. Apart from Icewear Creations, the promoters also have interest in two more firms - Knitcare and Ellora Fashions, which are engaged in fabric processing on job work basis. KTDC HOTELS: ICRA Assigns 'BB+' Ratings to INR21.5cr Loans ---------------------------------------------------------- ICRA has assigned long term rating of '[ICRA]BB+' to the INR13.90 crore term loans and INR7.60 crore fund based facilities of KTDC Hotels and Resorts Limited. The outlook on the long term rating is stable. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loans 13.90 [ICRA]BB+(stable) assigned Long Term Fund 7.60 [ICRA]BB+(stable) assigned Based Limits The ratings consider the diversified property portfolio of Company spread across Kerala, with several properties in strategic business and tourist locations and healthy F&B sales driven by hotels as well as standalone restaurants and beer bars operated by the Company. ICRA also take note of the operational and financial support extended by Government of Kerala to the Company, which has helped it in maintaining healthy capital structure. However, the ratings are constrained by the weak operating metrics of its hotel properties, reflected in their low occupancy levels and moderate ARRs, which coupled with high operating expenses (mainly employee expenses and consumable costs), have resulted in thin profit margins. The Company has several new properties planned over the next three years which will be partially funded by debt, which may result in higher leverage levels. The Company is planning to open more beer bars over the next three years and is diversifying into other states with a new 3-star property in Chennai commencing operations (on a limited scale) in FY13. The Company is also undertaking several initiatives to improve the operating performance of its properties, which include - aggressive and focused marketing, obtaining star ratings to increase visibility and potential tie-up with private sector players to enhance service levels. Additionally, the Company is also exploring options to reduce its cost structure to improve profit margins. However, while the opening of new beer bars and the Chennai property is expected to drive revenue growth and some margin improvement in near to medium term, the translation of the Company's efforts to improve the operating metrics of its existing properties and control costs into actual improvement in performance remains to be seen and will be critical for the company to improve its credit profile. The Company operates in a highly competitive market with presence of established private sector players and its performance is susceptible to inherent cyclical nature of the industry and exogenous factors (like terrorist attacks, natural calamities etc.). KTDC Hotels and Resorts Limited was incorporated as a private limited company in 1965, and was initially named as Kerala Tourist and Handicrafts development Corporation (P) Ltd. The Corporation was renamed as Kerala Tourism Development Corporation Limited in 1970 and subsequently in 2010, it was renamed as KTDC Hotels and Resorts Limited. The Company is 100% owned by Govt. of Kerala. The Company is engaged in operating Hotels (across price points), Motels and Beer parlors in the state of Kerala. The company is also trying to expand its presence in neighboring states, starting with a 3 star property in Chennai, which is expected to commence operations in current fiscal. MULA SAHAKARI: ICRA Assigns 'BB-' Rating to INR30cr LT Loan ----------------------------------------------------------- ICRA has assigned the '[ICRA]BB-' rating to INR30.00 crore long term fund based limits of Mula Sahakari Sakhar Karkhana Limited. ICRA has also assigned a long term rating of '[ICRA]BB-' and short term rating of '[ICRA]A4' to INR3.00 crore unallocated limits of MSSKL. The long term rating has been assigned stable outlook. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Long term, fund based 30.00 [ICRA]BB-(stable) limits-Cash Credit assigned Long term and Short 3.00 [ICRA]A4(assigned) term based limits The assigned ratings factor in the long standing presence of MSSKL in Ahmednagar District of Maharashtra along with forward integrated distillery and cogeneration operations which partially protect the company from cyclicality inherent in the sugar industry. The ratings also take into account adequate cane availability in the command area, supported by cane development initiatives taken by the company. The ratings however are constrained by stretched financial risk profile characterized by high gearing and high inventory levels. Further, the company remains vulnerable to regulatory risks like regulated prices, levy sugar quota and export regulations along with agro climatic risks. Incorporated in 1970, Mula Sahakari Sakhar Karkhana Limited has current crushing capacity of 3500 TCD.The company has more than 17000 cane producing members .The company has 87 villages under its command area spread over Nevasa Taluka and Ahmednagar Taluka of Ahmednagar District of Maharashtra. The company also operates ancillary activities like distillery and cogeneration unit. STYLISH PRECAST: ICRA Assigns 'B' Ratings to INR15cr Loans ---------------------------------------------------------- ICRA has assigned a long term rating of '[ICRA]B' to the INR5.10 crore cash credit, INR9.00 crore term loan, INR0.70 crore bank guarantee, and INR0.20 crore unallocated facilities of Stylish Precast Private Limited. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund Based Limits- 5.10 [ICRA]B assigned Cash Credit Fund Based Limits- 9.00 [ICRA]B assigned Term Loan Non Fund Based Limits- 0.70 [ICRA]B assigned Bank Guarantee Unallocated 0.20 [ICRA]B assigned The rating takes into account SPPL's small scale of operations, the tender based nature of contracts that keep its profit margins under pressure, the company's limited experience in the cement manufacturing business, and the inherent cyclicality associated with the cement business, thereby exposing the company to volatile cash flows. The rating also takes into account SPPL's weak financial profile, as indicated by an adverse capital structure and stressed debt protection metrics. ICRA notes that with SPPL having significant debt repayments scheduled in the next 2-3 years, ability to stabilize operations of the new cement grinding unit, and subsequently scale up its revenues and profits would be crucial from the credit perspective. The rating derives comfort from the established track record of the company in the manufacturing of pre-cast concrete products, its demonstrated ability to consistently increase revenues in the past few years while maintaining profitable operations, and the backward integration into cement manufacturing, which is expected to lead to lower raw material costs for manufacturing of pre-cast concrete products. SPPL is a Kolkata based company, and has been engaged in the manufacturing of pre-cast concrete products since 1999. In FY 2011-12, the company has set up a 66,000 TPA cement grinding unit, and has also set up facilities for the manufacturing of fly-ash bricks (installed capacity of 36,00,000 pieces per annum) and hollow and solid blocks (installed capacity of 36,00,000 pieces per annum). Recent Results In FY 2011-12, SPPL reported a profit after tax (PAT) of INR0.14 crore on the back of an operating income of INR16.80 crore, as against a PAT of INR0.07 crore on the back of an operating income of INR8.71crore during FY 2010-11. WARM FORGINGS: ICRA Assigns 'B-' Ratings to INR11.54cr Loans ------------------------------------------------------------ ICRA has assigned the long-term rating of '[ICRA]B-' to the INR11.54 Crore fund based bank facilities of Warm Forgings private Limited. ICRA has also assigned the short term rating of '[ICRA]A4' to the INR5.50 Crores non-fund based facilities of WFPL. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Term Loan 3.04 [ICRA]B- assigned Cash Credit 8.50 [ICRA]B- assigned Bank Guarantee 0.50 [ICRA]A4 assigned ILC/FLC(DA/DP) 5.00 [ICRA]A4 assigned Unallocated 0.26 [ICRA]B-/[ICRA]A4 assigned The ratings draw comfort from the long experience of the promoter group in the industry, wide customer base, and the company's diverse product mix. The ratings are however constrained by competitive and fragmented nature of industry; the company's vulnerability to raw material price volatility which has led to moderate profitability indicators; moderate scale of operations, besides the support being extended to start up entities in the group. Low operating profits and cash accruals have resulted in moderate coverage indicators. WFPL's ability to manage its financial risk profile, generate sufficient cash flows to meet its debt servicing obligations, especially in view of support extended to group companies would be the key rating sensitivities going forward. Based on information shared by the management, the company had been regular in its debt servicing obligation for the last three months. Warm Forgings Private Limited (formerly, CNC Automotive Private Limited was incorporated in 1999, and promoted by Mr. Amit Rajput. In 2005, CNC Engineers, a proprietorship firm of Mr. Rajput was merged with WFPL. The company manufactures products related to gears for two - wheelers such as wheel hubs, gear blanks (forged and turned), sliding clutches, rotors and pulleys at its facilities located in Bhiwadi (Rajasthan). The products manufactured are of various sizes and shapes as per the requirement of customers. In order to focus on the four - wheeler market, Mr. Amit Rajput established Warm Gears Private Limited (WGPL), which was incorporated in 2005; however the company commenced its commercial production only in July 2010. WGPL manufactures bevel gears and other gear products for the four- wheeler market. Earlier till the receipt of TS Certificate WGPL was marketing its products through WFPL, however the WGPL had recently received the TS certificate and going forward will be selling its products independently. Its facilities are also located in Bhiwadi (Rajasthan). Recent Results As per financials for, 2011-12, WGPL recorded an operating income of INR137.7 Crore. The company recorded an operating profit before depreciation, interest and tax of INR9.2 Crore and Profit after Tax (PAT) of INR2.8 Crore. WIRECOM (INDIA): ICRA Assigns 'BB-' Ratings to INR6cr Loans ----------------------------------------------------------- ICRA has assigned an '[ICRA]BB-' rating to the INR2.0 crore fund- based bank facilities and INR4.0 crore term loans of Wirecom (India) Private Limited. The long-term rating has been assigned a "Stable" outlook. Amount Facilities (INR Cr) Ratings ---------- -------- ------- Fund-Based Limits 2.0 [ICRA]BB- (Stable) assigned Term Loans 4.0 [ICRA]BB- (Stable) assigned The assigned rating takes into account the long experience of the promoters in the industrial spring manufacturing business; established relationship with reputed customers, which indicates good product quality and ensures repeat orders and healthy profitability indicators of the company. The ratings are, however, constrained by the leveraged capital structure of the company due to its largely debt-funded capital expenditure carried out in the past; small scale of operations at present and high working capital intensity as a result of its stretched receivables and high, although declining, inventory levels. ICRA also notes that the company is in the process of setting up a new unit at Pune at an estimated cost of INR6.0 crore to be funded by a term loan of INR4.23 crore and balance in form of a mix of internal accruals and a fresh equity of INR0.5 crore. While the additional unit is expected to augment WIPL's revenues in the near to medium term, largely debt-funded capital expenditure on the same is expected to keep the gearing of WIPL at high levels, given the high project gearing of about 2.4 time. Established in 1996, WIPL is promoted by Mr. Bharat Shah and is engaged in the manufacturing of industrial springs, wire forms and sheet metal components. The manufacturing facility of the company is located at Vasai in Thane district of Maharashtra. The industrial springs manufactured by the company mainly find application in the electrical & switchgear and auto sectors. Recent Results In 2011-12, WIPL reported a net profit of INR0.5 crore on the back of net sales of INR8.9 crore. As per the provisional results for the first eleven months of 2012-13, the company reported gross sales of INR8.87 crore. ================= I N D O N E S I A ================= MEDCO ENERGI: Moody's Affirms CFR at B2; Rating Outlook is Stable ----------------------------------------------------------------- Moody's Investors Service affirmed the B2 corporate family rating of PT Medco Energi Internasional Tbk. The outlook on the rating is stable. Ratings Rationale: The rating affirmation reflects Medco's strong liquidity that will provide a cushion over the next 2 years as the company develops its Senoro gas field. At the end of 2012, the company had cash and cash equivalents of $523 million and short term investments of $312 million. This, along with cash flow from operations of about $50-100 million, will be sufficient to cover capital expenditure of $422 million and scheduled maturity of debt of 162 million over the next 12 months. "Medco has successfully completed its refinancing exercise in 2012 and has arranged for sufficient funds to largely complete its planned capital expenditure for next two years" says Vikas Halan, a Moody's Vice President and Senior Analyst. Medco plans to invest about $1 billion in exploration and development projects over the next two years. Its production and reserves, which have been declining as most of the producing fields have matured, will start improving from 2014 when its Senoro project starts producing. The company expects Senoro to produce 310 million standard cubic feet a day from last quarter of 2014. "Although the large capex plan will increase leverage and exposes the company to execution risk, we derive comfort from management's successful track record in Indonesia and the presence of other established players in the Senoro Project including state-owned Pertamina (Baa3 stable)" adds Halan. The company's gross debt to proved developed reserves has already increased beyond the downgrade threshold of $10 per barrel of oil equivalent (boe) in 2012 and will remain elevated for the next couple of years until about 60 million boe of reserves are classified as developed on completion of the Senoro project in 2014. The company's retained cash flow (RCF) to debt has also been weak at about 7% to 8% over the last three years. Over the medium term, Medco's leverage will remain elevated as it completes its projects. Upward pressure on the rating is therefore limited. Credit metrics than can support a higher ratings include debt to proved developed reserves of below $ 8/ boe and debt to average daily production of below $27,000 / boe. The rating can come under pressure, if the company fails to execute its projects in time or within budget such that its credit metrics deteriorate more than expected or fail to improve to more appropriate levels by 2015. Credit metrics that Moody's will consider appropriate for the current rating include debt to proved developed reserves of below $10/ boe and debt to average daily production of below $30,000 / boe. The B2 rating continues to reflects Medco's modest reserve and production base as well as significant execution risk given its development plans in Indonesia and overseas. The rating also reflects significant reinvestment risk given the depleting reserves -- of which some are undergoing long-term natural decline. The company therefore requires additional capex to arrest declining levels of production. Such capital spending will increase the company's leverage and execution risk, particularly given that its growth plans involve investments in overseas locations where Medco's experience is limited. The principal methodology used in this rating was Global Independent Exploration and Production Industry Methodology published in December 2011. Headquartered in Jakarta, Medco is predominantly an oil & gas E&P company with additional operations in drilling, downstream oil & gas activities, and power generation in Indonesia. Medco has also expanded its operations overseas to the US, the Middle East (including Libya, Tunisia, Oman, and Yemen), and Cambodia. MERPATI NUSANTARA: Restructuring Team Formed to Save Airline ------------------------------------------------------------ Antara News reports that State Enterprises Minister Dahlan Iskan has said a team will be formed to restructure the debts of state- owned Merpati Nusantara airlines. According to the news agency, Merpati has a total debt of IDR6 trillion to the government, aircraft lessor and a number of other state companies including oil and gas company PT Pertamina, airport operators PT Angkasa Pura I and PT Angkasa Pura II and asset management company PT Perusahaan Pengelola Aset (PPA). Mr. Dahlan said the restructuring team is formed in a bid to save the debt ridden airline, the report relates. He said the team will be headed by Wahyu Hidayat, former president of the airline, says Antara News. Antara News relates that Mr. Dahlan said the team will seek to roll over repayment of its debts or covert the debts into equity under debt to equity swap. About Merpati Nusantara Headquartered in Jakarta, Indonesia, PT Merpati Nusantara Indonesia -- http://www.merpati.co.id/-- is a state-owned carrier that services predominantly international routes. The carrier is facing the threat of being declared bankrupt with IDR1.6 trillion in accumulated losses. * * * The Jakarta Globe reported on May 19, 2011, that State Enterprises Minister Mustafa Abubakar said the financial restructuring of Merpati Nusantara Airlines will carry on despite a recent crash that led to questions about the safety of its fleet. Jakarta Globe said Merpati was under the care of the state-asset management company Perusahaan Pengelola Aset, which has injected hundreds of billions of rupiah to bring it back to profitability. But after the crash of a Merpati MA-60 that killed 25 people on May 7, 2011, pressure is building to let the airline go under. ========= J A P A N ========= JCREF CMBS 2007-1: S&P Lowers Rating on Class E Notes to CCC- ------------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered to 'CCC- (sf)' from 'CCC (sf)' its rating on the class E floating- rate notes issued under the Japan Commercial Real Estate Funding CMBS 2007-1 G.K. (JCREF CMBS 2007-1) transaction. At the same time, S&P affirmed its ratings on the class A to D notes, and the interest-only (IO) class X TK Investment issued under the same transaction. The servicer has completed the sales of the properties backing one of the transaction's remaining underlying loans and specified bonds (hereafter, collectively referred to as "loans"). Although the actual recovery amount has yet to be calculated, pending the completion of final calculations at the underlying special-purpose company (SPC) level, S&P believes the loan will likely incur a loss because the outstanding principal on the loan exceeds the amount collected through the sales of the related collateral properties. The loan originally represented about 22% of the total initial issuance amount of the notes. S&P lowered its rating on class E because, in its view, the principal on this class--the transaction's most subordinate class--is now more likely to be impaired. S&P affirmed its ratings on classes A to D. This is because, although S&P believes the likely recovery amounts from some of the underlying loans are under downward pressure based on the performance of the underlying properties, credit enhancement levels for the senior classes have improved, reflecting progress in the sales of the collateral properties. The total outstanding amount of classes A to E has declined to about 59% of the initial amount. JCREF CMBS 2007-1 is a multiborrower commercial mortgage-backed securities (CMBS) transaction. Nine loans originally secured the notes, and 56 real estate properties and real estate trust certificates initially backed the loans. The sales of the properties backing three of the underlying loans have been completed. Barclays Securities Japan Ltd. (formerly, Barclays Capital Japan Ltd.) arranged the transaction, and Premier Asset Management Co. acts as the servicer. The ratings reflect S&P's opinion on the likelihood of the full and timely payment of interest and the ultimate full repayment of principal by the transaction's legal final maturity in December 2015 for the class A notes, the full payment of interest and principal by the transaction's legal final maturity for the class B to E notes, and the timely payment of available interest for the class X TK Investment. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATING LOWERED Japan Commercial Real Estate Funding CMBS 2007-1 G.K. JPY58.2 billion commercial mortgage-backed floating rate notes due December 2015 Class To From Initial issue amount Coupon E CCC- (sf) CCC (sf) JPY2.7 bil. Floating rate RATINGS AFFIRMED Japan Commercial Real Estate Funding CMBS 2007-1 G.K Class Rating Initial issue amount Coupon A AA (sf) JPY39.3 bil. Floating rate B BBB- (sf) JPY6.2 bil. Floating rate C B- (sf) JPY5.3 bil. Floating rate D CCC (sf) JPY4.7 bil. Floating rate X (TK Investment) AAA (sf) JLOC 39: Moody's Lowers Ratings on Two Trust Certificates --------------------------------------------------------- Moody's Japan K.K. has downgraded the ratings on the Class B and C trust certificates issued by JLOC 39 Trust. The affected ratings are as follow: Class B, downgraded to Ca (sf); previously on August 31, 2012, downgraded to B2 (sf) Class C, downgraded to C (sf); previously on August 31, 2012, downgraded to Caa3 (sf) Deal Name: JLOC 39 Trust Classes: B and C trust certificates Issue Amount (initial): JPY9.3 billion Dividend: Floating Issue Date (initial): December 21, 2007 Final Maturity Date: April 2014 Underlying Asset (initial): 14 specified bonds, a non-recourse loan, and cash Originator: Morgan Stanley Japan Securities Co, Ltd (as of the issue date) Arranger: Morgan Stanley Japan Securities Co, Ltd (as of the issue date) Ratings Rationale: The rating action over the Class B and C trust certificates are prompted by Moody's expectation that they will likely incur losses after taking into consideration the potential recovery from special servicing of the underlying office building. JLOC 39 Trust is currently secured by a bond backed by an office building in central Tokyo, and which will legally mature in April 2014. The bond passed its expected maturity date in February 2012. Based on the special servicer's report as of April 16, the potential recovery proceeds will fall short of Moody's assumptions made at the last rating action in August 2012. The stressed recovery comes from factors such as 1) the sustained high vacancy of the underlying property amid weak rental conditions in the sub- markets; 2) an arrangement that Class A certificate holders have the controlling right when voting on the special servicer's recovery plan, and their interest may be limited to covering Class A's outstanding balance instead of maximizing values for Class B and C; 3) concerns regarding the building's ownership structure and 4) seismic risks. Primary sources of assumption uncertainty are the current macroeconomic environment surrounding the commercial real estate market, especially the occupancy rates, rents and lending stance by banks. Vacancy rates in Tokyo's business areas are fluctuating between 8% and 9%, and rents continue to decline moderately. In the non-Tokyo office market, high vacancy rates continue to weigh on rents. Moody's did not conduct any additional cash flow analysis or stress scenarios, because the ratings rely on the potential recovery proceeds from special servicing of the underlying property. The principal methodology used in this rating was "Updated: Moody's Approach to Rating CMBS Transactions in Japan (June 2010)" published in June 2010. ==================== N E W Z E A L A N D ==================== MAINZEAL PROPERTY: Shipley Discloses Role in Mainzeal ----------------------------------------------------- Australian Associated Press reports that former New Zealand prime minister Jenny Shipley has disclosed her role at the failed Mainzeal Property and Construction Ltd to China Construction Bank, the world's second-biggest lender by market value, where she is a director. AAP relates that the Chinese lender said Dame Jenny had notified it that she had served as chairman and independent director of the group which was put in receivership on February 6 and liquidation on February 28. "Based on information available to Dame Jenny Shipley the total amount involved in the liquidation of Mainzeal has not been finalised as at the date of this announcement, but likely to be $NZ70 million or above," China Construction said in a statement to the Hong Kong stock exchange, AAP reports. As Mainzeal is still being liquidated she is "not in a position to indicate the possible outcome of liquidation proceedings". According to the report, Dame Jenny was appointed chairman and director of Mainzeal on December 31 and resigned on February 5. Former head of Brierley Investments Paul Collins and a Tauranga businessman, Clive Tilby, resigned from the board of Mainzeal at the same time, leaving Richard Yan, the ultimate shareholder in Mainzeal, as sole director, AAP discloses. AAP says Dame Jenny will stand down as a director of China Construction at its annual shareholders' meeting as one of three independent non-executive directors who are retiring by rotation from the board, the newzealandinc.com website reported on April 17. Her place would be taken by former Treasury secretary Murray Horn. She was grilled about her suitability as chairwoman for state- owned electricity company Genesis Energy when she appeared before parliament's commerce select committee in early March and would not answer calls from Labour's Clayton Cosgrove for assurances there was nothing relating to her Mainzeal role which could damage Genesis's reputation, AAP adds. About Mainzeal Property Mainzeal Property and Construction Ltd is a New Zealand-based property and construction company. The company forms part of the Mainzeal Group, which is owned by Richina Inc, a privately held New Zealand-based company with a strong China focus. Colin McCloy and David Bridgman, partners from PricewaterhouseCoopers, on Feb. 6, 2013, were appointed receivers to Mainzeal Property and Construction Limited and associated entities as a result of a request made by its director to BNZ. Mainzeal's director, Richard Yan advised that following a series of events that had adversely affected the Company's financial position coupled with a general decline in major commercial construction activity, and in the absence of further shareholder support, the Company could no longer continue trading. The receivers are currently in talks with some parties interested in buying the business and assets of Mainzeal, either as a whole or by segment. 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. ROSS ASSET: FMA Probes Investors Over RAM Collapse -------------------------------------------------- The New Zealand Herald reports that the Financial Markets Authority has written to Ross Asset Management investors trying to get information to help its probe of the collapsed Wellington firm. The FMA on Friday sent out a letter and a 16-page questionnaire to those who had money with RAM, the report relates. "Substantial enquiries have already been conducted by the investigation team, and the further information sought here is very important to our investigation," the FMA's Jason Lunjevich said in the letter obtained by the Herald. According to the report, the authority is looking for information specifically from those who still had money with RAM last September, around a month before the firm and the home of its founder, David Ross, were raided by the FMA. Mr. Ross was still winning over clients at this time and some investors were even considering giving him more money, the report notes. As reported in the Troubled Company Reporter-Asia Pacific on Nov. 8, 2012, the High Court appointed PricewaterhouseCoopers partners John Fisk and David Bridgman as Receivers and Managers to Ross Asset Management Limited and nine other associated entities following application by the Financial Markets Authority. The associated entities are: * Bevis Marks Corporation Limited; * Dagger Nominees Limited; * McIntosh Asset Management Limited; * Mercury Asset Management Limited; * Ross Investment Management Limited; * Ross Unit Trusts Management Limited; * United Asset Management Limited; * Chapman Ross Trust; * Woburn Ross Trust; * Ace Investments Limited or Ace Investment Trust Limited or Ace Investment Trust; * Vivian Investments Limited; and * Ross Units Trusts Limited. The Receivers and Managers have also been appointed to Wellington investment adviser David Robert Gilmore Ross personally. Mr. Fisk said they have identified investments of nearly NZ$450 million held on behalf of more than 900 investors across 1,720 individual accounts. The High Court in mid-December ordered John Fisk and David Bridgman be appointed liquidators of these companies: -- Ross Asset Management Limited (In Receivership); -- Bevis Marks Corporation Limited (In Receivership); -- McIntosh Asset Management Limited (In Receivership); and -- Mercury Asset Management Limited (In Receivership). ===================== P H I L I P P I N E S ===================== ALBAY ELECTRIC: Protesters Sue NEA Over Privatization ----------------------------------------------------- Business Mirror reports that protesters against the privatization of the bankrupt Albay Electric Cooperative (Aleco) are suing the National Electrification Administration (NEA) and the interim board it created for pushing for the cooperative's privatization. Business Mirror says the complaint filed with the Regional Trial Court (RTC) seeks the issuance of a temporary-restraining order, including a writ for prohibition against the eight-member from pushing the plan. The Aleco interim board under NEA-designated project supervisor Veronica Briones had already called for a pre-bid conference with five giant firms attending and indicating interest to buy Aleco, including its close to PHP4-billion debts, the report recalls. Bishop Joel Baylon of the Diocese of Legazpi, chairman of the NEA- created Aleco interim board, said among the four interested buyers are the Aboitiz Group which owns the Tiwi (Albay) geothermal power plant, the Lopez group which owns the Bacon-Manito geothermal power at the boundary of Albay and Sorsogon, and the San Miguel Corp., according to the report. Business Mirror reports that lawyer Bartolome Rayco and one Darlan Barcelon, both acting as consumer-members, filed the petition before the RTC saying the interim board efforts to allow a private firm operate Aleco through its so-called Private Sector Participation (PSP) scheme is illegal, saying it did not have the consumers-members approval as a cooperative. Business Mirror relates that Mr. Rayco, lawyer of the Aleco Union Employees, said despite other available remedies to bail out Aleco, the interim board headed by Bishop Baylon allegedly allowed itself to be used by the NEA to push the privatization plan hatched several years ago. Mr. Rayco said Aleco, touted as extremely graft-ridden and among the 10 worst cooperatives in the country, had been under NEA management most of the past 30 years alternating with the Aleco board whose members were elected by consumers, the report adds. Albay Electric Cooperative distributes electricity to the entire province of Albay, Philippines. Aleco earlier faced disconnection of power supply from the main grid due to its failure to meet its financial obligations with Philippine Electricity Market Corp., the spot market's operator, and the National Grid Corp. of the Philippines, the private company running the country's power transmission highways, philstar.com reported. To help the utility improve operations as well as negotiate with power suppliers, NEA, which administers electric cooperatives with financial, technical and institutional concerns, took over Aleco in February this year. EXPORT BANK: Uninsured Depositors Unlikely to Get Full Payment -------------------------------------------------------------- philstar.com reports that the Philippine Deposit Insurance Corp. (PDIC) said uninsured depositors of the shuttered Export and Industry Bank will take a haircut on their money once they are paid by the government. "Their claims will not be settled 100 percent," philstar.com quotes Nancy Sevilla-Samson, PDIC vice-president for receivership, as saying. Uninsured deposits are those in excess of the P500,000 maximum insured deposits prescribed under law per each account owner. PDIC data showed Exportbank's uninsured deposits totaled P11 billion from 2,666 accounts. Last April 16, philstar.com recalls, the state deposit insurer announced it already received the Bangko Sentral ng Pilipinas's go signal to proceed with the liquidation of Exportbank after two failed public auctions. philstar.com relates that the process will include selling PHP13.65 billion worth of assets to settle PHP24.67 billion in liabilities, according to latest data. This represented a deficiency of PHP11.02 billion. Since priority will be given to Exportbank's creditors such as share and bondholders, Ms. Sevilla-Samson said there will be no enough money to meet all uninsured deposits, philstar.com reports. "It will be nearly impossible," she added, referring to the settlement of all uninsured deposits in full. Headquartered in Makati City, Manila, Export & Industry Bank -- http://exportbank.com.ph/-- has 50 branches and has revived former Urban Bank unit under new names. Its principal activity is the provision of commercial banking services such as deposit taking, loans and trade finance, domestic and foreign fund transfers, treasury, foreign exchange and trust services. As reported in the Troubled Company Reporter-Asia Pacific on April 27, 2012, ABS-CBNnews.com said Bangko Sentral ng Pilipinas placed EIB under receivership on April 26, 2012. The Monetary Board cited the bank's "inability to meet obligations as they becomes due, insufficient realizable assets to meets its liabilities and its inability to continue its business without involving probable losses to its depositors and creditors." The Philippine Deposit Insurance Corporation (PDIC) took over the Export & Industry Bank on April 27, 2012, to implement Monetary Board Resolution No. 686 dated April 26, 2012. As Receiver, PDIC will gather all the assets of the closed bank and verify and validate all bank records. The Monetary Board (MB) of the BSP this month ordered PDIC to proceed with the liquidation of EIB. The order was issued pursuant to Section 30 of Republic Act 7653 (the New Central Bank Act) after the MB received the report of the PDIC on the non- satisfaction to the conditions for the rehabilitation of EIB. The March 20, 2013 rebidding for the rehabilitation of EIB was declared a failure when no letter of interest was received from any of the pre-qualified strategic third party investors (STPIs). For the bidding last Oct. 18, 2012, no bids were received from the pre-qualified STPIs who submitted letters of interest to participate in the bidding. The net realizable value of EIB's recorded assets estimated at PHP13.65 billion is deficient by PHP11.02 billion to cover its liabilities aggregating to PHP24.67 billion as of December 31, 2012. * Moody's Affirms Ba1 Ratings on Three Philippine Banks ------------------------------------------------------- Moody's Investors Service has affirmed the Ba1 long-term local and foreign currency deposit ratings of three Philippine banks, namely Bank of the Philippine Islands (BPI), BDO Unibank, Inc. (BDO) and Metropolitan Bank & Trust Company (MBT). The rating outlook of all three banks remains stable. The following ratings were also affirmed: Ba1 long-term foreign currency senior unsecured debt of BDO with a stable outlook, Ba2 local currency subordinated debt rating of MBT with a stable outlook, and Not Prime (NP) short-term local and foreign currency deposit ratings of BPI, BDO and MBT. At the same time, the bank financial strength rating (BFSR)/ baseline credit assessment (BCA) of BPI and MBT were revised to D+/ba1, from D/ba2. The outlook of the two banks' BFSR remains stable. BDO's BFSR/BCA remains unchanged at D/ba2; the outlook of its BFSR was revised to positive from stable. MBT's foreign currency preferred stock rating was upgraded to B1 (hyb) from B2 (hyb). The rating outlook remains stable. Ratings Rationale: Long-term ratings The affirmation of the Ba1 long-term deposit ratings of the three banks with a stable outlook reflects the strong liquidity and capitalization of the banks that continue to support the banks' credit profiles at the Ba1 rating level. Moreover, Moody's expects the steady trend of good profitability to continue and support the banks' capital replenishment efforts as they pursue credit growth and prepare for higher capital requirements under Basel III. At the same time, the deposit ratings and their outlook remain in line with the rating and outlook of the Philippine sovereign, to reflect Moody's view of the high degree of correlation between sovereign and banking risk in the Philippines, attributed to the banks' domestically-focused businesses that do not benefit from any meaningful cross-border diversification, and (ii) their high level of direct government debt exposure. BDO's foreign currency senior unsecured debt rating of Ba1 is in line with its deposit rating, and the rating incorporates one notch of systemic support uplift from its ba2 BCA. MBT's local currency subordinated debt rating of Ba2 is rated one notch below its deposit rating, to reflect the subordination of claim relative to depositors and senior creditors. MBT's foreign currency preferred stock rating of B1(hyb) continues to be rated three notches below its Adjusted BCA of ba1. Standalone credit profiles of BPI and MBT The revision of BPI's and MBT's BCAs -- measuring their standalone credit strength -- to ba1 from ba2 results from the banks' improved financial fundamentals, particularly asset quality and loss-absorption capacity, which position them well relative to similar Moody's D+/ba1 rated banks. Both BPI and MBT have shown consistent improvements in asset quality, marked by the declines in absolute non-performing loans (NPL) and gross NPL ratios, and increases in NPL coverage ratios. At end-2012, the gross NPL ratio for BPI was 2.1%, and MBT 1.8%. Both banks have better asset quality metrics than the Philippine banking system-average and compare favorably with other Moody's D+/ba1 rated banks. The banks' loss absorption capacities have also improved in line with their asset quality, supported by high capitalization levels reflected by Tier 1 capital ratios above 13% and NPL coverage ratios that are either close to or above 100%. Moreover, the risk- adjusted profitability of both banks continued to improve in 2012 - as a result of steady loan growth, stable net interest margins, and moderating credit costs -- and in turn, supported internal capital generation. At end-2012, net income as a percentage of average risk-weighted assets for BPI was 2.8%, and MBT 2.5%; both banks recorded higher risk-adjusted profitability than Moody's regional D+/ba1 median of 1.8%. Other factors reflected in BPI's and MBT's ba1 BCAs include the banks' well-established domestic franchise reflected by their dominant market shares in terms of banking system deposits and loans, and their robust liquidity profiles that are well-supported by core deposit funding and extensive branch networks. Standalone credit profile of BDO The revision of the outlook of BDO's D BFSR (mapping to a BCA of ba2) to positive from stable, reflects Moody's expectations that (i) its asset quality metrics will continue to improve, (ii) its risk-adjusted profitability will also improve as a consequence of a moderation in associated credit costs, and (iii) its capitalization, enhanced from its recently-completed rights issue, will remain at stronger-than-historic levels and support its business growth and loss-absorption capacity over the next 12-18 months. BDO's ba2 BCA continues to reflect the strength of its domestic franchise from being the leader in terms of loans and deposits market share in the Philippines, its stable liquidity profile, and its weaker asset quality and risk-adjusted profitability relative to its peers. Based on the bank's 2012 performance, its asset quality and risk- adjusted profitability have improved year-over-year, but are still lagging the regional median for Moody's D+/ba1 rated banks, as well as BPI and MBT. At end-2012, BDO's NPL ratio was 2.8%, and its net income was 1.7% of its average risk-weighted assets. BDO's Tier 1 capital ratio rose to 15.3% at end-2012, from 10.2% a year ago, largely driven by the rights issue that was completed in July 2012. Moody's expects BDO's capitalization to remain at high levels above regulatory requirements and be sufficient to support further credit growth. What Could Drive The Ratings Down/Up BPI and MBT BPI's and MBT's ratings could be downgraded if: [1] aggressive organic expansion or acquisitions result in a significant increase in its risk profile; and/or [2] the operating environment weakens significantly or underwriting practices become loose, resulting in the gross NPL ratio exceeding 3%; and/or [3] an increase in NPLs without a corresponding increase in loan loss provisions, resulting in the NPL coverage falling below 80%; and/or [4] a material decline in its capital buffer, such that Tier 1 ratio falls below 10%. It is unlikely for BPI and MBT to be rated above the sovereign as Moody's views the correlation between the bank and the sovereign to be high. The upgrade of the sovereign rating may create upward rating pressure on the banks' ratings, only if the banks consistently maintain: [1] gross NPLs below 2% of total loans; and/or [2] net income of more than 2.5% of average risk-weighted assets; and/or [3] high level of loss absorption capacity reflected by Tier 1 ratio of above 12%. BDO BDO's ratings could be downgraded if [1] aggressive organic expansion or acquisitions result in a significant increase in its risk profile; and/or [2] the operating environment weakens significantly or underwriting practices become loose, resulting in the NPL ratio exceeding 4.5%; and/or [3] NPLs rise without a corresponding increase in loan loss provisions, resulting in the NPL coverage falling below 80%; and/or [4] its capital buffer declines materially, such that Tier 1 capital ratio falls below 9%. It is unlikely for BDO to be rated above the sovereign as Moody's views the correlation between the bank and the sovereign to be high. Nonetheless, the following factors could result in an upgrade of BDO's BFSR: [1] reduction of its non-performing assets (non-performing loans (NPL), foreclosed assets and assets held by its special purpose vehicles) to below 20% of equity and loan loss reserves; and/or [2] evidence that it can continue to rein in credit costs and improve its risk-adjusted profitability, reflected by net income of above 2.5% of average risk-weighted assets. All three banks are headquartered in Manila and reported total assets as follows: BPI: PHP985 billion ($24 billion) as of Dec 31, 2012 BDO: PHP1,244 billion ($30 billion) as of Dec 31, 2012 MBT: PHP1,041 billion ($25 billion) as of Dec 31, 2012 The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. ================= S I N G A P O R E ================= AMARU INC: Former Accountant Withdraws Audit Report for 2011 ------------------------------------------------------------ WilsonMorgan, LLP, Amaru, Inc.'s previous independent registered public accounting firm who issued the audit report for the Company's fiscal year ended Dec. 31, 2011, notified the Board of Directors of the Company that they were withdrawing their audit report for the fiscal year ended Dec. 31, 2011, and that said audit report should no longer be relied upon. The reasons for the withdrawal of said audit report were provided by WM in its letter dated as of April 18, 2013, to the Company. WM stated that when they were contacted in March 2013 by Wei Wei & Co., LLP, the Company's current independent registered public accounting firm, in connection with the audit of the financial statements for the fiscal year ended Dec. 31, 2012, to review certain workpapers from the audit of the 2011 Financial Statements and to obtain their consent for the inclusion of the 2011 Financial Statements in the Company's annual report on Form 10-K, WM discovered that significant workpapers for the audit of the 2011 Financial Statements were missing from their audit file. WM also informed the Company that they discovered that there was not a second partner, or "concurring" review, of the audit prior to the issuance of the audit report. The new audit of the fiscal year ended Dec. 31, 2011, will be performed by Wei Wei & Co., LLP. WM agreed to cover the full cost of that audit, including, any other related filing, legal and other fees and expenses. The Company will file an amended Form 10-K for the fiscal year 2011 and any amended quarterly reports as may be required. About Amaru Inc. Singapore-based Amaru, Inc., a Nevada corporation, is in the business of broadband entertainment-on-demand, streaming via computers, television sets, PDAs (Personal Digital Assistant) and the provision of broadband services. The Company's business includes channel and program sponsorship (advertising and branding); online subscriptions, channel/portal development (digital programming services); content aggregation and syndication, broadband consulting services, broadband hosting and streaming services and E-commerce. After auditing the 2011 results, Wilson Morgan, LLP, in Irvine, California, noted that the Company has sustained accumulated losses from operations totalling $40.7 million at Dec. 31, 2011. This condition and the Company's lack of significant revenue, raise substantial doubt about the Company's ability to continue as going concern, the auditors said. Amaru reported a net loss from operations of $1.37 million in 2011, compared with a net loss from operations of $1.50 million in 2010. The Company's balance sheet at Sept. 30, 2012, showed $3.28 million in total assets, $3.08 million in total liabilities and $195,261 in total stockholders' equity. ==================== S O U T H K O R E A ==================== GS ENGINEERING: S&P Lowers CCR to 'BB+' and Withdraws Rating ------------------------------------------------------------ Standard & Poor's Ratings Services said it has lowered its long- term corporate credit rating on Korea-based GS Engineering & Construction Corp. (GS E&C) to 'BB+' from 'BBB-'. At the same time, S&P withdrew the rating at the company's request. At the time of the withdrawal, the outlook on GS E&C was negative. The downgrade mainly reflects S&P's view that weaker profitability in GS E&C's overseas businesses and a prolonged downturn in the property market in Korea will significantly worsen the company's financial risk profile over the next 12 months. S&P expects the company to make an operating loss of about Korean won (KRW) 800 billion in 2013, primarily due to cost overruns in its overseas engineering, procurement, and construction businesses. Also, S&P expects the company to improve its operating performance and financial measures only modestly in 2014, reflecting continued uncertainties related to its overseas and domestic businesses. Notwithstanding weaker financial ratios for the rating level, S&P believes the company's large cash holdings--about KRW2.2 trillion as of March 31, 2013--and "adequate" liquidity should support its "significant" financial risk profile over the next one to two years. Still, a large balance of payment guarantee that GS E&C extended to property developers--worth KRW2.1 trillion as of Dec. 31, 2012--remains a negative factor for its financial risk profile. S&P believes the company's business risk profile will remain "satisfactory," supported by its solid relationship with group affiliates and its good position in the domestic housing and construction market. The negative outlook at the time of the withdrawal mainly reflects S&P's view that uncertainties over GS E&C's overseas engineering, procurement and construction businesses and the domestic property market could further hurt the company's credit quality. =============== X X X X X X X X =============== * BOND PRICING: For the Week April 22 to April 26, 2013 ------------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- COM BK AUSTRALIA 1.50 04/19/2022 AUD 74.12 MIDWEST VANADIUM 11.50 02/15/2018 USD 61.41 MIDWEST VANADIUM 11.50 02/15/2018 USD 58.13 NEW S WALES TREA 0.50 09/14/2022 AUD 69.30 NEW S WALES TREA 0.50 10/07/2022 AUD 69.10 NEW S WALES TREA 0.50 10/28/2022 AUD 68.92 NEW S WALES TREA 0.50 11/18/2022 AUD 68.73 NEW S WALES TREA 0.50 12/16/2022 AUD 69.06 NEW S WALES TREA 0.50 02/02/2023 AUD 68.62 NEW S WALES TREA 0.50 03/30/2023 AUD 68.12 TREAS CORP VICT 0.50 08/25/2022 AUD 70.96 TREAS CORP VICT 0.50 03/03/2023 AUD 69.26 TREAS CORP VICT 0.50 11/12/2030 AUD 48.30 CHINA ----- CHINA GOVT BOND 4.86 08/10/2014 CNY 102.47 CHINA GOVT BOND 1.64 12/15/2033 CNY 68.22 INDIA ----- CORE PROJECTS 7.00 05/07/2015 USD 50.79 DR REDDY'S LABOR 9.25 03/24/2014 INR 5.00 JCT LTD 2.50 04/08/2011 USD 20.00 MASCON GLOBAL LT 2.00 12/28/2012 USD 10.00 PRAKASH IND LTD 5.63 10/17/2014 USD 68.00 PRAKASH IND LTD 5.25 04/30/2015 USD 65.61 PUNJAB INFRA DB 0.40 10/15/2024 INR 31.52 PUNJAB INFRA DB 0.40 10/15/2025 INR 28.60 PUNJAB INFRA DB 0.40 10/15/2026 INR 25.98 PUNJAB INFRA DB 0.40 10/15/2027 INR 23.62 PUNJAB INFRA DB 0.40 10/15/2028 INR 21.53 PUNJAB INFRA DB 0.40 10/15/2029 INR 19.68 PUNJAB INFRA DB 0.40 10/15/2030 INR 18.03 PUNJAB INFRA DB 0.40 10/15/2031 INR 16.54 PUNJAB INFRA DB 0.40 10/15/2032 INR 15.21 PUNJAB INFRA DB 0.40 10/15/2033 INR 14.01 PYRAMID SAIMIRA 1.75 07/04/2012 USD 1.00 REI AGRO 5.50 11/13/2014 USD 72.08 REI AGRO 5.50 11/13/2014 USD 72.08 RELIGARE FINVEST 11.75 02/08/2015 INR 3.92 SHIV-VANI OIL 5.00 08/17/2015 USD 44.44 SREI INFRA FIN 8.90 03/22/2022 INR 28.31 SUZLON ENERGY LT 7.50 10/11/2012 USD 65.13 SUZLON ENERGY LT 5.00 04/13/2016 USD 50.76 JAPAN ----- EBARA CORP 1.30 09/30/2013 JPY 99.95 ELPIDA MEMORY 2.03 03/22/2012 JPY 8.75 ELPIDA MEMORY 2.10 11/29/2012 JPY 8.75 ELPIDA MEMORY 2.29 12/07/2012 JPY 8.75 JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 72.10 JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 72.48 KADOKAWA HLDGS 1.00 12/18/2014 JPY 112.94 SHARP CORP 2.07 03/19/2019 JPY 71.91 SHARP CORP 1.60 09/13/2019 JPY 70.79 TOKYO ELEC POWER 1.96 07/29/2030 JPY 74.16 TOKYO ELEC POWER 2.37 05/28/2040 JPY 71.17 MALAYSIA -------- AMAN SUKUK 4.25 03/08/2028 MYR 4.19 DUTALAND BHD 7.00 04/11/2013 MYR 0.90 PHILIPPINES ----------- BAYAN TELECOMMUN 13.50 07/15/2006 USD 22.63 BAYAN TELECOMMUN 13.50 07/15/2006 USD 22.63 SINGAPORE --------- BAKRIE TELECOM 11.50 05/07/2015 USD 48.85 BAKRIE TELECOM 11.50 05/07/2015 USD 47.00 BLD INVESTMENT 8.63 03/23/2015 USD 68.75 BLUE OCEAN 11.00 06/28/2012 USD 36.38 BLUE OCEAN 11.00 06/28/2012 USD 36.38 CAPITAMALLS ASIA 2.15 01/21/2014 SGD 99.92 CAPITAMALLS ASIA 3.80 01/12/2022 SGD 101.10 DAVOMAS INTL FIN 11.00 12/08/2014 USD 29.25 DAVOMAS INTL FIN 11.00 12/08/2014 USD 29.25 F&N TREASURY PTE 2.48 03/28/2016 SGD 100.64 INDO INFRASTRUCT 2.00 07/30/2049 USD 1.88 SOUTH KOREA ----------- CHEJU REGION DEV 3.00 12/29/2034 KRW 69.12 EXP-IMP BK KOREA 0.50 08/10/2016 BRL 74.05 EXP-IMP BK KOREA 0.50 09/28/2016 BRL 74.03 EXP-IMP BK KOREA 0.50 10/27/2016 BRL 73.51 EXP-IMP BK KOREA 0.50 11/28/2016 BRL 72.93 EXP-IMP BK KOREA 0.50 12/22/2016 BRL 69.18 EXP-IMP BK KOREA 0.50 10/23/2017 TRY 70.91 EXP-IMP BK KOREA 0.50 11/21/2017 BRL 66.33 EXP-IMP BK KOREA 0.50 12/22/2017 TRY 69.85 EXP-IMP BK KOREA 0.50 12/22/2017 BRL 66.49 SINBO 14TH ABS 8.00 02/02/2015 KRW 30.28 SINBO 3RD ABS 9.00 07/27/2015 KRW 30.45 SRI LANKA --------- SRI LANKA GOVT 6.20 08/01/2020 LKR 73.00 SRI LANKA GOVT 7.00 10/01/2023 LKR 67.01 SRI LANKA GOVT 5.35 03/01/2026 LKR 56.31 SRI LANKA GOVT 9.00 07/01/2028 LKR 74.76 SRI LANKA GOVT 8.00 01/01/2032 LKR 67.89 SRI LANKA GOVT 9.00 01/10/2032 LKR 74.00 THAILAND -------- BANGKOK LAND 4.50 10/13/2003 USD 6.38 G STEEL 3.00 10/04/2015 USD 8.00 MDX PUBLIC CO 4.75 09/17/2003 USD 4.00 ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our 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 ***