/raid1/www/Hosts/bankrupt/TCRAP_Public/130509.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, May 9, 2013, Vol. 16, No. 91
Headlines
A U S T R A L I A
CMI FUEL SYSTEMS: Moves Into Voluntary Administration
HASTIE GROUP: Liquidator Sells Group's Joint Venture in Saudi
HOYTS GROUP: S&P Places 'B+' Issuer Credit Rating; Outlook Stable
MISSION NEW ENERGY: Cash at AUD113,000 as of March 31
STAINLESS TUBE: KordaMentha Appointed as Receivers
C H I N A
GREENTOWN CHINA: S&P Rates Chinese Renminbi-Denominated Notes B-
SUNTECH POWER: Reports $358 Million Revenue in Fourth Quarter
* Fitch Sees Wide Geographical and Hierarchical Disparity in LRGs
H O N G K O N G
CIFI HOLDINGS: Moody's Rates $275MM Five-Year Notes 'B2'
I N D I A
B M AUTOSALES: CRISIL Assigns 'B-' Ratings to INR90.4MM Loans
BHAI SAHIB: CRISIL Rates INR58.5MM Cash Credit at 'B+'
GURUSUKH VINTRADE: CRISIL Places 'B-' Rating on INR150MM Loans
KRISHNA VALLEY: CRISIL Assigns 'D' Ratings to INR93.2MM Loans
M B RUBBER: CRISIL Reaffirms 'B+' Rating on INR120MM Cash Credit
ROLTA INDIA: Fitch Assigns 'BB-' Issuer Default Rating
SAHYADRI RENEWABLE: CRISIL Rates INR100MM Term Loan at 'D'
SOCIETY FOR RESEARCH: CRISIL Puts 'D' Ratings on INR73MM Loans
TRANSTECH GREEN: CRISIL Assigns 'D' Ratings to INR500MM Loans
N E W Z E A L A N D
COOPER HORTICULTURAL: Taxpayers Shortchanged on SFC Sale
FLAMES INTERNATIONAL: Hotel Wind Up Process Halted
HANOVER FINANCE: NZ$12M House Sale May End Up in Investors' Hands
- - - - -
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A U S T R A L I A
=================
CMI FUEL SYSTEMS: Moves Into Voluntary Administration
-----------------------------------------------------
Manufacturer's Monthly reports that CMI Fuel Systems has moved
into voluntary administration.
The company makes LPG cylinders for the Falcon and Commodore
models, and will continue operations at its Bayswater plant in
Victoria until a new buyer can be found for the business,
according to Manufacturer's Monthly.
The report relates that with the plant still in operation 30 jobs
will be sustained at the company, and supplier Ai Automotive has
entered into a deal to manage and operate CMI's business.
Ai Automotive went into administration last year but the company's
receivers, McGrath Nicol, said it had taken temporary management
of CMI with a view towards a possible purchase, the report notes.
The report discloses that CMI is the latest automotive supplier to
fall on hard times, with SMR also announcing plans this week to
cut jobs and move part of its manufacturing production to
Thailand.
Mr. Holden said it had an adequate supply of LPG tanks and the
changes were not expected to cause any disruption to its
manufacturing production, the report adds.
CMI Fuel Systems is a key supplier to Ford and Holden.
HASTIE GROUP: Liquidator Sells Group's Joint Venture in Saudi
-------------------------------------------------------------
dissolve.com.au reports that PBB Advisory, the liquidator of
construction company Hastie Group, has sold the latter's Saudi
Arabia joint venture to a private investor in the country for $16
million.
dissolve.com.au relates that the liquidator said there are
reasonable grounds to believe there is no prospect that
shareholders will receive any return on their shares in the failed
construction and services provider.
It is said that potential recovery from the Hastie's business in
the Middle East is projected to happen in 2 or 3 years. The
operations in the region have been partially blamed why the
company entered liquidation, dissolve.com.au relays.
According to the report, the liquidator has been liaising with the
Australian Securities and Investments Commission, which is
conducting an investigation into potential duty breaches by the
directors of the company based on the January creditors' report of
PBB.
About Hastie Group
Hastie Group provided technical and engineering services to the
building, infrastructure and resources sectors. It had operations
in Australia, New Zealand, the United Kingdom, Ireland and the
Middle East and had approximately 7,000 employees worldwide
including approximately 4,000 in Australia.
The Hastie Group of companies appointed David McEvoy, Craig
Crosbie and Ian Carson of PPB Advisory as Voluntary
Administrators of all of the Australian entities of Hastie Group
on May 28, 2012.
Peter Anderson, Joseph Hayes, Jason Preston, and Matthew Caddy of
McGrathNicol were also appointed Receivers and Managers over a
limited number of trading businesses within the Hastie Group by a
syndicate of secured creditors on May 28, 2012. Those businesses
are Spectrum Fire and Safety, Hastie Services, Gordon Brothers
Industries and Austral Refrigeration.
McGrathNicol said the control of those businesses now rests with
the Receivers who intend to continue to trade each one on a
"business as usual" basis while moving quickly to prepare them
for public sale to secure their future. A sale process for the
Austral business was commenced prior to the appointment and the
Receivers intend to quickly complete that process.
The company was found to owe its bankers bankers AUD529.9 million
and other creditors about AUD100 million, Australian Associated
Press disclosed.
HOYTS GROUP: S&P Places 'B+' Issuer Credit Rating; Outlook Stable
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has assigned its
'B+' long-term issuer credit rating to Hoyts Group Holdings LLC.
The outlook on the long-term rating is stable. At the same time,
it assigned its 'BB-' issue credit rating and recovery rating of
'2' to the group's proposed U.S.-dollar (AUD296 million
equivalent) first-lien, senior secured bank loan and A$40 million
revolving credit facility; and its 'B-' issue credit rating and
recovery rating of '6' to the group's proposed U.S.-dollar (A$102
million equivalent) second-lien, senior secured bank loan.
"The 'B+' long-term issuer credit rating on Hoyts reflects our
view of the group's "fair" business risk profile and "highly
leveraged" financial risk profile," said credit analyst Paul
Draffin. Hoyts is undertaking a refinancing and recapitalization
of the group to facilitate a distribution of capital to its
private equity owners, Pacific Equity Partners. S&P's analysis
assumes that the proposed refinancing and recapitalization of the
group proceed as planned. The ratings on the proposed bank
facilities are based on draft documentation. The ratings assume
that the final debt-facility documentation does not vary
materially from the draft documentation.
"Our fair business risk profile assessment on Hoyts reflects the
group's relatively small earnings base, exposure to the
fluctuating popularity of feature films, and growing competition
from alternative entertainment sources, particularly online.
Tempering these weaknesses are the relatively concentrated
structure of the Australian and New Zealand cinema exhibition
markets; material barriers to competition; long-term and well-
spread property-lease agreements; relatively modern and well-
maintained cinema network; and the group's ownership of the
dominant cinema advertising company in Australia and New Zealand,"
said Mr. Draffin.
S&P's financial risk profile assessment on Hoyts reflects the
group's "highly leveraged" capital structure following the
proposed recapitalization, and Hoyts' 93% ownership by private
equity company Pacific Equity Partners. Following the
recapitalization, S&P expects fully adjusted debt to EBITDA to be
in the mid-to-high 6x range. S&P's rating anticipates that the
company's private equity owners will seek to periodically
releverage Hoyts to maximize the group's equity returns.
Accordingly, although Hoyts can delever over time, S&P has assumed
only modest deleveraging in the next few years.
The outlook on the long-term rating is stable. "We expect modest
organic growth, supported by periodic refurbishments and other new
initiatives, to support growing cash flows," said Mr. Draffin.
"This should allow key credit measures to be maintained in line
with expectations for the rating, including fully adjusted debt to
EBITDA of less than 7x."
Downward rating pressure could arise if weaker-than-expected
operating performance or debt-funded investment causes fully
adjusted debt to EBITDA to be sustained above 7x, or if there is a
material deterioration in the group's liquidity. Other drivers of
downward rating pressure could include a significant structural
change to the group's businesses, including a significant increase
in competition in the cinema advertising business, growing
competition from alternative entertainment sources, or a material
shortening in the exclusivity period for new film content that
materially affects box office revenues.
Upward rating pressure is considered unlikely given the financial
objectives of Hoyts' private equity owners.
MISSION NEW ENERGY: Cash at AUD113,000 as of March 31
-----------------------------------------------------
Mission New Energy Limited filed its quarterly report with the
U.S. Securities and Exchange Commission disclosing that it had
AUD113,000 in cash at March 31, 2013. A copy of the report is
available for free at http://is.gd/oOGQ4o
About Mission NewEnergy
Based in Subiaco, Western Australia, Mission New Energy 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 AUD4.9 million during the year
ended June 30, 2012, and, as of that date, the consolidated
entity's total liabilities exceeded its total assets by
AUD24.4 million.
The Company's consolidated balance sheet at Dec. 31, 2012, showed
AUD7.05 million in total assets, AUD27.29 million in total
liabilities and a AUD20.24 million net deficit.
STAINLESS TUBE: KordaMentha Appointed as Receivers
--------------------------------------------------
Patrick Stafford at SmartCompany reports that Stainless Tube Mills
and Stainless Tanks & Pressure Vessels, both part of the STM Group
of companies, have been placed in receivership. A third company,
Duraduct, which manufactured stainless steel products, has been
closed.
KordaMentha receiver Craig Shepard -- cshepard@kordamentha.com --
told SmartCompany the business had suffered an excessive debt
burden, and was placed in receivership as a result.
Both companies have continued to trade. SmartCompany, citing an
advertisement placed by the receivers, discloses that both
companies have recorded EBITDA of approximately AUD3 million.
According to the report, Mr. Shepard said KordaMentha and
consultants Kennedy Needham have already received expressions of
interest for the two companies -- especially for the Pressure
Vessels business, which distributes products to the mining
industry.
"The management had already been proactive in taking these
businesses to market. There has already been some live interest in
aspects of the group, and we've placed ads. Particularly for the
Pressure Vessels business, we're calling for expressions of
interest," the report quotes Mr. Shepard as saying.
SmartCompany relates Mr. Shepard said the companies were holding a
significant amount of debt, and, while not referring specifically
to the collapsed companies, noted the general pressure on
manufacturing caused by the Australian dollar.
However, he also said the companies are in a solid position to
continue trading and is confident of a sale, SmartCompany relays.
Stainless Tanks & Pressure Vessels was founded in 1991, and counts
24 employees. The business mainly constructs stainless steel
cylinders for industrial use. The other business in the company,
Stainless Tube Mills, is one of the largest manufacturers of steel
tubes in Australia.
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C H I N A
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GREENTOWN CHINA: S&P Rates Chinese Renminbi-Denominated Notes B-
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B-' unsolicited
long-term issue rating and 'cnB+' unsolicited long-term Greater
China regional scale rating to a proposed issue of Chinese
renminbi-denominated senior unsecured notes by Greentown China
Holdings Ltd. (B/Positive/--; cnBB-/--). The China-based
developer intends to use the proceeds to refinance certain
existing short-term debt, fund capital expenditure, and for
general corporate purposes.
The issue rating is one notch lower than the long-term corporate
credit rating on Greentown to reflect S&P's opinion that offshore
noteholders would be materially disadvantaged, compared with
onshore creditors, in the event of default. S&P anticipates that
the company's ratio of priority debt to total assets will continue
to be above S&P's threshold of 15% for speculative-grade
companies.
The rating on Greentown reflects the company's limited record of
consistent financial management, its improving but still high
leverage, and improving but weak profitability. Business and
financial support that Greentown could get from its second-largest
shareholder, Wharf (Holdings) Ltd.; Greentown's strong presence in
Hangzhou and Zhejiang provinces; and its established brand name
temper the above weaknesses. Greentown's business risk profile is
"weak" and its financial risk profile is "highly leveraged."
The positive outlook on the rating on Greentown reflects S&P's
view that the company's financial position is likely to improve in
the next 12 months. This is mainly because of Greentown's better
property sales execution, and further improvement in leverage and
funding cost with support from Wharf. S&P expects Greentown to
remain cautious toward land acquisitions, reduce its total debt,
and maintain sufficient cash while implementing a business
strategy aimed at steady growth.
SUNTECH POWER: Reports $358 Million Revenue in Fourth Quarter
-------------------------------------------------------------
Suntech Power Holdings Co., Ltd., announced preliminary financial
results for the fourth quarter and full year ended Dec. 31, 2012.
Preliminary results indicate that Suntech's shipments of
photovoltaic (PV) products for the fourth quarter of 2012 declined
by approximately 4 percent from the third quarter of 2012.
Revenues in the fourth quarter of 2012 were approximately $358
million, a sequential decline of 8 percent. Approximately 91
percent of revenues were generated from the sale of PV modules,
and 9 percent of revenues were generated from the sale of PV
systems, cells, silicon wafers and production equipment. Gross
margin in the fourth quarter of 2012 was approximately 0.4
percent.
In the full year 2012, preliminary results indicate Suntech
shipped approximately 1.8GW of PV products, in line with prior
guidance. Revenues for the full year 2012 were approximately
$1,625 million, a year-over-year decline of 48 percent.
Approximately 92 percent of revenues were generated from the sale
of PV modules, and 8 percent of revenues were generated from the
sale of PV systems, cells, silicon wafers and production
equipment. Gross margin for the full year 2012 was approximately
negative 1.4 percent.
"We are undertaking a number of restructuring initiatives to
address Suntech's balance sheet and improve the Company's cost
structure and operational efficiency. We are making progress and
are evaluating solutions that will take into account the rights
and interests of all of our stakeholders. In the meantime, we
continue to manufacture and deliver high-quality solar products to
our global customers," said David King, Suntech's CEO.
Update on Restructuring Initiatives
Wuxi Suntech, the Company's Chinese subsidiary, which is in the
process of restructuring, continues to work with the court-
appointed administrator and its stakeholders to improve its
financial position and outlook. The administrator has scheduled a
Wuxi Suntech creditors meeting in Wuxi on May 22, 2013, earlier
than previously anticipated, to present and discuss potential
solutions.
About Suntech
Wuxi, China-based Suntech Power Holdings Co., Ltd. (NYSE: STP)
produces solar products for residential, commercial, industrial,
and utility applications. With regional headquarters in China,
Switzerland, and the United States, and gigawatt-scale
manufacturing worldwide, Suntech has delivered more than
25,000,000 photovoltaic panels to over a thousand customers in
more than 80 countries.
As reported by the TCR on March 20, 2013, Suntech Power Holdings
Co., Ltd., has received from the trustee of its 3% Convertible
Notes a notice of default and acceleration relating to Suntech's
non-payment of the principal amount of US$541 million that was due
to holders of the Notes on March 15, 2013. That event of default
has also triggered cross-defaults under Suntech's other
outstanding debt, including its loans from International Finance
Corporation and Chinese domestic lenders.
* Fitch Sees Wide Geographical and Hierarchical Disparity in LRGs
-----------------------------------------------------------------
Fitch Ratings, in assessing Chinese local and regional
governments' (LRGs) ratings, says their ratings are expected to
have a wide geographical and hierarchical disparity. In a special
report published May 8, the agency says the general rating range
of Chinese LRGs is expected to be quite wide -- from the 'A'
category to non-investment-grade -- with likely higher ratings at
provincial or prefecture level and lower ratings among counties
and townships.
Fitch will adopt a globally consistent "building-block" approach
in assessing the credit quality of Chinese LRGs. Five major rating
factors are assessed -- the institutional framework, socio-
economic profile, budgetary performance, debt profile, and
governance and administration.
The institutional framework for China's subnationals is classified
by Fitch as "neutral", an intermediate position in the global
rated universe. The rationale for this assessment is the generally
stable regulatory regime, adequate control by the sovereign, a
moderately transparent revenue-transfer mechanism, and limited
fiscal flexibility.
GDP per capita of Chinese provincial administrations ranges from
USD3,100 to USD15,300, which reflects a considerably varied degree
of economic development. Composition of the economy and
demographic structure also vary widely, which influences revenue-
generation and spending pressure.
Chinese LRG deficits ranging from 2%-3% of fiscal revenue are
still modest in Fitch's rated universe, despite rising from an
aggregate CNY200bn in 2011 to CNY250bn in 2012. LRGs in coastal
regions generally have a more robust budgetary performance due to
stronger and more diversified revenues. Those in western regions
usually have more concentrated revenue sources such as real estate
and natural resources, and also rely heavily on central government
transfer.
Chinese LRGs' transparency is a key weakness. Some balance-sheet
items, such as total LRG-related debt, are generally not publicly
available. Details and reporting format consistency are also
uneven across sub-provincial governments.
LRGs have limited direct debt, but indirect debt incurred by local
government financing platforms (LGFPs) is large. China's National
Audit Office (NAO) identified CNY10.7trn in LRG debt at end-2010,
and Fitch estimates that this will have risen to CNY12.8trn by
end-2012. Adding borrowings raised through shadow-banking channels
could bring the figure closer to CNY15trn-CNY18trn, as cited by an
official at the NAO in March 2013.
LRGs face headwinds from slowing economic growth in China,
structural tax reform, rising social expenditures and large
indirect debt. Nevertheless, Fitch expects performance to remain
stable over the near term, in keeping with the outlook for
economic growth and continued solid revenues. The agency's view is
also reinforced by a consistently strong revenue transfer from
central government which would be likely to smooth over any short-
term volatility in debt-servicing.
The report, Evaluating the Creditworthiness of Chinese LRGs - Wide
Geographical and Hierarchical Disparity, is available on
www.fitchratings.com
================
H O N G K O N G
================
CIFI HOLDINGS: Moody's Rates $275MM Five-Year Notes 'B2'
--------------------------------------------------------
Moody's Investors Service assigned a definitive B2 senior
unsecured rating to the $275 million, 12.5%, five-year notes
issued by CIFI Holdings (Group) Co. Ltd.
CIFI's B1 corporate family rating remains unchanged.
The ratings outlook is stable.
Ratings Rationale:
Moody's definitive rating is at the same level as the provisional
(P)B2 rating assigned on February 15, 2013. The final terms and
conditions of the bond are consistent with Moody's expectations.
CIFI plans to use the proceeds from the issuance for debt
refinancing, land acquisitions, project developments and/or
general corporate purposes.
The principal methodology used in this rating was the Global
Homebuilding Industry Methodology published in March 2009.
CIFI Holdings (Group) Co. Ltd. was incorporated in Cayman Islands
in May 2011 and was listed on the Hong Kong Stock Exchange in
November 2012. CIFI focuses on developing residential and
commercial properties mainly in the Yangtze River Delta Region. It
has also expanded to the Pan Bohai Rim and the Central Western
Region. It owned 49 projects and had a land bank of 6.2 million
square meters at end-December 2012.
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I N D I A
=========
B M AUTOSALES: CRISIL Assigns 'B-' Ratings to INR90.4MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long term
bank facilities of B M Autosales Private Limited.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 55 CRISIL B-/Stable
Term Loan 35.4 CRISIL B-/Stable
The rating reflects BMPL's weak financial risk profile and
exposure to intense competition in automobile dealership market
along with supplier concentration risk. These rating weaknesses
are partially offset by the benefits that company derives from
long term experience of promoters in the automobile dealership
business.
Outlook: Stable
CRISIL's believes that (BMPL's) credit risk profile will remain
sensitive to the timely infusion of funds from the promoters to
service its debt obligations on account of low accruals due to its
initial years of operations. The outlook may be revised to
'Positive' if BMPL increases its scale of operations leading to
considerable improvement in its cash accruals, which will be
sufficient for payment of its term debt obligations. Conversely,
the outlook may be revised to 'Negative' in case the company's
liquidity deteriorates further on account of higher than expected
working capital requirements or if BMPL undertakes a large, debt-
funded capital expenditure program.
B M Autosales Private Limited is engaged in the dealership of
Hyundai Motor India Limited (HMIL, rated CRISIL A1+). Company has
its showroom in Dehradun; Uttarakhand. Company was incorporated in
2010 promoted by Mr. Brij Mohan Ajmani and his son Sachin Ajmani.
Company started its commercial operations after acquiring the
dealership for four wheeler vehicles from HMIL.
For 2011-12, BMPL reported a PAT loss of INR1.4 million on net
sales of INR365.7 million and for financial year 2010-11, BMPL had
reported a PAT loss of INR3.8 million on net sales of
INR63.1 million.
BHAI SAHIB: CRISIL Rates INR58.5MM Cash Credit at 'B+'
------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facility of Bhai Sahib & Son.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 58.5 CRISIL B+/Stable
The rating reflects BSS's small scale and working capital
intensive nature operations of the firm in fragmented industry.
These rating weaknesses are partially offset by the benefits that
BSS derives from long standing presence in paint trading industry
and average capital structure.
Outlook: Stable
CRISIL believes that the Bhai Sahab and Sons will maintain its
business risk profile because of its long standing presence in
paint trading industry. The outlook may be revised to 'Positive'
if BSS's scale of operations increases significantly along with
improvement in debt protection metrics. Conversely, the outlook
may be revised to 'Negative' if financial risk profile
deteriorates due to increase in working capital or large debt
funded capital expenditure.
BSS was incorporated in 1953 by Mr. Ajay Arora. It is engaged in
the business of trading in paints and its allied products. Its
office is located in Ghanta Ghar, Delhi.
For 2011-12, BSS reported a book profit of INR1.68 million on net
sales of INR348.5 million and for financial year 2010-11 BSS had
reported a book profit of INR 1 million on net sales of INR 299.2
million.
GURUSUKH VINTRADE: CRISIL Places 'B-' Rating on INR150MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Gurusukh Vintrade Services Pvt Ltd.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 7 CRISIL B-/Stable
Term Loan 143 CRISIL B-/Stable
The rating reflects GVSPL's exposure to risks associated with the
timely completion and stabilisation of its ongoing hotel project
in Raipur (Chhattisgarh) and the challenges that GVSPL is expected
to face in attaining optimum occupancy levels in its initial years
of operations. The rating also factors in significant stretch in
GVSPL's liquidity on account of high interest obligations during
the implementation phase of the project. These rating weaknesses
are partially offset by the benefits that the company derives from
its promoter's extensive entrepreneurial experience.
Outlook: Stable
CRISIL believes that GVSPL will continue to benefit from its
promoters' extensive entrepreneurial experience over the medium
term. The outlook may be revised to 'Positive' if GVSPL implements
its hotel project in a timely manner without any significant cost
overrun, and is able to demonstrate higher-than-expected occupancy
levels, leading to improvement in its liquidity. Conversely, the
outlook may be revised to 'Negative' in case of any significant
time or cost overruns in commissioning of GVSPL's project, leading
to pressure on its liquidity.
GVSPL, incorporated in 2010, is engaged in hospitality services at
Raipur (Chhattisgarh). The company is promoted by Raipur-based
Kalash family and is currently engaged in setting up a 4-star
hotel at Raipur. The hotel is expected to commence its operations
by December 2013.
KRISHNA VALLEY: CRISIL Assigns 'D' Ratings to INR93.2MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the bank facilities
of Krishna Valley Power Private Limited. The rating is driven by
delay by KVPPL in servicing its debt obligations. The delay has
been caused by the company's weak liquidity arising due to delays
in commissioning of its hydro-power project.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long-Term 1 CRISIL D
Bank Loan Facility
Term Loan 92.2 CRISIL D
KVPPL is part of the Gilada Group, promoted by Mr. Shankarlal
Gilada and his son Mr. Rajgopal Gilada. The Gilada Group comprise
of six entities having operations in financing, refractories,
renewable energy and concrete sleepers.
The company currently operates a hydroelectric power plant Vajra-
II of 1.5 MW near Shahapur in the Bhatsa river basin in
Maharashtra, which was commissioned in December 2012. The company
has one project in pipeline, which is expected to start by end of
2013-14 (refers to financial year, April 1 to March 31).
M B RUBBER: CRISIL Reaffirms 'B+' Rating on INR120MM Cash Credit
----------------------------------------------------------------
CRISIL has revised its outlook on the long-term bank facilities of
M B Rubber Pvt Ltd to 'Negative' from 'Stable' while reaffirming
the rating at 'CRISIL B+/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 10 CRISIL A4 (Reaffirmed)
Cash Credit 120 CRISIL B+/Negative (Outlook
revised from 'Stable' and
Rating Reaffirmed)
Letter of Credit 15 CRISIL A4 (Reaffirmed)
The change in outlook reflects deterioration in financial profile
of MBR, including its weakened liquidity. The company's financial
risk profile has deteriorated over the past 12 months, marked by
increase in debt to support its increasing working capital
requirements. The company's gearing was estimated at 4.38 times as
on March 31, 2013, as compared to earlier levels of 3.83 times as
on March 31, 2012. With the increase in working capital
requirements and modest cash accruals, the company's liquidity has
become weak, marked by high bank limit utilisation of 91 per cent
for the 12 months ended March 31, 2013. Furthermore, CRISIL
believes that MBR's working capital requirements are expected to
further increase over the medium term, with increasing scale of
operations. With modest cash accruals expected, the company's
reliance on working capital borrowings is expected to increase,
resulting in further stress on its liquidity.
The ratings continue to reflect MBR's small scale of operations,
weak financial risk profile, and large working capital
requirements. These rating weaknesses are partially offset by the
extensive experience of MBR's promoters in the footwear industry
and the company's established marketing network.
Outlook: Negative
CRISIL believes that MBR's liquidity profile will remain
constrained, driven by increasing working capital requirement and
moderate cash accruals. Also, with its moderate cash accruals and
high incremental working capital requirements, MBR's gearing is
expected to remain high, over the medium term. The outlook may be
revised to 'Stable' if MBR's financial risk profile improves, most
likely because of higher-than-expected profitability or equity
infusion by promoters. Conversely, the rating may be downgraded,
if MBR's financial risk profile weakens further, most likely
because of a more-than-expected increase in working capital
requirements or larger-than-expected, debt-funded capital
expenditure.
Incorporated in 1988, MBR manufactures a wide variety of footwear,
including rubber, canvas wear, and hawai slippers. It is a major
supplier of footwear, raincoats, and ground sheets to defence,
paramilitary forces and railways. The company's plant in Sahibabad
(Uttar Pradesh) has capacity of manufacturing 0.4 million pairs of
footwear per month.
For 2011-12 (refers to financial year, April 1 to March 31), MBR
reported a profit after tax (PAT) of INR4.3 million on net sales
of INR457 million, against a PAT of INR3.8 million on net sales of
INR397 million for 2010-11. MBR is estimated to report net sales
of INR745 million in 2012-13.
ROLTA INDIA: Fitch Assigns 'BB-' Issuer Default Rating
------------------------------------------------------
This announcement is a reissue of the commentary published on
April 29, 2013. Fitch has revised the language on the senior
unsecured and proposed bond ratings, in line with its latest
guidance on pre-restructuring ratings: 'Assigning Corporate
Ratings to Issuers in Restructuring - Guidance for New Issuance
Expected' published on May 3, 2013. The updated text is as
follows:
Fitch Ratings has assigned technology company Rolta India Limited
(Rolta) Long-Term Foreign- and Local-Currency Issuer Default
Ratings (IDRs) of 'BB-'. The Outlook is Stable.
The agency expects to rate Rolta's foreign currency senior
unsecured debt at 'BB-' and Rolta, LLC's proposed USD guaranteed
senior notes at 'BB-(EXP)' on completion of the notes issue and on
the assumption that sufficient proceeds are raised and used to pay
down enough secured debt to reduce the subordination of senior
unsecured creditors.
Final instrument ratings would be contingent upon the receipt of
final documentation conforming materially to information already
received. Failure to conduct the refinancing according to plan
would likely result in the withdrawal of the instrument ratings.
Rolta, LLC is a wholly owned subsidiary of Rolta India Limited.
Key Rating Drivers
Small scale, low diversification: Despite its high profitability
Rolta's ratings are constrained by its small scale of operations.
Given its size, Fitch believes that the company's growth strategy
will continue to rely partly on acquisitions of core technologies
to strengthen its intellectual properties which will require high
capex and limit its ability to deleverage.
Increase in leverage: Fitch forecasts that Rolta's funds flow from
operations (FFO)-adjusted leverage will increase well above 3x by
end-FY13 from 2.8x at end-FY12 due to capex. Rolta's free cash
flow (FCF) is likely to remain negative over the medium term as
capex will only slowly decline from a peak of INR14bn in FY12.
Proposed notes subordinated: Rolta's senior unsecured creditors,
including the proposed bond, which is fully guaranteed by Rolta
and its main operating subsidiaries on a senior basis, are
subordinated to the company's secured debt which accounted for
close to 90% of the total debt at end of the financial year to
June 2012 (end-FY12). If successful, the proposed refinancing will
reduce subordination to a level at which Fitch would not notch
down unsecured debt from the IDR.
Niche-market operation: Rolta's key credit strength lies in its
established market position in engineering and geospatial services
which have high entry barriers. This has led to solid revenue
growth and operating EBITDAR margins over 40%, which compare
favourably with industry peers. In addition, Indian defence
spending is likely to grow which will continue to be a foundation
for Rolta's growth over the long term.
Transition to IP-led strategy: Rolta's gradual transition to an
IP-led solution provider is a sound strategy as it creates long-
term recurring revenues in the form of licence sales and
maintenance fees. The company's target to improve the IP-driven
revenue share to 25%-30% in the next two to three years from the
current 15% should add stability to revenue growth and operating
margins.
Rating Sensitivities
Negative: Future developments that may, individually or
collectively, lead to negative rating action include
- FFO-adjusted leverage increasing above 4x. However, Fitch
expects the company to maintain leverage below 4x in the
medium term, driven by a gradual decrease in capex and
stable FFO growth.
Rolta's IDRs are constrained by the small scale of its operations.
As such, Fitch does not foresee any positive rating action over
the medium term.
SAHYADRI RENEWABLE: CRISIL Rates INR100MM Term Loan at 'D'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facility of Sahyadri Renewable Energy Pvt Ltd. The rating is
driven by delay by SREPL in servicing its debt obligations. The
delay has been caused by the company's weak liquidity arising due
to delays in commissioning its hydro-power project.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 100 CRISIL D
SREPL is part of the Gilada group, promoted by Mr. Shankarlal
Gilada and his son Mr. Rajgopal Gilada. The Gilada group comprises
six other entities having operations in financing, refractories,
renewable energy and concrete sleepers.
The company is engaged in executing hydro power projects.
Presently, it is executing Vajra-III Project of 1.5 MW near
Shahapur in the Bhatsa river basin in Maharashtra, which is
expected to be commissioned by June 2013. The company has two
other projects in pipeline, which are expected to start by the end
of 2013-14 (refers to financial year, April 1 to March 31).
SOCIETY FOR RESEARCH: CRISIL Puts 'D' Ratings on INR73MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Society for Research & Technical Studies (SRTS). The
rating reflects instances of delay by SRTS in servicing its term
debt; the delays have been caused due to short-term cash flow
mismatch.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Overdraft Facility 8 CRISIL D
Term Loan 65 CRISIL D
Furthermore, the rating indicates SRTS's small scale of operations
and susceptibility to intense competition in the education sector
and adverse regulatory changes. These weaknesses are partly offset
by benefits expected from healthy demand prospects for education
sector.
SRTS was set up in 2008 by Arora and Gupta families of Saharanpur
(Uttar Pradesh, UP). SRTS is engaged in providing education
through its institution namely "Millennium Institute of Technology
(MIT)" located at Saharanpur.
SRTS is estimated to report net surplus of INR4.17 million on net
fee income of INR47.4 million in 2011-12 (refer to April to
March), against net surplus of INR4.61 million on net fee income
of INR39.4 million in 2010-11.
TRANSTECH GREEN: CRISIL Assigns 'D' Ratings to INR500MM Loans
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Transtech Green Power Pvt Ltd. The ratings reflect
instances of delay by TGPPL in servicing its debt; the delays have
been caused by company's weak liquidity, driven by low plant load
factor (PLF).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 382.4 CRISIL D
Proposed Long-Term 32.6 CRISIL D
Bank Loan Facility
Bank Guarantee 10.0 CRISIL D
Cash Credit 75.0 CRISIL D
TGPPL also has a weak financial risk profile, marked by a small
net worth, high gearing, and weak debt protection metrics, small
scale of operations, and geographic concentration in revenues.
However, the company benefits from expected improvement in PLF and
low exposure to raw material price volatility over the medium term
TGPPL, incorporated in 2007 at New Delhi, started commercial
operations by setting up 12 megawatt power plant at Sanchore
(Rajasthan) in July 2010. It is a subsidiary of M/s Teletech
Finsec India (P) Ltd (TFIPL). TFIPL holds 99.48 per cent shares in
the company, while the remaining 0.52 per cent are held by the
promoter/directors.
TGPPL reported, on provisional basis, a net loss of INR91.7
million on net sales of INR120.7 million for 2012-13 (refers to
financial year, April 1 to March 31); the company reported a net
loss of INR145.7 million on net sales of INR145.4 million for
2011-12.
====================
N E W Z E A L A N D
====================
COOPER HORTICULTURAL: Taxpayers Shortchanged on SFC Sale
--------------------------------------------------------
Chris Hutching at NBR Online reports that New Zealand taxpayers
will take a loss from the receivership sale of land owned by
Cooper Horticultural.
NBR Online says the Overseas Investment Office recently gave
permission for Craigmore Sustainables Farming fund to acquire land
owned by Cooper Horticultural for NZ$6 million.
According to NBR Online, the company was placed in receivership in
June 2010 by the receivers of South Canterbury Finance, whose
investors were protected by the government deposit guarantee
scheme -- ultimately, the New Zealand taxpayer.
NBR Online notes that the last receiver's report for Cooper
Horticultural reveals it owed:
-- NZ$12.6 million to South Canterbury Finance, reduced
to NZ$10.3 million with the sale of various orchard
and crop assets; and
-- a further NZ$6 million with the latest sale of land to
Craigmore - 57ha at Gilbertson Rd, Napier; 37ha at 468
and 469 Lawn Rd, Clive; and 17ha at 91 Tukituki Rd,
Haumoana.
Unsecured creditors owed NZ$3 million are unlikely to see any
proceeds, NBR Online relays.
FLAMES INTERNATIONAL: Hotel Wind Up Process Halted
--------------------------------------------------
The Northern Advocate reports that High Court proceedings by a
finance company to liquidate owners of Flames International Hotel
have been halted until the business is sold.
According to the report, the receivership of Flames International
Hotel of Onerahi was initiated by FM Custodians and actioned by
the company's trading arm, Tauranga-based FM Mortgage Trust, which
is described as New Zealand's largest privately owned group
investment trust.
The Advocate relates that the hotel has been on the market for a
number of years at an asking price of NZ$4 million.
The report says FM Custodians has gone to the High Court at
Whangarei in a bid to liquidate the hotel, owned by Laurie and
Michele Wooding. By consent of both parties, Associate Judge Roger
Bell has halted proceedings under the Insolvency Act until the
hotel is sold, the report notes.
He has granted leave to both parties to apply for future
directions, the Advocate relates.
The Advocate reports that Mr. Wooding, a former builder, said the
receivership is the result of a financial chain reaction triggered
by a now-bankrupt developer failing to pay Wooding Construction
for building the Samuel Marsden Villas in Paihia, despite a court
order to pay the NZ$2.8 million owed in progress payments claimed
under the Construction Contracts Act.
HANOVER FINANCE: NZ$12M House Sale May End Up in Investors' Hands
-----------------------------------------------------------------
Stuff.co.nz reports that the NZ$12 million at stake in a
High Court stoush between Mark Hotchin and a trust benefiting his
five children could eventually end up in the hands of Hanover
investors.
Stuff.co.nz relates that Mr. Hotchin is attempting to have
NZ$12.2 million he spent on the construction of a luxury mansion
in Auckland's Paritai Dr paid back out of the imminent sale of the
house and land, which is owned by the KA No 4 Trust.
According to the report, the Financial Markets Authority has taken
Mr. Hotchin's side in the action because the money would
potentially bolster funds available for reparations to Hanover
investors should the FMA win a pending civil case against
Mr. Hotchin. However, any civil claim would still rank behind the
first mortgagee on the property, the report relays.
In another scenario the money could trickle down through the first
mortgagee, other prior-ranking creditors and other family trusts
associated with Mr. Hotchin, leaving Hanover investors at the back
of the queue, relates Stuff.co.nz.
Stuff.co.nz says the priority of creditors has not yet been
decided by the court, but FMA lawyer Colin Carruthers, QC,
expressed concern that Mr. Hotchin might be encouraged to reduce
the amount he claimed was owed to him.
Mr. Hotchin said in court in response to questions from
Mr. Carruthers that he could not walk away from the money he felt
was owed to him, even though it would come from the trust for his
five children, the report relays.
About Hanover Finance
Hanover Finance Limited -- http://www.hanover.co.nz/-- was
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007. The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.
Hanover Finance's investors in December 2008 voted in favor of
the company's Debt Restructure Proposals, including a plan to
fully repay NZ$552.6 million principal it owes over five years.
However, Hanover Finance said in November 2009 it is no longer
likely to fully repay investors under a debt restructuring plan
due to a deterioration in the commercial property development
market, a TCR-AP report on Nov. 12, 2009, said.
In December 2009, investors agreed to swap their Hanover
interests for shares in Allied Farmers Ltd.
The Serious Fraud Office commenced an investigation into the
affairs of Hanover Finance Ltd in September 2010 after
considering complaints received from the Securities Commission,
Allied Farmers and others.
The Financial Markets Authority, on March 30, 2012, filed civil
proceedings against directors and promoters of Hanover Finance
Ltd, Hanover Capital Ltd, and United Finance Ltd. Proceedings
under the Securities Act have been filed against Mark Hotchin,
Eric Watson, Greg Muir, Sir Tipene O'Regan, Bruce Gordon and
Dennis Broit. They relate to statements made in the
December 2007 prospectuses, subsequent advertising, and the
March 2008 prospectus extension certificate.
*********
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
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Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication. At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled. Assets, for example, reported at historical
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which equity securities trade in public market are determined by
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*********
S U B S C R I P T I O N I N F O R M A T I O N
Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.
Copyright 2013. All rights reserved. ISSN: 1520-9482.
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*** End of Transmission ***