/raid1/www/Hosts/bankrupt/TCRAP_Public/130625.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, June 25, 2013, Vol. 16, No. 124
Headlines
A U S T R A L I A
ADVANCED AIRCON: Falls Into Administration After Reed Collapse
FLEXI ABS 2013-1: Fitch Rates AUD6.3MM Class E Notes at 'BBsf'
GENESIS CARE: Moody's Assigns (P)B1 CFR; Outlook is Stable
GENESIS CARE: S&P Assigns Preliminary 'B+' CCR; Outlook Stable
MOUNT ISA SKILLS: In Liquidation; Staff Lose Leave Entitlements
PERPETUAL CORPORATE: AUD6.3MM Cl. E Notes Get Moody's Ba2 Rating
SUNDOWN PROTECTION: Court Appoints Clifton Hall as Liquidators
C H I N A
DBA TELECOM: Fitch Puts 'B+' IDR on Rating Watch Negative
DBA TELECOMMUNICATION: S&P Puts 'BB-' CCR on CreditWatch Negative
* Chinese Bank Liquidity Risks Rising, Fitch Says
H O N G K O N G
* HK Businesses' Final Say on Corporate Rescue Bill Sought
I N D I A
COMMERCIAL MOTORS: CARE Assigns 'B-' Rating to INR0.52cr Loan
G & S ASSOCIATES: CARE Rates INR15cr LT Loan at 'CARE B+'
GDS CHEMICALS: CARE Assigns 'BB' Rating to INR1.44cr LT Loan
GOHILWAD SHIP: CARE Assigns 'BB-' Rating to INR3.10cr Loan
HANS ISPAT: CARE Rates INR90.01cr LT Loan at 'CARE C'
INDIAN PHOSPHATE: CARE Assigns 'BB' Rating to INR29.25cr Loan
INTEGRATED RUBIAN: CARE Rates INR4.78cr LT Loan at 'CARE B+'
RAGHUVIR DEVELOPERS: CARE Rates INR45cr Loan at 'CARE BB+'
SANMATI EDIBLE: CARE Rates INR5.90cr LT Bank Loan at 'B'
SARVA MANGALAM: CARE Assigns 'B' Rating to INR20.85cr LT Loan
SM TELEDIRECT: CARE Assigns 'BB' Rating to INR16CR LT Loan
SUBRA INTERNATIONAL: CARE Rates INR1.5cr LT Loan at 'CARE B+'
SUDIVA SPINNERS: CARE Assigns 'BB-' Ratings to INR47.38cr Loans
TRANS DAMODAR: CARE Assigns 'BB+' Ratings to INR68.41cr Loans
* Rupee Fall to Mainly Hit Chemical, Fertiliser, Paper Firms
J A P A N
RESTAY HOTELS: Moody's Removes Ratings Due to Lack of Information
N E W Z E A L A N D
FIVE STAR: Court Reopens "Shadow Director" Trial
MEDIAWORKS NZ: 2012 Annual Loss Narrow to NZ$90 Million
WHITEHART DEVELOPMENTS: Placed Into Liquidation
P H I L I P P I N E S
RURAL BANK OF BORONGAN: Placed Under PDIC Receivership
UNIWIDE GROUP: SEC Orders Dissolution, Liquidation
X X X X X X X X
* BOND PRICING: For the Week June 17 to June 21, 2013
- - - - -
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A U S T R A L I A
=================
ADVANCED AIRCON: Falls Into Administration After Reed Collapse
--------------------------------------------------------------
Yolanda Redrup at SmartCompany reports that Advanced AirCon
has collapsed, with millions of dollars of debt accumulated
following the failure of the now collapsed builder Reed
Construction.
SmartCompany relates that the business, which provides services
including design, sales, installation, commissioning and
servicing, ran into trouble when Reed Construction collapsed in
mid-2012 with debts on AUD182.1 million.
When Reed Construction collapsed, Brian Parker from the
Construction, Forestry, Mining and Energy Union told SmartCompany
up to 500 Australian small businesses working as subcontractors
were "looking down the gun barrel of falling into liquidation".
"We have a substantial amount of workers with these subcontractors
who will be put on the dole queues," Mr. Parker told SmartCompany.
In July 2012, it was revealed trade creditors and subcontractors
were owed AUD78.7 million, the report discloses.
David Iannuzzi and Murray Godfrey from RMG Partners Business
Solutions were appointed as administrators to Advanced AirCon last
week, with Mr. Godfrey telling SmartCompany the business
encountered cashflow problems, partly as a result of Reed
Construction's collapse.
"It's also had difficulties with securing funding from banks and
other construction companies. The business has been caught between
a rock and a hard place," the report quotes Mr. Godfrey as saying.
"It's been battling paying taxes for some time and the Australian
Taxation Office became quite insistent about being paid."
RMG Partners Business Solutions insolvency manager Adam Lysle told
SmartCompany the total amount of debt is yet to be determined;
however, early investigations have revealed creditors are owed a
couple of million dollars, "depending on how the tax office
qualify the final debt".
Advanced AirCon is a Sydney-based air conditioning installation
and servicing company. It offers premium air conditioning system
solutions to the residential and commercial market and it
represents brands such as Actron, Mitsubishi and Panasonic.
FLEXI ABS 2013-1: Fitch Rates AUD6.3MM Class E Notes at 'BBsf'
--------------------------------------------------------------
Fitch Ratings has assigned final ratings to Flexi ABS Trust
2013-1. The transaction is a commercial finance receivables-backed
securitisation of unsecured commercial lease receivables. The
ratings are as follows:
AUD152.25m Class A notes: 'AAAsf'; Outlook Stable;
AUD11.55m Class B notes: 'AAsf'; Outlook Stable;
AUD16.8m Class C notes: 'Asf'; Outlook Stable;
AUD8.4m Class D notes: 'BBBsf'; Outlook Stable;
AUD6.3m Class E notes: 'BBsf'; Outlook Stable; and
AUD14.7m Class F notes: not rated.
The notes, due June 2018, were issued by Perpetual Corporate Trust
Limited as trustee of Flexi ABS Trust 2013-1. Flexi ABS Trust
2013-1 is a legally distinct trust established pursuant to a
master trust and security trust deed.
At the cut-off date, the total collateral pool consisted of 27,
516 loan receivables totalling approximately AUD206 million, with
an average contract size of AUD7, 487. The pool is comprised of
loan receivables predominantly originated by Flexirent Capital Pty
Limited (Flexi), a subsidiary of FlexiGroup Limited. All
receivables are amortising principal and interest operating leases
and finance loans with no residual value at maturity of each of
the contracts in the pool. The highest concentrations by equipment
type in the pool are collectively printers, copiers and faxes
(16.9%) and telephone systems (14.1%). The pool contains loans
with varying balloon amounts payable at maturity (25.2%), with a
weighted average balloon payment of 6.3%.
The transaction also benefits from the diversification of a large
number of predominantly small to medium sized business borrowers.
The pool contains a wide range of vendors supplying predominantly
office and business critical equipment, some of which are managed
service products (9.9% of the pool).
Key Rating Drivers
The 'AAAsf' Long-Term rating with Stable Outlook assigned to the
Class A notes is based on: the quality of the collateral; the
27.5% credit enhancement provided by the subordinate Class B, C,
D, E and F notes; a liquidity reserve account of 2% of outstanding
rated notes, funded by issue proceeds; the interest rate swap
provided by Westpac Banking Corporation (WBC, 'AA-'/Stable/'F1+');
the collections reserve account that will be funded by Flexi at
closing; and the underwriting and servicing capabilities of Flexi.
The ratings on the Class B, C, D and E notes are based on all the
strengths supporting the Class A notes except their credit
enhancement levels. The rating of the Class C, D, and E notes is
dependent on excess spread to support their respective rating
levels.
Rating Sensitivities
Fitch's stress and rating sensitivity analysis is discussed in the
corresponding new issue report entitled "Flexi ABS Trust 2013-1",
published today, now available on www.fitchratings.com or by
clicking on the above link. Included in a corresponding appendix
is a description of the representations, warranties and
enforcement mechanisms.
GENESIS CARE: Moody's Assigns (P)B1 CFR; Outlook is Stable
----------------------------------------------------------
Moody's Investors Service has assigned a provisional (P) B1
Corporate Family Rating to Genesis Care Pty Limited. At the same
time, Moody's has assigned a provisional (P) B1 senior secured
rating to the proposed 1st lien $ Term Loan and Revolving
Facilities (equivalent to around AUD 255 million and AUD 30
million respectively) to be entered into by Genesis Care Finance
Pty Limited and Genesis Care Finance US LLC, 100% owned and
guaranteed subsidiaries of Genesis Care Pty Limited.
This is the first time that Moody's has assigned ratings to
Genesis Care. The outlook on the ratings is stable.
The assignment of a definitive corporate family rating and senior
secured term loan and revolving facility ratings is subject to
review of final documentation and successful close of the
transaction. The proceeds of the issuance will be used principally
to repay existing indebtedness, for specific distributions to
shareholders and to provide working capital.
Ratings Rationale:
"Genesis Care's ratings reflect principally its small scale,
unique business model which we expect to grow at a steady rate, as
well as challenging financial profile and significant exposure to
funding from the Government's Medicare universal health scheme",
says Ian Lewis a Moody's Vice President and Senior Credit Officer.
Adding, "However we think the regulatory and reimbursement
environment is currently overall supportive of the company's
credit profile."
"GCPL's (P) B1 CFR and debt ratings reflect its small scale when
compared to peers on a global basis and therefore a constrained
ability to absorb temporary business disruptions, unexpected
adverse effects of acquisitions or potential unfavorable material
regulatory or reimbursement changes, should they occur", says
Lewis who is also Lead Analyst for the company.
"At the same time the ratings also reflect weak financial metrics
including high leverage and our expectation that leverage will
reduce from its current point but remain at elevated levels as a
consequence of expansion capex, ongoing tuck-in style acquisitions
and shareholder friendly initiatives. We expect the company to
maximize dividends when it is able, subject to its loan financing
documents and covenants and this expectation is built into the (P)
B1 rating", adds Lewis.
"GCPL though of small scale in comparison to similarly rated
global peers, is differentiated by its unique business model which
seeks to establish a national network of care providers across its
chosen market segments and in conjunction with other health
clusters, particularly hospitals. GCPL has established a level of
scale in the local market, though evolution of the market could be
considered highly fragmented and immature at the current time. The
ratings therefore also recognize that GCPL has good growth
prospects and a degree of first mover advantage as an aggregator
of health services in Australia".
On the other hand GCPL has a high level of reimbursement derived
from the Australian Government's universal health insurance scheme
"Medicare" and as such any changes to the MBS (Medicare Benefits
Schedule) could potentially materially impact GCPL's limited
earnings base and leveraged financial profile. Overall however
Moody's considers the regulatory and health care regime to be
neutral to slightly positive for GCPL's businesses which are
mostly within areas of acute need and which are facing strong
growth in demand.
The (P) B1 senior secured rating assigned to the proposed 1st lien
$ Term Loan Facilities and Revolving Facility reflects its
position equal to that of GCPL's CFR of (P) B1, reflecting its
primary position and absence of other material or prior ranking
debt concentrations in the group's capital structure.
Rating Outlook
The stable outlook reflects Moody's view that GCPL has a solid
growth trajectory amid a predictable reimbursement environment
given its emphasis on essential type health care services and
appropriately managed expansion.
What Could Change the Rating - Up
The rating could be upgraded in the event that the company is able
to acquire a sustained improvement in EBITDA or meaningful
reduction in debt such that Debt/EBITDA will remain below 3.5 x on
an ongoing basis.
What Could Change the Rating - Down
The rating could be downgraded in the event that the company's
liquidity profile deteriorates or should cash flow after capex and
dividends as measured by FCF/Debt trend to around -10% or more.
Additionally, should EBITDA decline as a result of fewer patient
visits for example or debt increase due to higher debt funded
capex or acquisitions then the rating could face negative
pressure. A key indicator of this could be Debt/EBITDA exceeding
5.0 x on an ongoing projected or actual basis, after FY13. Changes
in Medicare or the MBS or EMSN (Extended Medicare Safety Net) that
impact the company unfavorably in Moody's view could also pressure
the rating.
The principal methodology used in these ratings was the Global
Healthcare Service Providers Industry Methodology published in
December 2011.
Genesis Care is a leading Australian national provider of
cardiology, radiation oncology (cancer), and sleep treatments.
GCPL operates across around 115 sites nationally, with 75 sites
associated with cardiology, 21 radiation oncology and 18 sites in
sleepcare. The company employs over 1,100 staff, including a team
of around 100 full-time doctors. As at 30 June 2012 the company
had assets of around $322 million. Genesis Care is 48% owned by
affiliates of Kohlberg Kravis Roberts & Co. L.P. (KKR), a global
private equity investment firm with $78.3 billion in assets under
management as of March 31, 2013.
GENESIS CARE: S&P Assigns Preliminary 'B+' CCR; Outlook Stable
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B+' preliminary corporate credit rating to Australia-based
healthcare provider Genesis Care Pty Ltd. (trading as
GenesisCare). The outlook on the rating is stable. At the same
time, S&P assigned its 'B+' issue credit rating and recovery
rating of '3' to Genesis' proposed US$245 million first-lien,
senior secured Term Loan B issue and its A$30 million revolving
credit facilities. The issuer credit rating and the issue ratings
are preliminary and will be finalized upon completion of the
company's proposed debt raising and recapitalization.
"The 'B+' preliminary issuer credit rating on Genesis reflects our
view of the company's "highly leveraged" financial risk profile
and "fair" business risk profile," Standard & Poor's credit
analyst Graeme Ferguson said. "Genesis' "highly leveraged"
financial risk profile is a constraint on the ratings and reflects
the company's aggressive financial policies and minority ownership
by a financial sponsor."
Following Genesis' proposed recapitalization, S&P estimates pro-
forma fully adjusted debt-to-EBITDA will increase to about 5x,
assuming some of the proceeds will be returned to equity holders.
S&P's rating anticipates that the company's private equity owners
will seek to periodically releverage Genesis to maximize the
group's equity returns. Genesis intends to limit the cross-
currency exposure on its debt facilities by fully hedging its
forecast principal and interest exposure (after factoring in
expected debt amortization) for five to six years. Interest rate
risk will also be hedged 75% to 100% over the next five to six
years.
Genesis' ownership structure comprises affiliates of private
equity firm Kohlberg Kravis Roberts & Co. L.P. (KKR) 48%, with the
balance held by doctors and management. S&P assess that the
existing governance arrangements provide meaningful limitations to
the financial sponsor's influence. While the financial sponsor
retains certain negative control rights, KKR's board
representation is restricted to two members (out of seven).
Furthermore, the presence of a majority of shareholders with an
active economic interest and two independent board members
partially mitigate the influence of the financial sponsor.
Although the proposed debt facilities allow additional debt
drawing, the current ownership and governance structures are
likely to ensure that future refinancing does not result in
adjusted debt-to-EBITDA materially beyond 5x.
S&P's assessment of Genesis' "fair" business risk profile reflects
the barriers to entry for the radiation oncology industry and the
company's strong counterparties (predominantly federal and state
governments and health insurance companies). In addition, the
industry faces favorable growth fundamentals with aging
populations and unmet demand, and Genesis has market leadership in
the private sector for radiation oncology and cardiology services,
with limited competition from private scale operators. Genesis'
relatively small scale and historically aggressive growth appetite
are offsetting factors.
Mr. Ferguson added: "The stable outlook incorporates our
expectation that Genesis will continue to benefit from the stable
Australian healthcare funding environment, regulatory rationing of
new radiation oncology sites, and a mix of organic and limited
inorganic growth."
The rating could come under pressure if Genesis returns to a more
aggressive growth profile, or weakness in financial performance
reduces the financial covenant headroom.
Although less likely, positive rating action will require a robust
set of financial policies that supports a more conservative
financial profile.
MOUNT ISA SKILLS: In Liquidation; Staff Lose Leave Entitlements
---------------------------------------------------------------
The North West Star reports that former staff of Mount Isa Skills
Association Inc., commonly known as isaSKILLS, have had further
disappointment this week after failing to secure leave
entitlements.
The report says the organisation was forced into liquidation mid-
June after losing Federal Government funding reportedly left them
with a deficit of more than AUD8 million.
The North West Star relates that more than three quarters of the
staff lost their jobs, with only 17 employee contracts being taken
up by Direct Employment Services (DER), subcontracted by Job
Futures Ltd.
A former IsaSKILLS staff member told The North West Star that
those people offered contracts by DER missed out on leave
entitlements because of conflicting advice given by human
resources.
They were told that they were to resign immediately from IsaSKILLS
and sign with the new contracts and serve the resignation period
as annual leave in order to keep entitlements, the report relays.
"That's what we were instructed to do and that's what we thought
was happening, and then come Tuesday, the company had legal advice
given to them and apparently because the situation was
liquidation, the Fair Work Act is overridden by the Corporations
Act," the former employee told The North West Star.
"The corporations act said the staff will lose entitlements if
they didn't give adequate resignation period, which we didn't, we
resigned on the Friday to start the new contracts."
According to the report, the former staff member said employees
lost up to two weeks of leave entitlement and a large amount of
blame had been wrongly directed at former CEO Julie Schalin.
The North West Star adds that Ms. Schalin said she had acted fully
under direction of a company employed solicitor when providing
information to staff.
Mount Isa Skills Association Inc. (isaSKILLS) provides assistance
to jobseekers and employers in Mount Isa, Cloncurry, Longreach,
Normanton and the surrounding regions.
PERPETUAL CORPORATE: AUD6.3MM Cl. E Notes Get Moody's Ba2 Rating
----------------------------------------------------------------
Moody's Investors Service has assigned definitive ratings to notes
issued by Perpetual Corporate Trust Limited in its capacity as the
trustee of the Flexi ABS Trust 2013-1.
Issuer: Flexi ABS Trust 2013-1
AUD152.25M Class A Notes, Assigned Aaa (sf)
AUD11.55M Class B Notes, Assigned Aa2 (sf)
AUD16.8M Class C Notes, Assigned A2 (sf)
AUD8.4M Class D Notes, Assigned Baa2 (sf)
AUD6.3M Class E Notes, Assigned Ba2 (sf)
The AUD14.7M Class F Notes are not rated by Moody's.
The transaction is the cash securitization of a portfolio of
Australian operating and financial equipment leases originated by
Flexirent Pty Ltd (Flexirent), a subsidiary of FlexiGroup Ltd
(FlexiGroup).
This is FlexiGroup's fourth term-securitization and the third
rated by Moody's.
Ratings Rationale:
Flexi ABS Trust 2013-1 is the securitization of operating and
financial equipment lease receivables extended to small-to-medium-
sized commercial obligors located in Australia. Notable features
of the transaction include the following:
- strong back-up servicing arrangements
- substantial amount of excess spread
- 6.3% exposure in the receivables portfolio to a single corporate
obligor rated investment grade by Moody's
- presence of equipment maintenance components in around 9.9% of
the contracts, and
- the short-weighted average lives of the notes.
The receivables have either been originated by Flexirent through
retail vendors at the point of sale or vendor partnerships, or
have been purchased by Flexirent from other financiers. During the
life of the receivables, the obligors will make at least monthly
payments to Flexirent or to the vendor itself, which then
transfers the aggregate funds to Flexirent, typically on a monthly
basis. The receivables are unsecured.
Flexirent and FlexiGroup are unrated. Consequently, the
transaction structure includes back-up servicing arrangements with
Dun & Bradstreet (Australia) Pty Limited. Dun & Bradstreet carries
out servicing in parallel with Flexirent, providing near 'hot'
levels of support and mitigating the risks of a prolonged
servicing disruption.
Moody's expected default rate for the granular portion of
portfolio is 4.2%. The assumption is based primarily on the
historical performance data, and incorporates additional stresses
to reflect a more stressful economic environment than that evident
during the 2004-2012 period covered by the historical data.
The final mean default rate used is 4.68%, which incorporates the
benefit of 6.3% exposure to an investment grade corporate obligor,
and penalties for the presence of vendor commingling risk and
potential losses due to the originator providing equipment
protection.
The coefficient of variation of the mean default rate was assumed
at 53.3%, significantly higher than historical observations due to
the lack of any stressed economic environment in the historical
data, the short length of meaningful historical data in respect of
46% of receivables in the portfolio, and the presence of
maintenance components in some contracts, which could expose the
transaction to tail losses.
The 27.5% subordination is commensurate with the Aaa (sf) rating
of the senior notes. It is materially higher that of a typical
auto lease ABS transaction. This is attributed to the unsecured
nature of the receivables leading to zero recovery values and to
the comparatively worse-than-expected performance.
In order to fund the purchase price of the portfolio, the Trust
has issued six classes of notes. The notes will be repaid on a
sequential basis until the later of: (1) the seventh payment date
following the Issue Date, (2) increase in the subordination to
Class A notes to 30% from 27.5%, and as long as (3) the 10% clean-
up call date has not been reached, (4) there are no carryover
charge-offs on any note, and (5) the 60 days past due arrears
ratio does not exceed 4%.
If all those conditions are met, then classes A to E will be
amortized on a pro-rata basis. Subsequently, if the subordination
to the Class E Notes becomes greater than 15%, the Class F Notes
will be repaid pro rata with the other tranches as well, as long
as conditions (3) to (5) are still met.
The ratings address the expected loss posed to investors by the
legal final maturity. The structure allows for the timely payment
of interest and the ultimate payment of the principal by the legal
final maturity.
Volatility Assumption Scores and Parameter Sensitivities
The V Score for this transaction is Medium/High. Among other
factors, the V Score is driven by the sensitivity of the capital
structure to the assumptions relating to timing of defaults,
particularly in light of some micro-tranching and amortization of
equity (subject to certain conditions).
Moody's was provided with detailed, loan-by-loan data for all
receivables originated by Flexirent in the 2004-2012 period. A
large part of this dataset relates to receivables originated
before 2009 when Flexirent shifted its origination strategy
towards large tickets (where the asset costs above AUD10,000). As
a result, the historical data provided to Moody's might not be
accurately reflective of expected future performance.
Moody's notes that this shift in Flexirent's book is directed
towards better credit quality obligors, while on the other hand,
the short length of meaningful historical data on that customer
segment reduces the benefit given to this in quantitative
assumptions.
V Scores are a relative assessment of the quality of available
credit information and of the degree of uncertainty around various
assumptions used in determining the rating. High variability in
key assumptions could expose a rating to more likelihood of rating
changes. The V Score has been assigned accordingly to the report
"V Scores and Parameter Sensitivities in the Asia/Pacific RMBS
Sector", published in March 2009.
Parameter Sensitivities are designed to provide a quantitative
calculation of how the initial rating might change if key input
parameters used in the initial rating process differed. The
analysis assumes that the deal has not aged. Parameter
Sensitivities only reflect the ratings impact of each scenario
from a quantitative/model-indicated standpoint.
In the case of Flexi ABS Trust 2013-1, assuming the default rate
rises to 5% (compared to Moody's assumption of 4.68%), the model-
indicated rating for the Class A Notes becomes Aa1.
The principal methodology used in this rating was "Moody's
Approach to Rating Australian Asset-Backed Securities" published
in July 2009.
The cash flow model used to analyze the transaction was ABSROM
3.5, in which, substantially all default scenarios were
considered. Therefore, Moody's analysis encompasses the assessment
of stress scenarios.
SUNDOWN PROTECTION: Court Appoints Clifton Hall as Liquidators
--------------------------------------------------------------
Mark Hall of Clifton Hall was appointed Liquidator of Sundown
Protection Services Pty Ltd on June 18, 2013, by Order of the
Supreme Court of South Australia.
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C H I N A
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DBA TELECOM: Fitch Puts 'B+' IDR on Rating Watch Negative
---------------------------------------------------------
Fitch Ratings has placed China-based DBA Telecommunication (Asia)
Holdings Limited's (DBA) Long-Term Issuer Default Rating (IDR) of
'B+' and its senior unsecured rating of 'B+' on Rating Watch
Negative (RWN). Fitch has also withdrawn the expected rating of
'B+(EXP)' of DBA's proposed USD senior unsecured bonds.
The RWN follows further delay to the company's publication of its
2012 audited financial statements beyond June 28, 2013. The
company has not stated a new target date. Audited financials are
an important component of materials Fitch uses in issuing its
ratings, and the lack of timeliness in publishing them in this
instance warrants a RWN.
DBA announced on April 30, 2013 that its auditors, Crowe Horwath
(HK) CPA Limited, had requested for additional information to
complete its audit of the 2012 accounts, and the despatch date of
the 2012 annual report will be postponed to no later than
June 28, 2013. The company stated that the further delay is due to
additional work Crowe Horwath is undertaking for the audit,
including the inspection of a greater number of its intelligent
self-service (ISS) terminals.
The RWN will be resolved with an affirmation of the 'B+' rating
with a Stable Outlook if the company publishes its 2012 audited
financial statements in a timely manner with an unqualified audit
opinion from its auditors and no material deviation from the
unaudited financials published on 28 March 2013. If the above is
not achieved, a negative rating action may be warranted.
The expected issue rating on the proposed USD notes has been
withdrawn as the company is no longer actively marketing the
instrument.
DBA TELECOMMUNICATION: S&P Puts 'BB-' CCR on CreditWatch Negative
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had placed its
'BB-' long-term corporate credit rating and 'cnBB+' long-term
Greater China regional scale rating on DBA Telecommunication
(Asia) Holdings Ltd. on CreditWatch with negative implications.
DBA is a manufacturer and operator of intelligent self-service
(ISS) terminals in China.
"We placed the ratings on CreditWatch because of the increased
information risk stemming from a further delay in the dispatch of
DBA's audited 2012 annual report," said Standard & poor's credit
analyst Lillian Chiou.
S&P could review its assessment of the company's "weak" business
risk profile and "significant" financial risk profile in case of
any material negative findings after the audit.
In S&P's opinion, the company is not likely to meet its earlier
commitment to publish the report by the end of June 2013.
Additional auditing work required by DBA's auditor suggests
greater scrutiny over the company's ISS network, which S&P
considers to be an essential operating asset.
DBA's ISS business is also exposed to competition from alternative
payment service providers, and regulatory uncertainty. The
execution risk in DBA's aggressive nationwide expansion plan, and
the company's revenue concentration in pre-paid phone cards also
weigh on the rating. DBA's low leverage, good efficiency because
of its integrated business model, and good revenue growth temper
these risks.
"We aim to resolve the CreditWatch placement within the next three
months once we review the findings from company's additional audit
and the final 2012 results," said Ms. Chiou.
* Chinese Bank Liquidity Risks Rising, Fitch Says
-------------------------------------------------
Persistent tight liquidity conditions in China's financial sector
could constrain the ability of some banks to meet upcoming
obligations on maturing wealth-management products (WMPs) on a
timely basis, Fitch Ratings says. "We estimate that more than
CNY1.5trn in WMPs - substitutes for time deposits - will mature in
the last 10 days of June," Fitch says.
Issuance of new products, and borrowing from the interbank market,
are among the most common sources of repayment for maturing WMPs,
and the recent interbank liquidity shortage complicates both.
China's mid-tier banks, also known as joint-stock, are likely to
face the most difficulty, with an average of 20%-30% of total
deposits in WMPs. This compares with 10%-20% for state-owned and
city/rural banks.
WMP payouts will exert further upward pressure on interbank
interest rates, which hit all-time highs on June 20. The seven-day
interbank repurchase rate has averaged close to 7% since 6 June,
more than double the 1 January-5 June average of about 3.3%.
The recent tightening in liquidity was sparked by a drop in
foreign-exchange inflows and seasonal tightness associated with
the mid-June holiday; quarter-end prudential requirements; and
fiscal deposit submissions. But it has intensified, as the
People's Bank of China (PBOC) has largely refrained from
intervening. State banks are the primary beneficiaries of foreign-
exchange inflows, and the drop in these flows is a key reason why
recent tightness is being felt even among the largest lenders in
the country.
The Chinese authorities have the ability to address the liquidity
pressures, but their hands-off response to date reflects in part a
new strategy to rein in the growth of shadow finance by
constraining the liquidity available to fund new credit extension.
"We expect this approach to be more effective and swift in slowing
shadow activity than previous efforts, which have focused
predominantly on rules and regulation. But such an approach also
increases repayment risk among banks, and raises the potential for
a policy mis-step and/or unintended consequences," Fitch says.
"Should authorities retain this policy stance, we would expect
broad credit growth to decelerate more noticeably for the rest of
2013, following an unprecedentedly active Q113. We project our
measure of broad credit - Fitch-adjusted total societal financing,
which builds from the PBOC's total societal financing metric - to
remain on a par with 2011-2012, at more than CNY18trn. But there
is significant scope for the reality to be below forecast - should
tight liquidity conditions persist or worsen into H213."
The CNY18trn figure may appear high, although an estimated
CNY10trn in new credit had already been extended by end-May,
leaving just over CNY1.1trn in average new credit per month for
the rest of the year (January-May: CNY2trn per month). This credit
deceleration will create a further drag on economic growth, which
has been slowing down steadily since early 2010.
================
H O N G K O N G
================
* HK Businesses' Final Say on Corporate Rescue Bill Sought
----------------------------------------------------------
South China Morning Post reports that Hong Kong businesses will
soon get an opportunity to voice their final opinions on a
proposed corporate rescue bill that aims to give troubled
companies more time to find white knights prepared to come to
their rescue.
According to the report, Official Receiver Teresa Wong Siu-wan
said the government was keen to push ahead with the corporate
rescue law.
"Hong Kong has lagged behind other markets in terms of not having
a law on corporate rescue. We are keen to push ahead with the
reform to help companies that want more time to restructure before
applying for liquidation," the report quotes Ms. Wong as saying.
SCMP says the proposed bill has had several rounds of consultation
with business, the latest of which was held in 2009. But while a
basic framework for the new law had been ironed out during this
process, there were still some provisions that remained to be
finalised, and the government planned to hold another, smaller
consultation soon.
SCMP notes that Hong Kong has no bankruptcy protection law, so
companies can be wound up by a single creditor. SCMP relates that
the corporate rescue bill is aimed at giving troubled companies
six months to restructure or find a buyer, and during the grace
period the company cannot be wound up by creditors.
The government first mulled such a law in 2001 and then again in
2003, the report discloses.
=========
I N D I A
=========
COMMERCIAL MOTORS: CARE Assigns 'B-' Rating to INR0.52cr Loan
-------------------------------------------------------------
CARE assigns 'CARE B-' and 'CARE A4' ratings to the bank
facilities of Commercial Motors (Dehradun) Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 0.52 'CARE B-' Assigned
Short-term Bank Facilities 3.00 'CARE A4' Assigned
Rating Rationale
The ratings are primarily constrained on account of the modest
scale of operations of Commercial Motors (Dehradun) Private
Limited, its negative capital base, low profitability which is
partly inherent to the automobile dealership business, high debt
level and weak debt coverage indicators. The ratings are further
constrained by the recent slowdown in the Indian Commercial
Vehicle (CV) industry along with its cyclical and competitive
nature.
The ratings, however, take into account CMDPL's experienced
promoters who have long track record of operations in the
automobile dealership business and its long-standing association
with its principal, Tata Motors Limited (TML; rated: CARE AA).
CMDPL's ability to increase its scale of operation along with
improvement in its profitability and capital structure are the key
rating sensitivities.
Incorporated in 1997, CMDPL is a part of J N Group promoted by
Gupta family based out of Jabalpur, Madhya Pradesh. CMDPL is an
authorized dealer for CVs of TML in the state of Uttarakhand.
CMDPL operates three 3-S facilities (Sales, Service, Spare-parts)
at Rishikesh in Dehradun, Roorkee in Haridwar and Kotdwar in Pauri
Garhwal. Further, CMDPL operates 1-S facility each at Uttarkashi,
Tehri Garhwal, Chamoli and Rudra Prayag districts of Uttarakhand.
As per the audited results for FY12 (refers to the period April 1
to March 31), CMDPL reported a total operating income of INR142.80
crore (FY11: INR91.62 crore) and a PAT of INR0.35 crore (FY11:
net loss of INR0.20 crore). Furthermore, as per the provisional
results for 9MFY13, CMDPL reported a total operating income of
INR66.94 crore and net loss of INR2.15 crore.
G & S ASSOCIATES: CARE Rates INR15cr LT Loan at 'CARE B+'
---------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of G & S
Associates.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 15 CARE B+ Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of G & S Associates is
constrained on account of project implementation risk associated
with its ongoing project and low booking status for its
residential units. Furthermore, the commercial unit booking is yet
to commence. Competition from the existing players and cyclicality
associated with the real estate industry further constrain the
rating.
The rating, however, derives strength from the experienced
promoters, along with long track record of the group in the real
estate sector and the requisite approvals received for the
project.
The ability of the firm to complete the project as per the
schedule and timely sale of units at envisaged price is the key
rating sensitivity.
G & S Associates (GASA) is the part of the GADA Group engaged in
the development of residential and commercial real estate projects
in and around Pune. The firm was established in 2007 by Mr. Mukesh
Gada, Mr Kishore Gada and Mr Nilesh Gada, however, the promoters
have been in the real estate business for the last 20 years and
have completed various residential and commercial
projects with a total saleable area of 1.11 lakh square feet
(lsf).
The firm is currently implementing a residential-cum-commercial
project at Katraj Kondwa Road, Pune with a total build up area of
1.39 lsf. For the execution of the project, the promoters have
entered into a Joint Development Agreement (JDA) with the land
owner. As per the agreement, the landowners are entitled to
receive 10 flats from the project. Also, GASA will pay INR7.66
crore to landowners as a consideration against land. The remaining
constructed saleable area of 1.24 lsf will be available with GASA
for selling.
As on April 30, 2013, the firm had booked 29.30% of the total
saleable area worth INR9.30 crore.
GDS CHEMICALS: CARE Assigns 'BB' Rating to INR1.44cr LT Loan
------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of GDS Chemicals & Fertilizers Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 1.44 CARE BB Assigned
Short-term Bank Facilities 6.65 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of GDS Chemicals &
Fertilizers Pvt. Ltd. are primarily constrained by its short track
record of operations in a highly fragmented and regulated
fertilizer industry with stiff competitive pressures from
unorganized and organized players. The ratings are further
constrained by the risk associated with susceptibility of the
profitability margins to volatile raw material prices and foreign
exchange fluctuation, moderate capacity utilization and
dependence on monsoon.
The above constraints are partially offset by the strengths
derived from the experience of the promoters in the fertilizer
industry, comfortable capital structure, diversified customer base
and established market network.
The ability of the company to increase its market presence with
improvement in profitability margins along with effective
management of the foreign exchange fluctuation and government
policies towards the fertilizer industry will be the key rating
sensitivities.
GDS Chemicals & Fertilisers Pvt. Ltd. was incorporated in November
2006 by five promoters of Berhampur (Odisha) to take over the
assets of Priyanka Fertilizers and Chemicals Ltd., a sick unit,
engaged in manufacturing of Single Super Phosphate (SSP). After
acquisition, the unit was reconditioned and commenced commercial
operation from January 2008. SSP is a straight phosphatic multi-
nutrient fertilizer which contains 16% water soluble phosphorus
oxide as primary nutrient, 12% sulphur and 21% calcium as
secondary nutrients.
The manufacturing facility of the company is located at Thummapala
(V), Andhra Pradesh, with an installed capacity of 36,000 Metric
Tonnes Per Annum (MTPA). The company markets its products
under the brand name of "Pragati" and has its presence in Odisha
and Andhra Pradesh.
During FY12 (refers to the period April 01 to March 31), GCFPL
reported a total operating income of INR17.5 crore and a PAT
(after deferred tax) of INR0.8 crore. Furthermore, in FY13
(provisional), the company reported a total operating income of
INR19.2 crore.
GOHILWAD SHIP: CARE Assigns 'BB-' Rating to INR3.10cr Loan
----------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' to the bank facilities of
Gohilwad Ship Breaking Company.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 3.10 CARE BB- Assigned
Short-term Bank Facilities 30.67 CARE A4 Assigned
The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo a change in case of withdrawal of capital
or the unsecured loans brought in by the partners in addition to
the financial performance and other relevant factors.
Rating Rationale
The ratings assigned to the bank facilities of Gohilwad Ship
Breaking Company are primarily constrained on account of modest
scale of operation in a highly competitive and cyclical
ship-breaking industry coupled with fluctuating turnover, thin
profitability, weak solvency and stressed liquidity position. The
ratings are further constrained by risk of adverse movement in
steel prices on uncut ship inventory and foreign exchange
fluctuation, coupled with vulnerability to changes in the
government policy.
The ratings, however, favorably take into account wide experience
of partners in the ship-breaking industry and presence in the
Alang-Sosiya belt, coupled with stable industry outlook.
The ability of GSBC to manage the volatility associated with the
metal scrap prices and timely renewal of leased ship-breaking plot
from GMB, along with increase in scale of operation are the
key rating sensitivities.
Bhavnagar-based (Gujarat) GSBC is a partnership firm engaged in
ship-breaking business since 1995. The firm operates on a single
plot located at Alang, Bhavnagar which is leased out by Gujarat
Maritime Board (GMB). The firm purchases ships and breaks them
into steel plates, which is supplied to the rolling mills in
Gujarat. The entire operations of the firm are managed by four
partners, namely, Mr Hitesh Shah, Mr Sudhir Mehta, Mr Jimit Shah
and Mr Rajesh Mehta.
As per the audited results for FY12 (refers to the period April 1
to March 31), GSBC reported a total operating income (TOI) of
INR15.03 crore (FY11: INR3.08 crore) and Profit after Tax (PAT) of
INR0.42 crore (FY11: INR0.29 crore). During 11MFY13 (Provisional),
GSBC reported TOI of INR41.73 crore.
HANS ISPAT: CARE Rates INR90.01cr LT Loan at 'CARE C'
-----------------------------------------------------
CARE assigns 'CARE C' rating to the bank facilities of Hans Ispat
Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 90.01 CARE C Assigned
Rating Rationale
The rating is constrained on account of the stressed liquidity of
Hans Ispat Ltd arising out of continuous cash losses which had
also resulted in delay in honouring its debt service obligations
in the past. The rating is also constrained on account of its weak
debt coverage indicators, high leverage and susceptibility of its
profitability to volatile raw material prices. The rating,
however, derives strength from its experienced promoters.
HIL's ability to improve its profitability through better capacity
utilization and managing volatile raw material prices in a
competitive and cyclical steel industry; and improve its capital
structure and debt coverage indicators would be the key rating
sensitivities.
HIL was originally incorporated as Hans Ispat Pvt. Ltd. in 1991
and was promoted by Mr. Hans Raj Kumar and Late Mr. Vijay Kant
Kumar. Subsequently on June 27, 2005, it was converted into a
public limited company and its name was changed to present one. In
June 2010, HIL was acquired by Electrotherm (India) Ltd. and it
became 100% subsidiary of ETIL.
HIL is engaged in manufacturing of billets through induction
furnace and rolled products through rolling mill. As on March 31,
2013 HIL had manufacturing facilities for billets of 100,800 Ton
Per Annum (TPA), TMT bar rolling mill of 92,400 TPA, rounds of
27,000 TPA and flats of 27,000 TPA at Bhudarmora Village, Anjar
taluka in Kutch district of Gujarat.
As per the audited results for FY12 (refers to the period April 1
to September 30), HIL reported a total operating income of
INR532.20 crore (FY11: INR355.27 crore; refers to the period
April 1 to March 31) and net loss of INR18.36 crore (FY11:
INR16.98 crore). Furthermore, as per the provisional results for
H1FY13 (refers to the period October 1 to March 31), HIL reported
a total operating income of INR131.34 crore and net loss of
INR6.05 crore.
INDIAN PHOSPHATE: CARE Assigns 'BB' Rating to INR29.25cr Loan
-------------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Indian Phosphate Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 29.25 CARE BB Assigned
Short-term Bank Facilities 9.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Indian Phosphate
Limited are constrained on account of its moderate scale of
operations and financial risk profile marked by declining
profitability margins, stressed liquidity position, moderate
leverage and debt protection indicators. The ratings are further
constrained due to the challenges of operating in a highly
regulated fertilizer industry, customer concentration risk for
Linear Alkyl Benzene Sulphonic Acid (LABSA) and highly
fragmented nature of the LABSA industry, low bargaining power with
the raw material suppliers and volatile raw material prices.
The above constraints significantly outweigh the benefits derived
from the established operations in Single Super Phosphate (SSP)
industry, diversified product portfolio, continuous growth in the
scale of operations and favorable SSP industry prospects.
The ability of IPL to increase its scale of operations with an
improvement in the profitability as well as liquidity position and
changes in the government policies with respect to the SSP
industry would be the key rating sensitivities.
Incorporated in 1998, IPL was promoted by Mr. Ravinder Singh and
Mr. Devender Singh with an objective to set up a SSP plant in
Udaipur district, Rajasthan. The plant started commercial
production in 2004. Later on, the company diversified its
operations by venturing into the manufacturing of LABSA, a high-
volume low-margin product, from January 2010. IPL has an installed
capacity of 130,000 Metric Tonnes Per Annum (MTPA) of SSP and
18,000 MTPA of LABSA. The company also has the capacity to
manufacture Granular Single Super Phosphate (GSSP) with an
installed capacity of 130,000 MTPA (expanded from 65,000 MTPA
recently). IPL has a family-centric management. While Mr Ravinder
Singh looks after finance and marketing functions, another
director Mr Devender Singh looks after the production.
During FY12 (refers to the period October 1 to September 30), IPL
reported a total income of INR174.55 crore (FY11: INR137.36 crore)
with a net profit of INR3.36 crore (FY11: INR4.44 crore). During
H1FY13, the company has registered total income of INR82.07 crore.
INTEGRATED RUBIAN: CARE Rates INR4.78cr LT Loan at 'CARE B+'
------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Integrated Rubian Exports Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 4.78 CARE B+ Assigned
Short-term Bank Facilities 6.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Integrated Rubian
Exports Limited are constrained by its working capital intensive
nature of business, implementation risk associated with ongoing
debt-funded capex, competitive nature of the industry, coupled
with regulatory risks and seasonality associated with the seafood
industry. The aforesaid constraints are only partially offset by
the strengths derived from the experience of the management,
location advantage of the company with easy availability of raw
materials and favorable demand for seafood.
The ability of the company to complete its on-going project
without any time or cost overrun, and achieve the envisaged income
and profitability amidst the increasing competition is the key
rating sensitivity.
Integrated Rubian Exports limited was incorporated in June 1990.
The company is engaged in the processing of shrimps, fish and
other marine products in cooked, semi-cooked and ready-toeat
form in consumer packs. IREL's processing unit is located at
Aroor, Kerala, and the company sells its products under the brand
name of "Royal Malabar" and "Malabar Queen".
IREL was promoted by K. A. Kunjumoideen and his associates, in the
assisted sector with equity participation of Kerala State
Industrial Development Corporation, Marine Products Exports
Development Authority (MPEDA) and Risk Capital and Technology
Finance Corporation Ltd.
However, later from the year 2000-2001 onwards, it started
incurring cash losses on account of various reasons beyond the
control of the company. Therefore, the company was under lock-out
since 2003, and was declared as a sick unit under the purview of
the Board for Industrial and Financial Reconstruction (BIFR), and
also has been suspended from BSE on account of non compliance with
listing agreement clauses from 2003 onwards.
IREL was taken over by the existing promoters in November 2011.
Currently, the company is headed by Azkhar Abdul Hameed (Managing
Director) and T.M Imthiaz (Director), and has restarted its
activity and the processing unit with renovation and expansion of
the unit.
RAGHUVIR DEVELOPERS: CARE Rates INR45cr Loan at 'CARE BB+'
----------------------------------------------------------
CARE assigns 'CARE BB+' rating to the bank facilities of Raghuvir
Developers & Builders.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 45 CARE BB+ Assigned
The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of withdrawal of the
capital or unsecured loans brought in by the partners, in addition
to the financial performance and other relevant factors.
Rating Rationale
The rating assigned to the bank facilities of Raghuvir Developers
& Builders (RDB) is constrained by the project execution risk,
marketing risk as considerable area is remaining to be sold and
high break even cost of the projects. The rating is further
constrained by the cyclicality associated with the real estate
industry, regional concentration of its projects and its
constitution as a partnership firm.
The rating, however, does drive strength from the promoters'
experience in the real estate industry with significant land bank,
favorable location of the project, moderate capital structure and
low funding risk.
Timely mobilization of funds, progress in project execution and
sale of the project space as per the envisaged prices are the key
rating sensitivities.
Raghuvir Developers & Builders was established in 2006 by the
Raghuvir group and has primarily been involved in development of
residential and commercial projects in Surat and adjoining areas.
RDB is currently developing, five residential projects, three
commercial projects and one residential-cum-commercial projects in
Surat and adjoining areas.
During FY13 (provisional), RDB reported a total operating income
of INR56.01 crore with a PAT of INR4.89 crore. During FY12 (refers
to the period April 01 to March 31), RDB reported total operating
income of INR49.89 crore (vis-a-vis INR47.27 crore in FY11) and
PAT of INR13.28 crore (vis-…-vis INR31.28 crore in FY11).
SANMATI EDIBLE: CARE Rates INR5.90cr LT Bank Loan at 'B'
--------------------------------------------------------
CARE assigns 'CARE B' rating to the bank facilities of Sanmati
Edible Oils Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 5.90 CARE B Assigned
Rating Rationale
The rating assigned to the bank facilities of Sanmati Edible Oils
Pvt Ltd is primarily constrained on account of its modest scale of
operations, along with its financial risk profile marked
by thin profitability margins, weak solvency and liquidity
position. The rating is further constrained by vulnerability of
profitability margins to volatile agro-commodity prices and highly
fragmented nature of the industry. The rating, however, favorably
takes into account the longstanding experience of the promoters in
the edible-oil-manufacturing business and proximity to sources of
raw material.
The ability of the company to improve its scale of operations,
along with improvement in overall financial risk profile, will be
the key rating sensitivity.
SEOPL was formed in 1992 as a partnership firm, namely, M/s
Sanmati Oil Industries by the Jaipurbased Jain family.
Subsequently, in March 1999, the firm converted into a private
limited company and assumed its current name. SEOPL is mainly
engaged in the extraction of crude edible oil and
de-oiled cake (DOC) from mustard seeds as well as the trading of
crude edible oil and DOC. The manufacturing facility of the
company is located at Jaipur with an installed capacity of 15,000
Metric Tonnes Per Annum (MTPA) as on March 31, 2013. The company
procures mustard seeds from the local market through brokers and
sells majority of its produce in Jharkhand, Bihar, Orissa
and West Bengal, through already established network of traders.
The promoters have also promoted S K Solvex Pvt Ltd - engaged in
the manufacturing of mustard oil and DOC, Sanjay Containers Pvt
Ltd - engaged in the manufacturing of empty tin containers,
and Shri Vikas Industries - engaged in trading of mustard oil and
DOC.
During FY12 (refers to the period April 1 to March 31), SEOPL has
reported a total operating income of INR49.1 crore (FY11: INR49.09
crore) and PAT of INR0.03 crore (FY11: INR0.01 crore). As per
the provisional result of FY13, it has registered total operating
income of INR63.01 crore and PAT of INR0.05 crore.
SARVA MANGALAM: CARE Assigns 'B' Rating to INR20.85cr LT Loan
-------------------------------------------------------------
CARE assigns 'CARE B' and 'CARE A4' rating to the bank facilities
of Sarva Mangalam Gajanan Steel Pvt Ltd.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank 20.85 CARE B Assigned
Short-term Bank 0.30 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Sarva Mangalam
Gajanan Steel Pvt Ltd are constrained by its small scale of
operation, geographical concentration, lack of backward
integration vis-…-vis volatility in raw material prices, low
capacity utilization, customer and supplier concentration risk,
highly competitive, fragmented and cyclical nature of the steel
industry. The ratings, however, draw strength from the
satisfactory experience of the promoters and proximity of its
plant to raw material sources.
The ability of the company to scale up the level of operation,
along with improvement in profitability margins, shall remain the
key rating sensitivities.
Asansol-based (West Bengal) Sarva Mangalam Gajanan Steel Pvt Ltd
(SMGS) incorporated in 2004 was promoted by Mr Binod Kumar Kedia,
Ms Madhu Devi Kedia, Mr Vikash Kedia and Mr Vishal Kedia. SMGS is
engaged in the manufacturing of steel angles, flats, bars, rounds
and channels with its sole manufacturing facility located at
Kalipahari (Asansol) with an installed capacity of 44,000 MTPA.
The company procures raw materials (Ingot and scrap) from the open
market through local players and sells its product in Durgapur,
Asansol, Burdawan, etc of West Bengal.
During FY12 (refers to the period April 1, 2011 to March 31,
2012), SMGS achieved a PBILDT of INR1.5 crore (Rs.1.6 crore in
FY11) and a PAT of INR0.5 crore (Rs.0.5 crore in FY11) on the
total income of INR37 crore (Rs.37.7 crore in FY11). Furthermore,
the company has maintained to have achieved a turnover of INR55
crore during FY13 (provisional).
SM TELEDIRECT: CARE Assigns 'BB' Rating to INR16CR LT Loan
----------------------------------------------------------
CARE assigns 'CARE BB'/'CARE A4' ratings to the bank facilities of
S.M. Teledirect Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 16 CARE BB Assigned
Short-term Bank Facilities 2 CARE A4 Assigned
Rating Rationale
The credit ratings assigned to the bank facilities of S. M.
Teledirect Private Ltd are constrained due to the moderate scale
of operation considering the trading nature of business, high
utilisation of the bank borrowings, unfavorable capital structure,
concentration risk emanating out of sales restricted to a
particular geography and the rapidly changing mobile handset
market.
The ratings, however, take cognizance of the relevant experience
of the promoters in the trading of mobile handsets, increasing
presence of the Samsung mobile handsets in the Indian markets and
established track record with a large network of retailers within
the western Mumbai suburbs.
Going forward, the ability of the company to sustain its sales in
the high-end category phones and to maintain the operations within
the budgeted working-capital limits constitute the key rating
sensitivity.
The promoter of the company Prashant Goel started the trading of
mobiles in 2008 through a proprietorship concern viz S.M
Teledirect. Later he formed S.M. Teledirect Private Limited
in April 2008, which had no operations till March 2011.
Subsequently, SMT got merged with SMTPL and since April 1, 2011,
the business of trading mobiles is carried out through SMTPL.
SMTPL is a redistribution stockist for 'Samsung' mobile handsets.
It procures handsets from Shree Sant Kripa Appliances (P) Ltd, the
national distributor of Samsung mobiles in the west zone of India
and sells it to retail network across Vile Parle to Dahisar area
in Mumbai. SKPL has distribution agreement with Samsung India
Electronics India Private Limited (Samsung India) and, in turn,
has similar arrangement with SMTPL.
For FY13 (provisional), SMTPL reported a PAT of INR1.06 crore on a
total income of INR320.70 crore, as compared with a PAT of INR1.19
crore on a total income of INR275.37 crore for FY12.
SUBRA INTERNATIONAL: CARE Rates INR1.5cr LT Loan at 'CARE B+'
-------------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank
facilities of Subra International Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 1.50 CARE B+ Assigned
Short-term Bank Facilities 6.50 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Subra International
Private Limited are primarily constrained by moderate scale of
operations, low profitability margins, leveraged capital
structure, stressed liquidity position and exposure to forex risk.
The ratings are further constrained by competition from the
organized and unorganized players in the industry.
The ratings, however, find support from the experienced promoters,
growing scale of operations, coupled with moderate operating
cycle. The ratings further find support through in-house design
capability of SIPL.
Going forward, the ability of SIPL to scale up its operation,
while improving its profitability margins and effective management
of foreign exchange fluctuations, shall be the key rating
sensitivity.
Subra International Private Limited was established in 1984 by
Maninder Samanta as a proprietorship concern 'Subra
International'. Later, in November 2011, the constitution was
changed to private limited and Tanisha Samanta joined the company
as director. The company is engaged in the designing and
manufacturing of jewelry. The company has its manufacturing
facility at Karol Bagh, New Delhi. The company sells its products
in the domestic markets through jewelry retailers mainly in Delhi
and nearby areas. The company is also exporting its manufactured
products to Canada, UK, USA, Singapore and Dubai.
SIPL booked the total operating income of INR50.99 crore with PAT
of INR0.59 crore for FY12 as against the total operating income of
INR32.97 crore with PAT of INR0.30 crore for FY11.
SUDIVA SPINNERS: CARE Assigns 'BB-' Ratings to INR47.38cr Loans
---------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of Sudiva Spinners Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 26.88 CARE BB- Assigned
Long-term/Short-term Bank 20.50 CARE BB-/CARE A4
Facilities Assigned
Short-term Bank Facilities 2.00 CARE A4 Assigned
Rating Rationale
The ratings assigned to the bank facilities of Sudiva Spinners
Private Limited are primarily constrained on account of its
fluctuating profitability margins, leveraged capital structure and
weak liquidity position. The ratings are further constrained due
to the vulnerability of margins to fluctuation in raw material
prices, which are dependent on the government policies and
agroclimatic conditions, and its presence in a highly competitive
and fragmented textile industry.
The ratings, however, favorably take into account the vast
experience of the promoters in the industry and continuous
financial support extended by them in the past. The ratings
further drive strength from SSPL's reputed clientele, established
marketing network and healthy growth in Total Operating Income
(TOI).
The ability of SSPL to increase its scale of operations while
maintaining profitability margins in light of volatile raw
material prices and improvement in solvency and liquidity position
is the key rating sensitivity.
Bhilwara-based (Rajasthan) SSPL, incorporated in January 2007, is
promoted by J.C. Laddha, along with his son Varun Laddha. SSPL is
engaged in the business of manufacturing of mainly cotton yarn,
which constituted around 90% of total production in FY13 (refers
to the period April 1 to March 31) with balance constituting of
polyester cotton yarn and synthetic cotton yarn. The company had
an installed capacity of 7,800 Metric Tonnes Per Annum (MTPA)
(2,208 rotors), as on March 31, 2013, at its unit located at
Bhilwara, which was 95% utilized during FY13. SSPL manufactures
cotton and polyester cotton yarn ranging from 4 to 24 count and 6
to 26 count, respectively. The company sells yarn in the domestic
market as well as exports it mainly to China, Hong Kong, Latin
American countries and the UK. The export sales constituted about
56% of TOI of the company during FY13.
During FY13, EGPL reported a total operating income of INR93.25
crore (FY12: INR87.33 crore), with a PAT of INR1.36 crore (FY12:
INR0.05 crore).
TRANS DAMODAR: CARE Assigns 'BB+' Ratings to INR68.41cr Loans
-------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank
facilities of Trans Damodar Coal Mining Private Limited.
Amount
Facilities (INR crore) Ratings
----------- ----------- -------
Long-term Bank Facilities 43.41 CARE BB+ Assigned
(Term Loan)
Long-term Bank Facilities 25.00 CARE BB+ Assigned
(Fund-based)
Short-term Bank Facilities 35.00 CARE A4+ Assigned
(Non-fund Based)
Rating Rationale
The ratings assigned to the bank facilities of Trans Damodar Coal
Mining Private Limited are constrained by its short track record
in the coal mining business coupled with delayed commencement of
mining operations resulting in delays in debt servicing in the
past, moderate financial performance in FY13 (refers to the period
from April 1 to March 31) and high gearing as on March 31, 2013.
The ratings also factor in the regulatory nature of coal mining
industry and susceptibility of its profitability margin to adverse
movement in coal prices.
The ratings, however, derive strength from TDCMPL's experienced
promoters, low coal off-take risk coupled with negligible
inventory risk, location advantage and adequate logistic support
for coal evacuation.
The ability of the company to generate revenue on a continuous
basis amidst challenging macroeconomic scenario remains the key
rating sensitivity.
Trans Damodar Coal Mining Pvt. Ltd., incorporated in 2006 is a
joint venture company promoted by Godavari Commodities Limited,
BLA Project Pvt. Ltd. and Calcutta Industrial Supply Corporation.
In 2005, Ministry of Coal (MoC) allotted Trans Damodar Coal Mining
Block (TDCMB) admeasuring 694 acres to West Bengal Mineral
Development and Trading Corporation Ltd. for 30 years. WBMDTCL
allotted mining of coal to GCL, BLAPPL and CISC by entering into
Contract Agreement dated May 31, 2006. Accordingly, GCL, BLAPPL
and CISC floated a joint venture company, namely, TDCMPL in 2006.
Additionally, WBMDTCL entered into Mining Contract Agreement and
Marketing, Selling and Delivery of Coal Agreement with TDCMPL in
May 31, 2006 by addendum dated March 31, 2010. In view of this,
apart from the mining activity, TDCMPL is now engaged into
marketing and selling activities on behalf of WBMDTCL. Currently,
TDCMPL is extracting GCV IV and GCV V coal and markets the
same all over the country through e-auction.
The net mineable coal reserve for TDCMB, as estimated by Mineral
Exploration Corporation Ltd. is 48.40 million metric tonnes (MMT)
with a total Over- Burden (OB) quantity of 290.0 million cubic
metres (Cum), at an average stripping ratio of 1:5.99.
During FY13 (unaudited), TDCMPL reported a PAT of INR11.43 crore
and a total operating income of INR86.18 crore.
* Rupee Fall to Mainly Hit Chemical, Fertiliser, Paper Firms
------------------------------------------------------------
Companies in the chemicals, fertiliser and paper industries will
be the most negatively affected by sustained depreciation of the
Indian rupee, Fitch Ratings says. Exporters such as pharmaceutical
and technology companies may gain some benefit from the currency's
move, but this is likely to be less than in the past.
The effect of the rupee depreciation on importers will depend on
several factors, including whether they are able to pass on higher
import prices via the import parity price (IPP) practices common
in certain industries.
Chemical, fertiliser and paper companies, along with cement
producers that do not have adequate domestic coal links, tend to
import a lot of their raw materials. They also tend not to benefit
from IPP arrangements and will have limited opportunity to pass on
higher costs because of subdued demand.
Oil and gas companies and metal producers are more likely to
benefit from IPP practices or to also have significant exports
that help offset the rising cost of imported raw materials.
Companies in the auto ancillary sector also typically have
contracts to pass on higher costs to original equipment
manufacturers, but may be forced to absorb some of the price
increases due to falling end-user demand.
For exporters such as pharmaceutical, technology, textile and
mining companies, the beneficial effects on operating margins and
leverage are likely to be weaker than during previous periods of
depreciation. This is due to lower global demand, aggressive price
renegotiations, hedged foreign-currency exposure and the
additional cost of servicing foreign-currency debt.
The rupee has fallen around 10% against the dollar since the start
of May and its decline has accelerated recently amid increased
concern about the eventual withdrawal of quantitative easing in
the US.
=========
J A P A N
=========
RESTAY HOTELS: Moody's Removes Ratings Due to Lack of Information
-----------------------------------------------------------------
Moody's Japan K.K. has withdrawn its ratings on the Senior
Specified Loan, the Mezzanine Specified Loan, and the Specified
Bond issued by Restay Hotels TMK.
The affected ratings are as follows:
Senior Specified Loan, withdrawn the Ba1 (sf); previously on June
8, 2012, downgraded to Ba1 (sf)
Mezzanine Specified Loan, withdrawn the B3 (sf); previously on
June 8, 2012, downgraded to B3 (sf)
Specified Bond, withdrawn the B3 (sf); previously on June 8, 2012,
downgraded to B3 (sf)
Transaction/Borrower Name: Restay Hotels Tokutei Mokuteki Kaisha
Class: Senior Specified Loan, Mezzanine Specified Loan and
Specified Bond
Issue Amount (initial): JPY4 billion
Dividend: Floating
Issue Date (initial): May 18, 2007
Final Maturity: May 2014
Underlying Asset (initial): 19 leisure hotels located in Japan
Originator: Restay Co., Ltd.
Arranger (Initial): Commertzbank Aktiengesellschaft, Tokyo Branch
Ratings Rationale:
Moody's has withdrawn the rating because it believes it has
insufficient or otherwise inadequate information to support the
maintenance of the rating.
The related party decided to stop participating in the ratings
process.
====================
N E W Z E A L A N D
====================
FIVE STAR: Court Reopens "Shadow Director" Trial
------------------------------------------------
Stuff.co.nz reports that the alleged mastermind behind failed
finance company Five Star Finance had a "'fulsome understanding'
of the transactions he was arranging," the High Court in Auckland
has heard.
The Crown has opened its case against Neil Allan Williams who is
being tried on theft and dishonesty charges, Stuff.co.nz relates.
Stuff.co.nz notes that Mr. Williams is currently in prison after
being convicted of Securities Act charges brought by the Financial
Markets Authority (FMA), but was back in court Monday to face two
charges of theft by a person in a special relationship and five
charges of dishonestly using a document.
The latest charges have been laid by the Serious Fraud Office
(SFO), the report notes.
According to Stuff.co.nz, the "shadow director" was sentenced to
three years and seven months in prison in April after his
conviction for misleading investors through Five Star's
prospectus.
The report says the trial of the 79-year-old is expected to take
up to three weeks, and will be heard by Justice Murray Gilbert
without a jury.
Mr. Williams reiterated his plea of "not guilty" to all the SFO
charges on Monday, before the trial was adjourned, the report
adds.
About Five Star Finance
Established in 1992, Five Star Finance Limited focused on
financing real estate loans following a restructuring exercise
that created Five Star Consumer Finance in New Zealand and Five
Star Consumer Finance Pty in Australia.
Five Star Debenture Nominee Limited acted as debenture holder on
behalf of unsecured depositors and appeared to lend all of the
money it raised to Five Star Finance.
Five Star Finance Limited went into receivership on September 5,
2007. Five Star Debenture Nominee Limited went into liquidation
on November 5, 2007. At the start of the liquidation in June
2009, the shortfall of assets to liabilities was NZ$51.7 million,
according to The Dominion Post. The Post says joint liquidator
Paul Sargison, of Gerry Rea & Associates, said the firm's
directors attributed the group's failure to the economic crisis
but his own appraisal is that Five Star has been insolvent since
no later than March 31, 2005.
MEDIAWORKS NZ: 2012 Annual Loss Narrow to NZ$90 Million
-------------------------------------------------------
BusinessDesk reports that MediaWorks NZ, the broadcaster whose
lenders look likely to seize control, narrowed its annual loss in
2012 after massive writedowns a year earlier.
BusinessDesk, citing financial statements lodged with the
Companies Office, discloses that the group's holding company, GR
Media Holdings, reported a net loss of almost NZ$90 million in the
12 months ended August 31, 2012, from NZ$318.4 million a year
earlier. The year-earlier result included NZ$241.6 million to
write down the value of MediaWorks' goodwill, primarily in the
TVWorks business.
According to BusinessDesk, the Auckland-based broadcaster's cash-
paid finance costs were slightly lower at NZ$28.7 million, though
its capitalised finance costs jumped by more than 50 per cent to
NZ$46.7 million. It booked a NZ$28.8 million impairment charge,
writing down the value of TV programme rights that were still to
be aired after Sept. 1. It also accelerated its writedown of
analogue assets by NZ$3 million ahead of the digital switchover.
BusinessDesk discloses that stripping out non-cash costs, earnings
before interest, tax, depreciation and amortisation sank 35 per
cent to NZ$28.8 million, barely more than the company's borrowing
costs. Revenue crept up 0.5 per cent to NZ$259.6 million, while
costs of programming and production climbed
9.5 per cent to NZ$128.4 million and sales and marketing spending
rose 12 per cent to NZ$61.1 million.
Net operating cash flow was NZ$261,000 in the year, the report
relays.
BusinessDesk relates that the company said MediaWorks Radio
performed strongly, with revenue growth of 1.4 per cent, and
EBITDA beating budget.
Auditor PwC gave a disclaimer of opinion on the accounts, which
were prepared on a non-going concern basis due to the uncertainty
as to whether the broadcaster's lenders would extend their support
for the business, according to BusinessDesk.
MediaWorks NZ Limited -- http://www.mediaworks.co.nz/--through
its subsidiaries, operates in the television and radio
broadcasting sectors in New Zealand. It operates the TV3
television network, which primarily offers news, current affairs,
and sports programs, as well as entertainment programs; and C4, a
free-to-air music channel.
MediaWorks funders on June 17 appointed Brendon Gibson and Michael
Stiassny of financial advisory firm KordaMentha to oversee the
receivership of MediaWorks NZ Limited and its subsidiaries,
including RadioWorks Ltd and TVWorks Ltd.
WHITEHART DEVELOPMENTS: Placed Into Liquidation
-----------------------------------------------
Manawatu Standard reports that Whitehart Developments Ltd has been
placed into liquidation with debts of more than NZ$200,000.
Bruce Eccles, who ran for the Waiopehu ward in the 2007 local body
elections, is an owner and director of the building company, the
report relates.
Manawatu Standard says Whitehart stopped trading in November 2009
and was placed into liquidation at the request of Inland Revenue
over unpaid taxes.
Manawatu Standard relates that the first liquidation report,
released on June 19 by the Official Assignee, showed the company
had NZ$216,154 of debts and no known assets. About NZ$3,956 was
owed to Inland Revenue, the report notes.
Whitehart Developments Ltd is a Horowhenua-based building company.
=====================
P H I L I P P I N E S
=====================
RURAL BANK OF BORONGAN: Placed Under PDIC Receivership
------------------------------------------------------
The Monetary Board (MB) placed the Rural Bank of Borongan, Inc.
under the receivership of the Philippine Deposit Insurance
Corporation (PDIC) by virtue of MB Resolution No. 962.A dated June
14, 2013. As Receiver, PDIC took over the bank on June 17, 2013.
Rural Bank of Borongan is a single-unit bank located at corner J.
Bocar and Cardona Streets, Borongan City, Eastern Samar. Latest
available records show that as of March 31, 2013, Rural Bank of
Borongan had 350 accounts with total deposit liabilities of
PHP16.55 million. A total of 345 deposit accounts or 98.6% of the
accounts have balances of PHP500,000 or less and fully covered by
deposit insurance. Total insured deposits amounted to
PHP15.61 million or 94.3% of the total deposits.
PDIC said that upon takeover, all bank records shall be gathered,
verified and validated. The state deposit insurer assured
depositors that all valid deposits shall be paid up to the maximum
deposit insurance coverage of PHP500,000.00.
The PDIC also announced that it will conduct a Depositors-
Borrowers Forum on June 21, 2013 to inform depositors of the
requirements and procedures for filing deposit insurance claims.
Claim forms will be distributed during the Forum. The schedule and
venue of the Forum will be posted in the bank premises and in the
PDIC website, www.pdic.gov.ph. The claim forms and the
requirements and procedures for filing are likewise available for
downloading from the PDIC website.
Depositors may update their addresses with the PDIC
representatives at the bank premises or during the Forum using the
Mailing Address Update Forms to be furnished by PDIC
representatives. Duly accomplished Mailing Address Update Forms
should be submitted to PDIC representatives accompanied by a
photo-bearing ID of the depositor with signature. Depositors may
update their addresses until June 24, 2013.
Depositors with valid deposit accounts with balances of
PHP15,000.00 and below need not file deposit insurance claims. But
depositors who have outstanding obligations with the Rural Bank of
Borongan including co-makers of the obligations, and have
incomplete and/or have not updated their addresses with the bank,
regardless of amount, should file deposit insurance claims.
For depositors that need not file deposit insurance claims, PDIC
targets to start mailing payments to these depositors at their
addresses recorded in the bank no later than the last week of
June.
For depositors that are required to file deposit insurance claims,
the PDIC targets to start claims settlement operations for these
accounts no later than the first week of July. The schedule of the
claims settlement operations will be announced through notices to
be posted in the bank premises and other public places as well as
through the PDIC website, www.pdic.gov.ph.
According to the latest Bank Information Sheet (BIS) as of
December 31, 2012 filed by the Rural Bank of Borongan with the
PDIC, the bank is majority-owned by Exequiel D. Singzon, Jr.
(37.38%), Leonardo Y. Medroso (18.45%) Marivic Reyes (4.98%), Paz
V. Anacta (4.65%), and Virginia Kishida (4.51%). Its Chairman and
President is Exequiel D. Singzon, Jr.
UNIWIDE GROUP: SEC Orders Dissolution, Liquidation
--------------------------------------------------
GMA News reports that the Securities and Exchange Commission has
ordered the dissolution and liquidation of Uniwide Holdings Inc.,
a listed company owned by businessman Jimmy Gow and five other
companies under Uniwide Group of Companies.
In a decision, GMA News relates, SEC denied the Uniwide group's
appeal to reconsider the special hearing panel's decision to
terminate the proposed rehabilitation of Uniwide Group of
Companies.
"The dissolution of all companies in the group, namely Uniwide
Sales Inc., Uniwide Holdings Inc., Naic Resources and Development
Corp., Uniwide Sales Realty and Resources Corp., First Paragon
Corp. and Uniwide Sales Warehouse Club Inc. is hereby ordered
pursuant to Sec 6-1 of the SEC Rules of Procedures on Corporate
Recovery, after which, liquidation shall follow," SEC, as cited by
GMA News, said.
In 2009, GMA News recalls, the SEC's special hearing panel decided
to terminate the Uniwide Group's rehabilitation plan because of
its failure to comply with the terms of the plan as approved in
2002.
The special hearing panel also concluded that the Uniwide group
has changed from being "solvent but distressed" to "technically
insolvent," GMA News adds.
Under the rehabilitation plan, GMA News relates, Uniwide planned
to settle its debts with secured creditors through dacion en pago,
a special mode of payment whereby the debtor offers another thing
to the creditor as equivalent of payment of an outstanding
obligation.
The report relates that the supermarket chain was also expected to
generate cash from operations of existing stores.
SEC however said the planned dacion en pago with Allied Bank,
Philippine National Bank, LNC SPV-AMC Corp and other secured
creditors failed because of refusal of some creditors to comply
with the terms of the rehabilitation plan, according to GMA News.
The supermarket chain also failed to increase its sales because of
closure of Uniwide stores, the lack of supplier support for the
company's supermarket operations and unprogrammed operating
expenses, the report adds.
At the filing of the petition for rehabilitation on June 25, 1999,
Uniwide Group operated eight warehouse clubs and two department
stores with total assets of PHP19.86 billion and total liabilities
of PHP11.1 billion, GMA News discloses.
But by the end of 2008, the SEC said, the number of Uniwide stores
was down to five warehouses and one department store. The group's
assets were also down to PHP2.7 billion while liabilities
ballooned to PHP12.3 billion, the report relays.
About Uniwide Holdings Inc.
Uniwide Holdings Inc. (UW) was incorporated on September 15,
1994 primarily to engage in the business of investment by way of
acquisition, transfer, exchange or disposal of real or personal
property. The company started commercial operations on July 1,
1995. UW was established to act as the franchisor of the
retail/wholesale stores that trade under the name Uniwide Sales,
and to consolidate the real estate interests of the Gow Family.
The company is currently the franchisor of five Uniwide Sales
Warehouse Clubs and one Uniwide Sales Department Store.
Uniwide filed for rehabilitation in June 1999, and the
Securities and Exchange Commission approved its rehabilitation
plan in 2000. Under the plan, the Company will convert 50% of
its unsecured debt into 15-year convertible notes redeemable
anytime at its convenience, while the remaining 50% would be
restructured into a 10-year loan with 0% interest and a 3-year
grace period; payment will begin on the fourth year.
At that time, it still had eight warehouse clubs and two
department stores with total assets of PHP19.864 billion and
liabilities worth PHP11.101 billion, according to GMANews.TV.
By the end of 2008, Uniwide was operating only five warehouse
clubs and a department store. At the end of September 2009, the
group's assets stood at PHP2.726 billion, while liabilities
further increased to PHP12.292 billion.
The Uniwide group is composed of Uniwide Sales, Inc., Uniwide
Holdings, Inc., Naic Resources and Development Corp., Uniwide
Sales Realty & Resources Corp., First Paragon Corp., and Uniwide
Sales Warehouse Club, Inc.
===============
X X X X X X X X
===============
* BOND PRICING: For the Week June 17 to June 21, 2013
-----------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
MIDWEST VANADIUM 11.50 2/15/2018 USD 63.50
MIDWEST VANADIUM 11.50 2/15/2018 USD 71.12
NEW S WALES TREA 0.50 9/14/2022 AUD 70.62
NEW S WALES TREA 0.50 10/7/2022 AUD 70.30
NEW S WALES TREA 0.50 10/28/2022 AUD 70.10
NEW S WALES TREA 0.50 11/18/2022 AUD 69.90
NEW S WALES TREA 0.50 12/16/2022 AUD 70.22
NEW S WALES TREA 0.50 2/2/2023 AUD 69.71
NEW S WALES TREA 0.50 3/30/2023 AUD 69.25
TREAS CORP VICT 0.50 8/25/2022 AUD 71.75
TREAS CORP VICT 0.50 3/3/2023 AUD 70.62
TREAS CORP VICT 0.50 11/12/2030 AUD 49.51
CHINA
-----
CHINA GOVT BOND 1.64 12/15/2033 CNY 68.97
INDIA
-----
3I INFOTECH LTD 5.00 4/26/2017 USD 33.70
COROMANDEL INTL 9.00 7/23/2016 INR 16.27
DR REDDY'S LABOR 9.25 3/24/2014 INR 5.00
GRAMEEN FIN SERV 14.05 6/7/2016 INR 54.58
JCT LTD 2.50 4/8/2011 USD 20.00
MASCON GLOBAL LT 2.00 12/28/2012 USD 10.00
PRAKASH IND LTD 5.63 10/17/2014 USD 66.37
PRAKASH IND LTD 5.25 4/30/2015 USD 64.59
PUNJAB INFRA DB 0.40 10/15/2024 INR 34.15
PUNJAB INFRA DB 0.40 10/15/2025 INR 31.19
PUNJAB INFRA DB 0.40 10/15/2026 INR 28.37
PUNJAB INFRA DB 0.40 10/15/2027 INR 25.88
PUNJAB INFRA DB 0.40 10/15/2028 INR 23.66
PUNJAB INFRA DB 0.40 10/15/2029 INR 21.71
PUNJAB INFRA DB 0.40 10/15/2030 INR 19.95
PUNJAB INFRA DB 0.40 10/15/2031 INR 18.37
PUNJAB INFRA DB 0.40 10/15/2032 INR 16.94
PUNJAB INFRA DB 0.40 10/15/2033 INR 15.64
PYRAMID SAIMIRA 1.75 7/4/2012 USD 1.00
REI AGRO 5.50 11/13/2014 USD 70.81
REI AGRO 5.50 11/13/2014 USD 70.81
SHIV-VANI OIL 5.00 8/17/2015 USD 34.12
SUZLON ENERGY LT 7.50 10/11/2012 USD 65.12
SUZLON ENERGY LT 5.00 4/13/2016 USD 49.87
INDONESIA
----------
BUMI INVESTMENT 10.75 10/6/2017 USD 74.25
JAPAN
-----
ELPIDA MEMORY 2.03 3/22/2012 JPY 13.62
ELPIDA MEMORY 2.10 11/29/2012 JPY 13.62
ELPIDA MEMORY 2.29 12/7/2012 JPY 13.62
ELPIDA MEMORY 0.50 10/26/2015 JPY 8.12
JPN EXP HLD/DEBT 0.50 9/17/2038 JPY 68.44
JPN EXP HLD/DEBT 0.50 3/18/2039 JPY 68.47
PHILIPPINES
-----------
BAYAN TELECOMMUN 13.50 7/15/2006 USD 22.75
BAYAN TELECOMMUN 13.50 7/15/2006 USD 22.75
SINGAPORE
---------
BAKRIE TELECOM 11.50 5/7/2015 USD 40.00
BAKRIE TELECOM 11.50 5/7/2015 USD 37.87
BLD INVESTMENT 8.63 3/23/2015 USD 70.00
BLUE OCEAN 11.00 6/28/2012 USD 39.37
BLUE OCEAN 11.00 6/28/2012 USD 39.37
DAVOMAS INTL FIN 11.00 12/8/2014 USD 25.75
DAVOMAS INTL FIN 11.00 12/8/2014 USD 25.75
INDO INFRASTRUCT 2.00 7/30/2049 USD 1.87
SOUTH KOREA
-----------
CHEJU REGION DEV 3.00 12/29/2034 KRW 67.09
EXP-IMP BK KOREA 0.50 9/28/2016 BRL 64.45
EXP-IMP BK KOREA 0.50 10/27/2016 BRL 72.04
EXP-IMP BK KOREA 0.50 11/28/2016 BRL 69.49
EXP-IMP BK KOREA 0.50 12/22/2016 BRL 68.07
EXP-IMP BK KOREA 0.50 10/23/2017 TRY 69.15
EXP-IMP BK KOREA 0.50 11/21/2017 BRL 66.35
EXP-IMP BK KOREA 0.50 12/22/2017 TRY 67.85
EXP-IMP BK KOREA 0.50 1/25/2017 TRY 73.97
SRI LANKA
---------
SRI LANKA GOVT 6.20 8/1/2020 LKR 74.49
SRI LANKA GOVT 7.00 10/1/2023 LKR 67.52
SRI LANKA GOVT 5.35 3/1/2026 LKR 57.25
SRI LANKA GOVT 8.00 1/1/2032 LKR 72.07
THAILAND
--------
G STEEL 3.00 10/4/2015 USD 7.87
MDX PUBLIC CO 4.75 9/17/2003 USD 16.12
*********
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.
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