/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130718.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, July 18, 2013, Vol. 16, No. 141 Headlines A U S T R A L I A BILLABONG INT'L: Strikes AUD325-Mil. Debt Refinancing Deal CENTRAL MINING: Creditors to Vote on Revival Plan Next Week DA INFORMATION: Collapses Into Administration NEW WORLD: Clifton Hall Appointed as Liquidators C H I N A CSC PHOENIX: May Face Bankruptcy Over CNY12.5MM Debt I N D I A ANMOL ENTERPRISES: CRISIL Places 'B' Rating on INR150MM Loans HENTECH AGROVET: CRISIL Places 'B+' Ratings on INR117.7MM Loans KAMACHI STEELS: CRISIL Assigns 'B+' Rating to INR170MM Loan L N CONSTRUCTIONS: CRISIL Places 'B-' Rating on INR35MM Loan MUSLIM EDUCATIONAL: CRISIL Puts 'BB+' Ratings on INR285MM Loans NJA INDUSTRIES: CRISIL Ups Ratings on INR79.3MM Loans to 'B+' PISCES EXIM: CRISIL Assigns 'B' Rating to INR95MM Cash Credit PSA IMPEX: CRISIL Assigns 'B' Rating to INR500MM Bank Loan R.K. MOTORS: CRISIL Assigns 'BB+' Ratings to INR65MM Loans SANGHI TRADING: CRISIL Assigns 'BB' Rating to INR50MM Cash Credit SATISH KUMAR: CRISIL Assigns 'BB-' Ratings to INR115MM Loans SELECT MOTORS: CRISIL Assigns 'BB-' Ratings to INR90MM Loans UNI STYLE: CRISIL Assigns 'C' Ratings to INR91.5MM Loans VIJAYA SAI: CRISIL Downgrades Rating on INR50MM Loan to 'D' I N D O N E S I A CIKARANG LISTRINDO: Moody's Changes Outlook to Stable MERPATI NUSANTARA: Mgmt. Hails Government Decision to Sell Shares N E W Z E A L A N D MEDIAWORKS NZ: May Lose Several TV Shows to TVNZ, Prime TV * FMA Expects to Wrap Up Probe Into Failed Finance Cos. This Year S O U T H K O R E A STX GROUP: Creditors to Infuse KRW3 Tril. Into Shipbuilding Unit * SOUTH KOREA: Some Builders Likely to Suffer Losses in Q2 X X X X X X X X * Moody's Notes Cyclical Peak in Credit Quality of AP Banks - - - - - ================= A U S T R A L I A ================= BILLABONG INT'L: Strikes AUD325-Mil. Debt Refinancing Deal ---------------------------------------------------------- Jenny Rogers and Blair Speedy at goldcoast.com.au report that Billabong has agreed to a AUD325 million debt refinancing deal that will effectively see control of the company handed over to US private equity group Altamont, while pushing out chief executive Launa Inman after just 14 months in the role. According to the report, the company said it had entered into agreements with Altamont and fellow US private equiteer Blackstone to immediately repay its syndicated debt facilities in full, while providing a long-term financing package to keep the business operating. The deal included the sale of the DaKine adventure sports accessories brand, the report relays. goldcoast.com.au relates that Billabong said that as a condition of the deal it was replacing chief executive Launa Inman with former Oakley chairman and chief executive Scott Olivet. According to goldcoast.com.au, Billabong chairman Ian Pollard said the refinancing and other changes "provide the company with a stable platform and the necessary working capital to continue to address the challenges it faces". The report notes that the company had been in extended refinancing and asset-sale talks with Altamont and Sycamore since June 4 when it said takeover talks with the two parties had collapsed. It followed revelations US distressed debt investors Oaktree Capital Management and Centerbridge Partners had stepped in and had bought loans worth AUD280 million from all seven banks which comprised Billabong's original lenders, the report adds. The Sydney Morning Herald reported in April that the company's path to redemption got tougher after the surfwear group downgraded earnings guidance and said a AUD537 million loss for the half-year put it in breach of debt covenants. The breach led its banks to seek a secured charge over most of the business, SMH related. DealBook said Billabong has fallen on difficult times because of changing consumer tastes and the financial crisis. It has closed stores and sold assets as part of an effort to restructure the company. Based in Australia, Billabong International Limited (ASX:BBG) -- http://www.billabongbiz.com/-- is engaged in the wholesaling and retailing of surf, skate, snow and sports apparel, accessories and hardware, and the licensing of its trademarks to specified regions of the world. CENTRAL MINING: Creditors to Vote on Revival Plan Next Week ----------------------------------------------------------- Sean Smith at The West Australian reports that creditors will next week vote on a plan to revive Central Mining & Contracting (CMC), an indigenous-owned mining contractor that went under owing nearly AUD11 million. CMC owner, respected Pilbara Aboriginal leader and businessman Charles Smith, called in HLB Mann Judd (Insolvency WA) last month after a financial demand from the Australian Tax Office. The West notes that CMC has been closely linked with Rio Tinto since its formation in 2006, carrying out excavation and earthworks on Rio's Pilbara iron ore expansion projects. According to the report, administrator Kim Wallman -- kwallman@hlbinsol.com.au -- has backed a plan that would see a fellow Belmont-based contractor, Multiplant, inject AUD500,000 into a deed of company arrangement for CMC. The funds, together with a realisation of CMC's assets, would be used to repay creditors, though the recoveries are expected to be limited to 20 cents in the dollar, the report relays. The West says the Multiplant injection is conditional on a new joint venture between it and Mr. Smith winning a contract to build an access road to Rio Tinto's Brockman mine. Rio, which like other Pilbara miners is committed to increased indigenous participation in its local operations, is said to be keen to help, where it can, get CMC back on its feet, says The West. According to the report, Mr. Wallman said that on his appointment CMC was incurring "significant" trading losses on the back of cost blowouts on contracts. Trade creditors are owed AUD7.5 million and the tax office AUD2.2 million. DA INFORMATION: Collapses Into Administration --------------------------------------------- Patrick Stafford at Smart Company reports that an academic book publishing company with $40 million in turnover has now collapsed in administration, yet another sign the print and publishing industries are continuing to face severe transition pains. The news comes after discount book group allbooks4less also fell into administration last week, following an aggressive expansion plan, according to Smart Company. The report notes that publishers have commented bookstores and booksellers have struggled to prop up book prices in the face of dynamic online competition. The report relates that DA Information Services Group, which contains the businesses Information Specialists, DA Information Services Pty and Central Book Services, has been placed into administration. A spokesperson for administrator Ferrier Hodgson told SmartCompany while it was too early to give any detailed information about the business or its collapse, the business is trading as usual. The company counts 45 employees, while a first creditors' meeting is set to be heard, the report adds. DA Information Services Group claims to be Australia's largest locally based full service academic library supplier, providing books, journals, eBooks and other media products for professional purposes across Australia and New Zealand. The business was founded 60 years ago. Customers include academic libraries, research facilities, medical centres, government departments, universities and TAFEs, along with law libraries. NEW WORLD: Clifton Hall Appointed as Liquidators ------------------------------------------------ Timothy Clifton and Mark Hall of Clifton Hall were appointed as Joint and Several Liquidators of New World Bio Pty Ltd on July 16, 2013. ========= C H I N A ========= CSC PHOENIX: May Face Bankruptcy Over CNY12.5MM Debt ---------------------------------------------------- Max Tingyao Lin at Lloyds List reports that CSC Phoenix, part of Chinese state conglomerate Sinotrans & CSC, faces the risk of liquidation after receiving bankruptcy petitions from two creditors owed around CNY12.5 million (US$2 million). Both firms have written to CSC Phoenix and Wuhan Intermediate People's Court arguing that the carrier cannot repay its debts and that it is therefore necessary for CSC Phoenix to begin bankruptcy procedures, according to regulatory filings obtained by Lloyds List. ========= I N D I A ========= ANMOL ENTERPRISES: CRISIL Places 'B' Rating on INR150MM Loans ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the long-term bank facility of Anmol Enterprises. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 150 CRISIL B/Stable The rating reflects Anmol's exposure to project risks associated with its ongoing project and susceptibility to inherent risks and cyclicality in the real estate sector in India. These rating weaknesses are partially offset by the extensive experience of Anmol's promoters in the real estate sector. Outlook: Stable CRISIL believes that Anmol will benefit from the extensive experience of its promoters in the real estate sector over the medium term. The outlook may be revised to 'Positive' if there is a significant improvement in its business and financial risk profiles, backed by timely implementation and high salability of its ongoing project, leading to healthy cash accruals. Conversely, the outlook may be revised to 'Negative' if there is time and cost overruns in its ongoing project exerting significant pressure on Anmol's liquidity, or there are delays in receiving customer advances, constraining its revenues and profitability, and eventually its debt-servicing ability. Anmol is promoted by Ahmedabad-based Mr. Arvind Patel and his family members. The firm develops a residential project in Gota (Ahmedabad). It has commenced construction of the project in January 2012. HENTECH AGROVET: CRISIL Places 'B+' Ratings on INR117.7MM Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Hentech Agrovet Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 72.2 CRISIL B+/Stable Term Loan 45.5 CRISIL B+/Stable The rating reflects HAPL's exposure to risks related to project implementation, stabilization and offtake in respect of its ongoing rice mill project at Bihar. The performance of the company is expected to be susceptible to the competitive nature of the rice milling industry, adverse regulatory changes and fluctuations in raw material prices. The rating weaknesses are partially offset by the established background of the promoters and benefits derived from the locational advantage of the milling unit due to its proximity to the rice growing belt of Bihar. Outlook: Stable CRISIL expects HAPL to benefit from the resourceful background of the promoters and benefits derived from the locational advantage of the milling unit. The outlook may be revised to 'Positive' in case the project commences its operations without any significant time and cost overruns and generates higher-than-expected cash accruals while improving its debt protection metrics. Conversely, the outlook may be revised to 'Negative' in case if there are significant delays in project completion, cost overruns or significantly lower-than-expected cash accruals leading to pressure on the company's liquidity. Incorporated in 2007, HAPL is engaged in trading of agro commodities such as maize. It is setting up a modern par-boiled and raw rice processing unit of 8 MTPH capacity in Muzaffarpur, Bihar. HAPL plans to complete the project by June 2014. The day- to-day operations of the company are managed by Mr. Ashish Kumar Sarawgi and other family members. KAMACHI STEELS: CRISIL Assigns 'B+' Rating to INR170MM Loan ----------------------------------------------------------- CRISIL has revoked the suspension of its ratings on the bank facilities of Kamachi Steels Ltd and has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of KSL. The rating was previously 'Suspended' by CRISIL vide the Rating Rationale dated May 3, 2013, since KSL had not provided the necessary information required for a rating review. KSL has now shared the requisite information, enabling CRISIL to assign a rating to its bank facilities. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 170 CRISIL B+/Stable (Assigned; Suspension Revoked) Inland/Import 5 CRISIL A4 (Assigned; Letter of Credit Suspension Revoked) Letter Of Guarantee 5 CRISIL A4 (Assigned; Suspension Revoked) The ratings reflect KSL's moderate scale of operations in intensely competitive secondary steel industry and its working capital intensive operations. The ratings also factor in its below-average financial risk profile marked by weak debt protection metrics. These rating weaknesses are partially offset by the extensive industry experience of KSL's promoters and benefits derived from its synergies with group entities. Outlook: Stable CRISIL expects KSL shall continue to benefit from the extensive industry experience of its promoters and established relationship with key customers. The outlook may be revised to 'Positive' in case of significant growth in revenues and higher-than-expected profitability resulting in higher accruals or improvement in working capital management leading to improvement in financial risk profile. Conversely the outlook may be revised to 'Negative' in case of decline in revenues or profitability or in case the company undertakes higher-than-expected debt funded capital expenditure leading to further deterioration in its liquidity. KSL, taken over from Tulsyan Steels in 1996, manufactures mild steel ingots and thermo-mechanically-treated bars. KSL is a part of Kamachi group of companies set up by Mr. G L Kothari in 1978; the group is an integrated secondary steel player in Chennai (Tamil Nadu). KSL reported a profit after tax (PAT) of INR5.6 million on net sales of INR1.9 billion during 2011-12 (refers to financial year, April 1 to March 31) as against PAT of INR24 million on net sales of INR2.3 billion during 2010-11. L N CONSTRUCTIONS: CRISIL Places 'B-' Rating on INR35MM Loan ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to the bank facilities of L N Constructions. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 75 CRISIL A4 Cash Credit 35 CRISIL B-/Stable The ratings reflect LN's small scale of operations and high geographic concentration, and average financial risk profile, marked by its small net worth. These rating weaknesses are partially offset by the extensive experience of LN's promoters in the construction industry and moderate order book position. Outlook: Stable CRISIL believes that LN will benefit from its promoters' extensive industry experience. The outlook may be revised to 'Positive' in case of a higher-than-expected increase in the firm's scale of operations along with efficient working capital management. Conversely, the outlook may be revised to 'Negative' in case of lack of continued order flow, lower profitability, and significant pressure on firm's working capital management on account of delays in project execution and receivables. LN was established by Mr. Sudershan Reddy and his family in 2004 as a partnership firm. The firm is engaged in civil construction activities for irrigation, roads and bridges for the Government of Andhra Pradesh, and the Indian Railways. MUSLIM EDUCATIONAL: CRISIL Puts 'BB+' Ratings on INR285MM Loans --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to the bank facilities of The Muslim Educational Welfare Society. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 150 CRISIL BB+/Stable Bank Guarantee 70 CRISIL A4+ Proposed Long-Term 135 CRISIL BB+/Stable Bank Loan Facility The ratings reflect MEWS' established position in the education sector with a diversified course profile, and above-average financial risk profile, marked by low gearing and above-average debt protection metrics. These rating strengths are partially offset by MEWS' exposure to medical college project implementation risk and exposure to risks related to changing government regulations in the educational sector. Outlook: Stable CRISIL believes that MEWS will maintain its established position and its diversified revenue profile on the back of its track record in the education sector. The society's financial risk profile is also expected to remain healthy over the medium term on the back of healthy accruals. The outlook may be revised to 'Positive' in case of MEWS' accruals improve, most likely due to significant and sustainable improvement in scale of operations. Conversely, the outlook may be revised to 'Negative' in case MEWS undertakes any significant debt-funded capex programme, thus adversely affecting its financial risk profile, or in case of the society's significantly lower cash accruals, and in case of delay in commencement of operations of its medical college. MEWS was registered in 1987 under the Society Registration Act, 1860 and is based in Nidhauli Kalan, Etah district, Uttar Pradesh. The society manages education institutes in Uttar Pradesh offering various courses such as Masters in Business Administration (MBA), Bachelor of Technology (BTech) and other graduation degree courses. MEWS was set up in 1969 and has been running institutes since 1969 but was registered as a society in 1987. Its key members, Mr. Javed Anwar Warsi, Mr. Zakir Hussain and Mrs. Nighat Jahan, have experience of more than 20 years in the education field. NJA INDUSTRIES: CRISIL Ups Ratings on INR79.3MM Loans to 'B+' ------------------------------------------------------------- CRISIL has upgraded the rating on the long-term bank facilities of NJA Industries Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL B- /Stable', and has reaffirmed the rating on the company's short- term bank facilities at 'CRISIL A4' Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 19.6 CRISIL A4 (Reaffirmed) Cash Credit 74.0 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') Letter of Credit 27.5 CRISIL A4 (Reaffirmed) Term Loan 5.3 CRISIL B+/Stable (Upgraded from 'CRISIL B-/Stable') The rating upgrade reflects improvement in NJA's liquidity, marked by the company's sufficient cash accruals vis-�-vis its debt obligations. The rating upgrade also reflects improvement in NJA's business and financial risk profiles, marked by sharp growth in the company's scale of operations. NJA's liquidity has witnessed an improvement over the past one year, marked by improvement in the company's cash accruals. NJA's expected cash accruals of around INR12 million in 2013-14 (refers to financial year, April 1 to March 31) will be sufficient to meet its debt obligations of around INR3.5 million in the same year. Furthermore, the company's liquidity is also supported by need-based funding support from its promoters in the form of unsecured loans, which are estimated at INR5.1 million as on March 31, 2013. However, NJA's operations continue to remain working capital intensive, as reflected in estimated Gross Current Assets (GCA) of around 180 days as on March 31, 2013NJA's business risk profile has also improved, with the company's turnover estimated at INR398 million (year-on-year growth of 61 per cent) supported by large orders from Gujarat state electricity boards, which include Paschim Gujarat Vij Company Ltd, Uttar Gujarat Vij Company Ltd, and Madhya Gujarat Vij Company Ltd. CRISIL believes that NJA's topline will continue to grow at a moderate pace over the medium term, backed by the company's healthy relationship with its existing customers, and the healthy demand prospects of the power distribution and transmission segment in India. NJA's operating profitability is estimated at around 6.4 per cent in 2012-13, broadly in line with the past trend. CRISIL believes that the company's operating margin will remain at around the current levels over the near to medium term. NJA's financial risk profile has also improved on the back of improvement in accretion to reserves, as reflected in the company's estimated net worth of INR43 million and gearing of around 2 times as on March 31, 2013. CRISIL believes that NJA will sustain its financial risk profile over the medium term, in the absence of debt-funded capital expenditure plans. The ratings also reflect NJA's below-average financial risk profile, marked by a modest net worth, a high gearing and below- average debt protection metrics, and the company's modest scale of operations and large working capital requirements. These rating weaknesses are partially offset by the extensive experience of NJA's promoters in the lamination cores and transformers industry. Outlook: Stable CRISIL believe that NJA will continue to benefit over the medium term from its promoters' extensive experience in the lamination cores and transformers industry. The outlook may be revised to 'Positive' in case in case NJA's revenues and profitability improve significantly or in case of any large equity infusion leading to improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case NJA witnesses lower-than-expected order flow, or if its financial risk profile, especially its liquidity, weakens, most likely because of larger- than-expected working capital requirements or debt-funded capital expenditure. NJA was incorporated in 2009 via the merger of NJA Industries and Jyoti Trading Company. NJA primarily manufactures distribution transformers (10 kilovolt-amperes). It manufactures lamination cores that are used in the manufacture of transformers. In April 2011, NJA forward integrated into manufacturing of transformers. PISCES EXIM: CRISIL Assigns 'B' Rating to INR95MM Cash Credit ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of Pisces Exim (India) Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 95 CRISIL B/Stable The rating reflects PEIPL's below-average financial risk profile, marked by a modest net worth and high total outside liabilities to tangible net worth (TOL/TNW), high customer concentration and working-capital-intensive operations. These rating weaknesses are partially offset by the extensive experience of the company's promoters in trading business, and healthy order book position. For arriving at the rating, CRISIL has combined the business and financial risk profiles of PEIPL and its group company, Basil Resources Private Limited (BRPL). This is because these entities together referred to as the Pisces group, have significant business and financial linkages between each other and have common management. Outlook: Stable CRISIL believes that PEIPL will continue to benefit over the medium term from its promoters' extensive industry experience and healthy order book position. The outlook may be revised to 'Positive' if PEIPL registers a higher-than-expected growth in revenues, while substantially improving its profitability, thereby leading to improved liquidity. Conversely, the outlook may be revised to 'Negative' if the company's profitability or revenues decline, or its working capital cycle is stretched, resulting in lower-than-expected cash accruals, thereby weakening its financial risk profile. PEIPL was incorporated in 2009, by Mr. Soumit Jena along with his wife Mrs. Preeti Jena. The company is a trader and deals in various products ranging from agro commodities to steel products. PEIPL has its registered office at Andheri, Mumbai. PSA IMPEX: CRISIL Assigns 'B' Rating to INR500MM Bank Loan ---------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of PSA Impex Pvt. Ltd (PSA; part of Shubhkamna Group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 500 CRISIL B/Stable Bank Loan Facility The rating reflects Shubhkamna Group's exposure to risks associated with project implementation, susceptibility to cyclicality inherent in the real estate sector in India, and geographical concentration. These rating weaknesses are partially offset by the experience of Shubhkamna Group's promoters in the real estate industry and the group's moderate financial risk profile marked by moderate gearing and debt protection metrics For arriving at the rating, CRISIL has combined the business and financial risk profiles of Shubhkamna Buildtech Pvt. Ltd and its subsidiaries PSA Impex Pvt. Ltd (PSA) and JSS. This is because all these entities, together referred to as Shubhkamna Group, are in the same line of business and share the same management team. The analytical approach also factors in the holding company-subsidiary relationship between the entities, and the presence of inter- company investments. Outlook: Stable CRISIL believes that Shubhkamna Group will continue to benefit over the medium term from its promoters' experience in the residential real estate industry. The outlook may be revised to 'Positive' if the group registers significant improvement in its business and financial risk profiles, backed by higher-than- expected customer advances and timely implementation of its on- going project leading to healthy cash accruals. The outlook may be revised to 'Negative' if Shubhkamna Group faces time and cost overrun in its on-going projects, or significant pressure on its liquidity in case of delays in receiving customer advances, resulting in pressure on its revenues and profitability. Shubhkamna Group was established in 2006 through the incorporation of SBPL by Mr. Diwakar Sharma. The group is primarily involved in residential real estate development in Noida, Greater Noida, and along the Yamuna Expressway (Uttar Pradesh). SBPL holds 50 per cent stake in JSS and 70 per cent stake in PSA. The Company is currently undertaking projects with name Shubhkamna TecHomes, Shubhkamna City, Shubhkamna Legend and Shubhkamna Shikhar. JSS, incorporated in 2010, is currently developing 'Shubhkamna Monarch', a luxurious residential real estate project situated in Noida Extension. PSA, incorporated in 2010, is currently developing 'Shubhkamna Levia', a residential real estate project situated in Greater Noida. R.K. MOTORS: CRISIL Assigns 'BB+' Ratings to INR65MM Loans ---------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable/CRISIL A4+' ratings to the bank facilities of R.K. Motors. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 24 CRISIL BB+/Stable Bank Loan Facility Bank Guarantee 15 CRISIL A4+ Cash Credit 41 CRISIL BB+/Stable The ratings reflect RKM's established regional presence in automobile dealership, aided by extensive industry experience of its promoters, and longstanding relationship with principals. The rating also reflects RKM's moderate financial risk profile, marked by moderate capital structure and debt protection metrics. These rating strengths are partially offset by RKM's exposure to risks relating to modest scale of operations and intense competition in the automobile dealership business. Outlook: Stable CRISIL believes that RKM will continue to benefit over the medium term from its revenue diversity and established position in the automobile dealership business. The outlook may be revised to 'Positive' if substantial improvement in sales volumes and operating margin or any significant equity infusion by the promoter results in stronger capital structure and debt protection metrics for RKM. Conversely, the outlook may be revised to 'Negative' if decline in market share considerably weakens RKM's revenue and profitability, or if any large, debt-funded capital expenditure programme weakens its capital structure and cash accruals further. Based out of Villupuram, Tamil Nadu, RKM was set up as a partnership firm in 2000 by Mr. K Balamurugan. RKM undertakes dealership for all two wheelers of Hero MotoCorp Ltd (HMCL; rated 'CRISIL AAA/FAAA/Stable/CRISIL A1+') and all tractors of Mahindra and Mahindra Ltd (rated 'CRISIL AA+/Stable/CRISIL A1+'). For 2011-12 (refers to financial year, April 1 to March 31), RKM reported a profit after tax (PAT) of INR 8.13 million on net sales of INR449.2 million, against a PAT of INR 2.81 million on net sales of INR 343.4 million for 2010-11. SANGHI TRADING: CRISIL Assigns 'BB' Rating to INR50MM Cash Credit ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the long-term bank facility of Sanghi Trading Corporation. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL BB/Stable The rating reflects STC's above-average financial risk profile, marked by a comfortable capital structure. The rating also factors in the extensive experience of STC's partners in the steel products trading segment and the firm's established relationships with its customers and suppliers. These rating strengths are partially offset by STC's modest scale of operations in the intensely competitive steel products trading industry. Outlook: Stable CRISIL believes that STC will continue to benefit over the medium term from its established track record in the steel trading business. The outlook may be revised to 'Positive' if the firm records more-than-expected increase in its revenues and profitability, leading to better-than-expected cash accruals, while maintaining its capital structure. Conversely, the outlook may be revised to 'Negative' if STC registers deterioration in its cash accruals, because of lower-than-expected growth in its operating revenues, or decline in its margins, or if it undertakes a significant debt-funded capital expenditure programme, or in case of large capital withdrawals by its partners, resulting in deterioration in its financial risk profile. STC, set up in 1967 and based in Chennai (Tamil Nadu), is a partnership concern promoted by Mr. Suresh Kumar Sanghi and his family. The firm trades in cold-twisted bars, plates, channels, angles, joists, and beams. STC reported a profit after tax (PAT) of INR5.1 million on net sales of INR202.6 million for 2011-12 (refers to financial year, April 1 to March 31), against a PAT of INR4.7 million on net sales of INR150.8 million for 2010-11. SATISH KUMAR: CRISIL Assigns 'BB-' Ratings to INR115MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long- term bank facilities of Satish Kumar & Sons. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 90 CRISIL BB-/Stable Overdraft Facility 25 CRISIL BB-/Stable The rating reflects the extensive experience of SKS's promoters in the coal trading industry and the firm's established relations with its suppliers. These rating strengths are partially offset by SKS's average financial risk profile, mainly because of low profitability and the commodity nature of its business, and susceptibility to volatility in raw material prices. Outlook: Stable CRISIL believes that SKS will continue to benefit over the medium term from the extensive industry experience of its promoters. The outlook may be revised to 'Positive' in case the firm registers more-than-expected increase in its revenues and profitability, resulting in improvement in its debt protection metrics and, as a result, improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if SKS records steep decline in its revenues and profitability, resulting in further weakening of its financial risk profile. SKS was established as a proprietorship firm in 2007 by Mr. Satish Aggarwal. It was reconstituted as a partnership firm on April 1, 2012. It is involved in domestic coal trading; it mainly supplies to brick kiln operators in Ludhiana (Punjab). Its day-to-day operations are managed by its partners Mr. Satish Aggarwal and his wife, Mrs. Rajni Aggarwal. SKS's net profit and net sales are estimated at INR5.01 million and INR825 million respectively for 2012-13 (refers to financial year, April 1 to March 31); the firm reported a net profit of INR4.04 million on net sales of INR713 million for 2011-12. SELECT MOTORS: CRISIL Assigns 'BB-' Ratings to INR90MM Loans ------------------------------------------------------------ CRISIL has assigned its 'CRISIL BB-/Stable' rating to the bank facilities of Select Motors. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 82.5 CRISIL BB-/Stable Proposed Long-Term 7.5 CRISIL BB-/Stable Bank Loan Facility The rating reflects the extensive experience of Select's promoters in the automobile dealership business and the company's established market position in the Warangal and Karimnagar districts of Andhra Pradesh (AP). These rating strengths are partially offset by Select's weak financial risk profile, marked by small net worth, weak total outside liabilities to tangible net worth ratio, modest debt protection metrics, low operating profitability owing to trading nature of business and exposure to risks related to intense competition in the automobile dealership business. Outlook: Stable CRISIL believes that Select will continue to benefit over the medium term from its established regional presence in the auto dealership market. The outlook may be revised to 'Positive' if Select's volumes and operating margin improve substantially or in case of any significant equity infusion by the promoter, resulting in an improvement in its financial risk profile. Conversely, the outlook may be revised to 'Negative' if Select reports a decline in its market share, significantly impacting its revenues and profitability, or if it undertakes any large, debt-funded capital expenditure programme, or in case of significant withdrawals by the promoters, weakening its financial risk profile. Set up in 2005, Select is a Tata Motors Ltd (TML) dealer for passenger cars segment with 9 showrooms (7 showrooms exclusively for Nano car and rest 2 flagship showrooms for full range of TML passage cars in Warangal and Karimnagar) and corresponding workshops in AP. The company is promoted by Mr. M Sreedhar, Mr. M Vijay Kumar Reddy, Mr. N Vishnuvardhan Rao and Mr. A Rama Mohana Rao. UNI STYLE: CRISIL Assigns 'C' Ratings to INR91.5MM Loans -------------------------------------------------------- CRISIL has assigned its 'CRISIL C/CRISIL A4' ratings to the bank facilities of Uni Style Images Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Proposed Long-Term 32.5 CRISIL C Bank Loan Facility Cash Credit 59.0 CRISIL C Letter of Credit 1.0 CRISIL A4 The ratings reflect USI's weak liquidity profile on account of high working capital requirements, exposure to intense market competition, and susceptibility of to changes in fashion trends. These rating weaknesses are partially offset by USI's established brand presence and promoter's extensive experience in the ready- made garment industry. USI was established in 1994 by Mr. Ashwinder Singh and his family members in Delhi. USI is engaged in the business of manufacturing and retailing of ready-made garments in the domestic market under the brand 'USI'. For 2012-13 (refers to financial year, April 1 to March 31), USI reported a net profit of INR1.1 million on estimated sales of INR146.6 million; the company reported a net profit of INR4.6 million on net sales of INR188.3 million for 2011-12. VIJAYA SAI: CRISIL Downgrades Rating on INR50MM Loan to 'D' ----------------------------------------------------------- CRISIL has downgraded its rating on the long-term bank facilities of Vijaya Sai Cotton Corporation to 'CRISIL D' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 50 CRISIL D (Downgraded from 'CRISIL B/Stable') The rating downgrade reflects instances of delay by VSCC in servicing its debt obligations; the delays have been caused by the firm's weak liquidity arising because of its working-capital- intensive operations. The rating also reflects VSCC's small scale of operations in a highly fragmented industry and below-average financial risk profile, marked by small net worth, high gearing, and subdued debt protection metrics. The rating also factors in the vulnerability of the firm's business risk profile and profitability to changes in government policy. These rating weaknesses are partially offset by the extensive industry experience of VSCC's proprietor. VSCC was established in 2009 and is engaged in ginning and trading of cotton. VSCC's proprietor, Mr. P Sai Suresh Kumar, has more than 10 years of experience in the cotton industry. For 2012-13 (refers to financial year, April 1 to March 31), VSCC reported, on a provisional basis, a net profit of INR2.14 million on net sales of INR297.42 million; the firm reported a net profit of INR1.96 million on net sales of INR313.22 million for 2011-12. ================= I N D O N E S I A ================= CIKARANG LISTRINDO: Moody's Changes Outlook to Stable ------------------------------------------------------ Moody's Investors Service has revised the outlook on the ratings of Indonesia's PT Cikarang Listrindo to stable from negative. Moody's has also affirmed Cikarang's Ba2 corporate family rating and senior unsecured bond rating. The bond is issued by Listrindo Capital B.V., and is unconditionally and irrevocably guaranteed by Cikarang Listrindo. Ratings Rationale: "The stable outlook reflects better visibility on the company's capacity expansion program that is currently underway. The coal- fired power project is progressing according to schedule, in terms of equipment procurement and construction works, and has remained within its budget thus far," says Ray Tay, a Moody's Associate Vice President and Analyst. "We expect the 280MW coal-fired power project to maintain its initial capex of $475 million and to commence full operations in late 2016. Furthermore, the business fundamentals of Cikarang remains stable over the past 18 months, reflecting its strong market position, sound operating performance, good electricity demand, robust tariff structure with full cost pass through mechanism and manageable gas supply risk," adds Tay, who is also the Lead Analyst for Cikarang. The progress of the coal-fired power project is in line with the projected timeline set in 2011. The company has completed its land acquisition and the procurement of key equipment, and started its site preparation. The total contract value in relation to equipment procurement and construction placed up to June 2013 represents 44% of the total capex. Moody's notes that execution risks will remain until the full commissioning of the project in late 2016. There is also uncertainty on long-term coal supply contracts, as Cikarang will be able to secure them only closer to the commissioning of the project. Nevertheless, the risk of securing a coal supply is moderate given the coal-fired power project will use sub- bituminous coal which is readily available in Indonesia. However, strong electricity demand from industrial-estate customers partially mitigates the medium-term uncertainty over capacity utilization and future operating cash flow when one of the company's two existing 150MW take-or-pay contracts with PT Perusahaan Listrik Negara (PLN, Baa3 stable) expires in January 2016. In addition, Cikarang has just finalized the renewal of its gas supply contract with PGN, and which lowers its gas supply risk in the near term. It also plans to add another 109MW gas-fired power plant as backup unit for peak demand by 2014 Cikarang's Ba2 ratings are supported by its status as the sole independent power producer supplying electricity to a large and diversified base of industrial-estate customers in Indonesia, its off-take agreements with PLN, as well as the track record of solid demand and the payment record of its customers throughout the economic cycle. The ratings also reflect the company's strong operating performance and liquidity position, its robust tariff structure and its strong management team. On the other hand, the ratings are constrained by the current lack of operational flexibility, given the company's single site and its relatively small capacity, and a moderate degree of uncertainty regarding the extent of demand for the additional capacity to come from its expansion programs, as well as its off- take risk exposure to PLN. Moody's believes that Cikarang has a predictable business, which has some similarities -- on a small scale -- to that of a utility, given its captive industrial-user base. Upward rating pressure will be limited in the near to medium term, given the remaining execution risk associated with the capacity expansion and because the new capacity additions will only commence operations at end-2016. Moody's would consider upgrading the ratings if the company's retained cash flow (RCF)/debt exceeds 25% and/or debt/ EBITDA stays below 2x on a sustainable basis. The rating will be under pressure if: (1) Cikarang suffers financial strain due to unforeseen cost overruns and related delays to its capacity expansion project, or (2) there is a significant deterioration in its operational and financial profiles which will result in a RCF/debt of below 10%-12% and/or debt/EBITDA of more than 4x over an extended period. The principal methodology used in this rating was Power Generation Projects published in December 2012. PT Cikarang Listrindo is the sole IPP supplier of electricity to a wide range of mostly foreign-owned companies in five industrial estates in the Cikarang area outside of Jakarta. It owns and operates a 755MW natural gas-fired combined cycle power station, and distributes directly to companies on the industrial estates. Its capacity expansion plan, upon completion, will increase installed generation capacity to 1,144MW by end-2016. It also has an off-take agreement for part of its power with PT Perusahaan Listrik Negara (PLN, Baa3 stable). Cikarang is owned by three Indonesian families. MERPATI NUSANTARA: Mgmt. Hails Government Decision to Sell Shares ----------------------------------------------------------------- ANTARA News reports that the management of Merpati Nusantara Airlines has hailed the government's decision to sell part of the ailing state airline company`s shares to strategic investors. Merpati corporate secretary Herry Saptanto said Merpati supported the decision to invite strategic investors to strengthen its capital, according to the report. ANTARA relates Mr. Saptanto said the decision was the best thing to do both for Merpati and the Indonesian nation. The news agency notes that the State Enterprises Ministry has many times restructured Merpati by injecting funds to it, reducing the number of its employees, relocating its head office, and restructuring its debts to private creditors through debt-to- equity swap. However, the restructuring programs have not run as expected. "Selling shares to strategic investors means inviting them to strengthen Merpati's capital by buying part of its shares," the report quotes Mr. Saptanto as saying. State Enterprises Minister Dahlan Iskan has given strategic investors until two months to buy Merpati shares, ANTARA notes. Headquartered in Jakarta, Indonesia, PT Merpati Nusantara Indonesia -- http://www.merpati.co.id/-- is a state-owned carrier that services predominantly international routes. ==================== N E W Z E A L A N D ==================== MEDIAWORKS NZ: May Lose Several TV Shows to TVNZ, Prime TV ---------------------------------------------------------- John Drinnan at The New Zealand Herald reports that television New Zealand and Prime TV are fighting to take shows away from MediaWorks channels TV3 and Four while it is in receivership. The Herald says receivers at KordaMentha have refused to comment on what shows -- if any -- it has secured in talks with Hollywood studios. According to the report, MediaWorks has owned rights for shows like Modern Family, The Simpsons and Family Guy for several years, but ownership and programming deals with these and other Fox TV and NBC shows are in limbo. The Herald relates that TV industry sources said receivers at KordaMentha assumed studios were willing to keep MediaWorks strong, but they may have underestimated the willingness of Sky and TVNZ to poach shows, said a source familiar with the stand- off. However, advertising consultant Martin Gillman doubted there would be a big shift of shows between channels, saying advertisers were not concerned about the next three to four months, the report relates. The Herald says MediaWorks receivers at KordaMentha will be hoping that the loss of the soap opera Home and Away is the first and last hit show lost. But it is understood that TVNZ has been aggressive and there is even talk of the state-funded broadcaster creating a third channel on Freeview, if it can pick up the bulk of Fox programming, according to the Herald. 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. * FMA Expects to Wrap Up Probe Into Failed Finance Cos. This Year ----------------------------------------------------------------- interest.co.nz reports that the Financial Markets Authority (FMA) expects to wrap up its ongoing investigations into failed finance companies by the end of the year. Speaking at the FMA's quarterly stakeholder market update in Auckland, the FMA's head of enforcement, Belinda Moffat, said completing ongoing investigations into finance companies has been a priority, according to interest.co.nz. "Announcements will be made on seven of our major finance company investigations over the next two to three months and the remaining investigations will be concluded by the end of the year," the report quotes Mr. Moffat as saying. interest.co.nz notes that in terms of failed finance companies still being probed, the FMA's website lists Allied Nationwide Finance, Equitable Mortgages, LDC Finance, Mutual Finance, OPI Pacific Finance (formerly MFS Pacific Finance), South Canterbury Finance, St Laurence, Strategic Finance (including Strategic Nominees), and Viaduct Capital. Of South Canterbury Finance the FMA website noted its inquiry is into civil proceedings, with it separately supporting Serious Fraud Office criminal proceedings filed in December 2011, the report relates. And in terms of Strategic Finance, the FMA said its investigation concluded in February and it has notified directors to provide them with an opportunity to respond, interest.co.nz relates. In February the FMA said six Strategic Finance directors were likely to have breached the Securities Act. "so far 32 directors of failed finance companies have been convicted as a result of prosecutions pursued by the FMA. And that has related not only to breaches of the Securities Act, but also breaches of the Companies Act and Crimes Act as well," Mr. Moffat, as cited by interest.co.nz, said. "These cases illustrate that we will hold to account financial markets participants who fail to meet the standards that we expect in New Zealand's financial markets." Dozens of finance companies collapsed between the receivership of National Finance 2000 in May 2006 and NZF Money's receivership in July 2011 with billions of dollars of investors' money lost, the report discloses. ==================== S O U T H K O R E A ==================== STX GROUP: Creditors to Infuse KRW3 Tril. Into Shipbuilding Unit ---------------------------------------------------------------- Yonhap News reports that creditors of ailing STX Offshore & Shipbuilding Co. on Tuesday drew up the final rescue plan to salvage the firm from a cash crunch, which will inject KRW3 trillion (US$2.67 billion) into the company, officials said. The news agency relates that main creditor Korea Development Bank (KDB) said that it plans to ask other creditor banks of the shipbuilder for an agreement in which the banks will provide the cash-strapped company with a total of KRW3 trillion until the end of next year. STX Pan Ocean sought court receivership after Korea Development Bank, the main creditor and Pan Ocean's second-biggest shareholder, decided against buying the company from STX Group, Bloomberg News reported. STX Group -- with businesses ranging from shipbuilding to components that go into vessels -- is the largest shareholder of Seoul-based Pan Ocean. The parent has been trying to raise KRW2.5 trillion (US$2.2 billion) by selling stakes in units as a slump in bulk shipping rates caused ship orders to tumble, Bloomberg said. STX Offshore and two other units of the STX Group had voluntarily sought debt rescheduling with their creditors, Bloomberg noted. * SOUTH KOREA: Some Builders Likely to Suffer Losses in Q2 ---------------------------------------------------------- Yonhap News reports that some major builders in South Korea are likely to suffer losses in the second quarter as lower-priced overseas deals they clinched in recent years could continue to cut into their bottom line, industry officials said Tuesday. Samsung Engineering Co., one of South Korea's largest industrial plant builders, has been recently told by its parent Samsung Group to stay conservative in accounting, a practice that requires a thorough verification of any profit and recognizes all probable losses, according to the officials. =============== X X X X X X X X =============== * Moody's Notes Cyclical Peak in Credit Quality of AP Banks ----------------------------------------------------------- Moody's Investors Service says that banks in Asia Pacific -- against the backdrop of generally strong fundamentals -- have likely reached a cyclical peak. Moody's highlights that banks in Asia Pacific have been resilient in the wake of the global financial crisis and enjoy some of the highest ratings of banks globally. The rating agency notes that Asian banking systems have been operating in a favorable operating environment for an extended period, with low interest rates, robust economic growth and strong loan growth. "However, during that period, borrowers' leverage has increased, asset prices have materially appreciated and, in the process, both borrowers and banks may have become more susceptible to asset quality deterioration, especially if the interest rate cycle turns" says Stephen Long, Managing Director for Moody's Financial Institutions Group in Asia Pacific. Moody's says that while it is difficult to exactly predict turning points in banking credit cycles, the increased likelihood of tightening of US monetary policy -- with a higher probability of a tapering of quantitative easing during Moody's outlook period -- is a potential trigger. "In this context, Moody's notes that the exit from loose monetary policies in the developed economies will test Asian banks' asset quality during the next 2-3 years," says Long. There are also other factors more directly emanating from the Asia Pacific region that will influence the extent to which credit conditions could be pressured. Key among them are whether Abenomics in Japan will work as intended, China's economic rebalancing as well as Asian regulators' stance with regards to bank resolution regimes. "We are further mindful that Abenomics will have an important impact on Japanese and Asian banks, but outcomes at this stage are uncertain. At the same time, we recognize that Japan's loose monetary policy compounds the effects, at a late stage of the credit cycle, of quantitative easings by the US and Europe," says Long. "Moreover, exchange rate volatility -- a side-effect of Abenomics -- creates some asset quality challenges for banks in the region, while the behavior of Japanese banks internationally is another key consideration," says Long. "Meanwhile, with Chinese banks, because the Mainland's economy is now rebalancing and its growth is slowing, we are seeing negative pressures on asset quality, profitability and liquidity management. Part of these pressures also comes from concerns over the risks associated with the shadow banking sector and local government financing vehicles," says Long. "The debt related to both sectors is large, despite government attempts to rein it in." "In terms of specifics, Moody's expects the asset quality of Chinese banks to deteriorate, particularly in terms of their lending to export-related industries located in coastal regions," adds Long. "But in our base case sceneario, the banks will avoid a hard landing, and will also have no problems meeting Basel III. And their internal capital generation will be enough to support mid double-digit loan growth." "And with the ASEAN banks, while we expect them to remain resilient by and large, we note that downside risks are increasing, and these growing risks to economic and financial stability are driving diverging outlooks for the region's banking systems," says Long. "In terms of continued supports, ASEAN banks face expanding markets as domestic wealth continues to rise, and they have also been improving their profitability and capital buffers against any weakness in asset quality and liquidity," adds Long. "And finally, another key question is whether Asia Pacific remains unaffected by the global shift towards burden-sharing in bank resolution." Long was speaking at Moody's annual Asian Banking Conference in Singapore held on Tuesday, July 16, which will also be held in Hong Kong on Thursday, July 18. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Washington, D.C., USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2013. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$775 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 215-945-7000 or Nina Novak at 202-241-8200. *** End of Transmission ***