/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/130801.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, August 1, 2013, Vol. 16, No. 151 Headlines A U S T R A L I A ACL BEARING: Business to Close, Axes 136 Jobs BELL GROUP: West Australia Set to Get AUD1 Billion in Deal GLOBAL ELECTROTECH: Electrical Firm Placed in Receivership LM INVESTMENT: Financial Advisers Ahead of Clients in Liquidation C H I N A CHINA GREEN: Merges with China Shianyun SUNAC CHINA: Fitch Affirms 'BB-' Long-Term Issuer Default Rating I N D I A ADI ENTERPRISES: CARE Rates INR10.44cr LT Loan at 'BB+' ANGEL FEEDS: CARE Rates INR8.25cr LT Loan at 'CARE B-' DHARMANANDAN IMPEX: CARE Puts 'B+' Rating to INR2cr LT Loan HARMILAP AGRO: CARE Assigns 'B+' Rating to INR12.5cr LT Loan MANGLA HOISTS: CARE Puts 'BB-' Rating to INR5.26cr Loan N GOPALDAS: CARE Rates INR6cr LT Loan at 'CARE B' RAM KUMAR: CARE Assigns 'BB-' Rating to INR2.23cr Loan SATHYASREE DEVELOPERS: CARE Cuts Rating on INR5.4cr Loan to 'D' SHREE BALAJI: CARE Rates INR11.88cr LT Loan at 'CARE B+' SHRI JALARAM: CARE Reaffirms 'BB+' Rating on INR271.98cr Loan VARANASI AUTO: CARE Assigns 'BB' Rating to INR8.87cr Loan J A P A N ELPIDA MEMORY: Micron Closes Acquisition Deal JLOC XXX: S&P Lowers Rating on Class D Certificates to 'D' * Moody's Confirms Subordinated Debt Ratings for Japanese Banks - - - - - ================= A U S T R A L I A ================= ACL BEARING: Business to Close, Axes 136 Jobs --------------------------------------------- ABC News reports that receivers for the Launceston car parts manufacturer ACL Bearing are closing the struggling business after failing to secure a buyer. It means the remaining workforce of 136 will be out of a job by mid next year, according to ABC News. In 2009, the report recalls, 110 workers lost their jobs when ACL went into receivership. The report notes that the company has continued to operate, but another 35 workers were sacked in 2011 and 20 lost their jobs in July last year. The report relates that receiver Matt Byrnes says there was initial optimism the business would be sold after an exhaustive sales campaign. "Unfortunately despite negotiations with a number of short listed parties, none of those parties were able to put forward an offer for the business as a going concern here in Tasmania. . . . I think certainly the location of the business in Tasmania and the currency, Australian dollar against the US which has obviously been strong was a factor. . . . ACL exports about 80 per cent of its product so we've been fighting the currency battle for the last couple of years," the report quoted Mr. Byrnes as saying. The report says that the troubled company was on the market for three months. Mr. Byrnes said there was no option but to close the business, the report relays. BELL GROUP: West Australia Set to Get AUD1 Billion in Deal ---------------------------------------------------------- Neale Prior and Gary Adshead at The West Australian reports that the State Government is set for a AUD1 billion boost to its coffers with a settlement looming in a massive legal fight over the collapse of Alan Bond's Bell Group. According to the report, the liquidators and the syndicates of 20 banks that stripped Bell of its assets 22 years ago are on the verge of settling a AUD2.7 billion-plus legal dispute with Bell liquidators. The West Australian relates that the parties are hoping to get a deal finalised before they are due to face the High Court in September on a crucial aspect of a case that has so far gone against the banks. Westpac, Commonwealth and National Australia, as well as British giant Lloyds, have already had judgments against them in the WA Supreme Court and Court of Appeal, exposing them to potential payouts exceeding AUD3 billion because of punitive interest rates, the report notes. A legacy of the WA Inc deals under the Labor State governments in the 1980s, the case against the banks is important to WA taxpayers and motorists because the litigation has been mostly funded by the State Government-owned Insurance Commission of WA, The West Australian states. WA motorists had to help ICWA's recovery from 1993 to 1996 through a AUD50 annual charge on third-party insurance premiums known as the WA Inc levy. The insurer stands to collect more than 60 per cent of any winnings in return for bankrolling what was considered to be a high-risk, high-reward case, the report relates. A settlement and payout from Bell Group liquidators could provide ICWA with a one-off profit, possibly more than AUD1 billion, if the final settlement is near AUD2 billion, according to The West Australian. About Bell Group Bell Group Limited, formerly known as Western Australian Worsted and Woollen Mills Limited, was delisted from the Australian Stock Exchange on August 21, 1991, because of liquidation. On July 22, 2003, liquidator Tony Woodings started an action in the WA Supreme Court against a group of 20 banks -- led by Westpac -- in relation to their conduct in taking mortgages over Bell Group assets in January 1990. It was alleged the banks knew or should have known that the company could not pay creditors who were owed more than AU$800 million at the time. GLOBAL ELECTROTECH: Electrical Firm Placed in Receivership ---------------------------------------------------------- Patrick Stafford at SmartCompany reports that Global Electrotech has been placed in receivership, falling victim to intense competition in the resources-rich state, which is forcing more companies to lower profit margins. Global Electrotech was placed in administration last month, then in receivership shortly afterwards, the report relates. Managing director Damien Gardiner told SmartCompany the business lost out on two major jobs -- one worth AUD1.5 million and another AUD2.4 million in revenue. While Mr. Gardiner said one job was affected due to poor management, several have gone under for various reasons relating to industry pressures -- including an intense amount of competition. Kim Strickland of WA Insolvency Solutions was appointed administrator last month, but Mr. Gardiner said the business continues to trade and he is optimistic about its future, SmartCompany adds. Global Electrotech is a multimillion dollar electrical contracting business based in Western Australia. LM INVESTMENT: Financial Advisers Ahead of Clients in Liquidation ----------------------------------------------------------------- Michael West at BusinessDay reports that financial advisers who put their clients into LM Investment Management's since frozen funds stand to collect millions in commissions before their clients see any return. BusinessDay relates that a report from the administrators of the ill-fated mortgage empire shows AUD10 million in claims for financial advisers. It is a cruel irony for the investors themselves, who have lost money in the collapse yet have not been deemed to be creditors, the report says. BusinessDay reported on Monday, the founder of LM, Peter Drake, had taken at least AUD46 million in loans before the group collapsed earlier this year. The loans have not been repaid. Thanks to the Drake loans, escalating management fees before the collapse, and now the feeding frenzy by the administrators and litigation, the prospective returns for investors is diminishing with every week that passes, the report relays. Since the collapse in March, administrators FTI Consulting have charged AUD2.4 million in fees, or AUD130,000 a week, BusinessDay reports. BusinessDay notes that the administrators are seeking to recover funds from Peter Drake. They are also considering action against LM's other directors -- Francene Mulder, Katherine Phillips and Eghard Van Der Hoven, the report adds. "From our investigations to date, there is evidence to indicate the company may have traded whilst insolvent for a period and entered into certain transactions that may be voidable against a liquidator," the report, obtained by BusinessDay, said. New Zealand Herald reported that voluntary administrators have been appointed to LM Investment Management, a beleaguered Australian firm that controlled a frozen mortage fund which New Zealanders had more than NZ$100 million tied up in. LM directors on March 19, 2013, appointed John Park and Ginette Muller of FTI Consulting as voluntary administrators, blaming the move on liquidity problems caused by a smear campaign. LM is the responsible entity of these registered managed investment schemes: -- LM Cash Performance Fund; -- LM First Mortgage Income Fund; -- LM Currency Protected Australian Income Fund; -- LM Institutional Currency Protected Australian Income Fund; -- LM Australian Income; -- LM Australian Structured Products Fund; and -- The Australian Retirement Living Fund. LM also operates the unregistered LM Managed Performance Fund. The Supreme Court of Queensland in April appointed KordaMentha and its affiliate firm Calibre Capital as joint trustees of the AUD350 million Gold Coast-based LM Managed Performance Fund (LMPF). ========= C H I N A ========= CHINA GREEN: Merges with China Shianyun --------------------------------------- China Green Creative, Inc., purchased 100 shares of common stock of China Shianyun Group Corp., Ltd, for $1,354, causing China Shianyun Group Corp., Ltd., to become a wholly owned subsidiary of the Company. Immediately following the acquisition, China Shianyun was merged with and into the Company, effective as of July 26, 2013. As a result of the merger, the Company's corporate name was changed to "China Shianyun Group Corp., Ltd." Prior to the merger, China Shianyun had no liabilities and nominal assets and, as a result of the merger, the separate existence of China Shianyun ceased. The Company is the surviving corporation in the merger and, except for the name change provided for in the Agreement and Plan of Merger, there was no change in the Company's directors, officers, capital structure or business. Pursuant to the name change, the Company will obtain a new OTCBB symbol. A copy of the Agreement and Plan of Merger is available for free at http://is.gd/D6s0ed About China Green China Green Creative, Inc., located in Shenzhen, Guangdong Province, People's Republic of China, is principally engaged in the distribution of consumer goods and electronic products in the PRC. China Green disclosed net income of $635,873 on $6.87 million of revenues for the year ended Dec. 31, 2012, as compared with a net loss of $344,901 on $1.92 million of revenue during the prior year. The Company's balance sheet at March 31, 2013, showed $6.63 million in total assets, $7.26 million in total liabilities and a $629,368 total stockholders' deficiency. Madsen & Associates CPA's, Inc., in Salt Lake City, Utah, issued a "going concern" qualification on the consolidated financial statements for the year ended Dec. 31, 2012. The independent auditors noted that the Company does not have the necessary working capital to service its debt and for its planned activity, which raises substantial doubt about its ability to continue as a going concern. SUNAC CHINA: Fitch Affirms 'BB-' Long-Term Issuer Default Rating ---------------------------------------------------------------- Fitch Ratings has affirmed property developer Sunac China Holdings Limited's (Sunac) Long-Term Issuer Default Rating (IDR) at 'BB-' with a Stable Outlook. The agency has also affirmed the company's senior unsecured rating at 'BB-'. The affirmation reflects falling margins and rising structural subordination, balanced against rapid sales growth and a track record of strong execution. Key Rating Drivers Strong execution of niche strategy: The company has strong branding and execution in its core markets, i.e. mid- to high-end segments, primarily in China's higher tier cities. Its solid execution and marketing strategy result in fast asset turnover, as demonstrated by 1.4x of contracted sales/total debt in 2012, and over 80% year-on-year growth in contracted sales to CNY20.3bn in H113. Fitch expects the outperformance to continue for the rest of 2013. JV facilitates growth: Fitch expects joint ventures (JVs) to continue playing an important role in Sunac's capital structure and land acquisitions in the next 18 months. Around 34% of total gross floor area (GFA) in Sunac's land bank is estimated to be attributable to minority interest. The use of JVs facilitates the company's business expansion, shares the burden of land premiums, and leverages off the strengths of different developers. Higher structural subordination: The JVs, especially Shanghai Sunac Greentown Real Estate Development Ltd, also mean Sunac's access to their cash is subordinated to the obligations of these JVs. To reflect the structural subordination, Fitch includes unconsolidated subsidiaries and treats minority interests as debt in its calculation of Sunac's leverage. This results in a modified net debt/adjusted inventory of 43% at end-2012 compared with the reported 29%. Subdued margins: Despite major improvements in its business scale over the past three years, EBITDA margin showed a downward trend to 22% in 2012 from 40% in 2010, due to rising competition and higher land costs in China. Fitch expects margins to remain similar over the next 12 months until the company sells off old inventory in newly acquired projects. Regulatory risks remain high: Sunac's focus on mid- to high-end segments increases its exposure to regulatory risks compared with mass-market peers, given the government's aim to make housing more affordable. Sunac's CNY17,800 per square meter of average selling price for residential projects in 2012 is higher than peers'. Diversifying funding sources: At end-2012, Sunac's total debt of CNY21.8bn comprised of offshore bonds and onshore bank loans. In addition to USD500m notes issued in 2013, the company raised USD400m in an offshore three-year term loan at a joint venture, Sunac Greentown Investment Holdings Limited, level. These developments allow Sunac to term out maturities and lower funding costs. Rating Sensitivities Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Adverse changes to Sunac's markets and product mix leading to an EBITDA margin below 20% on a sustained basis (2012: over 25% excluding impact of revaluation of acquisitions) -- contracted sales/total debt below 1.2x on a sustained basis -- Modified net debt /adjusted inventory above 50% on a sustained basis -- Substantial growth in Shanghai Sunac Greentown, relative to the company's size Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- EBITDA margin above 30% on a sustained basis -- Modified net debt /adjusted inventory below 35% on a sustained Basis -- Contracted sales/gross debt above 1.5x on a sustained basis ========= I N D I A ========= ADI ENTERPRISES: CARE Rates INR10.44cr LT Loan at 'BB+' ------------------------------------------------------- CARE assigns 'CARE BB+' rating to the bank facilities of Adi Enterprises. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 10.44 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 capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating is constrained on account of the modest scale of operations of Adi Enterprises (AE) in coal trading, its constitution as a partnership firm and susceptibility of its profitability to fluctuations in foreign currency exchange rate on imported coal as well as volatility in coal prices. The rating, however, derives strength from the steady cash flow in the form of lease rental income from Arvind Ltd (Arvind; rated CARE A-/CARE A2+) for leasing out its weaving unit to Arvind. The rating further derives strength from AE's moderate profitability and leverage. A growth in the scale of its coal trading activity, coupled with efficient working capital management, while sustaining its profitability and capital structure would be the key rating sensitivities. Established in October 2006, AE is a partnership firm engaged in the trading of imported steam coal. The firm sells steam coal either in the domestic market or through high seas sales. The firm consists of seven partners, of whom, five partners are family members of Mr. Sukoon Shah (the key partner) and one entity is a Trust (Sabian Trust). AE also has a weaving unit, consisting of 53 Air Jet Looms in Gujarat, which it has leased out to Arvind for a pre-decided lease rental income. As per the provisional financial results for FY13, AE reported a total operating income of INR241.65 crore (FY12: INR198.88 crore) and PAT of INR12.99 crore (FY12: INR7.04 crore). ANGEL FEEDS: CARE Rates INR8.25cr LT Loan at 'CARE B-' ------------------------------------------------------ CARE assigns 'CARE B-' ratings to the bank facilities of Angel Feeds. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.25 CARE B- Assigned The ratings assigned by CARE are based on the capital deployed by the partner and the financial strength of the firm at present. The ratings may undergo change in case of the withdrawal of capital or the unsecured loans brought in by the partner in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Angel Feeds (AGF) is primarily constrained by the limited experience of partners in the poultry feed manufacturing industry, risk relating to implementation and stabilization of green field project, high competition from local players coupled with risk associated with the raw material availability. The ratings are further constrained by the partnership nature of its constitution. The ratings, however, draw comfort from the assured product off take from group firms. Going forward, the firm's ability to achieve the envisaged total operating income and profitability margin, while successful completion of the project without cost and time overrun shall be the key rating sensitivities. Angel Feeds (AGF) is a partnership firm, established in October, 2011 by its partners Mr. Rajvir Singh and his brother Mr. Jasvir Singh. AGF is setting up a unit for the manufacturing of poultry feeds located in Panipat, Haryana. The unit shall have an installed capacity of 60,000 metric tons per annum. The commercial operation is expected to start in August 2013. The group associates are Bharat Hatcheries, Vijay Breeding Farm & Hatcheries and Jyoti Breeding Farm and are into poultry farming and breeding. DHARMANANDAN IMPEX: CARE Puts 'B+' Rating to INR2cr LT Loan ----------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' Ratings to the bank facilities of Dharmanandan Impex Pvt Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 2 CARE B+ Assigned Short-term Bank Facilities 6 CARE A4 Assigned Rating Rationale The ratings of Dharmanandan Impex Pvt Ltd are constrained by its small scale of operations with volatility in trading volume, thin profit margin, which are susceptible to fluctuations in agro commodity prices and foreign currency exchange rates, low capitalization and working capital intensive operations resulting in high leverage. The above constraints far offset the benefits derived from the experience of its promoters in trading operations through its group entity Hiya Overseas Pvt Ltd. The ability of DIPL to increase its scale of operations, improve its profitability and capital structure, while efficiently managing its working capital are the key rating sensitivities. DIPL was established in 2007 by Mr. Vijay Patel and Mr. Arvind Patel for carrying out trading activities in agro commodities such as cloves, pigeon peas, peanuts and various pulses. DIPL is a group company of Hiya Overseas Pvt Ltd [HOPL; rated CARE BB-/CARE A4], which is also engaged in the trading of imported products in the domestic market including Zircon and exports Indianmade products like ceramics tiles, cement, salt, and cotton. As per the audited results of FY13 (refers to the period April 1 to March 31), DIPL reported a total income of INR24.79 crore with a PAT of INR0.33 crore as compared with a total operating income of INR0.04 crore and a PAT of INR0.02 crore in FY12. HARMILAP AGRO: CARE Assigns 'B+' Rating to INR12.5cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE B+' rating to the bank facilities of Harmilap Agro Industries Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 12.50 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Harmilap Agro Industries Private Limited is primarily constrained by its small scale of operations, weak financial risk profile marked by low profitability margins, leveraged capital structure & weak debt service coverage indicators and working capital intensive nature of operations. The rating is further constrained on account of its susceptibility to the fluctuations in raw material prices, and its presence in a fragmented industry. The rating, however, finds support from the experienced promoters and close proximity to the raw material sources. Going forward, the ability of the company to increase its scale of operation while improving its profitability margins, effective working capital management and improvement in its capital structure are the key rating sensitivities. Harmilap Agro Industries Private Limited was incorporated in 2005 as Harmilap Paper Industries Private Limited and was promoted by Mr. Hari Narayan and Mr. Mukesh Kumar. The company is engaged in the milling, processing and trading of rice. The processing facility of HAIPL is located at Kurukshetra in Haryana with an installed capacity for processing of paddy of 15,000 Tonne Per Annum (TPA) as on March 31, 2013. HAIPL is procuring the raw material (paddy) from Haryana, Uttar Pradesh and Punjab and mainly sells to Punjab, Haryana, Uttar Pradesh, Himachal Pradesh and New Delhi. Till 2007, the company was into the manufacturing of paper. Due to the death of one of the promoters, the company has closed its paper manufacturing business and started the processing of paddy in 2007. For FY12 (refers to the period April 1 to March 31), HAIPL achieved a total operating income of INR33.09 crore and PAT of INR0.11 crore. As per the unaudited results for FY 13, HAIPL has achieved a total operating income of INR54 crore. MANGLA HOISTS: CARE Puts 'BB-' Rating to INR5.26cr Loan ------------------------------------------------------- CARE assigns 'CARE BB-/CARE A4' ratings to the bank facilities of Mangla Hoists Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.26 CARE BB- Assigned Long-term/Short-term Bank 3.00 CARE BB-/CARE A4 Facilities Assigned Rating Rationale The ratings assigned to the bank facilities of Mangla Hoists Private Limited are primarily constrained by the small scale of operations, leveraged capital structure, and working capital intensive nature of operations. The ratings are further constrained by MHPL's presence in a highly competitive and fragmented industry and dependence on the capital goods industry. The ratings, however, draw comfort from the experienced promoters and long track record of operations coupled with diversified product portfolio. Going forward, the company's ability to scale up its operations while improving its profitability margins and capital structure shall be the key rating sensitivities. Mangla Hoists Private Limited, a private limited company was incorporated in October 1991. The company has two manufacturing facilities located at Noida and Greater Noida. The company is promoted by Mr. Sudhir Mangla and his wife Sunita Rani Mangla. MHPL is engaged in manufacturing of Electric Overhead Travelling Cranes, Gantry Cranes, Electric Hoists and Geared Trolleys. MHPL is also engaged in trading of similar products manufactured by Hercules Hoists Ltd. The company has achieved a total operating income of INR17.05 crore with PAT of INR0.34 crore in FY12 (refers to the period April 1 to March 31). N GOPALDAS: CARE Rates INR6cr LT Loan at 'CARE B' ------------------------------------------------- CARE assigns 'CARE B' rating to the bank facilities of N Gopaldas Gems & Jewellery Exports Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6 CARE B Assigned Rating Rationale The rating assigned to the bank facilities of N Gopaldas Gems & Jewellery Exports Private Limited (NGGJPL) is constrained by its modest scale of operations, presence in a highly competitive industry, susceptibility to volatility in raw material prices, highly leveraged capital structure and elongated working capital cycle. The rating, however, derives strength from the experienced promoters and increased scale of operations with satisfactory profit margins. The ability of the company to increase its scale of operations with improvement in the capital structure and effective management of the working capital cycle are the key rating sensitivities. N Gopaldas Gems and Jewellery Exports Private Limited (NGGJPL), was incorporated in the year 2001 by Mr. Diljit C Shah, Managing Director along with his two sons Mr. Mihir D Shah and Darshan D Shah. NGGJPL is engaged in the manufacturing of gold, diamonds and silver jewellery at its manufacturing facility located at Trichy and is also specialized in DEF Color (Blue White) and IF (Internally Flawless) purity of Diamonds since 1929. The total revenue constitutes of gold, diamond and silver jewellery at 70%, 25% and 5%, respectively in FY13 (Provisional; refers to the period 01 to March 31). NGGJPL has its own retail showrooms located at Trichy, Chennai and Hyderabad for the sale of its products. During FY13 (as per provisional results), NGGJPL reported a net profit of INR0.51 crore (FY12 -Rs.0.44 crore) on a total operating income of INR 27.19 crore (FY12 - INR21.66 crore). RAM KUMAR: CARE Assigns 'BB-' Rating to INR2.23cr Loan ------------------------------------------------------ CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank facilities of Ram Kumar Narwani. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 2.23 CARE BB- Assigned Long-term/Short-term Bank 3.00 CARE BB-/CARE A4 Facilities Assigned The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The ratings may undergo a change in case of the withdrawal of capital or the unsecured loans brought in by partners in addition to the financial performance and other relevant factors. Rating Rationale The ratings assigned to the bank facilities of Ram Kumar Narwani are primarily constrained on account of its modest scale of operations in the highly competitive and fragmented road construction industry, weak financial risk profile as characterized by leveraged capital structure, moderate profit margins and moderate debt coverage indicators. The ratings are also constrained on account of limited revenue diversity and geographical concentration risk along with vulnerability of profits to fluctuation in raw material prices. The ratings, however, derive the benefits from the long track record of the partners in the road construction industry, moderate order book position and established operations with reputed clientele. The ability of RKN to increase its scale of operations through diversification of order book amidst high competition prevailing in the road construction industry along with improvement in profitability and capital structure are the key rating sensitivities. Bhopal-based RKN commenced its operations as a partnership firm in the year 2002. RKN is promoted by Mr. Ram Kumar Narwani along with his family members. RKN is engaged in construction of roads and is registered class 'A' contractor with Public Work Department of Madhya Pradesh (Class 'A' being the highest on a scale of 'A' to 'E') and secures all the contracts through open bidding process. RKN predominantly undertakes the government contracts and its operations are concentrated in Madhya Pradesh. During FY13, as per the provisional results, RKN reported a total operating income of INR25.16 crore (FY12: INR14.68 crore) and a Profit before Tax of INR0.73 crore (FY12: INR0.43 crore). SATHYASREE DEVELOPERS: CARE Cuts Rating on INR5.4cr Loan to 'D' --------------------------------------------------------------- CARE revises the rating assigned to the bank facilities of Sathyasree Developers Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.40 CARE D Revised from CARE B Rating Rationale The revision in the rating follows the delay in debt servicing by Sathyasree Developers Private Limited due to stressed liquidity position. Sathyasree Developers Private Limited, incorporated in 2007 was promoted by Mr. J Chandrashekhar, Mr. R Durgaram, and Mr. Arun Vijaay Malli. SDPL is engaged in the construction and development of residential real estate projects in Madurai with the promoters being involved in the real estate industry for more than 15 years. SDPL is developing 'Satya Elite', a residential apartment project in Madurai (Tamil Nadu). The project comprises 92 flats, with a total built up area of 1.55 lakh square feet at a total cost of INR50.18 crore. The project started in June 2008, and was initially scheduled to be completed by October 2010. However, the project has been delayed considerably on account of slowdown in real estate demand and was planned to be completed by August 2012. During FY11 (refers to the period April 1 to March 31), SDPL reported a total operating income of INR12.85 crore and a PAT of INR0.47 crore and achieved PAT of INR0.32 crore on total operating income of INR11.63 crore in FY12 (as per provisional results). SHREE BALAJI: CARE Rates INR11.88cr LT Loan at 'CARE B+' -------------------------------------------------------- CARE assigns 'CARE B+' rating to the bank facilities of Shree Balaji Warehouse. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 11.88 CARE B+ Assigned (Term Loan) The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The ratings may undergo change in 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 Shree Balaji Warehouse (SBW) is primarily constrained by the limited experience of the partners in constructing and managing warehouses coupled with implementation risk associated with debt-funded green-field project. The rating is further constrained by the constitution of the entity as a partnership firm. The rating, however, draws comfort from the assured revenue visibility in the medium-long term, favorable government policies and demand prospects for warehousing business. Going forward, the ability of the firm to successfully complete the project within the envisioned time & cost, and timely handover of the warehouse shall be the key rating sensitivities. Shree Balaji Warehouse was constituted in July 2011 as a partnership concern. The partners are Mr. Raminder Singh, Mr. Subhash Chander, Mr. Vijay Kumar and five others (friends). The main objective of setting up SBW was for the construction, management and operation of a warehouse. The firm is setting up a warehouse in Hisar, Haryana with a storage capacity of 52,500 Tonnes per annum (TPA) at the total cost of INR16 crore and the same is expected to be commissioned by the end of June 2013. SHRI JALARAM: CARE Reaffirms 'BB+' Rating on INR271.98cr Loan ------------------------------------------------------------- CARE reaffirms the rating assigned to the bank facilities of Shri Jalaram Rice Industries Private Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 271.98 CARE BB+ Reaffirmed Rating Rationale The rating continues to be constrained by the thin profitability of Shri Jalaram Rice Industries Pvt Ltd due to limited value addition, its high leverage and tight liquidity. The rating is further constrained by its presence in a highly fragmented and working capital intensive rice milling industry as well as susceptibility of its profitability to volatile agro-commodity prices. The rating is, however, underpinned by the vast experience of the promoters along with its established operations and healthy growth in the operating income. The ability of SJRI to improve its scale of operations through better utilisation of the recently added capacity along with an improvement in profitability and capital structure are the key rating sensitivities. SJRI is engaged in the processing and trading of basmati rice. Established as a partnership firm in April 2003, SJRI was converted into a private limited company in September 2006. The main promoters of SJRI are Mr. Jayesh Ganatra and Mr. Bipin Ganatra. SJRI had rice milling capacity of 60 MT per hour as on March 31, 2013. SJRI operates through its two milling units at Nadiad (44 MT/hr capacity) and Bavla (16 MT/hr capacity) near Ahmedabad, Gujarat. As per the audited results for FY13 (refers to the period April 1 to March 31), SJRI has reported a total operating income of INR465.04 crore with a net profit of INR11.74 crore as against a total operating income of INR355.27 crore with a net profit of INR9.90 crore in FY12. VARANASI AUTO: CARE Assigns 'BB' Rating to INR8.87cr Loan ---------------------------------------------------------- CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Varanasi Auto Sales Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 8.87 CARE BB Assigned Short-term Bank Facilities 3.50 CARE A4 Assigned Rating Rationale The ratings are constrained by the financial profile of Varanasi Auto Sales Ltd marked by leveraged capital structure, low net profit margins and relatively higher operating cycle. The ratings further take into account the high level of competition from other dealers and subdued demand outlook for the commercial vehicles in the near term period. However, the ratings derive strength from the promoters' experience and their demonstrated funding support, established track record of VASL in the automobile dealership business and its long standing relationship with Tata Motors Ltd (TML). The ability to consistently scale-up the operations and improvement in the capital structure in the light of the challenging industry scenario remain the key rating sensitivities. Varanasi Auto Sales Limited was incorporated on May 30, 1977 as a private limited company and was later converted into a closely- held public limited company on July 01, 1996. VASL is an authorized dealer of commercial vehicles of Tata Motors Ltd and is engaged in the sale of vehicles, spare parts and servicing of vehicles in Eastern Uttar Pradesh across regions including Varanasi, Ghazipur, Ballia, amongst others. The company derives about 90% of the total revenues from sales of vehicles while the balance is contributed by income from servicing, sale of spare parts & incentives. VASL primarily deals in three segments of commercial vehicles of TML viz trucks, buses and small commercial vehicles (such as Ace, Magic, Winger, Iris) contributing approximately 50%, 20% and 30%, respectively to the revenues from the sale of vehicles. VASL also derives nearly 1-2% of the total revenues from the transport business wherein the company owns a fleet of TML trucks which are given on lease basis to the local transporters. VASL also operates two showrooms with attached workshop viz one at GT Road, Alaipur, Varanasi and the other one at National Highway from Varanasi to Lucknow at Babatpur. VASL reported a PAT of INR0.55 crore on a total income of INR117.02 crore for FY12 (refers to the period April 1 to March 31) as compared with PAT of INR0.25 crore on a total income of INR74.66 crore for FY11. Furthermore, as per provisional results for FY13, VASL reported a PAT of INR0.65 crore on a total income of INR124.86 crore. ========= J A P A N ========= ELPIDA MEMORY: Micron Closes Acquisition Deal --------------------------------------------- Micron Technology, Inc. and Elpida Memory, Inc. trustees announced on July 31 the closing of Micron's acquisition of 100 percent of Elpida's equity, pursuant to a Sponsor Agreement entered into on July 2, 2012 in connection with Elpida's corporate reorganization proceedings conducted under the jurisdiction of the Tokyo District Court. In a related transaction, Micron also announced the completion of its acquisition of a 24 percent share of Rexchip Electronics Corporation from Powerchip Technology Corporation and certain of its affiliates. The transactions will be recorded for accounting purposes as being effective at 11:59 p.m., Tokyo time, on July 31, 2013. Elpida's assets include a 300 millimeter (mm) DRAM fabrication facility located in Hiroshima, Japan; an approximate 65 percent ownership interest in Rexchip, whose assets include a 300mm DRAM fabrication facility located in Taiwan; and a 100 percent ownership interest in Akita Elpida Memory, Inc., whose assets include an assembly and test facility located in Akita, Japan. Together with the Rexchip shares acquired from Powerchip, Micron will control approximately 89 percent of Rexchip's outstanding shares and 100 percent of Rexchip product supply. The manufacturing assets of Elpida and Rexchip together can produce more than 185,000 300mm wafers per month, which represents an approximate 45 percent increase in Micron's current manufacturing capacity. Using its advanced technologies, Elpida has built a strong presence in Mobile DRAM, targeting mobile phones and tablets. Micron is a leader in delivering enterprise DRAM solutions for networking and servers as well as offering a wide product portfolio in NAND flash memory and NOR. Combining the two complementary product portfolios will further strengthen Micron's position in the memory market and enable it to provide customers with an even more complete set of high-quality solutions. "We are pleased to bring together Elpida with Micron to form the industry's leading pure-play memory company. This combination will result in enhanced R&D and manufacturing scale, significant cost and production synergies and a stronger memory product portfolio to provide solutions to our customers," said Micron CEO Mark Durcan. Yukio Sakamoto, CEO, President and co-trustee of Elpida, said, "This transaction is a strong testament to the value of Elpida's technologies, products and people, and it will result in a combined organization that can best serve customers with broader memory solutions, strength and scale." Effective with the closing, Mr. Sakamoto announced his resignation from Elpida. Micron and Elpida announced that Yoshitaka Kinoshita will replace Mr. Sakamoto as the President, Representative Director and Business Trustee of Elpida and become the President of Micron Japan. "I want to personally thank Sakamoto-san for his strong leadership of Elpida and for his efforts in helping bring Elpida and Micron together. I look forward to working with Kinoshita-san as we seek to strengthen our combined teams," said Mr. Durcan. About Micron Micron Technology, Inc. (NASDAQ:MU) -- http://www.micron.com-- is a provider of advanced semiconductor solutions. Through its worldwide operations, Micron manufactures and markets a full range of DRAM, NAND and NOR flash memory, as well as other innovative memory technologies, packaging solutions and semiconductor systems for use in leading-edge computing, consumer, networking, embedded and mobile products. About Elpida Memory Inc. Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. Micron Technology, Inc. on Feb. 28 announced the Tokyo District Court's issuance of an order approving Elpida Memory Inc.'s plan of reorganization. Elpida's plan of reorganization calls for Micron to sponsor Elpida's reorganization under which Elpida will become a wholly owned subsidiary of Micron. The Tokyo District Court's approval follows an Elpida creditor vote, concluded on Feb. 26, in which the creditors voted to approve the reorganization plan. JLOC XXX: S&P Lowers Rating on Class D Certificates to 'D' ---------------------------------------------------------- Standard & Poor's Ratings Services said that it has lowered to 'D (sf)' from 'CCC (sf)' its rating on the class D trust certificates issued in May 2006 under the JLOC XXX Trust Certificates (JLOC XXX) transaction. The servicer completed the collection from one of the transaction's two remaining specified bonds. However, the outstanding principal balance of the specified bond exceeded the amount collected. As a result, the specified bond incurred a principal loss. S&P lowered its rating on class D because it confirmed that the principal on this class was written down on the principal and interest payment date in July 2013. Six specified bonds originally backed this commercial mortgage- backed securities (CMBS) transaction. One of the two specified bonds that were outstanding has incurred a principal loss, and so only one specified bond remains. Morgan Stanley Japan Securities Co. Ltd. (currently, Morgan Stanley MUFG Securities Co. Ltd.) arranged the transaction, and ORIX Asset Management & Loan Services Corp. acts as the servicer. STANDARD & POOR'S 17G-7 DISCLOSURE REPORT SEC Rule 17g-7 requires an NRSRO, for any report accompanying a credit rating relating to an asset-backed security as defined in the Rule, to include a description of the representations, warranties and enforcement mechanisms available to investors and a description of how they differ from the representations, warranties and enforcement mechanisms in issuances of similar securities. The Rule applies to in-scope securities initially rated (including preliminary ratings) on or after Sept. 26, 2011. If applicable, the Standard & Poor's 17g-7 Disclosure Report included in this credit rating report is available at: http://standardandpoorsdisclosure-17g7.com RATING LOWERED JLOC XXX Trust Certificates JPY333.8 billion floating-rate trust certificates due April 2014 Class To From Initial issue amount D D (sf) CCC (sf) JPY35.5 bil. * Moody's Confirms Subordinated Debt Ratings for Japanese Banks --------------------------------------------------------------- Moody's Japan K.K. has confirmed its ratings for the senior and junior subordinated debt issued by Japanese banks and their subsidiaries. The ratings outlook for the subordinated debt is stable. At the same time, all the other ratings and outlooks for these issuers remain unaffected. However, the subordinated debt ratings of the special purpose corporations of Mizuho Financial Group, Inc -- a holding company - - remain under review for downgrade. These entities are Mizuho Financial Group (Cayman) Limited and Mizuho Financial Group (Cayman) 2 Limited. They are not guaranteed by Mizuho Bank and therefore warrant further consideration. In its latest rating action, Moody's has confirmed the subordinated debt ratings of the affected issuers, and thereby retained systemic support. This approach is in contrast to Moody's baseline assumption that subordinated debt will not benefit from systemic support, which has been removed from such ratings in a number of jurisdictions. This confirmation concludes the review for downgrade of the subordinated debt of Japanese banks that was initiated on June 11, 2013. The review followed Moody's publication of an update to its "Global Banks" rating methodology on May 31, 2013. This methodology update was preceded by a request for comment titled "Moody's Proposed Approach for Rating Certain Bank Contingent Capital Securities and Update to Approach for Rating Bank Subordinated Debt", which was published on April 10, 2013. This request for comment closed on May 10, 2013. Ratings Rationale: Moody's decision to confirm the subordinated debt ratings reflects its view that the government of Japan continues to demonstrate a strong ability and willingness to support this creditor class, despite initiatives elsewhere in the world explicitly designed to reduce or eliminate support for subordinated debt holders. This situation in turn reflects the following three key factors. First, there is the presence of a recently updated resolution regime that would facilitate the preferred approach of maintaining banks as going concerns without bail-ins, through the use of government funds injected as equity, thereby protecting all classes of creditors. Second, there is the strong preference of the Japanese system to avoid public bond defaults that would increase the potential for systemic contagion across the banking system and corporates dependent on access to the domestic bond market, a potential occurrence if bail-ins of this type of subordinated debt occurred. In this context, Moody's notes the predominance of domestic pension funds and insurers as investors in such debt. Third, there is the importance of the domestic financial system as a source of funds for JGBs, which could be seriously impacted if contagion occurred. Together, Moody's believes that these three factors represent a highly unusual -- if not unique -- set of circumstances, meriting the retention of current support assumptions for these classes of subordinated debt. Moody's notes that Japan's bank resolution framework is designed in such a way that it is difficult to impose losses on subordinated creditors without triggering an insolvency event that would impact broader classes of debt. In addition, there is a clear track record in Japan of assistance to troubled financial institutions with preemptive capital injections -- under the rules of the country's resolution framework -- for the purposes of avoiding public default. The government had amended the Deposit Insurance Law, a cornerstone of Japan's resolution framework, in June 2013 in order to incorporate the key attributes of effective resolution regimes promulgated by the Financial Stability Board (FSB). The new framework reiterates a clear policy preference for injecting capital on a preemptive basis into solvent financial institutions. Moody's also notes the strong bias within the Japanese domestic market to avoid public bond defaults, which it believes further reinforces the prospect that a bail-in of rated legacy subordinated debt is unlikely to occur. The imposition of a bail-in -- in seeming contradiction of Japan's resolution framework -- would risk creating both a shock to bond market confidence in the banking system and contagion to the Japanese Government Bond (JGB) market, since the banks are heavy buyers of JGBs. This represents a consequence that the government, with the highest ratio of sovereign debt to GDP in the world, is highly incentivized to avoid, and which would likely weigh far more heavily in considerations compared to the relatively small amount of subordinated debt outstanding. Furthermore, as domestic insurance companies and, increasingly, retail investors are the predominant holders of legacy subordinated debt, Moody's believes that the government is unlikely to resort to extra-legal measures, such as distressed exchanges, to impose losses on such traditional buy-and-hold investors. Moody's notes that future Basel III-compliant instruments must include PONV triggers and must be issued at the holding company level, in contrast to legacy subordinated debt which is issued at the operating bank level without such triggers. Japanese banks have not yet issued subordinated debt with PONV clauses, but Moody's expects such debt would be rated differently from existing subordinated debt. Accordingly, the baseline assumption is that Basel III subordinated debt ratings would be positioned at least one notch below adjusted baseline credit assessments (ABCAs) and would be unlikely to benefit from systemic support. As indicated, the subordinated debt ratings of the special purpose corporations owned by Mizuho Financial Group remain under review for downgrade. This latter review will assess whether there is any need to differentiate such debt guaranteed by Mizuho Financial Group from other subordinated debt issued or guaranteed by operating banks, in light of the fact that Basel III-compliant subordinated debt -- including PONV triggers -- will also be issued at the holding company level. What Could Move the Ratings Up/Down: Given Moody's confirmation of the ratings and unchanged systemic support assumptions, there is currently no upward pressure on ratings. Moody's bank deposit ratings (BDRs) and subordinated debt ratings for Japanese banks are closely linked to the ratings of JGBs. Therefore, a JGB downgrade would result in a downgrade of these ratings. A JGB downgrade would further prompt Moody's to reassess support assumptions for the subordinated debt of the affected banks. The principal methodology used in these ratings was Global Banks published in May 2013. List of Affected Ratings: Moody's has confirmed the following ratings: The Bank of Tokyo-Mitsubishi UFJ Ltd. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (domestic currency): A1 BTMU (Curacao) Holdings N.V. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (foreign currency): A1 Mitsubishi UFJ Securities International plc (Lead analyst: Mutsuo Suzuki) - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 Mizuho Bank, Ltd. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (domestic currency): A2 - Senior subordinated shelf registration rating (domestic currency): (P)A2 - Senior subordinated Medium Term Note Program rating (domestic currency): (P)A2 - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 - Junior subordinated shelf registration rating (domestic currency): (P)A3 - Junior subordinated Medium Term Note Program rating (domestic currency): (P)A3 - Junior subordinated Medium Term Note Program rating (foreign currency): (P)A3 Mizuho Finance (Aruba) A.E.C. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 - Junior subordinated Medium Term Note Program rating (foreign currency): (P)A3 Mizuho Finance (Cayman) Limited (Lead analyst: Tetsuya Yamamoto) - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 - Junior subordinated debt rating (foreign currency): A3(hyb) - Junior subordinated Medium Term Note Program rating (foreign currency): (P)A3 Mizuho Finance (Curacao) N.V. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 - Junior subordinated Medium Term Note Program rating (foreign currency): (P)A3 Mizuho Trust and Banking Co., Ltd. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (domestic currency): A2 - Senior subordinated shelf registration rating (domestic currency): (P)A2 - Junior subordinated shelf registration rating (domestic currency): (P)A3 Norinchukin Finance (Cayman) Limited. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (foreign currency): A2 - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 Shinsei Bank, Ltd. (Lead analyst: Natsuko Ishida) - Senior subordinated debt rating (foreign currency): Ba2 - Junior subordinated debt rating (foreign currency): Ba3(hyb) Chiba Bank, Ltd. (Lead analyst: Tetsuya Yamamoto) - Senior subordinated shelf registration rating (domestic currency): (P)A2 - Senior subordinated debt rating (domestic currency): A2 Sumitomo Mitsui Trust Bank, Limited (Lead analyst: Tetsuya Yamamoto) - Senior subordinate debt rating (domestic currency): A2 - Senior subordinate Medium Term Note Program rating (domestic currency): (P)A2 - Junior subordinate debt rating (foreign currency): A3(hyb) - Junior subordinate Medium Term Note Program rating (domestic currency): (P)A3 STB Finance Cayman Ltd. (Lead analyst: Tetsuya Yamamoto) - Senior subordinate debt rating (foreign currency): A2 - Senior subordinate Medium Term Note Program rating (foreign currency): (P)A2 - Junior subordinate debt rating (foreign currency): A3(hyb) - Junior subordinate Medium Term Note Program rating (foreign currency): (P)A3 Sumitomo Mitsui Banking Corporation (Lead analyst: Mutsuo Suzuki) - Senior subordinate Medium Term Note Program rating (domestic currency): (P)A1 - Senior subordinate debt rating (domestic currency): A1 - Senior subordinate debt rating (foreign currency): A1 - Junior subordinate debt rating (foreign currency): A2 (hyb) SMBC International Finance N.V. (Lead analyst: Mutsuo Suzuki) - Senior subordinate Medium Term Note Program rating (Foreign currency): (P)A1 Kansai Urban Banking Corporation (Lead analyst: Mutsuo Suzuki) - Senior subordinate debt rating (domestic currency): Baa1 - Junior subordinate debt rating (domestic currency): Baa2 (hyb) Minato Bank, Ltd (The) (Lead analyst: Mutsuo Suzuki) - Senior subordinate debt rating (domestic currency): A3 Resona Holdings, Inc. (Lead analyst: Natsuko Ishida) - Senior subordinate Medium Term Note Program rating (domestic currency): (P)Baa1 - Junior subordinate Medium Term Note Program rating (domestic currency): (P)Baa2 Resona Bank, Ltd. (Lead analyst: Natsuko Ishida) - Senior subordinate debt rating (domestic currency): A3 - Senior subordinate Medium Term Note Program rating (domestic currency): (P)A3 - Junior subordinate Medium Term Note Program rating (domestic currency): (P)Baa1 - Junior subordinate debt rating (foreign currency): Baa1 (hyb) Saitama Resona Bank, Ltd. (Lead analyst: Natsuko Ishida) - Senior subordinate Medium Term Note Program rating (domestic currency): (P)A3 - Junior subordinate Medium Term Note Program rating (domestic currency): (P)Baa1 The following ratings continues to remain under review for possible downgrade. Mizuho Financial Group (Cayman) Limited (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (foreign currency): A2 - Senior subordinated Medium Term Note Program rating (foreign currency): (P)A2 - Junior subordinated Medium Term Note Program rating (foreign currency): (P)A3 Mizuho Financial Group (Cayman) 2 Limited (Lead analyst: Tetsuya Yamamoto) - Senior subordinated debt rating (foreign currency): A2 ********* 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 ***