/raid1/www/Hosts/bankrupt/TCRAP_Public/130813.mbx
T R O U B L E D C O M P A N Y R E P O R T E R
A S I A P A C I F I C
Tuesday, August 13, 2013, Vol. 16, No. 159
Headlines
A U S T R A L I A
DUNMORE EQUESTRIAN: Council AUD350K Out of Pocket
KENTOR MINERALS: Shareholders Approve Andash Project Sale
STORM FINANCIAL: Court Upholds ASIC Appeal vs. Settlement Deal
* Australian Taxation Office to Concentrate on Small Businesses
C H I N A
LDK SOLAR: Expects to Return to Profit on Domestic Demand
YINGDE GASES: 2013 First Half Results Support Moody's Ba2 CFR
I N D I A
AJANTA PACKAGING: CRISIL Ups Ratings on INR213.5MM Loans to BB-
ANANYA WOOD: CRISIL Upgrades Rating on INR100MM Loan to 'BB+'
CICB CHEMICON: CRISIL Cuts Ratings on INR482.3MM Loans to 'BB-'
GOODWILL ADVANCE: CRISIL Reaffirms 'BB+' Ratings on INR70MM Loans
JAMPANA CONSTRUCTION: CRISIL Ups Ratings on INR250.9MM Loans to B
MULTIDESIGN PACKAGING: CRISIL Puts 'D' Ratings on INR140MM Loans
PRAYAGH NUTRI: CRISIL Ups Ratings on INR630MM Loans to 'BB'
RAVIKUMAR DISTILLERIES: CRISIL Cuts Ratings on INR1.5BB Loan to D
R.N. GUPTA: CRISIL Upgrades Rating on INR493.1MM Loans to 'BB+'
SAI POINT: CRISIL Lowers Ratings on INR135MM Loans to 'B'
VAAS INDUSTRIES: CRISIL Cuts Ratings on INR165MM Loans to 'BB-'
VAIBHAV ENERGY: CRISIL Cuts Ratings on INR103MM Loans to 'D'
J A P A N
INDEX CORP: J Trust Makes Takeover Bid
* Japan's Local Governments Need Robust Growth to Ease Pressure
* S&P Puts Ratings on 2 CDO Transactions on CreditWatch Positive
X X X X X X X X
CATHOLIC CHURCH IN SAMOA: Insolvent; Owes AUD23.4 Million
* BOND PRICING: For the Week July 5 to July 9, 2013
- - - - -
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A U S T R A L I A
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DUNMORE EQUESTRIAN: Council AUD350K Out of Pocket
-------------------------------------------------
Alex Arnold at Illawara Mercury reports that Shellharbour City
Council spent more than AUD350,000 pursuing John Kosseris and
Dunmore Equestrian Centre Pty Ltd and was awarded costs as a
result of the litigation, but the insolvency of the company has
prevented the council seeing any of the money.
Illawara Mercury relates that Shellharbour councillor
Peter Moran, who is the Greens candidate for the seat of Throsby,
said the council should step in and remediate the state
significant wetland.
"It is important the work is done," the report quotes Mr. Moran as
saying. "The council should do the work itself and move to
compulsorily acquire the property and have it sold to repay the
funds," Cr Moran said.
"That is what happens with rates that are owed on deceased
estates," Cr Moran said. "It would be useful if the state
government could purchase part of it but there is not much chance
of that happening," he said.
On August 6, the report recalls, Environment Minister Robyn Parker
announced a AUD40,000 grant for Kiama council's review of the
Minnamurra Estuary Management Plan.
The announcement was made in the shadow of the mansion and not far
from where the damage took place, the report relays.
According to the report, Ms. Parker said while the damage was an
issue for Shellharbour council to pursue, she was willing to talk
with the council about what plans it had in terms of management of
the damaged area.
She said there might be a funding category for an upgrade or
maintenance of the site, the report adds.
KENTOR MINERALS: Shareholders Approve Andash Project Sale
---------------------------------------------------------
Bevis Yeo at Proactiveinvestors reports that Kentor Gold
shareholders have voted in favor of the company selling its Andash
gold-copper project in the Kyrgyz Republic to Robust Resources for
AUD15 million.
Proactiveinvestors relates that proceeds from the sale will be
used to undertake exploration activities and continue the
feasibility study on the Company's Jervois Project in the Northern
Territory.
Jervois has a Resource of 170,000 tonnes of copper, 11.6 million
ounces of silver and 69,000 ounces of gold, the report says.
"Even as it stands Jervois clearly has high potential and the
largely untested mineralisation extends for over a 12 kilometres
strike length," chairman John Barr told shareholders at the
company's Annual General Meeting on August 8, Proactiveinvestors
relays.
Proactiveinvestors adds that the Andash sale also contributes to
the creditors of Kentor Minerals (WA) Pty Ltd under the Deed of
Company Arrangement if accepted.
Kentor has already received a AUD1.5 million deposit from Robust,
the report adds.
Shareholders also approved the company changing its name to KGL
Resources, Proactiveinvestors notes.
In addition, Proactiveinvestors reports, chairman John Barr has
retired as both chairman and director while director Hugh
McKinnon, the company's point man in the Kyrgyz Republic, is not
seeking re-election as a director as he is leaving with the
completion of the sale of Andash.
Director Andrew Daley will take up the role as the company's
chairman, Proactiveinvestors says.
As reported in the Troubled Company Reporter-Asia Pacific on
April 4, 2013, Ferrier Hodgson partners Tim Michael and Darren
Weaver were appointed Voluntary Administrators of the Brisbane-
based subsidiary, Kentor Minerals (WA) Pty Ltd, on March 28, 2013.
The appointment is over Kentor Minerals (WA) Pty Ltd, a 100%-owned
subsidiary of ASX-listed Kentor Gold. Kentor Gold shares went into
a trading halt on March 27, 2013, when arrangements for a pending
finance facility fell through.
The voluntary administration applies to KM (WA) Pty Ltd and does
not apply to Kentor Gold or the subsidiary companies that hold the
Andash or Jervois projects.
STORM FINANCIAL: Court Upholds ASIC Appeal vs. Settlement Deal
--------------------------------------------------------------
The Full Court of the Federal Court of Australia on August 12
upheld the Australian Securities and Investment Commission's
appeal against court approval of the AUD82.5 million settlement
between former Storm Financial investors and Macquarie Bank.
The settlement arose from a class action brought against the bank
by Sydney law firm Levitt Robinson.
Under the settlement, around 315 investors who funded the class
action were to be compensated for approximately 42% of their
losses (as estimated by Levitt Robinson) while around 735
investors were only to get back about 18% of their losses (as
estimated by Levitt Robinson). The difference between the rates of
compensation arose from a funders' premium of AUD28.875 million
(35% of the settlement sum of AUD82.5 million) to be paid to
investors who funded the class action. The funders' premium was in
addition to reimbursement of legal costs.
Justice Logan approved the settlement in May.
ASIC appealed the decision, challenging the court's approval of
the settlement on the basis the differential distribution of the
settlement funds resulted in a lack of fairness to the majority of
the members of the class.
The Full Court decided that the distribution of the settlement sum
was not fair and reasonable to all class (or group) members. It
said that the unfairness arose in two ways: first, the lack of
opportunity afforded to class members who were not clients of
Levitt Robinson to share in the premium proposed to be paid to
those funding the class action; and secondly the inappropriate
calculation of the premium by reference to success fees obtained
by commercial litigation funders.
ASIC Chairman Greg Medcraft said: "We welcome today's decision.
The proposed distribution of the money was irrational and unfair.
"The disparity between the compensation outcomes for the majority
of class action members and the minority of class action members
and how that was disclosed, was at the heart of our concerns."
The Full Court said: "In the circumstances outlined, the
settlement cannot be said to be fair and reasonable to all group
members. A substantial wrong has occurred which the Court is
obliged to correct."
In discussing the funders' premium aspect of the settlement,
Justices Jacobson, Middleton and Gordon said:
"In the present case, not only was there inequality of opportunity
afforded to group members to share in the Funders' Premium but
advantageous terms were offered, after the settlement was reached
at the mediation, and those terms were available only to clients
of Levitt Robinson. If there is an analogy, it is that a small
number of group members (who were also clients of Levitt Robinson)
were able to place a bet on a horse race after the race had run
and knowing the result of the race."
ASIC's dedicated Storm website details the actions undertaken in
recent years: https://storm.asic.gov.au
In September 2012 ASIC agreed to settle legal proceedings against
Commonwealth Bank of Australia in relation to Storm in return for
CBA agreeing to make available up to AUD136 million as
compensation for losses suffered by Storm investors. This amount
was in addition to payments of approximately AUD132 million, and
other benefits, previously provided to Storm investors by CBA.
In May 2013 ASIC secured AUD1.1 million in compensation from
Macquarie Bank and Bank of Queensland for two former Storm
investors, Barry and Deanna Doyle, for their financial loss
arising from their Storm investments.
ASIC has also alleged that Macquarie Bank, along with Bank of
Queensland, was knowingly concerned in the conduct by Storm of an
illegal managed investment scheme. Judgment in this case has been
reserved.
ASIC is also taking action against Storm Financial founders
Emmanuel and Julie Cassimatis.
About Storm Financial
Storm Financial Limited -- http://www.stormfinancial.com.au/--
operated in the Australian wealth management industry. The
company managed over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser. The
funds were invested through different investment products and
structures, including superannuation, non-superannuation managed
funds and life insurance products. Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.
In 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AUD20 million. Storm later closed its business and fired all of
its 115 staff. The closure, the company's administrators said,
was due to the significant reduction in Storm's income resulting
in trading losses being incurred "at a rate which the company
could no longer absorb."
The Commonwealth Bank of Australia, Storm's largest creditor,
lodged a AUD27.09 million debt claim at a first meeting of the
company's creditors on Jan. 20, 2010. The group's remaining
creditors are owed AUD51 million, plus a provision for dividends
of AUD10 million.
In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up. Federal court
Justice John Logan appointed Ivor Worrell and Raj Khatri of
Worrells Solvency and Forensic Accountants as liquidators for the
Company.
* Australian Taxation Office to Concentrate on Small Businesses
---------------------------------------------------------------
dissolve.com.au reports that the Australian Taxation Office has
reportedly exerted more focus on small businesses following the
revelation of statistics that it is behind almost 50 percent of
the 1,365 companies which have been served with liquidation
notices during the past 3 months. According to Prushka, a
collecting agency, this accelerating trend is quite scary, says
dissolve.com.au.
According to dissolve.com.au, media releases revealed that 184
liquidation applications were served on companies and the tax
office was behind 27% of them. In July of this year, the tax
office was behind 51% of the 613 liquidation notices, the same
reports said.
dissolve.com.au relates that Roger Mendelson of Prushaka said that
when a company enters liquidation, its business is done. He added
that they have discovered that being able to work with companies
on default produces a greater recover than liquidating them as
long as the business is still viable and its directors show
genuine goodwill to stay out of the scenario, dissolve.com.au
adds.
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C H I N A
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LDK SOLAR: Expects to Return to Profit on Domestic Demand
---------------------------------------------------------
Bloomberg News reports that LDK Solar Co., the Chinese solar-panel
maker that's reported eight straight quarterly losses, expects to
return to profit this year on domestic demand and as a tariff deal
promises better sales in Europe.
The company, which is scheduled to report second-quarter earnings
on Aug. 14, started generating positive cash flows from selling
wafers used in solar cells in June, President Tong Xingxue said
told Bloomberg in an interview at his Xinyu office.
"This is the first time in two years we witnessed obvious
improvement," Bloomberg quotes Mr. Xingxue as saying. "The market
is steadily rising and our demand has exceeded supply. The basic
barrier to Europe has been overcome" and the domestic market is
taking off," he said.
LDK's debt rose to $2.9 billion as of the end of the first quarter
after a supply surplus drove a 20 percent drop in module prices
last year. Sales are set to improve after European Union and
Chinese negotiators struck an agreement last month to curb EU
imports of solar panels in exchange for exempting the shipments
from punitive tariffs.
"The oversupply is easing in 2013 and some top solar manufacturers
can even make profits in the second half," Lian Rui, an analyst at
NPD Solarbuzz in Beijing, told Bloomberg by phone.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in Hi-
Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar Co disclosed a net loss of $1.05 billion on
$862.88 million of net sales for the year ended Dec. 31, 2012, as
compared with a net loss of $608.95 million on $2.15 billion of
net sales for the year ended Dec. 31, 2011. As of March 31, 2013,
the Company had $4.99 billion in total assets,
$5.29 billion in total liabilities, $356.60 million in redeemable
non-controlling interests and a $660.58 million total deficit.
KPMG, in Hong Kong, China, issued a "going concern" qualification
on the consolidated financial statements for the year ended
Dec. 31, 2012. The independent auditors noted that the Group has
a net working capital deficit and a deficit in total equity as of
Dec. 31, 2012, and is restricted from incurring additional
indebtedness as it has not met a financial covenant ratio as
defined in the indenture governing the RMB-denominated US$-settled
senior notes. These conditions raise substantial doubt about the
Group's ability to continue as a going concern.
YINGDE GASES: 2013 First Half Results Support Moody's Ba2 CFR
-------------------------------------------------------------
Moody's Investors Service says that Yingde Gases Group Company
Limited's 1H 2013 results are in line with Moody's expectations
and support its current Ba2 corporate family and Ba3 senior
unsecured ratings.
The ratings outlook is stable.
"An increase in production capacity and the presence of a largely
take-or-pay contract structure support Yingde Gases' steady
revenues and earnings growth, despite a weak industrial
environment. Given this development, we expect the company's debt
leverage in 2013 to remain consistent with its ratings," says
Jiming Zou, a Moody's Assistant Vice President.
Although the net profit margins of major Chinese steel makers have
dropped to almost zero, production reached a historical high in 1H
2013.
Against this backdrop and given the take-or-pay contract
structures with steel customers, Yingde Gases' on-site facilities
continued to operate at a satisfactory level.
As a result, the company's sales grew by 33.8% year-on-year to
RMB3.2 billion and gross profit rose to RMB1.1 billion in 1H 2013,
up 43% year-on-year.
The weak industrial environment impacted Yingde Gases' merchant
gas sales, which are priced in the retail market. Its average unit
price of gases sold to merchant customers declined by 18% in 1H
2013 versus a year ago. However, merchant sales accounted for only
11% of its total revenues in 1H 2013, thus having a small impact
on overall profits.
Yingde Gases' earnings are expected to increase further in 2H
2013, based on its current expansion plan. Given this factor and
its capital expenditure of RMB2 billion in 2013 -- which will be
funded by both internal cash generation and debt --, adjusted
debt/EBITDA should stay in the range of 4.5-5.0x in 2013. This
debt leverage is reflected in the company's current ratings.
Yingde Gases' liquidity position improved after the company repaid
its syndicated loans with the proceeds from its issuance of USD425
million in senior notes. Cash balance and pledged bank deposits
amounted to almost RMB1.5 billion, more than its short-term debt
of RMB1.2 billion, at the end of June 2013.
The principal methodology used in this rating was the Global
Chemical Industry Methodology published in December 2009.
Yingde Gases Group Company Limited is one of the largest players
in the independent on-site industrial gas market in China. It had
a total of 50 production facilities in operation and another 27
under development as of June 30, 2013.
=========
I N D I A
=========
AJANTA PACKAGING: CRISIL Ups Ratings on INR213.5MM Loans to BB-
---------------------------------------------------------------
CRISIL has upgraded its ratings on the long-term bank facilities
of Ajanta Packaging to 'CRISIL BB-/Stable/CRISIL A4+' from 'CRISIL
B+/Stable/CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 5 CRISIL A4+
Cash Credit 95 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
Rupee Term Loan 118.5 CRISIL BB-/Stable (Upgraded
from 'CRISIL B+/Stable')
The ratings upgrade reflect steady improvement in Ajanta's
business risk profile and a maintained financial risk profile
backed by healthy revenue growth, stable profitability and
improved working capital cycle. The company witnessed substantial
year-on-year revenue growth in 2012-13, while sustaining healthy
operating margins. This along with its improved working capital
cycle, marked by lower GCA days of about 170 days as on March 31,
2013 as against 195 days as on march 31, 2011, has resulted in
moderate gearing levels of about 1.4 times as on March 31, 2013
and healthy debt protection indicators. The company is expected to
continue on its growth path backed by steady orders from marquee
clients resulting in healthy utilization of its recently enhanced
capacities, while steady accruals and absence of debt funded capex
is expected to result in an improvement in gearing levels to close
to 1 time in the near to medium term.
The ratings also reflects the experience of Ajanta's promoter-
partners in the packaging industry, and the firm's above- average
financial risk profile marked by comfortable gearing and adequate
debt protection metrics. These rating strengths are partially
offset by the firm's small scale of operations and customer
concentration in revenues.
Outlook: Stable
CRISIL believes that Ajanta will continue to benefit from its
established relationships with its customers and suppliers and its
improved working capital management over the medium term. The
outlook may be revised to 'Positive' if Ajanta's cash accruals are
higher than expected leading to further improvement in financial
risk profile. Conversely, the outlook may be revised to 'Negative'
if there is a stretch in Ajanta's working capital cycle, a decline
in its profitability, or weakening in its capital structure
because of unexpected, debt-funded capital expenditure.
Ajanta was established in 2000 as a partnership firm by Mr.
Chandan Khanna and Mr. Vikas Khanna. The firm manufactures
pressure-sensitive labels using technologies such as leather
press, flexo, offset, and screen printing. Ajanta's manufacturing
units are in Baddi (Himachal Pradesh) and Daman.
ANANYA WOOD: CRISIL Upgrades Rating on INR100MM Loan to 'BB+'
-------------------------------------------------------------
CRISIL has upgraded its rating on the bank facilities of Ananya
Wood Pvt Ltd (AWPL, part of the Rajgaria group) to 'CRISIL BB+/
Stable' from 'CRISIL BB/ Stable' while reaffirming its short term
rating at 'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 100.00 CRISIL BB+/ Stable (Upgraded
from 'CRISIL BB/ Stable')
Letter of Credit 240.00 CRISIL A4+ (Reaffirmed)
Proposed Short Term 5.00 CRISIL A4+ (Reaffirmed)
Bank Loan Facility
The upgrade reflects the constant improvement in the Rajgaria
group's scale of operations, marked by its turnover increasing to
INR3064 million in 2012-13 (refers to financial year, April 1 to
March 31) from INR2519 million in the previous year and INR1,865
million in 2010-11. The group recorded a cumulative average growth
rate of 31 per cent over the past four years, backed by healthy
demand from its existing customers, along with steady and assured
supply. The rating upgrade also factors in an improvement in the
Rajgaria group's financial risk profile with an increase in cash
accruals, resulting from its increasing scale of operations, and
steady equity infusion of more than INR400 million over the five
years through 2012-13. CRISIL believes that the group will
maintain its healthy financial risk profile over the medium term,
in the absence of any debt-funded capacity expansion plans.
The ratings reflect the Rajgaria group's average financial risk
profile, driven by its moderate net worth; along with its low
total outside liabilities to tangible net worth (TOLTNW) ratio,
and average debt protection metrics. The ratings also factor in
the extensive industry experience of the group's promoters. These
rating strengths are partially offset by the Rajgaria group's low
operating margin, due to its low value added nature of operations;
and supplier concentration risks.
For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of RTPL and Ananya Wood Pvt Ltd (AWPL).
This is because RTPL and AWPL, together known as the Rajgaria
group, have a common management team, and operate in similar lines
of business.
Outlook: Stable
CRISIL believes that the Rajgaria group will continue to benefit
over the medium term, from healthy demand for its products, and
its promoters' extensive industry experience. The outlook may be
revised to 'Positive', if the group generates larger-than-expected
cash accruals, or scales up its operations. Conversely, the
outlook may be revised to 'Negative', if the Rajgaria group
undertakes any large, debt-funded capital expenditure or
acquisition programme(s); or reports a decline in its
profitability.
AWPL operates in the same line of business, and imports timber
from West Africa. The company commenced operations during 2006-07.
RTPL was set up as a partnership firm by the Kolkata-based
Rajgaria family. The firm was reconstituted as a private limited
company in 2000. Following a division in the Rajgaria family in
2004, Mr. Pawan Kumar Rajgaria acquired controlling stake in the
company. RTPL sells sawed timber; it also imports timber logs from
Malaysia and Myanmar.
The Rajgaria group provisionally reported a profit after tax (PAT)
of INR42.6 million on net sales of INR3064 million for 2012-13;
and a PAT of INR20.8 million on net sales of INR2519 million for
2011-12.
CICB CHEMICON: CRISIL Cuts Ratings on INR482.3MM Loans to 'BB-'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of CICB - Chemicon Pvt Ltd to 'CRISIL BB-/Negative' from 'CRISIL
BB/Negative' while reaffirming its short-term rating at 'CRISIL
A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30.00 CRISIL BB-/Negative (Downgraded
from 'CRISIL BB/Negative')
Packing Credit 22.50 CRISIL BB-/Negative (Downgraded
from 'CRISIL BB/Negative')
Letter of Credit 120.00 CRISIL A4+ (Reaffirmed)
Bank Guarantee 80.00 CRISIL A4+ (Reaffirmed)
Proposed Long-Term 429.80 CRISIL BB-/Negative (Downgraded
Bank Loan Facility from 'CRISIL BB/Negative')
The rating downgrade reflects the continuing stretch in CICB-
Chemicon's liquidity, driven by its working-capital-intensive
operations, resulting in fully utilised bank limits over the 12
months through May 2013. CRISIL believes that CICB-Chemicon's
liquidity will be further strained by the large upcoming buyer's
credit obligations of around USD1.2 million falling due in 2013-14
(refers to financial year, April 1 to March 31).
CICB-Chemicon's working-capital-intensive operations along with
its modest cash accruals have led to its weak debt protection
metrics. The company's interest coverage ratio was estimated at
around 1.25 times and its net cash accruals to total debt (NCATD)
ratio was around 5 per cent for 2012-13. CRISIL believes that
CICB-Chemicon's operations will remain working capital intensive
over the medium term, and hence, its ability to scale up its
operations will be largely constrained.
The ratings reflect the benefits that the CICB-Chemicon derives
from its technology tie-ups with global players, including FS-
Elliott Co LLC (USA) and Hangzhou-Chinen Steam Turbine Power Co
Ltd (China), and its track record in the engineering goods
industry. These rating strengths are partially offset by the
company's below-average financial risk profile, marked by average
gearing and weak debt protection metrics, and its small scale and
assembly nature of operations, constraining its operating margin.
Outlook: Negative
CRISIL believes that CICB-Chemicon's liquidity will remain weak
over the medium term, driven by its working-capital-intensive
operations, thereby constraining its order execution capabilities.
The ratings may be downgraded in case of further increase in CICB-
Chemicon's working capital requirements, or if the company
undertakes any large, debt-funded capex programme, thus
constraining its financial risk profile, or in case of the
company's lower-than-expected cash flows adversely affecting its
debt servicing ability. Conversely, the outlook may be revised to
'Stable' if CICB-Chemicon's financial risk profile improves on a
sustained basis, driven by higher-than-expected revenues and
profitability.
CICB-Chemicon, established in 1971, primarily manufactures
engineering goods, including compressors, heat exchangers, and
pressure vessels. The Bengaluru (Karnataka)-based company has
technology tie-ups with global entities such as FS-Elliott Co LLC
(USA) and Hangzou-Chinen Steam Turbine Power Co Ltd (China).
GOODWILL ADVANCE: CRISIL Reaffirms 'BB+' Ratings on INR70MM Loans
-----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Goodwill Advance
Construction Company Pvt Ltd continue to reflect GACPL's
established track record in the infrastructure construction
industry, above-average operating efficiency, and healthy
financial risk profile, marked by strong debt protection metrics
and moderate gearing. These rating strengths are partially offset
by the company's limited revenue diversity and modest scale of
operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 250.0 CRISIL A4+ (Reaffirmed)
Proposed Cash 20.0 CRISIL BB+/Stable (Reaffirmed)
Credit Limit
Proposed Term Loan 37.6 CRISIL BB+/Stable (Reaffirmed)
Term Loan 12.4 CRISIL BB+/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes GACPL will continue to benefit over the medium
term from its established track record in the infrastructure
construction industry and its moderate order book. The outlook may
be revised to 'Positive' if the company further scales up its
operations, thus improving its revenues and margins, while
diversifying its revenue base. Conversely, the outlook may be
revised to 'Negative' if time and cost overruns in GACPL's
projects result in a decline in its revenues or accruals, or if it
undertakes a large, debt-funded capital expenditure programme.
GACPL was originally established as a proprietorship firm in 1991
by Mr. Harbans Lal Sethi. Later, in 2010, the firm was
reconstituted as a private limited company with the current name.
GACPL is a civil infrastructure contractor for the irrigation
sector and for power plants. The company works for the state
governments of Rajasthan, Madhya Pradesh, Chhattisgarh, and
Gujarat.
GACPL reported an estimated profit after tax (PAT) of INR51.4
million on net sales of INR1079 million for 2012-13 (refers to
financial year, April 1 to March 31); it had reported a PAT of
INR18.4 million on net sales of INR612.9 million for 2011-12.
JAMPANA CONSTRUCTION: CRISIL Ups Ratings on INR250.9MM Loans to B
-----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Jampana Construction Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL C',
and has reaffirmed its rating on the company's short-term bank
facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 780.00 CRISIL A4 (Reaffirmed)
Cash Credit 100.00 CRISIL B/Stable (Upgraded
from 'CRISIL C')
Term Loan 120.90 CRISIL B/Stable (Upgraded
from 'CRISIL C')
Proposed Long-Term 30.00 CRISIL B/Stable (Upgraded
Bank Facility from 'CRISIL C')
The rating upgrade reflects improvement in JCPL's liquidity,
driven by improvement in the company's receivables collection.
JCPL's debtor levels, which had deteriorated during the second
quarter of 2012-13 (refers to financial year, April 1 to
March 31), is estimated to have improved to around 51 days as on
March 31, 2013 in line with the past trends. The improvement in
debtor collection along with JCPL's moderate cash accruals have
resulted in improvement in the company's liquidity, as indicated
by its average month-end bank limit utilisation of around 83.09
per cent over the 12 months through April 2013. Moreover, JCPL's
cash accruals are expected to be sufficient to service its term
debt over the medium term.
The ratings continue to reflect JCPL's large working capital
requirements, customer and regional concentration in its revenue
profile, and exposure to risks related to the tender-based nature
of its business and to volatility in raw material prices. These
rating weaknesses are partially offset by the extensive industry
experience of JCPL's promoters, and the company's established
regional market position and healthy order book; the ratings also
factor in JCPL's moderate financial risk profile marked by low
gearing.
Outlook: Stable
CRISIL believes that JCPL will continue to benefit over the medium
term from its strong order book and its promoters' extensive
industry experience. The outlook may be revised to 'Positive' if
the company further improves its working capital management, while
it achieves better-than-expected cash accruals, resulting in
significant improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if JCPL registers
weakening of its financial risk profile, most likely because of
sharp decline in its revenues and profitability, or faces pressure
on its cash accruals and working capital management, or undertakes
a larger-than-expected, debt-funded capital expenditure programme,
including development of its land bank.
JCPL, incorporated in 2003, implements civil construction and
infrastructure development projects, primarily in Karnataka and
Andhra Pradesh.
JCPL's net profit is estimated at INR103.3 million on an operating
income of INR2.33 billion in 2012-13, against a net profit of
INR87.2 million on an operating income of INR1.92 billion for
2011-12.
MULTIDESIGN PACKAGING: CRISIL Puts 'D' Ratings on INR140MM Loans
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
loan facilities of Multidesign Packaging (I) Pvt Ltd. The rating
reflects instances of delay by MDP in servicing its debt; the
delays have been caused by the company's weak liquidity. MDP has
weak liquidity on account of the start-up nature of its
operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 30 CRISIL D
Term Loan 110 CRISIL D
MDP also has a weak financial risk profile, marked by a high
gearing and a small net worth, and is exposed to demand and
operational risks associated with its recently set up project.
However, MDP benefits from its promoter's extensive experience in
the flexible packaging industry.
MDP, incorporated in 2013, is promoted by the Lodha and More
family with ownership of 30% and 70% respectively. It has recently
set up a plant for manufacturing flexible packaging, laminated
films, and polyfilms, primarily for the fast moving consumer goods
and seeds industries at Malegaon in Nashik (Maharashtra).
PRAYAGH NUTRI: CRISIL Ups Ratings on INR630MM Loans to 'BB'
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Prayagh Nutri Products Pvt Ltd to 'CRISIL BB/Stable' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 332.0 CRISIL BB/Stable (Upgraded
from 'CRISIL B+/Stable')
Proposed Long-Term 15.9 CRISIL BB/Stable (Upgraded
Bank Loan Facility from 'CRISIL B+/Stable')
Standby Line of Credit 20.0 CRISIL BB/Stable (Upgraded
from 'CRISIL B+/Stable')
Term Loan 262.1 CRISIL BB/Stable (Upgraded
from 'CRISIL B+/Stable')
The rating upgrade reflects stabilisation of PNPPL's newly set up
second manufacturing unit; the company has set up the new
manufacturing unit to increase its production capacity to 31,000
tonnes per annum (tpa) from 20,000 tpa and to diversify its
product range to include a wide range of confectionery products
such as candies, toffees, centers filled products, chews,
chocolate coated wafers and molded chocolates. The company derives
benefits such as diversified revenue mix, economies of scale, and
improved operating income on account of the setting up of its new
unit. PNPPL has registered a turnover of INR1750 million for 2012-
13 (refers to financial year, April 1 to
March 31) with a year-on-year growth of 24 per cent. Furthermore,
the company's operating margin has also improved to an estimated
11.8 per cent in 2012-13 from 9 per cent in 2011-12 because of its
diversification into new product lines and on account of its
increased margins from contract manufacturing ITC Ltd (rated
'CRISIL AAA/Stable/CRISIL A1+').
The rating also reflects PNPPL's established market position in
the confectionary business, and moderate financial risk profile
marked by a moderate net worth and above-average debt protection
metrics. These rating strengths are partially offset by PNPPL's
working-capital-intensive operations and exposure to intense
competition in the confectionary industry.
For arriving at the rating, CRISIL has treated PNPPL's interest-
free unsecured loans of INR100 million as neither debt nor equity,
as these loans are subordinated to the existing term loan of the
company and cannot be repaid during the currency of term loan.
PNPPL's gearing as on March 31, 2013 is estimated at close to 1.96
times vis-…-vis its gearing of 2.09 times as on March 31, 2012
after treating the unsecured loan as neither debt nor equity
Outlook: Stable
CRISIL believes that PNPPL will maintain its established market
position in the southern and western parts of India over the
medium term. The outlook may be revised to 'Positive' if the
company registers improvement in its credit risk profile primarily
on account of growth in its revenues, while it maintains its
profitability and improves its capital structure. Conversely, the
outlook may be revised to 'Negative' if PNPPL registers
deterioration in its financial risk profile, most likely because
of decline in its margin or if it undertakes a larger-than-
expected, debt-funded capital expenditure programme.
PNPPL, set up in 1999, manufactures confectionery products such as
candies, toffees, centers filled products, chews, chocolate coated
wafers, and molded chocolates. The company also undertakes job
work for ITC Ltd. PNPPL is promoted by Mr. Preetam B Lalwani and
his son, Mr. Vinod P Lalwani.
RAVIKUMAR DISTILLERIES: CRISIL Cuts Ratings on INR1.5BB Loan to D
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Ravikumar Distilleries Ltd to 'CRISIL D' from 'CRISIL B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 225.0 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long-Term 1,275.0 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B+/Stable')
The rating downgrade reflects RKDL's overdrawn cash credit limits
owing to weak liquidity; the weak liquidity was caused by the
company's stretched working capital position.
RKDL has below-average financial risk profile, marked by cash
losses, and is susceptible to adverse regulatory changes in the
distillery industry. These rating weaknesses are partially offset
by RKDL's established market position in the Indian-made foreign
liquor (IMFL) industry, supported by the promoters' extensive
experience and healthy operating capabilities.
Incorporated in 1993 and promoted by Mr. R V Ravikumar, RKDL
manufactures IMFL at its facility at Puducherry.
RKDL on a standalone basis reported a profit after tax (PAT) of
INR13.8 million on operating income of INR567 million for 2011-12
(refers to financial year, April 1 to March 31), against a PAT of
INR9.2 million on operating income of INR481 million for 2010-11.
R.N. GUPTA: CRISIL Upgrades Rating on INR493.1MM Loans to 'BB+'
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
R.N. Gupta and Company Ltd (RNGCL) to 'CRISIL BB+/Positive' from
'CRISIL BB/Stable'; while reaffirming its short term ratings at
'CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Letter of Credit 50.0 CRISIL A4+ (Reaffirmed)
Cash Credit 10.0 CRISIL BB+/Positive (upgraded
from 'CRISIL BB/Stable')
Bank Guarantee 6.2 CRISIL A4+ (Reaffirmed)
Term Loan 483.1 CRISIL BB+/Positive (upgraded
from 'CRISIL BB/Stable')
Packing Credit in 210.0 CRISIL A4+ (Reaffirmed)
Foreign Currency
The rating upgrade reflects CRISIL's belief that RNGCL's liquidity
profile will improve, driven by an increase in its financial
flexibility the company is expected to generate cash accruals
between INR180 million and INR190 million, and has fixed debt
obligations of INR90 million in 2013-14 (refers to financial year,
April 1 to March 31). Moreover, the promoters have thus far
extended sizeable interest-bearing unsecured loans and advances
(INR103 million as on March 31, 2013) to the company, to support
its liquidity. The rating upgrade also factors in the expected
enhancement in RNGCL's financial risk profile in the near to
medium term, supported by its improved gearing and debt protection
metrics, on the back of healthy cash accruals. The company's
business risk profile has significantly improved, marked by a
comfortable increase in its operating revenues at a compounded
annual growth rate (CAGR) of more than 60 percent for the three
years ended 2012-13, coupled with a sustained profitability margin
of more than 11 per cent for the past two years.
The ratings reflect RNGCL's established market position, and the
extensive experience of its promoters in the forgings export
market; along with its improving financial risk profile. These
rating weaknesses are partially offset by the company's high
customer concentration; and susceptibility to regulatory changes
in end-user countries, and to the expected increase in competition
in the non-automobile segment of the forgings industry.
Outlook: Positive
CRISIL believes that RNGCL's financial risk profile will improve
over the medium term, backed by its established position in the
forgings export markets, and long-standing relations with its key
customers and suppliers. The ratings may be upgraded if RNGCL
reports a substantial improvement in its financial risk profile,
most likely through a sizeable growth in its scale of operations
and profitability; and/or if the company diversifies its product
profile with relatively low contribution from forged flanges.
Conversely the outlook may be revised to 'Stable' if RNGCL
generates lesser-than-expected cash flows, or if its capital
structure weakens because of a larger-than-expected, debt-funded
capital expenditure programme.
RNGCL was incorporated in 1948 in Ludhiana (Punjab). It is a
closely held public limited company, which manufactures and
exports forgings for companies operating in the oil and gas
sector. RNGCL primarily manufactures forged flanges, which
comprise around 80 per cent of its revenues, and are mainly used
in oil and gas pipelines, and oil refinery construction projects.
The company also manufactures forgings for automobile parts
(mainly tractors and two wheelers), and the Indian Railways
(albeit in small quantities).
RNGCL has a manufacturing unit, with an installed capacity of
around 40,000 tonnes per annum in Ludhiana (Punjab). The company
is promoted by the Punjab-based Gupta family.
For 2012-13, RNGCL provisionally reported a profit after tax (PAT)
of INR114.0 million on net sales of INR 1990 million, against a
PAT of INR85.1 million on net sales of INR 1769 million for 2011-
12.
SAI POINT: CRISIL Lowers Ratings on INR135MM Loans to 'B'
---------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Sai Point Automobiles Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL
B+/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 105 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Term Loan 30 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The rating downgrade reflects CRISIL's belief that SPAPL's
financial risk profile will remain below-average over the medium
term, with a high total outside liabilities to tangible net worth
(TOLTNW) ratio and modest debt protection metrics. The company's
TOLTNW ratio increased significantly to 7.1 times, as per
provisional figures, as on March 31, 2013, from 5.0 times as on
March 31, 2012, due to debt contracted for starting its new
showroom. Though the gearing is expected to improve in 2013-14
(refers to financial year, April 1 to March 31) due to equity
infusion of around INR30 million, it would remain high at around 5
times over the medium term given the limited accretion to
reserves. SPAPL has undertaken a project involving a capital
expenditure (capex) of INR130 million in Nagpur (Maharashtra) to
construct a building of ground plus four floors. The building will
house its new showroom of 8000 square feet and the remaining space
will be leased out. The project is funded by a term loan of INR40
million and remaining through internal accruals and equity
infusion. The promoters have infused equity of around INR30
million in 2013-14. As a result of the capex and the increase in
working capital requirements with the opening of the new showroom,
SPAPL's TOLTNW ratio is expected to remain high at around 5 times
over the medium term. Also, with the increase in debt funding, its
interest coverage ratio is expected to decline to around 2.5 times
in 2013-14 from around 3.1 times in 2012-13.
SPAPL recorded net sales of INR1.6 billion for 2012-13, driven by
healthy demand for scooters, a segment where its principal, Honda
Motorcyle and Scooter India Pvt Ltd (HMSI), has a leading
competitive edge. The revenue growth in 2013-14 is, however,
expected to remain muted in view of cut-backs in consumer spending
towards asset purchases. SPAPL is expected to record sales of
around INR1.8 billion in 2013-14, buoyed by sales at its new
showroom in Nagpur.
The ratings continue to reflect SPAPL's exposure to intense
competition in the automobile dealership segment, its limited
bargaining power with principals, and its average financial risk
profile, marked by a small net worth and high TOLTNW ratio. These
rating weaknesses are partially offset by the extensive experience
of SPAPL's promoters in the automobile dealership industry.
Outlook: Stable
CRISIL believes that SPAPL will continue to benefit over the
medium term from its promoters' extensive industry experience and
established relationship with HMSI. The outlook may be revised to
'Positive' if SPAPL significantly increases its scale of
operations, while improving its capital structure and debt
protection metrics. Conversely, the outlook may be revised to
'Negative' in case of a slowdown in volume growth, significantly
impacting SPAPL's revenues and profitability, or any further
deterioration of its financial risk profile, most likely due to
larger-than-expected debt-funded capex.
Incorporated in 2002 and promoted by Mr. Dilip Patil, SPAPL is an
authorised dealer of two-wheelers and spare parts of HMSI. Its
day-to-day operations are managed by Mr. Patil. The company has
six showrooms and three service stations in Maharashtra. Its
registered office is in Mumbai.
For 2012-13, SPAPL, on a provisional basis, reported a profit
after tax (PAT) of INR9.4 million on net sales of INR1.6 billion;
it had reported a PAT of INR7.3 million on net sales of INR1.3
billion for 2011-12.
VAAS INDUSTRIES: CRISIL Cuts Ratings on INR165MM Loans to 'BB-'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Vaas Industries Pvt Ltd to 'CRISIL BB-/Stable' from 'CRISIL
BB/Stable' while reaffirming its short-term rating at 'CRISIL
A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long-Term Loan 25.00 CRISIL BB-/Stable (Downgraded
from CRISIL BB/Stable)
Bank Guarantee 80.00 CRISIL A4+ (Reaffirmed)
Cash Credit 140.00 CRISIL BB-/Stable (Downgraded
from CRISIL BB/Stable)
The downgrade reflects CRISIL's belief that VIPL's financial risk
profile will be under pressure over the medium term because of its
weak cash accruals and higher reliance on debt to fund working-
capital requirements. The weak cash accruals are driven by the
decline in demand for the company's products in the domestic
market and its constrained profitability due to intense industry
competition.
The ratings reflect extensive experience of VIPL's promoters in
the valve industry. This rating strength is partially offset by
VIPL's below-average financial risk profile marked by weak debt
protection metrics and high gearing, the susceptibility of VIPL's
operating margin to volatility in raw material prices and
relatively modest scale of operations in an intensely fragmented
industry.
Outlook: Stable
CRISIL believes that VIPL will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company reports
significantly higher-than-expected cash accruals along with
improvement in working capital management leading to improvement
in its financial risk profile. Conversely, the outlook may be
revised to 'Negative' if VIPL's financial risk profile weakens
further, most likely because of lower-than-expected cash accruals
or larger-than-expected, debt-funded capital expenditure.
Incorporated in 1987, VIPL, based in Chennai (Tamil Nadu), is
engaged in design and assembly of knife gate valves.
VAIBHAV ENERGY: CRISIL Cuts Ratings on INR103MM Loans to 'D'
------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of Vaibhav
Energy Saving Equipments Private Limited (VESEPL; part of the
Vaibhav group) to 'CRISIL D' from 'CRISIL B/ Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 15 CRISIL D (Downgraded from
'CRISIL B/Stable')
Proposed Long-Term 15 CRISIL D (Downgraded from
Bank Loan Facility 'CRISIL B/Stable')
Term Loan 73 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects delays by Vaibhav group in servicing its
debt obligations; the delays have been caused because of
insufficient cash accruals to service debt obligations on account
of cancellation and postponement of major orders by the group's
customers.
The rating also reflects the group's modest scale of operations,
high customer concentration in revenue profile, and below-average
financial risk profile, marked by high gearing and subdued debt
protection metrics. These rating weaknesses are partially offset
by the extensive experience of the Vaibhav group's promoter in the
electrical equipment industry.
For arriving at the rating, CRISIL has combined the business and
financial risk profiles of VESEPL and Vaibhav Engineers Pvt Ltd
(VEPL), collectively referred to as the Vaibhav group. The
consolidated approach is because the two entities are in the same
line of business, under a common management, and have significant
operational synergies between them.
The Vaibhav group's promoter, Mr. Jagdish Kulkarni, started VEPL
in 2002 which is engaged in manufacturing low-voltage and medium-
voltage electrical panels. Mr. Kulkarni has an experience of over
two decades in this field. Subsequently, in 2010, he took over
Anco Insulators Pvt Ltd, which manufactured insulators, for
setting up VESEPL. VESEPL is engaged in manufacturing of energy
saving equipments/power factor correction equipments, medium
voltage panels, and compact sub-stations. Both the companies have
their registered offices in Nasik (Maharashtra).
The Vaibhav group reported a net loss of INR19.3 million
(provisional figures) on net sales of INR45.4 million for 2012-13
(refers to financial year, April 1 to March 31), as against a
profit after tax (PAT) of INR2 million on net sales of INR98.2
million for 2011-12.
=========
J A P A N
=========
INDEX CORP: J Trust Makes Takeover Bid
--------------------------------------
Monami Yui and Takako Taniguchi at Bloomberg News report that
J Trust Co., the Japanese financial services firm 5 percent owned
by Goldman Sachs Group Inc., aims to use cash raised through a
record rights offering to fund takeover bids, including bankrupt
game maker Index (TPX) Corp.
J Trust made a preliminary offer for the software developer, which
specializes in mobile gaming and applications, as part of a
client-boosting strategy, Chief Executive Officer Nobuyoshi
Fujisawa, 43, said in an interview, Bloomberg relates. Tokyo-based
J Trust can spend as much as JPY130 billion ($1.3 billion) in cash
on buyouts without seeking external financing, he said.
According to the report, two people familiar with the matter said
Index has drawn interest from about 20 potential bidders including
Sega Sammy Holdings Inc. and aims to reach a sales agreement by
the end of the month. J Trust last month raised JPY97.7 billion
in Japan's biggest-ever rights offer, the report notes.
"It's a good idea to buy companies that do communication and
application businesses for smartphones and tap their client bases
to market our financial services," Mr. Fujisawa said on Aug. 5,
citing the successes of online retailer Rakuten Inc. and Yahoo
Japan Corp. They "started as providers of Internet services and
grew bigger by attracting existing customers into their financial
businesses," Bloomberg relates.
Offers for Index in the first-round of bidding reached as much as
JPY20 billion, one of the people told Bloomberg.
As reported in the Troubled Company Reporter-Asia Pacific on
July 3, 2013, cubed3.com said that Index Corporation, the parent
company behind developer Atlus, has filed for bankruptcy in Japan
with investigations of fraud.
The company, which took the reins from Atlus in 2010, have begun
"civil rehabilitation procedures" with a JPY2.45 billion in debt
and lower than expected figures overseas, cubed3.com related.
Japan-based Index Corporation is engaged in mobile contents
business. The company makes software for smartphones and Nintendo
Co.'s 3-D handheld players.
* Japan's Local Governments Need Robust Growth to Ease Pressure
---------------------------------------------------------------
Moody's says that strong economic growth -- if it is achieved
under the country's new policies -- would help alleviate the
financial pressures on Japan's regional and local governments
(RLGs).
The debt burdens of Japan's RLGs are amongst the highest of local
governments globally, and success in stimulating growth would
therefore translate into increased own-source revenues and central
government transfers, alleviating pressure on local government
budgets.
On the other hand, in the absence of growth, the RLGs' finances
would remain strained under their existing heavy debt burdens.
Moody's conclusions were contained in a new report, titled "Return
to Growth Would Benefit Japan's Heavily Indebted Regional and
Local Governments". The report is part of a series examining the
impact of "Abenomics".
With the main revenue sources for Japan's prefectures coming from
corporate and personal income taxes, higher growth rates would --
as indicated -- ease pressures on these RLGs' financial
performance.
Currency weakness, increased bank lending and improving
productivity would also be conducive to growth, enhancing RLGs
revenue generation capacity.
In contrast, if growth remains elusive, a third decade of economic
stagnation would leave the finances of local governments strained.
Revenues that the RLGs generate themselves have been declining
since the global financial crisis, and would continue their
downward slide.
The report notes that the recent reliance on the issuance of
government-supported rinzai-sai debt along with other borrowing
has led to RLG debt burdens rising to a high 41% of GDP.
Meanwhile, the need to increase welfare, health, and nursing
services will continue as the population ages, further reducing
the RLGs' financial flexibility.
* S&P Puts Ratings on 2 CDO Transactions on CreditWatch Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it has placed its
ratings on two Japanese synthetic collateralized debt obligation
(CDO) transactions on CreditWatch with positive implications.
The CreditWatch positive placements reflect the tranches'
synthetic rated overcollateralization (SROC) levels, which
exceeded 100% with sufficient SROC cushions at higher ratings than
the current ratings as of July 31, 2013.
S&P intends to review these tranches by the end of this month.
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 Reports
included in this credit rating report are available at:
http://standardandpoorsdisclosure-17g7.com
RATINGS PLACED ON CREDITWATCH POSITIVE
Corsair (Jersey) No. 2 Ltd.
Fixed rate credit-linked loan series 58
To From Amount
B+ (sf)/Watch Pos B+ (sf) JPY3.0 bil.
Signum Vanguard Ltd.
Class A secured floating rate credit-linked loan series 2005-06
To From Amount
B+pNRi (sf)/Watch Pos B+pNRi (sf) JPY3.0 bil.
===============
X X X X X X X X
===============
CATHOLIC CHURCH IN SAMOA: Insolvent; Owes AUD23.4 Million
---------------------------------------------------------
Radio Australia reports that the Catholic Church in Samoa has been
audited and it's been found to be AUD23.4 million in debt.
According to Radio Australia, an auditor's report said the Church
is not only in debt, it is insolvent and can no longer meet its
debt, while staff have not been paid in several months
Sophie Budvietas, Chief Reporter from the Samoa Observer, said
it's unclear how the Church got into so much debt, Radio Australia
relates.
* BOND PRICING: For the Week July 5 to July 9, 2013
---------------------------------------------------
Issuer Coupon Maturity Currency Price
------ ------ -------- -------- -----
AUSTRALIA
---------
COMMONWEALTH BANK 1.50 04/19/22 73.61 AUD
EXPORT FINANCE & 0.50 06/15/20 73.45 NZD
GRIFFIN COAL MINI 9.50 12/01/16 39.00 USD
MIDWEST VANADIUM 11.50 02/15/18 71.18 USD
MIDWEST VANADIUM 11.50 02/15/18 71.50 USD
MIRABELA NICKEL L 8.75 04/15/18 69.00 USD
MIRABELA NICKEL L 8.75 04/15/18 67.13 USD
NEW SOUTH WALES T 0.50 12/16/22 69.37 AUD
NEW SOUTH WALES T 0.50 10/07/22 69.17 AUD
NEW SOUTH WALES T 0.50 09/14/22 69.39 AUD
NEW SOUTH WALES T 0.50 11/18/22 68.74 AUD
NEW SOUTH WALES T 0.50 03/30/23 68.37 AUD
NEW SOUTH WALES T 0.50 10/28/22 68.95 AUD
NEW SOUTH WALES T 0.50 02/02/23 68.91 AUD
TREASURY CORP OF 0.50 11/12/30 47.73 AUD
TREASURY CORP OF 0.50 08/25/22 70.60 AUD
TREASURY CORP OF 0.50 03/03/23 69.22 AUD
CHINA
-----
CHINA GOVERNMENT 1.64 12/15/33 67.31 CNY
INDIA
-----
DAVOMAS INTERNATI 11.00 12/08/14 25.13 USD
DAVOMAS INTERNATI 11.00 12/08/14 25.13 USD
ENERCOAL RESOURCE 9.25 08/05/14 50.00 USD
3I INFOTECH LTD 5.00 04/26/17 27.10 USD
CORE EDUCATION & 7.00 05/07/15 44.84 USD
COROMANDEL INTERN 9.00 07/23/16 14.67 INR
DR REDDY'S LABORA 9.25 03/24/14 4.94 INR
GTL INFRASTRUCTUR 2.53 11/09/17 40.88 USD
INDIA GOVERNMENT 5.97 09/25/25 74.63 INR
INDIA GOVERNMENT 0.26 01/25/35 18.86 INR
JAIPRAKASH ASSOCI 5.75 09/08/17 74.20 USD
JCT LTD 2.50 04/08/11 20.00 USD
MASCON GLOBAL LTD 2.00 12/28/12 10.00 USD
PRAKASH INDUSTRIE 5.25 04/30/15 57.40 USD
PRAKASH INDUSTRIE 5.63 10/17/14 58.13 USD
PYRAMID SAIMIRA T 1.75 07/04/12 1.00 USD
REI AGRO LTD 5.50 11/13/14 70.06 USD
REI AGRO LTD 5.50 11/13/14 70.06 USD
SHIV-VANI OIL & G 5.00 08/17/15 28.60 USD
SUZLON ENERGY LTD 5.00 04/13/16 48.38 USD
SUZLON ENERGY LTD 7.50 10/11/12 65.00 USD
INDONESIA
---------
BLD INVESTMENTS P 8.63 03/23/15 62.00 USD
BUMI CAPITAL PTE 12.00 11/10/16 57.00 USD
BUMI CAPITAL PTE 12.00 11/10/16 55.55 USD
BUMI INVESTMENT P 10.75 10/06/17 57.25 USD
BUMI INVESTMENT P 10.75 10/06/17 54.73 USD
INDO INFRASTRUCTU 2.00 07/30/10 1.88 USD
JAPAN
-----
AVANSTRATE INC 3.02 11/05/15 35.73 JPY
ELPIDA MEMORY INC 0.50 10/26/15 11.63 JPY
ELPIDA MEMORY INC 0.70 08/01/16 9.88 JPY
ELPIDA MEMORY INC 2.10 11/29/12 16.38 JPY
ELPIDA MEMORY INC 2.03 03/22/12 11.00 JPY
ELPIDA MEMORY INC 2.29 12/07/12 10.75 JPY
JAPAN EXPRESSWAY 0.50 03/18/39 68.37 JPY
JAPAN EXPRESSWAY 0.50 09/17/38 68.96 JPY
TOKYO ELECTRIC PO 2.37 05/28/40 71.88 JPY
MALAYSIA
--------
AMAN SUKUK 4.25 03/08/2028 MYR 4.16
PHILIPPINES
-----------
BAYAN TELECOMMUN 13.50 07/15/2006 USD 22.75
BAYAN TELECOMMUN 13.50 07/15/2006 USD 22.75
SOUTH KOREA
-----------
CHEJU REGIONAL DE 3.00 12/29/34 65.16 KRW
EXPORT-IMPORT BAN 0.50 11/21/17 63.07 BRL
EXPORT-IMPORT BAN 0.50 01/25/17 70.96 TRY
EXPORT-IMPORT BAN 0.50 12/22/17 61.82 BRL
EXPORT-IMPORT BAN 0.50 10/23/17 65.61 TRY
EXPORT-IMPORT BAN 0.50 11/28/16 68.33 BRL
EXPORT-IMPORT BAN 0.50 09/28/16 70.05 BRL
EXPORT-IMPORT BAN 0.50 08/10/16 71.22 BRL
EXPORT-IMPORT BAN 0.50 12/22/17 64.31 TRY
EXPORT-IMPORT BAN 0.50 12/22/16 69.01 BRL
EXPORT-IMPORT BAN 0.50 10/27/16 69.45 BRL
LG ELECTRONICS IN 3.68 05/22/23 12.67 KRW
NONGHYUP BANK 4.06 05/28/22 32.11 KRW
OSUNG LST CO LTD 4.00 07/07/16 28.75 USD
SRI LANKA
---------
SRI LANKA GOVERNM 9.00 06/01/43 72.43 LKR
SRI LANKA GOVERNM 5.35 03/01/26 57.07 LKR
SRI LANKA GOVERNM 7.00 10/01/23 72.41 LKR
SRI LANKA GOVERNM 6.20 08/01/20 74.71 LKR
SRI LANKA GOVERNM 8.00 01/01/32 70.28 LKR
THAILAND
--------
G STEEL PCL 3.00 10/04/15 11.38 USD
MDX PCL 4.75 09/17/03 16.13 USD
*********
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 ***