/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/140926.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 Friday, September 26, 2014, Vol. 17, No. 191 Headlines A U S T R A L I A DESIGNER VANS: Placed Into Liquidation EGE FOODS: Vincents Chartered Appointed as Administrators PETRA CIVIL: In Administration; First Meeting Set October 3 POSTCODE LYGON: Placed in Administration VAN EYK: ASIC Raids Firm's Offices Following Administration C H I N A EVERGRANDE REAL: Fitch Lowers IDR to 'BB-'; Outlook Negative HONGHUA GROUP: Fitch Assigns 'BB' Rating to USD200MM Sr. Notes SINOSTEEL CORP: No Default on Loan, ICBC Says I N D I A ASHMITA PAPERS: CRISIL Suspends D Rating on IRN280MM Term Loan BIG SAM: CRISIL Suspends B Rating on INR60MM Cash Credit CHAITANYA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR30MM Loan CLIFTON EXPORT: CRISIL Suspends B Rating on INR38.4MM Corp. Loan D M FABRICS: CRISIL Suspends B+ Rating on INR70MM Cash Credit EKA CHAKRA: CRISIL Suspends B+ Rating on INR40MM Cash Credit GCX LIMITED: Moody's Assigns B2 CFR & Rates $350MM Notes 'B2' GOLD STAR: CRISIL Suspends B+ Rating on INR55MM Cash Credit GOPALAKRISHNA TEXTILE: CRISIL Puts D Rating on INR97.5M Cash Loan KIRTI STAMPINGS: CARE Assigns B+ Rating to INR3.36cr Bank Loan LAHARI HOLIDAY: CRISIL Suspends D Rating on INR78MM Term Loan MAHAVIR ECO: CRISIL Assigns B+ Rating to INR147.5MM Term Loan MANASA RICE: CRISIL Suspends B+ Rating on INR46MM Cash Credit NAGARJUNA FERTILISERS: CARE Ups INR1,481.5cr Loan Rating From C PIONEER EMBROIDERIES: CARE Reaffirms D Rating on INR82.18cr Loan PONDICHERRY TEXTILE: CRISIL Suspends D Rating on INR111.5MM Loan REGENCY EXPORTS: CRISIL Suspends B Rating on INR55MM Bank Loan ROYAL MARWAR: CARE Assigns B+ Rating to INR40.95cr Bank Loan SRI KRISHNA: CRISIL Assigns 'D' Rating to INR98.7MM Term Loan SRI RATNA: CRISIL Reaffirms B+ Rating on INR70MM Cash Credit STALLION ENTERPRISE: CARE Assigns B+ Rating to INR2.5cr Bank Loan STANDARD SURFACTANTS: CRISIL Suspends B+ INR80M Cash Loan Rating SVARN TEX: CRISIL Suspends D Rating on INR144.1MM Term Loan SWISS PHARMA: CARE Assigns B+ Rating to INR14.15cr Bank Loan SYMCOM IMPEX: CRISIL Upgrades Rating on INR150M Cash Credit to B+ UNITRACK LOGISTICS: CRISIL Suspends D Rating on INR33MM Term Loan USHA SPINNERS: CRISIL Reaffirms B+ Rating on INR100MM Cash Credit VIDYAA VIKAS: CRISIL Suspends D Rating on INR188.2MM Term Loan VVS CONCAST: CRISIL Suspends B+ Rating on INR80MM Cash Credit I N D O N E S I A BAKRIE TELECOM: Discloses Proposal to Restructure Bonds Due 2015 BAKRIE TELECOM: Investors Sue Over $380MM Bond Default BANK MUTIARA: Informal Talks With J Trust Over Stake Buy Starts N E W Z E A L A N D CAPITAL + MERCHANT: Case vs Former Trustee, Stace Hammond Delayed S O U T H K O R E A DONGBU GROUP: Creditors Seek to Write Down Dongbu Steel Capital * SOUTH KOREA: Ailing Shipbuilders Call For State Support T A I W A N WINTEK CORP: Gets Loan Extensions; Seeks New Capital Injection X X X X X X X X * Large Companies with Insolvent Balance Sheets - - - - - ================= A U S T R A L I A ================= DESIGNER VANS: Placed Into Liquidation -------------------------------------- Cliff Sanderson at Dissolve.com.au reports that Designer Vans Pty Ltd has collapsed into liquidation. The business has stopped trading following the liquidation. According to the report, the Wangaratta business began constructing family-style caravans before it moved into wheelchair-access and off-road caravans. The business employed up to 6 people during its launch in 2007. Liquidator Chris Chamberlain is conducting an investigation on the collapse of the business, Dissolve.com.au notes. EGE FOODS: Vincents Chartered Appointed as Administrators --------------------------------------------------------- Gavin Moss and Nick Combis of Vincents Chartered Accountants were appointed as administrators of EGE Foods Australia Pty Ltd on Sept. 22, 2014. A first meeting of the creditors of the Company will be held at The Boardroom of Servcorp, Level 56, 19-29 Martin Place, in Sydney, on Oct. 2, 2014, at 3:00 p.m. PETRA CIVIL: In Administration; First Meeting Set October 3 ----------------------------------------------------------- Frank Lo Pilato of RSM Bird Cameron Partners was appointed as administrator of Petra Civil Pty Ltd on Sept. 22, 2014. A first meeting of the creditors of the Company will be held at RSM Bird Cameron Partners, Level 1, 103 Northbourne Avenue, in Turner, on Oct. 3, 2014, at 11:00 a.m. POSTCODE LYGON: Placed in Administration ---------------------------------------- Peter Goodin -- pgoodin@brookebird.com.au -- and Robyn Erskine -- rerskine@brookebird.com.au -- of Brooke Bird were appointed as administrators of Postcode Lygon Developments Pty Ltd on Sept. 23, 2014. A first meeting of the creditors of the Company will be held at Brooke Bird, 471 Riversdale Road, in Hawthorn, on Oct. 3, 2014, at 3:30 p.m. VAN EYK: ASIC Raids Firm's Offices Following Administration ----------------------------------------------------------- SmartCompany, citing Fairfax, reports that the Australian Securities and Investments Commission raided the Sydney office of collapsed funds management business, van Eyk. SmartCompany says the two raids come just days after van Eyk entered voluntary administration as a result of the "recent and sudden closure" of its Blueprint Series of managed funds. According to SmartCompany, Fairfax said the 25-year-old business is also facing scrutiny from New Zealand's corporate regulator, the Financial Markets Authority. Administrators Moore Stephens said last week the voluntary administration process will allow it to quarantine and preserve van Eyk's investment research, consulting and financial advisory arms while options for capital restructuring are investigated, adds SmartCompany. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 17, 2014, SmartCompany said that an Australian investment research, advice and funds management company founded in 1989 has collapsed. van Eyk Research called in voluntary administrator Trent Hancock of Moore Stephens Sydney Corporate Recovery Group on September 15. According to the report, van Eyk Research has four business arms -- investment research through van Eyk Research, consulting through van Eyk Consulting, financial advisory through van Eyk Advice and funds management through van Eyk Blueprint Series -- and the administrators said in a statement it entered administration because of the "recent and sudden closure of the Blueprint Series of managed funds". ========= C H I N A ========= EVERGRANDE REAL: Fitch Lowers IDR to 'BB-'; Outlook Negative ------------------------------------------------------------ Fitch Ratings has downgraded Chinese homebuilder Evergrande Real Estate Group Limited's Long-Term Issuer Default Rating (IDR) and senior unsecured debt rating to 'BB-' from 'BB'. The Outlook on the IDR is Negative. Its USD750m senior notes due 2015 have also been downgraded to 'BB-' from 'BB'. Evergrande's ratings have been downgraded because a series of large expenditures on land to adjust its business, new investments and other cash leakages has led to a large increase in its net debts. As a result, Evergrande's leverage as measured by net debt/adjusted inventory rose to 57%, breaching the 40% level at which the agency could take negative action on the company's 'BB' ratings. The Negative Outlook reflects the very narrow gap between its credit metrics and the levels that may trigger negative rating action and the uncertainties with Evergrande's financial discipline. Material investments in non-core businesses or further sharp increases in its land bank acquisition may add further pressure to its already high leverage. KEY RATING DRIVERS Debt Reliant Expansion: Prior to 2013, Evergrande relied more on its negative working capital for its expansion. This was primarily in the form of a rise in payables. However, beginning 2013 and especially in 1H14, its growth was mostly debt funded. Its net debt rose by CNY45bn (USD7.3bn) in 2013 and CNY52bn in 1H14 to CNY132bn at end-1H14. This drove its leverage up to 57% from 42% at end-2013 and 28% at end-2012. In 2013, Evergrande also committed to a record level of land acquisition - a total of CNY70.7bn - to broaden its product mix by increasing its exposure in the tier 1 and tier 2 cities. Geographical Diversification Necessary: Evergrande had to expand its development property business in tier 1 and tier 2 cities because residential property sales in the lower tier cities weakened, especially in 2014. Sales in tier 3 cities fell to CNY30.8bn in 1H14 from CNY32.7bn sequentially in H213, even though it was higher than CNY23.4bn in 1H13. In contrast, sales in tier 1 and tier 2 cities rose to CNY38.5bn from CNY23.1bn and CNY21.1bn over the same sequential period. Weakened Operating Cash Generation: Fitch believes that Evergrande will have less surplus cash from sales to acquire land because of rising cash overheads, and this will constrain the pace of its future growth. Evergrande's key cash overheads were sales, general and administrative (SG&A) expenses and interest payments, which together rose to 18% of contracted sales by 1H14 from 16% in 2013 and 12% in 2012. The increase in 2013 SG&A expenses to almost 8% of contracted sales from 6% suggests that the large additional workforce for its new tier 1 and tier 2 markets has not reached the cost efficiency level in its existing markets. Interest paid (including dividends payable to perpetual securities holders) has also risen to 10% of contracted sales in 1H14 versus 8% in 2013 and 6% in 2012, due to the sharp increase in debts. Shareholder Friendly Moves: Evergrande's weaker credit metrics were also partly due to the decision by the company to pay a dividend totalling CNY6.3bn in 2014 and spend HKD5.3bn (USD684m) in 1H14 to continue its share buyback programme despite sharp increases in the net debt level. Large Liquidity Buffer: Evergrande's liquidity position is strong with CNY64bn in cash and another CNY50bn in unutilised bank facilities at mid-2014. Evergrande's preference for cash suggests that it will keep a high cash level to give it financial flexibility, especially since the credit environment has been volatile. The repayment of two tranches of its 2010 senior notes totalling USD1,350m (approximately CNY8.5bn) due in January 2015 is well covered by its cash on hand. Holding such a large amount of cash, however, means that its gross debt level is elevated. This was why its contracted sales/gross debt ratio had fallen to 0.7x in 1H14 from 0.8x in 2013 and 1.5x in 2012. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- Net debt/adjusted inventory sustained above 60% -- Contracted sales/gross debt falls below 0.6x on a sustained basis -- Tightened liquidity position due to weaker access to financing channels Positive: The current rating is on Negative Outlook. Fitch does not anticipate developments with a material likelihood, individually or collectively, of leading to a rating upgrade. However, if the above factors do not materialize, then the Outlook may revert to Stable. HONGHUA GROUP: Fitch Assigns 'BB' Rating to USD200MM Sr. Notes -------------------------------------------------------------- Fitch Ratings has assigned Honghua Group Limited's (Honghua; BB/Stable) USD200m 7.45% senior unsecured notes due 2019 a final 'BB' rating. The notes are rated at the same level as the senior unsecured debt rating as they represent direct, unconditional, unsecured and unsubordinated obligations of the company. The final rating is in line with the expected rating assigned on Sept. 9, 2014, and follows the receipt of final documents conforming to information already received. KEY RATING DRIVERS Low-Cost Market Leader: Honghua is able to price its rigs at 20% less than its international peers mainly due to the lower costs of building the rigs in China and using mainly Chinese-made parts. The company has gained market share over the years and now ranks as the largest land rig builder in the world with a 14% market share in terms of the number of rigs fabricated in 2013. Positive Market Outlook: The outlook for drilling activities around the globe is strong with spending on rig equipment at historically high levels. In addition, new land rig demand is shifting from traditional markets in North America to emerging markets such as Russia, China, Latin America and the Middle East, where Honghua has already established its reputation. Improving Working Capital Management: Honghua has implemented a number of measures to improve its working capital cycle, including delaying raw material purchase and extending payment terms with suppliers to match the payment terms given to its customers. This resulted in its working capital cycle decreasing to 205 days in 2013 from 288 days in 2012. Better Counter-Party Risk Management: In 2013, approximately two- thirds of Honghua's order books were based on aggressive payment terms, such as 10% down payment and the payment of the remaining 90% upon delivery. In 2014, this ratio has decreased to less than 20%, with those that have aggressive payment terms mostly new contracts in the offshore rig segment, which Honghua is trying to penetrate. To mitigate counterparty risks, Honghua uses tools such as insurance and letters of credit on 90% of its orders. New to Offshore Rigs: Honghua has expanded into offshore drilling equipment manufacturing. It builds the offshore equipment onshore by utilizing an innovative crane that allows the company to reduce construction lead times and fabrication costs. While the foray into offshore rigs presents execution risks, this is partly alleviated by two recently secured contracts worth USD520m. However, as a new entrant, Honghua is likely to offer aggressive payment terms during the initial stage, which will increase its working capital needs. Capex Discipline Important: Honghua's capex spending in 2012 and 2013 rose as the company expanded into oilfield services and manufacturing of offshore drilling equipment. While this helped to diversify the company's product offerings, it also put pressure on the balance sheet. Fitch expects Honghua to deleverage in 2015 as long as it maintains good discipline in capex going forward Commodity Risk Exposure: While drilling activity in emerging markets (where Honghua's main customer base is) generally tends not to be affected by a sharp downturn in oil and gas prices, price declines could have an adverse impact on counterparties' financial strength. RATING SENSITIVITIES Negative: Future developments that may, individually or collectively, result in negative rating action: -- FFO adjusted net leverage of over 3x (2013: 2.6x) on a sustained basis -- EBITDA margin below 12% (2013: 11.4%) on a sustained basis -- Net working capital days of above 250 days on a sustained basis -- Significant weakening of its market position in land rigs and poor execution of contracts for offshore rigs Positive: Future developments that may, individually or collectively, result in positive rating action: -- No positive rating actions is envisaged in the next 12-18 months due to the company's limited scale and evolving business model SINOSTEEL CORP: No Default on Loan, ICBC Says --------------------------------------------- Xinhua News Agency reports that the Industrial and Commercial Bank of China (ICBC) said on September 23 that Sinosteel Corporation and its subsidiaries did not default on its loan. Sinosteel's outstanding loans from the ICBC accounted for less than 1.3 percent of the group's total financing raised from financial institutions, the news agency says. According to Xinhua, the statement from ICBC came after online rumors that Sinosteel and its affiliated companies had defaulted on loans and accrued interest worth tens of billions of yuan. Xinhua relates that the ICBC and the Bank of Communications (BOCOM) were reported to be the major lenders. No response has been made by BOCOM so far, Xinhua says. Sinosteel, previously one of the Fortune 500 companies, failed to make the list in the last two years due to falling revenues and rising debts, notes Xinhua. Sinosteel Corporation is a central state owned enterprise, primarily in mining, trading, equipment manufacturing and engineering, under the supervision of the State-owned Assets Supervision and Administration Commission. ========= I N D I A ========= ASHMITA PAPERS: CRISIL Suspends D Rating on IRN280MM Term Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Ashmita Papers Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Rupee Term Loan 280 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by APPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, APPL is yet to provide adequate information to enable CRISIL to assess APPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Incorporated in 2008 and promoted by Mr. Tarun Kumar Jain, APPL trades in industrial papers, fabrics, and textile chemicals. In January 2012, the company also commenced manufacturing various grades of kraft paper, which it presently supplies directly to the lamination industry. APPL has a manufacturing facility near Ahmedabad (Gujarat). BIG SAM: CRISIL Suspends B Rating on INR60MM Cash Credit -------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Big Sam Snacks & Foods Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 60 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by BSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, BSPL is yet to provide adequate information to enable CRISIL to assess BSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' BSPL, part of the TRITON group, was incorporated in 2010 for branding and distribution of products packaged by group companies- Indepesca Overseas Private Limited and Indepesca Aquaculture Private Limited. However, since 2011-12, the company has switched to marketing processed and frozen meat and vegetarian food, which is imported. It also deals in other products such as chicken and vegetable products from Al-kabeer and Vivek Agro, respectively. CHAITANYA ENTERPRISES: CRISIL Reaffirms B+ Rating on INR30MM Loan ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of M/s. Chaitanya Enterprises (CE) continue to reflect, CE's modest scale of operations in a highly competitive engineering and construction industry, its average financial risk profile, marked by high gearing and subdued debt protection metrics, and large working capital requirements. These rating weaknesses are partially offset by the extensive industry experience of CE's partners and their established relationship with customers. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 70 CRISIL A4 (Reaffirmed) Overdraft Facility 30 CRISIL B+/Stable (Reaffirmed) For arriving at its ratings, CRISIL has treated the unsecured loans from partners of INR20 million as neither debt nor equity as the same are subordinated to debt and will be retained in the business over the medium term. Outlook: Stable CRISIL believes that CE will continue to benefit over the medium term from the extensive industry experience of its partners and their established customer relationship. The outlook may be revised to 'Positive' on case CE reports higher-than-expected cash accruals, driven by ramp-up in the scale of operations, resulting in improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of deterioration in the financial risk profile, particularly, its liquidity, most-likely because of lower-than-expected cash accruals or elongation in the working capital cycle. Update For 2013-14 (refers to financial year, April 1 to March 31), CE, on provisional basis, registered revenues of INR118 million, which has remained in line with CRISIL's expectations. For the five months through August 2014, CE's revenues were estimated at INR50 million and are expected to grow at around 25 per cent year-on- year basis for 2014-15, supported by the healthy order book of around INR550 million. CE's operating profitability was around 9 per cent during 2013-14, which had marginally improved against the preceding year, backed by the price escalation clauses for the contracts undertaken. CE's profitability is expected to remain at similar level over the medium term. CE's working capital requirements increased substantially during 2013-14, because of the turnkey nature of contracts, resulting in high inventory requirements, reflected in its gross current assets of around 253 days as on March 31, 2014 against 84 days in the preceding year. With large inventory requirements for its projects, CE's operations are expected to remain working capital intensive over the medium term. Despite its large incremental working capital requirements, its financial risk profile has remained in line with CRISIL's expectations. CE's financial risk profile is expected to remain average marked by its high gearing, resulting from its large working capital requirements and subdued debt protection metrics, because of its modest cash accruals. These large working capital requirements are funded through high reliance on external debt with bank lines utilised at an average of 96 per cent for 12 months through June 2014. Nevertheless, CE's liquidity remains supported by its adequate cash accruals against maturing debt obligations, funding support from the partners and absence of any debt-funded capital expenditure plans over the medium term. CE based in Warangal (Telangana) was established as a proprietary concern in 1989 by Mr. Akula Nagaraju. CE is engaged in laying of overhead lines, erection of electrical sub-stations, towers and transformers and is a class I contracts for Andhra Pradesh government. CLIFTON EXPORT: CRISIL Suspends B Rating on INR38.4MM Corp. Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Clifton Export Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Corporate Loan 38.4 CRISIL B/Stable Suspended Export Packing Credit 162.7 CRISIL A4 Suspended Foreign Bill Discounting 130 CRISIL A4 Suspended Letter of Credit 10 CRISIL A4 Suspended Long Term Loan 3 CRISIL B/Stable Suspended Proposed Long Term Bank Loan Facility 27.1 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by CEPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, CEPL is yet to provide adequate information to enable CRISIL to assess CEPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Set up in 2007, CEPL is based in Tirupur (Tamil Nadu) and is promoted by Mr. B. Nadanasabapathy. The company manufactures ready-made bodysuits for babies and inner garments for men and women; it exports these garments mainly to European countries. D M FABRICS: CRISIL Suspends B+ Rating on INR70MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of D M Fabrics Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 70 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by DMFPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, DMFPL is yet to provide adequate information to enable CRISIL to assess DMFPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Set up in 1996 by Mr. B N Agarwal, DMF trades in printed cotton sarees. Based in Kolkata (West Bengal), DMF purchases sarees from Mumbai (Maharashtra) and Surat (Gujarat). The company has about 50 wholesalers as its customers across West Bengal, Bihar, Orissa, etc. EKA CHAKRA: CRISIL Suspends B+ Rating on INR40MM Cash Credit ------------------------------------------------------------ CRISIL has suspended its ratings on the bank facilities of Eka Chakra Electrical Works. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 60 CRISIL A4 Suspended Open Cash Credit 40 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by ECEW with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ECEW is yet to provide adequate information to enable CRISIL to assess ECEW's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Set up in 1993 as a partnership entity by Mr.E.Srinivasa Rao and family, ECEW is involved in the manufacture and installation of distribution transformers. GCX LIMITED: Moody's Assigns B2 CFR & Rates $350MM Notes 'B2' ------------------------------------------------------------- Moody's Investors Service has assigned a definitive B2 corporate family rating (CFR) to GCX Limited ("GCX") and a definitive B2 instrument rating to its $350 million senior secured guaranteed notes due July 2019. The outlook on the ratings is stable. GCX is a wholly owned subsidiary of Reliance Communications Ltd (India) ("RCOM", unrated) through an intermediary holding company Global Cloud Xchange Limited ("GCXL"). This action follows the repayment of $250 million of shareholder loans (after netting the inter company balances) availed from RCOM and its subsidiaries to GCX. RCOM in turn used the proceeds to reduce indebtedness at Reliance Globalcom BV ("RGBV"), its wholly owned subsidiary, specifically debt outstanding under its million senior secured bank loan ("SCB loan facility"). This repayment allowed the release over GCX's and GCXL's equity interests and assets which were used to as security for the facility. Both entities were also released as guarantors. In September, GCX also closed a $30 million revolving credit facility which will expire in July 2017. The terms and conditions are largely in line with Moody's expectations. Ratings Rationale GCX's B2 CFR continues to reflect its position as one of the largest privately owned submarine cable network operators globally, which enables it to benefit from ongoing growth in global Internet traffic, particularly in the emerging market corridor in areas such as India and the Middle East. GCX's underlying sales with respect to its subsea cables are based on long-term contracts known as Indefeasible Rights of Use (IRU). These contracts, together with associated operations & maintenance contracts provide a high degree of revenue visibility accounting for roughly 90% of its projected revenue for the fiscal year ending 31 March 2015 (FYE3/2015). Notwithstanding this, GCX remains exposed to cash flow volatility resulting from the mismatch between cash flow impact and revenue recognition of these contracts. Moody's estimates GCX must execute more than $60 million of new IRU contracts per annum to avoid a significant working capital outflow and depletion of cash. GCX signed approximately $37 million of new IRU contracts for delivery in FYE3/2015 of which around $12.5 million was activated and billed in the financial quarter ended 30 June. GCX also remains exposed to an intensely competitive and highly fragmented operating environment, which suffers from chronic over- capacity resulting in declining price levels, and which will continue to pressure its operating performance over the next two to three years at least. Moody's remains cautious on GCX's ability to attract new customers, generate higher occupancy rates, and ramp up its value- added services, given adverse pricing dynamics and intense competition in the broader industry. The stable outlook is based on an expectation that GCX delivers on its business plan which should arrest historical declines in revenues and EBITDA. As a result, Moody's expects GCX to generate EBITDA of at least $135 million by FYE3/2015 and maintain adjusted debt/EBITDA below 3.5x. Additionally, Moody's expect GCX to maintain a sufficient cushion under its financial maintenance covenants that govern the senior secured working capital facility, including a minimum coverage (EBITDA/interest) of 3.0x and maximum leverage (debt/EBITDA) of 3.75x. Furthermore, the stable outlook does not consider any significant cash payouts with respect to outstanding tax litigation claims. Upward pressure is unlikely over the near-term but could emerge should the company's fundamental financial position improve such that EBITDA is sustained above $175 million and EBITDA margins are sustained above 30% resulting in adjusted debt/EBITDA below 2.5x. On the other hand, negative rating pressure could emerge should GCX fail to execute on its growth ambitions such that its credit profile erodes. Specific indicators that Moody's would consider include adjusted debt/EBITDA rising above 4.5x, failure to move towards operating profit, or a tightening of the company's liquidity profile such that cash falls below $40-50 million. Moody's will be concerned if the cushion under the company's maintenance financial covenants were less than 15% or a sizable cash settlement was paid with respect to any of its outstanding legal claims. The principal methodology used in this rating was the Global Communications Infrastructure Rating Methodology published in June 2011. GCX, incorporated in Bermuda in 2014, wholly owns five subsea cable systems on major data traffic routes. As of 30 June 2014, these cable systems had a total length of 68,698 kilometers with 46 landing stations in 27 countries. GCX provides data connectivity solutions to major telecommunications carriers and large multinational enterprises in the US, Europe, Middle East and Asia Pacific region with a need for multi-national IP-based solutions and connectivity. GOLD STAR: CRISIL Suspends B+ Rating on INR55MM Cash Credit ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Gold Star Steel Pvt Ltd (GSSPL; part of the Orissa Concrete group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12.5 CRISIL A4 Suspended Cash Credit 55 CRISIL B+/Stable Suspended Letter of Credit 12.5 CRISIL A4 Suspended The suspension of ratings is on account of non-cooperation by GSSPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, GSSPL is yet to provide adequate information to enable CRISIL to assess GSSPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. CRISIL has combined the business and financial risk profiles of GSSPL and Orissa Concrete & Allied Industries Ltd (OCAIL). This is because the two companies, together referred to as the Orissa Concrete group, share a common management and have operational linkages. Moreover, GSSPL caters to OCAIL's entire insert requirement and around 20 per cent of its high-tensile steel (HTS) wire requirement. Set up in 1981 by Mr. Chaturbhuj Agarwal and the late Mr. Pramod Kumar Agarwal, OCAIL manufactures concrete sleepers used in railway tracks. The company's facility at Raipur (Chhattisgarh) has capacity to manufacture 0.6 million sleepers per annum. The Indian Railways accounts for more than 80 per cent of its total sales. GSSPL manufactures inserts and HTS wires, which are primarily used by OCAIL. GOPALAKRISHNA TEXTILE: CRISIL Puts D Rating on INR97.5M Cash Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Gopalakrishna Textile Mills Pvt Ltd. The ratings reflect instances of delay by GTPL in servicing its term debt; the delays have been caused by GTPL's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Term Loan 49.9 CRISIL D Bank Guarantee 2.6 CRISIL D Cash Credit 97.5 CRISIL D GTPL also has a weak financial risk profile marked by weak capital structure, and modest scale of operations in the fragmented and competitive textile industry. GTPL, however, benefits from its promoters' extensive industry experience. Incorporated in 1953, GTPL is engaged in manufacture of cotton yarn. Its day-to-day operations are managed by Mr. Y G Madhusudan. GTPL, on a provisional basis, reported profit after tax of INR7.0 million on net sales of INR398.3 million for 2013-14 (refers to financial year, April 1 to March 31); the company reported loss of INR8.2 million on net sales of INR344.3 million for 2012-13. KIRTI STAMPINGS: CARE Assigns B+ Rating to INR3.36cr Bank Loan -------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Kirti Stampings Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 3.36 CARE B+ Assigned Long-term/Short-term Bank 2.50 CARE B+/CARE A4 Facilities Assigned Rating Rationale The ratings assigned to the bank facilities of Kirti Stampings Private Limited (KSPL) are primarily constrained on account of its modest scale of operations with low networth base, volatility in operations, sluggish demand from the end-user industry, weak solvency and moderate liquidity position. The ratings are also constrained by the risk associated with the fluctuation in raw material prices. However, the ratings derive strength from the highly experienced promoters. The ability of KSPL to increase its scale of operations, improve profitability and capital structure while efficiently managing its working capital requirements is the key rating sensitivity. Formed as partnership firm in 2006, KSPL was converted to a private limited company in June 2011. KSPL is promoted by Mr Anil Kumar Singh, Mr Shiv Kumar Singh and Mr Manoj Kumar Singh. KSPL is engaged in the manufacturing of Cold Roll Grain Oriented (CRGO) electrical lamination for transformers. KSPL's plant is located at Palej, Bharuch and has an installed capacity of 3,000 Metric Tonne Per Annum (MTPA) as on March 31, 2014. During FY14 (refers to the period April 1 to March 31), KSPL reported a PAT of INR0.01 crore on a total operating income (TOI) of INR11.96 crore as against a net loss of INR0.33 crore on a TOI of INR11.25 crore in FY13. LAHARI HOLIDAY: CRISIL Suspends D Rating on INR78MM Term Loan ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Lahari Holiday Homes Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 18.5 CRISIL D Suspended Long Term Loan 78.0 CRISIL D Suspended Proposed Long Term 15.0 CRISIL D Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by Lahari with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Lahari is yet to provide adequate information to enable CRISIL to assess Lahari's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Lahari was set up in 2003 and became operational in 2006. The company operates a 3-star multi-facility resort, Lahari Resort, located 28 kilometres from Hyderabad (Andhra Pradesh). Lahari was promoted by Mr. G Hari Babu, founder and chairman of the Hyderabad-based Lahari group, which has diversified interest in real estate, construction, and steel manufacturing. MAHAVIR ECO: CRISIL Assigns B+ Rating to INR147.5MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term bank facilities of Mahavir Eco Projects Pvt Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 147.5 CRISIL B+/Stable The rating reflects MEPL's susceptibility to implementation- and technology-related risks in its ongoing project, and its expected below-average capital structure during its initial stage of operations. These rating weaknesses are partially offset by the technical expertise of the company's promoters and their extensive experience in the chemical intermediates business. Outlook: Stable CRISIL believes that MEPL will continue to benefit over the medium term from its promoters' technical expertise and extensive experience in the chemical intermediates business. The outlook may be revised to 'Positive' if the company stabilises operations in a timely manner at its proposed plant, and achieves substantial revenue and profitability. Conversely, the outlook may be revised to 'Negative' if MEPL's liquidity weakens with significant delays in the commercialisation of its plant, substantially low cash accruals during the initial phase of its operations, or sizeable working capital requirements. MEPL was incorporated in 2012 to set up an integrated waste- management facility for the textile and chemical industries. The company is likely to begin commercial production in 2015. It is being promoted by Mr. Vatsal Naik, who, along with his family, has extensive experience in the business of manufacturing chemical intermediates. MANASA RICE: CRISIL Suspends B+ Rating on INR46MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Manasa Rice Industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 46 CRISIL B+/Stable Suspended Long Term Loan 19 CRISIL B+/Stable Suspended The suspension of ratings is on account of non-cooperation by Manasa with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, Manasa is yet to provide adequate information to enable CRISIL to assess Manasa's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. Set up in 2009 as a partnership firm, Manasa is engaged in milling and processing of paddy into rice, bran, broken rice and husk. The firm started its commercial operations in 2011-12. Manasa's rice mill unit is located in Nellore (Andhra Pradesh). The firm is promoted by Mr. Pulivarthi Malyadri and his wife Mrs. Pulivarthi Vengamma. NAGARJUNA FERTILISERS: CARE Ups INR1,481.5cr Loan Rating From C --------------------------------------------------------------- CARE revises the ratings assigned to the bank facilities of Nagarjuna Fertilisers and Chemicals Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 1,481.50 CARE BB Revised from CARE C Short-term Bank Facilities 1,700.11 CARE A4+ Revised from CARE A4 Rating Rationale The revision in the ratings take into account the substantial improvement in the liquidity and working capital position with reimbursement of significant portion of outstanding fertilizer subsidy dues and additional funds tied up to shore up the working capital position. It also factors in improvement in the financial position, exit of the company from Corporate Debt Restructuring (CDR) scheme and established track record of the company in the urea business. The ratings are, however, constrained by the subdued financial performance during FY14 (refers to the period April 1 to March 31) and Q1FY15, disruption in natural gas supply, exposure to foreign exchange fluctuation risk and highly regulated nature of the fertilizer industry. The ability of the company to sustain the operating performance, receive uninterrupted natural gas supply and manage its working capital effectively in the scenario of delayed subsidy reimbursements are the key rating sensitivities. Nagarjuna Fertilisers and Chemicals Ltd, belonging to the Hyderabad-based Nagarjuna group, is engaged in the manufacturing of urea and operates two urea plants (capacity 1,810 MT per day each) at its facilities located at Kakinada, Andhra Pradesh. While Plant I operates entirely on natural gas as the feedstock, Plant II can use both natural gas and naphtha. However, currently, both the plants are operating on natural gas. Besides manufacturing, NFCL is also involved in trading of urea (government pool urea), specialty fertilizers and agri-inputs [viz, Muriate of Potash (MOP), Diammonium Phosphate (DAP), other NPK fertilizers]. During FY14, NFCL posted a PBILDT of INR131.51 crore (FY13: INR536.69 crore) and a net loss of INR239.11 crore (FY13: PAT of INR81.06 crore) on a total operating income (considering net trading revenue) of INR2,037.46 crore (FY13: INR2,437.15 crore). As per the unaudited results for Q1FY15, NFCL posted a PBILDT of INR26.87 crore (Q1FY14: INR71.18 crore) and a net loss of INR56.38 crore (Q1FY14: INR65.69 crore) on a total operating income (considering net trading revenue) of INR366.70 crore (Q1FY14: INR411.24 crore). PIONEER EMBROIDERIES: CARE Reaffirms D Rating on INR82.18cr Loan ---------------------------------------------------------------- CARE reaffirms ratings assigned to bank facilities of Pioneer Embroideries Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Bank Facilities-Fund 39.70 CARE D Reaffirmed Based- Long Term Bank Facilities- Fund 82.18 CARE D Reaffirmed Based- LT-Term Loan Bank Facilities- Non- 5.86 CARE D Reaffirmed Fund Based- ST- BG/LC Rating Rationale The reaffirmation of rating assigned to Pioneer Embroideries Limited reflects the ongoing delays in debt servicing owing to strained liquidity position. Pioneer Embroideries Limited was incorporated in 1991 and is into embroidered fabrics, laces and dope dyed yarn. The company has eight plants at different locations. As on December 31, 2013 the company has installed capacity of Embroidery (2574 mn stitches), Bobbin Lace (1,87,83,000 mtrs), spun yarn (1341 MT) and dope dyed yarn (7875 MT). The company also has presence in retail through its subsidiary Hakoba Lifestyle Limited and operates outlets under brand name 'Hakoba'. PEL was referred to Corporate Debt Restructuring (CDR) cell for debt restructuring during FY12. In FY14, PEL entered into One Time Settlement with certain banks and financial institutions. In FY14, PEL generated a total operating income of INR 281.24 crore and PBILDT of INR 27.01 crore as compared to INR 247.22 crore and INR 21.54 crore respectively in FY13. PONDICHERRY TEXTILE: CRISIL Suspends D Rating on INR111.5MM Loan ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Pondicherry Textile Corporation Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15.5 CRISIL D Suspended Cash Credit 27 CRISIL D Suspended Foreign Bill 21 CRISIL D Suspended Purchase Letter of Credit 25.2 CRISIL D Suspended Packing Credit 45 CRISIL D Suspended Purchase Bill 6 CRISIL D Suspended Discounting Working Capital 111.5 CRISIL D Suspended Demand Loan The suspension of ratings is on account of non-cooperation by PTCL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, PTCL is yet to provide adequate information to enable CRISIL to assess PTCL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. PTCL was set up in the 1898 as a joint stock company under the name Rodier Mills. In 1956, it was renamed Anglo French Textiles, which was closed in 1983 because of persistent labour unrest and obsolete equipment. PTCL, an undertaking of GoP, took over Anglo French Textiles in 1986. The company has an integrated facility for converting cotton into garments and made-ups. REGENCY EXPORTS: CRISIL Suspends B Rating on INR55MM Bank Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Regency Exports Pvt. Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 2.5 CRISIL A4 Suspended Cash Credit 30.0 CRISIL B/Stable Suspended Letter of Credit 107.5 CRISIL A4 Suspended Proposed Long Term Bank Loan Facility 55.0 CRISIL B/Stable Suspended The suspension of ratings is on account of non-cooperation by REPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, REPL is yet to provide adequate information to enable CRISIL to assess REPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' REPL is a private limited company incorporated in 1990 by Mr. Rajesh Kaura. The company manufactures and exports terry towels and towelling materials. REPL has been exporting its products for distribution through retail chains and departmental stores in Europe for 20 years. REPL has manufacturing units at Solapur (Maharashtra). It has its own warehouse in Solapur. ROYAL MARWAR: CARE Assigns B+ Rating to INR40.95cr Bank Loan ------------------------------------------------------------ CARE assigns 'CARE B+' rating to the long-term bank facilities of Royal Marwar Hospitality Private Limited. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 40.95 CARE B+ Assigned Rating Rationale The rating assigned to the bank facilities of Royal Marwar Hospitality Private Limited (RMH) is primarily constrained by the execution risk of debt-funded project, marketing and funding risk as it is highly dependent on monetization of club membership along-with industry risk. The rating derives strength from the experience of directors in the hospitality business and management of hotel by established hospitality brand and tie-up with Umaid Heritage Project for sale of club membership. Going forward, the ability of RMH to complete the project in a timely manner without any cost overrun and achieve the targeted sales of membership for the club house is the key rating sensitivities. Incorporated in 2004, Royal Marwar Hospitality Private Limited (RMH) is currently developing a 51 rooms three star property and a club at Jodhpur, Rajashtan. The hotel will operate under the brand name "Citrus Jodhpur" and club under the brand name "Royal Marwar Club". Apart from the hospitality and club operations, the company also intends to monetize certain portion of additional land around the club. The total area of the spare plot is 12,447 sq mt approximately, which is valued to be sold at INR42,500 per sq mt and is expected to generate revenue of INR52.90 crore for the company. The estimated cost for the project amounts to INR73.37 crore is estimated to be funded by equity (including sub-ordinated unsecured loans), sale of club membership, term loan and debentures from promoters in the ratio of 0.27: 0.09: 0.56: 0.08. As on July 31, 2014, the company has already incurred a cost of INR39.95 crore (54.45% of the total estimated project cost including entire land cost), wherein equity and debenture funding has been received. The remaining sub-ordinate unsecured loans (40% already infused), term loan (42.17% already received) and sale of membership (31 % already received). The construction for club house has commenced in FY10 (refers to the period April 01 to March 31) and is expected to be operational by the end of September 2014 as majority of the work has been completed therein. Moreover, construction for hotel has commenced in April 2014 and is expected to commence commercial operations from August 2015. SRI KRISHNA: CRISIL Assigns 'D' Rating to INR98.7MM Term Loan ------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank facilities of Sri Krishna Spg and Wvg Mills Pvt Ltd. The ratings reflect instances of delay by SKSWML in servicing its term debt; the delays have been caused by SKSWML's weak liquidity. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Term Loan 98.7 CRISIL D Bank Guarantee 0.2 CRISIL D Cash Credit/ 21.1 CRISIL D Overdraft facility Also, SKSWML has modest scale of operations in the fragmented and competitive textile industry. SKSWML, however, benefits from its promoters' extensive industry experience. SKSWML, incorporated in 1930 and based in Bengaluru, is engaged in dying and printing of fabric. Its day-to-day operations are managed by Mr. Y M Vinay. SKSWML, on a provisional basis, reported profit after tax of INR6.3 million on net sales of INR469.2 million for 2013-14 (refers to financial year, April 1 to March 31); the company reported loss of INR5.6 million on net sales of INR 437.8 million for 2012-13. SRI RATNA: CRISIL Reaffirms B+ Rating on INR70MM Cash Credit ------------------------------------------------------------ CRISIL's ratings on the bank facilities of Sri Ratna Lakshmi Spinning Mills Pvt Ltd (SRS) continue to reflect SRS's modest scale of operations in the intensely competitive cotton textiles industry, and susceptibility of its operating margin to volatility in raw material prices. The ratings also factor in the company's below-average financial risk profile, marked by small net worth. These rating weaknesses are partially offset by the extensive experience of SRS's promoter in the textiles industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 8 CRISIL A4 (Reaffirmed) Cash Credit 70 CRISIL B+/Stable (Reaffirmed) Letter of Credit 15 CRISIL A4 (Reaffirmed) Term Loan 24.7 CRISIL B+/Stable (Reaffirmed) Warehouse Financing 37.6 CRISIL B+/Stable (Reaffirmed) Outlook: Stable CRISIL believes that SRS will continue to benefit over the medium term from its established track record in the textiles industry. The outlook may be revised to 'Positive' if the company records considerable improvement in its accruals and capital structure, resulting in improvement in its liquidity. Conversely, the outlook may be revised to 'Negative' if SRS registers significant deterioration in its working capital management or if the company undertakes a large debt-funded capital expenditure (capex) programme, or if its revenue or profitability declines, resulting in deterioration in its financial risk profile. Update SRS, on a provisional basis, reported operating income of INR 432 million for 2013-14 (refers to financial year, April 1 to March 31), against INR353 million for 2012-13; a compounded growth rate of 21 per cent for four years through 2013-14 owing to steady offtake from the end-user segment. However, the company's operating margin declined to an estimated 7.50 per cent in 2013-14 from 9.76 per cent in 2012-13 due to inability to pass on increased cost to end customers. CRISIL believes that SRS will continue to benefit from its established relationship with customers. SRS's financial risk profile continues to remain below average, marked by small net worth. The company's net worth and gearing are estimated to be around INR75 million and 1.56 times respectively, as on March 31, 2014. SRS benefits from continuous support from its promoters in the form of unsecured loans which stood at INR10.3 million as on March 31, 2014. The gearing is expected to improve due to steady accretion to reserves. The company has moderate debt protection metrics as reflected in its net cash accruals to total debt and interest coverage ratios of around 12 per cent and 1.83 times, respectively, for 2013-14. CRISIL believes that SRS's financial risk profile will remain at similar levels supported by steady accretions to reserves and minimal debt funded capex plans. SRS's liquidity is adequate, marked by sufficient cash accruals to meet repayment obligations though constrained by high utilisation of its bank lines. The company is expected to generate cash accruals of INR16.6 million to INR26 million over the medium term, which will be adequate to meet its repayment obligations of INR11 million to INR11.2 million. The bank lines were utilised at an average of 97 per cent for 12 months through June 2014. CRISIL believes that SRS's liquidity will be adequate over the medium term given its steady cash accruals and continuous support from its promoters. SRS, incorporated in 1994, derives revenue from manufacture of cotton yarn and sale of fabric. The company's manufacturing unit is in Kunnathur (Tamil Nadu). STALLION ENTERPRISE: CARE Assigns B+ Rating to INR2.5cr Bank Loan ----------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' to the bank facilities of Stallion Enterprise. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 2.50 CARE B+ Assigned Long-term/Short-term Bank 5.00 CARE B+/CARE A4 Facilities Assigned Rating Rationale The ratings assigned to the bank facilities of Stallion Enterprise are primarily constrained due to the modest scale of operations, thin profitability, leveraged capital structure and weak debt coverage indicators coupled with foreign exchange fluctuation risk. The ratings are further constrained on account of its short track record of operations in the fragmented and working capital intensive agro trading industry and constitution as a partnership firm. The ratings, however, derive strength from the promoters experience and moderate liquidity position. The ability of SES to increase its scale of operations with an improvement in profitability margins along with capital structure and effectively managing its working capital requirements is the key rating sensitivity. Rajkot-based, (Gujarat) Stallion Enterprise (SES) established in 2012 is a partnership firm engaged in the trading of agricultural commodities like Rice, Indian Raw Cotton, Maize, Yellow Corn, Millet, Groundnut Kernels, Hulled Sesame Seeds, Natural White Sesame Seeds, Natural Black Sesame Seeds, Raw Cashew nut, Wheat and Indian spices. SES is promoted and managed by Mr Praful Fuletra and Mr Aatman Bhesdadiya. SES supplies the products to various countries in Africa and Europe with Benin in Africa as its major export destination. SES generates almost 40% of its revenues through trading in rice. SES reported a PAT of INR0.05 crore on a TOI of INR19 crore during FY14 (refers to the period April 1 to March 31). As per the provisional results for Q1FY15, SES reported a TOI of INR5 crore. STANDARD SURFACTANTS: CRISIL Suspends B+ INR80M Cash Loan Rating ---------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Standard Surfactants Ltd. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 12.5 CRISIL A4 Suspended Cash Credit 80 CRISIL B+/Stable Suspended Letter of Credit 5 CRISIL A4 Suspended Proposed Long Term 2.5 CRISIL B+/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by SSL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, SSL is yet to provide adequate information to enable CRISIL to assess SSL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. SSL, set up in 1989, is promoted by the Kanpur (Uttar Pradesh)- based Garg family. The company commenced production at its facility in Rania in Kanpur, and has expanded to three manufacturing units, located in Rania, Mandideep (Madhya Pradesh), and Paonta Sahib (Himachal Pradesh). SSL manufactures chemicals and intermediates for the detergent and pesticides industries. The company has installed capacity of 19,550 tpa for chemicals and surface active agents, and 48,000 tpa for detergents. It is also an authorised distributor for Indian Oil Corporation Ltd (IOCL) for paraffin wax and sulphur in Uttar Pradesh. SSL is also working as del credere agent for IOCL for selling polymer products in Kanpur. SVARN TEX: CRISIL Suspends D Rating on INR144.1MM Term Loan ----------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Svarn Tex Prints Pvt Ltd (STPPL; part of the Svarn group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Bank Guarantee 15 CRISIL D Suspended Cash Credit 45 CRISIL D Suspended Rupee Term Loan 144.1 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by STPPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, STPPL is yet to provide adequate information to enable CRISIL to assess STPPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' CRISIL has combined the business and financial risk profiles of STPPL, Svarn Telecom Ltd (STL), Svarn Telecom (ST), and Svarn Infratel Ltd (SIL). This is because the four entities, collectively referred to as the Svarn group, share the same management team, and have intra-group operational linkages and fungible cash flows. The group's procurement and marketing functions are carried out at its central corporate office. Three of the group entities are in the same line of business and use a common brand name. Furthermore, there are fungible cash flows among the group companies, where surplus funds available with one group entity could be utilised for working capital and capital expenditure requirements of the other group entities. The Svarn group has been established by the Gupta and Singhal family. STPPL, part of the Svarn group, was set up in 2008 in Faridabad (Haryana). It operates a processing house for fabric dyeing, printing, and processing. The Svarn group manufactures passive telecom infrastructure and equipment, and operates a fabric processing house. The group manufactures passive telecom equipment through ST and STL, and power cables through SIL; it operates a fabric processing house under STPPL. The Svarn group supplies its products to telecom entities such as Ericsson India Pvt Ltd, Nokia India Private Limited, Siemens Ltd (rated 'CRISIL AAA/Stable/CRISIL A1+'), Bharti Airtel Ltd (CRISIL AA+/Stable/CRISIL A1+), and Idea Cellular Ltd (CRISIL A1+). SWISS PHARMA: CARE Assigns B+ Rating to INR14.15cr Bank Loan ------------------------------------------------------------ CARE assigns 'CARE B+' and 'CARE A4' ratings to bank facilities of Swiss Pharma Pvt Ltd. Amount Facilities (INR crore) Ratings ---------- ----------- ------- Long-term Bank Facilities 14.15 CARE B+ Assigned Short-term Bank Facilities 2.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Swiss Pharma Pvt Ltd (SPPL) are primarily constrained on account of the modest scale of operations with moderate liquidity position, moderate profitability and highly leveraged capital structure. The ratings are also constrained due to its presence in the competitive generic formulations and pharma contract manufacturing industry coupled with low bargaining power with customers and risk associated with the new project. The ratings, however, derive strength from the promoters' experience, long track record of operations and well-equipped and accredited manufacturing facility. The ability of SPPL to increase its scale of operations with achievement of envisaged capacity utilization of expanded facility and improvement in capital structure along with improving its profitability margins are the key rating sensitivities. Incorporated in 1987, Swiss Pharma Pvt Ltd (SPPL) is engaged in the manufacturing of generic formulations in various dosage forms, ie, tablets, capsules and dry syrups at its facility at Ahmedabad, Gujarat, which is ISO certified and WHOGMP compliant. SPPL does contract manufacturing for large pharma players along-with manufacturing its own generic products which are sold through its associate company, ie, Swipha Export Pvt Ltd, which markets the products in Southeast Asia, Cambodia, Nigeria, Uganda, Tanzania, Iraq, Iran, etc, forming approximately 17% of the total turnover in FY14 (refers to the period April 01 to March 31). SPPL is managed by Dr Sharad Shah and his son, Mr Darshan Shah. As per the provisional results for FY14, SPPL reported a TOI of INR23.05 crore and PAT of INR0.38 crore in FY14 as compared with TOI of INR16.92 crore and PAT of INR0.04 crore in FY13 (audited) respectively. SYMCOM IMPEX: CRISIL Upgrades Rating on INR150M Cash Credit to B+ ----------------------------------------------------------------- CRISIL has upgraded its rating on the long-term bank facilities of Symcom Impex Pvt Ltd to 'CRISIL B+/Stable' from 'CRISIL B/Stable'. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 150 CRISIL B+/Stable (Upgraded from 'CRISIL B/Stable') Working Capital 93.5 CRISIL B+/Stable (Upgraded Demand Loan from 'CRISIL B/Stable') Proposed Long Term 6.5 CRISIL B+/Stable (Upgraded Bank Loan Facility from 'CRISIL B/Stable') The rating upgrade reflects CRISIL's belief that SIPL's average business risk profile, driven by higher-than-expected growth in revenue backed by expected increase in the company's trading activities. The upgrade also reflects the expected improvement in SIPL's liquidity driven by liquidation of a significant portion of advances deployed towards group companies. The rating reflects SIPL's below-average financial risk profile, marked by weak interest coverage ratio, its susceptibility to risks related to the highly fragmented nature of the scrap trading industry, and vulnerability of its operating margin to fluctuations in steel scrap prices. These rating weaknesses are partially offset by the extensive experience of SIPL's promoters in the steel scrap trading industry. Outlook: Stable CRISIL believes that SIPL 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 generates more-than-expected cash accruals, driven most likely by a sustainable increase in its scale of operations and profitability, leading to improvement in its capital structure and debt protection metrics. Conversely, the outlook may be revised to 'Negative' if SIPL's liquidity weakens, driven most likely by lower-than-expected cash accruals, increase in working capital requirements, or significant diversion of funds towards group companies. SIPL was set up in April 2011. The company is in the business of disposing scrap obtained by dismantling and demolishing big industries and workshops such as textile mills, sugar mills, and steel plants, and of ships. It also trades in scrap. For 2013-14, SIPL reported a profit after tax (PAT) of INR9 million on net sales of INR483 million, against a PAT of INR3 million on net sales of INR205 million for 2012-13. UNITRACK LOGISTICS: CRISIL Suspends D Rating on INR33MM Term Loan ----------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Unitrack Logistics Private Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 25 CRISIL D Suspended Term Loan 33 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by ULPL with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, ULPL is yet to provide adequate information to enable CRISIL to assess ULPL's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings'. ULPL was incorporated as a private limited company in 2002, by Mr. Chanchal Ghosh along with his business acquaintance Mr. Rajesh Dubey. The company was initially engaged in providing logistics services such as freight forwarding and customs clearing by air for various aviation and non-aviation companies. Later, ULPL entered into trading of oil and lubricants and aircraft repair, maintenance and modernization business. ULPL has its head office at Delhi and local offices in other major cities of India such as Bangalore, Chennai, and Mumbai. USHA SPINNERS: CRISIL Reaffirms B+ Rating on INR100MM Cash Credit ----------------------------------------------------------------- The rating continues to reflect Usha Spinners' below-average financial risk profile, marked by high gearing and weak debt protection metrics, and modest scale of operations in a fragmented industry. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 100 CRISIL B+/Stable (Reaffirmed) Proposed Long Term Bank Loan Facility 20 CRISIL B+/Stable (Reaffirmed) These rating weaknesses are partially offset by its promoters' extensive experience in the textile industry. CRISIL had upgraded its rating on the long-term bank facilities of Usha to 'CRISIL B+/Stable' from 'CRISIL B/Stable', via its rating rationale released on September 12, 2014. Outlook: Stable CRISIL believes Usha will maintain its business risk profile over the medium term on the back of its proprietor's extensive experience in the textile industry. The outlook may be revised to 'Positive' if the firm reports healthy growth in the scale of operations and profitability leading to better debt protection metrics, or its capital structure improves due to infusion of substantial equity by promoters. Conversely, the outlook may be revised to 'Negative' if Usha's operating margin declines further or its financial risk profile deteriorates owing to a stretch in working capital cycle. Set up in 1998, Usha is a Ludhiana-based proprietorship concern that trades in cotton, polyester yarn and cloth. The operations of the firm is being looked after by Mr. Gautam Thapar. VIDYAA VIKAS: CRISIL Suspends D Rating on INR188.2MM Term Loan -------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of Vidyaa Vikas Educational and Medical Charitable Trust - Covai (VVEMCT; part of Vidyaa Vikas group). Amount Facilities (INR Mln) Ratings ---------- --------- ------- Long Term Loan 188.2 CRISIL D Suspended Proposed Long Term Bank Loan Facility 40.0 CRISIL D Suspended The suspension of ratings is on account of non-cooperation by VVEMCT with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VVEMCT is yet to provide adequate information to enable CRISIL to assess VVEMCT's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' CRISIL has combined the business and financial risk profiles of VVEMCT and Vidyaa Vikas Educational and Charitable Trust (VVECT), collectively referred to as the Vidyaa Vikas group. This is because both the trusts are in the same lines of business, managed by common trustees, and have fungible cash flows between them. Established in 1996 and based in Tiruchengode (Tamil Nadu [TN]), VVECT runs six educational institutions, including schools, colleges, and a teacher training institute, imparting education to around 11,000 students every year. VVS CONCAST: CRISIL Suspends B+ Rating on INR80MM Cash Credit ------------------------------------------------------------- CRISIL has suspended its ratings on the bank facilities of VVS Concast Limited. Amount Facilities (INR Mln) Ratings ---------- --------- ------- Cash Credit 80 CRISIL B+/Stable Suspended Proposed Long Term 11.7 CRISIL B+/Stable Suspended Bank Loan Facility The suspension of ratings is on account of non-cooperation by VVS with CRISIL's efforts to undertake a review of the ratings outstanding. Despite repeated requests by CRISIL, VVS is yet to provide adequate information to enable CRISIL to assess VVS's ability to service its debt. The suspension reflects CRISIL's inability to maintain a valid rating in the absence of adequate information. CRISIL considers information availability risk as a key credit factor in its rating process and non-sharing of information as a first signal of possible credit distress, as outlined in its criteria 'Information Availability Risk in Credit Ratings' Incorporated in 1996 and promoted by Mr. Vijay Kumar Aggarwal, VVS manufactures cold twisted bars and wire rods in Kanpur. ================= I N D O N E S I A ================= BAKRIE TELECOM: Discloses Proposal to Restructure Bonds Due 2015 ---------------------------------------------------------------- Daniel Stanton at International Financing Review reports that PT Bakrie Telecom has put forward a restructuring proposal to holders of its US$380 million 11.5% senior notes due 2015, after it missed a coupon payment in November last year. The report relates that the proposal calls for the existing notes to be split into two parts, according to a source who attended a bondholder meeting on September 24. Around 30% will be exchanged for a 5-year amortising bond with annual redemptions, a 1% cash coupon and an extra 3% capitalised payment in kind, IFR relays. IFR says the other 70% is an equity-like investment -- a "secured conditional exchange bond" -- with a 6.5-year maturity. It will pay a 5% coupon only on its sixth anniversary, but carries some upside if the company is involved in mergers or acquisitions, according to the report. IFR notes that the company will hold more meetings with bondholders to secure approval for the plan, and aims to wrap up the restructuring by December. Bakrie Telecom's other creditors, including Credit Suisse and Huawei, will also need to approve the proposal, the report notes. "It seems sensible," the source, as cited by IFR, said. "If they can deliver on their plan it's good news." The bond was quoted as low as 9 cents to the dollar before the meeting, the report notes. Bakrie Telecom did not respond to questions from IFR. About Bakrie Telecom PT Bakrie Telecom Tbk -- http://www.bakrietelecom.com/-- is an Indonesia-based telecommunication services provider. The Company's services include fixed wireless access using extended- time division multiple access (E-TDMA) technology, which is a limited mobility service using code division multiple access (CDMA) 2000 1x technology. The Company's products consist of Esia, Wifone, Wimode, EsiaTel and SLI Hemat 009. * * * As reported in the Troubled Company Reporter-Asia Pacific on June 4, 2014, Fitch Ratings downgraded Indonesia-based PT Bakrie Telecom Tbk's (BTEL) Long-Term Foreign- and Local-Currency Issuer Default Ratings to 'Restricted Default' (RD) from 'C'. The USD380m May 2015 bond fully guaranteed by BTEL has also been affirmed at 'C' while the Recovery Rating on the bond has been downgraded to 'RR5' from 'RR4'. Fitch said the downgrade to 'RD' follows the uncured default on a coupon payment in November 2013 and no subsequent coupon payment or public announcement about the progress of debt restructuring discussions with its creditors. BAKRIE TELECOM: Investors Sue Over $380MM Bond Default ------------------------------------------------------ Eveline Danubrata and Umesh Desai at Reuters report that three buyers of a $380 million bond issued by a subsidiary of Indonesia's PT Bakrie Telecom Tbk have filed a lawsuit in the United States for alleged breach of terms. Reuters says the investors claim four Bakrie Group companies tied to the bond have failed to make two interest payments and have indicated they will continue to default on their obligations. Bakrie Telecom is the latest Bakrie Group company struggling to repay debt, Reuters notes. The group, often described as asset- rich but cash poor, have struggled in recent years due to a slide in coal prices and over-leveraged balance sheets, according to Reuters. Reuters relates that in a filing dated Sept. 22, Universal Investment Advisory SA, Vaquero Master EM Credit Fund Ltd and Trucharm Ltd said they were suing Bakrie Telecom Pte Ltd, PT Bakrie Telecom Tbk, PT Bakrie Network and PT Bakrie Connectivity in a New York state court. Bakrie Telecom Pte Ltd, a company organised under the laws of Singapore, issued the bond, Reuters notes. It, PT Bakrie Network and PT Bakrie Connectivity are subsidiaries of PT Bakrie Telecom Tbk. Reuters says the three plaintiffs, which collectively hold more than 25 percent of the bond maturing May 2015, claimed the four Bakrie companies failed to pay interest due in November 2013 and May 2014. "Defendants have acknowledged that the default will continue and no further interest payments will be made while the company confidentially negotiates with its chosen 'steering committee,' and a restructuring of the company and the note obligations is effectuated," the investors said in the filing cited by Reuters. "Accordingly, there is high probability that defendants will exacerbate the default and fail to make the next payment due in November 2014." Analysts are skeptical about the enforceability of the outcome of the lawsuit, according to Reuters. "Judgements of foreign courts, including New York courts, are not enforceable in Indonesia," Fitch analyst Vicky Melbourne wrote in a recent report, Reuters relays. "Few creditors have used the legal bankruptcy process in the past, opting instead for an out of court consensual restructuring." Mulls Merger With Smartfren Meanwhile, Reuters says PT Bakrie Telecom Tbk is currently considering merging with PT Smartfren Telecom Tbk, local media reported on September 24, quoting a Bakrie Telecom director. "An M&A looks difficult as the company (Bakrie Telecom) is continuously losing subscribers and posting weaker financial performance every quarter," Reuters quotes Nitin Soni, a Fitch analyst, as saying. But it may pursue a deal with Smartfren as the companies use similar technology, Soni said, Reuters relays. About Bakrie Telecom PT Bakrie Telecom Tbk -- http://www.bakrietelecom.com/-- is an Indonesia-based telecommunication services provider. The Company's services include fixed wireless access using extended- time division multiple access (E-TDMA) technology, which is a limited mobility service using code division multiple access (CDMA) 2000 1x technology. The Company's products consist of Esia, Wifone, Wimode, EsiaTel and SLI Hemat 009. * * * As reported in the Troubled Company Reporter-Asia Pacific on June 4, 2014, Fitch Ratings downgraded Indonesia-based PT Bakrie Telecom Tbk's (BTEL) Long-Term Foreign- and Local-Currency Issuer Default Ratings to 'Restricted Default' (RD) from 'C'. The USD380m May 2015 bond fully guaranteed by BTEL has also been affirmed at 'C' while the Recovery Rating on the bond has been downgraded to 'RR5' from 'RR4'. Fitch said the downgrade to 'RD' follows the uncured default on a coupon payment in November 2013 and no subsequent coupon payment or public announcement about the progress of debt restructuring discussions with its creditors. BANK MUTIARA: Informal Talks With J Trust Over Stake Buy Starts --------------------------------------------------------------- Vanesha Manuturi at Jakarta Globe reports that the Financial Services Authority, or OJK, has started informal talks with Japan's J Trust on the sale of troubled lender Bank Mutiara, according to a high-ranking official from the Indonesia Deposit Insurance Corporation, or LPS. "We hope that the OJK can reach a decision by early November," the report quotes Kartika Wirjoatmodjo, chief executive at LPS, as saying. Jakarta Globe recalls that LPS had said previously that J Trust must complete process for the acquisition of the stake by Nov. 21. Bank Mutiara, formerly known as Bank Century, was bailed out by the government during the 2008 financial crisis, according to Jakarta Globe. LPS has taken over its operations since then. Jakarta Globe, citing a 2004 law, notes that LPS must sell the entire shares of a bank it rescues after six years, at most. Investor Daily reported last week the J Trust agreed on a price between IDR4.3 trillion ($395 million) to IDR5.7 trillion, quoting an unnamed source, according to Jakarta Globe. Kartika decline to confirm the prices, adding that "it would not be too far from those that has been reported," the report relays. A public bidding process was initiated April, and J Trust, a Japanese finance company, was named as the most suitable bidder for the sale, beating other lenders such as Bank Rakyat Indonesia and the Hong Kong unit of Bank of China, Jakarta Globe adds. Based in Jakarta, Indonesia, Mutiara Bank, formerly known as PT Bank Century Tbk -- http://www.mutiarabank.co.id/-- was a financial institution. The Bank's products and services include deposits, savings, loans, mutual funds, bank notes, export and import financing, credit and commercial banking. Bank Century was a relatively small lender with total assets of IDR15 trillion (US$1.3 billion). The government took over Bank Century -- the first such move since the 1997-1998 crisis -- to save it from collapse and restore confidence in the banking sector. The government initially injected IDR1 trillion (US$106 million) to increase liquidity at Bank Century after Indonesia's Deposit Insurance Corp. seized it on Nov. 21, 2008, over a week after the bank failed to comply with a IDR5 billion obligation. Bank Century then received a total capital injection of IDR6.76 trillion from the LPS. ==================== N E W Z E A L A N D ==================== CAPITAL + MERCHANT: Case vs Former Trustee, Stace Hammond Delayed ----------------------------------------------------------------- Victoria Young at NBR Online reports that a claim by the receiver of Capital + Merchant Finance against its former trustee, Perpetual Trust, and legal firm Stace Hammond has been delayed. Media were kept out of court on September 25 morning as lawyers for KordaMentha's Grant Graham and Brendon Gibson and Perpetual and Stace Hammond, which acted for Capital + Merchant met Justice Raynor Asher, according to NBR. NBR says Messrs Graham and Gibson had filed statements of claim saying the trustee and lawyers breached duties they owed to the finance company. According to the report, Justice Asher on September 23 released a minute which says it was the defendants who wanted the case delayed. According to the minute, the receiver's lawyer, Robert Stewart QC, did not consent to delaying the case but could not get advice from his client to oppose it, the report relays. The judge decided the case could not move forward and asked counsel for a progress report next week, adds NBR. NBR relates that the receivers said this is probably the only remaining potential avenue of recovery for the 7,500 Capital + Merchant investors owed approximately NZ$167 million at the date of receivership. The company holds no further assets that have a realisable value, the report notes. NBR says the claim follows a High Court decision last year to remove Perpetual as trustee for Capital + Merchant and appoint state-owned Public Trust as a trustee of last resort. About Capital + Merchant Capital + Merchant Finance Limited was placed into receivership on Nov. 23, 2007, with the appointment of Timothy Downes and Richard Simpson of Grant Thornton as Receivers. A second receivership also commenced on Nov. 29, 2007, with the appointment of Grant Graham and Brendon Gibson of Korda Mentha as Receivers. The first receivership was concluded on March 21, 2012, and the second receivership continues. The Official Assignee was appointed liquidator of the company on Dec. 15, 2009, on the petition of the Registrar of Companies. Three former directors of C+M (Nicholls, Douglas and Tallentire) were convicted of offences under the Crimes Act and the Securities Act as a result of prosecutions by the Serious Fraud Office (SFO) and the Financial Markets Authority (FMA). They received total prison sentences of between six and eight and a half years' imprisonment. Two of the directors (Ryan and Sutherland) were ordered to pay reparation totaling NZ$160,000. ==================== S O U T H K O R E A ==================== DONGBU GROUP: Creditors Seek to Write Down Dongbu Steel Capital --------------------------------------------------------------- Park Ji-won at The Korea Times reports that the Korea Development Bank (KDB) and its creditors are seeking to write down Dongbu Steel's capital as a way of taking over managerial control from Dongbu Group Chairman Kim Jun-ki. The Korea Times relates that KDB, the main creditor of the debt- ridden steelmaker, said on September 23 that it had started seeking other creditors' approval for the restructuring plan. According to the report, the capital write-down plan calls for every 100 shares owned by Kim and other major shareholders to be cut down to one share. The capital write-down ratio for minor shareholders is set at four to one, the report says. The Korea Times notes that creditors are required to reply to the KDB-initiated restructuring plan by Sept. 30. The plan also includes turning KRW53 billion of the steelmaker's debt into equity and for the extension of KRW500 billion in fresh loans, the report relays. If the plan gains the approval of creditors and the group, Chairman Kim will lose management control because Kim and his allies' combined shares will be worth only about 1 percent what they are worth today [Sept. 23], according to The Korea Times. Kim holds a 4.04-percent stake in the company and his eldest son, Nam-ho, a 7.39-percent stake, the report discloses. Dongbu CNI holds the largest stake in the company, 11.23 percent. According to the report, KDB officials said the group was claiming that the capital write-down ratio was excessive. The restructuring plan needs endorsement from all creditors, says the Korea Times. Creditors' due diligence estimated the steelmaker is worth KRW2.4 trillion, the report notes. Dongbu is a South Korean conglomerate corporation which operates through seven business segments with 42 subsidiaries and 35,000 employees. The Group produces industry, chemical, shipping, insurance and financial products. * SOUTH KOREA: Ailing Shipbuilders Call For State Support --------------------------------------------------------- Park Ji-won at The Korea Times reports that the local shipbuilding industry on September 19 asked the government to provide substantial support to save local shipbuilders from continuing financial decline. "In order to overcome the current crisis that the local shipbuilding industry faces, the government should immediately initialize action plans including heavy financial support," Kim Oi-hyun, head of the Korea Offshore and Shipbuilding Association (KOHIPA), told reporters, last week, during a meeting with executives of the industry, The Korea Times relates. Mr. Kim is also the CEO of Hyundai Heavy Industries, South Korea's biggest shipyard. KOHIPA is a private association consisting of the nation's leading shipbuilders, the report discloses. Samsung Heavy Industries CEO Park Dae-young, Daewoo Shipbuilding & Marine Engineering (DSME) Vice President Lee Chul-sang, STX Offshore & Shipbuilding CEO Ryu Jung-hyung and Hanjin Heavy Industries CEO Choi Sung-moon were high-profile figures who attended the meeting, according to The Korea Times. The report says the shipbuilding industry is experiencing a sense of urgency after being hit by decreased orders and falling profits. The Korea Times notes that the nation's top three shipbuilders -- Hyundai, Samsung Heavy and DSME -- are in the doldrums because their attempts to diversify their portfolios to offset concerns over profit margins have been without any compensatory breakthroughs. Hyundai posted an operating loss of KRW1.1 trillion ($1.07 billion) in the second quarter, its largest since it was founded in 1972, the report notes. According to the report, the second quarter was catastrophic too for Samsung and DSME in terms of performance amid the continued bleak market. Samsung posted KRW262.3 billion in operating profits in the second quarter, down 8.3 percent from a year earlier. The company also has conflicts between the management and union members, delaying negotiations on wages. DSME posted KRW102.5 billion in operating profits, down 19.1 percent, the report discloses. The Korea Times adds that it is rare for an entire industry to officially request government support; however, officials said the plea is no surprise given the current market conditions. =========== T A I W A N =========== WINTEK CORP: Gets Loan Extensions; Seeks New Capital Injection -------------------------------------------------------------- Lisa Wang at Taipei Times reports that financially strapped Wintek Corp on September 24 said it has obtained an extension for the repayment of bank loans due later this month and is seeking new capital injection to fund its operations, but reassured investors that the company remains operational. Taipei Times, citing statements submitted to the Taiwan Stock Exchange, says Wintek is also planning to revitalize some under- utilized assets to boost its cash holdings and proposes to cut costs by streamlining operations and boosting manufacturing efficiency. "Wintek will endeavor to execute its restructuring plan to improve its operational performance and reduce operational expenses," company spokesman Jay Huang said in a statement, the report relays. According to Taipei Times, Wintek made the comments after the Chinese-language Next Magazine said the firm had run into operational difficulties over a credit crunch. The report said some of Wintek's suppliers complained about delayed payments, the report says. Wintek did not deny the report, saying it is negotiating with raw material suppliers to process payments at a later date, adds Taipei Times. Over the first eight months of the year, the Greater Taichung- based firm repaid NT$1.24 billion (US$41 million) in long-term debt and slashed short-term debt by NT$3.91 billion, the company, as cited by Taipei Times, said in a statement For now, Wintek has NT$5.01 billion in cash and cash equivalence, but has to pay back NT$17.77 billion in short-term debt and NT$9.44 billion of debt within a year, Taipei Times discloses. Wintek has lost NT$15.03 billion over the past three years and shed a further NT$3.42 billion in the first half of this year, the report notes. Based in Taichung, Taiwan, Wintek Corporation (TPE:2384) is principally engaged in the design, research, development, manufacture and sale of liquid crystal display (LCD) panels and liquid crystal modules (LCMs) for indium tin oxide (ITO) conductive glass, touch panels, light guides, twisted nematic (TN), super twisted nematic (STN) and thin film transistors (TFTs). The company's LCDs and LCMs are used in communication devices, digital still camera (DSCs), portable navigation devices (PNDs), moving picture experts group layer-3 audio (Mp3), moving picture experts group(MPEG) layer-4 audio(MP4), digital photo frame and ultra-mobile personal computers(UMPCs). The Company also offers electronic components, raw materials and semi-finished products. It distributes its products in Taiwan, Europe, the Americas and other Asian markets. =============== X X X X X X X X =============== * Large Companies with Insolvent Balance Sheets ----------------------------------------------- Total Total Shareholders Assets Equity Company Ticker (US$MM) (US$MM) ------- ------ ------ ------------ AUSTRALIA 360 CAPITAL OFFI TOF 88.94 -33.19 AAT CORP LTD AAT 32.50 -13.46 AAT CORP LTD AAT 32.50 -13.46 ATLANTIC LTD ATI 64.03 -517.87 AUSTRALIAN ZI-PP AZCCA 14.89 -65.04 AUSTRALIAN ZIRC AZC 14.89 -65.04 BESRA GOLD -CDI BEZ 67.38 -22.27 BIRON APPAREL LT BIC 19.71 -2.22 BLUESTONE GLOBAL BUE 46.32 -2.40 CLARITY OSS LTD CYO 13.99 -15.57 KASBAH RESOURCES KAS 18.24 -0.85 KASBAH RESOUR-NS KASN 18.24 -0.85 LEGEND MINING LEG 20.24 -0.66 MACQUARIE ATLAS MQA 1,643.30 -1,018.14 MIRABELA NICKEL MBN 158.54 -375.82 NATURAL FUEL LTD NFL 19.38 -121.51 QUICKFLIX LTD QFX 12.12 -4.38 QUICKFLIX LTD-N QFXN 12.12 -4.38 RIVERCITY MOTORW RCY 386.88 -809.13 SAVCOR GRP LTD SAV 25.90 -10.32 STERLING PLANTAT SBI 55.20 -11.32 STONE RESOURCES SHK 21.01 -5.58 STRAITS RESOURCE SRQ 185.04 -65.47 TZ LTD TZL 12.45 -10.10 VDM GROUP LTD VMG 17.70 -2.10 CHINA ANHUI GUOTONG-A 600444 75.69 -6.25 BAIOO 2100 88.34 -3.21 CHANG JIANG-A 520 85.63 -803.28 HUNAN TIANYI-A 908 56.58 -1.61 JIANGXI CHANG-A 600228 110.07 -9.15 LUOYANG GLASS-A 600876 203.45 -2.05 LUOYANG GLASS-H 1108 203.45 -2.05 NANNING CHEMIC-A 600301 344.15 -9.59 SHAANXI QINLIN-A 600217 349.25 -14.52 SHANG BROAD-A 600608 35.87 -0.22 SHANGHAI CHAOR-A 2506 577.79 -465.36 TIANGE 1980 139.51 -13.82 WUHAN BOILER-B 200770 203.68 -218.32 HONG KONG BEIJINGWEST INDU 2339 28.39 -57.06 BIRMINGHAM INTER 2309 59.86 -21.91 C FOOD&BEV GP 8272 50.10 -4.36 CHINA E-LEARNING 8055 13.33 -4.07 CHINA HEALTHCARE 673 27.19 -12.96 CHINA OCEAN SHIP 651 315.16 -76.51 CNC HOLDINGS 8356 42.92 -52.59 CROWN INTERNATIO 727 64.61 -5.12 EFORCE HLDGS LTD 943 55.72 -17.55 GR PROPERTIES LT 108 17.83 -52.36 GRANDE HLDG 186 205.00 -295.25 HARMONIC STR 33 32.93 -2.03 MASCOTTE HLDGS 136 18.90 -12.88 MEGA EXPO HOLDIN 1360 17.00 -0.53 PALADIN LTD 495 148.01 -14.35 PROVIEW INTL HLD 334 314.87 -294.85 SINO DISTILLERY 39 72.30 -7.54 SINO RESOURCES G 223 30.65 -17.93 SURFACE MOUNT SMT 41.44 -9.21 TITAN PETROCHEMI 1192 422.49 -1,073.54 INDONESIA APAC CITRA CENT MYTX 172.86 -12.52 ARPENI PRATAMA APOL 182.55 -333.91 ASIA PACIFIC POLY 330.86 -853.09 BAKRIE & BROTHER BNBR 956.98 -156.77 BAKRIE TELECOM BTEL 748.76 -111.71 BERLIAN LAJU TAN BLTA 1,074.01 -1,177.97 BERLIAN LAJU TAN BLTA 1,074.01 -1,177.97 BUMI RESOURCES BUMI 6,764.90 -242.51 ICTSI JASA PRIMA KARW 54.93 -6.88 JAKARTA KYOEI ST JKSW 23.75 -35.86 MATAHARI DEPT LPPF 282.58 -74.21 ONIX CAPITAL TBK OCAP 11.39 -1.66 PRIMARINDO ASIA BIMA 11.89 -16.86 RENUKA COALINDO SQMI 17.04 -0.33 SUMALINDO LESTAR SULI 77.74 -33.80 UNITEX TBK UNTX 18.83 -18.53 INDIA ABHISHEK CORPORA ABSC 53.66 -25.51 AGRO DUTCH INDUS ADF 85.09 -22.81 ALPS INDUS LTD ALPI 201.29 -41.70 AMIT SPINNING AMSP 12.85 -7.68 ARTSON ENGR ART 11.64 -10.64 ASHAPURA MINECHE ASMN 162.39 -16.64 ASHIMA LTD ASHM 63.23 -48.94 ATV PROJECTS ATV 48.47 -43.93 BELLARY STEELS BSAL 451.68 -108.50 BENZO PETRO INTL BPI 26.77 -1.05 BHAGHEERATHA ENG BGEL 22.65 -28.20 BINANI INDUS LTD BZL 1,163.38 -38.79 BLUE BIRD INDIA BIRD 122.02 -59.13 CELEBRITY FASHIO CFLI 24.96 -8.26 CHESLIND TEXTILE CTX 20.51 -0.03 CLASSIC DIAMONDS CLD 66.26 -6.84 COMPUTERSKILL CPS 14.90 -7.56 DCM FINANCIAL SE DCMFS 18.46 -9.46 DFL INFRASTRUCTU DLFI 42.74 -6.49 DIGJAM LTD DGJM 99.41 -22.59 DISH TV INDIA DITV 462.53 -52.19 DISH TV INDI-SLB DITV/S 462.53 -52.19 DUNCANS INDUS DAI 122.76 -227.05 ENSO SECUTRACK ENSO 15.57 -0.46 EURO CERAMICS EUCL 110.62 -6.83 EURO MULTIVISION EURO 36.94 -9.95 FERT & CHEM TRAV FCT 314.24 -76.26 GANESH BENZOPLST GBP 44.05 -15.48 GANGOTRI TEXTILE GNTX 54.67 -14.22 GOKAK TEXTILES L GTEX 46.36 -0.29 GOLDEN TOBACCO GTO 97.40 -18.24 GSL INDIA LTD GSL 29.86 -42.42 GSL NOVA PETROCH GSLN 16.53 -1.31 GUJARAT STATE FI GSF 15.26 -304.68 GUPTA SYNTHETICS GUSYN 44.18 -6.34 HARYANA STEEL HYSA 10.83 -5.91 HEALTHFORE TECHN HTEC 14.74 -46.64 HINDUSTAN ORGAN HOC 57.24 -51.76 HINDUSTAN PHOTO HPHT 49.58 -1,832.65 HIRAN ORGOCHEM HO 14.56 -4.59 HMT LTD HMT 106.62 -454.42 ICDS ICDS 13.30 -6.17 INDAGE RESTAURAN IRL 15.11 -2.35 INDOSOLAR LTD ISLR 193.78 -6.91 INTEGRAT FINANCE IFC 49.83 -51.32 JCT ELECTRONICS JCTE 80.08 -76.70 JENSON & NIC LTD JN 16.49 -71.70 JET AIRWAYS IND JETIN 2,856.84 -697.07 JET AIRWAYS -SLB JETIN/S 2,856.84 -697.07 JOG ENGINEERING VMJ 45.90 -5.28 KALYANPUR CEMENT KCEM 23.39 -42.66 KERALA AYURVEDA KERL 13.97 -1.69 KIDUJA INDIA KDJ 11.16 -3.43 KINGFISHER AIR KAIR 515.93 -2,371.26 KINGFISHER A-SLB KAIR/S 515.93 -2,371.26 KITPLY INDS LTD KIT 14.77 -58.78 KLG SYSTEL LTD KLGS 40.64 -27.37 KM SUGAR MILLS KMSM 19.14 -0.47 KSL AND INDUSTRI KSLRI 269.42 -14.19 LML LTD LML 43.95 -78.18 MADHUCON PROJECT MDHPJ 1,226.74 -21.90 MADRAS FERTILIZE MDF 289.78 -34.43 MAHA RASHTRA APE MHAC 14.49 -12.96 MALWA COTTON MCSM 44.14 -24.79 MAWANA SUGAR MWNS 142.07 -32.88 MILTON PLASTICS MILT 17.67 -51.22 MODERN DAIRIES MRD 38.61 -3.81 MOSER BAER INDIA MBI 727.13 -165.63 MOSER BAER -SLB MBI/S 727.13 -165.63 MTZ POLYFILMS LT TBE 31.94 -2.57 MURLI INDUSTRIES MRLI 262.39 -38.30 MYSORE PAPER MSPM 87.99 -8.12 NATL STAND INDI NTSD 22.09 -0.73 NAVCOM INDUS LTD NOP 10.19 -3.53 NICCO CORP LTD NICC 71.84 -4.91 NICCO UCO ALLIAN NICU 23.25 -83.90 NK INDUS LTD NKI 141.35 -7.71 NRC LTD NTRY 63.70 -53.01 NUCHEM LTD NUC 24.72 -1.60 PANCHMAHAL STEEL PMS 51.02 -0.33 PARAMOUNT COMM PRMC 124.96 -0.52 PARASRAMPUR SYN PPS 99.06 -307.14 PAREKH PLATINUM PKPL 61.08 -88.85 PIONEER DISTILLE PND 53.74 -5.62 PREMIER INDS LTD PRMI 11.61 -6.09 PRIYADARSHINI SP PYSM 20.80 -2.28 QUADRANT TELEVEN QDTV 127.72 -153.54 QUINTEGRA SOLUTI QSL 16.76 -17.45 RAMSARUP INDUSTR RAMI 433.89 -89.28 RATHI ISPAT LTD RTIS 44.56 -3.93 RELIANCE MED-SLB RMW/S 276.99 -88.49 RENOWNED AUTO PR RAP 14.12 -1.25 RMG ALLOY STEEL RMG 66.61 -12.99 ROYAL CUSHION RCVP 14.70 -75.18 SAAG RR INFRA LT SAAG 12.54 -4.93 SADHANA NITRO SNC 16.74 -0.58 SANATHNAGAR ENTE SNEL 49.23 -6.78 SANCIA GLOBAL IN SGIL 53.12 -30.47 SBEC SUGAR LTD SBECS 92.44 -5.61 SERVALAK PAP LTD SLPL 61.57 -7.63 SHAH ALLOYS LTD SA 168.13 -81.60 SHALIMAR WIRES SWRI 21.39 -24.28 SHAMKEN COTSYN SHC 23.13 -6.17 SHAMKEN MULTIFAB SHM 60.55 -13.26 SHAMKEN SPINNERS SSP 42.18 -16.76 SHREE GANESH FOR SGFO 44.50 -2.89 SHREE KRISHNA SHKP 14.62 -0.92 SHREE RAMA MULTI SRMT 38.90 -4.49 SHREE RENUKA SUG SHRS 2,162.34 -82.52 SHREE RENUKA-SLB SHRS/S 2,162.34 -82.52 SIDDHARTHA TUBES SDT 44.95 -15.37 SIMBHAOLI SUGAR SBSM 268.76 -54.47 SPICEJET LTD SJET 489.96 -170.22 SQL STAR INTL SQL 10.58 -3.28 STATE TRADING CO STC 556.35 -392.74 STELCO STRIPS STLS 14.90 -5.27 STI INDIA LTD STIB 21.69 -2.13 STL GLOBAL LTD SHGL 30.73 -5.62 STORE ONE RETAIL SORI 15.48 -59.09 SUPER FORGINGS SFS 14.62 -7.00 SURYA PHARMA SUPH 370.28 -9.97 SUZLON ENERG-SLB SUEL/S 5,061.62 -53.02 SUZLON ENERGY SUEL 5,061.62 -53.02 TAMILNADU JAI TNJB 17.07 -1.00 TATA METALIKS TML 122.76 -3.30 TATA TELESERVICE TTLS 1,311.30 -138.25 TATA TELE-SLB TTLS/S 1,311.30 -138.25 TODAYS WRITING TWPL 18.58 -25.67 TRIUMPH INTL OXIF 58.46 -14.18 TRIVENI GLASS TRSG 19.71 -10.45 TUTICORIN ALKALI TACF 19.86 -19.58 UDAIPUR CEMENT W UCW 11.38 -10.53 UNIFLEX CABLES UFCZ 47.46 -7.49 UNIWORTH LTD WW 149.50 -151.14 UNIWORTH TEXTILE FBW 22.54 -35.03 USHA INDIA LTD USHA 12.06 -54.51 VANASTHALI TEXT VTI 14.59 -5.80 VENUS SUGAR LTD VS 11.06 -1.08 WANBURY LTD WANB 141.86 -3.91 WEBSOL ENERGY SY WESL 105.10 -23.79 JAPAN GOYO FOODS INDUS 2230 11.93 -1.86 LCA HOLDINGS COR 4798 19.37 -7.17 OPTROM INC 7824 17.71 -2.66 PIXELA CORP 6731 15.08 -1.63 KOREA HYUNDAI CEMENT 6390 454.92 -262.92 SHINIL ENG CO 14350 199.04 -2.53 STX CORPORATION 11810 1,275.13 -484.08 STX ENGINE CO LT 77970 1,170.67 -62.72 TEC & CO 8900 139.98 -16.61 TONGYANG INC 1520 1,068.15 -452.52 TONGYANG INC-2PF 1527 1,068.15 -452.52 TONGYANG INC-3RD 1529 1,068.15 -452.52 TONGYANG INC-PFD 1525 1,068.15 -452.52 VERITAS INVESTME 19660 16.04 -0.09 MALAYSIA DING HE MINING 705 75.97 -26.38 HAISAN RESOURCES HRB 39.97 -11.83 HIGH-5 CONGLOMER HIGH 34.30 -46.85 ML GLOBAL BHD MLG 17.74 -3.63 PERWAJA HOLDINGS PERH 632.62 -7.46 PETROL ONE RESOU PORB 51.39 -4.00 PHILIPPINES CYBER BAY CORP CYBR 13.72 -23.36 DFNN INC DFNN 13.15 -2.31 FILSYN CORP A FYN 23.11 -11.69 FILSYN CORP. B FYNB 23.11 -11.69 GOTESCO LAND-A GO 21.76 -19.21 GOTESCO LAND-B GOB 21.76 -19.21 LIBERTY TELECOMS LIB 91.11 -40.80 METRO GLOBAL HOL FC 40.90 -15.77 PICOP RESOURCES PCP 105.66 -23.33 STENIEL MFG STN 21.07 -11.96 UNIWIDE HOLDINGS UW 50.36 -57.19 SINGAPORE ADVANCE SCT LTD ASCT 19.68 -22.46 CHINA GREAT LAND CGL 16.52 -19.01 HL GLOBAL ENTERP HLGE 83.11 -4.63 OCEANUS GROUP LT OCNUS 85.03 -5.53 QT VASCULAR LTD QTVC 10.21 -25.76 SCIGEN LTD-CUFS SIE 46.71 -55.42 SINGAPORE EDEVEL SGE 20.68 -9.36 TERRATECH GROUP TEGP 13.55 -5.24 TT INTERNATIONAL TTI 399.33 -11.36 UNITED FIBER SYS UFS 51.61 -76.05 THAILAND ABICO HLDGS-F ABICO/F 15.28 -4.40 ABICO HOLDINGS ABICO 15.28 -4.40 ABICO HOLD-NVDR ABICO-R 15.28 -4.40 ASCON CONSTR-NVD ASCON-R 59.78 -3.37 ASCON CONSTRUCT ASCON 59.78 -3.37 ASCON CONSTRU-FO ASCON/F 59.78 -3.37 BANGKOK RUBBER BRC 77.91 -114.37 BANGKOK RUBBER-F BRC/F 77.91 -114.37 BANGKOK RUB-NVDR BRC-R 77.91 -114.37 BIG CAMERA COP-F BIG/F 19.86 -13.03 BIG CAMERA CORP BIG 19.86 -13.03 BIG CAMERA -NVDR BIG-R 19.86 -13.03 CIRCUIT ELEC PCL CIRKIT 16.79 -96.30 CIRCUIT ELEC-FRN CIRKIT/F 16.79 -96.30 CIRCUIT ELE-NVDR CIRKIT-R 16.79 -96.30 ITV PCL-NVDR ITV-R 36.02 -121.94 K-TECH CONSTRUCT KTECH 38.87 -46.47 K-TECH CONSTRUCT KTECH/F 38.87 -46.47 K-TECH CONTRU-R KTECH-R 38.87 -46.47 KUANG PEI SAN POMPUI 17.70 -12.74 KUANG PEI SAN-F POMPUI/F 17.70 -12.74 KUANG PEI-NVDR POMPUI-R 17.70 -12.74 PATKOL PCL PATKL 52.89 -30.64 PATKOL PCL-FORGN PATKL/F 52.89 -30.64 PATKOL PCL-NVDR PATKL-R 52.89 -30.64 PICNIC CORP-NVDR PICNI-R 101.18 -175.61 PICNIC CORPORATI PICNI 101.18 -175.61 PICNIC CORPORATI PICNI/F 101.18 -175.61 SHUN THAI RUBBER STHAI 19.89 -0.59 SHUN THAI RUBB-F STHAI/F 19.89 -0.59 SHUN THAI RUBB-N STHAI-R 19.89 -0.59 TONGKAH HARBOU-F THL/F 62.30 -1.84 TONGKAH HARBOUR THL 62.30 -1.84 TONGKAH HAR-NVDR THL-R 62.30 -1.84 TRANG SEAFOOD TRS 15.18 -6.61 TRANG SEAFOOD-F TRS/F 15.18 -6.61 TRANG SFD-NVDR TRS-R 15.18 -6.61 TT&T PCL TTNT 589.80 -223.22 TT&T PCL-NVDR TTNT-R 589.80 -223.22 TT&T PUBLIC CO-F TTNT/F 589.80 -223.22 WORLD CORP -NVDR WORLD-R 15.72 -10.10 WORLD CORP PCL WORLD 15.72 -10.10 WORLD CORP PLC-F WORLD/F 15.72 -10.10 TAIWAN BEHAVIOR TECH CO 2341S 34.54 -2.57 BEHAVIOR TECH-EC 2341O 34.54 -2.57 HELIX TECH-EC 2479T 23.39 -24.12 HELIX TECH-EC IS 2479U 23.39 -24.12 HELIX TECHNOL-EC 2479S 23.39 -24.12 POWERCHIP SEM-EC 5346S 1,761.34 -296.10 TAIWAN KOL-E CRT 1606U 507.21 -147.14 TAIWAN KOLIN-EN 1606V 507.21 -147.14 TAIWAN KOLIN-ENT 1606W 507.21 -147.14 ********* 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, and Peter A. Chapman, Editors. Copyright 2014. 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 ***