/raid1/www/Hosts/bankrupt/TCRAP_Public/141121.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, November 21, 2014, Vol. 17, No. 231
Headlines
A U S T R A L I A
BILYARA AVIATION: First Creditors' Meeting Set For Nov. 28
GREGORYS TRANSPORT: Ferrier Hodgson Appointed as Receivers
LM INVESTMENT: ASIC Takes Civil Action vs. Founder, Ex-Directors
RACKCENTRAL: Cloud Hosting Company Placed in Liquidation
C H I N A
CHINA CERAMICS: Receives Nasdaq Listing Non-Compliance Notice
CHINA MINZHONG: Moody's Withdraws Ba2 Corporate Family Rating
SHANGHAI PUDONG: Fitch Affirms 'BB+' IDR; Outlook Stable
SUNTECH POWER: Wins Ch.15 Recognition; Venue Transfer Bid Tossed
YANLORD LAND: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR
ZOOMLION HEAVY: Fitch Revises Outlook to Neg. & Affirms 'BB+' IDR
H O N G K O N G
LDK SOLAR: Hong Kong Court Sanctions Schemes of Arrangement
I N D I A
AVADH INFRA: ICRA Assigns B+ Rating to INR50cr Term Loan
BARDIA JEWELLERS: ICRA Reaffirms B+ Rating on INR7.5cr Cash Loan
BEMCO HYDRAULICS: CRISIL Ups Rating on INR105MM Bank Loan From D
CITY MAX: CRISIL Lowers Rating on INR80MM Term Loan to 'D'
DAKSHIN EXPORTS: CRISIL Reaffirms B+ Rating on INR13MM LT Loan
EVERPLUS PLASTICS: CRISIL Reaffirms B Rating on INR28.7MM Loan
H S SANDHU: ICRA Assigns B+ Rating to INR6.25cr Fund Based Loan
JANTA RICE: ICRA Reaffirms 'B' Rating on INR9.50cr Cash Credit
KULDEVI COTTON: ICRA Assigns B Rating to INR4.75cr Cash Credit
LAXMI COTTEX: CRISIL Reaffirms B+ Rating on INR75MM Cash Credit
MAGPPIE EXPORTS: CRISIL Cuts Rating on INR200MM Cash Loan to B-
MD. QUIYAMUDDIN: CRISIL Cuts Rating on INR84MM Cash Credit to B
MISHKA GOLD: CRISIL Cuts Rating on INR350MM Cash Credit to B+
MUNDHRA CONTAINER: ICRA Reassigns B+ Rating to INR9.75cr Loan
PHALANX LABS: CRISIL Lowers Rating on INR315MM LT Loan to 'D'
POORVI HOUSING: CRISIL Assigns B Rating to INR100MM Term Loan
RAIHAN HEALTHCARE: CRISIL Assigns B+ Rating to INR220MM LT Loan
RAJ KUMARI: CRISIL Assigns B- Rating to INR119MM Bank Loan
RYTHU MITRA: CRISIL Reaffirms D Rating on INR102.5MM LT Loan
SHREE DEOSHARWALI: CARE Reaffirms B+ Rating on INR14cr Bank Loan
SHREE GANESH: CRISIL Reaffirms B Rating on INR99MM Cash Credit
SOUNDARYA DECORATORS: CRISIL Ups Rating on INR117.5MM Loan to B
SPRINGBOARD ENTERPRISES: ICRA Rates INR5cr Fund Based Loan at 'B'
SYMCOM EXIM: ICRA Place B Rating on INR25cr Working Capital Loan
TIRUPATI STARCH: ICRA Reaffirms B+ Rating on INR23.08cr Term Loan
TRISHA MARKETING: ICRA Assigns B Rating to INR1cr Cash Credit
VAISHNO RICE: CRISIL Rates INR100MM Warehouse Receipts at B+
VSSN KALLUR: CRISIL Assigns B- Rating to INR110MM Cash Credit
ZURI HOTELS: ICRA Reaffirms 'D' Rating on INR20cr Term Loan
J A P A N
JAPAN: Recession Will Hurt Some U.S. Companies, AP Reports
SONY CORPORATION: Fitch Affirms 'BB-' IDR, Outlook Now Stable
N E W Z E A L A N D
BASKETBALL OTAGO: Set to Call Liquidator Next Month
P A K I S T A N
PAKISTAN: S&P Affirms 'B-' LT Sovereign Credit Rating
S I N G A P O R E
OW BUNKER: Australian Unit Up For Sale
OW BUNKER: Second Singaporean Unit Files for Liquidation
X X X X X X X X
* Large Companies with Insolvent Balance Sheets
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A U S T R A L I A
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BILYARA AVIATION: First Creditors' Meeting Set For Nov. 28
----------------------------------------------------------
Fabian Kane Micheletto -- fabian.micheletto@svp.com.au -- and
Darren John Vardy -- darren.vardy@svp.com.au -- of SV Partners
were appointed as administrators of Bilyara Aviation Services Pty
Ltd and Bilyara Blue Seal Engines Pty Ltd on Nov. 19, 2014.
A first meeting of the creditors for each of the Companies will be
held at Level 1, 305-307 Kingsway, Caringbah, in New South Wales
on Nov. 28, 2014, 11:30 a.m. and 12:30 p.m., respectively.
GREGORYS TRANSPORT: Ferrier Hodgson Appointed as Receivers
----------------------------------------------------------
Ferrier Hodgson were appointed Receivers of the fixed assets of
Gregorys Transport Pty Ltd and its related entity, Transport and
Asset Management Pty Ltd on Nov. 14, 2014.
Gregorys was established in 1982 and has branches in Melbourne,
Sydney, Brisbane and Perth. It is one of the largest privately
owned transport companies in Australia and its services include
transport, logistics, cargo handling, quarantine inspection,
fumigation and bonded warehousing.
Brendan Richards of Ferrier Hodgson was appointed Receiver and has
assumed responsibility for the fixed assets of the Company.
The appointment is limited to recovering certain fleet assets, and
does not extend to managing the company. The immediate future of
the business remains in the hands of the director,
Mr. Greg Westaway, and his management team. Enquires about the
future of the business, its customers, employees and suppliers
should be directed to Mr. Westaway.
"My role is to simply ensure the best financial outcome possible
for my clients who have been put in a very difficult position. I
will be looking to locate buyers for the assets as soon as
possible and we will be investigating both private placement and
auction to achieve a swift outcome," said Mr Richards.
Mr. Richards expressed his disappointment in seeing another
Australian transport business fail. "As a logistics specialist I
know that many of these business failures are completely
avoidable. As soon as it becomes evident that a business is in
trouble the most important asset is time. Businesses that
recognise they are in trouble early and work aggressively to
combat their problems can often be saved. When they don't, failure
is the inevitable result."
LM INVESTMENT: ASIC Takes Civil Action vs. Founder, Ex-Directors
----------------------------------------------------------------
The Australian Securities and Investment Commission has started
legal action against LM Investment Management Ltd (LMIM) founder,
Peter Charles Drake, and former directors, seeking financial
penalties and banning orders following the collapse of the Gold
Coast-based fund manager.
ASIC's civil penalty proceedings in the Federal Court of Australia
are against Mr Drake, Francene Maree Mulder, Eghard van der Hoven,
Simon Jeremy Tickner, and Lisa Maree Darcy.
ASIC alleges Mr Drake used his position to gain an advantage for
himself and the former directors breached their director's duties
for failing to act with the proper degree of care and diligence
regarding transactions involving the LM Managed Performance Fund
(MPF).
Specifically, ASIC's action focuses on the conduct of the
directors in signing off on a series of loans to Maddison Estate
Pty Ltd, which Mr Drake owned and controlled, in 2011 and 2012.
MPF loaned funds to Maddison Estate Pty Ltd, to develop a property
development on the Gold Coast known as 'Maddison Estate'. Mr Drake
was the sole director of Maddison Estate Pty Ltd and the
beneficiary of a discretionary trust, managed by another company
controlled and owned by him, that held all the beneficial
ownership in the company.
ASIC Commissioner Greg Tanzer said, "Investors should be able to
have confidence that the people responsible for managing their
investments act appropriately, take a diligent and intelligent
interest in the affairs of the company, and apply an enquiring
mind to the responsibilities placed upon them."
The maximum fine for a director breaching their duties is $200,000
for each contravention. As well as fines, ASIC is also seeking to
disqualify Mr Drake and the former directors from managing
companies and providing financial services.
The proceedings are listed for a directions hearing in the Federal
Court in Brisbane on Nov. 25, 2014.
Between 2008 and 2012, through numerous loans using MPF funds,
Maddison's loan limit was increased from $40 million to $280
million. By the time LMIM entered into administration, and
although a development approval had been procured and some
preliminary land clearing had taken place, no construction work
had commenced on the development, no plans of subdivision had been
registered and none of the proposed housing lots had been sold.
Loan extensions in 2011 and 2012 were approved by the directors in
the absence of independent valuations or feasibility studies. ASIC
alleges decisions taken by Mr Drake and the former directors to
vary and extend Maddison's loan from $115 million to $180 million
in September 2011, and from $180 million to $280 million in August
2012, were not decisions which the directors of a trustee in the
position of LMIM should have taken.
ASIC also alleges that a $9.8 million 'loan re-establishment fee',
payable to LMIM (as trustee of MPF), which was extended to
Maddison Estate Pty Ltd as part of the 2012 loan extension, was
levied to ensure that the LM group of companies (principally
controlled or owned by Mr Drake) could book a financial year
profit.
ASIC alleges contravention of:
* section 180 (duty of care and diligence), section 181
(duty to act for a proper purpose) and section 182
(duty not to use position to gain an advantage) of the
Corporations Act 2001, by Mr Drake, in respect of the
2011 loan extension and the 2012 loan extension;
* section 180 by Ms Mulder and Mr van der Hoven in respect
of the 2011 loan extension and the 2012 loan extension,
and
* section 180 by Mr Tickner and Ms Darcy in respect of the
2011 loan extension.
ASIC's LM Investment Management Ltd actions
LMIM was the responsible entity for seven registered managed
investment schemes and the trustee for MPF, an unregistered
managed investment scheme with about 4,500 investors. More than
$400 million was invested in MPF. In total, LMIM was responsible
for managing at least $800 million on behalf of approximately
12,000 investors in Australia and overseas.
ASIC has taken other action and been involved in other court
proceedings arising out of the collapse of LMIM.
About LM Investment
New Zealand Herald reported that voluntary administrators have
been appointed to LM Investment Management, a beleaguered
Australian firm that controlled a frozen mortage fund which
New Zealanders had more than NZ$100 million tied up in. LM
directors on March 19, 2013, appointed John Park and Ginette
Muller of FTI Consulting as voluntary administrators, blaming the
move on liquidity problems caused by a smear campaign.
LM is the responsible entity of these registered managed
investment schemes:
-- LM Cash Performance Fund;
-- LM First Mortgage Income Fund;
-- LM Currency Protected Australian Income Fund;
-- LM Institutional Currency Protected Australian Income Fund;
-- LM Australian Income;
-- LM Australian Structured Products Fund; and
-- The Australian Retirement Living Fund.
LM also operates the unregistered LM Managed Performance Fund.
The Supreme Court of Queensland in April appointed KordaMentha and
its affiliate firm Calibre Capital as joint trustees of the AUD350
million Gold Coast-based LM Managed Performance Fund (LMPF).
Ms. Muller and Mr. Park were appointed liquidatorz of LM
Investment Management Limited on August 1.
RACKCENTRAL: Cloud Hosting Company Placed in Liquidation
--------------------------------------------------------
Kayleen Chen at InsolvencyNews reports that web hosting provider,
RackCentral, has been placed into liquidation. The company has
left creditors nearly AUD1.5 million out of pocket.
Vocus and The Summit Group are two of the largest creditors; they
have lodged statutory demands against the company, the report
says. However, there are some disputes over the amount of the
debts claimed. At this stage, both two parties will have to wait
until the liquidator's independent investigations have been
completed.
According to InsolvencyNews, the company's director said that the
reasons of the collapse, "Was due to him putting trust in the
people he was dealing with."
"Also, the Vocus account manager has changed three times, and that
Vocus has put effort into finding problems with his contractors,
rather than trying to resolve the outstanding issues."
"Liquidators' major responsibilities include investigating any
voidable transactions, insolvent trading and any potential
directors' misconducts," the report quotes Jamieson Louttit of
Insolvency and Advisory firm Jamieson Louttit & Associates as
saying.
RackCentral supplied internet hosting infrastructure solutions to
its clients.
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C H I N A
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CHINA CERAMICS: Receives Nasdaq Listing Non-Compliance Notice
-------------------------------------------------------------
China Ceramics Co., Ltd., a Chinese manufacturer of ceramic tiles
used for exterior siding and for interior flooring and design in
residential and commercial buildings, on Nov. 18 disclosed that on
November 12, 2014, it received a written notice from the Listing
Qualifications department of The Nasdaq Stock Market indicating
that the Company is not in compliance with the minimum bid price
requirement of $1.00 set forth in Nasdaq Listing Rule 5450(a)(1)
for continued listing on the Nasdaq Global Market.
The Nasdaq Listing Rules require listed securities to maintain a
minimum bid price of $1.00 per share and, based upon the closing
bid price for the 30 consecutive days ended November 11, 2014, the
Company did not meet this requirement. China Ceramics has been
provided a 180 day period in which to regain compliance. During
this period, the closing bid price of the Company's ordinary
shares must be at least $1.00 for a minimum of ten consecutive
business days to regain compliance. In addition, following the
initial 180 day period, China Ceramics may be eligible for an
additional 180 day period to regain compliance after review by the
Nasdaq Staff.
China Ceramics will work to regain compliance during the initial
180 day compliance period and will actively monitor its
performance with respect to the listing standards. The
notification letter has no effect on the listing of the Company's
ordinary shares at this time and the shares will continue to trade
on the Nasdaq Global Market under the ticker "CCCL".
About China Ceramics Co., Ltd.
China Ceramics Co., Ltd. -- http://www.cceramics.com-- is a
manufacturer of ceramic tiles in China. The Company's ceramic
tiles are used for exterior siding, interior flooring, and design
in residential and commercial buildings. China Ceramics'
products, sold under the "Hengda" or "HD", "Hengdeli" or "HDL",
the "TOERTO" and "WULIQIAO" brands, and the "Pottery Capital of
Tang Dynasty" brands, are available in over 2,000 style, color and
size combinations and are distributed through a network of
exclusive distributors as well as directly to large property
developers.
CHINA MINZHONG: Moody's Withdraws Ba2 Corporate Family Rating
-------------------------------------------------------------
Moody's Investors Service has withdrawn China Minzhong Food
Corporation Ltd's Ba2 corporate family rating with a stable
outlook.
Ratings Rationale
Moody's has withdrawn the rating for its own business reasons.
China Minzhong is one of the few integrated vegetable processing
companies in China with its own facilities and cultivation bases.
Its extensive processing platform is capable of air-drying,
freeze-drying, fresh-packing, as well as quick freezing and
brining vegetables.
SHANGHAI PUDONG: Fitch Affirms 'BB+' IDR; Outlook Stable
--------------------------------------------------------
Fitch Ratings affirmed the Long-Term Foreign-Currency Issuer
Default Ratings (IDRs) of ten Chinese mid-tier commercial banks.
The Outlooks are Stable. At the same time, the Viability Rating
(VR) of China Guangfa Bank Co., Ltd was downgraded to 'b' from
'b+'. Fitch affirmed the VRs of the other banks.
The ten banks are:
-- China Merchants Bank,
-- China CITIC Bank,
-- China Everbright Bank,
-- Shanghai Pudong Development Bank,
-- China MinSheng Banking Corporation,
-- Industrial Bank Co., Ltd,
-- Ping An Bank Co., Ltd,
-- Hua Xia Bank,
-- China Guangfa Bank Co., Ltd, and
-- Bank of Beijing.
The review of the mid-tier banks' ratings took into account their
latest financial results and operational trends, which featured
continued asset quality weakness, as expected, with both reported
NPLs and overdue loans rising even after sizeable NPLs were
written off and/or disposed.
The continued growth in off-balance sheet activities and increases
in debt receivables, of which some are used as substitutes for
loans, makes it more difficult to gauge where the ultimate risks
reside. Intensifying competition in deposits and the sale of
wealth management products (WMP) continued to pressure funding
costs, and hence net interest margins, at the mid-tier banks. To
offset this, the mid-tier banks continue to place heavy emphasis
on growing micro and small enterprise (MSE) loans to boost their
loan yields, but provision buffers are falling as new provisions
are insufficient to keep pace with NPL increases. The need to
comply with higher capital buffers at a time when profitability is
weakening has put pressures on capital for most mid-tier banks.
KEY RATING DRIVERS - IDRS, SUPPORT RATINGS, SUPPORT RATING FLOORS
All of the IDRs are based on state support, and are at the banks'
Support Rating Floors (SRFs), reflecting continued expectations
that extraordinary support from the central government would be
forthcoming in the event of stress.
China Merchants Bank, China CITIC Bank and China Everbright Bank
have Support Ratings (SRs) of '2' and SRFs of 'BBB', indicating a
high probability of state support, if needed. This is based on a
combination of factors such as size and domestic significance (for
China Merchants Bank and China CITIC Bank), ownership by state-
owned conglomerates (all three), direct central government
ownership (for China Everbright Bank), and a history of past
government support (for China Everbright Bank). Fitch believes
the planned initial corporate restructuring exercises at the
parent group companies for China CITIC Bank and China Everbright
Bank would not materially affect the state's propensity to support
these two banks.
The remaining seven banks have SRs of '3' and SRFs of 'BB+',
indicating a moderate probability of central government support if
needed. Banks in this group are mostly smaller in size and have
no direct central government ownership. Three of the banks have
local governments as their largest shareholders. However, in a
stress scenario, Fitch believes that the ability of local
governments to support banks on a timely basis would be limited,
and hence support would effectively need to flow from the central
government.
RATING SENSITIVITIES - IDRS, SUPPORT RATINGS, SUPPORT RATING
FLOORS
Any changes to IDRs, SRs and SRFs will be tied to shifts in the
perceived willingness and/or ability of the central government to
provide extraordinary support to the banks, which also take into
account the banks' relative systemic importance and ownership.
The banking system's continued rapid growth, combined with the
rise in nonbank credit extension, means that the potential claims
on the state are increasing. The longer financial system leverage
is permitted to rise, the greater the potential erosion of the
state's ability to support less systemically important banks,
leading to pressure on mid-tier banks' support-driven IDRs.
In the meantime, authorities in China have not yet provided any
clear guidance on the classification of domestic systemically
important banks - such guidance could lead to changes in the SRs,
SRFs and, in turn, the IDRs of the banks. A reduction in the
state ownership in the mid-tier banks, either directly or
indirectly through state-owned-enterprises, may affect the
propensity of the state to support these banks.
KEY RATING DRIVERS - VIABILITY RATINGS
The VRs of China's 10 mid-tier banks range from 'bb-' to 'b',
reflecting varying degrees of weak intrinsic strength (taking into
account off-balance sheet activity); concerns about the level and
pace of credit growth in the financial system; issues with
transparency and corporate governance; as well as nascent
regulatory and legal systems. Fitch expects asset quality to
deteriorate in coming years, though reported asset quality metrics
may continue to benefit from NPL write-offs/disposals,
informal/ordinary support from authorities to minimise defaults
and reclassification/securitization of credit as WMPs, debt
securities or interbank claims.
Mid-tier banks' large off-balance-sheet activities and rapidly
expanding transactions with nonbanks are also a concern. Non-loan
credit now comprises 35% of total financial sector credit
outstanding at 1H14, up from 21% in 2008. Meanwhile, issuance of
WMPs continues to grow as competition for deposits intensifies.
These products are changing the nature of banks' stable, cheap
deposit base into one that is more expensive, mobile, and short-
term. WMPs' short tenors, asset-liability mismatches, and limited
disclosure about underlying assets present a significant
contingent risk to issuing banks. Mid-tier banks are more reliant
on WMPs and derive a larger share of their funding through these
products than state banks.
Fitch's analysis of Chinese banks' asset quality places a much
heavier emphasis on loss-absorption capacity (which includes
factors such as capitalisation, loan loss reserve coverage, and
profitability) than loan classification data. Most mid-tier banks
have experienced deterioration in their loss absorption capacity
since 2012, and Fitch estimates the mid-tier banks can only
withstand a rise in impaired credit to 1.5%-6.6% (average 3.8%)
currently, compared to 6%-8% for the state banks, after which
varying degrees of support would be required. However,
recognition of asset impairment is likely to be a protracted
process. In the meantime, delinquencies will continue to manifest
in eroding liquidity and cash buffers, as inflows from distressed
borrowers remain weak and more resources are directed at
forbearance and support.
The rating actions reflect the relative deterioration in intrinsic
strength of China Guangfa Bank compared to peers at the same
rating level. The chief drivers behind the VR downgrade for China
Guangfa Bank were: capital that is the lowest among Fitch-rated
Chinese peers and that is eroding, which in turn led to a low
loss-absorption capacity; rapid expansion of investments in trusts
and asset management products that exposes the bank to greater
non-loan credit risks; and weak profitability and pressure on loan
provisioning to meet with regulatory standards that further limits
internal capital generation.
While there was broad-based deterioration in such parameters as
funding and liquidity, loss-absorption capacity, involvement in
off-balance-sheet activities, and franchise strength among the
mid-tier banks, the VRs were affirmed for those entities whose
deterioration were not deemed material enough to merit a downgrade
in this review. This was partly attributable to the raising of
additional capital in 2013 at some mid-tier banks, which helped
increased their risk buffers. Fitch took into account situations
where capital had been raised by banks to offset rapid growth and
maintain loss-absorption capacity at levels in line with similarly
rated peers.
RATING SENSITIVITIES - VIABILITY RATINGS
Downgrades of the mid-tier banks' VRs could be triggered if
(absent adequate external or internal capital being raised)
excessive growth renders capital more vulnerable to deterioration,
concentrations in exposures increase relative to peers, if asset
quality weakening begins to undermine solvency, or if funding and
liquidity strains become more binding. Although the sector
benefits from a degree of ordinary support from Chinese
authorities, most notably in the form of market liquidity
injection, major disruptions in the issuance of WMPs, quasi-
substitutes for time deposits, or interbank market distress could
also lead to VR downgrades for those entities highly exposed to,
or that experience a material increase in, these activities.
VR upgrades for China's mid-tier banks are possible if Fitch
considers the operating environment to have stabilized, though
this is not anticipated in the near term. This would likely be
evidenced by more manageable and sustainable pace in both loan and
non-loan credit growth, reduced off-balance-sheet activities (or
greater transparency around these activities), improved loss-
absorption capacity (building risk buffers such as raising of
additional capital), and stronger deposit funding and liquidity.
The full list of rating actions on China's 10 mid-tier banks are:
China Merchants Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable
Outlook
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Viability Rating affirmed at 'bb-'
China CITIC Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable
Outlook
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Viability Rating affirmed at 'b+'
China Everbright Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BBB'; Stable
Outlook
-- Support Rating affirmed at '2'
-- Support Rating Floor affirmed at 'BBB'
-- Viability Rating affirmed at 'b+'
Shanghai Pudong Development Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b+'
China MinSheng Banking Corporation
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b+'
Industrial Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b'
Ping An Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b'
Hua Xia Bank
-- Long-Term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'b'
China Guangfa Bank
-- Long-term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating downgraded to 'b' from 'b+'
Bank of Beijing
-- Long-term Foreign-Currency IDR affirmed at 'BB+'; Stable
Outlook
-- Support Rating affirmed at '3'
-- Support Rating Floor affirmed at 'BB+'
-- Viability Rating affirmed at 'bb-'
SUNTECH POWER: Wins Ch.15 Recognition; Venue Transfer Bid Tossed
----------------------------------------------------------------
U.S. Bankruptcy Judge Stuart M. Bernstein issued Findings of Fact
and Conclusions of Law granting the petition for Chapter 15
recognition of Suntech Power Holdings Co. Ltd.'s provisional
liquidation in the Cayman Islands as a foreign main proceeding.
David Walker and Ian Stokoe, the Joint Provisional Liquidators, or
JPLs, filed the Chapter 15 petition.
Judge Bernstein also overruled Solyndra Residual Trust's objection
to the petition for recognition, and denied the Trust's request to
transfer the venue of the chapter 15 case to the Northern District
of California.
A copy of Judge Bernstein's Nov. 17 Findings of Fact and
Conclusions of Law is available at http://bit.ly/1AfOsfNfrom
Leagle.com.
The JPLs are represented by:
Peter Friedman, Esq.
O'MELVENY & MYERS LLP
1625 Eye Street, NW
Washington, DC 20006
Tel: 202-383-5302
Fax: 202-383-5414
E-mail: pfriedman@omm.com
- and -
Daniel Shamah, Esq.
Matthew Kremer, Esq.
O'MELVENY & MYERS LLP
Times Square Tower
7 Times Square
New York, NY 10036
Tel: 212-326-2138
Fax: 212-326-2061
E-mail: dshamah@omm.com
mkremer@omm.com
- and -
Suzanne Uhland, Esq.
Jennifer Taylor, Esq.
O'MELVENY & MYERS LLP
Two Embarcadero Center, 28th Floor
San Francisco, CA 94111
Tel: 415-984-8941
Fax: 415-984-8701
E-mail: suhland@omm.com
jtaylor@omm.com
Solyndra Residual Trust is represented by:
John A. Morris, Esq.
Jason H. Rosell, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
780 Third Avenue, 34th Floor
New York, NY 10017-2024
E-mail: jmorris@pszjlaw.com
jrosell@pszjlaw.com
- and -
Debra I. Grassgreen, Esq.
PACHULSKI STANG ZIEHL & JONES LLP
150 California Street, 15th Floor
San Francisco, CA 94111-4500
E-mail: dgrassgreen@pszjlaw.com
- and -
W. Gordon Dobie, Esq.
WINSTON & STRAWN LLP
26, Valovaya Street, 9th Floor
115054 Moscow IL
RU
Tel: +1 (312) 558-5691
Fax: +1 (312) 558-5700
E-mail: wdobie@winston.com
- and -
Eric E. Sagerman, Esq.
Justin E. Rawlins, Esq.
WINSTON & STRAWN LLP
333 S. Grand Avenue, 38th Floor
Los Angeles, CA 90071-1543
Tel: +1 (213) 615-1829
Fax: +1 (213) 615-1750
E-mail: esagerman@winston.com
jrawlins@winston.com
- and -
William C. O'Neil, Esq.
WINSTON & STRAWN LLP
35 W. Wacker Drive
Chicago, IL 60601-9703
Tel: +1 (312) 558-5308
Fax: +1 (312) 558-5700
E-mail: woneil@winston.com
About Suntech
Suntech Power Holdings Co., Ltd. (OTC: STPFQ) produces solar
products for residential, commercial, industrial, and utility
applications. Suntech has delivered more than 25,000,000
photovoltaic panels to over a thousand customers in more than 80
countries.
Suntech Power Holdings Co., Ltd., received from the trustee of its
3 percent Convertible Notes a notice of default and acceleration
relating to Suntech's non-payment of the principal amount of
US$541 million that was due to holders of the Notes on March 15,
2013. That event of default has also triggered cross-defaults
under Suntech's other outstanding debt, including its loans from
International Finance Corporation and Chinese domestic lenders.
Suntech Power had involuntary Chapter 7 bankruptcy proceedings
initiated against it on Oct. 14, 2013, in U.S. Bankruptcy Court in
White Plains, New York (Bankr. S.D.N.Y. Case No. 13-bk-13350), by
holders of more than $1.5 million of defaulted securities under a
2008 $575 million indenture. The Chapter 7 Petitioners are
Trondheim Capital Partners, L.P., Michael Meixler, Longball
Holdings, LLC, and Jiangsu Liquidators, LLC. They are
represented by Jay Teitelbaum, Esq., at Teitelbaum & Baskin LLP,
in White Plains, New York.
Suntech Power on Jan. 31, 2014, disclosed that it has signed a
Restructuring Support Agreement relating to the petition for
involuntary bankruptcy filed against it under chapter 7 of the
U.S. Bankruptcy Code. Under the RSA, the parties agreed that
chapter 7 proceedings will be dismissed following recognition of
the provisional liquidation proceeding previously filed by the
Company in the Cayman Islands under chapter 15 of the U.S.
Bankruptcy Code.
On Feb. 21, 2014, David Walker and Ian Stokoe, the joint
provisional liquidators of Suntech Power Holdings Co., Ltd.,
appointed by the Grand Court of the Cayman Islands, commenced a
Chapter 15 proceeding (Bankr. S.D.N.Y. Case No. 14-10383). The
Chapter 15 Petitioners are represented by Jennifer Taylor, Esq.,
and Diana Perez, Esq., at O'Melveny & Myers LLP. According to the
Chapter 15 petition, Suntech has more than $1 billion in both
assets and debts.
YANLORD LAND: S&P Revises Outlook to Neg. & Affirms 'BB-' CCR
-------------------------------------------------------------
Standard & Poor's Ratings Services said that it had revised its
outlook on Yanlord Land Group Ltd. to negative from stable. At
the same time, S&P affirmed its 'BB-' long-term corporate credit
rating on the China-based property developer and its 'BB-' long-
term issue rating on the company's outstanding senior unsecured
notes. As a result of the outlook revision, S&P lowered its long-
term Greater China regional scale ratings on Yanlord and the notes
to 'cnBB' from 'cnBB+'.
"We revised the outlook because Yanlord's high-end product
positioning casts uncertainty over the company's recovery
prospects in 2015, and we believe this could weaken its cash flow
adequacy and leverage," said Standard & Poor's credit analyst
Dennis Lee.
In S&P's view, the correction in China's property market will
continue over the next 12 months, which would drive the demand for
mass-market products and not favor Yanlord's product positioning.
In addition, S&P expects the company's sales and revenue
recognition to be lower than our projection this year. As a
result, its credit protection metrics will weaken and key ratios
such as EBITDA interest coverage will drop below S&P's downgrade
trigger of 3x in 2014.
"We expect Yanlord to miss its 2014 contracted sales target of
Chinese renminbi (RMB) 16 billion. In our base case, we estimate
the company's contracted sales to be about RMB13 billion, which is
about 13% lower than its sales in 2013. Yanlord's contracted
sales were RMB6.3 billion in the first three quarters of this
year. We factored in a sales recovery in the fourth quarter as
the company launches more projects during this time. We attribute
Yanlord's lower-than-expected sales performance to a weakened
market sentiment and tightened credit conditions during the year.
We expect the company's contracted sales to grow 15% in 2015, to
reflect higher construction expenditure for new projects in 2014.
However, Yanlord's mid-to-high-end product positioning will remain
a challenge for sales under the current market condition where
end-users dominate demand," S&P said.
"We lowered our estimate of Yanlord's revenue recognition to about
RMB12 billion. The company recognized revenue of RMB4.25 billion
in the first three quarters of 2014, down 35% from the same period
last year. We note that the company has about RMB11.8 billion of
unrecognized sales as of the end of Sept., of which it expects to
recognize about 60% in this year. However, Yanlord's key credit
protection metrics could be weaker than what we expect if the
company experiences any delivery slippage," S&P added.
S&P expects that Yanlord's profitability will gradually decline in
2014 and 2015. In S&P's view, the company's change in business
strategy and product mix to increase sales for end-user demand and
adopt a more competitive pricing strategy to increase asset churn
would pressure its margin.
"In our base-case scenario, we expect Yanlord to manage its
borrowings with discipline. We estimate that the company's debt
will moderately increase to about RMB19.5 billion in 2014 and
RMB22 billion in 2015, from RMB18 billion in 2013. However, we
forecast that Yanlord's EBITDA interest coverage will drop to
2.5x-3x in 2014, from 3.2x in 2013, because of lower-than-expected
sales and revenue recognition and declining profitability. At the
same time, the company's debt-to-EBITDA ratio will also weaken to
5x-5.5x, from 4.7x. Yanlord's credit metrics could slightly
improve in 2015, given our expectation of higher sales. However,
we estimate that EBITDA interest coverage will remain less than 3x
and the debt-to-EBITDA ratio will stay about 5x. We therefore
revised the company's financial risk profile to "aggressive" from
"significant"," S&P noted.
"The affirmed rating reflects Yanlord's concentration risk in the
mid-to-high-end product segment and increasing leverage as a
result of slow sales and declining profitability," said Mr. Lee.
"The company's good financial flexibility, generally disciplined
financial management, low refinancing risk, and strong brand
recognition continue to temper the weaknesses."
The negative outlook reflects S&P's view that Yanlord's key credit
protection measures such as EBITDA interest coverage and the debt-
to-EBITDA ratio could weaken over the next 12 months because of
lower-than-expected contracted sales and revenue recognition. S&P
also expects Yanlord's profitability to weaken, but it will remain
in line with that of peers.
S&P may lower the rating if: (1) Yanlord's sales execution and
delivery remain weaker than S&P's forecast in the next 12 months,
such that its EBITDA interest coverage is lower than 2.5x and
debt-to-EBITDA ratio shows no sign of improvement from the level
in 2014; or (2) the company's property sales are materially below
our expectation of RMB15 billion in 2015.
S&P may revise the outlook to stable if Yanlord improves its sales
execution and delivery, and maintains its disciplined financial
management, such that its debt-to-EBITDA ratio improves to less
than 5x in 2015 and looks likely to stay at that level afterwards.
ZOOMLION HEAVY: Fitch Revises Outlook to Neg. & Affirms 'BB+' IDR
-----------------------------------------------------------------
Fitch Ratings has revised the Outlook on China-based Zoomlion
Heavy Industry Science and Technology Co. Ltd's (Zoomlion) Issuer
Default Rating (IDR) to Negative from Stable, while affirming the
IDR and the company's senior unsecured ratings at 'BB+'. The
rating action is driven by Fitch's view that Zoomlion's
deleveraging process may be delayed due to a fall in sales,
increase in receivables, and recent expansion into the agri-
machinery sector.
KEY RATING DRIVERS
Revenue Down: Zoomlion's revenue for the first nine months of 2014
dropped by 32% yoy to CNY19.6bn, meanwhile operating profit margin
fell to 39% from 44%. During the period, unit sales of
construction machinery and tower cranes, historically key profit
contributors, dropped by 40% yoy. Environmental machinery
performed well with sales volume 16% higher yoy. Zoomlion's
revenue declined significantly mainly because of weak demand from
Chinese construction companies amid a slower property market.
Zoomlion's more stringent payment requirements for credit sales
also had a large negative impact on revenue, although this policy
could significantly decrease customer credit risk. Since late
2013, Zoomlion started to raise down payment requirements to 15%-
30% of the total price (from as low as around 5% during 2011-
2012). This deterred buyers who are more sensitive to the down-
payment amount than the total price of the machines.
Receivables Up, Deleveraging Delayed: Zoomlion's working capital
requirements continued to rise and operating cashflow generation
deteriorate (for the first nine months of 2014, net cashflow from
operations was negative CNY5.2bn), especially after the company
stopped factoring its receivables from financial leasing sales to
domestic financial institutions with non-recourse terms since end-
2013. Total trade receivables (Fitch defined) was CNY31.6bn at
end-Sept. 2014, compared with CNY29.2bn at end-2013. Net working
capital (Fitch defined) rose by 30% to CNY27.9bn at end-Sept.
2014, despite the revenue drop.
Fitch expects Zoomlion's leverage ratio to remain high (FFO
adjusted net leverage was 1.8x at end-2013) due to the lower funds
from operation (FFO). Fitch expects the company to deleverage
only after 2015 when FFO increases as its working capital
requirement starts to decrease while profitability remains stable.
Acquisition Yet to Contribute: Zoomlion announced on 16 August
2014 that it will spend CNY2.088bn cash to acquire 60% of Chery
Heavy Industry to expand into the agri-machinery segment. Chery
Heavy had revenue of CNY3.86bn and net profit of CNY90.7m in 2013.
The acquisition, which will be completed in 2015, will diversify
Zoomlion's product offering and provide it more business stability
because the agri-machinery market is not correlated to Zoomlion's
existing construction machinery sector.
Industry at Trough: The Chinese construction machinery industry
went into a slump in 2013-2014, as huge inventory built up in
2011-2012 was only slowly absorbed by the construction industry.
Major construction equipment companies registered a sharp drop in
sales during the period. However, Fitch expects the continuing
investments in infrastructure and affordable housing in China to
support construction activities in the coming years, which will
absorb the inventory in the system and support sales.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include:
-- further sustained declines in sales;
-- material increase in default or loss rates for receivables;
-- EBITDA margin below 12% on a sustained basis;
-- FFO-adjusted net leverage sustained above 2x;
-- failure to maintain its current market share in key business
segments.
Positive: Future developments that may, individually or
collectively, lead to the Outlook revised back to Stable:
-- clear trend towards sustained positive cash flow from
operations in 2016, and
-- material recovery in sales without significant lengthening
in receivable days, and
-- FFO-adjusted net leverage sustained below 2x
================
H O N G K O N G
================
LDK SOLAR: Hong Kong Court Sanctions Schemes of Arrangement
-----------------------------------------------------------
LDK Solar CO., Ltd. in provisional liquidation and its Joint
Provisional Liquidators, Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, disclosed that, on November 18,
2014, the High Court of Hong Kong sanctioned the Hong Kong schemes
of arrangement of LDK Solar and its subsidiaries, LDK Silicon &
Chemical Technology Co., Ltd. and LDK Silicon Holding Co.,
Limited, each as previously approved by scheme creditors at their
class meetings held on October 17, 2014.
"We are very pleased that the High Court of Hong Kong has
sanctioned our Hong Kong schemes of arrangement, and this
represents a further significant step towards completing our
offshore restructuring," stated Xingxue Tong, Interim Chairman,
President and CEO of LDK Solar. "We now turn our focus to
obtaining the recognition of our LDK Solar Cayman Islands scheme
of arrangement and approval of the terms of our pre-packaged plan
of reorganization from the U.S. Bankruptcy Court. As always, we
remain committed to rebuilding LDK Solar and repositioning
ourselves in the PV marketplace to grow our business," concluded
Mr. Tong.
The U.S. Bankruptcy Court will hold a hearing on November 21, 2014
to consider confirmation of the prepackaged plan of reorganization
and recognition of the Cayman Island scheme of arrangement of LDK
Solar.
About LDK Solar
LDK Solar Co., Ltd. -- http://www.ldksolar.com-- based in
Hi-Tech Industrial Park, Xinyu City, Jiangxi Province, People's
Republic of China, is a vertically integrated manufacturer of
photovoltaic products, including high-quality and low-cost
polysilicon, solar wafers, cells, modules, systems, power
projects and solutions.
LDK Solar was incorporated in the Cayman Islands on May 1, 2006,
by LDK New Energy, a British Virgin Islands company wholly owned
by Xiaofeng Peng, LDK's founder, chairman and chief executive
officer, to acquire all of the equity interests in Jiangxi LDK
Solar from Suzhou Liouxin Industry Co., Ltd., and Liouxin
Industrial Limited.
LDK Solar in February 2014 filed in the Cayman Islands for the
appointment of provisional liquidators, four days before it was
due to make a $197 million bond repayment. Its Joint
Provisional Liquidators are Tammy Fu and Eleanor Fisher, both of
Zolfo Cooper (Cayman) Limited, on Oct. 22.
In September 2014, LDK SOalr, LDK Silicon and LDK Silicon Holding
Co., Limited each applied to file an originating summons to
commence their restructuring proceedings in the High Court of Hong
Kong.
On Oct. 21, 2014 three U.S. subsidiaries of LDK Solar, LDK Solar
Systems, Inc., LDK Solar USA, Inc. and LDK Solar Tech USA, Inc.
filed voluntary petitions to reorganize under Chapter 11 of the
United States Bankruptcy Code in the United States Bankruptcy
Court for the District of Delaware. The lead case is In re LDK
Solar Systems, Inc. (Bankr. D. Del., Case No. 14-12384).
On Oct. 21, 2014, LDK Solar filed a petition in the same U.S.
Bankruptcy Court for recognition of the provisional liquidation
proceeding in the Grand Court of the Cayman Islands. The Chapter
15 case is In re LDK Solar CO., Ltd. (Bankr. D. Del., Case No. 14-
12387).
The U.S. Debtors' General Counsel is Jessica C.K. Boelter, Esq.,
at Sidley Austin LLP, in Chicago, Illinois. The U.S. Debtors'
Delaware counsel is Robert S. Brady, Esq., Maris J. Kandestin,
Esq., and Edmon L. Morton, Esq., at Young, Conaway, Stargatt &
Taylor, LLP, in Wilmington, Delaware. The U.S. Debtors' financial
advisor is Jefferies LLC. The Debtors' voting and noticing agent
is Epiq Bankruptcy Solutions, LLC.
The U.S. Debtors commenced the Chapter 11 Cases in order to
implement the prepackaged plan of reorganization, with respect to
which the U.S. Debtors launched a solicitation of votes on
September 17, 2014 from the holders of LDK Solar's 10% Senior
Notes due 2014, as guarantors of the Senior Notes, and required
such holders of the Senior Notes to return their ballots by
October 15, 2014. Holders of the Senior Notes voted
overwhelmingly in favor of accepting the Prepackaged Plan.
=========
I N D I A
=========
AVADH INFRA: ICRA Assigns B+ Rating to INR50cr Term Loan
--------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B+ to the INR50.00
crore bank limits of Avadh Infra.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loan 50.00 [ICRA]B+ assigned
The assigned rating takes into account the long and established
presence of the partners of the firm in the real estate business,
the healthy booking levels and the low regulatory risks as the
necessary approvals and clearances required for construction of
project are already in place.
The rating is however constrained by the high execution risks
associated with the project, which is still in its nascent stages
and the significant construction work yet to be started. Also the
ability of the firm to maintain project execution deadlines and
achieve sales of the unbooked portion in a timely manner remains
critical from the credit perspective. The rating is further
constrained by the exposure of the project to the cyclicality
inherent in the real estate sector and the susceptibility of the
profitability to fluctuations in prices of construction materials
and labour costs. ICRA also notes the risks associated with a
partnership concern, where any substantial withdrawal of capital
will impact the capital structure of the firm adversely.
Avadh Infra (AI) is a partnership firm incorporated in 2013, as a
Special Purpose Vehicle (SPV) for construction of the residential
project named 'Avadh Kimberly' at Palsana, near Surat (Gujarat).
The firm is promoted by four partners, who have extensive
experience of nearly a decade in the field of real estate
construction in Surat and adjoining areas. Under different
partnership concerns, they have successfully executed several
residential and commercial projects in the past in Gujarat. The
projects are marketed under the brand of the 'Avadh' group.
BARDIA JEWELLERS: ICRA Reaffirms B+ Rating on INR7.5cr Cash Loan
----------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B+ rating of the INR7.50 crore long
term fund based bank facilities of Bardia Jewellers Private
Limited. ICRA has also reaffirmed the [ICRA] A4 rating of the
INR0.50 crore short term fund based stand by line of credit limits
of BJPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 7.5 [ICRA]B+ reaffirmed
Stand by line of
credit 0.5 [ICRA] A4 reaffirmed
The ratings continue to factor in the weak financial profile,
characterized by nominal profits and cash accruals, high gearing
and weak debt protection metrics. The ratings also reflect the low
value additive nature of operations and fragmented nature of the
industry, which impacts the operating margin and the highly
working capital intensive nature of operations on account of high
inventory requirement in retail jewellery business. ICRA notes
that the high inventory requirement exposes the company's
profitability to fluctuations in gold prices. The ratings,
however, also considered the experience of the promoters in the
jewellery business, established market position of the company and
the fact that one of the directors is the only approved jewellery
valuer in the Rajnandgaon district.
Bardia Jewellers Private Limited was incorporated in 2006-07 with
a view to move to the organized sector. The company is engaged in
manufacturing and retailing of silver, gold and diamond through
its three showrooms in Chhattisgarh. BJPL is promoted by the
Bardia family, who has more than 120 years of experience in this
line of business and Mr. Sunil Bardia, who is one of the Directors
in the only approved jewellery valuer in the Rajnandgaon district.
Recent Results
As per the provisional results, BJPL registered a profit before
tax of INR0.07 crore on the back of an operating income of
INR22.61 crore during FY14 as against a profit after tax of
INR0.11 crore on an operating income of INR19.17 crore in FY13.
BEMCO HYDRAULICS: CRISIL Ups Rating on INR105MM Bank Loan From D
----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of
Bemco Hydraulics Ltd (Bemco) to 'CRISIL B-/Stable/CRISIL A4' from
'CRISIL D/CRISIL D'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 105 CRISIL A4 (Upgraded from
'CRISIL D')
Cash Credit 100 CRISIL B-/Stable (Upgraded from
'CRISIL D')
Letter of Credit 40 CRISIL A4 (Upgraded from
'CRISIL D')
Proposed Long Term 85 CRISIL B-/Stable (Upgraded from
Bank Loan Facility 'CRISIL D')
Term Loan 20 CRISIL B-/Stable (Upgraded from
'CRISIL D')
The rating upgrade reflects timely servicing of debt by Bemco as a
result of improved liquidity. Bemco's liquidity has improved on
the back of higher cash accruals and funding support from
promoters. CRISIL believes that Bemco's cash accruals from
operations will remain adequate to meet the company's debt
obligations over the medium term.
The ratings continue to reflect Bemco's weak financial risk
profile marked by a high gearing and weak debt protection metrics.
The rating also factors in Bemco's large working capital
requirements, and modest scale of operations. These rating
weaknesses are partially offset by the company's niche product
profile and its promoters' extensive industry experience.
Outlook: Stable
CRISIL believes that Bemco will continue to benefit over the
medium term from its healthy order book and its promoters'
extensive industry experience. The outlook may be revised to
'Positive' if the company reports substantial improvement in its
revenue and profitability margins, or there is a sustained
improvement in its working capital management. Conversely, the
outlook may be revised to 'Negative' if Bemco's profitability
margins decline, or its liquidity deteriorates significantly
because of large working capital requirements.
Bemco was incorporated as New Bemco Engineering Products Company
Ltd in 1957; it got its current name in 1976. The company
manufactures hydraulic presses and equipment used in the
automotive, defense, railways, and other heavy engineering
sectors.
CITY MAX: CRISIL Lowers Rating on INR80MM Term Loan to 'D'
---------------------------------------------------------
CRISIL has downgraded its rating on the bank facility of City Max
Hospital and Research Centre (City Max) to 'CRISIL D' from 'CRISIL
B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Term Loan 80 CRISIL D (Downgraded from
'CRISIL B/Stable')
The downgrade reflects the delays by City Max in servicing its
term debt driven by weak liquidity. The business performance of
City Max was lower than expected in 2013-14 leading to stretched
liquidity profile.
CRISIL believes that City Max's liquidity will remain weak over
the medium term till its operations are stabilized.
City Max also has below average financial profile marked by weak
debt protection indicators and modest scale of operations. These
rating weaknesses are partially offset by the promoters' extensive
experience in hospital and medical industry.
Established in 2011, City Max is a multi-specialty hospital in
Tohana (Haryana). The construction of the hospital began in 2011;
it has been in operation since November 2012. With a capacity of
100 beds, CMHR is a multi-specialty hospital providing services in
several medical specialties including gastroenterology, neurology,
fertility care, cardiology, and oncology.
DAKSHIN EXPORTS: CRISIL Reaffirms B+ Rating on INR13MM LT Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Dakshin Exports (DE)
continue to reflect its below average financial risk profile,
constrained by a modest net worth, high gearing and below-average
debt protection metrics, and working-capital-intensive operations.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Long Term Loan 13 CRISIL B+/Stable (Reaffirmed)
Packing Credit in
Foreign Currency 162 CRISIL A4 (Reaffirmed)
These rating weaknesses are partially offset by the promoters'
extensive industry experience.
Outlook: Stable
CRISIL believes that DE will continue to benefit from its
promoters' extensive industry experience over the medium term. The
outlook may be revised to 'Positive' if the firm records higher
than expected revenue and profitability leading to sustained and
significant improvement in cash accruals and capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
any significant increase in DE's working capital requirements, or
any sharp reduction in accruals resulting in deterioration of
liquidity.
Update
DE, on a provisional basis, reported an operating income of INR430
million for 2013-14 (refers to financial year, April 1 to March
31). Its revenue is expected to grow at a moderate rate over the
medium term because of steady demand from its customers. Its
operating margin improved to an estimated 5.45 per cent for 2013-
14 from 5.01 per cent in 2012-13, and is expected to be stable
over the medium term. However, the business risk profile remains
constrained owing to intense competition in the fragmented
industry.
DE's financial risk profile is below average, marked by its modest
net worth of INR110 million and high gearing of 1.91 times as on
March 31, 2014. The firm also has below average debt protection
metrics, as reflected in its net cash accruals to total debt and
interest coverage ratios of 0.05 times and 2.07 times,
respectively, in 2013-14. CRISIL believes that DE's financial risk
profile will remain below average over the medium term because of
its low cash accruals.
DE has moderate liquidity, with expected cash accruals of around
INR9.7 million, which will remain adequate to cover its debt
obligations of INR2.5 million over the medium term. However, the
firm's operations are moderately working capital intensive, as
reflected in its gross current assets (GCA) of 252 days as on
March 31, 2014. Consequently, the firm's bank limits were
extensively utilised to meet the working capital requirements.
Set up in 1996, DE processes and trades in granite slabs. The firm
is currently managed by its partners Mr. Rajendra Babu and his
wife Ms. R Vinitha.
EVERPLUS PLASTICS: CRISIL Reaffirms B Rating on INR28.7MM Loan
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Everplus Plastics Pvt
Ltd (EPPL) continue to reflect its modest scale of operations,
large working capital requirements, and below-average financial
risk profile, marked by high gearing and weak debt protection
metrics. These rating weaknesses are partially offset by the
benefits that EPPL derives from the extensive industry experience
of its promoters and from its established customer relationships,
coupled with favourable demand for masterbatches in the polymer
and plastic industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 27.5 CRISIL B/Stable (Reaffirmed)
Letter of Credit 2.5 CRISIL A4 (Reaffirmed)
Proposed Long Term
Bank Loan Facility 16.3 CRISIL B/Stable (Reaffirmed)
Term Loan 28.7 CRISIL B/Stable (Reaffirmed)
Outlook: Stable
CRISIL believes that EPPL will continue benefit over the medium
term from the extensive industry experience of its promoters and
its established customer relationships. The outlook may be revised
to 'Positive' if there is a substantial scale-up in operations, or
sizeable equity infusions strengthen EPPL's capital structure and
debt protection metrics. Conversely, the outlook may be revised to
'Negative' if the financial risk profile weakens owing to decline
in accruals, stretch in working capital cycle, or any large debt-
funded capital expenditure.
EPPL was incorporated by the Somani family in 2002, and began
commercial production in 2006. The company manufactures calcium
carbonate-filled masterbatches. The product is used in
manufacturing plastic bags and sacks. Mr. Siddharth Somani,
managing director, looks after the day-to-day operations of the
company.
For 2013-14 (refers to financial year, April 1 to March 31), EPPL
reported a profit after tax (PAT) of INR1.56 million on sales of
INR235.8 million (INR0.79 million and INR210.0 million,
respectively, for 2012-13).
H S SANDHU: ICRA Assigns B+ Rating to INR6.25cr Fund Based Loan
---------------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B+ to the INR6.25
crore fund based bank facility of H S Sandhu Builders Pvt. Ltd.
ICRA has also assigned its short term rating of [ICRA]A4 to the
INR6.25 crore Non Fund Based bank Facility of HSSB.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund based Facility 6.25 [ICRA]B+; Assigned
Non-fund based facility 6.25 [ICRA]A4; Assigned
The ratings take into account the extensive experience of the
promoters in the civil construction business and their track
record of executing works for the defense departments in Punjab
and Rajasthan. This apart, the ratings also derive comfort from
the price escalation clause inbuilt in HSSB's orders, lending
stability to its operating margins. The ratings also favorably
factor in the company's healthy revenue visibility, with Pending
Order book/Operating Income (OI) FY14, at 6.06 times as on October
30, 2014.
However, the ratings are constrained by HSSB's modest scale of
operations, high variability in its revenues, owing to dependence
on contracts from Defense departments as well as high competition
in the Punjab region. While the company has a healthy order
book/OI ratio, the order book is dominated by one large order
which accounts for 87% of the order book and will account for the
bulk of the company's revenues in the near term. The ratings also
take into account HSSB's modest net-worth and high dependence on
working capital borrowings which have resulted in elevated
leverage, Debt/Operating Profit Before Depreciation, Interest, tax
and Amortization of 7.28 times and weak Net Cash Accruals /Debt of
8.69% as on Mar 31, 2014.
Going forward, the company's ability to execute its current order
book in a timely manner, procure additional orders, and improve in
its debt coverage indicators will be the key rating sensitivities.
Incorporated in 1980 as National Builders with Mr. H S Sandhu as
its proprietor, the company was registered with the Military
Engineering Services. National Builders was later taken over by H
S Builders Pvt. Ltd. on August 10, 2001 with Mr. H.S. Sandhu as
its Managing Director. The company executes civil, electrical,
public health and engineering works.
Recent Results
HSSB, on a provisional basis, reported an operating income (OI) of
INR7.21 crore, net profit of INR0.34 crore, Net worth and Debt of
INR4.60 crore and INR5.74 crore respectively for 2013-14 as
compared to OI of INR17.21 crore, net profit of INR0.27 crore, Net
worth and Debt of INR4.28 crore and INR8.85 crore respectively,
for the previous year.
JANTA RICE: ICRA Reaffirms 'B' Rating on INR9.50cr Cash Credit
--------------------------------------------------------------
ICRA has reaffirmed its rating of [ICRA]B on the INR9.50 crore
cash credit facility and INR1.00 crore term loan of Janta Rice
Mill.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 9.50 [ICRA]B; reaffirmed
Term Loan 1.00 [ICRA]B; reaffirmed
The rating continues to be constrained by the firm's financial
profile as characterized by its high gearing levels on account of
the high working capital intensity of operations and weak debt
protection indicators. The rating also takes into account the
firm's moderate scale of operations and the intensely competitive
nature of the industry which exerts pressure on the firm's
operating margins. However, the rating favourably takes into
account the extensive experience and the long track record of the
promoters in the rice milling industry and the stable long term
demand prospects for the rice industry, with India being the
second largest producer and consumer of rice in the world.
JRM is a partnership firm established in 1978. The firm is
primarily engaged in the milling of basmati and non-basmati rice.
JRM's milling unit is located in Karnal, Haryana, which provides
ease in terms of raw material procurement on account of close
proximity to the local grain market.
Recent Result
As per its audited financials for 2013-14, JRM recorded a net
profit of INR0.03 crore on an operating income of INR26.10 crore,
as against a net profit of INR0.02 crore on an operating income of
INR22.64 crore in 2012-13.
KULDEVI COTTON: ICRA Assigns B Rating to INR4.75cr Cash Credit
--------------------------------------------------------------
A rating of [ICRA]B has been assigned to the INR6.00 crore long-
term, fund based facilities of Kuldevi Cotton Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 4.75 [ICRA]B assigned
Term Loan 1.25 [ICRA]B assigned
The assigned ratings are constrained by high levels of market risk
associated with greenfield venture as well as uncertainty related
to the level of product off take and commercial success, possible
stress on debt servicing ability in case ramp up of cash flows is
lower than anticipated. The ratings are further constrained by
highly competitive and fragmented industry structure owing to low
entry barriers which is expected to keep margins under pressure
and vulnerability of the firm's profitability to the adverse
fluctuations in raw cotton prices, which are subject to
seasonality, crop harvest and regulatory risks with regards to MSP
for raw cotton as well as restriction on cotton exports by GOI.
ICRA also notes that KCI is a partnership concern and any
substantial withdrawal from capital account in future could
adversely impact the credit profile of the firm.
The ratings, however, favourably take into account past experience
of the promoters in the cotton industry and the favorable location
of the firm's manufacturing facility in Rajkot giving easy access
to raw material.
Established in December 2013, Kuldevi Cotton Industries (KCI) has
set up a green field project for cotton ginning and pressing with
its facility located at Rajkot (Gujarat). The commercial
operations commenced from November 2014. The plant is equipped
with twenty four ginning machines and one pressing machine with
total processing capacity of 12,096 metric tonnes of raw cotton
per annum.
LAXMI COTTEX: CRISIL Reaffirms B+ Rating on INR75MM Cash Credit
---------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Laxmi Cottex
(LC) continues to reflect the firm's below-average financial risk
profile, marked by high gearing and average debt protection
metrics, its modest scale of operations in a fragmented and
competitive industry, and susceptibility to regulatory changes.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL B+/Stable (Reaffirmed)
These rating weaknesses are partially offset by the benefits that
LC derives from its promoters' extensive experience in the cotton
industry and its proximity to the cotton-growing belt in Gujarat.
Outlook: Stable
CRISIL believes that LC will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if the firm significantly
scales up operations, achieves sustained improvement in its
profitability, or if its capital structure improves either through
equity infusion or substantial cash accruals. Conversely, the
outlook may be revised to 'Negative' if the firm's financial risk
profile deteriorates, most likely because of large incremental
working capital requirements or debt-funded capital expenditure.
LC is a partnership firm promoted by Mr. Mahesh Patel, Mr. Pravin
Khunt, Mr. Harshad Viramgama, Mr. Bhupat Kavathia, and Mr. Sanjay
Patel. The firm has a cotton-ginning unit at Babra in Amreli
(Gujarat) with capacity of 250 bales per day (bpd).
MAGPPIE EXPORTS: CRISIL Cuts Rating on INR200MM Cash Loan to B-
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Magppie Exports Private Limited (MEPL) to 'CRISIL B-/Stable' from
'CRISIL B/Stable'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 200 CRISIL B-/Stable (Downgraded
from 'CRISIL B/Stable')
The rating downgrade reflects the deterioration in MEPL's
financial risk profile driven by deterioration in its capital
structure. The company's total outside liabilities to adjusted
networth (TOL/ANW) increase to a level of 56.6 times as on
March 31, 2014 from 20.3 times as on March 31, 2012 driven by
erosion in networth. The company had incurred net losses in FY
2012-13 which led to erosion in networth to INR2.8 million as on
March 31, 2013 from INR18.2 million as on March 31, 2012. Though
with achievement of profits the company's net worth is estimated
to improve to a level of INR6.4 million as on March 31, 2014
however the capital structure continues to be highly leveraged.
CRISIL believes that with improvement in networth (due to
accretion to reserves) the TOL/ANW ratio will improve however the
same will remain significantly high at around 25 times over the
medium term.
The rating reflects MEPL's weak financial risk profile, marked by
highly leveraged capital structure and weak debt protection
metrics, and its small scale of operations in the highly
fragmented steel products trading industry. These rating
weaknesses are partially offset by the extensive industry
experience of the company's promoter.
Outlook: Stable
CRISIL believes that MEPL will continue to benefit over the medium
term from its promoter's extensive experience in the steel
products trading industry. The outlook may be revised to
'Positive' if the company reports higher-than-expected growth in
revenues and improvement in its profitability, leading to increase
in cash accruals, or if its promoters infuse funds, resulting in
improvement in its capital structure and financial risk profile.
Conversely, the outlook may be revised to 'Negative' if MEPL's
financial risk profile deteriorates, most likely because of lower-
than-expected profitability or revenues, or significant
deterioration in its working capital cycle.
Incorporated in 1994 and based in Delhi, MEPL trades in stainless
steel coils, sheets, and circles mainly used in the automobile and
utensil industries. The company has its own warehouses in Delhi,
Kundli (Haryana), and Mumbai. Its day-to-day operations are looked
after by its promoter, Mr. Sulekh Jain.
MEPL reported a profit after tax (PAT) of INR2.02 million on net
sales of INR754.4 million for 2013-14 (refers to financial year,
April 1 to March 31); it had reported a net loss of INR15.4
million on net sales of INR733.4 million for 2012-13.
MD. QUIYAMUDDIN: CRISIL Cuts Rating on INR84MM Cash Credit to B
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank loan
facilities of Md. Quiyamuddin Khan Engineers Pvt Ltd (QKEPL) to
'CRISIL B/Stable' from 'CRISIL B+/Stable', while reaffirming its
rating on the company's short-term bank loan facility at 'CRISIL
A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 65.3 CRISIL A4 (Reaffirmed)
Cash Credit 84 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
Proposed Long Term 4.7 CRISIL B/Stable (Downgraded
Bank Loan Facility from 'CRISIL B+/Stable')
Term Loan 11 CRISIL B/Stable (Downgraded
from 'CRISIL B+/Stable')
The rating downgrade reflects the deterioration in QKEPL's
liquidity on account of lengthening of its working capital cycle,
resulting in high bank limit utilisation. The increase in the
working capital requirement of the company has been on account of
delays in realisation of receivables from its customers. The gross
current assets of the company was high of 310 days as on March 31,
2014. High working capital requirements have also resulted in
frequent instances of availing of ad hoc limits by the company.
CRISIL believes that incremental working capital requirements are
likely to continue to constrain QKEPL's liquidity over the medium
term.
The ratings reflect QKEPL's small scale and working-capital-
intensive operations in the highly fragmented civil construction
industry and customer concentration in its revenue profile. These
rating weaknesses are partially offset by the extensive industry
experience of the company's promoters in the civil construction
industry.
Outlook: Stable
CRISIL believes that QKEPL will continue to benefit over the
medium term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' in case of better working
capital management or higher accruals leading to improvement in
the company's overall financial risk profile, particularly its
liquidity. Conversely, low accruals, a stretch in the working
capital cycle, or significant debt-funded capital expenditure,
leading to deterioration in QKEPL's liquidity, may result in a
revision in the outlook to 'Negative'.
QKEPL, promoted in August 2010 by Ranchi (Jharkhand)-based Mr.
Manzar Imam Khan and his family members, undertakes civil
construction, primarily construction of roads, in Jharkhand and
Bihar.
MISHKA GOLD: CRISIL Cuts Rating on INR350MM Cash Credit to B+
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Mishka Gold Jewellery Ltd (MGJL) to 'CRISIL B+/Stable/CRISIL A4'
from 'CRISIL BB-/Stable/CRISIL A4+'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 250 CRISIL A4 (Downgraded from
'CRISIL A4+')
Cash Credit 350 CRISIL B+/Stable (Downgraded
from 'CRISIL BB-/Stable')
The rating downgrade reflects MGJL's weak financial risk profile,
especially liquidity, with almost full utilisation of bank limits
and instances when the limits have been overdrawn. Although the
company's revenue increased to INR9582.2 million in 2013-14
(refers to financial year, April 1 to March 31) from INR353.1
million in 2012-13, its operating margin declined significantly to
0.7 per cent from 1.8 per cent during this period. MGJL's gearing
increased considerably to 7.3 times as on March 31, 2014, from
3.97 times as on March 31, 2013 because of higher use of short-
term debt to fund working capital requirements. The debt
protection measures remained weak with interest coverage ratio of
1.18 times and net cash accruals to total debt ratio of 1 per cent
in 2013-14. Financial support from the promoters in the form of
unsecured loans (around INR320 million as on March 31, 2014),
supported MGJL's liquidity. The timeliness of such financial
support from the promoters will remain a key rating sensitivity
factor.
The rating also reflects MGJL's weak financial risk profile, with
high gearing, inadequate debt protection measures, modest net
worth and susceptibility to intense competition in the industry.
The above-mentioned rating strengths are partially offset by the
benefits that MGJL derives from its promoters' established
credentials in the gold jewellery industry and strong
relationships with customers and suppliers.
Outlook: Stable
CRISIL believes that MGJL will continue to benefit over the medium
term from its promoters' extensive experience in the gold
jewellery and bullion business. The outlook may be revised to
'Positive' if the company's operating margin and debt protection
metrics improves. Conversely, the outlook may be revised to
'Negative' if MGJL's debt protection metrics weaken because of
substantially low growth in revenue and margins, or a significant
stretch in working capital cycle.
MGJL, incorporated in 2009 by Mumbai-based Mr. Mohit Kamboj, a
third generation entrepreneur, primarily manufactures gold coins
and jewellery which mainly involves making Kundan sets. Till 2010-
11 the company used to outsource majority of its processes,
however in 2011-12 it started manufacturing on a large scale.
For 2013-14, the company reported a provisional net profit of
INR7.3 million on net sales of INR9582.2 million as against net
profit of INR0.2 million on net sales of INR3531.4 million for
2012-13.
MUNDHRA CONTAINER: ICRA Reassigns B+ Rating to INR9.75cr Loan
-------------------------------------------------------------
ICRA has revised the rating assigned to the INR10.75 crore
(reduced from INR12.50 crore) long-term fund based facilities of
Mundhra Container Freight Station Private Limited from [ICRA]BB to
[ICRA]D and simultaneously reassigned the rating to [ICRA]B+. The
rating of [ICRA]A4 has been assigned to the INR1.75 crore short
term non fund based facilities of MCFSPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 1.00 [ICRA]B+ assigned
Term Loan 9.75 Revised to [ICRA]D from
[ICRA]BB (Stable) and
simultaneously reassigned
to [ICRA]B+
Bank Guarantee 1.50 [ICRA]A4 assigned
Forward Limit 0.25 [ICRA]A4 assigned
The revision in ratings factors in irregularities in debt
servicing by the company in March 2014, which has been regularised
thereafter. Further, the ratings continue to be constrained by the
modest scale of operations coupled with vulnerability to any
adverse trends in trade (export-import) volumes at Mundra Port;
intense competitive pressure and dependence on agro products which
results in exposure to agro climatic risks and changes in
government regulations with respect to export of agro products.
The ratings, however, favourably factor in the long experience of
the promoters in container handling industry, by way of engagement
with other group companies operating at different ports in
Gujarat, locational advantages of the company's facility,
established relationships with Custom House Agents, exporters and
shipping lines as well as positive outlook for containerized
trade.
Mundhra Container Freight Station Private Limited (MCFSPL) was
incorporated in 2003 and is engaged in the business of operating a
Container Freight Station (CFS) at Mundra Port, with a total
container handling capacity of 1,25,000 TEU's per annum. The
facility has been developed on a 30 acre custom notified site and
is located at a distance of about 5 kilometres from the Mundra
port gate. Apart from the open container stacking yard, a 16,300
square meters (4.02 acres) covered ware house facility has also
been developed for storing special cargo within the facility.
Recent Results
In FY 2014, MCFSPL reported an operating income of INR27.26 crore
(as against INR24.26 crore in FY 2013) and profit after tax of
INR0.90 crore (as against INR0.93 crore in FY 2013). In 6MFY2015
(as per provisional unaudited financials), MCFSPL has reported an
operating income of INR13.70 crore and profit after tax of INR0.47
crore.
PHALANX LABS: CRISIL Lowers Rating on INR315MM LT Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Phalanx Labs Pvt Ltd (PLPL; formerly, Phalanx Chemicals Pvt
Ltd) to 'CRISIL D' from 'CRISIL B+/Stable', while reassigning its
'CRISIL D' rating to the company's short-term facilities.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 75 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Letter of credit 25 CRISIL D (Downgraded from
& Bank Guarantee 'CRISIL B+/Stable')
Long Term Loan 315 CRISIL D (Downgraded from
'CRISIL B+/Stable')
Proposed Long Term 5 CRISIL D (Reassigned)
Bank Loan Facility
The rating downgrade reflects instances of delay by PLPL in
servicing its debt. The delays have been caused on account of
weakening of the company's weak liquidity owing to its cash
losses.
PLPL has limited track record of operations, weak debt protection
metrics, large working capital requirements, and is exposed to
intense competition in the bulk drug manufacturing industry.
However, the company benefits from its promoters extensive
experience in the pharmaceutical industry.
PLPL was incorporated in 2011 by Mr. Avirneni Sri Rama Krishna and
family members. The company manufactures bulk drugs, and commenced
operations in 2013. The company's manufacturing facility is
located in Vishakhapatnam, Andhra Pradesh.
POORVI HOUSING: CRISIL Assigns B Rating to INR100MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the long term
bank facilities of Poorvi Housing Development Company Pvt Ltd
(PHDC).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Term Loan 100 CRISIL B/Stable
The rating reflects PHDC's exposure to risks related to timely
completion and saleability of its ongoing real estate project,
geographical concentration in its revenue profile, exposure to
intense competition, and its susceptibility to risks inherent in
the Indian real estate industry. These rating weaknesses are
partially offset by its promoters' extensive experience in the
real estate development business.
Outlook: Stable
CRISIL believes that PHDC will continue to benefit over the medium
term from the extensive industry experience of its promoters. The
outlook may be revised to 'Positive' if the company reports a
significant increase in its cash flows, supported by early
completion of, or significantly high realisations from, its
ongoing projects. Conversely, the outlook may be revised to
'Negative' if PHDC faces delays in project completion or in
receipt of payments from customers, or witnesses a slowdown in
booking, or undertakes large debt-funded projects, leading to
deterioration in its liquidity.
Incorporated in 2013, PHDC is engaged in residential real estate
construction in Bangalore (Karnataka). The promoters have been
associated with group entity Poorvi Developers and have completed
five projects in the South Bengaluru region. The company is
presently developing a project by the name Poorvi Airavata. The
day-to-day operations of the company are managed by Mr. Prakash S
Naik.
PHDC provisionally reported a profit after tax (PAT) of INR8.7
million on an operating income of INR94.9 million for 2013-14
(refers to financial year, April 1 to March 31).
RAIHAN HEALTHCARE: CRISIL Assigns B+ Rating to INR220MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Raihan Healthcare Pvt Ltd (RHPL). The rating
reflects the company's exposure to implementation risks associated
with its ongoing hospital project. This rating weakness is
partially offset by the extensive industry experience of RHPL's
management.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Foreign Letter of Credit 100 CRISIL B+/Stable
Long Term Loan 220 CRISIL B+/Stable
Outlook: Stable
CRISIL believes that RHPL will continue to benefit over the medium
term from its management's extensive industry experience. The
outlook may be revised to 'Positive' if the company stabilizes
operations at its hospital earlier than expected, resulting in
improvement in its cash accruals and financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case of a
time or cost overrun, or delays in stabilizing its operations,
leading to weakening of its financial risk profile.
RHPL, incorporated in 2014, is setting up a 273-bed super
speciality hospital in Erattupetta (Kerala). The day-to-day
operations of the company are managed by Dr. Mohammed Ismail and
Dr. Satheesh.
RAJ KUMARI: CRISIL Assigns B- Rating to INR119MM Bank Loan
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-term
bank facilities of Raj Kumari and Ram Gobind Memorial Education
Society (Rajkumari).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Proposed Long Term 119 CRISIL B-/Stable
Bank Loan Facility
Term Loan 81 CRISIL B-/Stable
The rating reflects weak financial risk profile, marked by small
net worth, high gearing and weak debt protection metrics. The
rating also factors in Rajkumari's modest scale of operations in
the competitive education sector due to startup nature of
operations and geographical concentration in revenue. However, the
above weaknesses partially offset by extensive experience of
promoters in running educational institute and healthy demand
prospects of the education industry in India.
Outlook: Stable
CRISIL believes that Rajkumari will continue to benefit over the
medium term from its promoters' extensive experience of its
promoters in the education sector with healthy demand prospects of
the industry. The outlook may be revised to 'Positive' if the
company reports substantial and sustained improvement in its
revenues and profitability margins, resulting in better-than
expected cash accruals from operation and improved financial risk
profile. Conversely, the outlook may be revised to 'Negative' if
Rajkumari reports lower-than-expected revenue or decline in its
profitability margins from the current levels, resulting in
further deterioration in its financial risk profile.
Rajkumari was formed in 2006 by Mr. Ram Karan Hooda. The society
runs a school namely Shree Ram Global School, in Rohtak Haryana,
with pre-school along with primary and secondary school divisions.
The institute is affiliated to Central Board of Secondary
Education (CBSE). The School commenced operations from of pre-
school and primary school division from April 2012.
RYTHU MITRA: CRISIL Reaffirms D Rating on INR102.5MM LT Loan
------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Rythu Mitra
Fertilizers Pvt Ltd (RMF) continues to reflect instances of delay
by RMF in servicing its term debt; the delays have been caused by
RMF's weak liquidity as the company is yet to commence operations
and is not generating cash flows.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 47.5 CRISIL D (Reaffirmed)
Long Term Loan 102.5 CRISIL D (Reaffirmed)
RMF's is also exposed to risk related to stabilisation of its
operations; and to changes in government regulations in the
fertilizer segment. However, the company benefits from RMF's
promoters' industry experience.
RMF, based in Andhra Pradesh, is setting up a nitrogen, phosphorus
and potassium (NPK) plant with an installed capacity of 400 tonnes
per month. The work for setting up the unit began in October 2010
and the unit is expected to commence commercial production by end
of November 2014. RMF is promoted by Mr. M Sambasiva Rao and Mr. G
Gopichand.
SHREE DEOSHARWALI: CARE Reaffirms B+ Rating on INR14cr Bank Loan
----------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of
Shree Deosharwali Oil Industries.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long term Bank Facilities 14 CARE B+ Reaffirmed
Rating Rationale
The rating for the bank facilities of Shree Deosharwali Oil
Industries (SDOI) continues to remain constrained by post
project stabilization risk, dependence of raw material
availability on the vagaries of nature, low-margin business, low
level of awareness among the consumer about rice bran oil,
presence in fragmented & competitive edible oil industry and
partnership nature of constitution. These factors far outweigh the
benefits derived from the experience of the partners and
integrated business model.
The ability of the firm to increase the scale of operations with
improvement in the profitability and effective management
of the working capital would be the key rating sensitivities.
Shree Deosharwali Oil Industries (SDOI) was set up by Mr Umesh
Kumar Agrawal and Mr Binay Kumar Jindal of Bargarh (Odisha) as a
partnership firm, governed by the partnership deed dated Jan. 17,
2012. The firm is engaged in the business of extraction of oil
from rice bran and refining of such crude oil through its solvent
extraction unit and refinery unit. The sole manufacturing facility
of the firm is located at Govindpur, Bargarh (Odisha), with an
installed capacity of 200 TPD solvent extraction and 50 TPD oil
refineries. The firm has completed its project and commenced
commercial production in March 2014, at an aggregate project cost
of INR8.79 crore (excluding margin money for working capital
amounting to INR3.56 crore).
During FY14 (refers to the period April 1 to March 31), the
company reported a total operating income of INR1.56 crore
and net loss of INR0.02 crore. Furthermore, the firm has achieved
turnover of INR30 crore during 7MFY15.
SHREE GANESH: CRISIL Reaffirms B Rating on INR99MM Cash Credit
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Shree Ganesh Rice Mill
(SGRM) continue to reflect SGRM's weak financial risk profile and
working-capital-intensive operations. The rating also reflects
SGRM's small scale of operations, and susceptibility to volatility
in raw material prices and to erratic rainfall. These rating
weaknesses are partially offset by the extensive experience of
SGRM's promoters, and its healthy growth prospects, in the rice
processing industry.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 99 CRISIL B/Stable (Reaffirmed)
Proposed Long Term
Bank Loan Facility 86 CRISIL B/Stable (Reaffirmed)
CRISIL has treated the unsecured loans of INR42.1 million extended
to SGRM by its promoters as neither debt nor equity because these
loans have nominal interest rates, and are subordinated to bank
borrowings.
Outlook: Stable
CRISIL believes that SGRM will continue to benefit over the medium
term from its promoters' extensive experience in the rice
processing industry. The outlook may be revised to 'Positive' if
scaled-up operations and improved profitability lead to large cash
accruals; or if sizeable equity infusions by the promoters
strengthen the capital structure. Conversely, the outlook may be
revised to 'Negative' if the financial risk profile, especially
liquidity, weakens considerably on account of any large, debt-
funded capital expenditure, or pressure on profitability.
SGRM, a partnership firm set up by the Sidana brothers in 1994,
mills and processes rice. The firm has a rice processing unit at
Hamidpur, near Delhi. It processes mainly basmati rice of the Pusa
1121 variety. It does not export directly, but sells the processed
rice to wholesalers and merchant exporters in India. The day-to-
day operations are managed by Mr. Rakesh Kumar Sidana, who is one
of the partners.
For 2013-14 (refers to financial year, April 1 to March 31), SGRM
reported a net profit of INR0.6 million on net sales of INR401.5
million (Rs.1.1 million and INR332.4 million, respectively, for
2012-13).
SOUNDARYA DECORATORS: CRISIL Ups Rating on INR117.5MM Loan to B
---------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank loan
facilities of Soundarya Decorators Pvt Ltd (SDPL) to 'CRISIL
B/Stable' from 'CRISIL B-/Stable', and has reaffirmed its rating
on the company's short-term facilities at 'CRISIL A4'.
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Bank Guarantee 300 CRISIL A4 (Reaffirmed)
Cash Credit 75 CRISIL B/Stable (Upgraded
from 'CRISIL B-/Stable')
Proposed Long Term 117.5 CRISIL B/Stable (Upgraded
Bank Loan Facility from 'CRISIL B-/Stable')
Working Capital 7.5 CRISIL B/Stable (Upgraded
Demand Loan from 'CRISIL B-/Stable')
The rating upgrade reflects CRISIL's belief that SDPL will sustain
its improving operating performance over the medium term supported
by its healthy order book of INR1.45 billion as on November 1,
2014. The company's operating income for the six months ended
September 30, 2014, was INR515.8 million, against INR529.0 million
for 2013-14 (refers to financial year, April 1 to March 31). SDPL
is likely to generate cash accruals of over INR80 million during
2014-15, as compared to cash losses in 2013-14. CRISIL believes
that with the company's sustenance of its increased scale of
operations and with the improvement in its operating margin, its
financial risk profile will gradually improve over the medium
term.
The ratings continue to reflect SDPL's working-capital-intensive
operations and below-average financial risk profile, marked by a
small net worth, high gearing, and below-average debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of the company's promoters in the industry,
the funding support it receives from them, and their established
relationships with clients.
Outlook: Stable
CRISIL believes that SDPL will continue to benefit over the medium
term from its promoters' extensive industry experience. The
outlook may be revised to 'Positive' if there is significant and
sustainable growth in the company's revenue and margins, while it
improves its capital structure. Conversely, the outlook may be
revised to 'Negative' in case of a significant decline in SDPL's
accruals, or a stretch in its working capital cycle, or
substantial debt-funded capital expenditure, adversely impacting
its financial risk profile.
SDPL, set up in 1992, is promoted by Mr. Balaji Rajaraman and Mr.
Sathyamurthy Durai. The company designs interiors and manufactures
custom furniture. Its registered office is in Chennai.
SPRINGBOARD ENTERPRISES: ICRA Rates INR5cr Fund Based Loan at 'B'
-----------------------------------------------------------------
ICRA has assigned its long term rating of [ICRA]B to the INR5
crore fund based bank limits and INR1 crore unallocated fund based
bank limits of Springboard Enterprises India Limited. ICRA has
also assigned its long term rating of [ICRA]B and short term
rating of [ICRA]A4 to the 4 crore unallocated fund based and non
fund based bank limits of SEIL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund Based Limits
Bank of India 5.00 [ICRA]B; Assigned
Unallocated Fund
Based Limits 1.00 [ICRA]B; Assigned
Fund Based/Non
Fund Based Limits
Unallocated 4.00 [ICRA]B/[ICRA]A4; Assigned
ICRA's ratings factor in the company's weak profitability metrics
which have resulted in weak debt protection indicators and the
company's stretched liquidity position, as reflected in high
utilisation of its bank limits due to high debtor days. The
ratings also take into account the high customer concentration
risk, given that its top 5 customers accounted for 80% of the
total sales in FY 2014. The ratings further take into account the
company's moderate scale of operations and exposure of
profitability to fluctuations in foreign exchange rates, given the
lack of hedging mechanism for export receivables.
However, the ratings favourably factor in the extensive experience
of SEIL's promoters who have a long track record in the
agricultural equipment industry, the company's reputed client base
and the favourable growth prospects for agriculture in Africa --
the key market for its products.
SEIL was incorporated in 2005 as a private limited company and
converted into a public limited company w.e.f. July 07, 2012.
The company is mainly engaged in trading of agriculture equipment
and implements, and equipment for the dairy, fisheries and
irrigation sectors. The company is involved in the servicing of
the equipment as well. In addition, the company also receives
commission from various clients for supplying the products on
their behalf. The company primarily exports the goods to various
African Countries.
The company reported a net profit of INR0.84 crore on an operating
income of INR35.51 crore in FY 2013-14 as against a net profit of
INR1.53 crore on an operating income of INR33.50 crore in FY 2012-
13.
SYMCOM EXIM: ICRA Place B Rating on INR25cr Working Capital Loan
----------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B to the INR25.00
crore long-term fund-based sublimits2 and INR10.0 crore long-term
non-fund based sublimits1 of Symcom Exim Private Limited. ICRA has
also assigned a short-term rating of [ICRA]A4 to the INR55.00
crore short-term, non-fund based limits of the company.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Long-term, fund (25.00) [ICRA]B assigned
based working
capital facilities
Long-term, non- (10.00) [ICRA]B assigned
fund based working
capital facilities
Short-term, non- 55.00 [ICRA]A4 assigned
fund based working
capital facilities
The rating takes into account the established experience of the
promoters in scrap related business and ability of the promoter to
arrange supply of scrap given its proven know-how through its
group concern in similar line of business. The ratings, however,
are constrained by SEPL's nascent stage of operations with FY14
being the first year of operations, modest value addition
resulting in thin operating margins and susceptibility of margins
to fluctuations in steel prices. The rating also factors in severe
competition with dominant presence of the unorganized sector which
adds to the volatility in margins.
Incorporated in 2012, Symcom Exim Private Limited is engaged in
disposing of scrap from sick units, shipping vessels and other
government organizations. The company is promoted by Mr. Gopal
Goyal and Mr. Suresh Jasiwal who have extensive experience in the
business.
Recent results:
As per the provisional results, SEPL recorded a profit before tax
of INR0.25 crore on an operating income of INR12.70 crore in FY14.
TIRUPATI STARCH: ICRA Reaffirms B+ Rating on INR23.08cr Term Loan
-----------------------------------------------------------------
ICRA has reaffirmed its long term rating of [ICRA]B+ on the
INR28.58 crore bank facilities of Tirupati Starch & Chemicals
Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Fund-Based limits- 5.50 [ICRA]B+; reaffirmed
Long Term scale
Term Loan-Long Term 23.08 [ICRA]B+; reaffirmed
scale
The rating continues to factor in the vulnerability of the
company's profitability to volatility in maize prices and its low
pricing power with suppliers and consumers. The rating also
factors in risks inherent in agro based industries like raw
material availability and crop harvest as the company is largely
dependent on maize as its raw material. The rating also takes into
account the company's weak financial risk profile, characterised
by low profitability and return indicators, moderately high
gearing and weak debt coverage indicators. ICRA also takes note of
risks related to project stabilisation and off take risks on
account of the large capital expenditure incurred by the company;
as well as the deterioration in the capital structure, due to the
debt funded nature of the expansion project.
The rating, however, favourably factors in the extensive
experience of the promoters and the company's established track
record in the maize starch industry; the multiple end applications
for its products which help considerably mitigate the risks
arising from fluctuation in demand from any one sector and the
geographically diversified client base of the company.
TSCL was incorporated in 1985 and commenced production of normal
starch, X-pharma grade starch and Dextrines in 1989. The company
was promoted by Dr. Damador Modi, along with six other promoter
Directors. The company undertook forward integration in 1996 and
started producing Dextrose Monohydrate and Dextrose Anhydrous
IP/BP/USP. TSCL's wet corn processing facility is located at
Village-Sejwaya Ghatabillod, in Dhar district in Madhya Pradesh.
The company's current manufacturing capacity includes maize starch
powder manufacturing capacity of 17,000 tonnes per annum (tpa),
Dextrose Monohydrate capacity of 1,600 tpa and Dextrose Anhydrous
capacity of 4,400 tpa. The company has undertaken a capacity
expansion project at a project cost of INR49.59 crore, which is
expected to commence operations from November 2014.
Recent Results
In 2013-14 the company reported a net profit of INR1.19 crore on
an operating income of INR61.48 crore, as against a net loss of
INR0.82 crore on an operating income of INR58.90 crore in 2012-13.
TRISHA MARKETING: ICRA Assigns B Rating to INR1cr Cash Credit
-------------------------------------------------------------
ICRA has assigned its long-term rating of [ICRA]B to the
INR1 crore fund based bank facility of Trisha Marketing Private
Limited. ICRA has also assigned its short term rating of [ICRA]A4
to the INR9 crore non fund based bank facility of TMPL. ICRA has
also assigned its ratings of [ICRA]B/[ICRA]A4 to the INR2.5 crore
unallocated bank limits of TMPL.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Cash Credit 1.0 [ICRA]B; Assigned
LC 9.0 [ICRA]A4; Assigned
Unallocated 2.5 [ICRA]B/[ICRA]A4; Assigned
The assigned ratings factor in the nascent stage of the company,
with operations having commenced in June 2014. The ratings also
take into account the low and volatile margins which are inherent
to the trading business and the high inventory price risk for the
company given that the majority of the procurement is not on a
back to back basis. The ratings also take cognizance of the high
competition intensity in the industry due to low entry barriers,
which combined with the company's modest scale of operations,
result in pressure on margins. However, the ratings favourably
factor in the extensive experience of the promoters in the trading
business and financial support from group companies in the form of
unsecured loans. The ratings also take into account the fact that
the company does not have any scheduled long term debt repayments.
Going forward, the ability of the company to increase its scale of
operations while maintaining adequate profitability and a prudent
capital structure will be the key rating sensitivities.
Incorporated in 2003, TMPL is a closely held company promoted by
Mr. Murari Lal Gupta and his son Mr. Mohit Gupta. The company
commenced operations in June 2014 and is engaged in importing and
trading of mobile handsets, chemicals and steel products. TMPL has
signed a memorandum of understanding with Anmol Stainless Private
Limited for using its facility located at Hooghly, West Bengal,
for processing of steel coils.
VAISHNO RICE: CRISIL Rates INR100MM Warehouse Receipts at B+
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-term
bank facilities of Vaishno Rice Mills (VRM).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 25 CRISIL B+/Stable
Warehouse Receipts 100 CRISIL B+/Stable
The rating reflects VRM's below-average financial risk profile
marked by a small net worth, a high gearing and weak debt
protection metrics, and modest scale of operations in a highly
fragmented industry. These rating weaknesses are partially offset
by the extensive industry experience of VRM's partners, and the
funding support that the firm receives from them.
Outlook: Stable
CRISIL believes that VRM will continue to benefit over the medium
term from its partners' extensive industry experience and their
funding support. The outlook maybe revised to 'Positive' in the
event of significantly better-than-expected cash accruals or
substantial capital infusion along with efficient working capital
management. Conversely, the outlook maybe revised to 'Negative' in
case VRM's cash accruals are significantly low or if its working
capital requirements are larger than expected, or in case of
withdrawal of funding support by its partners, resulting in
further pressure on its liquidity.
VRM, established in 1978, mills and trades in rice, including
basmati rice. Its production facilities are at Gurdaspur (Punjab).
The firm is owned and managed by Mr. Bal Krishan Mittal and his
son, Mr. Rajan Mittal. The promoter family operates two other
entities in the rice industry, namely, Gurdaspur Overseas Ltd
(rated 'CRISIL BB-/Stable/CRISIL A4+') and The Mittal Udyog Samiti
('CRISIL B+/Stable/CRISIL A4').
VSSN KALLUR: CRISIL Assigns B- Rating to INR110MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the bank
facility of VSSN Kallur (Kallur Society).
Amount
Facilities (INR Mln) Ratings
---------- --------- -------
Cash Credit 110 CRISIL B-/Stable
The rating reflects the Kallur Society's weak asset quality, and
small scale of operations marked by geographical concentration.
These rating weaknesses are partially offset by the support that
Kallur Society receives from State Bank of Hyderabad on debt
funding.
Outlook: Stable
CRISIL expects Kallur Society's asset quality and capitalisation
to remain weak over the medium term. The outlook may be revised to
'Positive' in case of significant improvement in the society's
delinquency level, capitalisation, and scale of operations.
Conversely, the outlook may be revised to 'Negative' if Kallur
Society's asset quality deteriorates significantly thereby
impacting its earnings and capitalisation.
Kallur Society is a primary agricultural society incorporated in
1976, sponsored by State Bank of Hyderabad since its inception.
Kallur Society is registered with the Registrar of Cooperative
Societies, Karnataka. It operates in five villages in Raichur
district of Karnataka. The society extends crop loans to its
members. As on March 31, 2014, it had a loan portfolio of INR111
million.
For 2013-14 (refers to financial year, April 1 to March 31),
Kallur Society earned a net surplus of INR1.4 million on a total
income of INR18.7 million, compared with a net surplus of INR2.1
million on a total income of INR12.7 million for the previous
year.
ZURI HOTELS: ICRA Reaffirms 'D' Rating on INR20cr Term Loan
-----------------------------------------------------------
ICRA has reaffirmed the long-term rating of [ICRA]D outstanding on
the INR20.0 crore Term Loans and INR2.0 crore Long-Term Fund Based
Limits of Zuri Hotels and Resorts Private Limited.
Amount
Facilities (INR crore) Ratings
---------- ----------- -------
Term Loans 20.0 [ICRA]D/reaffirmed
Long-Term Fund
Based Limits 2.0 [ICRA]D/reaffirmed
The reaffirmation in rating continues to factor in delays in debt
servicing by the company owing to its tight liquidity position.
The company's financial profile is characterized thin net margins
and weak coverage indicators arising from high fixed costs
(interest and depreciation). The operating metrics of the company
have also been constrained by the moderate size of operations of
the company with a single property in Kumarakom with tourism
(seasonal) being the main source of revenues.
Part of the Zuri group, which also has properties in Bangalore and
Goa, the company enjoys financial support from the promoters who
have periodically infused funds in the company by way of unsecured
loans. Going forward, the company's ability to improve its
operational performance and profitability in order to regularize
its debt servicing will be critical for improvement in credit
profile.
Part of the Zuri Group, Zuri Hotels and Resorts Private Limited
(ZHRPL) is primarily engaged in hospitality business with a 5-star
hotel in Kumarakom (72 rooms). Apart from the hotel, the company
also has a total wind generation capacity of 5 Mega Watts (MW)
with 20 turbines of 250 Kilo Watt (KW) each situated at Alankulam
Village, Tirunelvelli District, Tamil Nadu. The entire electricity
generation is sold to Tamil Nadu Electricity Board as per the
Power Purchase Agreement entered with them. The company was formed
in April, 2013 by demerging the The Zuri Kumarakom Resorts & Spa,
Kerala which was earlier under the erstwhile Zuri Hospitality
Private Limited which owned three properties namely the Zuri Varca
White Sands Resort & Casino, Goa, The Zuri Kumarakom Resorts &
Spa, Kerala and The Zuri Whitefield, Bengaluru.
The Zuri group was founded by Mr. Chamanlal Kamani, an NRI from
Rajkot in Gujarat who had migrated to Kenya in late 1940s.The
group has presence in furniture, real estate, floriculture and
hospitality in several countries. In India, the group is mainly
present in hospitality business with two 5-star deluxe hotels and
one 5-Star hotel. The Indian operations are being looked after Mr.
Chamanlal's grand-sons Mr. Aditya Deepak Kamani and Mr. Abhishek
Rashmi Kamani. The promoters also own around 300 acres of land in
Goa on which they have plans to develop high end villas.
Recent Results
For 2013-14, the company reported a net profit of INR0.07 crore on
an operating income of INR23.3 crore as against a net loss of
INR1.3 crore on an operating income of INR22.7 crore during 2012-
13.
=========
J A P A N
=========
JAPAN: Recession Will Hurt Some U.S. Companies, AP Reports
----------------------------------------------------------
The Associated Press reports that Japan's slip back into a
recession for the second time in two years could mean more trouble
for a range of U.S. companies and industries that count on the
country for sales.
Best known as an exporter of cars, gadgets and comic books, Japan
is also a key consumer of U.S. goods and services from name-brand
companies, the report says. Japanese customers take a shine to
diamonds from Tiffany, strap on handbags from Coach and ride
choppers from Harley-Davidson, AP relates.
"If the Japanese economy continues to shrink, it has a big impact
on other countries," AP quotes Sheila Smith, senior fellow for
Japan studies at the Council on Foreign Relations, as saying.
"It's not like some isolated economy. Having a strong and vibrant
Japan is important for everybody."
According to the AP, Prime Minister Shinzo Abe announced on
November 18 steps aimed at keeping the downturn from getting
worse. Abe postponed another hike in the consumption tax and
called for national elections next month. An increase in that
sales tax earlier this year has been widely blamed for the most
recent slump, the report notes.
SONY CORPORATION: Fitch Affirms 'BB-' IDR, Outlook Now Stable
-------------------------------------------------------------
Fitch Ratings has affirmed Sony Corporation's (Sony) Long-Term
Foreign- and Local-Currency Issuer Default Ratings (IDRs) of
'BB-'. The Outlook has been revised to Stable from Negative.
KEY RATING DRIVERS
Stable Outlook: The Outlook revision reflects Fitch's expectations
of steady progress with restructuring. However, Fitch believes
that Sony's profitability, excluding Sony Financial Holdings
(SFH), remains fragile and is subject to currency risks. Sony
said that every JPY1 decline against the US dollar decreases
operating profit by JPY3bn. The company's loss of technology
leadership, the high competition in its key products and low
profitability in the electronics business will continue to
constrain the ratings.
Profitability Improvement: Fitch believes that Sony's
restructuring efforts should help stabilize its profitability at
the current level. In 1H of the financial year ending 31 March
2015 (FYE15), profitability was enhanced by product mix
improvement and headcount reductions and other streamlining
measures implemented in the past 12 months. Excluding goodwill
impairments, losses of the discontinuing PC business, profits from
asset sales and insurance recoveries, ex-SFH operating EBIT was
JPY139bn in 1HFYE15, against a loss of JPY52bn in 1HFYE14.
Highly Competitive Markets: Fitch believes stiffer competition in
Sony's key products will continue to constrain its margin
recovery. Sony recently cut its TV and smartphone shipments
forecasts yet again, following meaningful previous cuts in July.
Fitch expects Sony will continue to struggle to achieve the scale
required for the smartphone business to be a success, given the
intensifying competition in midrange to low-end from Chinese
brands and increasingly commoditized high-end segments. For TV,
Fitch expects it will remain a challenge to achieve a significant
margin improvement above breakeven, given the intense price
competition.
Weak Cash Generation: Fitch expects Sony's ex-SFH profitability
will remain weak, and this will continue to constrain its cash
generation. Though ex-SFH free cash flow (FCF) finally turned
positive in FYE14, Fitch expects its ex-SFH pre-dividend FCF to
remain small in the next two to three years. However, Sony's
decision to halt dividends until the completion of its
restructuring and a recovery in its financial profile should
protect from further deterioration in FCF and liquidity.
Adequate Liquidity: Fitch expects Sony's liquidity to remain
adequate. At end-Sept. 2014, Sony had unrestricted cash of
JPY456bn, compared with its debt due within one year of JPY232bn.
The company also had unused credit facilities of JPY750bn at end-
Sept. 2014. The company continues to have good access to capital
markets.
RATING SENSITIVITIES
Negative: Future developments that may, individually or
collectively, lead to negative rating action include (for Sony
excluding SFH):
-- sustained negative operating EBIT margin (FYE14: -2.1%)
-- funds flow from operations (FFO)-adjusted leverage
sustained above 5.0x (FYE14: 7.6x)
Positive: Future developments that may, individually or
collectively, lead to positive rating action include (for Sony
excluding SFH):
-- sustained operating EBIT margin above 1%
-- FFO-adjusted leverage is sustained below 4.5x
LIST OF RATING ACTIONS:
Long-Term Foreign- and Local-Currency IDRs affirmed at 'BB-';
Outlook revised to Stable from Negative
Local-currency senior unsecured rating affirmed at 'BB-'
Short-Term Foreign- and Local-Currency IDRs affirmed at 'B'
====================
N E W Z E A L A N D
====================
BASKETBALL OTAGO: Set to Call Liquidator Next Month
---------------------------------------------------
Adrian Seconi at Otago Daily Times reports that Basketball Otago
is bust and will hold a special general meeting next month to
ratify the appointment of a liquidator.
However, a long-serving coach and administrator is confident club
and school basketball competitions will still operate next season,
the report says.
Otago Daily Times relates that following five months of
speculation about its financial position, and confirmation the
Otago Nuggets were withdrawing from the national league, BBO
issued a statement advising its financial position was beyond
salvaging.
"Basketball Otago's financial position is such that in the board's
opinion, having taken legal advice, it cannot continue to
operate," the report quotes chairman Ricky Carr as saying. "The
board has been trying very hard to find a way to resolve its
financial predicament. This has proved impossible."
BBO has sent letters to its creditors advising them of the
situation, and given its members notice of a special general
meeting on December 16 to appoint a liquidator, Otago Daily Times
discloses. According to the report, Mr. Carr said the BBO board
would be working with Sport Otago to look at "options" for
community basketball to continue.
The accounts for the financial year ending December 2013 have not
been made public, but the Otago Daily Times understands the
deficit will be about NZ$50,000.
BBO reported a loss of NZ$13,166 for the financial period ending
December 31, 2012. That loss followed a deficit of NZ$36,787
recorded during the previous period, which meant BBO started 2013
with negative equity of NZ$52,832, the report discloses.
Otago Daily Times adds that sources close to the issue said BBO's
final debt could be between NZ$160,000 and NZ$200,000.
===============
P A K I S T A N
===============
PAKISTAN: S&P Affirms 'B-' LT Sovereign Credit Rating
-----------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B-' long-term and
'B' short-term sovereign credit ratings on the Islamic Republic of
Pakistan. The outlook on the long-term rating is stable.
RATIONALE
The sovereign credit ratings on Pakistan incorporate the country's
significant security risks, the underlying weak institutional and
policy effectiveness, low external liquidity, low per capita
income, a weak fiscal profile, high public debt, and a lack of
monetary flexibility.
The domestic and external security situation remains challenging.
The Taliban has been continuing its attacks in the country,
despite the army's significant progress in fighting the militants.
The stability of Afghanistan after the withdrawal of the U.S.-led
coalition is an added risk. Apart from security concerns, notable
bureaucracy and perceived corruption constrains governance and
institutional effectiveness. Nevertheless, Pakistan's political
landscape is more stable than that a few years ago. The country
undertook the first democratic transition in its 66-year history
in June 2013. Prime Minister Nawaz Sharif's PML-N party has a
parliamentary majority, and most political parties supported the
prime minister against a challenge launched by a key political
opponent in recent months.
Pakistan's high external risk had subsided notably since the
second quarter of 2014. The increase in the country's foreign
exchange reserves in recent months has tempered external liquidity
risk. S&P expects Pakistan's usable foreign exchange reserves to
cover about two months current account payments at the end of
fiscal 2015 (June 2015), up from 1.5 months at the end of fiscal
2014, assuming timely disbursements under the IMF's lending
program and a strengthening inflow of foreign direct investments.
Accordingly, S&P estimates Pakistan's gross external financing
needs will decline slowly to 107% of current account receipts plus
usable reserve at the end of fiscal 2015 from 113% a year ago.
The ratio could improve further, should import prices of oil
continue to decline.
As the capital inflow in recent months has been slightly more
debt-based than S&P expected, it forecasts a marginally slower
improvement in Pakistan's external indebtedness. S&P projects the
external debt burden net of public and financial sector external
assets at 78% of current account receipts at the end of fiscal
2015, falling to 70% by fiscal 2017.
S&P believes Pakistan's low income level will remain a rating
constraint. With per capita GDP at US$1,500 in fiscal 2015, the
government has a low revenue base on which to draw. Structural
factors weigh on Pakistan's growth potential over the medium term,
in S&P's view. Power shortages remain serious, despite the
government's energy sector strategy starting to increase
electricity supply. The business environment and perceptions of
government administrative inefficiency hampers investment and job
growth in the formal economy.
Pakistan's high fiscal deficit stems from chronically low revenue
generation and expenditure rigidities. S&P expects the
government's fiscal consolidation efforts to lower its deficit
(inclusive of grant) to 3.4% of GDP in fiscal 2017 from 8% of GDP
in fiscal 2013, after having cut the deficit to 5% of GDP in
fiscal 2014. S&P anticipates the average increase in general
government debt for fiscal 2015-2017 (which we estimate at 5% of
GDP) will be much lower than the average increase over the
previous three years (8.5% in fiscal 2012-2014), while spending
pressure from a marked shortfall in basic service and
infrastructure hampers fiscal flexibility.
Accordingly, S&P expects Pakistan's net general government debt-
to-GDP ratio to marginally decline to 55% by the end of fiscal
2017, from 57% of GDP at the end of fiscal 2014. S&P projects
that the interest expense on this debt is likely to remain close
to 30% of general government revenue, limiting discretionary
spending.
Pakistan's weak fiscal performance still constrains the
effectiveness of its monetary policy as the government continues
to borrow from the central bank for deficit financing. Such
constraints only eased modestly in recent months. As of end-Sept.
2014, the central bank's net claims on the general government
amounted to 83% of the monetary base, despite a notable decline
from 98% at the end of 2013. Meanwhile, with inflation likely
hovering above 6% over the next three years, the State Bank of
Pakistan has only limited room to support the economy with
monetary easing when necessary.
OUTLOOK
The stable rating outlook balances the potential benefits of the
government's reform efforts and the IMF lending program against
vulnerabilities posed by domestic and external security challenges
and high fiscal risk over the next 12 months.
S&P may raise the ratings if Pakistan shows greater progress than
it currently expects in lowering security risks and deepening
structural reforms, leading to significantly faster improvements
in the business environment and Pakistan's fiscal and external
metrics. S&P may lower the ratings if the government's reform
efforts slow down, resulting in delayed inflow of multilateral
funding. Such a development could exacerbate Pakistan's external
liquidity risk and dampen the fiscal profile.
In accordance with S&P's relevant policies and procedures, the
Rating Committee was composed of analysts that are qualified to
vote in the committee, with sufficient experience to convey the
appropriate level of knowledge and understanding of the
methodology applicable. At the onset of the committee, the chair
confirmed that the information provided to the Rating Committee by
the primary analyst had been distributed in a timely manner and
was sufficient for Committee members to make an informed decision.
After the primary analyst gave opening remarks and explained the
recommendation, the Committee discussed key rating factors and
critical issues in accordance with the relevant criteria.
Qualitative and quantitative risk factors were considered and
discussed, looking at track-record and forecasts.
The committee agreed that external economic risk had improved.
All other key rating factors were unchanged.
The chair ensured every voting member was given the opportunity to
articulate his/her opinion. The chair or designee reviewed the
draft report to ensure consistency with the Committee decision.
The views and the decision of the rating committee are summarized
in the above rationale and outlook. The weighting of all rating
factors is described in the methodology used in this rating
action.
RATINGS LIST
Ratings Affirmed
Pakistan (Islamic Republic of)
Sovereign Credit Rating B-/Stable/B
Senior Unsecured B-
Short-Term Debt B
=================
S I N G A P O R E
=================
OW BUNKER: Australian Unit Up For Sale
--------------------------------------
Cliff Sanderson at Dissolve.com.au reports that urgent expressions
of interest are sought for the sale of the business and assets of
O.W. Bunker Australia Pty Ltd. The company is currently in
voluntary administration, the report says.
Todd Andrew Gammel of HLB Mann Judd was appointed as administrator
of the company on Nov. 12, 2014, Dissolve.com.au discloses.
OW Bunker A/S is a Danish shipping fuel provider.
On Nov. 7, 2014, OW Bunker A/S, which went public in March,
declared bankruptcy and reported two employees at its Singapore
unit to the police following allegations of fraud. It owes 15
banks a total of about US$750 million.
OW Bunker said on Nov. 5 it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singapore office and poor risk management. Trading in its shares
was suspended on Nov. 5 and the company said its banks had
refused to provide more credit.
OW Bunker's U.S. businesses, which opened in 2012 as part of its
global expansion, filed Chapter 11 petitions on Nov. 13.
OW BUNKER: Second Singaporean Unit Files for Liquidation
--------------------------------------------------------
Eric Yep at The Wall Street Journal reports that Dynamic Oil
Trading Singapore Pte. Ltd. filed for liquidation on November 18,
making it the second Singapore subsidiary of OW Bunker A/S to go
bust.
Parent company OW Bunker filed for bankruptcy on Nov. 8 after an
alleged $125 million fraud at Dynamic Oil Trading Singapore and
the failure of internal risk-management systems, the Journal says.
Last week, another unit of OW Bunker, OW Bunker Far East
(Singapore) Pte. Ltd., filed for liquidation, the Journal
discloses. O.W. Bunker has also placed its U.S. subsidiaries in
Chapter 11 bankruptcy, the Journal relates.
KPMG has been appointed as provisional liquidator for both Dynamic
Oil Trading Singapore and OW Bunker Far East Singapore, a KPMG
spokeswoman confirmed, but declined to provide further details,
according to the Journal.
Creditors' claims against Dynamic Oil Trading and OW Bunker Far
East now total almost SGD48 million (US$37.2 million) from eight
companies in Singapore so far, the Journal says citing court
documents.
The largest claim made yet is by Hin Leong Trading Pte. Ltd., one
of Singapore's largest independent oil traders. It has stated a
claim of around SGD5.5 million from OW Bunker Far East and
SGD15.4 million from Dynamic Oil, according to court documents
reviewed by The Wall Street Journal.
Bunker House Petroleum Pte. Ltd. has stated claims of
SGD5.2 million from OW Bunker Far East, while Japan's Mitsui & Co.
Energy Trading Singapore Pte. Ltd. has stated a claim of almost
SGD12.9 million from Dynamic Oil Trading, the Journal relates.
Other claimants are Golden Island Diesel Oil Trading Pte. Ltd.,
Sirius Marine Pte. Ltd., Equatorial Marine Fuel Management
Services Pte. Ltd., Panoil Petroleum Pte. Ltd. and TNS Bunkers (S)
Pte. Ltd., says the Journal.
According to the Journal, the liquidation process will now require
creditors to file a proof of claim -- a document that asserts a
creditor's right over a liquidator's asset -- which will be
reviewed by the court, followed by a meeting of creditors.
About OW Bunker
OW Bunker A/S is a Danish shipping fuel provider.
On Nov. 7, 2014, OW Bunker A/S, which went public in March,
declared bankruptcy and reported two employees at its Singapore
unit to the police following allegations of fraud. It owes 15
banks a total of about US$750 million.
OW Bunker said on Nov. 5 it had lost US$275 million through a
combination of fraud committed by senior executives at its
Singapore office and poor risk management. Trading in its shares
was suspended on Nov. 5 and the company said its banks had
refused to provide more credit.
OW Bunker's U.S. businesses, which opened in 2012 as part of its
global expansion, filed Chapter 11 petitions on Nov. 13.
===============
X X X X X X X X
===============
* Large Companies with Insolvent Balance Sheets
-----------------------------------------------
Total
Total Shareholders
Assets Equity
Company Ticker (US$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 202-362-8552.
*** End of Transmission ***