/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120816.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Thursday, August 16, 2012, Vol. 15, No. 163 Headlines A U S T R A L I A AUSTRALIAN INDEPENDENT BREWERS: New Owners to Increase Production COMPLIANCE & COMPETENCY: Goes Into Liquidation DAMELIAN AUTOMOBILE: Owner Faces Court Action Over AUD8MM Loan MOWBRAY COLLEGE: Private Schools Line Up to Buy Three Campuses STORM FINANCIAL: Investors Payout Could Top AUD1 Billion * Moody's Says Australian ABS Delinquencies Up in Second Quarter H O N G K O N G ALLSTEEL ASIA: Members' Final Meeting Set for Sept. 11 ANASWEALTH LIMITED: Members' Final Meeting Set for Sept. 11 ASIA WELDING: Members' Final Meeting Set for Sept. 11 BEST VALUE: Members' Final Meeting Set for Sept. 11 CREDIT AGRICOLE: Members' Final Meeting Set for Sept. 10 HAWK TRADING: Members' Final Meeting Set for Sept. 11 PHYSICAL PROPERTY: Incurs HK$175,000 Net Loss in Second Quarter RICH SUCCESS: Creditors' Proofs of Debt Due Sept. 11 RULERETT COMPANY: Creditors' Proofs of Debt Due Sept. 10 SECURED FINANCIAL: Creditors' Proofs of Debt Due Sept. 10 SEIHUA INT'L: Final Meetings Set for Sept. 14 SUNLINK GROUP: Creditors' Meeting Set for Aug. 22 TANZANITE HK: Members' Final Meeting Set for Sept. 11 WANG WAN: Creditors' Proofs of Debt Due Sept. 12 WU QIAOMEI: Members' Final Meeting Set for Sept. 20 YINLI TRADING: Members' Final Meeting Set for Sept. 17 I N D I A ARYA COTTON: ICRA Rates INR8cr Cash Credit at '[ICRA]B+' DIVINE PROJECT: CARE Assigns Junk Ratings on INR4.54cr LT Loan DRS WAREHOUSING: ICRA Assigns '[ICRA]B+' Rating to INR48cr Loans ELEGANT OVERSEAS: CARE Assigns 'B+' Rating to INR0.48cr Loans EXPRESS PUBLICATIONS: Delays in Loan Payment Cues Junk Ratings FRISCHMANN PRABHU: CARE Rates INR3.5cr LT Loan at 'CARE B+' GEETANJALI AGRO: ICRA Assigns '[ICRA]B' Rating to INR13cr Loan ICICI BANK: Moody's Assigns 'Ba1' Jr. Subordinated Debt Rating INDUS FILA: Fitch Affirms 'D' National Long-Term Rating KOHINOOR PULP: CARE Assigns 'BB+' Rating to INR339.5cr LT Loan ROTOAUTO ENG'G: ICRA Assigns 'B+' Rating to INR7.50 Loans SARVODAYA SUITINGS: CARE Rates INR42.34cr Loan at 'CARE C' SRI VENKATESWARA: ICRA Reaffirms '[ICRA]B' Rating on INR9cr Loan SUBEDAR RAJ: Fitch Assigns 'D' National Long-Term Rating TATA STEEL: Fitch Affirms LTFC Issuer Default Rating at 'BB+' TIMES STEEL: CARE Rates INR22cr LT Loan at 'CARE BB-' VRIJESH CORPORATION: ICRA Reaffirms 'BB-' Rating on INR10cr Loan J A P A N ELPIDA MEMORY: Bondholders May Ask U.S. Court to Halt Micron Sale SHICOH CO: Minebea Concludes Sponsor Agreement N E W Z E A L A N D CAPITAL + MERCHANT FINANCE: May Face Receivers' Legal Claim FELTEX CARPETS: Court of Appeal Hears Defendant Challenge NATIONAL FINANCE: Director Sentencing Delayed Until Aug. 24 - - - - - ================= A U S T R A L I A ================= AUSTRALIAN INDEPENDENT BREWERS: New Owners to Increase Production ----------------------------------------------------------------- James Atkinson at The Shout News reports that the new owner of the major contract brewing facility previously operated by Australian Independent Brewers is upbeat about the business's future prospects, with increased production of beer, cider and even RTDs on the cards. Brewpack, an Australian start-up company, recently acquired the brewing assets of AIB, which was placed into receivership in July, according to The Shout News. The report notes that Brewpack director Anton Szpitalak told TheShout his family, which has a business background predominately in the manufacture of solar products, decided to invest in the brewery after being alerted to the opportunity by his brother Marek, who was head brewer at AIB during some of its receivership. COMPLIANCE & COMPETENCY: Goes Into Liquidation ---------------------------------------------- Cara Waters at SmartCompany reports that software company Compliance & Competency Management has gone into liquidation and the Fair Work Ombudsman claims five employees have been left short-changed to the tune of AUD286,876. SmartCompany says the Ombudsman has launched a prosecution against James Robert Manning, the sole owner and director of Compliance & Competency Management, after the company went bust earlier this year. According to the report, the case is listed for hearing in the Federal Magistrates Court on December 12 and the FWO alleges Mr. Manning was centrally involved in underpaying five employees a total of AUD286,876 in salaries, annual leave entitlements and superannuation between September 2009 and April, 2010. SmartCompany relates that the IT workers were allegedly not paid any wages for up to four months. They raised the non-payment of their wages with Mr. Manning numerous times. The FWO is alleging that Manning had more than 20 years' experience in business and has been a director of 27 different companies -- and so had an awareness of his obligations under workplace laws, SmartCompany adds. Compliance & Competency Management was a South Australia-based software company. DAMELIAN AUTOMOBILE: Owner Faces Court Action Over AUD8MM Loan -------------------------------------------------------------- goldcoast.com.au reports that Rick Damelian, owner of collapsed Damelian Automobile Limited, is facing court action over AUD8 million in unpaid loans. According to the report, Mr. Damelian on Monday appeared in the Supreme Court to fight another battle, against the receiver of Damelian Automobile. The receiver claims Mr. Damelian owes the company AUD1.9 million as part of his director's loan account, the report notes. In a separate lawsuit, goldcoast.com.au relates, the NAB is trying to force him to repay a AUD6 million mortgage it gave him in 2010. goldcoast.com.au says Mr. Damelian, who argues his debt to the company had been cancelled out by amounts he was owed, on Monday gave evidence of a happier time in his business life. He told how his dealerships turned over AUD200 million a year when they were at their peak. But his business turned sour in recent years and Damelian Automobile had AUD53 million in debts, mostly to NAB, and only AUD14 million worth of assets when receivers were appointed in September last year. At that time, goldcoast.com.au notes, Mr. Damelian ran eight car dealerships, including Honda and the luxury European brands Renault, Citroen, Fiat and Alfa. Some of the car yards have been sold, while others remain on the market, the report relays. According to the report, Mr. Damelian got into financial hot water when he on-loaned AUD6 million in loans he was given by the bank to fund the car dealerships, rather than taking out a traditional commercial loan. His company has since made some repayments of the home loan but the court was told Mr. Damelian remains personally liable for the balance, goldcoast.com.au adds. MOWBRAY COLLEGE: Private Schools Line Up to Buy Three Campuses -------------------------------------------------------------- Philip Hopkins at smh.com.au reports that several private schools are lining up to buy the insolvent Mowbray College, whose three campuses at Melton are for sale. According to smh.com.au, Fitzroys agent David Bourke, part of the Fitzroys-CBRE team selling the college, said several schools had identified Melton as a place for them to establish and expand. "Melton campus is a significant infill site well suited to development. There is still a reasonably steady market in the schools sector," the report quotes Mr. Bourke as saying. smh.com.au relates that Mr. Bourke said all three Mowbray campuses were extensive in scope. "The cost to replace them would be very high," Mr. Bourke said, so a number of private school bodies were interested. "There are also inquiries from developers. The town centre campus is well located in the centre of Caroline Springs, and the Melton property is also a large infill site." The campuses could be adapted for community or educational use. According to the report, the three school properties up for grabs are Patterson Campus, Centenary Avenue, Melton; Town Centre Campus in Caroline Springs; and Brookside Campus, Caroline. The expressions of interest campaign closes on September 14, the report adds. About Mowbray College Mowbray College was a Melbourne-based private school. It has three campuses with about 1,000 students, and 200 staff. The college entered voluntary administration late last month with debts of AUD18 million and is owed about AUD2 million in unpaid fees. The school was placed into liquidation after a second meeting with creditors on July 4, 2012. STORM FINANCIAL: Investors Payout Could Top AUD1 Billion -------------------------------------------------------- Australian Associated Press reports that lawyers representing investors suing the failed Storm Financial group said a AUD1 billion payout is possible from banks associated with the company. AAP recounts that the firm went into administration in January 2009 and was placed in liquidation a short time later, owing AUD3.6 billion to an estimated 14,000 investors, many of whom were small investors. The news agency relates that clients undertaking a class action against the Macquarie and Commonwealth banks and the Bank of Queensland were told not to accept an out-of-court settlement at a meeting in Brisbane on August 14. According to AAP, lawyer Stewart Levitt said he expects a substantial payout as a result of the case, with the Australian Securities and Investments Commission suggesting compensation could be in the vicinity of AUD1 billion. "ASIC's estimate previously of the amount of compensation which would be payable if the claims were successful against the three banks in the firing line is $1 billion," Mr. Levitt told ABC radio. "I think it's more than that." ASIC is also suing Storm Financial on behalf of investors. About Storm Financial Storm Financial Limited -- http://www.stormfinancial.com.au/-- operated in the Australian wealth management industry. The company managed over one trillion dollars in investment fund assets for over nine million investors, distributed through investment administration providers and financial adviser. The funds were invested through different investment products and structures, including superannuation, non-superannuation managed funds and life insurance products. Non-superannuation managed funds, which form the majority of Storm's products, total approximately 26.5% of total investment fund assets in Australia, as of June 30, 2007. * * * As reported in the Troubled Company Reporter-Asia Pacific on Jan. 14, 2009, Storm Financial Ltd. appointed Worrells Solvency & Forensic Accountants as voluntary administrators after the Commonwealth Bank of Australia demanded debt repayment of around AU$20 million. Storm later closed its business and fired all of its 115 staff. The closure, the company's administrators said, was due to the significant reduction in Storm's income resulting in trading losses being incurred "at a rate which the company could no longer absorb." The TCR-AP reported on Jan. 22, 2009, that the CBA, Storm's largest creditor, lodged a AUD27.09 million debt claim at a first meeting of the company's creditors on Jan. 20, 2010. The group's remaining creditors are owed AUD51 million, plus a provision for dividends of AUD10 million. In March 2009, the Australian Securities and Investments Commission won its bid to liquidate Storm Financial after the Federal Court ruled that the Company be wound up. Federal court Justice John Logan appointed Ivor Worrell and Raj Khatri of Worrells Solvency and Forensic Accountants as liquidators for the Company. * Moody's Says Australian ABS Delinquencies Up in Second Quarter ---------------------------------------------------------------- Moody's Investors Service says that the delinquencies and losses for Australian ABS transactions rose slightly in Q2 2012, and losses will remain stable for the rest of 2012. "Delinquencies increased by several basis points in Q2 from Q1 across most programs, but have remained stable through the first half of 2012. The minor uptick will not have a major impact on either defaults or losses as recovery rates across asset types remained stable at 45% to 55%," says Alena Chen, a Moody's Analyst. "Specifically, from April to June, cumulative defaults for the 2007 to 2010 vintages were in the 0.9%-2.1% range, while net losses were in the 0.5%-1.1% range," says Ms. Chen, who was speaking on the release of Moody's "Australian ABS Performance Review: Q2 2012." "Looking ahead, we expect a stable performance for both defaults and net losses for all vintages. The overall stability of the ABS market is mainly due to the resilient macro-economic conditions evident in Australia," adds Ms. Chen. "The stable outlook, first assigned in Q1 2010, is also supported by the accumulation of credit enhancement and the strong credit quality of receivables originated within Australian ABS," says Chen. The majority of the outstanding transactions are backed by motor vehicle and commercial equipment leases -- a well-performing and stable asset class. ================ H O N G K O N G ================ ALLSTEEL ASIA: Members' Final Meeting Set for Sept. 11 ------------------------------------------------------ Members of Allsteel Asia Limited will hold their final general meeting on Sept. 11, 2012, at 10:00 a.m., at Room 1708 Dominion Centre, 43-59 Queen's Road East, Wanchai, in Hong Kong. At the meeting, Lau Hoi Ping Carol, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ANASWEALTH LIMITED: Members' Final Meeting Set for Sept. 11 ----------------------------------------------------------- Members of Anaswealth Limited will hold their final general meeting on Sept. 11, 2012, at 3:00 p.m., at 10/F, Allied Kajima Building, 138 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Lam Ying Sui, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ASIA WELDING: Members' Final Meeting Set for Sept. 11 ----------------------------------------------------- Members of Asia Welding Limited will hold their final general meeting on Sept. 11, 2012, at 2:00 p.m., at 10/F, Allied Kajima Building, 138 Gloucester Road, Wanchai, in Hong Kong. At the meeting, Lam Ying Sui, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. BEST VALUE: Members' Final Meeting Set for Sept. 11 --------------------------------------------------- Members of Best Value Promotionland Limited will hold their final meeting on Sept. 11, 2012, at 3:00 p.m., at Suite No. A, 11th Floor, Ritz Plaza, 122 Austin Road, Tsimshatsui, Kowloon, in Hong Kong. At the meeting, Sung Mi Yin Mella, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. CREDIT AGRICOLE: Members' Final Meeting Set for Sept. 10 -------------------------------------------------------- Members of Credit Agricole Cheuvreux Securities (Hong Kong) Limited will hold their final meeting on Sept. 10, 2012, at 9:00 a.m., at 8/F, Prince's Building, 10 Chater Road, Central, in Hong Kong. At the meeting, Patrick Cowley, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HAWK TRADING: Members' Final Meeting Set for Sept. 11 ----------------------------------------------------- Members of Hawk Trading Limited will hold their final general meeting on Sept. 11, 2012, at 11:30 a.m., at 6th Floor, St. John's Building, at 33 Garden Road, Central, in Hong Kong. At the meeting, Kishore K. Sakhrani, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PHYSICAL PROPERTY: Incurs HK$175,000 Net Loss in Second Quarter --------------------------------------------------------------- Physical Property Holdings Inc. filed with the U.S. Securities and Exchange Commission its quarterly report on Form 10-Q disclosing a net loss and total comprehensive loss of HK$175,000 on HK$145,000 of total operating revenues for the three months ended June 30, 2012, compared with a net loss and total comprehensive loss of HK$119,000 on HK$208,000 of total operating revenues for the same period a year ago. For the six months ended June 30, 2012, the Company reported a net loss and total comprehensive loss of HK$272,000 on HK$376,000 of total operating revenues, as compared to a net loss and total comprehensive loss of HK$271,000 on HK$401,000 of total operating revenues for the same period during the prior year. The Company's balance sheet at June 30, 2012, showed HK$10.20 million in total assets, HK$11.49 million in total liabilities, all current, and a HK$1.28 million total stockholders' deficit. A copy of the Form 10-Q is available for free at: http://is.gd/DMox6d About Physical Property Physical Property Holdings Inc. (formerly known as Physical Spa & Fitness Inc.), through its wholly-owned subsidiary Good Partner Limited, owns five residential apartments located in Hong Kong. The Company was incorporated on Sept. 21, 1988, under the laws of the United States of America. In the auditors' report accompanying the consolidated financial statements for the year ended Dec. 31, 2011, Mazars CPA Limited, in Hongkong, noted that the Company had a negative working capital as of Dec. 31, 2011, and incurred loss for the year then ended, which raised substantial doubt about its ability to continue as a going concern. RICH SUCCESS: Creditors' Proofs of Debt Due Sept. 11 ---------------------------------------------------- Creditors of Rich Success Consultants Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Sept. 11, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 2, 2012. The company's liquidators are: Chan Chi Bor Li Fat Chung Unit 402, 4/F Malaysia Building No. 50, Gloucester Road Wanchai, Hong Kong RULERETT COMPANY: Creditors' Proofs of Debt Due Sept. 10 -------------------------------------------------------- Creditors of Rulerett Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Sept. 10, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 7, 2012. The company's liquidator is: Lau Wing Chu Room 1708, Dominion Centre 43-59 Queen's Road East, Wanchai Hong Kong SECURED FINANCIAL: Creditors' Proofs of Debt Due Sept. 10 --------------------------------------------------------- Creditors of Secured Financial Services Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Sept. 10, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Aug. 1, 2012. The company's liquidator is: Wang Poey Foon Angela 14th Floor, South China Building 1-3 Wyndham Street, Central Hong Kong SEIHUA INT'L: Final Meetings Set for Sept. 14 --------------------------------------------- Members and creditors of Seihua International Holdings Limited will hold their meetings on Sept. 14, 2012, at 2:30 p.m., and 3:00 p.m., respectively at Suite 1704, 17th Floor, 625 King's Road, North Point, in Hong Kong. At the meeting, Jackson Ip, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SUNLINK GROUP: Creditors' Meeting Set for Aug. 22 ------------------------------------------------- Creditors of Sunlink Group Investments (HK) Limited will hold a meeting on Aug. 22, 2012, at 11:30 a.m., at 62/F, One Island East, at 18 Westlands Road, Island East, in Hong Kong. TANZANITE HK: Members' Final Meeting Set for Sept. 11 ----------------------------------------------------- Members of Tanzanite Hong Kong Investment Limited will hold their final general meeting on Sept. 11, 2012, at 10:00 a.m., at Level 28, Three Pacific Place, 1 Queen's Road East, in Hong Kong. At the meeting, Ying Hing Chiu and Chan Mi Har, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. WANG WAN: Creditors' Proofs of Debt Due Sept. 12 ------------------------------------------------ Creditors of Wang Wan World-Wide Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Sept. 12, 2012, to be included in the company's dividend distribution. The company's liquidators are: Ng Kwok Tung Chan Wai Kee Rooms 201-205, 2nd Floor Alliance Building 130-136 Connaught Road Central, Hong Kong WU QIAOMEI: Members' Final Meeting Set for Sept. 20 --------------------------------------------------- Members of Wu Qiaomei International Charitable Foundation Limited will hold their final general meeting on Sept. 20, 2012, at 11:00 a.m., at Room 2107-8, 21/F, Kai Tak Commercial Bldg., 317- 319 Des Voeux Road, Central, in Hong Kong. At the meeting, Lu Guoxiang, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. YINLI TRADING: Members' Final Meeting Set for Sept. 17 ------------------------------------------------------ Members of Yinli Trading Limited will hold their final general meeting on Sept. 17, 2012, at 7:00 p.m., at 2/F, Kiu Yuen Mansion, 247 Prince Edward Road West, Kowloon, in Hong Kong. At the meeting, Kwan Wing Hong, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= ARYA COTTON: ICRA Rates INR8cr Cash Credit at '[ICRA]B+' -------------------------------------------------------- A rating of0'[ICRA]B+' has been assigned to INR8.00 crore fund- based cash credit facility of Arya Cotton Industries. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Cash Credit Limit 8.00 [ICRA]B+ assigned The assigned rating is constrained by the weak financial profile of the firm as reflected by thin profit margins, moderate gearing and weak coverage indicators. The rating is further constrained by vulnerability of profitability to raw material prices, which are subject to seasonality, crop harvest and regulatory risks. ICRA also notes that Arya Cotton Industries is a partnership firm and any significant withdrawals from the capital account would affect its net worth and thereby the gearing levels. The rating, however, favorably considers the long experience of the partners in cotton industry, strategic location of the plant giving it easy access to high quality raw cotton and favorable demand outlook for cotton and cotton seeds. Established in 2005, Arya Cotton Industries is engaged in ginning and pressing operations. The business is owned and managed by Mr. Kishor Vadia, Mr. Lakhamshi Patel and other family members. The firm's manufacturing facility is located in Naya Anjar, Dist Kutch. The firm has 38 ginning machines and 1 pressing machine having a cumulative processing capacity of 192 TPD of raw cotton. Recent Results For the year ended March 31, 2011, the firm reported an operating income of INR93.34 crore with profit after tax (PAT) of INR0.10 crore. Further, till March 2012 (as per unaudited provisional financials), the firm reported an operating income of INR109.83 crore with a PAT of INR 0.11 crore. DIVINE PROJECT: CARE Assigns Junk Ratings on INR4.54cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE D' rating to the bank facilities of Divine Project. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 4.54 CARE D Assigned The rating assigned by CARE is based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Divine Project is primarily constrained on account of ongoing delays in servicing of interest and installment of its term loan due to delay in the project implementation. The rating is further constrained on account of the absence of track record of the partners in the manufacturing industry, constitution of the entity as a partnership, vulnerability of margins to fluctuation in raw material prices and yet to establish customer base in a highly fragmented and competitive industry. The timely completion of the project with achievement of envisaged turnover and profit margins and timely debt servicing would be the key rating sensitivity. DEP, formed in April 2009 as a partnership firm, is promoted by Mr Laxman Odedara along with his wife Ms Santok Godhania to set up a green-field project for manufacturing of woven sacks and plastic bags with an installed capacity of 2,520 Metric Tonnes Per Annum (MTPA) at Porbandar, Gujarat. The total cost of the project was envisaged at INR8 crore (including margin money for working capital of INR1 crore) with a project DER of 2.56 times and envisaged to be completed by April 2010. However, the same got delayed by more than two years, mainly on account of unavailability of power and till April 25, 2012, DEP had incurred total expenditure of INR5.16 crore towards the project and has now envisaged completing the project by the end of August 2012. DRS WAREHOUSING: ICRA Assigns '[ICRA]B+' Rating to INR48cr Loans ---------------------------------------------------------------- ICRA has assigned '[ICRA]B+' rating to INR48.0 crore, long-term, fund based limits of DRS Warehousing North Private Limited. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 42.5 [ICRA]B+ assigned Unallocated 5.5 [ICRA]B+ assigned The assigned rating takes into account the long standing experience of the promoters in the logistics industry and healthy cash flows by virtue of medium to long term lease contracts with tenants, which include reputed players such as Bharti Walmart, PepsiCo India, and Hero Motocorp etc. The rating also favorably takes into account the financial support from Golden Gates Holdings Limited, which is the majority shareholder in the company. The rating, however, remains constrained by the small scale of operations of the company and limited cushion available from monthly rental income over its high repayment obligations. The company achieved the break-even in FY12 on account of improved occupancy in the last fiscal and lower depreciation following reassessment of warehouse life. However, with high repayment obligations in the near future, the company's debt servicing capacity will depend upon its ability to maintain its high current occupancy levels in wake of increasing competition in the warehousing sector. DRSWN, incorporated in September 2006, is a warehousing development and owning company which currently has warehouses across 4 locations in Haryana, namely, Khijuri, Jamalpur, Palwal & Ambala. The operations of the company are overlooked by Mr. Ramesh Agarwal, who is the current Chairman of the company. In February 2008, Golden Gates Holding Limited, a Bank of America Merrill Lynch private equity fund, acquired 49% ownership interest in DRSWN for INR47.4 Cr. Further, the stake was enhanced to 55% in the following year, while the current interest stands at 58.2% following subscription to a rights issue in August 2010. Currently, GGHL is being managed by the Blackstone Group. The remaining stake is owned by two group companies of the DRS Group, namely, DRS Logistics Private Limited (owning 26%) and APM Infrastructure Private Limited (owning 16%). ELEGANT OVERSEAS: CARE Assigns 'B+' Rating to INR0.48cr Loans ------------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Elegant Overseas. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Short term Bank Facilities 17.00 CARE A4 Assigned Long-term bank facilities 0.48 CARE B+ Assigned Long/Short term Bank 0.25 CARE B+/A4 Facilities Assigned The ratings assigned by CARE are based on the capital deployed by the partners and the financial strength of the firm at present. The rating may undergo change in case of withdrawal of the capital or the unsecured loans brought in by the partners in addition to the financial performance and other relevant factors. Rating Rationale The rating assigned to the bank facilities of Elegant Overseas is constrained by partnership nature of constitution, low profitability margins, geographical concentration risk, business operations which are exposed to cyclicality inherent in the textile industry, high leverage ratios, high average collection period leading to high utilization of working capital limit and high competition both in the domestic as well as in the export apparel market. The above constraints are partially offset by experienced promoters in textile industry and good clientele base. Ability of the firm to improve profitability level & margins and managing working capital effectively shall remain the key rating sensitivities. Elegant Overseas, set up in the year 1995 is a Gurgaon based ISO 9001:2008 certified partnership firm. It is engaged in manufacturing and export of knitted fabric and garments. It is promoted by four partners, Shri M.C. Gupta (aged 66 years, B. Tech), Shri Ashok Singhal (aged 55 years, B. Tech.), Shri Vinod Kr. Jindal (aged 53 years, M. Com.) and Smt. Pushpa Jindal (wife of Shri Vinod Kr. Jindal, aged 51 years, M.Com.). Shri M.C. Gupta looks after the day to day business of the firm with the assistance of other partners. The firm manufactures readymade cotton garments (T-shirts, kids wear and ladies wear) for the international brands such as Haggar, GAP, Atlast, Merina Apparels and exports in USA and UK. The firm also exports fabrics to Bangladesh. The manufacturing facility of the firm is located at Behrampur Road, Gurgaon with installed capacity of 16,00,000 pcs. p.a. It is equipped with all the modern amenities for manufacturing of readymade garments and fabrics such as knitting, dyeing, washing, cutting, stitching, sewing, washing, ironing and packing of readymade garments. EO generates majority of its total income through exports (98% in FY11) primarily to countries like UK, USA, Bangladesh and Indonesia. The firm has been recognized as "Star Export House" by the Ministry of Commerce, GOI. The export rejections are sold in the domestic markets which also fetch a price as per industry standard. EXPRESS PUBLICATIONS: Delays in Loan Payment Cues Junk Ratings -------------------------------------------------------------- ICRA has downgraded the long term rating of '[ICRA]BB+' assigned to the INR9.6 crore term loans and INR26.5 crore fund based facility of Express Publications Madurai Limited to '[ICRA]D'. ICRA has also downgraded the short term rating of '[ICRA]A4+' assigned to the INR 20.0 crore non fund based facilities of EPML to [ICRA]D. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loan facilities 9.6 [ICRA]D Downgraded from [ICRA]BB+(stable) Long term: Fund Based 26.5 [ICRA]D Downgraded from Facilities [ICRA]BB+(stable) Short Term Non Fund 20.0 [ICRA]D Downgraded from Based Facilities [ICRA]A4+ The ratings downgrade takes into account the delays witnessed in debt servicing by the Company, caused by EPML's weak liquidity. The Company's financial profile is characterized by thin profit margins, stretched capitalization and coverage indicators. The profit margins over last two years were affected by sharp increase in newsprint prices and unfavorable exchange rate movements. Express Publications (Madurai) Limited traces its origin to the Indian Express Group founded by the late Ramnath Goenka in 1936. Following the demise of Mr. Ramnath Goenka in 1991 the Indian Express group was split into Indian Express (Mumbai) Limited (owns the North Indian publications) and Express Publications (Madurai) Limited (owns the South Indian Publications). EPML is managed by R. Manoj Kumar Sonthalia, the grandson of late Mr. Ramnath Goenka. EPML publishes newspapers and periodicals in the states of Tamil Nadu, Andhra Pradesh, Karnataka, Kerala, Orissa and Union territories of Pondicherry, Andaman and Nicobar Islands, Enam and Lakshadweep. The Company entered the North Indian markets in 2010-11 by introducing Dinamani (Tamil Daily) and Sunday Standard (English Weekly) in Delhi market. FRISCHMANN PRABHU: CARE Rates INR3.5cr LT Loan at 'CARE B+' ----------------------------------------------------------- CARE assigns 'CARE B+' and 'CARE A4' ratings to the bank facilities of Frischmann Prabhu (India) Pvt. Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 3.50 CARE B+ Assigned Short-term Bank Facilities 7.50 CARE A4 Assigned Rating Rationale The ratings are constrained by Frischmann Prabhu (India) Pvt. Ltd.'s, stretched working capital cycle due to delays in the realisation of dues from customers and consequent liquidity strain reflected in the consistently high working capital utilization levels and delays in depositing statutory dues with the respective authorities. Furthermore, a strong competition from established local and multinational firms is expected to pose challenges related to employee retention as well as pricing pressure. The ratings are, however, supported by established presence of the company in consultancy services in infrastructure domain, technical support from the parent company - Pell Frischmann having well-known and established global brand and financial flexibility as reflected by moderate debt levels. The ability of the company to minimize its liquidity strain and improve its working capital management are the key rating sensitivities. Frischmann Prabhu (India) Pvt. Ltd., incorporated in 1995, is a multidisciplinary consultancy firm. It is part of Pell Frischmann, a well-known international consulting engineering firm based in UK since 1926. The company operates in two segments project management consultancy and detailed engineering designs. Project management services mainly include contract documentation, tender evaluation, value engineering, quantity surveying, construction supervision, quality assurance and controls, commissioning and O&M. Detailed engineering designs include master planning, transport planning, urban planning, architectural design, landscape design, feasibility studies, physical surveys, economic analysis, environmental impact analysis, cost estimation, demand forecasting, BOT appraisal and technical audit. GEETANJALI AGRO: ICRA Assigns '[ICRA]B' Rating to INR13cr Loan -------------------------------------------------------------- ICRA has assigned '[ICRA]B' rating to the INR4.0 crore term loans, INR6.0 crore existing long-term fund based facilities and INR3.0 crore proposed long-term fund based facilities of Geetanjali Agro Industries. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Term Loans 4.0 [ICRA]B assigned Long Term Fund 6.0 [ICRA]B assigned Based Limits Long Term Fund 3.0 [ICRA]B assigned Based Limits (proposed) The assigned rating takes into account the promoters' established experience in the rice milling and processing industry, proximity of the Firm's proposed milling unit to paddy growing areas in Raichur (Karnataka) which is likely to facilitate easy procurement of raw materials and stable demand outlook with rice being an important part of the staple Indian diet. The rating is, however, constrained by the relatively nascent stage of operations, high project gearing with significant debt funding, low value added and highly fragmented structure of industry and vulnerability of raw material (paddy) availability on the agro- climatic conditions. In addition, government regulations in terms of Minimum Support Price for purchasing raw materials and Milling Levy Rate for selling a part of the produce also restrict the bargaining power of the industry players. Moreover, with the Firm's operations expected to commence from November 2012, the cash flows are likely to remain stretched during the initial years until the operations stabilize. Incorporated in 2011, Geetanjali Agro Industries is constructing a rice milling unit in Raichur district of Karnataka. The firm has been promoted by Mr. B. Srinivas, Mr. B. Vasanth, Mrs. B. Prasanna and Mrs. Suchitra, who have been present in the same business for more than 15 years. Besides Geetanjali Agro Industries, the promoters own another entity named Geetanjali Industries located at Raichur which has a capacity to process three tonnes of paddy into raw rice per hour. Owing to the increasing demand for boiled rice, the promoters are presently setting up a new plant under Geetanjali Agro Industries which would be capable of processing rice/paddy into boiled rice, raw rice, bran, broken rice and husk. The Firm's proposed plant is spread over an area of five acres in Raichur district of Karnataka with a capacity to process 8 tonnes of paddy per hour. The plant is -75% complete with erection of machinery, commissioning and trial runs pending. The plant is expected to operational by November 2012. The total project cost of INR 6.63 crore has been funded through a debt of INR 4.00 crore with the balance brought in by the promoters in form of debt and unsecured loans. ICICI BANK: Moody's Assigns 'Ba1' Jr. Subordinated Debt Rating -------------------------------------------------------------- Moody's Investors Service has assigned a Baa2 rating to ICICI Bank Limited's proposed issuance of senior unsecured notes under its US$ 5 billion Global Medium Term Note (GMTN) program. The bonds will have a 5.5-year maturity and will be listed on the Singapore Stock Exchange ("SGX-ST"). Ratings Rationale Moody's Investors Service has a standalone bank financial strength rating (BFSR) of D+ for ICICI Bank Limited, mapping to a baseline credit assessment (BCA) of baa3 on the long-term scale. The ratings capture the bank's solid franchise as the second largest commercial bank in India as well as its strong capitalization, liquidity, and earnings profile. The ratings also reflect the bank's high borrower concentration in the form of its mandatory government securities portfolio, its weaker asset quality when compared to its Indian private sector peer banks and the difficult operating environment currently prevailing in India, including the intense competition it faces in its domestic markets. Moody's believes that the probability of systemic support for ICICI Bank is very high, given its sizeable retail deposit franchise and its importance to the national payments system as India's second largest commercial bank. Therefore, the long-term local currency deposit and foreign currency senior unsecured debt ratings receive a one-notch rating uplift from its BCA. The foreign currency senior unsecured debt rating at Baa2 is at the same level as the foreign currency debt ceiling for India. The bank's foreign currency deposit ratings of Baa3/P-3 are constrained by the sovereign ceiling. The other ratings of ICICI Bank are: Baa2 foreign currency long-term senior unsecured debt rating (P)Baa2 foreign currency long-term senior unsecured debt program rating Baa2 long-term local currency bank deposit rating Prime-2 short-term local currency bank deposit rating Baa3 long-term foreign-currency deposit rating Prime-3 short-term foreign currency bank deposit rating Baa3 foreign currency subordinated debt rating (P)Baa3 foreign currency subordinated debt program rating Ba1 foreign currency junior subordinated debt rating (P)Ba1 foreign currency junior subordinated debt program rating Ba3 (hyb) foreign currency hybrid tier 1 debt rating All ratings carry stable outlooks. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology published in June 2012. ICICI Bank, headquartered in Mumbai (India), had assets of INR4,722 billion at March 2012. INDUS FILA: Fitch Affirms 'D' National Long-Term Rating ------------------------------------------------------- Fitch Ratings has affirmed India-based textile manufacturer Indus Fila Limited's National Long-Term rating at 'Fitch D(ind)'. The ratings reflect IFL's continuing delays in debt servicing due to its tight liquidity position as illustrated by its overdrawing of cash credit limits in the 12 months ended June 2012. WHAT COULD TRIGGER A RATING ACTION? Positive: Future developments that may, individually or collectively, lead to positive rating action include: -- timely debt servicing for two consecutive quarters -- utilisation of working capital facilities within sanctioned limits for two consecutive quarters IFL is a listed company and is engaged in yarn dyeing, fabric weaving, fabric processing and apparels manufacture. It has its registered office in Bangalore. In FY11, IFL reported a turnover of INR4,432m (FY10: INR3,678m), EBITDA margin of 8.1% (negative 0.7%) and net income of INR21m (negative INR499m). IFL reported a turnover of INR4638.6m and profit after tax of INR62.9m in FY12. Fitch has also affirmed IFL's bank loan ratings as follows: -- INR1332.2m fund-based working capital limits: affirmed at National Long-Term 'Fitch D(ind)' -- INR681.2 m term loans: affirmed at National Long-Term 'Fitch D(ind)' -- INR110m non-fund-based limits: affirmed at National Long- Term 'Fitch D(ind)' KOHINOOR PULP: CARE Assigns 'BB+' Rating to INR339.5cr LT Loan -------------------------------------------------------------- CARE assigns 'CARE BB+' rating to the bank facilities of Kohinoor Pulp & Paper Pvt. Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 339.50 CARE BB+ Assigned Rating Rationale The rating is constrained by the group's short track record in paper business and risk associated with largely debt-funded Greenfield project. The rating also factors in long business experience of the promoters, achievement of financial closure, inclusion of captive power plant, receipt of majority of the clearances and availability of various subsidies & fiscal incentives. Ability of the company to successfully complete the project in time without any cost overrun and derive benefits thereform would be the key rating sensitivities. KPPPL, incorporated in June, 2008, has been promoted by Shri Vijay Bothra, Shri Vivek Dugar (son in law of Shri Vijay Bothra) and Shri Prashant Bothra (son of Shri Vijay Bothra) of the Kohinoor group, having operations in India and Nepal alongwith Shri Ajay Bhoopal, resident of Assam. Shri Vivek Dugar belongs to the T. M. Dugar group which is one of the leading business houses of Nepal having trading activities in automobile, confectionary, fertilizer, stationery and hardware. The Kohinoor group has diverse business interests in iron & steel, power, paper, agro, food processing and oil processing industries. The major companies of the group are Kohinoor Steel Pvt. Ltd., Kohinoor Paper & Newsprint Pvt. Ltd. (KPNPL; rated CARE BBB-, A3) and Kohinoor Power Pvt. Ltd. (KPPL; rated CARE BB+). KPPPL is setting up a 250 TPD (86,250 MTPA) pulp manufacturing unit along with a 10 MW captive cogeneration power plant at Goalpara, Assam at an aggregate cost of INR491.9 crore which is being funded at a debt-equity ratio of 2.23:1. Financial closure has been achieved for the debt portion and the promoters have infused equity amounting to INR49 crore. The project is likely to commence commercial production from April, 2013. ROTOAUTO ENG'G: ICRA Assigns 'B+' Rating to INR7.50 Loans --------------------------------------------------------- ICRA has assigned long-term rating of '[ICRA]B+' to the INR7.50 crore1 fund based facilities of Rotoauto Engineering Solutions Private Limited. ICRA has also assigned short-term rating of '[ICRA]A4' to the INR7.00 crore non-fund based facilities and the INR2.00 crore non-fund based sub-limit facilities of the Company. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund based facilities 7.50 [ICRA]B+ assigned Non-fund based facilities 7.00 [ICRA]A4 assigned Non-fund based facilities (2.00) [ICRA]A4 assigned (sub-limit) The assigned ratings reflect the small scale of operations, volatility witnessed in revenues owing to the project nature of the business and concentrated product portfolio, presence of large established players in the industry which is expected to offer stiff competition and the lengthy execution timelines which results in lumpy cashflows for the Company. The ratings also consider the long standing presence of the group in the manufacturing of rotary equipments, customer base which consists of established players in the steel manufacturing and iron ore mining industry, increased scope for setting up of iron ore pellet plants which is expected to improve demand for pelletizing discs and the high value additions in the business which has resulted in healthy margins. Rotoauto Engineering Solutions Private Limited was incorporated in the year 2008 when it was hived off from Autoparts and Accessories (a sole proprietorship firm owned by Mr. Giri Raghavan, Managing Director of RESPL). The Company is primarily involved in the design and manufacturing of large rotary equipments like pelletizing discs and industrial process fans. The Company operates out of a heavy fabrication and machining capacity which spans out of -200,000 sq. ft. Some of the customers of RESPL to which the Company has supplied pelletizing discs include Essar Group, Jindal Steel, JSW Steel, BMM Ispat, KIOCL Limited, Stemcor, Adhunik Group among others. Recent Results (un-audited & provisional) In 2011-12, RESPL reported a net profit of INR0.6 crore (un- audited) on an operating income of INR10.0 crore (un-audited) as against a net profit of INR1.8 crore on an operating income of INR21.6 crore in 2010-11. SARVODAYA SUITINGS: CARE Rates INR42.34cr Loan at 'CARE C' ---------------------------------------------------------- CARE assigns 'CARE C' and 'CARE A4' ratings to the bank facilities of Sarvodaya Suitings Limited. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 42.34 CARE C Assigned Short-term Bank Facilities 8.00 CARE A4 Assigned Rating Rationale The ratings of Sarvodaya Suitings Limited are primarily constrained by past instances of delay in debt servicing, significant losses from derivative contracts and high off balance sheet liabilities. The ratings are further constrained by thin profitability margin, high leverage, stressed liquidity and modest scale of operations in a highly fragmented and competitive textile industry. The ratings, however, take into account the experience of promoters in the textile sector, established operations of SSL in the textile weaving and trading business and favorable location of operations. Crystallization of the contingent liabilities in the future, improvement in profitability and liquidity along with effective working capital management would remain the key rating sensitivities. Incorporated in May 1994 and promoted by Mr Mahaveer Prasad Jain, SSL is a Bhilwara (Rajasthan)-based company engaged in the manufacturing of blended fabric. SSL had 105 sulzer and airjet looms as on March 31, 2012. SSL has good presence in export market with approximately 40%-45% of its total sales catering to the export market. As per the audited results for FY11 (refers to the period April 1 to March 31), SSL reported a total operating income of INR158.58 crore (FY10: INR154.80 crore) and a PAT of INR0.57 crore (FY10: net loss of INR2.72 crore). Furthermore, as per the provisional results for FY12, SSL reported a total operating income of INR160.29 crore and PAT of INR0.77 crore. SRI VENKATESWARA: ICRA Reaffirms '[ICRA]B' Rating on INR9cr Loan ---------------------------------------------------------------- ICRA has reaffirmed the long term rating outstanding on the INR9.00 crore fund based bank facilities of Sri Venkateswara Rice Mill at '[ICRA]B'. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Long Term Fund 9.00 [ICRA]B reaffirmed based Limits The rating reaffirmation takes into account the intensely competitive and fragmented nature of the rice milling industry which limits the ability of the firm to earn premiums. The ratings are also constrained by modest financial profile characterized by low operating margins & weak coverage indicators. Further, the firm also remains susceptible to policy risks affecting the quantum of the more lucrative open market sales, and agro climatic risks, which might affect the availability of paddy. The ratings however favorably factor in long-standing experience of promoters in the industry, easy availability of raw material- the mill being present in rice-belt of Andhra Pradesh and the presence of the firm in retail market through its own brands 'SVR Double Horse'. The operating income of the firm posted a growth of 20% in FY12 primarily on account of increasing realization which increased by 27% in FY12. However the sales volumes declined by 4% in FY12 as firm sold 12257 MT rice in FY12 as compared to 12727 MT sold in FY11. The operating profitability of the firm increased in FY12 from 4.90% to 7.60%. The gearing of the firm increased slightly on account of high utilization of working capital limits which were used to support growing working capital needs of the firm. Working capital intensity of the firm is high at 30% in FY12 primarily on account of high inventory days as the firm keeps an inventory of raw material throughout the year. Rice mills are required to hold high inventory of paddy due to seasonality of the crop and significant seasonal variations in both price and quality of paddy. Sri Venkateswara Rice Mill is a partnership firm established in the year 1999 and is engaged in the milling of paddy. It produces raw and boiled rice. It was promoted by Mr. S. Venkata Rama Krishna Reddy and partners. The firm has its milling unit in Mahendrawada (East Godavari district) of Andhra Pradesh with a milling capacity of 99,000 MTPA. According to provisional financial statements provided by the management, the firm recorded an operating income of INR29.66 crores for FY12. SUBEDAR RAJ: Fitch Assigns 'D' National Long-Term Rating -------------------------------------------------------- Fitch Ratings has assigned India's Subedar Raj Devi Educational Trust a National Long-Term rating of 'Fitch D(ind)'. The agency has also assigned SRDET's INR88.71m fund-based limits a 'Fitch D(ind)' rating. The ratings reflect the continuous delays by SRDET in the repayment of its term loan since April 2011. The delays are a result of a liquidity crisis which is mainly attributed to the irregular disbursements of fees (average debtors collection period: 117 days in FY11) by the state government. The state government through its Samaj Kalyan Vibhag Scheme reimburses to educational institutions over 40% towards tuition fee of students belonging to socially and/or economically weaker sections of the society. SRDET's weak liquidity position is indicated by a decline in its cash investments to INR1.85m in FY11 from INR7.35m in FY10. Long- term debt cover (available funds/total long term debt) declined significantly to 5.51% in FY11 (FY10: 14.03%). Fee receivables from the state government were 33.36% of fee received in FY11 (FY10: 41.88%). Fee income is the main source of revenue for the trust (contributing an average of 91% in FY10- FY11). Fee income increased to INR52.42m in FY11 from INR20.31m in FY10. Total expenditure (comprising staff costs, interest payments and other administrative costs) increased to INR47.11m in FY11 from INR23.56m in FY10. The trust has moderate expenditure on staff salaries and welfare schemes. Staff costs on average contributed 23.02% to total expenditure in FY10-FY11. Operating surplus increased to INR29.30m in FY11 from INR9.63m in FY10. This along with the moderate operating expenditure allows the trust to maintain a high operating margin (average of 51.34% in FY10-FY11). The ratings might be upgraded if the loan obligations are serviced in a timely manner for two consecutive quarters. SRDET was formed in 2008 and is registered under the Societies Registration Act of 1860. The trust aims at providing quality education to the children from the weaker sections of the society. The trust has one college, namely S R Institute of Management and Technology, which began operations in 2009. The college is affiliated to Gautam Budh Technical University formally Uttar Pradesh Technical University, Lucknow. TATA STEEL: Fitch Affirms LTFC Issuer Default Rating at 'BB+' ------------------------------------------------------------- Fitch Ratings has revised the Outlook on India-based Tata Steel Limited and Tata Steel UK Holdings Limited to Negative from Stable. Fitch has affirmed TSL's Long-Term Foreign Currency Issuer Default Rating (FC IDR) at 'BB+' and its National Long- Term Rating at 'Fitch AA(ind)'. TSUKH's FC IDR has been affirmed at 'B+'. The Outlook revision reflects Fitch's view that profitability pressures will remain for TSL and TSUKH given the challenging short-term outlook for the global steel market. In FY12 (year end March), consolidated EBITDA margins fell to 9.3% (FY11: 13.5%) driven by the challenging operating environment. Thus, net financial leverage (net debt/ operating EBITDAR) increased to 4.27x (FY11: 3.25x), beyond Fitch's negative rating guideline of 4x. Leverage is likely to remain around the current levels during FY13 before improving in FY14 on the back of volume growth in Indian operations and an improvement in operations at TSUKH. In FY12, TSUKH's performance deteriorated with the entity recording operating losses in two quarters. The company reported a fall in EBITDA margins to around 2% in FY12 from around 6% in FY11. Fitch notes that TSUKH has taken various initiatives to improve its profitability, like improving operational efficiencies, upgrading facilities & technology and rationalising capacities, focusing on a higher value-added product mix and improving supply chain management. Fitch however expects TSUKH's profitability to remain volatile due to fluctuations in raw material prices and the prevailing weak steel markets in Europe. Fitch expects the steel demand in India to be impacted in the near term due to the slowing demand growth in various end-user industries. Also, TSL is likely to drive only partial benefit from its additional 2.9mtpa brownfield capacity during FY13, with full benefits expected to accrue from FY14. While TSL's Indian operations will continue to benefit from raw material integration, any significant and sustained drop in steel prices may have a negative impact on the performance of the consolidated entity. Fitch continues to take a consolidated view of TSL in line with its Parent and Subsidiary Rating Linkage methodology, with TSUKH's ratings benefiting from potential parental support. TSL's ratings continue to benefit from one-notch of uplift derived from Fitch's assessment of potential support from the Tata group due to the former's strategic importance to the group. The ratings continue to benefit from the strong liquidity of TSL and TSUKH with consolidated cash and bank balances of USD2,398m and access to undrawn lines of USD961m as at end-March 2012. Also, the limited repayments at TSUKH in the next three years also support liquidity. WHAT COULD TRIGGER A RATING ACTION? Negative: Future developments that may, individually or collectively, lead to negative rating action include: -- any significant pressure on profitability or large capex resulting in net financial leverage exceeding 4x on a sustained basis -- any weakening of linkages between the Tata group and TSL, and/or the group's inability to provide support Positive: The current Rating Outlook is Negative. As a result, Fitch's sensitivities do not currently anticipate developments with a material likelihood, individually or collectively, of leading to a rating upgrade. However, strong profitability supported an improvement in steel markets resulting in net financial leverage improving to below 4x levels may result in the Outlook being revised to Stable. Rating actions on debt instruments are as follows: TSL: -- INR9.75bn commercial paper/short-term debt affirmed at National Short-Term 'Fitch A1+(ind)' -- INR30bn non-convertible debenture (NCD) affirmed at National Long-Term 'Fitch AA(ind)' -- INR20bn NCD affirmed at National Long-Term 'Fitch AA(ind)' -- INR12.5bn NCD affirmed at National Long-Term 'Fitch AA(ind)' -- INR53.49bn long-term debt (reduced from INR69.9bn) affirmed at National Long-Term 'Fitch AA(ind)' -- INR15bn fund-based cash credit limits affirmed at National Long-Term 'Fitch AA(ind)' -- INR5bn non-fund-based limits affirmed at National Short-Term 'Fitch A1+(ind)' -- INR7.25bn fund-based limits (reduced from INR7.38bn) affirmed at National Long-Term 'Fitch AA(ind)' and National Short-Term 'Fitch A1+(ind)' -- INR85.87bn non-fund-based limits (enhanced from INR81.27bn) affirmed at National Long-Term 'Fitch AA(ind)' and National Short-Term 'Fitch A1+(ind)' TSUKH: -- Secured bank facilities aggregating around GBP3.6bn affirmed at Long-Term 'BB-' with a recovery rating of 'RR3'. TIMES STEEL: CARE Rates INR22cr LT Loan at 'CARE BB-' ----------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Times Steel and Power Ltd. Amount Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 22 CARE BB- Assigned Rating Rationale The rating is constrained by Times Steel and Power Limited's relatively small scale of operations, its low capacity utilization attributable to the inadequate raw material sourcing arrangements and weak financial risk profile marked by declining revenue and profitability indicators, rising debt levels and working capital intensive nature of business operations. The rating also considers TSPL's exposure to commodity price fluctuation risks and the cyclicality inherent in the steel business. However, the rating derives strength from the experience of promoters in the steel industry, its moderate capital structure and favorable location of the plant. The rating also takes cognizance of infusion of unsecured loans by the promoters to fund the losses and finance the working capital requirements. Going forward, the company's ability to ensure adequacy of raw material and achievement of increase in scale of operations while managing its working capital requirements shall remain the key rating sensitivities. TSPL was originally incorporated as Nixon Steel and Power Ltd on October 21, 2002. The name of the company was subsequently changed to TSPL in 2010. The company set-up a sponge iron manufacturing facility with a capacity of 1,00,000 TPA in Rourkela, Odisha, in 2005. For procurement of raw material, the company has arrangements with Orissa Mining Corporation (OMC) and Mahanadi Coalfields limited to the extent of 25% and 60% of its total requirements for iron ore and coal, respectively, while the balance is sourced from open market. The sponge iron manufactured by the company is sold to the steel plants in adjoining areas through brokers. During FY11 (refers to the period April to March), on a total operating income of INR78.86 crore, the company achieved a PBILDT and PAT of INR9.80 crore and INR2.45 crore, respectively. Furthermore, for FY12 (refers to the period April to March) (provisional), the company has reported an operating loss of INR0.34 crore and a net loss of INR6.62 crore on a total operating income of INR50.34 crore. VRIJESH CORPORATION: ICRA Reaffirms 'BB-' Rating on INR10cr Loan ---------------------------------------------------------------- ICRA has reaffirmed the '[ICRA]BB-' rating assigned to the INR10.00 crore fund based facilities and '[ICRA]A4' rating assigned to the INR2.75 crore non fund based facilities of Vrijesh Corporation. The outlook assigned to the long term rating is Stable. ICRA has withdrawn the [ICRA]BB-/[ICRA]A4 ratings assigned previously to the INR1.82 crore proposed limits of VC. Amount Facilities (INR Cr) Ratings ---------- --------- ------- Fund Based Limits 10.00 [ICRA]BB- (Stable) reaffirmed Non Fund Based Limits 2.75 [ICRA]A4 reaffirmed The rating reaffirmation continues to factor in the moderate financial profile and extensive experience of the promoters in the trading and manufacturing of silk yarn and fabric business. The ratings are however constrained by small scale of operations and low margin nature of the business. The ratings also take into consideration the vulnerability of the business to the cyclicality in the textile industry and also to the various Government regulations relating to import of yarns. ICRA also notes the high competitive intensity prevalent in the textile industry, susceptibility of the profit margins to forex risks and the risk of capital withdrawals, given its constitution as a partnership firm. About Vrijesh Corporation M/s Vrijesh Corporation was incorporated in 1970 by Mr. C.L Agarwal as a partnership firm engaged in the trading of Yarn and Fabrics. In 1984 the firm went for forward integration and started manufacturing of fabrics, home furnishing and ready to wear accessories. The firm has a manufacturing unit in Bangalore and also outsources some part of the manufacturing process to its group company, Vrijesh Natural Fibre & Fabrics Pvt. Ltd. and other local players in the market. VNFPL is engaged in manufacturing of fabrics, home furnishing and ready to wear accessories and has its manufacturing unit at Vapi in Gujarat. Recent Results: During 2010-11, the firm has reported a net profit of INR1.97 crore on an operating income of INR46.11 crore. As per the provisional results of 2011-12, the firm has reported a sale of INR45.02 crore and a profit before tax of INR6.83 crore. ========= J A P A N ========= ELPIDA MEMORY: Bondholders May Ask U.S. Court to Halt Micron Sale ----------------------------------------------------------------- Bill Rochelle, the bankruptcy columnist for Bloomberg News, reports that a judge overseeing the U.S. side of the bankruptcy of Elpida Memory Inc. may be called upon by U.S. bondholders to stop a sale of the Japanese memory chipmaker to Micron Technology Inc. According to the report, tellingly, the bondholders cite the case of Mexican glassmaker Vitro SAB where a U.S. Bankruptcy Court in Texas is being used to halt a bankruptcy reorganization in a Mexican court. Elpida filed a Chapter 15 petition in U.S. Bankruptcy Court in Delaware in March, a month after filing bankruptcy at home. The report relates that in April, the U.S. court recognized Japan as home to the so-called foreign main proceeding. As a result, the court in Japan ordinarily would administer the sale of the business and distributions to creditors, receiving assistance from the U.S. court if necessary. An ad hoc group of U.S. bondholders believes Elpida and its court-appointed trustees are up to no good. The report notes the holders, owning $293 million in bonds, are Linden Advisors LP, LIM Advisors, Owl Creek Asset Management LP, and Taconic Capital Advisors LP. They contend in papers filed in bankruptcy court on Aug. 10 that the proposed sale to Micron for an estimated $1.8 billion at present value is for substantially less than Elpida's liquidation value. They say that one of Elpida's trustees will "apparently be employed" by Micron after the acquisition. The report relates the bondholders charge that the Japanese trustees are precluded from discussing any alternative to a sale to Boise, Idaho-based Micron, even though the bondholders have attempted to discuss a transaction bringing in "substantially more value." According to the report, the bondholders want the Delaware bankruptcy judge to modify approval of the Chapter 15 petition so the reorganizations don't become "an illegitimate transfer of enterprise value from old equity to new equity at the expense of existing creditors." The report relates that at a hearing on Sept. 6, the bondholders want the U.S. judge to require Elpida to file a list of assets in the U.S. and then bar the company from transferring assets outside the U.S. They also want the bankruptcy judge to declare that they are at liberty to file an involuntary bankruptcy petition against Elpida in the U.S. If the bondholders believe the Micron sale is sufficiently egregious, they can, like the Vitro bondholders, ask the U.S. court not to enforce the foreign reorganization in the U.S. Bondholders are also trying to stop the sale in court in Japan. About Elpida Memory Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is a Japan-based company principally engaged in the development, design, manufacture and sale of semiconductor products, with a focus on dynamic random access memory (DRAM) silicon chips. The main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM, Mobile RAM and XDR DRAM, among others. The Company distributes its products to both domestic and overseas markets, including the United States, Europe, Singapore, Taiwan, Hong Kong and others. The company has eight subsidiaries and two associated companies. After semiconductor prices plunged, Japan's largest maker of DRAM chips filed for bankruptcy in February with liabilities of 448 billion yen ($5.6 billion) after losing money for five quarters. Elpida Memory and its subsidiary, Akita Elpida Memory, Inc., filed for corporate reorganization proceedings in Tokyo District Court on Feb. 27, 2012. The Tokyo District Court immediately rendered a temporary restraining order to restrain creditors from demanding repayment of debt or exercising their rights with respect to the company's assets absent prior court order. Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo Court as Supervisor and Examiner in the case. Elpida Memory Inc. sought the U.S. bankruptcy court's recognition of its reorganization proceedings currently pending in Tokyo District Court, Eight Civil Division. Yuko Sakamoto, as foreign representative, filed a Chapter 15 petition (Bankr. D. Del. Case No. 12-10947) for Elpida on March 19, 2012. SHICOH CO: Minebea Concludes Sponsor Agreement ---------------------------------------------- Minebea Co., Ltd., on Aug. 10, 2012, announced that it has concluded a sponsor agreement with Shicoh Co., Ltd, which filed an application with the Tokyo District Court for civil rehabilitation proceedings on August 10. "Severe business environment including depreciation cost burden associated with investment in facilities following a substantial decline in orders after September 2011, a sharp rise in the price of raw materials such as rare metals and increased labor costs in China, resulted in the company filing an application to commence civil rehabilitation proceedings," Minebea said in press release. "Minebea has entered into a sponsor agreement with SHICOH, based on the premise of offering assistance toward the rehabilitation proceedings, in accordance with the said sponsor agreement," it said. Minebea said it plans to conclude a business transfer agreement by around the end of August, 2012. Japan-based Shicoh Co. Ltd is engaged in the mass production and sale of auto-focus linear motors, which are mostly used in the micro cameras installed in mobile phone, smartphone and multifunctional tablet device. The company employed 6,427 workers as of June 1, 2011. ==================== N E W Z E A L A N D ==================== CAPITAL + MERCHANT FINANCE: May Face Receivers' Legal Claim ----------------------------------------------------------- Tim Hunter at stuff.co.nz reports that the trustee for several failed finance companies, Perpetual Trust, is being lined up for extraordinary legal action by receivers it appointed to Capital + Merchant Finance. stuff.co.nz notes that investors owed NZ$167 million were left with total losses from Capital + Merchant's collapse in 2007 and litigation appears the only remaining avenue to claw back some money. Receivers Grant Graham and Brendon Gibson of Korda Mentha have told Perpetual they are considering making a claim against the trustee, which had a legal obligation to supervise Capital + Merchant on investors' behalf, stuff.co.nz relates. The prospect creates a bizarre legal problem. "It puts us in an unworkable position of conflict, because we are the ones who appoint the receiver and theoretically we have the ability to direct them," the report quotes Perpetual's head of corporate trust Matthew Lancaster, as saying. stuff.co.nz relates that Mr. Lancaster said the perception for conflict of interest meant Perpetual would resign as trustee and was seeking court approval for Public Trust to be appointed in its place. Details of the receivers' claim are not available, although Mr. Lancaster said Perpetual had been given a "broad outline" of what it would involve, stuff.co.nz relays. About Capital + Merchant Capital + Merchant Finance Ltd, operating in property finance, was one of the bigger finance companies in New Zealand. Capital + Merchant Finance, along with subsidiary Capital + Merchant Investments Ltd., went into receivership on Nov. 23, 2007, due to breaches in respect of general security agreements issued by the companies in favor of creditor Fortress Credit Corporation (Australia) 11 Pty Ltd. Fortress appointed Tim Downes and Richard Simpson of Grant Thornton, chartered accountants, while trustee Perpetual Trust have called in KordaMentha. Capital + Merchant owes about NZ$190 million to 7,000 investors. Fortress reportedly has a prior charge over assets and was owed around NZ$70 million in total. FELTEX CARPETS: Court of Appeal Hears Defendant Challenge --------------------------------------------------------- Marta Steeman at stuff.co.nz reports that a critical Court of Appeal hearing is being held in Wellington this week in the NZ$150 million representative action of 3,000 shareholders of Feltex Carpet against the failed carpet maker's former directors and others. According to the report, the defendants in the case are appealing to the Court of Appeal against certain decisions entered by Justice Christine French in the High Court last year. They relate to her decisions to allow the representative action to proceed, and timing and funding matters, says stuff.co.nz. stuff.co.nz notes that most of the hearings in the representative action led by the plaintiff, Eric Houghton, have been in private, but the appeal this week is one of the few open to the public. The report states that Mr. Houghton is alleging that the Feltex prospectus contained untrue statements and was misleading. About 3,000 shareholders who bought shares in the initial offering of Feltex shares to the public in May and June 2004 have joined his action, the report notes. stuff.co.nz recounts that Mr. Houghton filed his action in February 2008 against the former directors at the time of the share offering, as well as against the sellers and promoters of the shares. The defendants are the seven former directors of Feltex: Tim Saunders, former Feltex chairman Sam Magill, John Feeney, Craig Horrocks, Peter Hunter, Peter Thomas, and Joan Withers. Other defendants include Credit Suisse First Boston Asian Merchant Partners, the sellers of the shares, First New Zealand Capital Securities and Forsyth Barr. About Feltex Carpets Headquartered in Auckland, New Zealand, and established more than 50 years ago, Feltex Carpets Limited -- http://www.feltex.com/-- has built a reputation for being one of the world's leading manufacturers of superior-quality carpet. The Feltex operation included a wool scouring plant, six spinning mills, three tufted carpet mills, a woven carpet mill and offices in New Zealand, Australia and the United States. ANZ Bank placed the company in receivership on Sept. 22, 2006, and named Colin Nicol, Peter Anderson and Kerryn Downey, of McGrathNicol+Partners, as receivers and managers. The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst acquired Feltex as a going concern, including its assets and undertakings in New Zealand, Australia, and the United States. Proceeds of the sale will be used to ease the company's NZ$128-million debt to ANZ Bank. On Dec. 13, 2006, the High Court in Auckland ruled in favor of an application by the Shareholders Association against Feltex Carpets putting the carpet maker into liquidation. John Vague was appointed as liquidator. NATIONAL FINANCE: Director Sentencing Delayed Until Aug. 24 ----------------------------------------------------------- Nick Krause at stuff.co.nz reports that the sentencing of former National Finance director Anthony Banbrook has been postponed. stuff.co.nz relates that Mr. Banbrook was due to be sentenced in the High Court at Auckland on August 14, after earlier admitting a charge of making untrue statements in the company's September 2005 registered prospectus. But the matter has been adjourned until August 24, because Justice Timothy Brewer said he had only received defense counsel submissions on August 14 which was less than the required two days in advance of a hearing, the report says. According to stuff.co.nz, Justice Brewer said Mr. Banbrook's counsel Harry Waalkens QC was calling for a sentence "completely different" from the sentence sought by the Crown. Against a complicated legal background and with insufficient time to review the submissions, he would not be able to do the case justice, the judge, as cited by stuff.co.nz, said. The Securities Act charge carries a maximum penalty of five years' imprisonment or a fine of up to NZ$300,000, stuff.co.nz notes. About National Finance National Finance 2000 Ltd., whose core business was car finance, was placed in receivership in May 2006, owing 2,000 investors NZ$21 million. Trevor Allan Ludlow was the sole shareholder and a director of the company. John Gray was employed by the company as an accountant. After considering a complaint received from the Receiver, PricewaterhouseCoopers, the Serious Fraud Office determined that an investigation into the affairs the National Finance 2000 Limited may disclose serious or complex fraud. An investigation under Part One of the Serious Fraud Office Act was commenced on June 30, 2006. This was elevated to a Part Two investigation on May 8, 2007. Charges were laid against Trevor Allan Ludlow and John Gray in October 2009. ********* 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., Frederick, Maryland, USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. 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$625 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 240/629-3300. *** End of Transmission ***