/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120924.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 Monday, September 24, 2012, Vol. 15, No. 190 Headlines A U S T R A L I A PAYLESS SHOES: Shoe Retailer Goes Into Administration C H I N A CHINA HONGQIAO: S&P Rates Senior Unsecured Notes 'BB-' H O N G K O N G FANTASIA HOLDINGS: Moody's Rates Senior Unsecured Notes '(P)B2' GEMDALE CORPORATION: FPC Deal No Impact on Moody's 'Ba1' CFR GOLDEN COMMENCE: Members' Meeting Set for Oct. 17 GROUP INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 31 HOTUNG ENTERPRISES: Annual Meetings Set for Oct. 8 HWA SHAT: Creditors' Proofs of Debt Due Oct. 15 INTERNATIONAL (HK): Creditors' Proofs of Debt Due Oct. 15 JARDINE MOTORS: Creditors' Proofs of Debt Due Oct. 5 JUNE AGENTS: Annual Meetings Set for Oct. 9 KENTH LIMITED: Creditors' Proofs of Debt Due Oct. 13 KING ELEGANT: Members' Meeting Set for Oct. 17 MIDTOWN HOLDINGS: Annual Meetings Set for Oct. 9 NEW CHINA: Annual Meetings Set for Oct. 9 NEW CHINA HK: Annual Meetings Set for Oct. 9 NEW CHINA HK PROPERTIES: Annual Meetings Set for Oct. 9 NEW CHINA HK TRADING: Annual Meetings Set for Oct. 9 PROSPER LANE: Members' Meeting Set for Oct. 17 RR DONNELLEY: Members' Final Meeting Set for Oct. 16 SIGMA LOGISTICS: Creditors' Proofs of Debt Due Oct. 14 SMASHBOX HK: Wong and Wong Step Down as Liquidators TONG LIN: Members' Final General Meeting Set for Oct. 19 WA LEE: Final Meetings Set for Oct. 25 I N D I A AMAR PARTAP: CARE Rates INR12.44cr Longterm Loan at 'CARE BB-' BENGAL TEA: CARE Assigns 'CARE BB+' Rating to INR110.10cr Loan DASHMESH ROAD: CARE Places 'BB' Rating on INR17.33cr LT Loan KAMAL SUITINGS: CARE Rates INR5.52cr LT Loan at 'CARE B' KG DENIM: CARE Rates INR54cr Long-Term Loan at 'CARE C' MILESTONE MERCANDISE: CARE Rates INR13cr LT Loan at 'CARE B' RAJ RAJENDRA: CARE Rates INR18.15cr LT Loan at 'CARE BB+' SHREE JAGDAMBA: CARE Puts 'CARE BB' Rating on INR7cr LT Loan SUPER AGRI: CARE Assigns 'CARE BB+' Rating to INR22.47cr LT Loan SURYA COTSPIN: CARE Rates INR6.3cr LT Loan at 'CARE BB-' J A P A N KANSAI URBAN: Moody's Cuts Financial Strength Rating to 'D-' OLYMPUS CORP: Officially Agrees on Capital Tie-Up With Sony SHARP CORP: Mulls LCD Tieup With Intel M A L A Y S I A POLYMER COMPOSITE: Placed Under Liquidation N E W Z E A L A N D AOTEAROA COOLSTORES: Still Owes NZ$14MM at End of Receivership PERPETUAL TRUST: High Court Winds Up Mortgage Fund SOUTH CANTERBURY: Southbury Has NZ$700K in Cash, PwC Reports S I N G A P O R E FIVE STARS: Creditors' Proofs of Debt Due Oct. 19 METCOMP CO: Creditors' Proofs of Debt Due Oct. 19 MORGAN STANLEY: Creditors' Proofs of Debt Due Oct. 19 REFLECT GEOPHYSICAL: Court to Hear Wind-Up Petition on Oct. 5 WEE SIONG: Creditors' Proofs of Debt Due Oct. 19 YOKOGAWA MANAGEMENT: Creditors' Proofs of Debt Due Oct. 19 - - - - - ================= A U S T R A L I A ================= PAYLESS SHOES: Shoe Retailer Goes Into Administration ----------------------------------------------------- Benjamin Millar at smh.com.au reports that Payless Shoes has gone into administration, blaming the "extremely difficult retail environment." According to the report, insolvency company Jamieson Louttit & Associates was called in earlier this month after the managing director resigned, casting doubt over the future viability of 230 stores across Australia. A move by Australian shoppers to online shopping and growth in international sales are some of the factors forcing the company into an urgent search for a buyer, the report relays. smh.com.au says negotiations have already been underway with landlords, who have been approached for rent reductions to stave of store closures. The report says Payless Shoes has also engaged Beam Business Equity to try and find an industry buyer. Deloitte spokeswoman Vessa Playfair confirmed company directors called in Deloitte on Sept. 21 to handle the administration, smh.com.au reports. Payless Shoes is the largest independent shoe retailer in Australia, operating 44 stores across Victoria. ========= C H I N A ========= CHINA HONGQIAO: S&P Rates Senior Unsecured Notes 'BB-' ------------------------------------------------------ Standard & Poor's Ratings Services assigned its 'BB-' rating to the proposed issue of senior unsecured notes by China Hongqiao Group Ltd. (BB/Stable/--; cnBBB-/--). "At the same time, we assigned our 'cnBB+' Great China regional scale rating to the proposed notes," S&P said. "The rating is subject to our review of the final issuance documentation. We expect Hongqiao, an aluminum producer, to use the proceeds from the proposed notes for expansion of its production scale, refinancing its debts, and for general corporate purposes. The issue rating is one notch below its long- term corporate credit rating to reflect the structural subordination risk the offshore bondholders face in the event of default, as we project the company's priority borrowings to exceed 25% of total assets in the next two years, more than our threshold of 15% for non-investment grade issuers," S&P said. "The company's operating performance in first-half 2012 was in line with our expectation. Its EBITDA margin was 35.8%, compared with 38.2% in first-half 2011. The company's competitive low production cost cushioned subdued aluminum prices," S&P said. "Hongqiao owns thermal power stations and electricity transmission grid. We expect its electricity generation capacity will reach 2,730 MW by the end of 2012, which is about 58% of its requirement and an increase from 55% in the first half. The company continues to purchase electricity and alumina from Gaoxin Aluminum and Electricity Corp. (unrated) at favorable terms. Hongqiao's 2-million-ton alumina refining capacity went into production in the first half, and we expect company will continue to increase alumina production in 2013. Refining its own alumina is less costly than buying from Gaoxin," S&P said. "We expect Hongqiao to generate negative free operating cash flow of more than Chinese renminbi (RMB) 3.5 billion in the next two years due to large capital expenditures for expansion. In our view, Hongqiao's debt will rise in 2012 and 2013 as it continues to seek expansion along the aluminum value chain and to further increase its power generation facilities. Nevertheless, we believe its cash balance (more than RMB6.5 billion as of June 30, 2012) and its good cash flow from operations, supported by its low-cost position, would help to fund part of the capital expenditures, therefore moderating the increase in leverage. We forecast company operating cash flow of more than RMB6 billion in 2012. We believe its ratio of funds from operations to total debts will be no less than 30% in the next 12 months," S&P said. "The rating on Hongqiao reflects the company's high supplier and customer concentration risk, its short operating track record, and key-man risk. In addition, Hongqiao faces significant negative free operating cash flow in the next few years as it expands. These weaknesses are partly offset by the company's low- cost position, proximity to its customer base, and the long-term good demand prospects for aluminum products in China," S&P said. ================ H O N G K O N G ================ FANTASIA HOLDINGS: Moody's Rates Senior Unsecured Notes '(P)B2' --------------------------------------------------------------- Moody's Investors Service has assigned a provisional (P)B2 rating to the USD senior unsecured notes proposed by Fantasia Holdings Group Company Limited. At the same time, Moody's has affirmed the B1 corporate family rating and B2 senior unsecured debt rating on Fantasia's outstanding notes. The ratings outlook is stable. The proceeds from the USD notes issuance will be used to fund land acquisitions and development needs, refinance some of the existing indebtedness and for general corporate purposes. The provisional status of the USD notes will be removed once Fantasia has issued the proposed USD notes on satisfactory terms and conditions. Ratings Rationale "The issuance of new USD notes will strengthen Fantasia's funding capacity and debt maturity profile for the purposes of managing its property development projects and its delivery of presale properties," says Jiming Zou, a Moody's Analyst. The USD notes -- which will provide term funding -- will improve Fantasia's liquidity. Its cash balance of RMB 1.4 billion as of June 30, 2012 is not enough to cover its short-term debt of RMB 1.8 billion, although the company has been prudent in its land purchases. Additionally, the notes will provide funding for Fantasia's plan (i) to secure contract sales of RMB3.8 billion in the second half, in order to meet its 2012 contract sales target of RMB 7.2 billion; and (ii) to deliver RMB5.6 billion of book revenue for the rest of 2012. "While more debt will be added, Fantasia's debt leverage -- measured by debt/total capitalization of around 55% -- will remain appropriate for its B1 rating," says Zou, also lead analyst for Fantasia. Fantasia has a track record of maintaining adequate interest coverage -- around 4x from 2009 to 2011. Moody's expects interest coverage to deteriorate to around 2.8x -- 2.9x for the next 12 months after the issuance of the USD notes. But such interest coverage is still acceptable for its B1 rating level. Fantasia's B1 corporate family rating continues to reflect its established niche business model, which balances the development of commercial and residential properties. This partly mitigates the short-term impact on its performance of regulatory measures for the residential sector in China. Its rating also factors in its stable operating and financial profile and disciplined financial management. It has an established track record in Shenzhen and Chengdu, and has started expanding to other regions. However, the rating is constrained by geographic concentration risk and the execution risk associated with the company's expansion into new locations. The scale of its operations, land bank and financial leverage, with debt/capitalization of around 50%-55%, are consistent with its single-B rated peers. The stable outlook reflects Moody's expectations of continued stability in Fantasia's financial profile, adequate liquidity, and measured expansion strategy. Upward pressure on its ratings could emerge if Fantasia can (1) build up a track record in markets outside Chengdu and Shenzhen; (2) consistently achieve its sales targets; (3) maintain strong financial discipline, while implementing its growth strategy; and 4) maintain sound liquidity. Moody's sees EBITDA/interest coverage consistently above 4-5x and adjusted debt/capitalization below 45-50% on a sustained basis as indications for a potential rating upgrade. The ratings could be downgraded if (1) Fantasia's sales fell significantly short of Moody's expectations; (2) the company pursued aggressive land acquisitions or expansion activities that pressure its liquidity; or (3) it failed to maintain a disciplined approach to financial management. Adjusted debt/capitalization consistently above 55-60% and EBITDA/Interest coverage below 2.5x-3x would indicate a potential rating downgrade. The principal methodology used in rating Fantasia Holdings Group Company Limited was the Global Homebuilding Industry Methodology published in March 2009. Fantasia Holdings Group Co., Limited, is a property developer established in 1996 and listed on the Hong Kong Stock Exchange in November 2009. As of June 2012, it had a land bank of 8.3 million square meters of GFA (gross floor area) with land use rights, mainly in Chengdu and the Pearl River Delta. It develops high-end office buildings and residential properties, targeting small- and medium-sized enterprises (SMEs) and affluent individuals. GEMDALE CORPORATION: FPC Deal No Impact on Moody's 'Ba1' CFR ------------------------------------------------------------ Moody's Investors Service says that Gemdale Corporation's Ba1 corporate family rating, Famous Commercial Ltd's Ba3 corporate family rating, and Gemdale International Holding Limited's Ba3 senior unsecured bond rating are unaffected by Famous' plan for a major acquisition. Famous, which is a wholly owned subsidiary of Gemdale Corporation, plans to buy a 56.05% stake in Frasers Property (China) Limited (FPC, unrated) for HK$1.65 billion. The ratings outlook remains stable. Moody's notes that the investment amount will increase to a maximum of about HK$2.95 billion if all minority shareholders accept Famous' general offer to take over FPC. "The successful acquisition of FPC would help diversify Gemdale's ability to access offshore equity markets for funding, and will therefore improve its financial flexibility," says Kaven Tsang, a Moody's Vice President and Senior Analyst. Gemdale is now just listed in China. With the acquisition of FPC, Gemdale will be connected to the international equity investors. The access to offshore equity funding will strengthen Famous fund-raising role within Gemdale and which would provide additional comfort to its offshore debt investors. "Gemdale has adequate available financial resources to help Famous acquire the 56.05% stake in FPC," says Mr. Tsang, who is also the Lead Analyst for Famous and Gemdale. Famous plans to complete the acquisition through a bridging loan of HK$2.5 billion from Standard Chartered Bank. This loan would subsequently be refinanced through Gemdale's internal resources or through new bank loans. As of June 30, Gemdale had cash of RMB19 billion, which can cover its short-term debt of RMB12 billion, as well as the bridging loan. "The interim increase in debt from the acquisition will not materially impact Gemdale's credit metrics," says Mr. Tsang. Gemdale's debt capitalization ratio will increase to 57% from 55% in June, as it will take on FPC's debt in addition to the acquisition debt of HK$2.5 billion. Gemdale's interest coverage will also be kept below 3.5x. Nonetheless, Moody's expects that Gemdale's increased sales and retained earnings in 2H 2012 will lower its debt leverage. On the other hand, Famous' debt leverage will increase to over 85% and its EBITDA interest coverage will fall to 1.5x-2.5x after the acquisition. Its B2 standalone credit profile already reflects its weak financial metrics, which are offset by the strong funding support from Gemdale. The principal methodology used in rating Gemdale and Famous was the Global Homebuilding Industry Methodology published in March 2009. Incorporated in China, Gemdale Corporation is one of the leading developers in China's residential property sector. It was founded in 1988 and was 100% indirectly owned by the government of Futian district in Shenzhen. Gemdale began its property development business in Shenzhen in 1993 and has progressively expanded its business to cover the six major regions across the country over the past 20 years. Currently, it has a land bank of 17.1 million sqm in gross floor area in 20 cities. Incorporated in Hong Kong in 1995, Famous is a wholly-owned subsidiary of Gemdale Corporation. It was initially established as a sales office in Hong Kong to sell Gemdale's property projects to overseas customers. It was eventually developed as an offshore holding company housing some of Gemdale's property projects in China. It also serves as a funding vehicle in the overseas market. GOLDEN COMMENCE: Members' Meeting Set for Oct. 17 ------------------------------------------------- Members of Golden Commence Limited will hold a meeting on Oct. 17, 2012, at 10:30 a.m., at 8th Floor, Prince's Building, at 10 Chater Road, Central, in Hong Kong. At the meeting, Patrick Cowley and Fergal Power, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. GROUP INTERNATIONAL: Creditors' Proofs of Debt Due Oct. 31 ---------------------------------------------------------- Creditors of Group International Trading Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 31, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 3, 2012. The company's liquidators are: Man Mo Leung Kenneth Graeme Morrison 42/F, Central Plaza 18 Harbour Road HOTUNG ENTERPRISES: Annual Meetings Set for Oct. 8 -------------------------------------------------- Members and creditors of Hotung Enterprises Limited will hold their annual meetings on Oct. 8, 2012, at 10:30 a.m., and 11:30 a.m., respectively at Room 2109, China Resources Building, at 26 Harbour Road, Wanchai, in Hong Kong. At the meeting, Chui Chi Yun Robert, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. HWA SHAT: Creditors' Proofs of Debt Due Oct. 15 ----------------------------------------------- Creditors of HWA Shat Company Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 15, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 12, 2012. The company's liquidator is: Lin Sun Ching Andrew 5/F, Milo's Industrial Building 2-10 Tai Yuen Street Kwai Chung, N.T. INTERNATIONAL (HK): Creditors' Proofs of Debt Due Oct. 15 --------------------------------------------------------- Creditors of International (Hong Kong) Antique & Unique Mineral Collectors Association Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 15, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 6, 2012. The company's liquidator is: Lau Cheuk Man Timothy Unit 9, 17/F Citicorp Centre 18 Whitfield Road Causeway Bay, Hong Kong JARDINE MOTORS: Creditors' Proofs of Debt Due Oct. 5 ---------------------------------------------------- Creditors of Jardine Motors (China) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 5, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 3, 2012. The company's liquidators are: Ying Hing Chiu Chan Mi Har Level 28, Three Pacific Place 1 Queen's Road East, Hong Kong JUNE AGENTS: Annual Meetings Set for Oct. 9 ------------------------------------------- Members and creditors of June Agents Limited will hold their annual meetings on Oct. 9, 2012, at 4:00 p.m., and 4:30 a.m., respectively at Suite 1704, 17th Floor, at 625 King's Road, North Point, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. KENTH LIMITED: Creditors' Proofs of Debt Due Oct. 13 ---------------------------------------------------- Creditors of Kenth Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 13, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 7, 2012. The company's liquidator is: Dieter Charles Pasewaldt 603 West 50th Street New York, NY 10019 USA KING ELEGANT: Members' Meeting Set for Oct. 17 ---------------------------------------------- Members of King Elegant Holdings Limited will hold a meeting on Oct. 17, 2012, at 9:30 a.m., at 8th Floor, Prince's Building, at 10 Chater Road, Central, in Hong Kong. At the meeting, Patrick Cowley and Fergal Power, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. MIDTOWN HOLDINGS: Annual Meetings Set for Oct. 9 ------------------------------------------------ Members and creditors of Midtown Holdings Limited will hold their annual meetings on Oct. 9, 2012, at 5:00 p.m., and 5:30 a.m., respectively at Suite 1704, 17th Floor, at 625 King's Road, North Point, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA: Annual Meetings Set for Oct. 9 ----------------------------------------- Members and creditors of The New China Hong Kong Advertising Limited will hold their annual meetings on Oct. 9, 2012, at 10:00 a.m., and 10:30 a.m., respectively at Suite 1704, 17th Floor, at 625 King's Road, North Point, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK: Annual Meetings Set for Oct. 9 -------------------------------------------- Members and creditors of The New China Hong Kong Asset Management Limited will hold their annual meetings on Oct. 9, 2012, at 11:00 a.m., and 11:30 a.m., respectively at Suite 1704, 17th Floor, at 625 King's Road, North Point, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK PROPERTIES: Annual Meetings Set for Oct. 9 ------------------------------------------------------- Members and creditors of The New China Hong Kong Properties Limited will hold their annual meetings on Oct. 9, 2012, at 2:00 p.m., and 2:30 p.m., respectively at Suite 1704, 17th Floor, at 625 King's Road, North Point, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. NEW CHINA HK TRADING: Annual Meetings Set for Oct. 9 ---------------------------------------------------- Members and creditors of The New China Hong Kong Trading (Beijing) Limited will hold their annual meetings on Oct. 9, 2012, at 3:00 p.m., and 3:30 p.m., respectively at Suite 1704, 17th Floor, at 625 King's Road, North Point, in Hong Kong. At the meeting, James Wardell, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. PROSPER LANE: Members' Meeting Set for Oct. 17 ---------------------------------------------- Members of Prosper Lane Limited will hold a meeting on Oct. 17, 2012, at 11:30 a.m., at 8th Floor, Prince's Building, at 10 Chater Road, Central, in Hong Kong. At the meeting, Patrick Cowley and Fergal Power, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. RR DONNELLEY: Members' Final Meeting Set for Oct. 16 ---------------------------------------------------- Members of RR Donnelley (Hong Kong) Limited will hold their final general meeting on Oct. 16, 2012, at 2:30 p.m., at 29th Floor, Caroline Centre, Lee Gardens Two, at 28 Yun Ping Road, in Hong Kong. At the meeting, Osman Mohammed Arab, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. SIGMA LOGISTICS: Creditors' Proofs of Debt Due Oct. 14 ------------------------------------------------------ Creditors of Sigma Logistics Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 14, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Sept. 14, 2012. The company's liquidator is: Li Mei Sze Chun Hoi Commercial Building 688-690 Shanghai Street Mongkok, Kowloon Hong Kong SMASHBOX HK: Wong and Wong Step Down as Liquidators --------------------------------------------------- Wong Poh Weng and Wong Tak Man Stephen stepped down as liquidators of Smashbox Hong Kong Limited on Sept. 7, 2012. TONG LIN: Members' Final General Meeting Set for Oct. 19 -------------------------------------------------------- Members of Tong Lin (H.K.) Co. Limited will hold their final general meeting on Oct. 19, 2012, at 11:00 a.m., at Room 1902, 19/F., Henan Building, at 90-92 Jaffe Road, Wanchai, in Hong Kong. At the meeting, Tsang Kwok Fai, the company's liquidator, will give a report on the company's wind-up proceedings and property disposal. WA LEE: Final Meetings Set for Oct. 25 -------------------------------------- Members and creditors of Wa Lee Finance Company Limited will hold their final meetings on Oct. 25, 2012, at 3:00 p.m., and 3:15 p.m., respectively at Room 3511, 35th Floor, One Pacific Place, at 88 Queensway, in Hong Kong. At the meeting, Lai Kar Yan (Derek) and Darach E. Haughey, the company's liquidators, will give a report on the company's wind- up proceedings and property disposal. ========= I N D I A ========= AMAR PARTAP: CARE Rates INR12.44cr Longterm Loan at 'CARE BB-' -------------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Amar Partap Steels Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 12.44 CARE BB- Assigned Rating Rationale The rating assigned to the bank facilities of Amar Partap Steels Private Limited is constrained by its financial risk profile marked by thin and fluctuating profitability margins, moderately leveraged capital structure and stressed debt coverage indicators. The rating is further constrained by APSPL's exposure to volatility in raw material prices and its presence in highly fragmented and competitive Thermo Mechanically Treated (TMT) bar segment. The rating, however, derives strength from extensive experience of the promoters in the steel business and established marketing and distribution network which aided the company to scale-up its operations. APSPL's ability to improve its profitability margins in light of volatile steel prices and efficient working capital management will remain the key rating sensitivity. Jaipur-based APSPL was incorporated as a private limited company in 2004 by Mr. Jaswant Singh and his family members. APSPL was primarily engaged in the manufacturing of mild steel (MS) ingots. Subsequently, it set up a re-rolling mill in 2010 and commenced manufacturing of TMT Bars. It had a total installed capacity of 30,000 Metric Tonnes per Annum (MTPA) for Steel Ingots and 75,000 MTPA for TMT Bars as on March 31, 2012. The manufacturing unit of APSPL is located at Jaipur in the state of Rajasthan. TMT bars manufactured by APSPL are sold under the brand name of 'AMCO TMT'. The company's unit is ISO 9001:2008 certified. As per the provisional result of FY12 (refers to the period April 1 to March 31), APSPL has reported total operating income of INR94.42 crore as against INR57.20 crore in FY11. It has reported a PAT of INR0.35 crore during FY12 as compared with INR0.19 crore during FY11. BENGAL TEA: CARE Assigns 'CARE BB+' Rating to INR110.10cr Loan -------------------------------------------------------------- CARE assigns CARE BB+ and CARE A4+ ratings to the bank facilities of Bengal Tea & Fabrics Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 110.10 CARE BB+ Assigned Short-term Bank Facilities 8.50 CARE A4+ Assigned Rating Rationale The ratings are primarily constrained on account of the adverse performance of the textile division of Bengal Tea & Fabrics Ltd in FY12 (refers to the period April 1 to March 31) due to high volatility in cotton prices leading to cash losses, although the performance has improved in Q1FY13. The ratings are further constrained due to its high leverage, labor intensive operations of its tea division, susceptibility of both divisions to rainfall and weather conditions, and presence in an intensely competitive and cyclical textile industry. The ratings, however, favorably take into account the vast experience of its promoters, presence in the diverse businesses of textile and tea and stable performance of its tea division with favorable demand scenario. BTFL's ability to improve the performance of its textile division by managing the risk associated with volatile raw material prices and realizing envisaged operational efficiencies from its ongoing modernization project in the division, maintaining stable performance of its tea division, efficient management of its working capital and improvement in its capital structure would be the key rating sensitivities. Incorporated in the year 1983 as BTFL, the company is promoted by Late Shree B. D. Kanoria. In 1985, BTFL took over Bengal Tea & Industries Ltd. which was earlier known as Bengal Tea Company Limited. Earlier in 1970 and 1976, BTCL had taken over The Asarwa Mills Ltd. and Ananda Assam Tea Company Ltd respectively. Thus, BTFL has presence in two divisions, viz. Textile and Tea. The textile division comprises a composite yarn and cloth mill called Asarwa Mills located at Ahmedabad with an installed capacity of 43,152 spindles for yarn manufacturing and 63 looms for fabric as on March 31, 2012. In the tea division, BTFL owns three tea estates, having plantation area of around 626 hectares located in upper Assam. It produces around 20 lakh kilogram (kg) of tea per annum including 4 lakh kgs from outsourcing. The company processes Green Tea leaves at its plant located at Ananda Tea Estate and sells Black Tea. DASHMESH ROAD: CARE Places 'BB' Rating on INR17.33cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE BB' and 'CARE A4' rating on Dashmesh Road Construction Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Fund-based Bank 17.33 CARE BB Assigned Facilities-Term Loan Short-term Non-fund Based 0.25 CARE A4 Assigned Bank Facilities - BG / LC Rating Rationale The assigned ratings are tempered due to revenue risk associated with toll-based road projects, low debt-coverage indicators in the medium term and exposure to interest rate risk. The assigned ratings favorably factor in successful completion and operation of road project eliminating project implementation- related risks. The company's ability to achieve projected cash flow through toll collections and support from parent company in case of shortfall in cash flow are the key rating sensitivities. Dashmesh Road Construction Pvt. Ltd. is a special purpose vehicle (SPV) set up for widening, strengthening and operating the 39.85 km road stretch in Taluka Muktainagar, District Jalgaon, Maharahstra on Build, Operate and Transfer (BOT) basis. DCPL is a wholly-owned subsidiary of BNC Power Projects Limited (BNC, rated CARE BBB- / CARE A3). Promoted by Mr. Bhagwat N. Chaudhari, BNC is engaged in erection and commissioning of power transmission lines and substation projects, testing of electrical equipments, live line / hot line and offline maintenance on an Engineering, Procurement and Construction (EPC) basis. DCPL was acquired on June 15, 2006 from the Chhabra group owned by Mr Ajit Munshiram Chhabra. DCPL reported a total operating income of INR4.92 crore in FY11 [refers to period April 1 to March 31] against INR4.00 crore in FY10. The company earned Profit after Tax of INR0.52 crore in FY11 vis-a-vis INR0.48 crore earned in FY10. KAMAL SUITINGS: CARE Rates INR5.52cr LT Loan at 'CARE B' -------------------------------------------------------- CARE assigns 'CARE B' and 'CARE A4' ratings to the bank facilities of Kamal Suitings Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 5.52 CARE B Assigned Short-term Bank Facilities 1.00 CARE A4 Assigned Rating Rationale The ratings assigned to the bank facilities of Kamal Suitings Private Limited are constrained mainly on account of its small scale of operations, presence in the highly competitive and fragmented synthetic fabric industry and limited presence in the textile value chain resulting in thin profitability margins. The ratings are further constrained on account of its leveraged capital structure and stressed liquidity position coupled with the susceptibility of profit margins to the volatile raw material prices. The ratings, however, favorably take into account the rich experience of the promoters in the synthetic fabrics industry and its presence in the textile cluster of Bhilwara (Rajasthan). Increase in the scale of operations and improvement in the overall financial risk profile with effective management of the working capital in light of volatile raw material prices and intense industry competition remains the key rating sensitivity. KSPL, based in Bhilwara (Rajasthan), was promoted by Mr. Naval Kumar Gupta and Mr. Kamal Kishore Gupta in June 1993. During FY08 (refers to the period April 1 to March 31), KSPL was taken over by the Tawani family by acquiring the controlling stake in the company. Currently, KSPL is managed by Mr. Satyanarayan Tawani and Mr. Kapil Maheshwari who collectively look after the overall operations and take all the strategic decisions. KSPL is engaged in the manufacturing of synthetics and cotton fabrics at its manufacturing facility located in Bhilwara (Rajasthan), with an installed capacity of 18 Lakh Meters Per Annum (LMPA) (36 Sulzer Looms) for Synthetics and Cotton Fabrics as on March 31, 2012. KSPL sells its products through the network of its agents primarily spread in northern region of India under the brand name 'KSPL'. During FY12, KSPL reported total income of INR28.79 crore with a PAT of INR0.08 crore as against the total income of INR23.29 and PAT of INR0.07 crore during FY11. KG DENIM: CARE Rates INR54cr Long-Term Loan at 'CARE C' ------------------------------------------------------- CARE assigns 'CARE C' and 'CARE A4' ratings to the bank facilities of KG Denim Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 54.00 CARE C Assigned Short-term Bank Facilities 99.59 CARE A4 Assigned Rating Rationale The ratings are primarily constrained by the past instances of delays in the servicing of debt obligations by KG Denim Ltd. (KGDL), its strained liquidity position, losses till FY10 (refers to the period April 1 to March 31) due to poor returns in home textiles division, volatility in profit margins due to fluctuation in raw material prices and foreign exchange fluctuation, working capital intensive nature of operations, and the cyclical nature of denim industry. The ratings, however, do factor in KGDL's established presence in the denim business for about two decades, the group's integrated presence in the textile value chain, established clientele in domestic as well as export markets and improvement in the performance in FY12. Going forward, the ability of KGDL to regularize its debt servicing track record, improve its liquidity position and utilize its capacity more effectively will be the key rating sensitivities. KGDL was incorporated in the year 1992 by Mr. K. Govindaswamy Naidu, founder of KG group, to manufacture denim fabric. The company is now managed by his son Mr. K. G. Baalakrishnan, Chairman and grandsons Mr. B. Sriramulu, Managing Director and Mr. B. Srihari, Managing Director. The company entered into non- denim business (processing cotton-based fabric and home textiles) during FY07. As at the end of March 2011, KGDL had an installed capacity of 160 looms which can process up to 21 mn meters of denim fabric per annum at Coimbatore. KGDL also has a cogeneration plant with a capacity to generate 3 megawatt (MW) of power p.a. The denim business continues to be the major revenue earner for the company. KGDL has a wholly-owned subsidiary namely, Trigger Apparels Ltd., the retailing arm of the group which concentrates on denim apparel manufacturing and retailing in the domestic market. For the year ended March 2012, KGDL reported a PAT of INR7 cr on a total income of INR403cr. For three months ended June 2012, KGDL has reported PAT of INR2cr on a total income of INR115cr. MILESTONE MERCANDISE: CARE Rates INR13cr LT Loan at 'CARE B' ------------------------------------------------------------ CARE assigns 'CARE B' ratings to the bank facilities of Milestone Mercandise Pvt Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long term Bank Facilities 13 'CARE B' Assigned Rating Rationale The ratings are constrained by Milestone Mercandise Pvt. Ltd.'s strained liquidity position as evident from instances of overdrawals. Moreover, the ratings are constrained by the company's small size of operations, fixed margin business and no pricing power coupled with dependence on UB Group. The ratings also factor in highly regulated nature of the alcoholic beverages industry which is subjected to high state taxes and moderate entry barriers in the distribution segment. Nonetheless, the ratings derive strength from the experience of the promoters in beverage distribution industry and presence of reputed brands and institutional customers in the company's portfolio. The ability of the company to effectively manage its working capital and any change in policy by the Principals are the key rating sensitivities. Incorporated in 1996, Milestone Mercandise Pvt Ltd is engaged in distribution of alcoholic & non-alcoholic beverages and is the anchor distributor of the United Breweries Ltd. & Nashik Vintners Pvt Ltd. MMPL distributes prominent brands in beer, IMFL and wine category to institutional customers in Mumbai & Goa like star-graded hotels, clubs & pubs, high-end restaurants and wholesalers. Some of the popular brands in the company's portfolio include: Kingfisher Draught and Lager Beer in pints and cans, Heineken Beer, Asahi Beer, Sula Branded Wines, Four Seasons Wines, Hardy's Wines (Australian), scotches such as Whyte and Mackay, Jura, Dalmore, Black Dog and IMFL's like Antiquity, Royal Challenge, Signature and McDowell's No. 1. In FY11, nearly 54% of the company's revenue was generated from the sale of Beer, around 38% from the sale of Wines & Spirits and the remaining 1.8% from the sale of beverages. Approximately 96.7% of the revenue is generated from Mumbai region and rest from the state of Goa. RAJ RAJENDRA: CARE Rates INR18.15cr LT Loan at 'CARE BB+' --------------------------------------------------------- CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank facilities of RAJ Rajendra Textile Exports Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 18.15 CARE BB+ Assigned Short-term Bank Facilities 1.00 CARE A4+ Assigned Rating Rationale The ratings are constrained by the relatively modest scale of operations of Raj Rajendra Textile Exports Ltd., moderately stretched working capital cycle and modest profitability margin. The ratings are further constrained by the susceptibility of margins to volatility in raw material prices and foreign exchange fluctuations and its operations in the highly competitive and fragmented textile industry. The ratings, however, do find support from the experience of the promoters in the textile industry, established relationship with the customers and moderate gearing levels. RRTEL's ability to increase its scale of operations along with an improvement in the financial risk profile and efficient management of working capital cycle are the key rating sensitivities. Incorporated in 1977, RRTEL is mainly engaged in the manufacturing of fabrics, primarily used for men's wear catering to both domestic and export markets. RRTEL procures its entire raw material predominantly from Rajasthan and generates approximately 33% of the revenue from exports (mainly to Middle East region and Egypt). Over the years, the company has expanded its capacity from 44 looms (in 1987) to 170 looms as at end of FY12 (refers to the period April to March). RRTEL had an installed capacity of 8 lakh meters of fabrics per annum as on March 31, 2012, with plant being located at Umbergoan and Palghar (rented). During FY12, RRTEL reported total operating income of INR77.38 crore and PAT of INR1.57 crore as against a total operating income of INR71.97 crore and PAT of INR0.67 crore in FY11. Furthermore, during Q1FY12, RRTEL posted total income of INR15.69 crore and a PAT of INR0.47 crore. SHREE JAGDAMBA: CARE Puts 'CARE BB' Rating on INR7cr LT Loan ------------------------------------------------------------ CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank facilities of Shree Jagdamba Coke Industries Pvt. Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term bank facilities 7.00 'CARE BB' Assigned Short-term bank facilities 5.00 'CARE A4' Assigned Rating Rationale The ratings assigned to the bank facilities of Shree Jagdamba Coke Industries Pvt Ltd are primarily constrained by its moderate scale of operations, volatility in raw material and finished goods prices coupled with stiff competition from organized and unorganized sector players, working capital intensive nature of its business and its dependence on the fortunes of steel industry. The ratings, however, derive strength from the long experience of the promoters in coal business, long track record of operations, reputed clientele and strategic location of the plant. Ability to increase scale of operations along with improvement in profitability while managing its working capital effectively would be the key rating sensitivities. SJCIPL was set up as a partnership firm in 1974 as Shree Jagdamba Coke Manufacturing Enterprises, by five partners (Shri Durga Prasad Agarwalla & his three sons and Shri Parasnath Sinha) belonging to Dhanbad. Since inception, the company is engaged in manufacturing of Low Ash Metallurgic Coke (LAMC) and other varieties of hard coke at its manufacturing facilities located at Govindpur, Dhanbad (with initial installed capacity of 28,000 MTPA). In June 1993, the firm was converted into a private limited company and was rechristened as SJCIPL. Over the period, the company gradually expanded its LAMC capacity to 94,000 MTPA, has setup a coal washery (capacity - 200 tonnes per day) and also commenced trading in coal and coke. In FY11 (refers to the period from April 2010 to March 2011), SJCIPL reported a PBILDT of INR5.5 crore and a PAT of INR2.7 crore on a total operating income of INR47.2 crore. Further, as per provisional results for FY12, the firm has achieved a total operating income of INR38.8 crore. SUPER AGRI: CARE Assigns 'CARE BB+' Rating to INR22.47cr LT Loan ---------------------------------------------------------------- CARE assigns 'CARE BB+' and 'CARE A4' ratings to the bank facilities of Super Agri Seeds P. Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 22.47 CARE BB+ Assigned Short-term Bank Facilities 2.00 CARE A4 Assigned Rating Rationale The ratings of Super Agri Seeds P Ltd. are constrained by relatively moderate scale of operation, dependence on the vagaries of nature associated with agro-based industries, stretched operating cycle with high reliance on working capital borrowings, capital intensive nature of business with continuous investment required in research & development and intense competition from large domestic players. The ratings also factor in the satisfactory experience of the promoter, investment by private-equity fund during FY12, diversified product mix, moderate profitability and satisfactory financial leverage. The ability of the company to increase its scale of operations, manage working capital effectively and withstand competition are the key rating sensitivities. Super Agri Seeds P. Ltd., belonging to Mr. Ravi Srinivas of Hyderabad, was originally started as a partnership firm in 1998 and later converted into a Private Limited company in 2003. SASPL is engaged in the production, processing and marketing of hybrid and open pollinated seeds of various vegetable and field crops. It, presently, has a product mix of 9 field crops (viz. cotton, rice, corn, etc) and more than 20 vegetable crops. Besides the promoter, India Agri Fund (a Private Equity Fund of Rabo Bank) has invested in the company (in March, 2012) by subscribing to Compulsorily Convertible Preference Shares (CCPS). SASPL earned a PBILDT of INR13.1 crore [FY11 (refers to the period April 1 to March 31) - INR7.3 crore] and a PAT (after deferred tax) of INR7.2 crore (FY11 - INR4.2 crore) on a total income of INR70.3 crore (FY11 - INR55.2 crore) in FY12 (Provisional). SURYA COTSPIN: CARE Rates INR6.3cr LT Loan at 'CARE BB-' -------------------------------------------------------- CARE assigns 'CARE BB-' rating to the bank facilities of Surya Cotspin Ltd. Facilities (INR crore) Ratings ----------- ----------- ------- Long-term Bank Facilities 6.30 CARE BB-Assigned Rating Rationale The rating assigned to the bank facilities of Surya Cotspin Limited is primarily constrained by its small scale of operations, working capital intensive nature of business, raw material price dependency on government policies and agro climatic conditions, customer concentration risk and its presence in a highly fragmented and competitive textile industry. The rating, however, does draw comfort from the experienced promoters and long track record of operations, moderate capital structure and strategic location of the manufacturing plant. Going forward, the ability of the company to profitably scale up its operation while controlling input costs and effective working capital utilization would be the key rating sensitivities. Surya Cotspin Limited is a closely held public limited company incorporated in October 1997, with the promoters and their associates holding 100% of the equity. Mr. Madan Lal, Mr. Vijay Garg, Mr. Mohan Lal, Mr. Surinder Garg and Mr. Parveen Bansal are the promoters and active participants in management of the company. The company is engaged in the manufacturing of cotton yarn and has installed capacity of 2,142 metric tons per annum (MTPA) of cotton yarn at its manufacturing facility located at Samana, Punjab. SCL sells its finished products mainly to the manufacturers of fabric (weaving units) and also to the traders of cotton yarn. The major market for the company includes Delhi, Uttar Pradesh (UP), Madhya Pradesh (MP) and Punjab. For FY12 (provisional) (refers to the period April 1 to March 31), SCL achieved total operating income of INR18.51 crore with PBILDT and PAT of INR1.16 crore and INR0.04 crore, respectively. ========= J A P A N ========= KANSAI URBAN: Moody's Cuts Financial Strength Rating to 'D-' ------------------------------------------------------------ Moody's Japan K.K. has downgraded the ratings of Kansai Urban Banking Corporation. The outlook for all ratings is stable. The affected ratings are: Long-term bank deposit rating (domestic and foreign currency): Downgraded to A3 from A2 Senior unsecured shelf registration rating (domestic currency): Downgraded to (P)A3 from (P)A2 Senior subordinated debt rating (domestic currency): Downgraded to Baa1 from A3 Senior subordinated shelf registration rating (domestic currency): Downgraded to (P)Baa1 from (P)A3 Junior subordinated debt rating (domestic currency): Downgraded to Baa2(hyb) from Baa1(hyb) Junior subordinated shelf registration rating (domestic currency): Downgraded to (P)Baa2 from (P)Baa1 Short-term bank deposit rating (domestic and foreign currency): Downgraded to Prime-2 from Prime-1. Bank Financial Strength Rating: Downgraded to D- from D, mapping to a baseline credit assessment (BCA) of ba3 from ba2 on the long-term scale. Ratings Rationale The downgrade of KUBCs ratings is based on the Moody's view that earnings will remain constrained and the bank will not be able to improve profitability to the higher levels achieved prior to the global financial crisis, as previously anticipated. As a result, internal capital generation will be weak and the current low Tier 1 capital adequacy ratio is unlikely to improve. The revised ratings also incorporate Moody's ongoing assumption that the bank will receive a high level of support -- including capital injections, if necessary -- from Sumitomo Mitsui Banking Corporation (SMBC, Aa3 stable; C/a3 stable), its parent bank, in the event of stress. 1. Weakened profitability with a recovery unlikely in 2-3 years The bank has returned to profitability following losses in FYE3/2011 and FYE3/2012, but at a much lower level than before the global financial crisis. Top-line profits have been negatively affected by a factor common to all banks in Japan, namely lower policy interest rates. In addition, there is a bank-specific factor, a decline in the profits from its high-risk, high-return real estate loan portfolio. Credit costs have been declining from their peak, but are still high when compared with pre-provision profits. In FYE3/2012, the bank's credit costs (net provision of specific reserve for loan losses) were JPY28.6 billion, or more than 100% of its JPY27.5 billion in pre-provision profits. However, this situation was somewhat offset by reversals in general provisions. As a result of the fall in top-line profits, combined with declining, but still large credit costs from its real estate exposures, bottom-line profits have also weakened. Moody's does not believe that the bank's top-line profit will increase, given low interest rates and the fall in its risk appetite. Moody's also expect the bank will continue to incur relatively higher credit costs from in its real estate loan portfolio and, as a result, do not expect bottom-line profits to improve significantly. 2. Current weak capital adequacy -- improvement through profit accumulation difficult in coming 2-3 years KUBC, unlike other rated banks in Japan, has not been able to improve its capital adequacy ratio after the financial crisis because of its weak earnings. Capital has not improved significantly despite the parent bank's subscription to its preferred security issuance in 2009. The aim of the issuance was to strengthen its regulatory capital base. As a result, the bank's Tier 1 ratio, which measured 5.18% at end-June 2012 -- almost unchanged from 4.9% at end-March 2010 -- is one of the lowest for over 100 regional banks in Japan. Furthermore, a large portion of the its Tier 1 capital consists of lower quality deferred tax assets. These correspond to over a third of its Tier 1 capital. Such a proportion is high for Japanese banks. After the call of its JPY12.5 billion in preferred securities (counted as Tier 1 capital) in July, the ratio is estimated to have fallen below 5%. The bank's capital, both quality and quantity, is weak, especially given its on-balance real estate exposures, which will remain a source of credit costs. Combined with its current low level of capital adequacy and expected low level of retained earnings, the bank will not be able to improve its capital levels through internal capital generation. Potential Rating Triggers An upgrade is possible if the bank can sustain a Tier 1 ratio of more than 7%. But, given the difficult operating environment evident for most Japanese regional banks, the possibility of an upgrade in the near future -- as a result of achieving this ratio through profit growth -- is remote. Factors that could result in a further downgrade include, but are not limited to, the following: 1) A bottom-line annual loss, 2) any development which indicates a weaker relationship with SMBC, 3) a downgrade of SMBC's deposits ratings, and 4) a downgrade of Japan's sovereign rating. The principal methodology used in this rating was Moody's Consolidated Global Bank Rating Methodology, published on July 6, 2012. Kansai Urban Banking Corporation, headquartered in Osaka, is a consolidated subsidiary of the Sumitomo Mitsui Banking Corporation. OLYMPUS CORP: Officially Agrees on Capital Tie-Up With Sony ----------------------------------------------------------- Aki Fukuyama at The Asahi Shimbun reports that Olympus Corp. has officially agreed with Sony Corp. for a capital tie-up that will make the electronics giant the largest shareholder in the struggling camera and medical equipment maker, sources said Sept. 21. Sony's injection of about JPY50 billion (US$625 million) will give it a more than 10% stake in Olympus, the report relates. Sony will also send a board member to the company, Asahi Shimbun relates. According to the report, the two firms also decided to set up a joint company this year to develop and manufacture endoscopes and to conclude a business tie-up in the camera business. They will consider cost-cutting measures, including a system to use common parts, the sources said. The capital and business tie-ups will be announced on Sept. 28, Asahi Shimbun's sources added. According to the Asahi Shimbun, sources said Olympus' capital adequacy ratio dropped to as low as 2.2% at the end of June this year. With Sony's capital injection, however, the ratio will exceed 10%, eliminating concerns about the management of Olympus, which has been struggling since its accounting scandal was revealed in 2011. About Olympus Corp. Based in Japan, Olympus Corporation (TYO:7733) -- http://www.olympus-global.com/-- manufactures and sells medical products, life and industrial products, imaging products, information communication products and other products. As of March 31, 2011, the Company has 188 subsidiaries and 11 associated companies. As reported in the Troubled Company Reporter-Asia Pacific on May 14, 2012, Japan Today said Olympus Corp. posted a JPY48.99 billion loss in the year to March, a shortfall largely tied to a loss cover-up at the camera and medical equipment maker that hammered Japan's corporate-governance image. Japan Today said the firm attributed the loss to a scandal that sparked lawsuits and the arrest of former executives accused of hiding about US$1.7 billion in investment losses. According to the report, Olympus said the result, which reversed a small profit of JPY3.87 billion a year earlier and was bigger than forecast, was largely attributed to costs related to the cover- up. SHARP CORP: Mulls LCD Tieup With Intel -------------------------------------- The Japan Times Online reports that Sharp Corp. may form a business tie-up with Intel Corp. over small and midsize liquid crystal displays for smartphones and tablet computers, company sources said Friday. According to the report, the move comes as the cash-strapped company's hoped-for accord with Hon Hai Precision Industry Co. remains stuck as the Taiwanese firm seeks to revise the terms of a planned capital tieup after Sharp's share price plummeted on news of Sharp's first-quarter losses. The Japan Times Online relates that although the Osaka-based electronics giant produces small and midsize size LCD panels with low energy consumption and high picture quality, demand remains sluggish. Intel is also facing an uphill struggle with its smartphone semiconductor business, the report relays. The report adds the two companies are therefore studying ways to cooperate in areas where they have the potential to expand sales, the sources said. Meanwhile, The Japan Times Online reports that Sharp denied a report that it is discussing a possible capital alliance with Intel. According to the report, The Mainichi Shimbun reported in its Friday edition that the struggling company is in talks with Intel over forming a capital alliance valued at more than JPY30 billion. The Japan Times discloses that Sharp logged a record group net loss of JPY376 billion in fiscal 2011 on slumping LCD TV and panel sales and expects to remain in the red this business year. To receive additional assistance from financial institutions, Sharp is drawing up a restructuring plan to return to profitability in the business year starting in April, including asset sales and a substantial cut in its workforce, the report notes. About Sharp Corporation Based in Osaka, Japan, Sharp Corporation (TYO:6753) -- http://sharp-world.com/-- manufactures and sells electronic telecommunication devices, electronic machines and components. As reported in the Troubled Company Reporter-Asia Pacific on Sept. 4, 2012, Standard & Poor's Ratings Services lowered to 'BB+' its long-term corporate credit and senior unsecured debt ratings on Sharp Corp. and its overseas subsidiaries, Sharp Electronics Corp. and Sharp International Finance (U.K.) PLC. "At the same time, we lowered our short-term ratings on the companies to 'B' from 'A-2'. We kept Sharp's long- and short-term ratings on CreditWatch with negative implications," S&P said. "Sharp's liquidity position is weakening, in Standard & Poor's view. Internal cash flow remains weak, and financial market conditions for the company have deteriorated. The company has forecast an expected JPY250 billion net loss for fiscal 2012 (ending March 31, 2013), exceeding its budgeted depreciation expense of JPY200 billion. As of June 30, 2012, Sharp had a high dependence on short-term borrowings. It had JPY336 billion in short-term debt and JPY362 billion in commercial paper. In recent weeks, the company has faced unfavorable financial market conditions, as evidenced by a recent rise in spreads on credit default swaps, which has added to its difficulty in issuing new commercial paper. Weak internal cash flow has forced the company to repay its commercial paper primarily with bank borrowings. Because its current liquidity needs exceed sources, we view Sharp's liquidity position as 'less than adequate.' Under our ratings criteria, we assign an issuer credit rating no higher than 'BB+' to a company with 'less than adequate' liquidity," S&P said. The TCR-AP reported on Aug. 7, 2012, that Moody's Investors Service downgraded its short-term ratings on Sharp Corporation and its supported subsidiaries, Sharp International Finance (UK) plc and Sharp Electronics Corporation, to Prime-3 from Prime-2. The ratings remain under review for further downgrade. The rating action reflects Moody's increasing concern that the company's weak operating performance and additional restructuring costs will continue to pressure its cash flow downwards, thereby increasing its dependence on external sources for liquidity. ================ M A L A Y S I A ================ POLYMER COMPOSITE: Placed Under Liquidation ------------------------------------------- The Board of Directors of Hexagon Holdings Berhad announced on Sept. 19, 2012, that Polymer Composite Asia (Liaoning) Co. Ltd had been placed under liquidation pursuant to Article 180 of the Companies Law of the People's Republic of China. PCA Liaoning was incorporated in Northern China and is a subsidiary of Polymer Composite Asia Sdn Bhd, which is a wholly owned subsidiary of Hexagon Tower Sdn Bhd, a wholly owned subsidiary of the Company. PCASB acquired 51% equity interest of PCA Liaoning on April 16, 2007, for a total consideration of RMB2,550,000 (MYR1,140,000). The liquidation will not have a material effect on the earnings and net assets of the Hexagon Group for the financial period ending Dec. 31, 2012. None of the Directors or substantial shareholders of the Company or persons connected to them has any interest, direct or indirect, in the liquidation. ==================== N E W Z E A L A N D ==================== AOTEAROA COOLSTORES: Still Owes NZ$14MM at End of Receivership -------------------------------------------------------------- Jono Galuszka at stuff.co.nz reports that Aotearoa Coolstores Ltd, a company formerly run by bankrupted businessman Ken Thurston, still owes nearly NZ$14 million at the end of its receivership. But the chances of that money being paid back are minimal as there are no assets left to sell, the report relates. stuff.co.nz notes that Aotearoa Coolstores, a company based around the meatworks facility in Longburn, was placed into receivership two years ago. The receivership -- run by Grant Thornton -- ended last week, but the company is still in liquidation, stuff.co.nz says. According to stuff.co.nz, the latest receiver's report, signed off by David Ruscoe, states that all assets belonging to the company have been sold. But despite this, the company still owes ANZ Bank NZ$4.5 million and South Canterbury Finance NZ$10 million, stuff.co.nz discloses. stuff.co.nz relates that South Canterbury Finance, which itself went into receivership in 2010, was originally owed NZ$13.9 million, but took control and sold land in Feilding owned by Aotearoa Coolstores to pay off debts. The sale of those properties netted SCF about NZ$3.9 million, stuff.co.nz adds. stuff.co.nz notes that final financial statements from the receivership showed NZ$5,720,327 was made by receivers while they were in charge of the company, including NZ$3.3 million from the sale of property. However, they managed to spend NZ$5,720,328 during the receivership -- NZ$1 more than what they earned. The amount included $3.4 million in payments to secured creditors, stuff.co.nz adds. According to stuff.co.nz, Inland Revenue had lodged a claim for about NZ$544,000 in unpaid taxes, as well as outstanding Kiwisaver, student loan and child support payments. It is unclear from the report if this was paid back or not. The report said there would be no money to pay any of the unsecured creditors, stuff.co.nz reports. Aotearoa Coolstores was placed into liquidation on August 12, 2010, over a NZ$130,501 debt to GA Services. PERPETUAL TRUST: High Court Winds Up Mortgage Fund -------------------------------------------------- Michael Berry at stuff.co.nz reports that Perpetual Trust's "illiquid" mortgage fund has been ordered terminated by the High Court in Auckland. stuff.co.nz relates that Justice Paul Heath ordered Perpetual Trust, the wealth management arm of NZX-listed Pyne Gould Corporation, to wind up its mortgage fund and pay for the costs of doing so with its own money. The fund remains frozen, as it has since July when the court ordered a moratorium on it, the report notes. By September 11, redemption requests for almost a third of the mortgage fund units -- worth an estimated NZ$18.3 million -- had been received from 437 investors. According to the report, Adam Holloway, lawyer for the fund's statutory supervisor, Trustees Executors, said the mortgage fund was illiquid, needed to be wound up and investors may be left with less than NZ$1 for each unit. Mr. Holloway said the court needed to amend the fund's deed documents because they no longer protected investors' interests, stuff.co.nz adds. The report says Justice Heath agreed and said the statutory supervisor had good reason to be uneasy about the situation. "There was an ample foundation for the statutory supervisor's view. It flowed from the nature of the Torchlight loan, the circumstances in which it was made and Perpetual's denial that the loan was made in breach of the deeds and offer documents." Based in New Zealand Perpetual Trust Limited -- http://www.perpetual.co.nz/-- provides trustee and financial advice, services, and solutions. Perpetual Trust is a subsidiary of Pyne Gould Corp. SOUTH CANTERBURY: Southbury Has NZ$700K in Cash, PwC Reports ------------------------------------------------------------ BusinessDesk reports that Southbury Group, the primary holding company for the empire of deceased Timaru businessman Allan Hubbard, only has NZ$700,000 in cash, according to the first liquidator's report. BusinessDesk relates that liquidators John Fisk and David Bridgman of PricewaterhouseCoopers said the group's investments in other companies and loans with a book value of NZ$195 million are "likely to be of negligible value." The group owes some NZ$83 million to the now-defunct South Canterbury Finance, referred to as FCS Loans. "The company was placed into liquidation as the final step in the insolvency process of the South Canterbury Finance group of companies," the liquidators, as cited by BusinessDesk, said. The liquidators were appointed last month after satisfying the High Court that a potential conflict of interest, where Jean Hubbard, Allan Hubbard's widow, engaged PwC for advice, wouldn't be a problem, according to BusinessDesk. In June, BusinessDesk recounts, Jean Hubbard engaged PwC to undertake an independent valuation for a proposed asset sale where she and her husband's estate were shareholders. In a sworn affidavit attached to the report, Mr. Fisk said the valuation was limited in scope, was being conducted by a separate team based in Auckland, and didn't relate to Southbury in any way, BusinessDesk notes. "I do not believe that there is any potential prejudice to Southbury or its creditors, shareholders or directors, by virtue of the valuation PwC is undertaking for Mrs. Hubbard," BusinessDesk quotes Mr. Fisk as saying. Mr. Fisk and Mr. Bridgman are also acting as liquidators for eight other South Canterbury Finance-related companies, the report adds. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the provision of financial services. The Company's principal activities were borrowing funds from public and institutional investors and on lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advanced funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. On Aug. 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalize. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government repaid South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the Crown retail deposit guarantee scheme. ================= S I N G A P O R E ================= FIVE STARS: Creditors' Proofs of Debt Due Oct. 19 ------------------------------------------------- Creditors of Five Stars Dairy Ingredients Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 19, 2012, to be included in the company's dividend distribution. The company's liquidator is: Lau Chin Huat c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 METCOMP CO: Creditors' Proofs of Debt Due Oct. 19 ------------------------------------------------- Creditors of Metcomp Co (Singapore) Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 19, 2012, to be included in the company's dividend distribution. The company's liquidator is: Andrew Grimmett 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 MORGAN STANLEY: Creditors' Proofs of Debt Due Oct. 19 ----------------------------------------------------- Creditors of Morgan Stanley Equity Trading (Singapore) Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 19, 2012, to be included in the company's dividend distribution. The company's liquidator is: Andrew Grimmett 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 REFLECT GEOPHYSICAL: Court to Hear Wind-Up Petition on Oct. 5 ------------------------------------------------------------- A petition to wind up the operations of Reflect Geophysical Pte Ltd will be heard before the High Court of Singapore on Oct. 5, 2012, at 10:00 a.m. World Fuel Services (Singapore) Pte Ltd filed the petition against the company on Sept. 7, 2012. The Petitioner's solicitors are: AsiaLegal LLC 8 Robinson Road #08-00 ASO Building Singapore 048544 WEE SIONG: Creditors' Proofs of Debt Due Oct. 19 ------------------------------------------------ Creditors of Wee Siong Engineering Services Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 5, 2012, to be included in the company's dividend distribution. The company's liquidator is: Don M Ho, FCPA c/o Don Ho & Associates Corporate Advisory & Recoveries Equity Plaza 20 Cecil Street #12-02 Singapore 049705 YOKOGAWA MANAGEMENT: Creditors' Proofs of Debt Due Oct. 19 ---------------------------------------------------------- Creditors of Yokogawa Management Services Singapore Pte Ltd, which is in members' voluntary liquidation, are required to file their proofs of debt by Oct. 19, 2012, to be included in the company's dividend distribution. The company's liquidator is: Lau Chin Huat c/o 6 Shenton Way #32-00 DBS Building Tower Two Singapore 068809 ********* 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 ***