TCRAP_Public/110922.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, September 22, 2011, Vol. 14, No. 188

                            Headlines



A U S T R A L I A

COLORADO GROUP: Emerges From Receivership as Fusion Retail
PLAYMORE GOLF: Clive Palmer Buys Golf Courses for AUD7 Million
VISCERAL GAMES: Melbourne Studio Closes Doors


C A M B O D I A

CAMPU BANK: Moody's Affirms 'Ba1' Local-Currency Deposit Rating


H O N G  K O N G

ARC CONSULTANCY: Court Enters Wind-Up Order
ASIA CANDLE: Lo and Leung Appointed as Liquidators
ASIA MASTERS: Lo and Leung Appointed as Liquidators
ASIADISC LIMITED: Court Enters Wind-Up Order
BROADBAND NETWORK: First Meetings Slated for Sept. 26

CARLSON INDUSTRIAL: Creditors' Proofs of Debt Due Sept. 30
CENTRAL WATERFRONT: Members' Final Meeting Set for Oct. 18
CHEONG SHING: Wong and Tsui Step Down as Liquidators
CHIU KONG: Court Enters Wind-Up Order
COMTECH ENGINEERING: Creditors' Proofs of Debt Due Oct. 17

CREATIVE MODEL: Members' Final Meeting Set for Oct. 17
DIADORA ASIA: Annual Meetings Set for Sept. 28
DIALIGHT COMPANY: Muk and Middleton Step Down as Liquidators
EASTRICH INDUSTRIAL: Lo and Leung Appointed as Liquidators
ERAWAN COMPANY: Kenny and Shum Appointed as Liquidators


I N D I A

ADITYA POLYMERS: CARE Rates INR42cr Long-Term Loan at ''CARE BB+'
ADLEC SYSTEMS: ICRA Reaffirms '[ICRA]BB+' Rating on INR1cr Loan
BALAR FABRICS: CARE Rates INR10cr Long-Term Loan at 'CARE BB'
BST TEXTILE: ICRA Cuts Rating on INR37.8cr Loan to '[ICRA]BB-'
CONROS STEELS: ICRA Cuts Rating on INR3.12cr Loan to '[ICRA]D'

ELTEL ENGINEERS: ICRA Places '[ICRA] BB-' Rating on INR16.5cr Loan
GANGAKHED SUGARS: Fitch Affirms Long-Term Rating at 'BB-(ind)'
G. N. PET: CARE Rates INR10.9cr Long-Term Loan at 'CARE BB'
GOEL EXIM: ICRA Rates INR50cr Capital Limits at '[ICRA]BB-'
GURVIR MOTORS: ICRA Assigns '[ICRA]BB+' Rating to INR5cr Bank Loan

KUMARAGIRI ELECTRONICS: ICRA Reaffirms '[ICRA]B' Term Loan Rating
KUMARAGIRI TEXTILES: ICRA Reaffirms '[ICRA]B' Term Loan Rating
R.C. INDUSTRIES: CARE Assigns 'CARE BB-' Rating to INR2.69cr Loan
RGTL INDUSTRIES: ICRA Assigns '[ICRA]BB' Rating to INR31.9cr Loan
RITEMED PHARMA: ICRA Reaffirms '[ICRA]BB' Rating on INR12.6cr Loan

ROSELABS BIOSCIENCE: ICRA Puts '[ICRA]B+' Rating on INR90cr Loan
SAINEST TUBES: ICRA Assigns '[ICRA]BB+' Rating to INR23.7cr Loan
S J CONTRACTS: ICRA Assigns '[ICRA]BB+' Rating to INR5cr LT Loan
SRI SAI SINDHU: CARE Assigns 'CARE D' Rating to INR47.5cr Loan
SRI SHARDHA: ICRA Places '[ICRA]B+' Rating to INR5cr Limits

TEXTRADE INT'L: ICRA Assigns '[ICRA]BB-' Rating to INR16.93cr Loan


J A P A N

L-JAC FIVE: S&P Lowers Ratings on 3 Classes of Certs. to 'D'
TRUST FONTANA: Moody's Puts Ba2 Rating on Cl. D Trust Certificates


N E W  Z E A L A N D

AMI INSURANCE: Christchurch Quake Claims Likely at NZ$531 Million
AMI INSURANCE: May Need NZ$340MM Government Support, English Says
BRIDGECORP LTD: Directors Lose Cover for Defence Costs
CRAFAR FARMS: Rich Lister Heads New Bid for 16 Crafar Farms
ROCKFORTE FINANCE: Receivers Cut Payout Forecast to Less Than 5c

ST LAURENCE PROPERTY: Bondholders Face Shortfall After Liquidation




                            - - - - -


=================
A U S T R A L I A
=================


COLORADO GROUP: Emerges From Receivership as Fusion Retail
----------------------------------------------------------
The Australian reports that outdoor clothing retailer Colorado
Group has emerged from receivership as Fusion Retail Brands.

Fusion Retail will be owned by the main secured creditors of the
Colorado Group, including Nomura, Anchorage Capital Partners,
National Australia Bank and Ice Canyon, according to The
Australian.

The report notes that Fusion Retail Chief Executive Kevin Roberts
said the company would spend AU$40 million in capital expenditure
and more than AU$30 million in marketing expenditure to improve
the in-store and online experience for customers.

As reported in the Troubled Company Reporter-Asia Pacific on
March 31, 2011, Colorado Group Limited was placed in receivership
on March 30, 2011, following the board's appointment of Deloitte
as voluntary administrators.  Colorado Group incorporates five
well-known brands -- JAG, Diana Ferrari, Colorado, Mathers,
Williams -- with 434 stores across Australia and New Zealand.

Ferrier Hodgson partners James Stewart, Brendan Richards and Will
Colwell were appointed receivers and managers over the group.
The appointment was made by the syndicate of secured creditors
owed AUD400 million.

                         About Colorado Group

Colorado Group -- http://www.coloradogroup.com.au/-- is a leading
footwear and apparel retailer and wholesaler with more than 430
stores in Australia and New Zealand operating under the divisions
of Colorado, Mathers, Williams, diana ferrari, Jag, and Pairs.
The group employs approximately 3,800 people.


PLAYMORE GOLF: Clive Palmer Buys Golf Courses for AUD7 Million
--------------------------------------------------------------
Nick Nichols at goldcoast.com.au reports that Clive Palmer has
bought Robina Woods and The Colonial golf courses for
AUD7 million.

The billionaire businessman confirmed Tuesday he had bought the
properties from receivers in what is, in effect, an unconditional
deal.  The sale is only reliant on the transfer of liquor licences
from the previous owner, Playmore Golf, to Mr. Palmer's interests,
which market sources say is a mere formality.

According to the report, a spokesman for Mr. Palmer said the
mining entrepreneur, who in July swooped on the Hyatt Regency
Coolum for an undisclosed sum, planned to continue running both
Gold Coast properties as golf courses.

The latest deal marks another sizeable investment in the tourism
sector for Mr. Palmer, who is worth more than AUD6 billion, the
report notes.

As reported in the Troubled Company Reporter-Asia Pacific on
July 13, 2011, goldcoast.com.au said a campaign had been launched
to sell Robina Woods and The Colonial Golf courses, both owned by
Playmore Golf, which went into receivership this year.  CB Richard
Ellis's Mark Witheriff and Paul Nyholt, with McVay Real Estate's
Will and Sam McVay, steered the expressions of interest campaign
with the properties listed for sale under instruction from Joseph
Hayes and Jamie Harris from McGrathNicol as receivers and managers
of Playmore Golf.

Robina Woods and The Colonial, formerly known as Paradise Springs,
are situated within a few kilometres of each other in the master-
planned residential community of Robina.


VISCERAL GAMES: Melbourne Studio Closes Doors
---------------------------------------------
SmartCompany reports that video game studio Visceral Games has
shut its doors, one of several in the past year, in yet another
sign the Australian development industry is hurting as publishers
of blockbuster titles opt to cut costs.

The closure of the Melbourne division of Visceral Games, which
worked on the internationally successful horror title Dead Space,
comes after SmartCompany revealed the makers of blockbuster game
LA Noire, Team Bondi, collapsed into receivership last month.

SmartCompany notes that this also comes after international
publisher THQ shut down the Blue Tongue studio in August, also in
Melbourne, along with its Brisbane division.  It follows a
disappointing few years for major publishing work in Australia,
with EA-owned Pandemic also closing in 2009 and general employment
opportunities thinning out, according to SmartCompany.

Visceral's owner, EA, announced the closure on Tuesday, saying in
a statement that with no active project in development, "we've
decided to close the Visceral Melbourne office . . . they are
talented individuals and may find other roles elsewhere in EA, if
they choose."

                         About Visceral Games

Visceral Games is a video game development studio internally owned
by Electronic Arts, Inc.  Visceral Games is responsible for
critically acclaimed next-gen action games including Dead Space,
Dante's Inferno, and the recently released Dead Space 2.  It has
studios at Redwood Shores (California), Los Angeles (California),
Montreal (Quebec), Shanghai (China), and Melbourne (Australia).


===============
C A M B O D I A
===============


CAMPU BANK: Moody's Affirms 'Ba1' Local-Currency Deposit Rating
---------------------------------------------------------------
Moody's Investors Service has changed the outlook to negative from
stable on Cambodian Public Bank's "D" bank financial strength
rating (BFSR), which maps to a baseline credit assessment of Ba2.

At the same time, Moody's has affirmed Campu Bank's ratings,
including its D BFSR, Ba1 local-currency deposit and issuer
ratings, B1 foreign-currency issuer rating and B3 foreign-currency
deposit rating.

The outlook on the bank's local- and foreign-currency deposit and
issuer ratings remains stable.

Ratings Rationale

"The negative outlook for the bank's BFSR is mainly driven by the
rising level of risk evident in the country's banking system, the
result, in turn, of rapid credit growth over many years, and
increasingly adverse economic developments in the advanced
markets. The latter events in the developed countries could
negatively affect the Cambodian economy and thereby the financial
capacity of bank borrowers," says Christine Kuo, a Moody's Senior
Credit Officer.

"Moreover, Campu Bank is increasingly exposed to sovereign risk as
it deposits its excess liquidity with the central bank," adds
Ms. Kuo.

Cambodia's government bond rating is B2.

"However, Campu Bank's deposit and issuer ratings are underpinned
by strong support from its parent, Malaysia-based Public Bank
Berhad, and hence the stable outlook is not affected," says Kuo.
PBB has a C BFSR, A3 BCA, and A3 foreign-currency deposit rating.

Credit in the Cambodian banking system grew to USD3,241 million at
end-2010 from USD604 million at end-2005, or at a compound
annualized growth rate of 40% over the last five years.

Total assets in the system grew to 56% of GDP from 22% over the
same period.

While Campu Bank has not grown its loan book since 2009, rising
borrower leverage -- as a result of years of much higher credit
growth than income growth -- is a rating concern for all banks
operating in the country.

In addition, the Cambodian economy is very vulnerable to external
developments due to its narrow base and heavy reliance on exports,
tourism, and foreign investments. Hence the economic uncertainties
in Europe and the US could impede Cambodia's economic growth.

At the same time, Campu Bank's BFSR reflects its established
franchise in Cambodia, strong capital position, ample liquidity,
good profitability and satisfactory asset quality. It had a 19%
market share in deposits and 18% in loans at end-2010. It also
reported an equity-to-asset ratio of 20%, a gross-loan-to-deposit
ratio of 74%, and a 3.4% non-performing loan ratio on the same
date. Its net profit in 2010 was 2.1% of average risk-weighted
assets.

On the other hand, the BFSR also takes into account the challenges
associated with the bank's operating environment, including its
narrow economic base, its poor infrastructure and level of
transparency, and the presence of corruption.

On the issue of support, Moody's believes that the likelihood of
support from its parent -- in the event of stress -- is very high.
The incorporation of such support could have resulted in multiple-
notch uplifts in Campu Bank's deposit and issuer ratings from the
Ba2 BCA. However, its ratings are constrained by Cambodia's Ba1
local currency deposit and bond ceiling, B1 foreign currency bond
ceiling, and B3 foreign currency deposit ceiling.

In light of Campu Bank's significant market share, Moody's also
believes that the likelihood of systemic support for the bank, in
the event of stress, is very high. But the incorporation of
potential systemic support would not lead to any additional uplift
in the deposit and issuer ratings due to the same country ceiling
mentioned earlier and the very limited resources available to the
Cambodian government to assist the bank, if needed.

The methodologies used in this rating were Bank Financial Strength
Ratings: Global Methodology published in February 2007, and
Incorporation of Joint-Default Analysis into Moody's Bank Ratings:
A Refined Methodology published in March 2007.

Campu Bank is headquartered in Phnom Penh.  At end-2010, it
reported assets of USD991 million.


================
H O N G  K O N G
================


ARC CONSULTANCY: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on Sept. 7, 2011, to
wind up the operations of Arc Consultancy Limited.

The company's liquidator is Teresa S W Wong.


ASIA CANDLE: Lo and Leung Appointed as Liquidators
--------------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 16, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Asia Candle Manufacturing Limited on March 10,
2009.

The liquidators may be reached at:

         Lo Ka Ying
         Leung Ka Lok
         Room 1307, Tower 1
         Lippo Centre
         89 Queensway, Admiralty
         Kong Kong


ASIA MASTERS: Lo and Leung Appointed as Liquidators
---------------------------------------------------
Lo Ka Ying and Leung Ka Lok said in notice dated Sept. 16, 2011,
they have been appointed by the High Court of Hong Kong as
liquidators of Asia Masters Consulting Group Limited on Oct. 29,
2010.

The liquidators may be reached at:

         Lo Ka Ying
         Leung Ka Lok
         Room 1307, Tower 1
         Lippo Centre
         89 Queensway, Admiralty
         Kong Kong


ASIADISC LIMITED: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on Sept. 7, 2011, to
wind up the operations of Asiadisc Limited.

The company's liquidator is Teresa S W Wong.


BROADBAND NETWORK: First Meetings Slated for Sept. 26
-----------------------------------------------------
Contributories and creditors of Broadband Network Systems Limited
will hold their first meetings on Sept. 26, 2011, at 3:00 p.m.,
and 3:30 p.m., respectively at 29/F., Caroline Centre, at Lee
Gardens Two 28 Yun Ping Road, in Hong Kong.

At the meeting, Wong Tak Man Stephen and Osman Mohammed Arab, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


CARLSON INDUSTRIAL: Creditors' Proofs of Debt Due Sept. 30
----------------------------------------------------------
Creditors of Carlson Industrial (H.K.) Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by Sept. 30, 2011, to be included in the company's
dividend distribution.

The company's liquidators are:

         Ho Man Kit Horace
         Kong Sze Man Simone
         Unit 511, 5/F
         1 Silvercord, 30 Canton Road
         Tsim Sha Tsui, Kowloon
         Hong Kong


CENTRAL WATERFRONT: Members' Final Meeting Set for Oct. 18
----------------------------------------------------------
Members of Central Waterfront Construction Company Limited will
hold their final general meeting on Oct. 18, 2011, at 9:30 a.m.,
at Room 1601, Wing On Centre, at 111 Connaught Road Central, in
Hong Kong.

At the meeting, Sum Kwan Yiu Philip, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


CHEONG SHING: Wong and Tsui Step Down as Liquidators
----------------------------------------------------
Wong Sun Keung and Tsui Mei Yuk Janice stepped down as liquidators
of Cheong Shing Repair & Maintenance Limited on May 16, 2011.


CHIU KONG: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Sept. 7, 2011, to
wind up the operations of Chiu Kong Nam Restaurant Groups Limited.

The company's liquidator is Teresa S W Wong.


COMTECH ENGINEERING: Creditors' Proofs of Debt Due Oct. 17
----------------------------------------------------------
Creditors of Comtech Engineering and Consultant Company Limited,
which is in members' voluntary liquidation, are required to file
their proofs of debt by Oct. 17, 2011, to be included in the
company's dividend distribution.

The company's liquidators are:

         Fung Wing Yuen
         Pang Ho Choi Robin
         Room 1/F, Xiu Ping Commercial Building
         104 Jervois Street
         Sheung Wan, Hong Kong


CREATIVE MODEL: Members' Final Meeting Set for Oct. 17
------------------------------------------------------
Members of Creative Model Limited will hold their final meeting on
Oct. 17, 2011, at 3:00 p.m., at Suite No. A, 11th Floor, Ritz
Plaza, at 122 Austin Road, Tsimshatsui, Kowloon, in Hong Kong.

At the meeting, Sung Mi Yin, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.


DIADORA ASIA: Annual Meetings Set for Sept. 28
----------------------------------------------
Members and creditors of Diadora Asia Pacific Limited will hold
their annual meetings on Sept. 28, 2011, at 3:00 p.m., and 3:30
p.m., respectively at the offices of FTI Consulting, Level 22, The
Center, at 99 Queen's Road Central, Central, in Hong Kong.

At the meeting, Simon Blade, the company's liquidator, will give a
report on the company's wind-up proceedings and property disposal.


DIALIGHT COMPANY: Muk and Middleton Step Down as Liquidators
------------------------------------------------------------
Jacky Chung Wing Muk and Edward Simon Middleton stepped down as
liquidators of Dialight Company Limited on Aug. 8, 2011.


EASTRICH INDUSTRIAL: Lo and Leung Appointed as Liquidators
----------------------------------------------------------
Lo Ka Ying and Leung Ka Lok on Aug. 9, 2011, were appointed as
liquidators of Eastrich Industrial Limited.

The liquidators may be reached at:

         Lo Ka Ying
         Leung Ka Lok
         Room 1307, Tower 1
         Lippo Centre
         89 Queensway, Admiralty
         Kong Kong


ERAWAN COMPANY: Kenny and Shum Appointed as Liquidators
-------------------------------------------------------
Kenny King Ching Tam and Shum Lap Chi on Aug. 29, 2011, were
appointed as liquidators of Erawan Company Limited.

The liquidators may be reached at:

         Kenny King Ching Tam
         Shum Lap Chi
         Room 908, 9/F
         Nan Fung Tower 173
         Des Voeux Road
         Central, Hong Kong


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I N D I A
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ADITYA POLYMERS: CARE Rates INR42cr Long-Term Loan at ''CARE BB+'
-----------------------------------------------------------------
CARE assigns 'CARE BB+' and 'CARE A4+' ratings to the bank
facilities of Aditya Polymers & Chemicals (India) Pvt Ltd.

                                 Amount
   Facilities                 (INR crore)    Ratings
   -----------                -----------    -------
   Long-term/ Short-term Bank    42.00       'CARE BB+'/'CARE A4+'
                   Facilities                 Assigned

Rationale

The ratings of Aditya Polymers and Chemicals (India) Pvt Ltd are
primarily constrained by its very small scale of operations and
weak capital structure. The ratings are further constrained by
high counterparty credit risk with moderately high customer
concentration.  The ratings consider the vast experience of the
promoters in the trading of polymers, being an established agent
for Reliance Industries Ltd and minimal inventory and commodity
price risk. Increase in the scale of operations with improvement
in the overall financial risk profile through the control over
solvency position and measures taken by the company for mitigating
the counterparty credit risk are the key rating sensitivities.

                       About Aditya Polymers

Aditya Polymers & Chemicals India Private Limited was incorporated
on February 10, 2004 at Pune. It is a del credere agent for
Reliance Industries Ltd. and Indian Petrochemicals Corporation
Limited for their Polypropylene (PP), High Density Polyethylene
(HDPE), Low Density Polyethylene (LDPE), PVC resins like products.
APCIPL supplies RIL's products to various  industries such as
automobile, electrical and electronics, packaging and flex banner
printing etc.

During FY10 (refers to April 1 to March 31), APCIPL reported a PAT
of INR1.28 crore on a total operating income of INR8.12 crore as
against a PAT of INR1.05 crore on a turnover of INR8.34 crore
during FY09.


ADLEC SYSTEMS: ICRA Reaffirms '[ICRA]BB+' Rating on INR1cr Loan
---------------------------------------------------------------
ICRA has re-affirmed the long term ratings of '[ICRA]BB+' assigned
earlier to the INR1.00 crore term loan and INR9.00 crore fund
based facilities of Adlec Systems Private Limited. ICRA has also
re-affirmed the short term rating of [ICRA]A4+ assigned earlier to
the INR12.00 crore non-fund based facilities of ASPL. The long
term ratings carry a Stable outlook.

The ratings re-affirmation takes into account the successful
implementation of the proposed capital expenditure that will
enable the company to scale up its operations and improvement in
its working capital intensity mainly supported by reduction in
receivable days. The ratings continue to draw comfort from ASPL's
promoters' track record in the electrical industry, and its
diversified and strong client base. The ratings are, however,
constrained by ASPL's high gearing levels and weakening of debt
coverage indicators as reflected by Total Debt/OPBITDA of 6.13
times and interest coverage of 1.59 times as on March 31, 2011 as
compared to 4.55 times and 2.14 times respectively as on March 31,
2010. Further, the ratings factor in the vulnerability of its
operations to raw material prices and the intensely competitive
nature of the industry. Notwithstanding the completion of the
proposed capex, ability to scale up the operations of the new
facility is yet to be demonstrated by the company. Going forward,
improvement in scale of operations and the financial risk profile
of the company will remain amongst the key rating sensitivity
factors.

                          About Adlec Systems

Formerly known as Advance Electro Control Systems Pvt. Ltd, the
company Adlec Systems Private Limited was established in 1995 by
Mr. Uttam Chand Surana. ASPL is engaged in the manufacture of
industrial electrical and custom built low voltage electrical
switchboards/control panel with its prime manufacturing facilities
located in Delhi. The company receives majority of the orders
either through repeat customer request or through Electrical
Consulting Houses who have approved ASPL as a vendor. Majority of
the customer base of ASPL are institutional clients like DLF,
Hyatt etc.

Recent Results

According to FY11 provisional numbers, ASPL reported a net profit
of INR2.95 crore on an operating income of INR94.12 crore as
compared to a profit of INR2.44 crore on an operating income of
INR97.09 crore in FY10.


BALAR FABRICS: CARE Rates INR10cr Long-Term Loan at 'CARE BB'
-------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of
Balar Fabrics Private Limited.

                                 Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities     10.00      'CARE BB' Assigned

Rating Rationale

The rating is primarily constrained by below average financial
risk profile of Balar Fabrics Private Limited marked by the modest
scale of operations, low profitability margins, high overall
gearing and working-capital intensive nature of operations. The
high degree of fragmentation due to the presence of a large number
of organized and unorganized players resulting into high level of
competition in the fabric processing segment further constrains
the rating. The rating, however, favorably takes into account the
experience of the promoters of BFPL and in-house designing
capabilities as well as established marketing and distribution
network.  BFPL's ability to increase its scale of operations with
improvement in the profitability amidst intense competition along
with efficient management of the working capital is the key rating
sensitivity.

Pali-based, BFPL was incorporated in 1991 by Mr. Achal Chand Balar
and Mr. Sohan Raj Balar. As a part of the family separation in
1998, Mr. Achal Chand Balar has taken over the charge of BFPL.
BFPL is currently engaged in the processing of grey fabric and
manufacturing of synthetic sarees (including designer sarees),
dress material, salwar suits, blouse pieces etc. BFPL also has a
separate division for processing of non printed plain fabric. BFPL
has installed processing capacity of 400 lakh meter per annum
(LMPA) at Pali in Rajasthan and selling its products under the
brand name of 'Balar'.


BST TEXTILE: ICRA Cuts Rating on INR37.8cr Loan to '[ICRA]BB-'
--------------------------------------------------------------
The rating for INR37.8 crore (PY INR23.5 crore) long-term loans
and INR13.5 crore (increased from INR7.8 crore) fund-based
facilities of BST Textile Mills Private Limited has been revised
to '[ICRA]BB-' from LBB  earlier. The outlook on the rating is
stable.

The rating revision takes into account the deterioration in
capital structure and debt coverage indicators on account of
significant debt-funded capital expenditure in FY 2011.
Additionally, profitability in H1, FY 2012 is constrained by the
sharp fall in cotton yarn prices and presence of high-cost
inventory on its books as on March-11 end and procured
subsequently in April, 2011. Increasing cost of funds could
further add pressure on the debt metrics. The rating remains
constrained by cyclical nature of the industry and significant
competition in a fragmented industry structure, which limits
pricing flexibility. ICRA also notes that the spinning industry is
exposed to regulatory risks on account of frequent changes in
government policy.

The rating, however, factors in the vast experience of the
promoter in the fields of purchasing, marketing and production,
100% income tax exemption until FY 2012, sales tax and excise
benefits too available and low overhead costs compared to its
peers.

BST Textile Mills Private Limited, incorporated in September 2005,
is primarily engaged in production of cotton yarn. BST is promoted
by Mr Mukesh Tyagi and Ms Sangeeta Tyagi. BST has spinning
facilities located in Uttrakhand with aggregate installed capacity
increased to 26,784 spindles in FY 2011from 14,400 spindles
earlier. The company produces cotton yarn in average counts
between 10 and 20s. The company produces value added slub yarns
and 2 ply yarns in addition to hosiery and open-ended yarn for
denims. Although the company was established in 2005, the company
commenced commercial production from July 12, 2007 after its
manufacturing facilities at Rudrapur, Uttarakhand became
operational.

Recent results:

As per the audited FY 2011 numbers, company reported a profit
after tax of INR1.6 crore (over INR3.4 crore in FY 2010) over an
operating income of INR113.1 crore (over INR47.6 crore in
FY 2010).


CONROS STEELS: ICRA Cuts Rating on INR3.12cr Loan to '[ICRA]D'
--------------------------------------------------------------
ICRA has revised downwards the long-term rating of the INR3.12
crore term loan and the INR33.04 crore fund-based bank facilities
of Conros Steels Private Limited to '[ICRA]D' from LB.  ICRA has
also revised the short-term rating of the INR101.45 crore non-fund
based bank facilities of CSPL to [ICRA]D from A4. The revision of
the ratings take into account the continuing delays in honouring
the company's debt service obligations.

Incorporated in 2005, CSPL has been engaged in the business of
manufacturing black and galvanized ERW steel tubes and pipes of
diameters ranging from 1/2" to 6" and MS Flat Bars. CSPL is the
flagship unit of the Conros group and has its manufacturing
facility at Khopoli in the Raigad district near Mumbai. The
Khopoli unit of CSPL has a total installed capacity of 80,000 MT
per annum for black and galvanised ERW steel pipes and 80,000 MT
per annum for MS flat bars. CSPL is undertaking a capacity
expansion programme in current financial year at an estimated cost
of INR100 crore, which would increase its pipe making and
galvanising capacities by 120,000 MTPA and 50,000 MTPA
respectively.

Recent Results

In 2009-10, CSPL reported a profit after tax (PAT) of INR10.1
crore on the back of net sales of INR451.3 crore. As per the half
yearly results for 2010-11 (unaudited), CSPL reported a profit
before tax (PBT) of INR12.2 crore on the back of net sales of
INR275.8 crore.


ELTEL ENGINEERS: ICRA Places '[ICRA] BB-' Rating on INR16.5cr Loan
------------------------------------------------------------------
ICRA has assigned '[ICRA] BB-' and '[ICRA] A4' ratings to the
INR16.5 crore bank limits of Eltel Engineers.

The assigned ratings take comfort from the experience and
expertise of the company in the region backed by the long standing
track record in project execution of the firm as an electrical
contractor. The firm has been operating since 1990, in Satna and
its nearby areas located in the state of Madhya Pradesh; The scope
of the projects execution includes design, manufacture, pre-
dispatch, inspection & testing, despatch, supply, transportation,
insurance, receipt, storage, erection, testing and commissioning
of materials for construction of new transmission lines on total
turnkey basis for the state electricity distribution entity Madhya
Pradesh Poorv Kshetra Vidyut Vitran Company Limited (MPPKVVCL).
The ratings also draw support from comfortable financial profile
for the firm, which is characterized by high profitability
reflected from return on capital employed of over 30% and moderate
operating margins in excess of 7% despite accounting for raw
material purchase, which forms bulk of the work order, in its own
costs over the last three years.

However the ratings are constrained by the company's modest scale
of operations as it is currently executing only three projects and
is largely dependent on a single work order which constitute over
87% of the pending order book for the firm. Furthermore high
client and geographical concentration observed in the order-book
for the firm exposes it to greater execution risks. Additionally
since the firm is required to provide performance guarantees
against its projects the resultant contingent liability stands at
a relatively high level in comparison to its net worth. Moreover
ICRA has also noted the inherent risks in a partnership structure
of operations for the firm which may not ensure optimum
monitoring, governance and financial discipline.

                        About Eltel Engineers

Eltel Engineers, a partnership firm in operations since 1990, is
engaged in the work of electrical infrastructure supply, erection
and installation on turnkey basis. The firm has catered to
customers such as MP housing board, MP irrigation Department,
Birla Corporation, Jai Prakash Associates, Prism Cements Limited,
Universal Cables Limited and NTPC in the past.

Recent Result

For the twelve months period ending March 31, 2011, Eltel
Engineers reported a provisional profit after tax (PAT) of
INR1.06 Crore on revenues of INR21.52 Crore as against a PAT of
INR0.78 Crore on revenues of INR12.35 Crore for the twelve months
period ending March 31, 2010.


GANGAKHED SUGARS: Fitch Affirms Long-Term Rating at 'BB-(ind)'
--------------------------------------------------------------
Fitch Ratings has affirmed India-based Gangakhed Sugars and Energy
Ltd's National Long-Term rating at 'Fitch BB-(ind)'.  The Outlook
is Stable.

The affirmation reflects successful execution of GSEL's integrated
cane processing plant since October 2010.  The ratings continue to
factor in locational advantages (Maharashtra) such as high
recoveries, low competition and few cane dispute issues.  The
ratings are however constrained by GSEL's small scale of
operations as well as the cyclicality and regulated nature of
the sugar industry.

For financial year ended March 2011 (15 months provisional
numbers), the company's revenue was INR1,147.3 million, EBITDA was
INR569.1 million, EBIDTA margin was 49.6%, and net financial
leverage (total adjusted net debt/ operating EBITDAR) was 8.5x.
Its total debt was INR5170.2 million, comprising INR2,884.5
million long-term loans, INR1,066.2 million working capital loan
and INR1,219.5 million other loans.  Fitch expects working capital
debt to always remain on the higher side mainly due to high
inventory -- an outcome of the seasonality associated with the
sugar industry.

Negative rating action may result from GSEL's lower-than-expected
revenues and margins translating into net financial leverage of
over 5x on a sustained basis.  Conversely, an improvement in the
company's financial profile resulting in net financial leverage of
below 4.0x on a sustained basis may result in positive rating
action.

Incorporated in September 2007, GSEL's integrated cane processing
plant comprises a 6,000 tonnes crushed per day sugar plant, a 60
kilo liters per day distillery plant and a 30 megawatt co-
generation plant.  The company started commercial operation for
the sugar, co-generation and distillery plants from December 2009,
January 2010 and October 2010, respectively.

Fitch has also taken the following actions on GSEL's bank loans:

  -- Outstanding INR2,884.2 million team loan (enhanced from
     INR3,043.1 million): 'Fitch BB-(ind)'

  -- INR1,500 million cash credit loan (enhanced from INR512.5
     million): 'Fitch BB-(ind)'

  -- INR760 million non-funded based limits: assigned 'Fitch
     A4+(ind)'


G. N. PET: CARE Rates INR10.9cr Long-Term Loan at 'CARE BB'
-----------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of
G. N. Pet.
                                 Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities      10.90     'CARE BB' Assigned

Rationale

The rating assigned by CARE is based on the capital deployed by
the proprietor 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 proprietor in addition to
the financial performance and other relevant factors. The rating
is mainly constrained due to the modest scale of operations of G.
N. Pet along-with its presence in a fragmented Polyethylene
Terephthalate (PET) bottle manufacturing industry and its limited
geographical reach. The rating is further constrained due to
volatility associated with the raw material prices, supplier
concentration risk, its constitution as a proprietorship firm with
modest financial risk profile and its exposure by way of a
guarantee extended to its group company which is setting up a
greenfield hotel project. The above constraints far offset the
benefits derived from the established marketing network and the
clientele base of its group company Garib Nawaz Polymers Pvt. Ltd.
(rated 'CARE BB+'), which is also engaged in the same business.
GNPT's ability to increase the scale of its operations while
managing fluctuations in the raw material prices will be the key
rating sensitivity.

GNPT was constituted as a proprietorship firm in May 2009 by
Mr. Sunil Bansal. It is engaged in the manufacturing of PET
bottles with an installed capacity of 1,600 Metric Tonnes Per
Annum (MTPA) as on March 31, 2011 at its manufacturing facility
located at Baddi in Himachal Pradesh. GNPT established its
production facility at a total cost of INR6.76 crore in May 2010.
However, because of the delay in the stabilization of operations,
the plant started operating at optimum efficiency from November
2010 onwards. GNPT mainly caters to the bottling requirements of
the pharmaceutical industry. It is a part of the Garib Nawaz Group
of Haryana, which already has a presence in this industry through
its other group company, GNPPL, which commenced manufacturing
activity in January 2008. The group also has interests in
businesses like operating a petrol pump as well as the
hospitality industry.


GOEL EXIM: ICRA Rates INR50cr Capital Limits at '[ICRA]BB-'
-----------------------------------------------------------
A long-term rating of '[ICRA]BB-' has been assigned to the INR50.0
Crore, fund-based working capital limits of Goel Exim India
Private Limited. The outlook on the rating is 'stable'.

The rating is constrained by the highly competitive and fragmented
nature of the industry, resulting in low profitability margins;
high geographical and customer concentration risk; susceptibility
of profitability to adverse movement in gold prices; moderately
high financial risk profile, which is characterized by low return
indicators; high gearing levels and low coverage indicators; and
tight liquidity position, as reflected in the high utilization of
working capital limits. Nevertheless, the rating favorably factors
in the established presence of promoters and the company in
trading and distribution of gold and gold jewellery and favorable
demand growth prospects in India. ICRA also notes that the major
part of the debt for GEIPL is in the form of working capital. In
ICRA's view, the key rating sensitivity would be any significant
increase in working capital intensity, resulting in deterioration
of profitability and debt coverage metrics. Company Profile Goel
Exim India Private Limited is a manufacturer, wholesaler and
trader of gold, diamonds and silver ornaments/jewellery. GEIPL has
a presence largely in gold jewellery, which contributes to more
than 90% of revenues.

                          About Goel Exim

The company was incorporated in the year 2004. The company
procures gold under the Metal Loan Scheme from Bank of Nova
Scotia. GEIPL's customers are primarily wholesalers and retailers
based in New Delhi. GEIPL has acquired two partnership firms,
namely, Shree Ganpati Impex and Bhavya Gold with effect from 15
March 2010. The previous directors of the firms, Mr. Ashok Goel
and Mr. Pravin Gupta, continued to be the directors of Goel Exim
(India) Private Ltd. The partners of both the firms are
shareholders of the company.

Recent Results

Goel Exim India Private Limited reported a turnover of
INR450.55 Crore and a net profit of INR3.40 Crore during financial
year 2010-11. The company had reported a turnover of
INR121.17 Crore and a net profit of INR0.38 Crore during 2009-10.


GURVIR MOTORS: ICRA Assigns '[ICRA]BB+' Rating to INR5cr Bank Loan
------------------------------------------------------------------
ICRA has assigned '[ICRA]BB+' ratings to the INR5.0 Crore bank
facilities of Gurvir Motors Private Limited.

The assigned ratings are constrained by the modest scale of
operations and thin profit margins of GMPL, which are inherent in
the automotive dealership business; and limited financial
flexibility on account of weak capital structure and stretched
cash flow position. The company has an adverse capital structure
with adjusted gearing levels of 3.3 times (as on February 28,
2011), although most of the debt pertains to working capital
borrowings. The ratings, nevertheless, factor in the business
position of GMPL as the sole dealer of Force Motors Limited (FML)
in Ludhiana district and experienced promoters. The ability of
GMPL to register growth in its operating revenues amid the
increasing competitive intensity from other OEM's in its area of
operations as well as manage its working capital intensity would
remain key rating sensitivities going forward.

                         About Gurvir Motors

Gurvir Motors Private Limited is an authorised dealer of Force
Motors' Commercial Vehicles (CV) and Utility Vehicles (UV) in
Ludhiana and its territory for the dealership comprises of
neighbouring districts of Firozpur, Moga etc. The company deals in
sale of new cars, repair and servicing of cars. The company was
incorporated by Sh. Kuldeep Singh Bhattal in 2003. Sh. Aditya Soni
took over the Company as its Managing director in 2006 and has
since then looked after the day to day business, accounts &
finances of the company. GMPL is a closely held company with Sh.
Aditya Soni being the largest shareholder with ~92% of the shares.
The rest of the shareholding is distributed between other close
family members.

Recent Results

In 2010-11 GMPL recorded an operating income of INR20.3 crore. The
company's operating profit before depreciation, interest and tax
stood at INR0.4 crore for 11 months FY11. The company recorded a
profit of INR0.04 crore (11 months FY11) at net profit level.


KUMARAGIRI ELECTRONICS: ICRA Reaffirms '[ICRA]B' Term Loan Rating
-----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B' to the
INR5.76 crore term loan facilities and the INR3.50 crore fund
based facilities of Kumaragiri Electronics Limited. ICRA has also
reaffirmed the short-term rating of [ICRA]A4 to the INR4.00 crore
non-fund based facilities of KEL.

The re-affirmation of ratings consider the small scale of KEL's
operations which is likely to restrict scale economies/financial
flexibility and the intense competition in a highly fragmented
industry structure which is likely to restrict pricing
flexibility. The Company's financial profile is characterized by
stretched capital structure/coverage indicators and thin accruals.
The ratings also consider the experience of promoters in the
textile industry for over three decades. The downturn in yarn
demand and realizations during the current fiscal are likely to
have an adverse impact on accruals in the near term.

Incorporated in 1986, KEL is presently engaged in producing cotton
yarn. Previously, the Company was engaged in the manufacture of
aluminium metalized di-electric polypropylene film. In 1995, the
business became redundant due to advancement in technology.
Consequently, the Company decided to diversify into textiles. The
Company presently has an installed capacity of 28,000 spindles.
KEL is closely held by the promoter and their relatives / friends.
The Company has manufacturing facilities located at Dharmapuri,
Tamil Nadu. KEL installed a 600 KW windmill near Panagudi in Tamil
Nadu for captive power consumption in the year 2004-05.

Recent Results

KEL reported net loss of INR0.4 crore on operating income of
INR40.9 crore during 2010-11, against net profit of INR2.1 crore
on operating income of INR30.6 crore during 2009-10.


KUMARAGIRI TEXTILES: ICRA Reaffirms '[ICRA]B' Term Loan Rating
--------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B' outstanding
on the INR8.03 crore term loan facilities and the INR4.00 crore
fund based facilities of Kumaragiri Textiles Limited. ICRA has
also re-affirmed the short-term rating of '[ICRA]A4' outstanding
on the INR4.26 crore non-fund based facilities of KTL.

The re-affirmation of ratings consider the small scale of KTL's
operations which is likely to restrict scale economies/financial
flexibility and the intense competition in a highly fragmented
industry structure which is likely to restrict pricing
flexibility. The Company's financial profile is characterized by
stretched capital structure and tight liquidity. The ratings also
consider the experience of promoters in the textile industry for
over three decades. The downturn in yarn demand and realizations
during the current fiscal are likely to have an adverse impact on
accruals in the near term.

                         About Kumaragiri Textiles

KTL is primarily engaged in the production of cotton yarn.
Incorporated in 1980, the Company has an installed capacity of
28,224 spindles and 600 rotors. The manufacturing facility is
located at Dharmapuri, Tamil Nadu. KTL is closely held by the
promoter and their relatives/friends. KTL sells mainly in the
domestic market through agents. KTL installed an 800 KW windmill
in Tamil Nadu for captive power consumption during 2006-07.

Recent Results

KTL reported net profit of INR2.4 crore on operating income of
INR41.2 crore during 2010-11, against net profit of INR0.5 crore
on operating income of INR30.3 crore for 2009-10.


R.C. INDUSTRIES: CARE Assigns 'CARE BB-' Rating to INR2.69cr Loan
-----------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of M/S R.C. Industries.

                                 Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities     2.69       'CARE BB-' Assigned
   Short-term Bank Facilities    4.50       'CARE A4' Assigned

Rating Rationale

The ratings of M/s R.C. Industries are constrained by the small
scale of operations, modest financial risk profile marked by very
thin net profit margin and high overall gearing, its presence
in the highly fragmented industry and its exposure to fluctuations
in the prices of sesame seeds and foreign exchange rates. The
ratings are further constrained by RCI's constitution as a
partnership firm restricting its financial flexibility. The
ratings however, draw strength from the experience of the partners
in the existing line of business, established customer
relationships and favorable demand prospect of the sesame seeds in
the export markets.  Increase in the scale of operations and
improvement in the financial risk profile along-with efficient
management of the raw material price and foreign exchange rate
fluctuations are the key rating sensitivities.

Agra-based (Uttar Pradesh) RCI was formed in 1996 by Mr. Jeewat
Ram and his two sons Mr. Dilip Kumar and Mr. Vipin Kumar as a
partnership firm. RCI is engaged in the business of processing and
selling sesame seeds. The firm has two processing units located in
Agra and Mathura. RCI carries out the process of hulling (removal
of the outer layer), sorting and polishing of the sesame seeds
and sells such seeds domestically and internationally. These
sesame seeds are used to add texture, taste and aesthetic value to
a variety of bakery products.

During FY10 (refers to April 1 to March 31), RCI reported net
profit of INR0.01 crore on a total operating income of
INR15.86 crore compared to net profit of INR0.01 crore on a total
operating income of INR11.26 crore in FY09.


RGTL INDUSTRIES: ICRA Assigns '[ICRA]BB' Rating to INR31.9cr Loan
-----------------------------------------------------------------
ICRA has assigned the long term rating of to '[ICRA]BB' to
enhanced amount of INR31.90 crore (earlier INR25.75 crore) term
loans and INR20.00 crore (earlier INR10.00 crore) fund based
facilities of RGTL Industries Limited. The outlook on the long-
term rating is 'stable'. ICRA has assigned short term rating of
[ICRA]A4 to the enhanced amount of INR4.00 crore (earlier
INR3.00 crore) bank lines of RGTL.

The ratings take into account robust growth in RRSML's turnover
and internal accrual generation following the stabilization of
plant operations in FY2011. Further, the ratings continue to
factor in the RRSML's experienced management; established brand
image of 'Rathi' in the steel bars industry in North India; and
the accessibility of the company to Rathi group's wide-spread
distribution network. However, the ratings remain constrained by
the intensely competitive nature of the industry; and the
susceptibility of the business to adverse movements in raw
material prices. Further, the existing debt levels and the recent
debt funded capital expenditure has kept the gearing at relatively
high level and led to moderate debt protection metrics.

                        About RGTL Industries

RGTL Industries Limited (RGTL, erstwhile Rathi Rajasthan Steel
Mills Limited) is a public limited company engaged in the
manufacturing of reinforcing Cold twisted deformed (CTD)/ Thermo
Mechanically Treated (TMT) bars. RGTL was promoted in 2004 by Mr.
Raj Kumar Rathi and became a 100% subsidiary of Rathi Graphic
Technologies Limited in 2007-08. Rathi Graphic Technologies
Limited is a public limited listed company engaged in
manufacturing toners and developers which are used in photocopier
machines, laser and ink-jet printers. The promoter Mr. Raj Kumar
Rathi belongs to the Rathi family which has a long track record
and established name in manufacturing of CTD/TMT bars. RGTL has
its manufacturing unit in Bhiwadi (Rajasthan) with rolling mill
capacity of 100,000 tonnes per annum (TPA).

For FY2011, the company earned a profit after tax (PAT) of
INR4.4 crore on operating income of INR266.0 crore as against PAT
of INR1.1 crore on operating income of INR117.7 crore in FY2010.


RITEMED PHARMA: ICRA Reaffirms '[ICRA]BB' Rating on INR12.6cr Loan
------------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB' for the
INR12.6 crore fund based facilities and INR8.4 crore term loans of
Ritemed Pharma Retail Private Limited. The outlook on the assigned
rating is Stable.

The reaffirmation of ratings takes into account the established
brand "Medplus" under which the company operates its retail
pharmacy stores, professional management team with support from an
experienced board of directors (of group company Medplus) and
strengths arising out of the presence of the group companies
across a wide spectrum of manufacturing and sale of pharmaceutical
(pharma) and non-pharma products. These factors are expected to
result in turnover growth. The rating action also takes into
account the financial support from parent in terms of infusion of
equity funds (in the form of share application money of
INR10 crores) in FY 2011 which has partly offset losses incurred
in the business.

However, the rating is constrained by the relatively nascent stage
of the company's operations and faced paced expansion which has
resulted in low profitability and negative cash flow generation
from the business. Given that the company is likely to remain in a
high growth expansion mode in FY 2012, it is likely to remain cash
consumptive which coupled with high working capital intensity of
operations is expected to put pressure on the company's capital
structure in the medium term.

Ritemed Pharma Retail Private Limited was promoted by Mr. Madhukar
Reddy in June 2009. It is engaged in retail distribution of Pharma
and non-pharma products through its network of 230 stores located
in Andhra Pradesh, Tamilnadu, and Karnataka.

Recent Results

As per the provisional results shared by the company, Ritemed has
achieved a PAT of negative INR5.46 crore on an operating income of
INR25.03 crores in FY 2011.


ROSELABS BIOSCIENCE: ICRA Puts '[ICRA]B+' Rating on INR90cr Loan
----------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR90.00 crore term
loan of Roselabs Bioscience Private Limited.

The assigned ratings are constrained by the absence of track
record of operations of the company in pre-filled syringes
manufacturing, since the company is still in the project phase;
the sensitivity of project metrics and future cash flows to the
establishment of the company's products in the domestic market
against those imported from European suppliers. The ratings also
take into account the project execution risks with the project
already behind schedule by more than six months which is likely to
impact the debt servicing capability of the company. The timely
completion of the project along with scaling up of operations at
desired levels will be critical to business risk profile of the
company going forward.

The ratings however take comfort from the favorable demand supply
gap for pre-filled syringes (PFS) in the domestic market and the
healthy growth outlook for the PFS segment given the advantages
over traditional syringes and current low levels of penetration.
The ratings also favorably consider the fact that RBPL will get
access to established marketing and distribution network of the
group company, Roselabs Limited, which is currently involved in
marketing and distribution of pharmaceutical products in Gujarat
and north eastern states.

                      About Roselabs Bioscience

Incorporated in 2010, Roselabs Bioscience Private Limited is
promoted by Mr. Pawan Kumar Agarwal and Mr. Zameer Agarwal, and is
closely held by the promoters and family members. The company is
currently setting up a composite plant for to manufacturing
multiple types of pre-filled syringes and for filling
formulations. The product portfolio of RBPL includes glass pre-
filled syringe, plastic pre-filled syringe, dual chamber pre-
filled syringe and multi-dose cartridge & drug delivery system.
RBPL's manufacturing facility being constructed at Bavala near
Ahmedabad; the construction work on the same was initiated in
May 2010 and the company expects to commence commercial production
from May 2012.


SAINEST TUBES: ICRA Assigns '[ICRA]BB+' Rating to INR23.7cr Loan
----------------------------------------------------------------
ICRA has assigned an [ICRA]BB+ rating to the INR23.70 crore
long term fund based facility and [ICRA]A4+ rating to
INR22.67 crore short term non fund based bank facilities of
Sainest Tubes Pvt. Ltd. The outlook on the long term rating is
'Stable'.

The assigned ratings are constrained by the weak financial risk
profile, reflected by highly working capital intensive operations,
high gearing levels on account of recent debt funded capital
expansion and weak coverage indicators. The ratings are further
constrained by relatively modest scale of operations limiting any
scale economies. The ratings also take into account the
vulnerability of profitability and cash flows to raw material
price fluctuations and foreign exchange risks.

The ratings however favorably factor in the experience of the
promoters and track record of the company in the business, the
steady growth in operating income supported by capacity
augmentation, established and diversified customer base resulting
in low customer concentration risk. The rating also take into
account the positive demand outlook for the steel and pipe
industry due to favorable outlook for key end user industries like
oil and gas, automobile and other.

                        About Sainest Tubes

Sainest Tubes Private Limited was incorporated in December 1988
and commenced commercial production of Precision Seamless Carbon
Steel Tubes and Pipes in 1993. These tubes are manufactured from
mother tubes and find applications in various oil refineries,
petrochemical industries, heat exchangers and automobile
ancillaries. The company has its production facility located at
Chatral, 40 kms. away from Ahmedabad. It is an ISO 9001: 2000
Quality Management System Certified organisation. The company's
products are approved by various inspection agencies viz. Lloyd's
Register, Bureau VERITAS, Engineers India Limited, Indian Boiler
Registrations and many others.


S J CONTRACTS: ICRA Assigns '[ICRA]BB+' Rating to INR5cr LT Loan
----------------------------------------------------------------
ICRA has assigned an '[ICRA]BB+' rating to the INR5.00 crore long
term fund based facilities of S J Contracts Private Limited.  The
long term rating has been assigned stable outlook. ICRA has also
assigned an '[ICRA]A4+' rating to the INR22.00 crore short term
non fund based facilities SJCPL.

The rating takes into account the long track record of the
promoters in the construction sector and well established
relations with real estate developers in Pune which has resulted
in several repeat orders.  The rating also factors in the
significant increase in the company's operating income which grew
at a CAGR of 79% during FY09-FY11, sizeable order book as on
July 31, 2011, which provides visibility to revenues going forward
and a low gearing of 0.9x times as on March 31, 2011.  However,
the rating is constrained by the company's modest scale of
operations, high geographical and client concentration risk with
the top 6 clients accounting for -85% of the current unexecuted
order book. Going forward, the company's ability to ensure timely
tie-up of additional working capital facilities to sustain the
growth in operations remains critical.

                        About S J Contracts

S J Contracts Private Limited was incorporated in 2008 by Mr Suhas
Jangle. Mr. Suhas Jangle, the managing director of SJCPL, started
S J Constructions, a proprietary concern in 1988. Over the past
two decades SJC has completed over 120 projects. The scope of work
of SJC and SJCPL spans across Earthwork, Reinforced Cement
Concrete (RCC), Structural Steel Fabrication & Erection, Masonry
and Plastering. Gradually, SJC has stopped bidding for new
contracts and its turnover has reduced to -INR27 crore in FY10
from -INR62 crore in FY09; going forward, SJCPL will be the only
operating entity of the promoters.


SRI SAI SINDHU: CARE Assigns 'CARE D' Rating to INR47.5cr Loan
--------------------------------------------------------------
CARE assigns 'CARE D' rating to the bank facilities of
Sri Sai Sindhu Industries Ltd.

                                 Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities     47.50      CARE D Assigned

Rating Rationale

The ratings take into account the strain on the liquidity position
of Sri Sai Sindhu Industries Ltd. and consequent delays in
servicing of debt obligations.

Sri Sai Sindhu Industries Limited (formerly known as Sai Sindhu
Sponge Iron P Ltd.) was incorporated in July 2003 as a private
limited company by Mr. R Veera Reddy and his associates and was
converted to public limited company in June 2008. The company
established the sponge iron manufacturing unit at Tadipatri,
Anantapur Dist. Andhra Pradesh with 100 tons per day (TPD)
capacity.  The total capacity for the sponge iron was increased to
175 TPD by setting up of additional kiln with a capacity of 75TPD.
The second kiln was commissioned since May 2009. Further, the
company set up a captive power plant with an installed capacity of
8MW, which is operational from November 2010.

On a total income of INR38 crore, SSSIL earned a PAT of INR2 crore
in FY11.


SRI SHARDHA: ICRA Places '[ICRA]B+' Rating to INR5cr Limits
-----------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR5.00 crore fund
based limits of Sri Shardha Timbers. ICRA has also assigned an
'[ICRA]A4' rating to the INR10.00 crore non fund based limits of
SST.

The ratings consider the significant experience of the promoters
in the timber trading business and the firm's established
relationship with its suppliers.  The ratings factor in the small
scale of operations restricting economies of scale, competitive
pressure due to low entry barriers, and the risks associated with
the availability of timber, which to an extent is dependent on the
trade regulations prevailing in the supplying market. The ratings
are also tempered by the high working capital intensity and low
profitability with the margins vulnerable to volatility in timber
prices and fluctuation in exchange rates.

Sharadha Timbers is a proprietorship firm owned by Mr. Narashia
Manji Patel. The entity was established in the year 2002, and is
in the business of sawing and trading of timber, mainly imported
wood. Located at Pondicherry, the entity imports various types of
timber from Myanmar, Indonesia, Malaysia, Papua New Guinea, South
America and Africa and saws them at its saw mill site as per the
requirements of the customers. The types of timber that are
imported by the firm are Teak, Padouk, Kwila and Pyinkado. SST's
customers include dealers, wholesalers and retailers. The entity
also has offices outside India, which act as timber procurement
arms thus avoiding middlemen during the timber procurement
process.

Recent Results

For the fiscal 2010-11, SST's operating income and profits (before
taxes) stood at INR19.67 crore and INR0.35 crore respectively as
against an operating income of INR19.41 crore and profit after tax
of INR0.34 crore during 2009-10.


TEXTRADE INT'L: ICRA Assigns '[ICRA]BB-' Rating to INR16.93cr Loan
------------------------------------------------------------------
ICRA has assigned an [ICRA]BB- has been assigned to the
INR16.93 crore term loans of Textrade International Limited. The
outlook on long term ratings is stable. An [ICRA]A4 rating has
also been assigned to the INR64.94 crore short term fund based and
INR18.13 crore short term non fund- based facilities of the
company.

The ratings factor in the credentials of being approved supplier
of international retailers and the vast experience of the
promoters in the textile industry. There has been an improvement
in profitability in the last three years and the company's efforts
in passing on the increase in raw material costs to customers and
entering into hedging contracts with suppliers have favorably
impacted its operating margin and net margins. The ratings are,
however, constrained by stretched financial profile on account of
the high working capital intensity of the business and strained
debt and interest coverage indicators and its high dependence on
the top customer for revenues (60%) which could affect the
sustainability of order book. Further if the company decides to
advance the debt funded acquisition to FY 2012 then is likely to
put additional pressure on the capital structure. The ratings also
take into account the outlook in the key developed markets of US
and Europe remains uncertain and its impact on textiles exporting
firms like Textrade.

                   About Textrade International

Incorporated as a textile trading partnership firm in 1984,
Textrade was converted into a private limited company in
June 2004. In May 2007, the company's legal status was changed
from private limited to public limited. At the present day
Textrade is a closely held public limited company with Doshi
family (promoters) holding 82.6% of shares with balance being held
by Sonata Investments Limited an investment arm of the Reliance
Anil Dhirubhai Ambani Group.  Textrade International Ltd.
primarily concentrates on the home textiles market in India, US
and the EU. Sub segments of the company include lounge textiles,
bedroom textiles, bathroom textiles and kitchen and table linen.
Besides the domestic market, the company sells its products across
geographies like US, UK, France, Germany, Canada, Sweden,
Australia, New Zealand and Dubai.

Recent Results

As per the audited results for FY 2011, Textrade reported a net
profit of INR8.71 crores on an operating income of INR120 crores
as compared to a net profit of INR3.25 crores on an operating
income of INR91.61 crores in FY 2010.


=========
J A P A N
=========


L-JAC FIVE: S&P Lowers Ratings on 3 Classes of Certs. to 'D'
------------------------------------------------------------
Standard & Poor's Ratings Services lowered to 'D (sf)' from 'CC
(sf)' its ratings on classes E-2 to G-2 issued under the L-JAC
Five Trust Beneficial Interest transaction.

"Collection activities relating to one of the transaction's
underlying loans (the loan originally represented about 16% of the
initial issuance amount of the trust certificates) have been
completed, and as a result, the loan has been impaired. We
downgraded classes E-2 to G-2 because we have confirmed that the
remaining principal on classes E-2 to G-2 has been written off,"
S&P stated.

Of the effectively 13 loans that initially backed the trust
certificates, seven loans remain (the seven loans originally
represented about 40% of the initial issuance amount of the trust
certificates).

L-JAC Five is a multiborrower commercial mortgage-backed
securities (CMBS) transaction. The trust certificates were
originally secured by 13 loans, and the loans were originally
backed by 81 real estate properties and real estate beneficial
interests. Premier Asset Management Co. acts as the servicer for
this transaction.

"The ratings reflect our opinion on the likelihood of the full
payment of interest and the ultimate payment of principal on the
class E-2 to G-2 trust certificates by the transaction's legal
final maturity date in August 2015," S&P stated.

Ratings Lowered

L-JAC Five Trust Beneficial Interest
JPY63.63 billion Floating-rate trust certificates due August 2015
Class   To       From     Initial issue amount  Coupon type
E-2     D (sf)   CC (sf)  JPY0.8 bil.             Floating rate
F-2     D (sf)   CC (sf)  JPY0.58 bil.            Floating rate
G-2     D (sf)   CC (sf)  JPY0.4 bil.             Floating rate


TRUST FONTANA: Moody's Puts Ba2 Rating on Cl. D Trust Certificates
------------------------------------------------------------------
Moody's Japan K.K. has assigned definitive ratings to Trust
Fontana, totaling JPY58.26 billion, backed by residential mortgage
loans.

The ratings address the expected loss posed to investors by the
legal final maturity date. The structure allows for timely
payments of dividend (in scheduled amounts, on scheduled payment
dates) and ultimate repayment of principal by the legal final
maturity date for the Class A1 and A2 Trust Certificates. It also
allows for the full payment of dividend and ultimate repayment of
principal by the legal final maturity date for the Class B through
D Trust Certificates.

The complete rating actions are:

Transaction Name: Trust Fontana

Class, Issue Amount, Scheduled Dividend Rate, Payment Frequency,
Rating

Class A1 Trust Certificates, JPY31.2 billion, Fixed, Monthly, Aaa
(sf)

Class A2 Trust Certificates, JPY24.0 billion, Fixed, Monthly, Aaa
(sf)

Class B Trust Certificates, JPY1.92 billion, Fixed, Monthly, Aa2
(sf)

Class C Trust Certificates, JPY0.54 billion, Fixed, Monthly, A2
(sf)

Class D Trust Certificates, JPY0.60 billion, Fixed, Monthly, Ba2
(sf)

Credit Enhancement: The senior/subordinated structure and excess
spreads available.

Subordination:

Class A1: Approx. 48.1%

Class A2: Approx. 8.2%

Class B: Approx. 5.0%

Class C: Approx. 4.1%

Class D: Approx. 3.1%

* The formula used to calculate the Subordination in place for
this transaction is

Subordination = A / B, where A equals the total principal amount
of the Trust Certificates subordinated to the subject Trust
Certificates and B equals the initial outstanding balance of the
residential mortgage loan pool.

Entrustment Date: September 12, 2011

Trust Amendment Date: September 20, 2011

Closing Date: September 20, 2011

Final Maturity Date: March 31, 2048

Underlying Asset: Residential mortgage loans

Special Servicer: MU Frontier Servicer Co., Ltd ("MU Frontier
Servicer")

Back-up Servicer: MU Frontier Servicer

Asset Trustee: The Sumitomo Trust and Banking Co. Ltd. ("Sumitomo
Trust Bank")

Arranger: Sumitomo Trust Bank

Rating Rationale

The obligors consist mainly of salaried workers and civil
servants, both with fairly high income. The weighted average loan-
to-value and debt-to-income ratio are relatively low.

Having analyzed both the obligors' attributes and the originator's
historical performance, Moody's estimates a cumulative gross loss
rate of 2.2% in the pool. Given the transaction structure, Moody's
believes that the credit enhancement for each of the Class A1
Trust Certificates through the Class D Trust Certificates is
sufficient to assign the individual ratings for each transaction.

The Seller (Originator/Servicer) entrusted a pool of its
residential mortgage loans, all related rights and cash to the
Asset Trustee for the purpose of the sale of its residential
mortgage loans and all related rights. The Seller received the
Residential Mortgage-Backed Trust Certificates and the Reserve
Trust Certificates.

The Seller sold the Residential Mortgage-Backed Trust Certificates
to the initial investor and retain the Reserve Trust Certificates.

On the initial investor's requests, the Residential Mortgage-
Backed Trust Certificates held by the initial investor was changed
to Class A1 and A2 Trust Certificates ("the Senior Trust
Certificates"), Class B through D Trust Certificates ("the
Mezzanine Trust Certificates") and the Subordinated Trust
Certificates based on the trust amendment agreement entered into
between the Seller and the Asset Trustee on the Trust Amendment
Date.

The initial investor sold the Senior Trust Certificates to the
investors and retained the Mezzanine Trust and Subordinated Trust
Certificates.

Entrustment of the residential mortgage loans was perfected
against third parties via registration pursuant to the Perfection
Law. Notification of entrustment to the obligors of the
receivables will not be made unless certain events occur.

The Seller has established first security interests (mortgages) on
the collateral properties. The Asset Trustee holds the security
interests in accordance with the entrustment of the loans.
Transfer of the ownership of the security interests will be
perfected by registration only when certain events occur.

The transfer of the Residential Mortgage-Backed Trust Certificates
and the Senior Trust Certificates was perfected against relevant
obligors and third parties under Article 94 of Japan's Trust Law.

The Seller acts as Servicer, under the Servicing Agreement with
the Asset Trustee. MU Frontier Servicer has been appointed as the
Special Servicer as well as the Back-up Servicer which can take
over actual servicing operations.

Principal redemption will be made in a sequential manner from
Class A1 Trust Certificates through Class D Trust Certificates.

Interest collections (after paying expenses and dividends) will be
transferred to the Principal Account up to the aggregate amount of
the outstanding balance of defaulted loans and modified loans
(under the Act concerning Temporary Measures to Facilitate
Financing for SMEs, etc.) -- excluding the aggregate amount of
these loans which are repurchased by the Seller (defaulted
trapping mechanism).

If any dividend suspension events occur, the dividends waterfall
to the appropriate Mezzanine and Subordinated Trust Certificates
will be suspended until the Trust Certificates senior to the
subjected Trust Certificates are fully redeemed. Key dividend
suspension events include the accumulated default amount exceeding
the trigger threshold with respect to each of the Mezzanine and
Subordinated Trust Certificates.

If any early amortization events occur, the dividends waterfall to
the Subordinated Trust Certificates will be suspended and the
excess spread will be used to redeem the Senior Trust Certificates
and the Mezzanine Trust Certificates. Key early amortization
events include a servicer replacement event.

In preparation for servicer replacement, liquidity was provided a
cash reserve at closing. This reserve will cover the dividend
payments of the Senior Trust Certificates and the Mezzanine Trust
Certificates as well as trust fees, servicing fees, and so forth.
Set-up fees for a Back-up Servicer and cash reserves for set-off
and commingling risk also was funded.

Moody's conducted an on-site review of the Seller
(Originator/Servicer), focusing on its business franchise as
Originator and its underwriting criteria. Moody's also reviewed
the Seller's operations as servicer and considers it sufficiently
capable of servicing the pool.

Moody's conducted an on-site review with MU Frontier Servicer
(Special Servicer/Back-up Servicer), focusing on its servicing of
healthy loans as well as defaulted loans. Moody's believes MU
Frontier Servicer also has sufficient capabilities to be the
Special Servicer and the Back-up Servicer.

The principal methodology used in this rating was "Updated:
Moody's Approach to Rating RMBS Transactions in Japan" published
on Sept. 30, 2010.

Moody's did not receive or take into account a third-party due
diligence report on the underlying assets or financial instruments
in this transaction.

The V Score for this transaction indicates "Low/Medium"
uncertainty about critical assumptions, in line with the
Low/Medium score for the Japanese RMBS (Conforming) sector.

The V Score reflects: The quality of historical data, disclosure
of information for analysis and the characteristics of the
transaction.

Compared to the typical RMBS, the transaction features a short
data history. However, Moody's may supplement its analysis by
referring to the performance of the historical data as well as by
monitoring the data on existing securitization transactions backed
by residential mortgage receivables in the Japanese RMBS
(Conforming) sector. The detailed, loan level characteristic data
is provided.

Though the Originator doesn't retain the Subordinated Trust
Certificates, the initial investor, which belong to the same
industrial group as the Originator, retain it.

Moody's V Scores provide a relative assessment of the quality of
available credit information and the potential variability around
the various inputs to a rating determination.

The V Score ranks transactions by the potential for significant
rating changes owing to uncertainty around the assumptions due to
data quality, historical performance, the level of disclosure,
transaction complexity, the modeling and the transaction
governance that underlie the ratings. V Scores apply to the entire
transaction, not to individual tranches.

Moody's also ran sensitivity analyses for key parameters for this
transaction. For instance, if the cumulative gross loss rate of
2.2% used in determining the initial rating was changed to 3.3% or
4.4%, the model output for the Class A1 and Class A2 would not
change.

But the model output for the model output for the Class B would
change from Aa2 to Aa2 or to Aa3, the model output for the Class C
would change from A2 to A3 or to Baa1, the model output for the
Class D would change from Ba2 to Ba3 or to B2 (the "parameter
sensitivities").

Parameter Sensitivities are not intended to measure how the rating
of the security might migrate over time; rather they are designed
to provide a quantitative calculation of how the initial rating
might change if key input parameters used in the initial rating
process differed.

The analysis assumes that the deal has not aged, and does not
factor structural features such as sequential payment effect.
Parameter Sensitivities reflect only the ratings impact of each
scenario from a quantitative/model-indicated standpoint.

Qualitative factors are also taken into consideration in the
ratings process, so the actual ratings that would be assigned in
each case could vary from the information presented in the
Parameter Sensitivity analysis.


====================
N E W  Z E A L A N D
====================


AMI INSURANCE: Christchurch Quake Claims Likely at NZ$531 Million
-----------------------------------------------------------------
AMI Insurance said the cost of claims resulting from the
Canterbury earthquakes, over and above the company's available
reinsurance, is likely to be about NZ$531 million, in line with
earlier estimates.

Announcing its results for the year to June 30, 2011, AMI said it
is also providing an additional NZ$229 million risk margin
(contingency sum).  Almost all of the costs relate to the
February 2011 earthquake.

The calculations of the likely cost of claims and a prudent
contingency sum have been provided by an international actuarial
consultancy commissioned by AMI. The calculations take into
account the recent upward revision by the Earthquake Commission of
the number of house claims they expect to receive over their
maximum level of cover.

"These calculations are the best estimates available, but it will
be the middle of next year before the company has reliable
projections based on resolution of claims to that point."

AMI Chairman Kerry Nolan said the calculations of net earthquake
claims and the recommended contingency sum have been included in
the company's annual accounts to June 30, 2011, resulting in an
after-tax loss of NZ$705 million.

AMI has NZ$2.3 billion in assets including NZ$1.2 billion of
available reinsurance receivable, its own cash and investments and
the unpaid NZ$500 million of Crown capital committed to the
company by the Government in April.  The Government agreed to
contribute the capital, if needed, to enable the company to use
its own cash and investment assets of some NZ$400 million to help
meet earthquake claims.

"AMI continues to trade strongly.  We are able to pay all normal
day-to-day and earthquake claims as they are settled," says
Mr. Nolan. "We have effectively set aside NZ$760 million, which
includes a large contingency, to pay earthquake claims as they are
settled over the next few years and have already paid out NZ$80
million."

                        Annual Results

Announcing AMI's annual result for the year ended June 30, 2011,
Mr. Nolan says the company would have made a record profit but for
the impact of various earthquake-related costs during the year,
and the need to make provision for the future payment of
earthquake claims.

Instead, AMI has recorded an after-tax loss of NZ$705 million
compared with an after-tax profit of NZ$33 million in the previous
year.

Gross written premium income of NZ$362 million for the year
compares with NZ$341 million in the previous year.

"Almost all of the loss has been caused by claims related to the
February earthquake, rated as a one in 2500 year event. This was
the most damaging disaster in New Zealand's history and relative
to a country's GDP, the largest ever recorded insurance natural
disaster in the world.

"In making provision in the accounts to June 30, 2011 for future
claims, we believe we have allowed for worst-case scenarios and
added an appropriate contingency sum, but only time will tell what
the final figures will be."

Mr. Nolan says AMI is confident about its trading situation and
expects to show a trading profit in the current financial year.

"In the meantime we are strongly focussed on continuing to run a
major New Zealand insurance company providing secure cover for
almost 500,000 New Zealanders, and we are able to meet all valid
claims."

                Payment of Earthquake-Related Claims

Mr. Nolan says finalizing earthquake related claims is a very
complicated and time-consuming process, as policyholders have a
variety of options. These depend not only on the terms of their
policies, but also on Government decisions being progressively
announced for each "land zone" and the need for AMI to work
closely with the Earthquake Commission, Local Authorities, the
Canterbury Earthquake Recovery Authority and the Government.

"Some properties have had to be assessed more than once, having
been damaged in successive earthquakes. In many cases repairs have
been deferred until there is more confidence that seismic activity
has ceased. There is still considerable uncertainty in Canterbury.

"We estimate just over one-third of claims will be paid out in the
coming year, a similar amount in the June 30, 2013 year and about
20 per cent in the following year. I emphasize that all claims
will be paid as they are settled.  "

AMI has recruited nearly 200 people to join its dedicated
Earthquake Recovery Team which is helping customers with their
earthquake related claims.  AMI has also engaged Arrow
International to help expedite assessments of more than 7000
houses and project manage their repair or rebuild.

                Impact of Earthquakes on Company

Mr. Nolan says the growing impact of the earthquakes on the
company's resources will be felt in both the current financial
year and the following two years year as the payout of claims
gathers pace and the company begins to supplement the available
re-insurance with its own investment assets in the year ending
June 30, 2013.

"For the September 2010 earthquake claims will slightly exceed the
NZ$600 million of reinsurance available for that event. Claims
related to the February earthquake are expected to exceed the
NZ$600 million of re-insurance available by a very considerable
margin.   Immediately after the February earthquake, the company
purchased extra reinsurance of NZ$1 billion. This meant that
claims relating to the June earthquake will be very comfortably
covered by our reinsurance.

"We will have more accurate projections by mid 2012, when most
assessments will have been completed and enough rebuilds will be
in progress to give a reality check on previous estimates of
project management costs and inflation in labor and building
product costs."

                      Recapitalising the Company

AMI has established a Board Committee to oversee the capital
restructuring of AMI by attracting a new investor and has
appointed Goldman Sachs as advisers to help raise new capital.

"Several potential investors have already made approaches and the
Board is very hopeful of a successful outcome. A process will be
adopted which ensures that AMI's ongoing business is ring fenced
from its earthquake liabilities.

"We are grateful for the 'Backstop' Agreement, announced in April,
for the Government to contribute NZ$500 million in capital if
needed," says Mr. Nolan. "Their strong support as we work through
the process of recapitalizing the company has been invaluable and
is contributing greatly to the orderly resolution of the
Canterbury earthquake claims.

"The Crown has already been issued with convertible preference
shares in AMI enabling the company to draw down the NZ$500 million
when it is needed.  The recapitalization process the company is
undertaking is expected to resolve a requirement in the Crown
Support Deed for the company to have a minimum level of capital.

"This Agreement gives us breathing space to seek new capital in a
manner that maximizes the value of the company. We are very
hopeful we will be able to conclude an acceptable transaction."

Outlook

AMI believes the prospects of recapitalizing the company and
strengthening its balance sheet, by attracting a new investor, are
positive.

In the uncertainty following the earthquakes the company says it
has maintained customer numbers, and is continuing to win new
business. While insurance premiums are increasing as a result of
the increased cost of reinsurance, customers understand that this
is inevitable due to recent catastrophic events around the world
including the Canterbury earthquakes, Japan's tsunami, Australian
floods and tornadoes in the United States.

AMI has reinsurance in the current year of up to NZ$1.4 billion
for any major event in New Zealand.

As reported in the Troubled Company Reporter-Asia Pacific on
April 8, 2011, The New Zealand Herald said New Zealand's
government had announced a support package for AMI Insurance that
Finance Minister Bill English acknowledges could top NZ$1 billion
and leave the Crown liable for up to NZ$200 million a year in
ongoing claims.  Interest.co.nz said the government stepped in to
guarantee AMI policy holders if the insurance company had
exhausted its own reserves due to the financial hit caused by the
two Christchurch earthquakes on Sept. 4, 2010, and Feb. 22, 2011.

AMI has since been seeking alternative sources of capital to
replace the government backing, BusinessDay.co.nz says.

                             About AMI

AMI Insurance -- http://www.ami.co.nz/-- is the largest wholly
New Zealand owned fire and general and personal lines insurance
company.  The company has 73 branches, two contact centres and 21
agencies throughout New Zealand, nearly 1,000 staff, and around
500,000 New Zealand customers holding 1.2 million policies.


AMI INSURANCE: May Need NZ$340MM Government Support, English Says
-----------------------------------------------------------------
Radio New Zealand reports that Finance Minister Bill English said
the Government may eventually have to pay nearly NZ$340 million to
support AMI Insurance, which has announced a loss of $705 million
in the year to June.

Radio NZ relates that AMI believes it will not have to draw on the
Government's support package, but Mr. English is not so sure.

According to the report, Mr. English said AMI is only solvent
because of the Government guarantee -- "without that, they would
be a business in pretty serious trouble".

The company does have reinsurance and cash reserves, Mr. English
said, so it could be a couple of years before it has spent all
that on covering earthquake-related claims, according to Radio NZ.

At that point, the Government might have to provide about
NZ$340 million to support it, the report adds.

Mr. English said that money would come from the NZ$5.5 million the
Government set aside in this year's Budget for earthquake recovery
costs, Radio NZ relays.

As reported in the Troubled Company Reporter-Asia Pacific on
April 8, 2011, The New Zealand Herald said New Zealand's
government had announced a support package for AMI Insurance that
Finance Minister Bill English acknowledges could top NZ$1 billion
and leave the Crown liable for up to NZ$200 million a year in
ongoing claims.  Interest.co.nz said the government stepped in to
guarantee AMI policy holders if the insurance company had
exhausted its own reserves due to the financial hit caused by the
two Christchurch earthquakes on Sept. 4, 2010, and Feb. 22, 2011.

AMI has since been seeking alternative sources of capital to
replace the government backing, BusinessDay.co.nz says.

                             About AMI

AMI Insurance -- http://www.ami.co.nz/-- is the largest wholly
New Zealand owned fire and general and personal lines insurance
company.  The company has 73 branches, two contact centres and 21
agencies throughout New Zealand, nearly 1,000 staff, and around
500,000 New Zealand customers holding 1.2 million policies.


BRIDGECORP LTD: Directors Lose Cover for Defence Costs
------------------------------------------------------
BusinessDay.co.nz reports that Bridgecorp Ltd's former directors
may have to follow the lead of fellow director Rod Petricevic and
apply for legal aid to fund their defence in upcoming trials.

BusinessDay.co.nz says the Auckland High Court ruled on Friday
that the former directors of Bridgecorp would not be able to call
upon their NZ$20 million of liability cover to help pay for their
defence costs when fighting criminal charges laid against them by
the Financial Markets Authority.

The judgement applies to the group's former directors Rod
Petricevic, Rob Roest, Eric O'Sullivan, Peter Steigrad, Bruce
Davidson and Gary Irwin, BusinessDay.co.nz relates.

According to the report, Justice Lang, who presided over the case,
said the claim by the Bridgecorp directors was for a sum
significantly greater than the amount of cover available under
QBE's directors' liability policy.

"As a result, QBE is bound to keep the insurance fund intact for
the benefit of the Bridgecorp defendants and any other civil
claimants," the report quotes Justice Lang as saying.

BusinessDay.co.nz adds that Chapman Tripp partner Adam Ross said
the "shock ruling" meant that if the directors didn't have the
personal resources to defend themselves they would be required to
ask for legal aid.

Meanwhile, BusinessDay.co.nz reports that receivers and
liquidators at Bridgecorp have signalled they would make claims
against the former directors for over NZ$450 million of
compensation.

Bell Gully partner Murray Tingey, representing Bridegcorp
receivers, said investors hadn't received any compensation from
the bankruptcy of Petricevic and Roest, the report relays.

"The investors just want to get what is left and make sure it
isn't whittled away," the report quotes Mr. Tingey as saying.

Messrs. Roest and Petricevic and three other directors -- Gary
Urwin, Peter Steigrad and Bruce Davidson -- are accused of
misleading investors in offer documents registered in December
2006, as well as in later advertisements for Bridgecorp secured
debentures and capital notes issued by Bridgecorp Investments.

Messrs. Petricevic and Roest also face separate criminal charges
from the Serious Fraud Office, which are expected to go to trial
next year, BusinessDay.co.nz discloses.

                      About Bridgecorp Ltd

Based in New Zealand, Bridgecorp Ltd. is a property development
and finance company.

Bridgecorp was placed in receivership on July 2, 2007, after
failing to pay principal due to debenture holders.  John Waller
and Colin McCloy, partners at PricewaterhouseCoopers, were
appointed as receivers.  Bridgecorp owes around 14,500 investors,
which liquidators estimate to approximate NZ$500 million.

Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AUD24 million (NZ$27 million).


CRAFAR FARMS: Rich Lister Heads New Bid for 16 Crafar Farms
-----------------------------------------------------------
BusinessDay.co.nz reports that Rich lister Sir Michael Fay is
heading a group of central North Island dairy farmers who have
made an increased NZ$171.5 million offer to receiver Korda Mentha
for all 16 Crafar dairy farms.

BusinessDay.co.nz says the group had previously indicated an
interest in just nine of the farms.  That offer, the report notes,
was rejected by the receiver who has already accepted a NZ$200
million deal with Chinese company Shanghai Pengxin conditional on
Overseas Investment Office approval.

According to BusinessDay.co.nz, Sir Michael said his group is the
only alternative buyer for the central North Island farms and
"following satisfactory due diligence we are ready to go."

"As soon as we have a signed deal with the receivers they can hand
over the keys and we're ready to walk onto the land. Obviously
that's subject to the Overseas Investment Office rejecting the
current Chinese contract," the report quotes Sir Michael as
saying.

Some 4% of the current offer comes from iwi farming interests and
the rest is farmers who already have dairy farming interests in
the region.  They don't need OIO approval to buy the 8,000
hectares, the report notes.

"We'd like to be on the farms before Christmas to get them up to
full production for the new season starting in mid 2012," Sir
Michael said.

According to the report, Shangahi Pengxin applied for OIO consent
on April 14 but is still awaiting a decision some 114 working days
later.  It is about to supply more detailed information that the
OIO requested, the report relays.

                          About Crafar Farms

Crafar Farms, New Zealand's largest family owned dairy business,
runs about 20,000 milking cows, and carries about 10,000 of other
stock.  The company employed 200 staff.

Crafar Farms was placed in receivership in October 2009, by its
lenders Westpac Banking Corp., Rabobank Groep and PGG Wrightson
Finance.  The banks, owed around NZ$200 million, put KordaMentha
partners Michael Stiassny and Brendon Gibson in as receivers after
Crafar Farms breached covenants on its loans.

The New Zealand Herald said CraFarms' banks have been working with
the Ministry of Agriculture and Forestry, Federated Farmers and
Fonterra to ease the Crafars out of their business.  This follows
multiple convictions for environmental lapses and animal neglect
in recent years and the revelation on Sept. 28, 2009, from
interest.co.nz of animal neglect on one of its large farms in the
King Country near Benneydale.


ROCKFORTE FINANCE: Receivers Cut Payout Forecast to Less Than 5c
----------------------------------------------------------------
The New Zealand Herald reports that the receivers for Rockforte
Finance have halved their forecast for potential recoveries to
less than 5 cents in the dollar and filed proceedings against the
firm's directors.

The Herald relates that receivers Dennis Parsons and Katherine
Kenealy of Indepth Forensic pared back the return for the
government, which covered NZ$3.5 million of investors' funds under
the retail deposit guarantee scheme.

In their previous report they were forecasting recoveries of
10 cents in the dollar, the news agency notes.

According to the Herald, the receivers said in their latest report
that they have dim expectations for clawing anything back from
directors Nigel O'Leary, John Gardner and Colin Simpson.

"To date the recoveries from these loans have been minimal only,
with the recovery process hampered by the material lack of
documentation, the inability of the debtor to repay the debt, and
the poor level of security available," the receivers' report said.

Rockforte's records showed 77 investors had invested NZ$3.25
million in secured debentures, though further investors owed
NZ$610,000 were found whose funds were transferred to third
parties without their knowledge or consent, the Herald discloses.

The Herald reports that Mr. Parsons and Ms. Kenealy have filed
formal proceedings against the directors in the High Court in
Gisborne, and have also filed a claim against Mr. O'Leary's estate
after he was subsequently bankrupted.

Rockforte had 318 loans worth NZ$4.8 million outstanding at the
date of receivership, some NZ$1.1 million of which were deemed
overdue, the Herald relays.

The receivers found the security for the loans was "poor" and in
some cases "non-existent," the news agency discloses.

"Investigations revealed that a significant proportion of the loan
book had been underperforming for over 12 months and that there
was material undisclosed related party lending" of NZ$2 million,
the receivers said in their report.

The receivers, says the Herald, have filed complaints with the
Serious Fraud Office, Securities Commission and the Companies
Office's National Enforcement Office.  The SFO has reviewed the
records and made wider inquiries, but hasn't laid charges, the
report said.

The investigation related to a series of partially disclosed
events involving O'Leary, Gardiner and former Jean Jones' owner
Michael Ward.  Retailer Jean Jones accounted for a quarter of the
lender's book, the Herald notes.

                      About Rockforte Finance

Established in 2003, Rockforte Finance engages in consumer and
asset lending.  The company specializes in financing used cars,
mostly second-hand Japanese cars imported by an associated
company, and small personal and business loans.

Rockforte Finance was placed into receivership in May 2010, owing
about NZ$3.2 million to some 70 investors, according to a
BusinessWire article posted at stuff.co.nz.  According to the
BusinessWire article, Katherine Kenealy and Dennis Parsons of
Indepth Forensic have been appointed receivers of the Gisborne-
based lender by its trustee Covenant Trust.  The Treasury
confirmed all eligible depositors are covered by the government's
guarantee.  However, all new deposits or any rolled over after
December 31, 2009, fell outside the scheme because Rockforte
didn't sign the replacement guarantee deed at the end of 2009.


ST LAURENCE PROPERTY: Bondholders Face Shortfall After Liquidation
------------------------------------------------------------------
BusinessDesk reports that bondholders in the failed St Laurence
Property Development Fund are facing a shortfall after the company
was put into liquidation last month.

Citing liquidators' first report, BusinessDesk relates that
liquidators Barry Jordan and David Vance of Deloitte estimate the
company faces a shortfall of NZ$23 million before liquidation,
though they haven't established a range of potential recoveries
for the 1,335 bondholders owed some NZ$25 million.

Bondholders had NZ$18 million of their debt converted into equity
after the company missed its June repayment, leaving just
NZ$7 million at the top of the creditors' queue, the report notes.

"The liquidators have taken control of the cash funds and we
expect to make an interim distribution to secured investors in
respect of interest due once we are satisfied that all investor
information is accurately held," according to the liquidators'
report obtained by BusinessDesk.

BusinessDesk recounts that trustee Perpetual Trust applied to the
High Court to appoint a liquidator in June after the fund's
directors said investors wouldn't be repaid on time and put
forward three alternatives to bondholders which weren't acceptable
to the trustee.

The fund raised NZ$20 million in 2006 to fund projects in Brisbane
and Mount Maunganui.

According to the report, the exposure to the Brisbane development
was shared with related party Irongate Property, which is also in
receivership, and the liquidators said they may recover up to AUD1
million (NZ$1.2 million) from its share in the loan.  They also
expect to recover NZ$137,000 from the Albany City development.

The NZ$6.3 million second-ranking mortgage on the Mount Maunganui
development is unclear, with a NZ$62 million loan to Singapore's
Quilington Pte. falling due next month.  Quilington took on the
debt from BOS International earlier this year, and has been
funding outgoings on the property, the report notes.

St Laurence Property Development Fund Limited is an investment
company. The Fund was formerly managed by St Laurence Property &
Finance.


                             *********

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, Psyche A. Castillon, Ivy B. Magdadaro,
Frauline S. Abangan, and Peter A. Chapman, Editors.

Copyright 2011.  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
Christopher Beard at 240/629-3300.





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