/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/111227.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 Tuesday, December 27, 2011, Vol. 14, No. 256 Headlines A U S T R A L I A BAMBOO AND SOLAR: In Liquidation; Up to 20 Workers Sacked PANTANA PROPRIETARY: Administrator Refuses to Release Debt Info C H I N A WINSWAY COOKING: S&P Keeps 'BB-' Corp. Credit Rating on Watch Neg H O N G K O N G BUDDHIST UNIVERSAL: Creditors' Proofs of Debt Due Feb. 28 CHARMFAME (H.K.): Creditors' Proofs of Debt Due Jan. 31 CLP POWER: Creditors' Proofs of Debt Due Jan. 31 DIODES ZETEX: Commences Wind-Up Proceedings ECO-HARU PROPERTY: Members' & Creditors' Meetings Set for Jan. 13 ECO SWISS: Members and Creditors' Meetings Set for Jan. 13 EGANA FAR: Members and Creditors' Meetings Set for Jan. 13 EGANA FINANCE: Members and Creditors' Meetings Set for Jan. 13 JUNGHANS ASIA: Members and Creditors' Meetings Set for Jan. 13 KAI-YIN LO: Members and Creditors' Meetings Set for Jan. 13 MORODO (HK): Placed Under Voluntary Wind-Up Proceedings PIONEER VENTURES: Members and Creditors' Meetings Set for Jan. 13 TANKINVESTMENTS LIMITED: Creditors' Proofs of Debt Due Jan. 20 TRAVEL 3000: Creditors' Proofs of Debt Due Jan. 15 TIME SUCCESS: Members and Creditors' Meetings Set for Jan. 13 I N D I A EBONY AUTOMOBILES: CRISIL Rates INR45MM Loan at 'CRISIL B-' GODHANI GEMS: CRISIL Assigns 'CRISIL BB' Rating to INR92MM Loan HAP GARMENTS: CRISIL Assigns 'CRISIL B+' Rating to INR150MM Loan KANDUI INDUSTRIES: Fitch Puts Rating on Two Bank Loans at Low-B MVL LTD: Fitch Assigns 'BB-' Rating on INR1,33-Mil. Bank Loans NEELKAMAL STEELS: Fitch Places Rating on Two Bank Loans at Low-B NEERAJ BUILDERS: CRISIL Puts 'CRISIL BB-' Rating on INR10MM Loan RAMA HI POWER: CRISIL Assigns 'CRISIL B+' Rating to INR28MM Loan ROLEX CYCLES: CRISIL Reaffirms 'CRISIL B+' Cash Credit Limit SAI BHASKAR: Delay in Loan Payment Cues CRISIL Junk Ratings SIKKIM INDUSTRIAL: CRISIL Rates INR2.10BB Loan at CRISIL BB+(SO) S.S.S. RICE: CRISIL Assigns 'CRISIL B+' Rating to INR13.5MM Loan ULCCS IT: CRISIL Rates INR1.26BB Long-Term Loan at 'CRISIL BB-' VALLABH TEXTILES: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating VIJAYASRI ORGANICS: CRISIL Reaffirms 'B-' Cash Credit Rating VIDHATA METAL: CRISIL Reaffirms 'CRISIL B' Cash Credit Rating J A P A N OLYMPUS CORP: Amends Earnings Report Due to Rounding Errors PROMISE CO: S&P Raises Counterparty Credit Rating From 'BB' N E W Z E A L A N D YARROWS BAKERS: Workers Get 50c on the Dollar "Interim" Payout X X X X X X X X * BOND PRICING: For the Week Dec. 19 to Dec. 23, 2011 - - - - - ================= A U S T R A L I A ================= BAMBOO AND SOLAR: In Liquidation; Up to 20 Workers Sacked --------------------------------------------------------- Melissa Martin at The Coffs Coast Advocate reports that there was little Christmas cheer for employees of Bamboo and Solar Direct, after the company was placed into liquidation late last week. The report relates that Solar and Bamboo Direct Managing Director Pieter McHeyzer said as many as 20 staff were made redundant in the days leading up to Christmas as the company succumbed to "a number of issues." According to the report, Mr. McHeyzer said the layoffs were the last thing he wanted to do at this time of year. "But we couldn't keep trading when we couldn't pay the debt, the bills and staff," the report quotes Mr. McHeyzer as saying. Mr. McHeyzer said the State Government should shoulder a large part of the blame for the company's demise. "The absolute non- guidance, the flip-flopping of rules and regulations and the non- support of the industry has made things very difficult," The Coffs Coast Advocate quotes Mr. McHeyzer as saying. "There's been no leadership by the State Government for the solar industry and little assistance by the Federal Government." While the solar arms of the business in Coffs Harbour and Tamworth will not survive, it's hoped the bamboo business will thrive, the report adds. Bamboo Direct is in voluntary administration and Mr. McHeyzer is hoping it may be able to trade out of financial difficulty. Bamboo and Solar Direct Pty. Ltd supplies and installs sustainable building and renewable energy products. PANTANA PROPRIETARY: Administrator Refuses to Release Debt Info --------------------------------------------------------------- ABC News reports that the administrator of Pantana Proprietary Limited has refused to provide details about the money owed to dozens of local businesses. Pantana Proprietary Limited, operated by Weldsure, was placed in voluntary administration in November and went into liquidation earlier this month, the report relates. According to ABC News, the firm left more than 50 companies owed a total of almost $1 million. More than half is owed to the Australian Taxation Office, the report notes. In a letter addressed to a former customer, the report relates that a manager at Pantana said operations will resume using the same premises and same equipment under a different name, Northcat Proprietary Limited. BRI Ferrier, which was appointed to conduct the takeover, has refused to release finalization details, according to ABC News. Pantana Proprietary Limited is a Townsville-based mining equipment fabrication company. ========= C H I N A ========= WINSWAY COOKING: S&P Keeps 'BB-' Corp. Credit Rating on Watch Neg ----------------------------------------------------------------- Standard & Poor's Ratings Services kept its 'BB-' long-term corporate credit rating on China-based Winsway Coking Coal Holdings Ltd. and its 'BB-' issue rating on the company's senior unsecured notes on CreditWatch with negative implications. "At the same time, we kept our 'cnBB+' Greater China scale credit rating on the company and its notes on CreditWatch with negative implications," S&P said. The CreditWatch status reflects Standard & Poor's view on the potential risks associated with Winsway's indirect acquisition of 60% of the issued shares of Grande Cache Coal Corp., a Canada- based coal mining company. The acquisition will expose Winsway to coal price volatility and coal mine operating risks outside of China, where the company has limited track record. Winsway's likely significant upstream investment in coal mines will increase its exposure to mine-operating and coal-price risks. Such a strategy could dilute the company's business model, which emphasizes asset-light trading operations with limited inventory and manageable exposure to coal price volatility. The coal price risk is likely to heighten in the next 12 months. In our view, coking coal prices in 2012 will be under pressure as domestic steel mills continue to reduce capacity with weakening demand and a slowing economy. "We believe coal mine operating risk became more uncertain after Alberta Securities Commission's (ASC) allegation on Dec. 8, 2011, against three GCC senior executives of insider trading. The joint-venture bidder plans to retain the GCC senior management team to mitigate execution risk. However, the allegation raises the likelihood of significant turnover in GCC's senior management," S&P said. "We aim to resolve the CreditWatch status within the next three months. We will analyze information regarding bridge loan financing for the announced acquisition, cost competiveness for Canadian coal sold in China and Asia, and the transportation capacity to support GCC's increased annual production," S&P said. "S&P may lower the rating by one notch upon completion of the acquisition if: (1) we believe the company's business risk profile is likely to significantly weaken due to heightened mine operating and coal price risks; or (2) we project that Winsway's adjusted ratio of funds from operations to total debt will stay below 20% or the ratio of adjusted total debt to EBITDA will be more than 4x," S&P said. "We may affirm the rating if: (1) we expect that the likely heightened business risk is manageable; and (2) we project that, following the completion of the acquisition, Winsway's adjusted ratio of funds from operations to total debt will stay above 20% and the ratio of adjusted total debt to EBITDA will not be more than 4x," S&P said. ================ H O N G K O N G ================ BUDDHIST UNIVERSAL: Creditors' Proofs of Debt Due Feb. 28 --------------------------------------------------------- Creditors of Buddhist Universal Compassion Association Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Feb. 28, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 13, 2011. The company's liquidator is: Suen Su Chun Rm 601 Kalok Building 720 Nathan Road Kowloon, Hong Kong CHARMFAME (H.K.): Creditors' Proofs of Debt Due Jan. 31 ------------------------------------------------------- Creditors of Charmfame (H.K.) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Jan. 31, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 16, 2011. The company's liquidators are: Martin James Murray Liu Sui Yuk 33rd Floor, One Pacific Place 88 Queensway, Hong Kong CLP POWER: Creditors' Proofs of Debt Due Jan. 31 ------------------------------------------------ Creditors of CLP Power (BLCP) Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Jan. 31, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 13, 2011. The company's liquidators are: Lai Kar Yan (Derek) Darach E. Haughey 35th Floor, One Pacific Place 88 Queensway, Hong Kong DIODES ZETEX: Commences Wind-Up Proceedings ------------------------------------------- Members of Diodes Zetex (Asia) Limited, on Dec. 12, 2011, passed a resolution to voluntarily wind up the company's operations. The company's liquidators are: Ho Man Kit Kong Sau Wai Unit 511, 5th Floor Tower 1, Silvercord Hong Kong ECO-HARU PROPERTY: Members' & Creditors' Meetings Set for Jan. 13 ----------------------------------------------------------------- Members and creditors of Eco-Haru Property Investment Limited will hold their meetings on Jan. 13, 2012, at 11:30 a.m., and 12:00 p.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. ECO SWISS: Members and Creditors' Meetings Set for Jan. 13 ---------------------------------------------------------- Members and creditors of Eco Swiss China Time Limited will hold their meetings on Jan. 13, 2012, at 4:00 p.m., and 4:30 p.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. EGANA FAR: Members and Creditors' Meetings Set for Jan. 13 ---------------------------------------------------------- Members and creditors of Egana Far East Procurement Services Limited will hold their meetings on Jan. 13, 2012, at 5:00 p.m., and 5:30 p.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. EGANA FINANCE: Members and Creditors' Meetings Set for Jan. 13 -------------------------------------------------------------- Members and creditors of Egana Finance Limited will hold their meetings on Jan. 13, 2012, at 3:00 p.m., and 3:30 p.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. JUNGHANS ASIA: Members and Creditors' Meetings Set for Jan. 13 -------------------------------------------------------------- Members and creditors of Junghans Asia Limited will hold their meetings on Jan. 13, 2012, at 9:30 a.m., and 10:00 a.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. KAI-YIN LO: Members and Creditors' Meetings Set for Jan. 13 ----------------------------------------------------------- Members and creditors of Kai-Yin Lo Limited will hold their meetings on Jan. 13, 2012, at 2:00 p.m., and 2:30 p.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. MORODO (HK): Placed Under Voluntary Wind-Up Proceedings ------------------------------------------------------- At an extraordinary general meeting held on Dec. 13, 2011, creditors of Morodo (Hong Kong) Limited resolved to voluntarily wind up the company's operations. The company's liquidators are: Leung Chung Yin Wong Wing Lai Room 322, 3/F Dah Sing Life Building 99-105 Des Voeux Road Central, Hong Kong PIONEER VENTURES: Members and Creditors' Meetings Set for Jan. 13 ----------------------------------------------------------------- Members and creditors of Pioneer Ventures Limited will hold their meetings on Jan. 13, 2012, at 8:30 a.m., and 9:00 a.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. TANKINVESTMENTS LIMITED: Creditors' Proofs of Debt Due Jan. 20 -------------------------------------------------------------- Creditors of Tankinvestments Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Jan. 20, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 12, 2011. The company's liquidator is: Hugo Stefan August Cox Room 3206, 32/F Lippo Centre, Tower Two 89 Queensway, Hong Kong TRAVEL 3000: Creditors' Proofs of Debt Due Jan. 15 -------------------------------------------------- Creditors of Travel 3000 Limited, which is in members' voluntary liquidation, are required to file their proofs of debt by Jan.15, 2012, to be included in the company's dividend distribution. The company commenced wind-up proceedings on Dec. 14, 2011. The company's liquidator is: Lau Chung Sun Unit 901, 9th Floor Omega Plaza, 32 Dundas Street Kowloon, Hong Kong TIME SUCCESS: Members and Creditors' Meetings Set for Jan. 13 ------------------------------------------------------------- Members and creditors of Time Success Industrial Limited will hold their meetings on Jan. 13, 2012, at 10:30 a.m., and 11:00 a.m., respectively at 27th Floor, Alexandra House, at 18 Chater Road, Central, in Hong Kong. At the meeting, Fergal Power and Edward Middleton, the company's liquidators, will give a report on the company's wind-up proceedings and property disposal. ========= I N D I A ========= EBONY AUTOMOBILES: CRISIL Rates INR45MM Loan at 'CRISIL B-' ----------------------------------------------------------- CRISIL has assigned its 'CRISIL B-/Stable' rating to the long- term bank facilities of Ebony Automobiles Pvt Ltd. Facilities Ratings ---------- ------- INR160 Million Cash Credit CRISIL B-/Stable (Assigned) INR45 Million Long-Term Loan CRISIL B-/Stable (Assigned) The rating reflects EAPL's weak financial risk profile, marked by a small net worth, high gearing, and weak debt protection metrics, its start-up nature of operations, and exposure to risks related to geographical concentration and intense competition in the auto industry. These rating weaknesses are partially offset by the extensive industry experience of EAPL's promoters and the strategic geographic location of its dealership in North Bengaluru territory. Outlook: Stable CRISIL believes that EAPL will continue to benefit over the medium term from the entrepreneurial experience of its management in the automobile dealership business. The outlook may be revised to 'Positive' if EAPL's financial risk profile improves, with increase in its scale of operations and profitability on a sustained basis. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates because of less-than-expected cash accruals or larger-than- expected debt-funded capital expenditure programme, or if its relationship with its principal deteriorates. About Ebony Automobiles EAPL is an authorised dealer of passenger vehicles of Tata Motors Ltd (rated 'CRISIL AA-/Stable/CRISIL A1+') in Bengaluru (Karnataka). The company was incorporated in September 2010 and commenced operations in March 2011.The promoter-director, Mr. Sanjay, has more than six years of experience in this line of business through the dealership of Kinetic Motors Ltd and Eicher Motors Ltd. EAPL operates in North Bengaluru through a showroom and service centre. The showroom is spread across an area of 5000 square feet (sq ft) and the workshop and body shop is spread across 20,000 sq ft and is capable of servicing 32 cars and 10 accident vehicles. EAPL reported net losses of INR12 million on net sales of INR40 million for 2010-11 (refers to financial year, April 1 to March 31). GODHANI GEMS: CRISIL Assigns 'CRISIL BB' Rating to INR92MM Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable' rating to the bank facilities of Godhani Gems Pvt Ltd. Facilities Ratings ---------- ------- INR92 Mil. Standby Line of Credit CRISIL BB/Stable (Assigned) INR1.528 Billion Export Packing Credit CRISIL BB/Stable (Assigned) INR30 Million Proposed Standby CRISIL BB/Stable Line of Credit (Assigned) The rating reflects GGPL's established position in the diamond industry and the extensive experience of the company's promoters. These rating strengths are partially offset by GGPL's working- capital-intensive operations, and moderate financial risk profile marked by high external indebtedness and weak interest coverage ratio. Outlook: Stable CRISIL believes that GGPL will continue to benefit over the medium term from its established position in the diamond industry and its promoters' extensive industry experience. The outlook may be revised to 'Positive' if the company demonstrates a significant and sustainable improvement in its profitability margins, working capital cycle, and capital structure, resulting in an improvement in its overall financial risk profile. Conversely, the outlook may be revised to 'Negative' in case GGPL reports deterioration in its financial risk profile because of lengthening of its working capital cycle or deterioration in its margins. About Godhani Gems GGPL was set up as a partnership firm named Godhani Gems in 1995 by the Godhani family. In June 2011, the entity was reconstituted as a closely held private limited company with its current name. The company imports rough diamonds, and processes and exports cut and polished diamonds. GGPL has its diamond-cutting and - polishing unit in Surat (Gujarat). It primarily manufactures diamonds of sizes ranging from 0.1 to 1.00 carats. The company's overall operations are managed by six brothers, namely, Mr. Vinodkumar Godhani, Mr. Ramesh Godhani, Mr. Bharatkumar Narola, Mr. Jagdishkumar Narola, and Mr. Sudhirbhai Patel. GGPL reported profit after tax (PAT) of INR63.4 million on sales of INR5.06 billion for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR44.9 million on sales of INR4.34 billion for 2009-10. HAP GARMENTS: CRISIL Assigns 'CRISIL B+' Rating to INR150MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash credit facility of Hap Garments Pvt Ltd. Facilities Ratings ---------- ------- INR150 Million Cash Credit CRISIL B+/Stable (Assigned) The rating reflects HGPL's below-average financial risk profile, marked by a small net worth and low profitability, limited track record in the readymade garments segment and susceptibility to intense competition from global and Indian brands with limited pricing flexibility. These rating weaknesses are partially offset by the extensive experience of HGPL's promoters in the textile industry. Outlook: Stable CRISIL believes that HGPL will benefit over the medium term from the healthy demand prospects and promoters experience in the domestic ready-made garments industry. The outlook may be revised to 'Positive' if the company scales up its operations on a sustainable basis while maintaining its profitability, leading to higher cash accruals, and if the promoters infuse equity to ease the pressure on liquidity. Conversely, the outlook may be revised to 'Negative' if HGPL undertakes a large debt-funded capital expenditure programme or in case of delay in realisation of receivables, leading to weakening in its financial risk profile. About Hap Garments Incorporated in 2010 and based in Kolkata (West Bengal), HGPL manufactures garments for women, which include salwar suits and sarees. The company also trades in salwar suits, which accounts for about 15 per cent of its revenues. HGPL has a manufacturing unit in Kolkata with capacity of about 60,000 pieces per month. About 90 per cent of the company's revenues are generated from sale to wholesalers while the balance is from retail sales. The company commenced commercial operations from August 2010. HGPL reported a profit after tax (PAT) of INR3 million on net sales of INR212 million for 2010-11 (refers to financial year, April 1 to March 31). KANDUI INDUSTRIES: Fitch Puts Rating on Two Bank Loans at Low-B --------------------------------------------------------------- Fitch Ratings has assigned India's Kandui Industries Pvt. Ltd. a National Long-Term rating of 'Fitch BB-(ind)'. The Outlook is Stable. The ratings are constrained by the deterioration in KIPL's net financial leverage (net debt /EBITDA) to 3.8x in FY11 (year-end: March 2011) from 1.6x in FY10 and EBITDA interest coverage to 3.7x from 4.01x. This is on account of additional borrowings undertaken for its INR161.6m capex for capacity expansion, which was funded by a debt of INR115.6m, and sponsor's contribution. Cash flow from operations also turned negative due to higher working capital requirements. The ratings are also constrained by KIPL's small size of operations (revenue: INR472.3m in FY11, INR368.0m in FY10) and the commodity nature of its products. The ratings, however, benefit from over four-decade-long experience of KIPL's sponsors in the domestic plastics industry, especially in woven sacks manufacturing, as well as from excise duty exemption on raw materials and lower power costs in Daman -- a city in India. The ratings reflect the advantages of group linkages -- KIPL is an upstream supplier of master batches to its group companies, PVN Fabrics ('Fitch B+(ind)'/Stable Outlook) and PVN Tex Industries ('Fitch B+(ind)'/Stable), which convert the same into high density polyethylene/polypropylene woven sacks. The ratings also reflect KIPL's steady financial performance in FY11 and FY12 till date. In FY11, revenues grew by 28.3% yoy to INR472.3m while EBITDA margins improved to 10.2% from 9.5%. As per provisional financials for the April 2011 to October 2011 period, revenues were INR348m and EBITDA margins were 10.2%. This is attributed to an increase in its capacity to 15,000 tons per annum (tpa) from 12000 tpa and cost efficiencies. Positive rating guidelines include increased capacity utilisation and adjusted net leverage being maintained below 3.0x on a sustained basis. Negative rating guidelines include EBITDA margins falling below 8% and adjusted net debt/EBITDA levels exceeding 4.5x during the next three years. KIPL is a private limited company, owned and managed by Ashwin Agarwal and family. Fitch has assigned ratings to KIPL's bank facilities as follows: -- INR115.6m total long term loans: 'Fitch BB-(ind)' -- INR1155m fund based limits: 'Fitch BB-(ind)' -- INR25m non-fund based limits: 'Fitch A4+(ind)' MVL LTD: Fitch Assigns 'BB-' Rating on INR1,33-Mil. Bank Loans -------------------------------------------------------------- Fitch Ratings has assigned India-based MVL Limited a National Long-Term rating of 'Fitch BB-(ind)'. The Outlook is Stable. The agency has also assigned MVL's INR1,334 million long-term bank loans a rating of 'Fitch BB-(ind)'. The ratings are constrained by the limited operational history of MVL in the Indian real estate sector and its large debt repayments of almost INR600m falling due each year over the next three years. The ratings are also constrained by the subdued operating environment in the industry. MVL's many residential projects are in Tier II and Tier III Indian cities which have a low degree of speculative demand as the majority of the purchases are by end users. The company plans for a significant proportion of sale of developed plots which would have low construction cost and low execution risks. The ratings, however, supported by MVL's operational track record of steady growth since its inception and diversified nature of its projects. The ratings also reflect the company's low land payment liability as the majority of its land bank, including the land for projects where construction is yet to commence, is fully paid for. Negative rating guidelines include major time or cost overruns in MVL's ongoing projects, a shortfall in its cash flows due to slowing down of sales or any significant worsening of its financial leverage on a sustained basis. Positive rating guidelines include an increase in the company's sales leading to cash flow from operations turning positive on a sustained basis. MVL is a listed real estate company in North India with a market cap of around INR12bn. It belongs to the MVL Group, which has operations in real estate development, consumer electronics goods and mobile handsets since the last two decades. The company was formed in 2006 and its projects comprise sale of plots, hospitality, residential and commercial developments. MVL is presently in various stages of executing projects with around 9.6 million sq. ft. of saleable area. MVL had revenue of INR1,936 million in 2010 (2009: INR1,781m), with an EBITDA margin of 18% (16.30%) and net financial leverage of 3.36x (2.85x). NEELKAMAL STEELS: Fitch Places Rating on Two Bank Loans at Low-B ---------------------------------------------------------------- Fitch Ratings has assigned India's Neelkamal Steels Private Limited a National Long-Term rating of 'Fitch B(ind)'. The Outlook is Stable. NSPL's ratings reflect its small size (revenue: INR746.4m in FY11, INR647.4m in FY10 (end-March)) and volatile EBITDA margins from manufacturing operations, which declined to 0.36% in FY11 from 7.04% in FY10 due to raw material price volatility. The ratings also reflect the company's tight liquidity position as reflected in its full utilization of working capital limits in FY11. In H1FY12, revenue declined to INR289.3m with an EBITDA loss of INR24.2m due to a decline in sales volume. EBITDA is expected to improve in H2FY12 due to a correction in product selling price during Q3FY12. The ratings also factor in NSPL's deteriorating credit metrics with its net financial leverage (total adjusted net debt/operating EBITDAR) increasing to 32.6x in FY11 from 2.44x in FY10 and interest coverage (operating EBITDA/gross interest expense) falling to 0.20x from 3.51x. The ratings are, however, supported by the income the company earns in the form of commission and brokerage from selling and marketing services provided to other manufacturers. Comission and brokerage increased substantially to INR47.3m in H1FY12 and INR35.1m in FY11 from INR4.6 m in FY07. Positive rating guideline includes a sustained improvement in EBITDA margin leading to improved credit metrics. Conversely, a decline in commission and brokerage income resulting in a tight liquidity position may act as a negative guideline. Incorporated in July 2005, NSPL manufactures re-rolled products mainly TMT bars with an installed capacity of 30,000MTPA, and has two furnaces for manufacturing MS ingots with a total capacity of 35,640MTPA. Fitch has also assigned ratings to NSPL's bank loans as follows: -- INR22.7m long-term loans: 'Fitch B(ind)' -- INR62.5m fund-based limits: 'Fitch B(ind)' NEERAJ BUILDERS: CRISIL Puts 'CRISIL BB-' Rating on INR10MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Neeraj Builders. Facilities Ratings ---------- ------- INR10 Million Cash Credit CRISIL BB-/Stable (Assigned) INR51.5 Million Proposed LT CRISIL BB-/Stable (Assigned) Bank Loan Facility INR50 Million Bank Guarantee CRISIL A4+ (Assigned) The ratings reflect the extensive industry experience of NB's promoter and moderate financial risk profile, marked by low gearing and moderate debt protection metrics. These rating strengths are partially offset by NB's small scale of operations, low profitability due to highly competitive and fragmented nature of construction industry, and large working capital requirements. Outlook: Stable CRISIL believes that NB will continue to benefit over the medium term from the extensive industry experience of its promoter in the construction industry. The outlook may be revised to 'Positive' in case of higher-than-expected increase in the firm's scale of operations and improvement in profitability, leading to higher-than-expected cash accruals while maintaining a comfortable capital structure. Conversely, the outlook may be revised to 'Negative' in case of pressure on profitability or significant pressure on the firm's working capital management, and consequentially its liquidity, due to delays in project execution and receivables. About Neeraj Builders NB is a proprietorship concern set up in 1999 by Mr. Surinder Kumar Jain. The firm is primarily engaged in construction of roads. NB is a class 1 contractor in Haryana for government bodies, such as Public Works Department and Haryana State Agricultural Marketing Board. NB reported a profit after tax (PAT) of INR5.7 million on net sales of INR202.1 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR5.5 million on net sales of INR367.0 million for 2009-10. RAMA HI POWER: CRISIL Assigns 'CRISIL B+' Rating to INR28MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the bank facilities of Rama Hi Power Tech. Facilities Ratings ---------- ------- INR28 Million Term Loan CRISIL B+/Stable (Assigned) INR30 Million Cash Credit CRISIL B+/Stable (Assigned) The rating reflects RHPT's small scale of operations due to its limited track record in manufacturing mild steel (MS) ingots, the susceptibility of RHPT's operating margin to downturns in end- user industry and volatility in steel prices, and the expected deterioration in its financial risk profile because of its debt- funded capital expenditure (capex) incurred and large working capital requirements. These weaknesses are partially offset by RHPT's promoter-partners' extensive experience in the steel industry and the favourable demand scenario for steel long products currently. RHPT has been extended interest-free unsecured loans of a total of INR3.2 million (as on March 31, 2011) by its partners. CRISIL has treated these unsecured loans as neither debt nor equity, as the loans are interest free and subordinated to the bank borrowings. Outlook: Stable CRISIL believes that RHPT will benefit from its promoter- partners' experience in the steel industry over the medium term. The outlook may be revised to 'Positive' in case the firm scales up its operations, supported by its new MS ingots capacities, resulting in more-than-expected cash accruals and consequent improvement in financial risk profile. Conversely, the outlook may be revised to 'Negative' in case the firm's liquidity deteriorates because of larger-than-expected working capital requirements or if the firm further undertakes larger-than- expected, debt-funded capex programme. About Rama Hi Power RHPT, promoted by Dr. S Suresh, is based in Bengaluru (Karnataka). It has two units, one each for manufacturing MS bars and MS ingots. RHPT's promoter-partners set up a small hot- rolling mill, with capacity of 5 tonnes per day (tpd), during 2003 for manufacturing of MS bars. Furthermore, during 2010-11 (refers to financial year, April 1 to March 31), the promoter- partners set up a new unit to manufacture MS ingots. This unit has a capacity of 100 tpd of MS ingots and commenced commercial operations in August 2011. RHPT reported a profit before tax (PBT) of INR1.27 million on an operating income of INR38.32 million for 2010-11, as against a PBT of INR1.12 million on an operating income of INR33.63 million for 2009-10. ROLEX CYCLES: CRISIL Reaffirms 'CRISIL B+' Cash Credit Limit ------------------------------------------------------------ CRISIL's ratings on Rolex Cycles Pvt Ltd's bank facilities continue to reflect RCPL's below-average financial risk profile, marked by high gearing, small net worth, and weak debt protection metrics, and exposure to risks related to customer and product concentration in its revenue profile. These rating weaknesses are partially offset by RCPL's long track record in the bicycle components manufacturing industry. Facilities Ratings ---------- ------- INR152.5 Mil. Cash Credit Limit CRISIL B+/Stable (Enhanced from INR130.0 Million) INR25.0 Million Letter of Credit CRISIL B+/Stable (Reaffirmed) INR25.0 Million Letter of Credit CRISIL A4 (Enhanced from INR20.0 Million) Outlook: Stable CRISIL believes that RCPL will continue to benefit from its established customer base over the medium term. However, the company's financial risk profile is expected to remain weak over the medium term because of its large working capital requirements and small net worth. The outlook may be revised to 'Positive' if RCPL's financial risk profile improves, most likely because of improvement in profitability or infusion of equity capital. Conversely, the outlook may be revised to 'Negative' if the company's financial risk profile deteriorates significantly, most likely because of fresh, large, debt-funded capital expenditure (capex), or more-than-expected incremental working capital requirements. Update RCPL's performance in 2010-11 (refers to financial year, April 1 to March 31) was in line with CRISIL expectations. RCPL reported a 14 per cent year-on-year sales growth for 2010-11, with provisional net sales of INR742.6 million, as against previous year's net sales of INR653.8 million. RCPL's revenues mainly depend on three cycle manufacturing companies, Hero Cycles Ltd, Atlas Cycles (Haryana) Ltd and TI Cycle of India. CRISIL believes that RCPL's sales will grow at a slow but steady rate over medium term, because of sluggish growth rates of the Indian bicycle industry. About Rolex Cycles Set up in 1954 as a partnership firm, RCPL was reconstituted as a private limited company in 1999. It manufactures hubs for bicycles. The company's manufacturing unit in Ludhiana (Punjab) has total manufacturing capacity of around 0.15 million pieces per day. The company has its marketing network across Punjab, Maharashtra, New Delhi, Rajasthan, Bihar, and Uttar Pradesh. RCPL reported a book profit of INR6.08 million on net sales of INR742.7 million for 2010-11, against a book profit of INR4.46 million on net sales of INR653.8 million for 2009-10. SAI BHASKAR: Delay in Loan Payment Cues CRISIL Junk Ratings ----------------------------------------------------------- CRISIL has assigned its 'CRISIL D' to the bank facilities of Sai Bhaskar Irons Pvt Ltd. The ratings reflect the company's delays in servicing the term loan obligations due to weak liquidity. Facilities Ratings ---------- ------- INR200 Million Term Loan CRISIL D (Assigned) INR60 Million Cash Credit CRISIL D (Assigned) INR10 Million Proposed LT CRISIL D (Assigned) Bank Loan Facility SBIPL also has a weak financial risk profile, marked by average net worth, high gearing, and weak debt protection metrics, short track record of operations in the intensely fragmented thermo- mechanically treated (TMT) bars industry, and is susceptible to volatility in raw material prices. These rating weaknesses are partially offset by the promoters' entrepreneurial experience. About Sai Bhaskar SBIPL, based in Guntur (Andhra Pradesh), was incorporated in 2009 and promoted by Mr. Ratnagiri Babu. It started commercial operations in March 2010. The company has one induction furnace with a capacity of 36,000 tonnes per annum (tpa). The company is also setting up a 120,000-tpa TMT bars facility, which is expected to start operations in October 2011. SIKKIM INDUSTRIAL: CRISIL Rates INR2.10BB Loan at CRISIL BB+(SO) ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+(SO)/Stable' rating to the INR2.107-billion long-term loan facility of Sikkim Industrial Development & Investment Corporation Ltd; the loan is guaranteed by the Government of Sikkim (GoSK). Facilities Ratings ---------- ------- INR2.107 Billion Long-Term CRISIL BB+(SO)/Stable (Assigned) Loan Facility The rating reflects the guarantee provided by GoSK on, and the credit enhancement mechanism of, the long-term loan facility. The credit rating on SIDICO's long-term loan facility, therefore, reflects the credit risk profile of GoSK. GoSK has provided an unconditional and irrevocable guarantee for SIDICO's long-term loan facility, guaranteeing full repayment of the principal and interest. As per the payment structure, if the payments are not made on due date (T), lenders will invoke the guarantee on 30th day from the due date (T+30) and the guarantor will make the payment within 7 business days (T+37) from the day of invocation. CRISIL's ratings factor in expectation of continued financial support for GoSK from the Government of India (GoI) and GoSK's above-average socio-economic indicators. These rating strengths are partially offset by GoSK's average economic management, high debt levels and sub-par debt servicing metrics. CRISIL believes that GoSK will continue to get financial support from GoI, given the state's strategic location and its status of a special-category state. Funds from GoI, in the form of share in central taxes and grant/aid, constitute a substantial portion of GoSK's revenue receipts (RRs). Funds from GoI, as a proportion of GoSK's overall RRs, was about 68 per cent in 2009-10 (refers to financial year, April 1 to March 31). GoSK's gross state domestic product (GSDP) growth has been higher than the national average, albeit on a small base. The state's GSDP increased by a yearly average of about 14 per cent over the five-year period from 2006- 07 to 2010-11, higher than the national average of 8.4 per cent during the same period. The state's socio-economic indicators, such as per capita income and literacy rate, have been better than the national average - its per capita income was INR48,937 against the national average of INR46,492 for 2009-10. The state's literacy rate (as per the 2011 census) was 82 per cent, significantly higher than the national average of 74 per cent. GoSK's economic management is average. It is one of the last states to enact the Fiscal Responsibility and Budget Management (FRBM) Act. It enacted the FRBM Act in 2010-11. Infrastructure in the state is below average. It lacks rail and air connectivity, and the road network is not extensive. Investment attractiveness of the state is low. Its debt levels are high and debt servicing ratios are average. The ratio of debt plus guarantees to GSDP was 68 per cent, while the ratio of debt plus guarantees to RR was about 1.0 time, for 2009-10. The ratio of gross fiscal deficit (GFD) to GSDP was high at 4.9 per cent in 2009-10, although it improved from 8.0 per cent in 2008-09. The state's FRBM Act aims to bring down its GFD to 3 per cent of GDSP in 2013-14 and maintain it at that level thereafter. Outlook: Stable CRISIL believes that GoSK will derive support from GoI in the form of grants and share in central taxes. The outlook may be revised to 'Positive' if GoSK improves its financial risk profile, thereby also achieving the fiscal targets envisaged in the FRBM Act. Conversely, the outlook may be revised to 'Negative' if GoSK's financial risk profile deteriorates, most likely because of less-than-expected financial assistance from GoI. About Sikkim Industrial SIDICO, incorporated in 1977, under the Registration of Companies Act, Sikkim, 1961 is a state-level financial institution, engaged in promotion, financing and development of industries in tiny, cottage and small sector in the state of Sikkim. For 2010-11, SIDICO reported profit before tax (PBT) of INR 11.3 million on gross income of INR350 million as against PBT of INR2.3 million on gross income of INR 38.2 million in 2009-10. S.S.S. RICE: CRISIL Assigns 'CRISIL B+' Rating to INR13.5MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/ CRISIL A4' ratings to the bank facilities of SSS Rice Mill Pvt Ltd. Facilities Ratings ---------- ------- INR13.5 Million Term Loan CRISIL B+/Stable (Assigned) INR85 Million Cash Credit CRISIL B+/Stable (Assigned) INR1.5 Million Bank Guarantee CRISIL A4 (Assigned) The ratings reflect SSSRM's moderate financial risk profile, marked by moderate gearing and debt protection metrics and a small net worth, susceptibility of its operating margin to adverse government regulations and volatility in raw material prices, and short track record of operations. These rating weaknesses are partially offset by SSSRM's established marketing network with stable operating profitability. Outlook: Stable CRISIL believes that SSSRM will continue to benefit over the medium term from its established terms with food procurement agencies and moderate working capital requirements. The outlook may be revised to 'Positive' if the company's scale of operations improves substantially, while maintaining its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case of higher-than-expected working capital requirement or lower-than-expected profitability, leading to weakening in its financial risk profile. About SSS Rice Incorporated in 2009, SSSRM is engaged in milling and processing of non-basmati rice and supplies to Central and state governments as well as sells in the open market through distributors. The company's plant in Raidighi (West Bengal) has an installed capacity of processing 45,000 tonnes per annum of paddy, with current utilisation of around 65 per cent. SSSRM reported a profit after tax (PAT) of INR3.1 million on net sales of INR317 million for 2010-11 (refers to financial year, April 1 to March 31), as against a net loss of INR0.4 million on net sales of INR202 million for 2009-10. ULCCS IT: CRISIL Rates INR1.26BB Long-Term Loan at 'CRISIL BB-' --------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long- term bank facility of ULCCS IT Infrastructure Pvt Ltd. Facilities Ratings ---------- ------- INR1.26 Billion Long-Term Loan CRISIL BB-/Stable (Assigned) The rating reflects the strong support that UIIPL derives from its parent, ULCCS Ltd, which has a healthy track record of implementing civil construction projects and fund support from Government of Kerala (GoK). These rating strengths are partially offset by UIIPL's susceptibility to inherent project implementation risks, and below-average financial risk profile, marked by subdued cash accruals as it is in its initial years of operations. Outlook: Stable CRISIL believes that UIIPL will benefit over the medium term from the healthy execution track record of its parent and fund support from GoK. The outlook may be revised to 'Positive' upon timely completion of the project, yielding stable revenues and profitability. Conversely, the outlook may be revised to 'Negative' in case of time or cost overrun in the projects or non-saleability of acquired land leading to lower cash accruals, thereby weakening financial risk profile. About ULCCS IT Incorporated in November 2008, UIIPL is developing an IT park, UL Cyberpark, in Kozhikode (Kerala). The park will be built on an area of 0.9 million square feet, comprising IT buildings, residential apartments, commercial complex, and a learning centre. UL Cyberpark is the first IT SEZ in Kozhikode as well as in the Malabar region. UIIPL is a 99 per cent subsidiary of ULCCS Ltd (a co-operative society). ULCCS Ltd, formed in 1925, is involved in civil construction projects, such as road construction and bridges, in Kerala. The company has more than 2500 workers including 750 members and 1750 non-members. Members hold around 70 per cent of the company's shares, while GoK holds the rest. ULCCS Ltd's objective is to provide employment opportunities for the under-privileged. VALLABH TEXTILES: CRISIL Reaffirms 'CRISIL BB' Cash Credit Rating ----------------------------------------------------------------- CRISIL's ratings on the bank facilities of Vallabh Textiles Company Ltd continue to reflect VTCL's good profitability and the support it gets from the Vallabh group. These rating strengths are partially offset by VTCL's weak financial risk profile marked by weak debt protection metrics, promoters' limited experience in the textile industry, and susceptibility to volatility in raw material prices and foreign exchange rates. Facilities Ratings ---------- ------- INR252.5 Million Cash Credit CRISIL BB/Stable (Reaffirmed) INR1107.9 Million Term Loan CRISIL BB/Stable (Reaffirmed) INR2.5 Million Bank Guarantee CRISIL A4+ (Reaffirmed) Outlook: Stable CRISIL believes that VTCL's business risk profile will continue to be supported by sustained demand growth for terry towels over the medium term. VTCL's capital structure is expected to remain weak over the medium term. However, the company will benefit from need-based funding support from promoters and their group entities. The outlook may be revised to 'Positive' if VTCL's capital structure and debt protection metrics improve significantly and on a sustained basis. Conversely, the outlook may be revised to 'Negative' in case there is a significant slowdown in the company's end-user industry, resulting in lower- than-expected capacity utilisation and consequently, a decline in cash accruals, if the company undertakes a larger-than-expected, debt-funded capital expenditure (capex) programme, or if there is deterioration in its debt protection metrics. About Vallabh Textiles VTCL, incorporated in May 2007, manufactures terry towels and bath robes. VTCL is part of the Vallabh group, founded by Mr. Kapil Jain in 1981. The group's other entities are Vardhman Industries Ltd, Vallabh Steel Ltd and Vallabh Tinplate Pvt. Ltd, which are secondary steel producers and manufacturers of steel and steel products, with operations in North India. VIL and VSL hold equity stakes of 26 per cent each in VTCL. VTCL has integrated terry towel/bathrobe units, with 16,416 spindles, 576 rotors and 47 looms. VTCL's spinning unit commenced commercial operations in May 2009 and the weaving unit in July 2009. For 2010-11 (refers to financial year, April 1 to March 31), VTCL reported a net profit of INR13.0 million on net sales of INR1.3 billion, as against a net loss of INR42.3 million on net sales of INR0.7 billion for 2009-10. VIJAYASRI ORGANICS: CRISIL Reaffirms 'B-' Cash Credit Rating ------------------------------------------------------------ CRISIL ratings on the bank facilities of Vijayasri Organics Ltd (VOL; part of the Vijayasri group) continue to reflect Vijayasri group's working-capital-intensive operations, customer concentration, and exposure to intense competition in the pharmaceuticals industry. Facilities Ratings ---------- ------- INR250.00 Million Cash Credit CRISIL B-/Stable (Enhanced from INR165.00 Million) INR197.50 Million Long Term Loan CRISIL B-/Stable (Enhanced from INR185.00 Million) INR150.00 Million Letter of Credit CRISIL A4 (Enhanced from INR50.00 Million) INR2.50 Million Bank Guarantee CRISIL A4 (Assigned) These rating weaknesses are partially offset by the Vijayasri group's moderate financial risk profile, marked by a moderate gearing and above-average debt protection metrics, and the benefits that the group derives from its promoters' extensive experience and its established relationships with its customers. For arriving at its ratings, CRISIL has combined the business and financial risk profiles of Vijayasri Chemicals (VSC), Vijayasri Organics (VSO), and VOL, collectively referred to as the Vijayasri group. This is because all the entities are under a common management and have intra-group operational and financial linkages. Outlook: Stable CRISIL believes that the Vijayasri group will continue to benefit over the medium term from its promoters' extensive experience in bulk drug industry and its established relations with its customers and suppliers. The outlook may be revised to 'Positive' in case the group improves its working capital management and liquidity, while it maintains its profitability. Conversely, the outlook may be revised to 'Negative' if the group's debt protection metrics deteriorate because of large debt-funded capital expenditure, or its working capital cycle deteriorates considerably. About the Group The Vijayasri group was set up in 1996 by Mr. S V J Raju, Mr. K V Rama Rao, and Mr. Prakash Reddy, who set up VSC, a partnership firm, in Hyderabad (Andhra Pradesh [AP]) to process solvents. The group further expanded its operations in 2002 by setting up VSO. In 2005, it set up VOL in Visakhapatnam [AP] as part of its expansion plans. The Vijayasri group currently produces active pharmaceutical ingredients, also known as bulk drugs, and intermediates. The Vijayasri group reported a profit after tax (PAT) of INR61.3 million on net sales of INR2.6 billion for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR116.3 million on net sales of INR2.0 billion for 2009-10. 1The ratings on the bank facilities of VOL are upgraded to 'CRISIL B-/Stable/CRISIL A4' from 'CRISIL C/CRISIL A4' on October 18, 2011 VIDHATA METAL: CRISIL Reaffirms 'CRISIL B' Cash Credit Rating ------------------------------------------------------------- CRISIL's ratings on the bank facilities of Vidhata Metal Pvt Ltd continue to reflect VMPL's average financial risk profile, marked by weak liquidity as a result of small net cash accruals vis-�- vis term loan obligations and high bank limit utilisation, small net worth and weak capital structure. This rating weakness is partially offset by the locational advantage that VMPL enjoys because of proximity to its end-users. Facilities Ratings ---------- ------- INR50.0 Million Cash Credit CRISIL B/Stable (Reaffirmed) INR85.0 Mil. Rupee Term Loan CRISIL B/Stable (Reaffirmed) INR6.0 Million Proposed Long- CRISIL B/Stable (Reaffirmed) Term Bank Loan Facility INR4.0 Million Bank Guarantee CRISIL A4 (Reaffirmed) Outlook: Stable CRISIL believes that VMPL will continue to benefit from the strong demand for its products in Wada, Thane District (Maharashtra). The outlook may be revised to 'Positive' if VMPL sustains growth in its revenues and improves its operating margin, thereby increasing its cash accruals. Conversely, the outlook may be revised to 'Negative' if competitive pressures result in decline in the company's operating margin, or if it undertakes a large, debt-funded capital expenditure (capex) programme, leading to deterioration in its financial risk profile. About Vidhata Metal Incorporated in March 2008, VMPL manufactures mild-steel billets from steel scrap and sponge iron. The company is promoted by Mr. Ishwar Samota and Mr. Rajesh Garg. Mr. Garg is the new addition to the board and he has experience in handling another group company which is in similar line of business as VMPL. VMPL's manufacturing unit has capacity of about 51,000 tonnes per annum; the unit is in Wada, which is a manufacturing hub for steel long products, the end-user segment of billets. VMPL reported a profit after tax (PAT) of INR9.3 million on net sales of INR1.2 billion for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR0.4 million on net sales of INR365.6 million for 2009-10. ========= J A P A N ========= OLYMPUS CORP: Amends Earnings Report Due to Rounding Errors ----------------------------------------------------------- Mariko Yasu at Bloomberg News reports that Olympus Corp. amended earnings reports initially filed Dec. 14 to correct mistakes including rounding errors it said had no effect on net assets. None of the revisions are significant, Yasutoshi Fujiwara, a spokesman for Tokyo-based Olympus, told Bloomberg by phone. The company filed 14 corrections to the Dec. 14 statement to the finance ministry Monday. Bloomberg relates that Olympus said it made the errors in some tables so that the numbers didn't match with figures elsewhere in the report, while the totals for debt, earned surplus and net assets were correct. The company had delayed reporting earnings for the quarter ended Sept. 30 pending the findings of an independent investigation into a 13-year cover-up of investment losses, Bloomberg recalls. According to Bloomberg, Olympus on Monday reported figures showing the correct value of its earned surplus as of April 2006 was reduced by JPY118.4 billion, compared with the JPY117.3 billion reduction as stated in some parts of its Dec. 14 filings. Securities Investment Scandal The Troubled Company Reporter-Asia Pacific reported on Nov. 9, 2011, that Block & Leviton LLP, a Boston-based law firm representing investors seeking to recover money lost due to investment fraud, said it is investigating possible securities fraud claims involving Olympus Corp. On Oct. 14, 2011, Olympus's Board of Directors fired the Company's then-President and Chief Executive Officer, Michael Woodford, after Mr. Woodford attempted to force an inquiry into Olympus's acquisition of British medical device maker Gyrus in 2008. At issue were the $687.0 million in advisory fees paid to a relatively obscure financial firm in relation to the acquisition. The fees were approximately one-third of the $2.0 billion acquisition price, which is almost 30 times higher than normal. On Nov. 8, 2011, the Company admitted to an accounting cover-up, stating that the advisory fees paid in connection with the Gyrus deal and other acquisitions were used to hide steep investment losses that began in approximately 1990. Speaking at a press conference, the Company's President, Shuichi Takayama, confessed that "[w]e have conducted extremely improper accounting" and that "[o]ur previous statements were in error." The Company's admission, released just prior to the opening of trading on the Tokyo Stock Exchange, where Olympus's common stock is traded, sent shares spiraling downward by 29% over the prior day's close to JPY734 (or $9.40). The Company's American Depository Receipts also plummeted on the news, losing 31% compared to the prior day's close of $13.72. Since mid-October when Mr. Woodward's allegations first surfaced, the Company's stock has lost approximately 70% of its market value. Amidst the growing accounting scandal that could be one of the largest in corporate history, the TSE has indicated that the Company's shares could be de-listed. In addition, the Japanese Securities and Exchange Surveillance Commission is said to be investigating along with the U.S. Federal Bureau of Investigation, and the U.S. Securities and Exchange Commission. About Olympus Corp. Based in Japan, Olympus Corporation (TYO:7733) -- http://www.olympus-global.com/-- manufactures and sells medical products, life and industrial products, imaging products, information communication products and other products. As of March 31, 2011, the Company has 188 subsidiaries and 11 associated companies. PROMISE CO: S&P Raises Counterparty Credit Rating From 'BB' ----------------------------------------------------------- Standard & Poor's Ratings Services raised by two notches the long-term counterparty credit rating on PromiseCo. Ltd. to 'BBB-' from 'BB' and by one notch the short-term rating to 'A-3' from 'B'. "At the same time, we removed the long-term rating from CreditWatch, where it was placed with positive implications on Oct. 4, 2011, following the announcement on Sept. 30 by Sumitomo Mitsui Financial Group Inc. (SMFG; A/Negative/A-1) that it intended to increase its stake in Promise to 100% from 22%. The outlook is stable. In addition, we also raised the long-term debt rating by two notches to 'BBB-' from 'BB'. The upgrades are based on the factor of increased extraordinary support, which we have incorporated into our ratings on Promise. Meanwhile, we also revised upward Promise's stand-alone credit profile (SACP) by one notch to 'bb-' from 'b+' due to existing and expected benefits from SMFG," S&P said. SMFG increased its stake in Promise through an open offer bid during the last quarter of 2011. The group plans to undertake a third-party allotment of JPY120 billion of new shares that Promise will issue on Dec. 26, and increase its ownership in Promise to 98% from an original stake of 22%. SMFG is scheduled to further increase its ownership to 100% in April 2012. "The 'BBB-' long-term counterparty credit rating on Promise incorporates a three-notch uplift based on possible extraordinary support from SMFG. This is based on our assessment that Promise is a 'strategically important' subsidiary to SMFG under our group methodology for banking groups. Promise posted a large net loss of JPY209 billion in the first half of fiscal 2011 (ended Sept. 30, 2011) due to large provisioning for interest refunds. Standard & Poor's views SMFG's increased ownership and capital injection as the group's demonstration of its commitment toward Promise. We also believe that Promise's operational and financial integration within the group is likely to grow stronger. On the other hand, we currently see the relatively high-risk nature of Promise's unsecured consumer loan business and its expected limited profit contribution to the group as constraining factors for the company to be regarded as a 'core' or 'highly strategic' subsidiary," S&P said. "We expect Promise's SACP to benefit from existing support from the group. In particular, Standard & Poor's views SMFG's planned 100% ownership as providing certainty for Promise's funding prospects and its financial flexibility. Meanwhile, we have started to see some stabilizing signs in the consumer finance market, such as an ongoing year-on-year decline of 20%-30% in interest refund claims, as well as an increased number of new loan applicants that has slowed market contraction. Nevertheless, we expect Promise's cash flow to remain weak in the next few years because the number of interest refunds remains high as revenue declines. On the other hand, we believe Promise will likely be able to keep additional provisioning at a manageable level if we take into account increased level of reserves for interest refunds and lower operational costs," S&P said. "The stable outlook reflects our view that Promise would maintain its business and financial profiles amid a difficult operating environment when existing and extraordinary group support is incorporated into our assessment of the company. We may lower our long-term counterparty credit rating on Promise if we see signs that support from the parent group has weakened, or if we have reason to believe that Promise is unlikely to achieve profit targets set by SMFG for an extended period. Conversely, we may consider revising upward the SACP and raising the long-term counterparty credit rating, or consider revising upward the outlook on Promise, if the balance between its revenue and the costs of defaults and refunds of overcharged interest is highly likely to improve. We may also consider upward revisions if Promise's status within the group grows stronger, and its financial contribution to the group increases as conditions within the consumer finance industry stabilize further," S&P said. ==================== N E W Z E A L A N D ==================== YARROWS BAKERS: Workers Get 50c on the Dollar "Interim" Payout -------------------------------------------------------------- Fairfax NZ News reports that it wasn't all happy news for Yarrows workers this Christmas. The news agency relates that in a letter obtained by the Taranaki Daily News, the receivers of Yarrows The Bakers Ltd stated they had recovered enough funds to give an "interim distribution" to workers of 50 cents in the dollar of their total preferential claims. It is believed workers got the payout last week, the report notes. According to Fairfax NZ, Andrew Bethell of BDO said the letter was confidential and the focus needed to be on the fact there was expected to be a further distribution in the new year. Fairfax NZ relates that Mr. Bethell said the preferential claims related to such things as redundancy, holiday pay, deductions like Kiwisaver and "other pension-type schemes the company ran". "It's important to understand that the vast majority of them [Yarrows workers] still have the security of being employed and continued to be so with the purchaser," the report quotes Mr. Bethell as saying. The different components of the claims were listed in each individual worker's letter, the report notes. BDO will report back to Yarrows staff regarding any further payments at the end of January, Fairfax NZ adds. Yarrows the Bakers and two associated companies went into receivership in May 2011 when the company's directors could not reach agreement on a restructure proposal that involved selling its Australian business. At the time of receivership, Yarrows The Bakers had total liabilities of NZ$72.8 million, including NZ$55.2 million owed to Westpac. Founded in 1923, Yarrows (The Bakers) Limited is one of the last independent bakeries in New Zealand. It began exporting in the late 1970s and in 1996, won the contract for the Subway sandwich chain throughout Australasia. It produces 30,000 frozen dough rolls a week for Subway in New Zealand, Australia, and parts of Asia. =============== X X X X X X X X =============== * BOND PRICING: For the Week Dec. 19 to Dec. 23, 2011 ----------------------------------------------------- Issuer Coupon Maturity Currency Price ------ ------ -------- -------- ----- AUSTRALIA --------- ADVANCE ENERGY 9.50 01/04/2015 AUD 1.07 AINSWORTH GAME 8.00 12/31/2011 AUD 1.34 AMITY OIL LTD 10.00 10/31/2013 AUD 2.01 AUSTRALIAN COMM 3.00 07/29/2049 AUD 5.00 BECTON PROP GR 9.50 06/30/2012 AUD 0.22 CHINA CENTURY 12.00 09/30/2012 AUD 0.09 DIVERSA LTD 11.00 09/30/2014 AUD 0.13 EXPORT FIN & INS 0.50 12/16/2019 NZD 71.96 EXPORT FIN & INS 0.50 06/15/2020 AUD 69.97 EXPORT FIN & INS 0.50 06/15/2020 NZD 70.18 FIRST AUSTRALIAN 15.00 01/31/2012 AUD 0.20 GRIFFIN COAL MIN 9.50 12/01/2016 USD 63.00 IMF AUSTRALIA 10.25 12/31/2014 AUD 1.70 KIMBERLY METALS 10.00 08/05/2016 AUD 0.37 NEW S WALES TREA 0.50 09/14/2022 AUD 63.35 NEW S WALES TREA 0.50 10/07/2022 AUD 63.01 NEW S WALES TREA 0.50 10/28/2022 AUD 62.85 NEW S WALES TREA 0.50 11/18/2022 AUD 62.63 NEW S WALES TREA 0.50 12/16/2022 AUD 62.32 NEW S WALES TREA 0.50 02/02/2023 AUD 62.27 NEW S WALES TREA 0.50 03/20/2023 AUD 61.86 RESOLUTE MINING 12.00 12/31/2012 AUD 1.78 TREAS CORP VICT 0.50 08/25/2022 AUD 64.01 TREAS CORP VICT 0.50 11/12/2030 AUD 62.41 TREAS CORP VICT 0.50 11/12/2030 AUD 44.68 CHINA ----- CHINA GOV'T BOND 1.64 12/15/2033 CNY 70.82 HONG KONG --------- CHINA SOUTH CITY 13.50 01/14/2016 USD 72.15 CHINA SOUTH CITY 13.50 01/14/2016 USD 71.62 RESPARCS FUNDING 8.00 12/29/2049 USD 21.75 SINO-OCEAN LAND 10.25 12/31/2049 USD 68.75 SINO-OCEAN LAND 10.25 12/31/2049 USD 66.50 INDIA ----- GEMINI COMMUNICA 6.00 07/18/2012 EUR 50.48 JAIPRAKASH POWER 5.00 02/13/2015 USD 63.86 PRAKASH IND LTD 5.62 10/17/2014 USD 72.10 PUNJAB INFRA DB 0.40 10/15/2024 INR 27.19 PUNJAB INFRA DB 0.40 10/15/2025 INR 24.67 PUNJAB INFRA DB 0.40 10/15/2026 INR 22.41 PUNJAB INFRA DB 0.40 10/15/2027 INR 20.43 PUNJAB INFRA DB 0.40 10/15/2028 INR 18.66 PUNJAB INFRA DB 0.40 10/15/2029 INR 17.08 PUNJAB INFRA DB 0.40 10/15/2030 INR 15.67 PUNJAB INFRA DB 0.40 10/15/2031 INR 14.40 PUNJAB INFRA DB 0.40 10/15/2032 INR 13.25 PUNJAB INFRA DB 0.40 10/15/2033 INR 12.24 SHIV-VANI OIL 5.00 08/17/2015 USD 65.91 SUZLON ENERGY LT 5.00 04/13/2016 USD 51.99 VIDEOCON INDUS 6.75 12/16/2015 USD 69.42 JAPAN ----- AIFUL COPR 1.99 10/19/2015 JPY 37.20 JPN EXP HLD/DEBT 0.50 09/17/2038 JPY 62.35 JPN EXP HLD/DEBT 0.50 03/18/2039 JPY 61.67 TAKEFUJI CORP 9.20 04/15/2011 USD 5.25 TOKYO ELEC POWER 1.42 04/27/2015 JPY 74.25 TOKYO ELEC POWER 0.64 04/28/2015 JPY 74.00 TOKYO ELEC POWER 1.11 05/29/2015 JPY 74.87 TOKYO ELEC POWER 0.92 07/16/2015 JPY 73.50 TOKYO ELEC POWER 1.36 08/12/2015 JPY 74.37 TOKYO ELEC POWER 1.59 12/28/2015 JPY 72.62 TOKYO ELEC POWER 1.97 06/27/2016 JPY 71.50 TOKYO ELEC POWER 2.06 08/31/2016 JPY 72.75 TOKYO ELEC POWER 1.88 09/28/2016 JPY 70.25 TOKYO ELEC POWER 3.45 11/29/2016 JPY 74.50 TOKYO ELEC POWER 1.79 03/14/2017 JPY 72.03 TOKYO ELEC POWER 2.12 03/24/2017 JPY 69.05 TOKYO ELEC POWER 1.73 03/28/2017 JPY 71.59 TOKYO ELEC POWER 1.78 05/31/2017 JPY 70.83 TOKYO ELEC POWER 2.02 07/25/2017 JPY 71.50 TOKYO ELEC POWER 3.22 07/28/2017 JPY 72.37 TOKYO ELEC POWER 1.94 08/28/2017 JPY 70.41 TOKYO ELEC POWER 3.07 09/22/2017 JPY 70.75 TOKYO ELEC POWER 1.84 09/25/2017 JPY 69.41 TOKYO ELEC POWER 1.75 09/28/2017 JPY 69.55 TOKYO ELEC POWER 1.77 11/30/2017 JPY 64.87 TOKYO ELEC POWER 2.77 12/22/2017 JPY 69.50 TOKYO ELEC POWER 1.67 01/29/2018 JPY 67.30 TOKYO ELEC POWER 2.90 03/23/2018 JPY 69.25 TOKYO ELEC POWER 1.67 03/28/2018 JPY 63.87 TOKYO ELEC POWER 2.77 04/17/2018 JPY 68.62 TOKYO ELEC POWER 1.60 04/25/2018 JPY 63.37 TOKYO ELEC POWER 1.64 04/25/2018 JPY 63.62 TOKYO ELEC POWER 1.97 06/25/2018 JPY 64.25 TOKYO ELEC POWER 1.84 07/25/2018 JPY 66.84 TOKYO ELEC POWER 1.84 10/17/2018 JPY 63.75 TOKYO ELEC POWER 2.07 10/23/2018 JPY 63.25 TOKYO ELEC POWER 2.05 11/16/2018 JPY 63.25 TOKYO ELEC POWER 2.70 01/29/2019 JPY 66.00 TOKYO ELEC POWER 1.60 05/29/2019 JPY 61.25 TOKYO ELEC POWER 1.90 06/13/2019 JPY 61.37 TOKYO ELEC POWER 2.80 09/17/2019 JPY 63.75 TOKYO ELEC POWER 1.45 09/30/2019 JPY 59.50 TOKYO ELEC POWER 1.37 10/29/2019 JPY 66.88 TOKYO ELEC POWER 2.05 10/29/2019 JPY 62.94 TOKYO ELEC POWER 1.81 02/28/2020 JPY 64.75 TOKYO ELEC POWER 1.48 04/28/2020 JPY 62.10 TOKYO ELEC POWER 1.39 05/28/2020 JPY 61.28 TOKYO ELEC POWER 1.31 06/24/2020 JPY 60.55 TOKYO ELEC POWER 1.94 07/24/2020 JPY 64.42 TOKYO ELEC POWER 1.22 07/29/2020 JPY 59.66 TOKYO ELEC POWER 1.15 09/08/2020 JPY 58.87 TOKYO ELEC POWER 1.63 07/16/2021 JPY 58.35 TOKYO ELEC POWER 2.34 09/29/2028 JPY 55.12 TOKYO ELEC POWER 2.40 11/28/2028 JPY 55.00 TOKYO ELEC POWER 2.20 02/27/2029 JPY 54.25 TOKYO ELEC POWER 2.11 12/10/2029 JPY 53.87 TOKYO ELEC POWER 1.95 07/29/2030 JPY 52.73 TOKYO ELEC POWER 2.36 05/28/2040 JPY 52.60 MALAYSIA -------- ADVANCED SYNERY 2.00 01/26/2018 MYR 0.10 ASTRAL SUPREME 3.00 08/0/2021 MYR 0.09 CRESENDO CORP B 3.75 01/11/2016 MYR 1.41 DUTALAND BHD 7.00 04/11/2013 MYR 0.42 DUTALAND BHD 7.00 04/11/2013 MYR 0.87 EASTERN & ORIENT 8.00 07/25/2011 MYR 1.38 ENCORP BHD 6.00 02/17/2016 MYR 0.89 KUMPULAN JETSON 5.00 11/27/2012 MYR 1.23 LION DIVERSIFIED 4.00 12/17/2013 MYR 0.62 MALTON BHD 6.00 06/30/2018 MYR 0.83 MITHRIL BHD 3.00 04/05/2012 MYR 0.65 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.23 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.23 OLYMPIA INDUSTRI 6.00 04/11/2013 MYR 0.42 PANTECH GROUP 7.00 12/21/2017 MYR 0.09 PRESS METAL BHD 6.00 08/22/2019 MYR 1.81 PUNCAK NIAGA HLD 2.50 11/18/2016 MYR 0.53 REDTONE INTL 2.75 03/04/2020 MYR 0.10 RUBBEREX CORP 4.00 08/14/2012 MYR 0.75 SCOMI ENGINEERING 4.00 03/19/2013 MYR 0.59 SCOMI GROUP 4.00 12/14/2012 MYR 0.07 SENAI-DESARU EXP 1.35 06/30/2027 MYR 44.94 SENAI-DESARU EXP 1.35 12/31/2027 MYR 43.66 SENAI-DESARU EXP 1.35 06/30/2028 MYR 42.37 SENAI-DESARU EXP 1.35 06/29/2029 MYR 39.90 SENAI-DESARU EXP 1.35 06/30/2031 MYR 34.45 TRADEWINDS CORP 2.00 02/26/2016 MYR 0.81 TRADEWINDS PLANT 3.00 02/28/2016 MYR 1.60 TRC SYNERGY 5.00 01/20/2012 MYR 1.67 WAH SEONG CORP 3.00 05/21/2012 MYR 2.30 WIJAYA BARU GLOB 7.00 09/17/2012 MYR 0.50 YTL CEMENT BHD 5.00 11/10/2015 MYR 2.31 NEW ZEALAND ----------- BLUE STAR GROUP 9.10 09/15/2015 NZD 7.00 DORCHESTER PACIF 5.00 06/30/2013 NZD 71.16 FLETCHER BUILDING 8.50 03/15/2015 NZD 6.65 INFRATIL LTD 8.50 09/15/2013 NZD 8.20 INFRATIL LTD 8.50 11/15/2015 NZD 8.60 INFRATIL LTD 4.97 12/29/2049 NZD 53.00 KIWI INCOME PROP 8.95 12/20/2014 NZD 1.07 NEW ZEALAND POST 7.50 11/15/2039 NZD 61.68 NZF GROUP 6.00 03/15/2016 NZD 2.00 TOWER CAPITAL 8.50 04/15/2014 NZD 1.02 TRUSTPOWER LTD 8.50 09/15/2012 NZD 7.15 TRUSTPOWER LTD 8.50 03/15/2014 NZD 6.65 UNI OF CANTERBUR 7.25 12/15/2019 NZD 0.91 SINGAPORE --------- BAKRIE TELECOM 11.50 05/07/2015 USD 63.25 BAKRIE TELECOM 11.50 05/07/2015 USD 62.25 BLD INVESTMENT 8.62 03/23/2015 USD 74.81 BLUE OCEAN 11.00 06/28/2012 USD 33.00 CAPITAMALLS ASIA 1.00 01/21/2012 SGD 0.99 CAPITAMALLS ASIA 2.15 01/21/2014 SGD 1.00 DAVOMAS INTL FIN 11.00 12/08/2014 USD 42.25 F&N TREASURY PTE 2.48 03/28/2016 SGD 0.96 F&N TREASURY PTE 3.15 03/28/2018 SGD 0.99 SENGKANG MALL 4.00 11/20/2012 SGD 0.45 SENGKANG MALL 8.00 11/20/2012 SGD 0.45 UNITED ENG LTD 1.00 03/03/2014 SGD 1.20 WBL CORPORATION 2.50 06/10/2014 SGD 1.20 YANLORD LAND GRP 9.50 03/29/2018 USD 75.00 YANLORD LAND GRP 10.62 03/29/2018 USD 74.21 YANLORD LAND GRP 10.62 02/27/2015 USD 74.33 SOUTH KOREA ----------- CN 1ST ABS 8.00 02/27/2015 KRW 31.76 CN 1ST ABS 8.30 11/27/2015 KRW 33.01 EX-IMP BK KOREA 0.50 10/23/2017 KRW 61.28 EX-IMP BK KOREA 0.50 12/22/2017 KRW 59.52 GREAT KD 1ST ABS 15.00 08/19/2014 KRW 30.72 HANJIN SHIPPING 4.00 07/20/2015 KRW 74.96 HYUNDAI SWISS BK 7.90 07/23/2015 KRW 70.14 KOREA DEVELOPMENT 7.05 04/28/2012 KRW 71.00 SRI LANKA --------- SRI LANKA GOVT 6.20 08/01/2020 LKR 70.83 SRI LANKA GOVT 5.35 03/01/2026 LKR 56.50 ********* 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. *** End of Transmission ***