/raid1/www/Hosts/bankrupt/TCRAP

/raid1/www/Hosts/bankrupt/TCRAP_Public/120206.mbx T R O U B L E D C O M P A N Y R E P O R T E R A S I A P A C I F I C Monday, February 6, 2012, Vol. 15, No. 26 Headlines A U S T R A L I A GOLDEN SPARROW: Supreme Court Enters Wind Up Order for Firm RAPTIS GROUP: Says ATO Only Stumbling Block on Comeback Plan ROCKY POINT: Receiver Puts Electricity Plant Up For Sale H O N G K O N G BIG DRAGON: Creditors Get HK$10,060 Recovery on Claims CHESCON LIMITED: Court Enters Wind-Up Order DAILY RACK: Court Enters Wind-Up Order GOOD SUCCESS: Briscoe and Hill Step Down as Liquidators GRAND CHINA: Court to Hear Wind-Up Petition on Feb. 22 GRANDBLE LIMITED: Court to Hear Wind-Up Petition on Feb. 22 HELIIX LIMITED: Court Enters Wind-Up Order HELTECH INTERNATIONAL: Court Enters Wind-Up Order POLYSOURCES WORLDWIDE: Court Enters Wind-Up Order MAN PO: Court to Hear Wind-Up Petition on March 21 POWER OF PRODUCTION: Court to Hear Wind-Up Petition on March 28 RECYCLE DEVELOPMENT: Haughey and Lai Appointed as Liquidators UNION BRIDGE: Court Enters Wind-Up Order WAH YICK: Creditors Get 100% Recovery on Claims YICK SUN: Court to Hear Wind-Up Petition on Feb. 15 I N D I A NATIONAL WOOD: CRISIL Assigns 'CRISIL B' Rating to INR30MM Loan NIRMAL INTL': CRISIL Assigns 'CRISIL B' Rating to INR5.5MM Loan PIONEER MOTORS: CRISIL Rates INR4.5 Million Loan at 'CRISIL BB+' RAJ INTERNATIONAL: CRISIL Rates INR180MM Loan at 'CRISIL B+' RAJLAXMI CONSTRUCTIONS: CRISIL Cuts Cash Credit Rating to 'D' RASHI GRANITE: CRISIL Assigns 'CRISIL BB-' Rating to INR40MM Loan SATPAL STRIPS: CRISIL Assigns 'CRISIL B+' Rating to INR40MM Loan SALASAR TECHNO: CRISIL Cuts Rating on INR300MM Loan to 'BB+' SHREE KRISHNA: Delays in Loan Payment Cues CRISIL Junk Rating SKYWORLD EXIM: CRISIL Puts 'CRISIL B+' Rating on INR150MM Loan S. V. ENTERPRISE: CRISIL Assigns 'B+' Rating to INR32.5MM Loan VEER TRADING: CRISIL Rates INR100 Million Loan at 'CRISIL B' VITECH EQUIPMENTS: CRISIL Puts 'BB' Rating on INR6.3MM Loan J A P A N OLYMPUS CORP: May Snub Fujifilm Proposed Tie Up N E W Z E A L A N D CRITERION GROUP: In Receivership; No Redundancy for 180 Workers LOMBARD FINANCE: Judge Reserves Decision in Directors' Case SOUTH CANTERBURY: Sells 33.6% Stake in Dairy Holdings for NZ56-MM - - - - - ================= A U S T R A L I A ================= GOLDEN SPARROW: Supreme Court Enters Wind Up Order for Firm ----------------------------------------------------------- The Australian Securities & Investment Commission said an unlicensed financial planning business based on the Gold Coast has been wound up following an application by ASIC to the Supreme Court of Queensland. ASIC alleged Golden Sparrow Pty Ltd, GS Contracting Pty Ltd, and Michelle Margaret Bruhn operated an unlicensed and fraudulent financial services business, defrauding 36 investors in excess of AUD350,000. The court made declarations on Jan. 30, 2012, that Golden Sparrow, GS Contracting, and Ms. Bruhn carried on a financial services business without holding an Australian financial services (AFS) licence, as required under the Corporations Act 2001. The court also ordered that: * Golden Sparrow and GS Contracting be wound up; * William Fletcher -- bfletcher@bris.bentleys.com.au -- and Katherine Barnet -- kbarnet@bcr.bentleys.com.au -- of Bentleys Corporate Recovery Pty Ltd be appointed as the liquidators of the companies; and * Ms. Bruhn, Golden Sparrow and GS Contracting be restrained from carrying on a financial services business without holding an AFS licence. ASIC alleged that Golden Sparrow used cold calling and a Web site to induce investors to deposit funds into a number of bank accounts held in the names of Golden Sparrow and GS Contracting with the promise that the funds would used to buy shares on behalf of the investors and generate returns of between 1% and 3% per week. ASIC further alleged that Ms. Bruhn was the sole director of these two companies and withdrew the money from company bank accounts. ASIC's investigation found that, between mid-August and November 2011, approximately AUD350,000 was deposited by investors into these accounts. During the same period of time, approximately AUD300,000 was withdrawn in cash. "ASIC's investigation into this matter continues. This action follows interim orders obtained by ASIC in November 2011 to prevent the business from continuing to operate. "ASIC continues to work with the Queensland Police Service and the Australian Crime Commission on this and similar cases of investment fraud," the regulator said. RAPTIS GROUP: Says ATO Only Stumbling Block on Comeback Plan ------------------------------------------------------------ Lucy Ardern at Gold Coast Bulletin reports that the Australian Tax Office appears to be the only real stumbling block to the Raptis Group beginning to develop on the Gold Coast again. The Bulletin relates that the company issued a statement last week which highlighted how the ATO had failed to approve the distribution of money and shares -- despite the fact the request had been made by the Raptis Group back in June. The ATO asked for further information from the company in October, but the Raptis Group supplied the details within a few days and has been waiting for a result since then, according to the report. The company has also been frustrated by delays in a decision from the Federal Court on its appeal to eliminate a proof of debt amount claimed by the ATO, which was heard on March 1, the Bulletin relates. According to the report, the determination of Raptis Group chairman and CEO Jim Raptis to "bring the group back under the control of shareholders" was made clear in the statement. "He is focused on delivering the best possible outcome for the shareholders and creditors. These creditors are to be our future shareholders under the deed of arrangement," the Bulletin cited Raptis' statement. The company revealed it was exploring potential development opportunities and was keen to start work on projects. "In anticipation of the Group's reinstatement, funds will be made available to identify and commence new development opportunities." About Raptis Group Based in Sydney, Australia, Raptis Group Limited (ASX:RPG) -- http://www.raptis.com/-- engaged in property development, property investment, residential property management and resort hotel operations. Its projects include Platinum on the river Brisbane, Southport Central Tower 1 Southport Gold Coast and Southport Central Tower 2 Southport Gold Coast. * * * The Troubled Company Reporter-Asia Pacific reported on Feb. 5, 2009, that Raptis Group appointed Brian Silvia and Andrew Cummins of BRI Ferrier (NSW) Pty Ltd as administrators to the company. Raptis Group has more than 90 subsidiary entities, with all assets having been mortgaged to 27 banks and financiers owed in excess of AUD940 million, Mr. Silvia said. Raptis Group, according to The Australian, has more than AUD1 billion in total liabilities. The TCR-AP, citing The Australian, reported on April 2, 2009, that Raptis Group's creditors approved a restructure plan. The proposed deed of company arrangement (DOCA) was approved on March 31, 2009, by two meetings of creditors on the Gold Coast. The DOCA involves a debt-for-equity swap that will result in creditors owning 40 million shares in the publicly listed group. It also paves the way for the group's relisting on the Australian Stock Exchange, after being suspended since Sept. 12, 2008. ROCKY POINT: Receiver Puts Electricity Plant Up For Sale -------------------------------------------------------- Lucy Ardern at Gold Coast Bulletin reports that Rocky Point Green Power will be offered for sale this month and the receiver is hoping a buyer will kick-start operations and ensure the future of the nearby mill and sugar industry on the northern Gold Coast. Receiver Jason Preston -- jpreston@mcgrathnicol -- of McGrathNicol, is moving quickly after being appointed last week and plans to launch a marketing campaign soon for the co- generation plant, which supplies power to Rocky Point Sugar Mill, the Bulletin says. According to the report, Mr. Preston said he was hopeful of finding a buyer to repair the co-generation plant and make it operational again. The Bulletin recalls that there were two major breakdowns at the plant last year and it has not operated since late December. The plant employs about 35 people but Rocky Point Green Power's financial troubles could impact on up to 200 jobs because of its connection with the Rocky Point Sugar Mill, the report states. The report says Mill boss David Heck is working with the receivers in the hope of restarting mill operations in time for the crush in June. But he made no guarantees and said Rocky Point Green Power was closely tied to the mill, with several agreements between the companies, the Bulletin notes. The receiver was appointed by Rocky Point Green Power's only secured creditor, the company's financier and a subsidiary of Babcock & Brown. It is understood Rocky Point Green Power owes the finance company about AUD6 million. The amount owed to unsecured creditors is unknown, as is the number of parties owed money by Rocky Point Green Power. Rocky Point Green Power is a Queensland-based electricity generation plant. ================ H O N G K O N G ================ BIG DRAGON: Creditors Get HK$10,060 Recovery on Claims ------------------------------------------------------ Big Dragon Asia Limited, which is in compulsory liquidation, will declare dividend to its creditors on or after Feb. 10, 2012. The company will pay HK$10,060 for ordinary claims. The company's liquidators are: Kong Chi How Johnson Lo Siu Ki 25th Floor, Wing On Centre 111 Connaught Road Central, Hong Kong CHESCON LIMITED: Court Enters Wind-Up Order ------------------------------------------- The High Court of Hong Kong entered an order on Jan. 18, 2012, to wind up the operations of Chescon Limited. The official receiver is Teresa S W Wong. DAILY RACK: Court Enters Wind-Up Order -------------------------------------- The High Court of Hong Kong entered an order on Jan. 5, 2012, to wind up the operations of Daily Rack Electronics Company Limited. The company's liquidator is: Mat Ng JLA Asia Limited 20/F Henley Building 5 Queen's Road Central, Hong Kong GOOD SUCCESS: Briscoe and Hill Step Down as Liquidators ------------------------------------------------------- Stephen Briscoe and Nicholas Timothy Cornforth Hill stepped down as liquidators of Good Success Catering Group Limited on Jan. 4, 2012. GRAND CHINA: Court to Hear Wind-Up Petition on Feb. 22 ------------------------------------------------------ A petition to wind up the operations of Grand China Shipping (Hong Kong) Company Limited will be heard before the High Court of Hong Kong on Feb. 22, 2012, at 9:30 a.m. Tumac Corporation filed the petition against the company on Dec. 21, 2011. The Petitioner's solicitors are: Ince & Co Room 3801-06, 38th Floor ICBC Tower, Citibank Plaza 3 Garden Road, Hong Kong GRANDBLE LIMITED: Court to Hear Wind-Up Petition on Feb. 22 ----------------------------------------------------------- A petition to wind up the operations of Grandble Limited will be heard before the High Court of Hong Kong on Feb. 22, 2012, at 9:30 a.m. The Petitioner's solicitor: Fanny Fung Government Counsel Counsel for the petitioner Department of Justice 2nd Floor, High Block Queensway Government Offices 66 Queensway, Hong Kong HELIIX LIMITED: Court Enters Wind-Up Order ------------------------------------------ The High Court of Hong Kong entered an order on Jan. 16, 2012, to wind up the operations of Heliix Limited. The company's liquidator is: Mat Ng JLA Asia Limited 20/F Henley Building 5 Queen's Road Central, Hong Kong HELTECH INTERNATIONAL: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Hong Kong entered an order on Jan. 4, 2012, to wind up the operations of Heltech International Limited. The company's liquidator is: Mat Ng JLA Asia Limited 20/F Henley Building 5 Queen's Road Central, Hong Kong POLYSOURCES WORLDWIDE: Court Enters Wind-Up Order ------------------------------------------------- The High Court of Hong Kong entered an order on Jan. 16, 2012, to wind up the operations of Polysources Worldwide Limited. The company's liquidator is: Mat Ng JLA Asia Limited 20/F Henley Building 5 Queen's Road Central, Hong Kong MAN PO: Court to Hear Wind-Up Petition on March 21 -------------------------------------------------- A petition to wind up the operations of Man Po International Holdings Limited will be heard before the High Court of Hong Kong on March 21, 2012, at 9:30 a.m. Overseas Associates Limited filed the petition against the company on Jan. 17, 2012. The Petitioner's solicitors are: Edmund W.H. Chow & Co Rooms 204-206, 2nd Floor Takshing House No. 20 Des Voeux Road Central, Hong Kong POWER OF PRODUCTION: Court to Hear Wind-Up Petition on March 28 --------------------------------------------------------------- A petition to wind up the operations of Power of Production Company Limited will be heard before the High Court of Hong Kong on March 28, 2012, at 9:30 a.m. Neo Tee Wan trading as Curtex Trading Company filed the petition against the company on Jan. 9, 2012. The Petitioner's solicitors are: Keith Lam Lau & Chan 5th - 7th Floors, The Chinese Club Building 21-22 Connaught Road Central Central, Hong Kong RECYCLE DEVELOPMENT: Haughey and Lai Appointed as Liquidators ------------------------------------------------------------- Messrs. Darach E. Haughey and Lai Kar Yan (Derek) on Nov. 2, 2011, were appointed as liquidators of Recycle Development Limited. The liquidators may be reached at: Messrs. Darach E. Haughey Lai Kar Yan (Derek) 35/F One Pacific Place 88 Queensway, Hong Kong UNION BRIDGE: Court Enters Wind-Up Order ---------------------------------------- The High Court of Hong Kong entered an order on Jan. 18, 2012, to wind up the operations of Union Bridge Investment Limited. The official receiver is Teresa S W Wong. WAH YICK: Creditors Get 100% Recovery on Claims ----------------------------------------------- Wah Yick Company Limited, which is in compulsory liquidation, will pay the first and final dividend to its creditors on or after Feb. 28, 2012. The company will pay 100% and 4% for ordinary claims. The company's liquidators are: Kong Chi How Johnson Lo Siu Ki 25th Floor, Wing On Centre 111 Connaught Road Central, Hong Kong YICK SUN: Court to Hear Wind-Up Petition on Feb. 15 --------------------------------------------------- A petition to wind up the operations of Yick Sun Finance Company Limited will be heard before the High Court of Hong Kong on Feb. 15, 2012, at 9:30 a.m. Tai Shuk Wa filed the petition against the company on Dec. 6, 2012. The Petitioner's solicitors are: Deannie Yew & Associates Unit 1501, 15th Floor Hang Seng Mongkok Building 677 Nathan Road Kowloon, Hong Kong ========= I N D I A ========= NATIONAL WOOD: CRISIL Assigns 'CRISIL B' Rating to INR30MM Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable' rating to the bank facilities of National Wood Products. Facilities Ratings ---------- ------- INR50 Million Cash Credit CRISIL B/Stable (Assigned) INR30 Million Long-Term Loan CRISIL B/Stable (Assigned) INR10 Million Proposed Long- CRISIL B/Stable (Assigned) Term Bank Loan Facility The rating reflects NWP's weak financial risk profile, marked by a high gearing and weak debt protection metrics, and small scale of, and working-capital-intensive, operations. These rating weaknesses are partially offset by the extensive experience of NWP's promoter in the plywood industry. Outlook: Stable CRISIL believes that NWP will continue to benefit over the medium term from its promoter's extensive industry experience. The outlook may be revised to 'Positive' if NWP scales up its operations, driven by higher-than-expected growth in its revenues, and improves its capital structure and debt protection metrics on a sustained basis, supported by fresh equity infusion by the promoter. Conversely, the outlook may be revised to 'Negative' if NWP faces pressure on its revenues and profitability, or if it undertakes a larger-than-expected, debt- funded capital expenditure programme. About National Wood Set up by Mr. Abdul Muneer, NWP is a proprietary concern that manufactures veneer, different varieties of plywood (such as boiling water resistant, moisture resistant, marine, and fire retardant), and block doors and plush doors. Its manufacturing facility in Kasargode (Kerala) has capacity to manufacture 15 million square feet of plywood per annum. NWP sells its plywood under the brand name, Trojan. NWP is a part of the Mohammad Arabi Kumbla group, which has a longstanding presence in the plywood timber industry. NWP reported a profit after tax (PAT) of INR0.2 million on net sales of INR11 million for 2010-11 (refers to financial year, April 1 to March 31). NIRMAL INTL': CRISIL Assigns 'CRISIL B' Rating to INR5.5MM Loan --------------------------------------------------------------- CRISIL has assigned its 'CRISIL B/Stable/CRISILA4' ratings to the bank facilities of Nirmal International. Facilities Ratings ---------- ------- INR5.5 Million Rupee Term Loan CRISIL B/Stable (Assigned) INR5 Million Cash Credit CRISIL B/Stable (Assigned) INR40 Million Bill Discounting CRISIL A4 (Assigned) INR25 Million Packing Credit CRISIL A4 (Assigned) The ratings reflect Nirmal's weak financial risk profile, marked by small net worth and weak debt protection metrics, small scale of operations in a highly fragmented industry, and large working capital requirements. These rating weaknesses are partially offset by the extensive experience of Nirmal's management in the textile industry. Outlook: Stable CRISIL believes that Nirmal will continue to benefit over the medium term from the extensive industry experience of its proprietor. The outlook may be revised to 'Positive' in case the firm's scale of operations and profitability improves considerably, leading to better-than-expected cash accruals. Conversely, the outlook may be revised to 'Negative' in case of an increased pressure on the firm's financial risk profile, especially liquidity, because of larger-than-expected working capital requirements and debt-funded capital expenditure plan, or large quantum of withdrawals from the firm by the proprietor. About Nirmal International Established in 1998, Nirmal is a proprietorship firm engaged in manufacturing handmade and machine-made carpets, bath mats, rugs and cushion covers. The firm derives almost 90 per cent of its total revenues from exports to Europe, South Africa and the Middle East. The firm has a manufacturing unit located in Panipat in Haryana. Nirmal's profit after tax (PAT) and net sales are estimated at INR4.7 million and INR245.3 million for 2010-11 (refers to financial year, April 1 to March 31); the firm reported a PAT of INR3.5 million on net sales of INR182.6 million for 2009-10. PIONEER MOTORS: CRISIL Rates INR4.5 Million Loan at 'CRISIL BB+' ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB+/Stable' rating to the bank facilities of Pioneer Motors (Kannur) Pvt Ltd, part of the Pioneer Group. Facilities Ratings ---------- ------- INR4.5 Million Term Loan CRISIL BB+/Stable (Assigned) INR70 Million Cash Credit CRISIL BB+/Stable (Assigned) INR2.2 Million Proposed Long- CRISIL BB+/Stable (Assigned) Term Bank Loan Facility The rating reflects the benefits that the Pioneer Group derives from its diversified product portfolio and its promoters' extensive industry experience in the automobile dealership business. These rating strengths are partially offset by the Pioneer Group's average financial risk profile marked by a small net worth and a high gearing, and susceptibility to risks related to low bargaining power with principals and to intense competition in the automobile dealership market. For arriving at the ratings, CRISIL has consolidated the business and financial risk profiles of PMPL and its subsidiary Wayanad Vehicles Pvt Ltd. This is because both the entities are in the same line of business and share operational linkages with each other. These entities are together, hereinafter, referred to as the Pioneer Group. Outlook: Stable CRISIL believes that the Pioneer Group will continue to benefit over the medium term from its longstanding relationship with its principals - Piaggio Vehicles Pvt Ltd and Honda Motorcycles and Scooters India Ltd. The outlook may be revised to 'Positive' if there is a significant increase in the group's scale of operations and net worth, driven by equity infusion by the promoters. Conversely, the outlook may be revised to 'Negative' if the Pioneer Group reports significant decline in its volumes or operating margin, or if the group undertakes a larger-than- expected, debt-funded capital expenditure programme. About the Group PMPL, incorporated in 1997, is an authorised dealer of vehicles and spare parts manufactured by Piaggio and HMSI for the Kannur district (Kerala). Wayanad Vehicles, a subsidiary of PMPL, is one of the dealers for Piaggio vehicles for the Kasargode district (Kerala). The Pioneer Group has four Honda two-wheeler showrooms spread across Kannur, cumulatively measuring 5250 square feet (sq ft), and three Piaggio showrooms (two in Kannur and one in Kasargode), cumulatively measuring 5500 sq ft. The Pioneer Group has an equal number of service stations-cum-workshops, located adjoining each of the showrooms. The Pioneer Group reported a profit after tax (PAT) of INR10.6 million on net sales of INR767.7 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR13.6 million on net sales of INR709.0 million for 2009-10. RAJ INTERNATIONAL: CRISIL Rates INR180MM Loan at 'CRISIL B+' ------------------------------------------------------------ CRISIL has downgraded its ratings on the bank facilities of Raj International Ltd to 'CRISIL B+/Negative/CRISIL A4' from 'CRISIL BB-/Stable/CRISIL A4+'. Facilities Ratings ---------- ------- INR180.0 Million Cash Credit CRISIL B+/Negative (Downgraded from 'CRISIL BB-/Stable') INR49.9 Million Term Loan CRISIL B+/Negative (Downgraded from 'CRISIL BB-/Stable') INR520.0 Million Foreign Bill CRISIL A4 (Downgraded from Discounting 'CRISIL A4+') The rating downgrade reflects weakening in the company's liquidity despite enhancement in bank lines. The deterioration in liquidity has been caused by significant increase in RIL's debtor collection period. The company's working capital requirements have increased considerably because of high receivable levels during 2011-12 (refers to financial year, April 1 to March 31). This increase in working capital requirements has led to full utilization of RIL's bank lines over the 12 months. RIL also has working-capital-intensive operations because of higher debtor collection period; moreover, it has geographical and customer concentration in the jewelry segment, which may negatively impact its revenue profile. The company, however, benefits from its moderate financial risk profile marked by a comfortable net worth and conservative capital structure. For arriving at its ratings, CRISIL has analysed the business and financial risk profiles of RIL, Guru-G Tex Print Pvt Ltd and Ugam Impex Ltd on a standalone basis. In the past, CRISIL had combined the business and financial risk profiles of RIL with those of RIL's other group companies GTPPL and UIL. The change in analytical approach is driven by strong stance taken by the management of these companies that there would be no financial support between RIL, UIL, and GTPPL, and that all the transactions would be done at an arm's length. Henceforth, these companies would be operating on a standalone basis only. Outlook: Negative CRISIL expects RIL's liquidity to remain stretched over the medium term marked by its working-capital-intensive operations as a result of long debtor collection period. The ratings may be downgraded if RIL's liquidity weakens further because of increasing working capital requirements. The outlook may be revised to 'Stable' in case of significant improvement in the company's liquidity profile. About Raj International RIL (formerly, Raj Synthetics) was set up as a partnership firm by Mr. Jagdish Bodra, Mr. Rajesh Bodra, and Mr. Ashok Jalani in 1992. It was reconstituted as a private limited company in 1996. RIL has various business divisions comprising textile trading, diamond trading, gold jewellery manufacturing, and wind power generation. In 2007, the company got its current name because of its changing business risk profile, and its corporate status was changed to a closely held public limited company. RIL reported a profit after tax (PAT) of INR187 million on net sales of INR17 billion for 2010-11, against a PAT of INR80 million on net sales of INR6.3 billion for 2009-10. RAJLAXMI CONSTRUCTIONS: CRISIL Cuts Cash Credit Rating to 'D' ------------------------------------------------------------- CRISIL has downgraded its ratings on the bank facilities of Rajlaxmi Constructions Ltd to 'CRISIL D/CRISIL D' from 'CRISIL C/ CRISIL A4'. Facilities Ratings ---------- ------- INR193.40 Million Cash Credit CRISIL D (Downgraded from CRISIL C) INR16.50 Million Standby Line CRISIL D (Downgraded from of Credit CRISIL C) INR16.60 Million Corporate Loan CRISIL D (Downgraded from CRISIL C) INR150.00 Million Bank Guarantee CRISIL D (Downgraded from CRISIL A4) The downgrade reflects instances of delay by Rajlaxmi in servicing its term debt and equipment finances; the delays have been caused by the company's weak liquidity mainly because of the stretched receivables position. The receivables of the company increased from INR 212.55 million in 2009-10 to INR 267 million in 2010-11 with INR 128.78 million outstanding for more than six months. This has been despite a dip of around 3 per cent in turnover in 2010-11 as compared to the previous year. RCL also has working-capital-intensive operations. These rating weaknesses are partially offset by RCL's established position in the construction industry, healthy order book, and above average financial risk profile, marked by a healthy net worth, low gearing, and moderate debt protection metrics. About Rajlaxmi Constructions Established in 1982 by Mr. S N Sahoo, RCL undertakes road, bridge, irrigation, and other civil and infrastructure construction projects. The company's operations are limited to Orissa. RCL has also undertaken a residential project in Jajpur Keonjhar Road (Orissa). RCL reported a profit after tax (PAT) of INR35.78 million on net sales of INR1108.57 million for 2010-11 (refers to financial year, April 1 to March 31), as against a PAT of INR54.87 million on net sales of INR1145.51 million for 2009-10. RASHI GRANITE: CRISIL Assigns 'CRISIL BB-' Rating to INR40MM Loan ----------------------------------------------------------------- CRISIL has assigned its 'CRISIL BB-/Stable/CRISIL A4+' ratings to the bank facilities of Rashi Granite Exports India Pvt Ltd. Facilities Ratings ---------- ------- INR40 Mil. Export Packing Credit CRISIL BB-/Stable (Assigned) INR30 Mil. Proposed Long-Term CRISIL BB-/Stable (Assigned) Bank Loan Facility INR10 Million Bank Guarantee CRISIL A4+ (Assigned) INR30 Million Letter of Credit CRISIL A4+ (Assigned) The ratings reflect RGPL's moderate financial risk profile, marked by low gearing, and the extensive industry experience of the company's promoters in the granite processing business. These rating strengths are partially offset by RGPL's modest scale of operations with stagnant revenues, susceptibility to foreign exchange movements, working-capital-intensive operations, and exposure to risks related to execution of debt-funded capital expenditure (capex) and subsequent ramp-up of operations. Outlook: Stable CRISIL believes that RGPL will continue to benefit from its promoters' extensive industry experience, and will maintain its moderate financial risk profile supported by low gearing over the medium term. The outlook may be revised to 'Positive' in case the company reports higher-than-expected growth in its scale of operations and profitability leading to overall improvement in its business risk profile. Conversely, the outlook may be revised to 'Negative' in case of delays in stabilisation of capital expenditure, or significant time and cost overruns, resulting in substantial deterioration in its financial risk profile. About Rashi Granite Incorporated in 2002, RGPL is a completely export-oriented unit (EOU) based in Bengaluru (Karnatak). It processes and exports granite slabs and tiles. The company mainly exports to the US, Europe, and the Middle East. RGPL's capacity is 50 containers per month which has been utilised to the extent of 80 per cent. The company's EOU status is valid till March 31, 2012. RGPL reported a profit after tax (PAT) of INR13.6 million on net sales of INR255.7 million for 2010-11 (refers to financial year, April 1 to March 31), against a PAT of INR7.8 million on net sales of INR252.3 million for 2009-10. SATPAL STRIPS: CRISIL Assigns 'CRISIL B+' Rating to INR40MM Loan ---------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Satpal Strips Pvt Ltd, part of the Satpal group. Facilities Ratings ---------- ------- INR40.0 Million Cash Credit CRISIL B+/Stable (Assigned) INR29.0 Million Term Loan CRISIL B+/Stable (Assigned) The rating reflects the Satpal group's weak financial risk profile, marked by a high gearing, small net worth, and weak debt protection metrics, small scale of operations, and vulnerability to volatility in steel prices. These rating weaknesses are partially offset by the extensive experience of the Satpal group's promoters in the steel industry and established clientele. For arriving at the rating, CRISIL has combined the business and financial risk profiles of SSPL and Satpal Metals Pvt Ltd, together referred to as the Satpal group. The consolidated approach is because both the entities are under a common management and SMPL sells products manufactured by SSPL. These entities also have significant business and financial linkages as the entire raw material requirement of SMPL is met by SSPL. Outlook: Stable CRISIL believes that the Satpal group will continue to benefit from its promoters' extensive industry experience and established relationship with its customers, over the medium term. The outlook may be revised to 'Positive' if the group ramps up its revenues and profitability and improves its liquidity and financial risk profile through more-than-expected cash accrual or infusion of fresh promoters' equity. Conversely, the outlook may be revised to 'Negative' if the Satpal group's liquidity weakens significantly, most likely because of lower-than-expected cash accruals, or if it undertakes more-than-expected debt-funded capital expenditure programme, thereby further weakening its capital structure. About the Group Incorporated in 2007, SSPL is promoted by Mr. Amit Jain and Mr. Atul Jain. The company manufactures cold-rolled (CR) coils, strips, and sheets. In 2010-11 (refers to financial year, April 1 to March 31), the promoters forward-integrated into manufacturing ERW (Electric Resistance Welding) pipes under SMPL. The Satpal group's manufacturing facility is located in Gobindgarh (Punjab) and has capacity of 45,000 tonnes per annum (tpa) of CR coil/strips and 27,000 tpa of ERW pipes. The group sells Mild Steel strips and coils to various tubes and pipe manufacturers and also through a network of dealers in Punjab, Delhi, Maharashtra, Uttar Pradesh, Karnataka, and Gujarat. The Satpal group reported a profit after tax (PAT) of INR2.7 million on an operating income of INR707.6 million for 2010-11, as against a PAT of INR1.8 million on an operating income of INR698.1 million for 2008-09. SALASAR TECHNO: CRISIL Cuts Rating on INR300MM Loan to 'BB+' ------------------------------------------------------------ CRISIL has downgraded its rating on the long-term bank facility of Salasar Techno Engineering Pvt Ltd, part of the Salasar group, to 'CRISIL BB/Stable' from 'CRISIL BB+/ Stable' while reaffirming the rating on its short-term bank facility at 'CRISIL A4+'. Facilities Ratings ---------- ------- INR300 Million Cash Credit CRISIL BB/Stable (Downgraded from 'CRISIL BB+/Stable') INR75 Million Bank Guarantee CRISIL A4+ (Reaffirmed) The downgrade reflects expected deterioration in the Salasar group's liquidity and financial risk profile due to unanticipated debt-funded capital expenditure programme, leading to debt repayment obligations; and larger-than-expected working capital requirements amid expected depressed cash accruals due to the start-up nature of the group's steel unit. For arriving at the ratings, CRISIL has combined the financial risk profiles of STEPL and Salasar Stainless Ltd, together referred to as the Salasar group. The consolidated approach is because both the companies are managed by the same promoters, though they are into different businesses. Furthermore, STEPL has given corporate guarantee for the bank lines of SSL. During the time of initial rating, CRISIL had not consolidated the financial risk profiles of STEPL and SSL as SSL was recently incorporated. The ratings also reflect the Salasar group's moderate financial risk profile, marked by comfortable net worth, low gearing, and comfortable debt protection metrics constrained by high reliance on non-operating income, and recent diversification of revenue profile. These rating strengths are partially offset by the Salasar group's working-capital-intensive operations, vulnerability of margins to volatility in raw material prices and foreign exchange rates, and unrelated diversification with risk related to stabilisation of operations in the steel pipes unit. Outlook: Stable CRISIL believes that the Salasar group's scale of operations will continue to be average over the medium term, while its financial risk profile will remain constrained as its working capital requirements are likely to remain large. The outlook may be revised to 'Positive' if the group increases its scale of operations while maintaining profitability levels and capital structure. Conversely, the outlook may be revised to 'Negative' if there is further unrelated diversification, or delay in ramp- up of sales of SSL, leading to pressure on cash accruals, or in case of larger-than-expected working capital requirements, resulting in weakening in its financial risk profile or higher- than-expected pressure on liquidity. About the Group STEPL was incorporated in 2001 by Mr. Alok Kumar and Mr. Gyanendra Kumar Aggarwal. The company is engaged in engineering, designing, and fabrication of steel structures for the telecom and power sector. Its manufacturing unit in Noida (Uttar Pradesh [UP]) commenced operations in June 2006 with an installed capacity of 20,000 tonnes per annum (tpa). In 2009-10 (refers to financial year, April 1 to March 31), the company established a new facility in Ghaziabad (UP) at a distance of about 3 kilometres from its first site and expanded its capacity to 35,000 tpa. STEPL has also diversified into turnkey erection and commissioning of structures for power substations and transmission lines. SSL was incorporated in April 2010 and is a 100 per cent subsidiary of STEPL. SSL manufactures stainless pipes and tubes. It has installed capacity of 7200 tpa. The total project cost was around INR180 million, which was funded through debt of INR100 million and promoters' contribution by way of equity of INR80 million through STEPL. SSL commenced operations from September 2011. Salasar group reported a profit after tax (PAT) of INR36.0 million on net sales of INR1217.7 million for 2010-11, as against a PAT of INR20.9 million on net sales of INR1068.2 million for 2009-10. SHREE KRISHNA: Delays in Loan Payment Cues CRISIL Junk Rating ------------------------------------------------------------- CRISIL has assigned its 'CRISIL D/CRISIL D' rating to the bank facilities of Shree Krishna Poly Strap Pvt Ltd. Facilities Ratings ---------- ------- INR117.5 Million Long-Term Loan CRISIL D (Assigned) INR30 Million Cash Credit CRISIL D (Assigned) INR30 Million Packing Credit CRISIL D (Assigned) INR2.5 Million Bank Guarantee CRISIL D (Assigned) The rating reflects delays by SKPL in servicing its term loan because of its weak liquidity marked by inadequate cash accruals and increasing working capital borrowings. SKPL has a weak financial risk profile, marked by a small net worth, a high gearing, and weak debt protection metrics, and is exposed to risks related to volatility in raw material prices and small scale of operations. SKPL, however, benefits from the extensive industry experience of its promoters. About Shree Krishna SKPL was set up in 2009 by Mr. Aruvela Ramesh. The company manufactures polypropylene (PPE) and polyethylene terephthalate (PET) strappings, which are used as a versatile packaging material across industries such as textiles, steel, beverages, paper, ceramics, and construction. Its manufacturing facility in Chittur (Andhra Pradesh) has capacity of around 250 tonnes per month. PET and PPE strappings contribute around 60 per cent and 40 per cent, respectively, to the company's revenues. Mr. Ramesh has more than two decades of experience in the plastics and packaging industry. SKPL is managed by Mr. A Ramesh and his two daughters, Ms. Keerthi Aruvela and Ms. Preethi Aruvela. SKPL reported a loss of INR35 million on net sales of INR137 million for 2010-11 (refers to financial year, April 1 to March 31), against a loss of INR9 million on net sales of INR13 million for 2009-10. SKYWORLD EXIM: CRISIL Puts 'CRISIL B+' Rating on INR150MM Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable' rating to the long- term bank facilities of Skyworld Exim. Facilities Ratings ---------- ------- INR150 Million Cash Credit CRISIL B+/Stable (Assigned) INR150 Million Proposed Long- CRISIL B+/Stable (Assigned) Term Bank Loan Facility The rating reflects SE's weak financial risk profile, marked by highly leveraged capital structure with total outside liabilities to tangible net worth of 3.60 times as on March 31, 2011 (treating promoters' loans as neither debt nor equity) and weak debt protection metrics, and working-capital-intensive operations marked by gross current asset of 170 days in 2010-11 (refers to the financial year April 1, March 31). These rating weaknesses are partially offset by the extensive experience of SE's partners in the paper trading industry. Outlook: Stable CRISIL believes that SE will benefit over the medium term from its partners' extensive experience in the paper trading industry. The outlook may be revised to 'Positive' if SE's financial risk profile improves through capital infusion by the partners and significant improvement in working capital management. Conversely, the outlook may be revised to 'Negative' in case of further deterioration in working capital cycle or if the firm contracts higher-than-expected debt for incremental working capital requirements, thereby adversely impacting its debt protection metrics. About Skyworld Exim Established in 2007, SE is a Delhi-based partnership firm that trades in industrial paper and is promoted by Mr. Rajnish Gupta. Initially, SE was set up by Mr. Rajnish Gupta and his brother-in- law, Mr. Ajay Gupta, both of whom had an equal share in the firm's profits. However, in 2009-10, Mr. Ajay Gupta retired from the firm and his share was bought by Mr. Rajnish Gupta and his father, Mr. Jai Bhagwan Gupta. Currently, Mr. Rajnish Gupta has 95% share in the firm and the remaining is with his father. S. V. ENTERPRISE: CRISIL Assigns 'B+' Rating to INR32.5MM Loan -------------------------------------------------------------- CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to the bank facilities of S. V. Enterprise. Facilities Ratings ---------- ------- INR32.5 Million Cash Credit CRISIL B+/Stable (Assigned) INR37.5 Million Bank Guarantee CRISIL A4 (Assigned) The ratings reflect SVE's modest scale of operations, limited revenue diversity, and susceptibility to risks related to fragmentation and intense competition in the civil construction industry. These rating weaknesses are partially offset by SVE's satisfactory debt protection metrics driven by above-average operating profitability, and partners' extensive industry experience. Outlook: Stable CRISIL believes that SVE will benefit over the medium term from its experienced management and the firm's above-average profitability. The outlook may be revised to 'Positive' if the firm diversifies and improves its scale of operations on a sustainable basis, leading to improvement in its business risk profile, without deteriorating its financial risk profile. Conversely, the outlook may be revised to 'Negative' in case its financial risk profile deteriorates owing to reduced revenues and/or profitability, or if the firm undertakes a large debt- funded capital expenditure programme, or if its receivables collection cycle is stretched, thereby constraining its liquidity. About S. V. Enterprises Set up as a partnership firm in 1994, SVE undertakes civil construction works in Gujarat. The firm mainly undertakes civil construction works such as construction of buildings, which includes industrial, commercial, and residential buildings for various government authorities, semi-government authorities, and private entities. SVE is registered as a 'Class AA' contractor with road & building department, Gujarat, and is also registered as a 'Class AA' contractor with Surat Municipal Corporation; it is also registered as a 'Class S' contractor with Military Engineering Services. The overall activities of the firm are mainly handled by Mr. Manherbhai Patel. SVE reported a net profit of INR21.2 million on net sales of INR139.5 million for 2010-11 (refers to financial year, April 1 to March 31), as against a net profit of INR9.3 million on net sales of INR141.0 million for 2009-10. VEER TRADING: CRISIL Rates INR100 Million Loan at 'CRISIL B' ------------------------------------------------------------ CRISIL has assigned its 'CRISIL B/Stable' rating to the cash credit facility of M/S Veer Trading Company. Facilities Ratings ---------- ------- INR100 Million Cash Credit CRISIL B/Stable (Assigned) The rating reflects the firm's weak financial risk profile, marked by high total outside liabilities to tangible net worth and low interest coverage ratios, trading nature of business leading to low operating margin, and susceptibility to adverse changes in government policies. These rating weaknesses are offset by the efficient working capital management and policies of the firm. Outlook: Stable CRISIL believes that VTC will continue to benefit over the medium term from its proprietor's industry experience and its efficient working capital management. The outlook may be revised to 'Positive' if the firm significantly improves its capital structure through infusion of funds or larger-than-expected accretion to capital base. Conversely, the outlook may be revised to 'Negative' if VTC's profitability declines significantly leading to further deterioration in its interest coverage ratio. About Veer Trading VTC was set up in 2010 as a proprietorship firm, with Mr. Pankaj Shah as the proprietor. The firm trades in cotton bales. It sells in the domestic market in Gujarat, Madhya Pradesh, Maharashtra, and Andhra Pradesh, and also exports to countries such as Pakistan, China, and Indonesia. Exports contribute to around 30 per cent of its sales. VTC reported a book profit of INR5.04 million on operating income of INR806.5 million in 2010-11 (refers to financial year, April 1 to March 31), its first year of operations. VITECH EQUIPMENTS: CRISIL Puts 'BB' Rating on INR6.3MM Loan ----------------------------------------------------------- CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to the bank facilities of Vitech Equipments Pvt Ltd. Facilities Ratings ---------- ------- INR6.3 Million Term Loan CRISIL BB/Stable (Assigned) INR39.6 Million Cash Credit CRISIL BB/Stable (Assigned) INR4.1 Million Proposed Long- CRISIL BB/Stable (Assigned) Term Bank Loan Facility INR50 Million Bank Guarantee CRISIL A4+ (Assigned) INR25 Million Letter of Credit CRISIL A4+ (Assigned) The ratings reflect the VEPL's healthy financial risk profile, marked by low gearing and strong debt protection indicators and promoters' extensive industry experience. These rating strengths are partially offset by VEPL's modest scale of operations, working-capital-intensive operations and susceptibility of its operating performance to end user cyclicality. Outlook: Stable CRISIL believes that Vitech Equipments Private Limited will maintain its stable business risk profile over the medium term, backed by its promoter's extensive industry experience and healthy financial risk profile. The outlook may be revised to 'Positive' if VEPL demonstrates significant improvement in revenues, while maintaining or improving its profitability and working capital cycle. The outlook may be revised to 'Negative' in case of deterioration in the financial risk profile due to lengthening of its working capital cycle or due to decline in revenues and profitability. About Vitech Equipments VEPL was incorporated in 2003 by Mr. Charles D'Souza, Ms. Janet D'Souza, Mr. Leo D'Souza, and Mr. Vivek D'Souza. The company is engaged in fabrication of medium- to heavy-sized equipments, such as heat exchangers, pressure vessels, extractors, and deodorisers for refineries/petrochemicals, dairy, and pharmaceuticals industries. VEPL's clientele includes companies, such as Desmet Ballestra India Pvt Ltd (CRISIL A1), Durr India Pvt Ltd, and Vatech Wabag Ltd. VEPL has around 2800 square metres of fabrication facility in Navi Mumbai (Maharashtra). Exports constituted around 20 per cent of VEPL's total sales in 2010-11 (refers to financial year, April 1 to March 31). VEPL reported a profit after tax (PAT) of INR4.3 million on net sales of INR120.7 million for 2010-11, as against a PAT of INR7.4 million on net sales of INR190.7 million for 2009-10. ========= J A P A N ========= OLYMPUS CORP: May Snub Fujifilm Proposed Tie Up ----------------------------------------------- Bloomberg News reports that Fujifilm Holdings Corp. may get snubbed by cross-town rival Olympus Corp. in its attempt to move further away from the photographic film business that dragged down industry pioneer Eastman Kodak Co. "We aren't too optimistic" that Olympus will welcome a takeover approach or collaboration, Chief Executive Officer Shigetaka Komori told Bloomberg in an interview at Fujifilm's Tokyo headquarters. "Olympus will most likely to want to run the business by itself." Mr. Komori told Bloomberg that the two companies together would control about 85% of the global market for the tiny cameras doctors use to peer inside the body. The 72-year-old CEO wants to add Olympus, which lost more than half its market value last year over an accounting scandal, to the JPY650 billion (US$8.5 billion) of takeovers Fujifilm spent in the past decade to buffer it from a collapse in color film demand that pushed Kodak to the brink of bankruptcy last month. "Many of the things Kodak did were short-term and halfway measures, and they weren't enough," Bloomberg quotes Mr. Komori as saying. "Japanese companies make long-term investments, looking 10 to 20 years ahead. That's the difference between us and Kodak." As reported in the Troubled Company Reporter-Asia Pacific on Jan. 31, 2012, Bloomberg News said Fujifilm proposed a partnership with Olympus Corp. and may invest in the company, Shigehiro Nakajima, Fujifulm executive vice president, said. The plan was presented to Olympus adviser SMBC Nikko Securities Inc. The companies may also exchange executives, Mr. Nakajima said. 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. 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. ==================== N E W Z E A L A N D ==================== CRITERION GROUP: In Receivership; No Redundancy for 180 Workers --------------------------------------------------------------- Fairfax NZ News reports that Criterion Group's workers union said the collapse of furniture maker is a body blow for workers and for New Zealand. Receivers KordaMentha were called into Auckland-based Criterion Group and its New Zealand and Australian subsidiaries on Jan. 31, where the jobs of 180 staff are on the line, the report discloses. Grant Graham -- ggraham@kordamentha.com -- and Brendon Gibson -- bgibson@kordamentha.com -- of KordaMentha were named as receivers. Forty EPMU members at Criterion's East Tamaki factory had been told on Jan. 31 that the company was closing down. According to Fairfax NZ, EPMU national industry organiser Louisa Jones said workers were in a very difficult situation, and many had been long-serving employees. "They are now suddenly without an income and have no idea if they'll get their outstanding wages and holiday pay," the report quotes Ms. Jones as saying. "It's also another body blow for our economy when a well-established exporting company like Criterion shuts its doors." Fairfax NZ relates that the EPMU said it would work with KordaMentha to ensure that workers received their full legal entitlements in terms of wages and holiday pay. However, the report relates, the workers losing their jobs did not have redundancy policies in place. KordaMentha said the receivers' appointment followed a "serious decline in trading" for the group. The aim was to sell it as a going concern. "A marketing process for the business has been underway for several months and that process will now be accelerated," receiver Grant Graham said. About Criterion Group Criterion Group Ltd -- http://www.criterionfurniture.com/-- and its subsidiaries manufacture and sell both office and home furniture. LOMBARD FINANCE: Judge Reserves Decision in Directors' Case ----------------------------------------------------------- BusinessDesk reports that Justice Robert Dobson has reserved his decision after defense counsel for the directors of Lombard Finance & Investments concluded their summing up Friday. In the High Court at Wellington, BusinessDesk relates, the judge said he will work towards reaching his decision by February 24, though that might be deferred. BusinessDesk says David Hurd, counsel for Jeffries, closed by criticizing the Securities Commission's investigation, and saying lead investigator Michelle Peden's review was inadequate. According to BusinessDesk, Mr. Hurd said Peden, a forensic accountant, misunderstood Lombard Finance's operation, and didn't engage appropriate experts, such as valuers, auditors, and corporate governance specialists. Mr. Hurd raised the possibility that the amended prospectus was voided by the procedural delay in lodging an associated extension certificate. He urged the judge to consider the requirement for proof to be established "beyond reasonable doubt," BusinessDesk adds. Meanwhile, The New Zealand Herald reports that the Crown prosecutor said Sir Douglas Graham failed in his role as chairman of Lombard Finance & Investments by not taking a more active role in getting to know the property development business as the lender ultimately failed. Prosecutor Colin Carruthers told the High Court in Wellington that Mr. Graham let Lombard Finance's management deal with an increasingly problematic loan book, and didn't lead greater board scrutiny of the lender's practices, the Herald relates. When the lender was in trouble, Mr. Graham should have ensured he became "knowledgeable about the state of the loans, what obstacles existed, what the likely impact was", Mr. Carruthers, as cited by the Herald, said. Mr. Carruthers said one of the "rare examples" of Mr. Graham showing an adequate amount of scepticism was over the recoverability of loans to Mark Bryers and Blue Chip, according to the report. "The Crown's position is that the evidence establishes the accused failed to fulfil their obligations and that failure deprives them of the reasonable grounds defense," the Herald quotes Mr. Carruthers as saying. The tension between supporting the company's commercial goals was trumped by disclosure requirements under the law, Mr. Carruthers added. The Herald notes that the Crown contends Lombard Finance directors Graham, Bill Jeffries, Lawrence Bryant and Michael Reeves made untrue statements in a 2007 prospectus, investment statement and advertising material. About Lombard Finance Lombard Finance & Investments Limited is a wholly owned subsidiary of Lombard Group, a diversified company specializing in the financial services sector offering a number of lending options and providing investment opportunities for its shareholders and investors. Lombard Finance was placed into receivership on April 10, 2008, by its trustee, Perpetual Trust Limited. PricewaterhouseCoopers partners John Fisk and John Waller have been appointed receivers of the company. The receivership also applies to three other subsidiaries of Lombard Group, being Lombard Asset Finance Limited, Lombard Property Holdings Limited and Lombard Asset Finance No 2 Limited. The receivership does not impact on Lombard Group Limited. The company owed NZ$127 million to 4,400 investors. SOUTH CANTERBURY: Sells 33.6% Stake in Dairy Holdings for NZ56-MM ----------------------------------------------------------------- BusinessDesk reports that the receivers of South Canterbury Finance sold the failed finance company's 33.6% stake in Dairy Holdings to existing shareholders and the dairy farm group's US investors took advantage of the deal to exit their own 25% holding. Receivers Kerryn Downey and William Black of McGrathNicol said South Canterbury Finance will receive NZ$56.4 million for its 33.6% stake. The receivers said the deal valued Dairy Holdings at an enterprise value of more than NZ$535 million, the report relays. According to the report, the transaction puts New Zealand's biggest corporate dairy farmer in the hands of New Zealand shareholders led by Colin Armer, Alan Pye and interests associated with Humphry Rolleston. About South Canterbury Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the provision of financial services. The Company's principal activities were borrowing funds from public and institutional investors and on lending those funds to the business, plant and equipment, property, rural and consumer sectors. It typically advanced funds by means of hire purchase, floor plans, leasing of plant, vehicles and equipment, personal loans, business term loans and revolving credit facilities, mortgages against property, and other financial instruments, including consumer loan insurance. On Aug. 31, 2010, Trustees Executors Limited, as trustee for South Canterbury Finance charging group, appointed Kerryn Downey and William Black of McGrathNicol as receivers of the charging group's secured assets. "As Trustee, we have had South Canterbury Finance under heightened surveillance since 2008. As part of that, SCF was granted a Trustee waiver in February 2010 to allow it time to recapitalize. Unfortunately, the Company's Directors have advised us that they have not been successful with respect to a recapitalization and requested us to appoint a receiver. At this point we, as Trustee, agree that it is the best interests of debenture, deposit and bond holders to do that," said Yogesh Mody, Southern Regional Manager for Trustees Executors Limited. The New Zealand government repaid South Canterbury's 35,000 depositors and stockholders NZ$1.6 billion under the Crown retail deposit guarantee scheme. ********* Tuesday's edition of the TCR-AP delivers a list of indicative prices for bond issues that reportedly trade well below par. Prices are obtained by TCR-AP editors from a variety of outside sources during the prior week we think are reliable. Those sources may not, however, be complete or accurate. The Tuesday Bond Pricing table is compiled on the Friday prior to publication. Prices reported are not intended to reflect actual trades. Prices for actual trades are probably different. Our objective is to share information, not make markets in publicly traded securities. Nothing in the TCR-AP constitutes an offer or solicitation to buy or sell any security of any kind. It is likely that some entity affiliated with a TCR-AP editor holds some position in the issuers' public debt and equity securities about which we report. A list of Meetings, Conferences and Seminars appears in each Wednesday's edition of the TCR-AP. Submissions about insolvency- related conferences are encouraged. Send announcements to conferences@bankrupt.com Friday's edition of the TCR-AP features a list of companies with insolvent balance sheets obtained by our editors based on the latest balance sheets publicly available a day prior to publication. At first glance, this list may look like the definitive compilation of stocks that are ideal to sell short. Don't be fooled. Assets, for example, reported at historical cost net of depreciation may understate the true value of a firm's assets. A company may establish reserves on its balance sheet for liabilities that may never materialize. The prices at which equity securities trade in public market are determined by more than a balance sheet solvency test. ********* S U B S C R I P T I O N I N F O R M A T I O N Troubled Company Reporter-Asia Pacific is a daily newsletter co- published by Bankruptcy Creditors' Service, Inc., Fairless Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland, USA. Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel Elaine T. Fernandez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A. Chapman, Editors. Copyright 2012. All rights reserved. ISSN: 1520-9482. This material is copyrighted and any commercial use, resale or publication in any form (including e-mail forwarding, electronic re-mailing and photocopying) is strictly prohibited without prior written permission of the publishers. Information contained herein is obtained from sources believed to be reliable, but is not guaranteed. TCR-AP subscription rate is US$625 for 6 months delivered via e- mail. Additional e-mail subscriptions for members of the same firm for the term of the initial subscription or balance thereof are US$25 each. For subscription information, contact Peter Chapman at 240/629-3300. *** End of Transmission ***