TCRAP_Public/101014.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Thursday, October 14, 2010, Vol. 13, No. 203

                            Headlines



A U S T R A L I A

COCOS FRESH FOOD MARKETS: Under Administration
SMITH & HALL: Goes Into Administration
WILLMOTT FORESTRY: Judge Suggests "Auctioning" Administrator Role


C H I N A

UNI CORE: Albert Wong Raises Going Concern Doubt
SINO-FOREST CORPORATION: Fitch Puts 'BB+' Rating on Senior Notes
SINO-FOREST CORPORATION: Moody's Assigns 'Ba2' Rating to Notes
SINO-FOREST CORP: S&P Assigns 'BB' Rating to Senior Unsec. Notes


H O N G  K O N G

MULTIPIPE RENOVATON: Commences Wind-Up Proceedings
MUTUAL SHINE: Commences Wind-Up Proceedings
NEWLINK INVESTMENT: Commences Wind-Up Proceedings
NICE CREATION: Commences Wind-Up Proceedings
PEDER INTERNATIONAL: Commences Wind-Up Proceedings

PHOENIX (FASHION): Commences Wind-Up Proceedings
PLANET PETS: Tang and wong Appointed as Liquidators
POLYTRADE RECYCLING: Commences Wind-Up Proceedings
SALEMAY COMPANY: Court to Hear Wind-Up Petition on November 3
SEALINK SHIPPING: Commences Wind-Up Proceedings

SERVICE CENTRE: Creditors Get 28.45% Recovery on Claims
SMARTFAIR CORPORATION: Commences Wind-Up Proceedings
STANFORD ANTICOUNTERFEIT: Commences Wind-Up Proceedings
SUCCESS LEATHERWARE: Commences Wind-Up Proceedings
TEN PLUS: Commences Wind-Up Proceedings

THREE STARS: Commences Wind-Up Proceedings
TREASURE LAKE: Court to Hear Wind-Up Petition on November 10


I N D I A

AIR INDIA: Likely to Get Additional INR2,000cr From Government
AIR INDIA: Seeks US$1.15 Billion to Refinance Plane Purchase
BANGALORE METALLURGICALS: CRISIL Rates INR59.1MM Term Loan at 'B-'
GEMINI STUDIOS: CRISIL Reaffirms 'BB' Rating on INR193.6MM Loan
K P STEEL: CRISIL Reaffirms 'BB+' Rating on INR125MM Cash Credit

MUTHOOT HOTELS: ICRA Reaffirms 'LBB+' Rating on INR5.6cr Term Loan
N. MAHALINGAM: CRISIL Assigns 'BB+' Ratings to Various Bank Debts
P.C. PATEL: ICRA Places 'LBB+' Rating on INR6cr Cash Credit
SMS INFRASTRUCTURE: ICRA Assigns 'LBB+' Rating to INR192cr Debt
WELMECH ENGINEERING: ICRA Puts 'LB' Rating on INR0.5cr Term Loan


J A P A N

ORIX-NRL TRUST: S&P Downgrades Rating on Class D to 'B-'


N E W  Z E A L A N D

CENTURY CITY: Reaches Out-of-Court Deal Over NZ$8.95-Mil CMT Debt
SOUTH CANTERBURY: NZ Superfund, Ngai Tau Bid to Buy SCF Rejected


S R I  L A N K A

BANK OF CEYLON: Fitch Affirms Individual Rating at 'D/E'




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A U S T R A L I A
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COCOS FRESH FOOD MARKETS: Under Administration
----------------------------------------------
Ashlynne McGhee at ABC News reports that Cocos Fresh Food Markets
has gone into administration owing creditors around AU$12 million.
The report relates that all 54 staff from eight Cocos Fresh Food
Markets has been laid off but employee entitlements will be paid
by a government scheme.

According to ABC News, administrator Jason Bettles said the
chain's financial situation is dire.  The report relates that Mr.
Bettles said that secured creditors, including a major bank,
should receive money from the asset sale but others will miss out.

"Our preliminary estimates are that it's very clear that there'll
be no return to non-priority unsecured creditors like the trade
creditors and the tax office.  There just won't be any money for
them," ABC News quoted Mr. Bettles as saying.

Mr. Bettles, the report notes, said that Cocos Fresh Food Markets
got into financial trouble due to under-capitalization.

"The idea was to refurbish the stores as the maxi-grocer and trade
on from there," ABC News quoted Mr. Bettles as saying.
"Unfortunately they got through one refurbishment and then have
run out of money and haven't been able to source any more capital
to keep going forward," he added.

Headquartered in Gold Coast, Cocos Fresh Food Markets is a south-
east Queensland grocery chain.  The chain has outlets in south-
east Queensland, including Brisbane, Toowoomba and on the Gold
Coast.


SMITH & HALL: Goes Into Administration
--------------------------------------
James Thomson at Smart Company reports that Smith & Hall has been
placed into administration with debts of more than AU$1 million.
The report relates Smith & Hall, run by director Cameron Hall, was
placed in the hands of Sydney insolvency firm Jirsch Sutherland on
October 7.

According to the report, administrator Sule Arnautovic of Jirsch
Sutherland's preliminary report to creditors indicates that he has
frozen the company's bank accounts, although the group does not
have any cash.  The report relates Mr. Arnautovic also said that
the gallery's employees were dismissed two years ago, and he is
still attempting to ascertain the size of employee entitlements
still outstanding.

Of course, the report discloses, of more interest to the gallery's
creditors and investors will be what will happen to the artwork at
the gallery, at the gallery's storage facility and out on loan to
renters.

"It appears that the companies have control over 800 items of art
with a resale value of over $4 million" the report to creditors
said, Smart Company relates.  "It seems at first glance that the
vast majority of these artworks are not owned by the companies. We
are aiming to have all artworks not owned by the companies
returned to their owners as soon as possible," it added.

Smart Company notes Mr. Arnautovic also told the Australian
Financial Review there are around 500 investors and supply
creditors owed money by Smith & Hall.  The report relates that
while debts to these creditors are believed to be between
AU$500,000 and AU$1 million, Mr. Arnautovic told the AFR there is
AU$400,000 owed to a bank and up to AU$500,000 owed to the
Australian Taxation Office.

The first meeting of creditors will be held in Sydney on
October 19.

Smith & Hall is a Sydney art gallery that helped art investors
rent out their artworks to earn extra income.  The company offered
art investors the chance to earn up to 8% per annum by leasing out
their artworks to renters, who would pay "as little as the cost of
a cup of coffee a day".


WILLMOTT FORESTRY: Judge Suggests "Auctioning" Administrator Role
-----------------------------------------------------------------
Leonie Wood at The Sydney Morning Herald reports that a Federal
Court judge, who has been asked to decide if the suburban
insolvency practitioner managing the collapse of the Willmott
Forestry group should be replaced by a huge national firm, has
suggested "auctioning" the role of administrator.

According to SMH, Commonwealth Bank and St. George Bank, which are
owed about AU$122 million, want the board-appointed administrator,
Tom Fernandez, replaced by Craig Crosbie and Ian Carson of PPB,

SMH says the banks, the Australian Securities and Investments
Commission and a group of the 6,300 investors who sank funds into
Willmott's tree plantation schemes claim Mr. Fernandez does not
have the resources to manage a large and complex insolvency such
as Willmott, where AU$400 million of growers' funds are at stake.

But the court heard that Willmott's former chief executive, Marcus
Derham, its external auditor, David Armstrong of Armstrong
Partners, and a different faction of grower-investors have joined
forces and thrown their support behind Mr. Fernandez, SMH notes.

SMH relates that in a hearing in Melbourne on Tuesday, counsel for
the banks, Philip Crutchfield, SC, told Justice Ray Finkelstein
there had been "an unhealthy level of proxy solicitation by
Willmott insiders," especially Mr. Derham who, he said, had used
his corporate email account to solicit proxies and to communicate
with Mr. Fernandez about shoring up proxies to support
Mr. Fernandez.

SMH adds that Mr. Crutchfield also said Mr. Fernandez would be
"consumed" by the administration task and "will not be able to
cope."

According to SMH, Justice Finkelstein has suggested one answer may
be to auction the administrator's role via a court-supervised
process -- a proposal that mirrors his suggestion in the Centro
class action where two firms of lawyers turned up to represent
aggrieved Centro shareholders.  Those two firms still represent
different sets of Centro shareholders, but a different judge is
now hearing the case, SMH notes.

SMH says ASIC's lawyers have told the court the regulator would
support a competitive bidding process. But ASIC wants a new
administrator to be independent, backed by sufficient financial,
physical and human resources, with sufficient professional
indemnity and capable IT systems for a big insolvency.

It also had to be based in Victoria with offices in other states,
and it had to be a practitioner with experience in handling
insolvent managed investment schemes, SMH adds.

                      About Willmott Forests

Based in Australia, Willmott Forests Limited (ASX:WFL) --
http://www.willmottforests.com.au/-- is engaged in identification
and acquisition of land for plantation establishment; site
preparation, planting and maintenance of Pine (Pinus radiata),
Silky Oak (Grevillea) and She-oak (Casuarina) plantations pursuant
to woodlot sales; negotiation and management of plantation
harvesting contracts and operations; marketing of forestry
investment projects to the public through complying offer
documents; management of the loan book generated by woodlot sales;
production, processing and sale of landscape and fencing timber
products, and research and development for producing ethanol from
lignocellulosic material.  The Company offers woodlot investment
projects in Australian states and territories, and operates timber
processing facilities in New South Wales.  Its subsidiaries
include BioForest Limited, Willmott Timbers Pty Ltd, Willmott
Finance Pty Ltd and Willmott Notes Pty Ltd, among others.

The Troubled Company Reporter-Asia Pacific reported on Sept. 7,
2010, that Willmott Forests Ltd's syndicate of banks, including
Commonwealth Bank and St. George Bank, had appointed Mark Mentha
and Bryan Webster of Korda Mentha as receivers, after scrapping
waivers to the AU$120 million owed.  The syndicate had granted the
company temporary waivers as Willmott undertook a business review,
including the sale of land assets to repay debt.  The syndicate
advised Willmott Forrests that the temporary waiver is terminated
and that all loans are immediately due and payable.


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UNI CORE: Albert Wong Raises Going Concern Doubt
------------------------------------------------
Uni Core Holdings Corporation (formerly known as Intermost
Corporation) filed on October 7, 2010, its annual report on Form
10-K for the fiscal year ended June 30, 2010.

Albert Wong & Co., in Hong Kong, expressed substantial doubt about
the Company's ability to continue as a going concern.  The
independent auditors noted that the Company has suffered recurring
losses from operations, has a significant accumulated deficit, and
continues to experience negative cash flows from operations.

The Company reported a net loss of $12.8 million on $2.7 million
of revenue for fiscal 2010, compared to a net loss of $2.4 million
on $4,023 of revenue for fiscal 2009.  Net revenues during fiscals
2010 and 2009 were derived principally from sales of paper
products and e-commerce solutions.

The Company's balance sheet at June 30, 2010, showed $32.7 million
in total assets, $12.4 million in total liabilities, $1.2 million
in minority interests, and stockholders' equity of $19.1 million.

A full-text copy of the Form 10-K is available for free at:

               http://researcharchives.com/t/s?6c4d

                          About Uni Core

Wanchai, Hong Kong-based Uni Core Holdings Corporation was
incorporated as La Med Tech, Inc., under the laws of the State of
Utah on March 6, 1985.  The Company changed its name to
Entertainment Concepts International in 1987, to Lords & Lazarus,
Inc. in 1988, to Utility Communications International, Inc. in
1996, to Intermost Corporation in 1998, and to Uni Core Holdings
Limited in 2009.

In February 2003, the Company reincorporated from Utah to the
State of Wyoming.

Through its subsidiary ChinaE.com Technology (Shenzhen) Ltd., the
Company offers web design, web hosting, domain name registration,
software development and office automation software to its
clients.

Through its subsidiary Hainan Concord Financial Products
Development Co., Ltd., the Company issues and manages multi-
functional membership cards for the people who participate in
private equity exchange in Hainan, and has an exclusive agreement
with Hainan Exchange Centre Non-Public Company Registration Co.,
Ltd. to issue multi-functional membership and credit cards to
their members.

Through its subsidiary APT Paper Group Limited, the Company is
engaged in the manufacture of honeycomb paper packaging products.


SINO-FOREST CORPORATION: Fitch Puts 'BB+' Rating on Senior Notes
----------------------------------------------------------------
Fitch Ratings has assigned an expected 'BB+' rating to Sino-Forest
Corporation's ('BB+'/Stable) proposed US$500 million senior notes
due 2017.  The final rating is contingent upon receipt of
documents conforming to information already received.

"Fitch expects Sino-Forest's credit profile to be largely
unchanged after the issuance of the proposed senior notes since
the company plans to use the proceeds to fund the acquisition of
additional tree plantations under its existing long-term master
agreements and the replanting of forest plantations.  The proposed
senior notes will provide extra liquidity for Sino-Forest to
acquire about 764,000 hectares of the remaining plantation area
under agreement," says Ms. Ying Wang, Director in Fitch's Asia-
Pacific corporates team.

Sino-Forest's ratings are underpinned by the company's solid asset
base and proven track record in expanding commercial plantations
through acquisitions; funds flow from operations covered 78% of
its capex in the past three years.  Sino-Forest has a sizeable
plantation area under management of 726,200 hectares at 30 June
2010.  This includes 155,600 hectares acquired from Mandra
Forestry Holdings Limited in February 2010.  The remaining
plantation areas to be acquired under its long-term master
agreements are in diverse areas including China's Hunan, Yunan,
Guangxi, Fujian, Jiangxi, and Guizhou provinces.

In August 2010, Sino-Forest completed the US$54m equity investment
in Omnicorp Limited increasing its voting interest in the latter
to around 59.3% from 19.8%.  Omnicorp will be Sino-Forest's
platform for future overseas forestry resource acquisitions.  The
transaction increased Sino-Forest's ownership in Greenheart
Resources Holdings Limited to more than 75%.  Greenheart is one of
the largest forest concession owners and operators in Suriname,
South America with a 178,000-hectare hardwood concession and
harvesting rights with a harvestable standing stock volume of
approximately 4.4m cubic meters

Sino-Forest's ratings are further supported by favorable industry
dynamics driven by supportive government policies and the domestic
wood-fibre supply shortage, as well as its management's solid
experience in forestry management with strong business and
government relationships in China.

Sino-Forest has maintained comfortable financial flexibility and
healthy liquidity despite being a net acquirer of assets.

The company has a back-ended maturity profile with most debt due
after 2013.  The company has demonstrated its ability to refinance
and/or extend debt maturities through a variety of funding
channels.  In July 2010, Sino-Forest established a strategic
relationship with one of China's major policy banks by entering
into a Co-operative Framework Agreement with the China Development
Bank Corporation.  The latter will provide project financing of up
to CNY10bn (US$1.5 billion) at competitive onshore interest rates.

Sino-Forest's ratings are constrained by its aggressive capex
programme to expand its scale of operations, which has resulted in
consistently negative free cash flow over recent years.  Fitch
expects the negative FCF to persist in the near term given the
company's continued expansion of plantation area.

The ratings are also constrained by the long-term nature of Sino-
Forest's timber inventories, which exposes the company to price
risk and cash margin compression.  However, Fitch notes the
company's shift towards an integrated model which helps to
mitigate the price risk, as the time to maturity and sale is
shortened.  Also, Sino-Forest has the right but not the obligation
to purchase trees under its long term master purchase agreements,
providing it some flexibility to slow down purchases if necessary.
The ratings also reflect the inherent risks of weather and natural
disasters, the industry's sensitivity to construction and property
development cycles, and the lack of pricing power.  The ratings
are also constrained by the lack of geographical diversification,
as Sino-Forest's business is predominately focused in China.

The Stable Outlook reflects Fitch's expectation that Sino-Forest's
financial profile will remain healthy and within a range
consistent with its rating category.  Sustained positive FCF could
lead to a positive rating action.  Negative rating actions may
result from prolonged delays in harvesting/replanting trees, or
FFO/net adjusted leverage exceeding 2.0x on a sustained basis, or
FFO interest coverage below 5.0x on a sustained basis.


SINO-FOREST CORPORATION: Moody's Assigns 'Ba2' Rating to Notes
--------------------------------------------------------------
Moody's Investors Service has assigned a Ba2 rating to Sino-Forest
Corporation's proposed US dollar senior notes.

At the same time, Moody's has affirmed Sino-Forest's Ba2 corporate
family rating.  The outlook for all ratings is stable.

The proceeds of the notes will be used by Sino-Forest for the
acquisition of plantation assets and planting of trees-- thereby
helping the development of its forestry assets -- and general
corporate purposes.

                        Ratings Rationale

"In terms of their effect on debt leverage, the issuance of the
notes will prompt Debt/EBITDA to rise above four times at end-
2010, but the ratio is expected then to return to below 3.5x in
2011, given anticipated growth in sales and cash flow," says
Jiming Zou, a Moody's Analyst.

"This sales and cash flow performance is in turn based on the
company's strong execution abilities and good operational track
record of the past few years," adds Zou.  "In addition, interest
coverage -- that is EBIT/interest expense -- of around 3.5x is
still consistent with its Ba2 level."

"If the notes are issued, Sino-Forest will be in a position to
significantly step up its investment plan for acquiring and
replanting of forest plantations without impairing its day-to-day
liquidity needs.  But further debt raisings could reduce its
headroom under the fixed charge covenant," adds Zou.

Sino-Forest's Ba2 corporate family rating continues to reflect its
established position in operating commercial forest plantations in
China; its ability to increase its number of integrated
plantations; its good profitability; and favorable demand for wood
products in China.

On the other hand, the Ba2 rating also incorporates the execution
risk associated with managing a fast expanding forest asset base
and the company's aggressive growth appetite, which has resulted
in continued negative free cash flow.

The stable rating outlook reflects Moody's expectation that Sino-
Forest will maintain the quality of its assets, execute its
business plan, and exercise prudence in its cash flow and debt
management.

Upward rating pressure could be limited in the near term, given
the execution risk associated with high business growth.  However,
over the medium term, the possibility of upgrade pressure may
emerge if the company: (1) delivers on its business plan and
develops a strong recurring cash flow base; and (2) achieves
sustainable key credit metrics - Retained Cash Flow (RCF)/Adjusted
Debt above 30-40% and EBIT/Interest greater than 4.0-4.5x -- while
generating positive free cash flow through the industry cycle.

On the other hand, the ratings could come under downward pressure
if: (1) the company fails to achieve its business plan, and cash
flow declines; (2) its overall business risk rises substantially
due to material debt-funded acquisitions; and/or (3) changes occur
in China's regulatory regime which fundamentally alter operating
conditions with a consequent reduction in profitability.

Credit metrics that Moody's would consider for a downgrade include
RCF/Adjusted Debt below 15-20% and EBIT/Interest of less than 2.5-
3.0x.

The last rating action with regard to Sino-Forest was taken on 2
December 2009 when Moody's affirmed the company's Ba2 ratings
after its announcement of a proposed issue of up to US$400 million
in convertible notes and an equity offering.

Sino-Forest's ratings have been assigned based on factors that
Moody's believe are relevant to the risk profile of Sino-Forest,
such as the company's (i) business risk and competitive position
compared with other firms within the industry; (ii) capital
structure and financial risk; (iii) projected performance over the
near to intermediate term; and (iv) management's track record and
tolerance for risk.  These attributes were compared against other
issuers both within and outside Sino-Forest's core industry;
Moody's believes the company's ratings are comparable with those
of other issuers of similar credit risk.

Sino-Forest Corporation is a holding company listed in Toronto,
Canada.  The company is engaged in forestry plantation activities
in China, as well as in the sale of timber, wood logs and other
wood products in China.

                      Regulatory Disclosures

Information sources used to prepare the credit rating are these:
parties involved in the ratings, parties not involved in the
ratings, public information, confidential and proprietary Moody's
Investors Service's information.

Moody's Investors Service considers the quality of information
available on the issuer or obligation satisfactory for the
purposes of assigning a credit rating.

MOODY'S adopts all necessary measures so that the information it
uses in assigning a credit rating is of sufficient quality and
from sources MOODY'S considers to be reliable including, when
appropriate, independent third-party sources.  However, MOODY'S is
not an auditor and cannot in every instance independently verify
or validate information received in the rating process.


SINO-FOREST CORP: S&P Assigns 'BB' Rating to Senior Unsec. Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue rating
to the proposed U.S. dollar benchmark size senior unsecured notes
to be issued by Sino-Forest Corp. (BB/Stable/--).  The issue will
rank pari pasu with the company's other senior unsecured debt.
The rating on the notes is subject to S&P's review of the final
documentation and confirmation of amounts and tenor.

Standard & Poor's does not expect the additional debt to
negatively affect Sino-Forest's credit risk profile.  S&P expects
the proceeds from the proposed notes to be used to fund the
company's ongoing expansion, which is in line with its business
strategy.  The proposed issue will improve Sino-Forest's liquidity
position, and provide the company with sufficient funding for its
planned expansion for the next two years.

S&P believes that over the medium term, the rating on Sino-Forest
will be most influenced by the company's appetite for financial
leverage while it balances the pace of expansion.  A sustained
shortage of timber in China, and the company's improving cash flow
generation, sound funding flexibility, and geographically diverse
plantation supplies underpin the rating.  S&P anticipates that
Sino-Forest's ratio of total debt to EBITDA will be about 4.0x
over the next 12 months, given its expectation that cash flows
from the company's additional investments will lag the prefunding
for expansion.  Nevertheless, the execution risk associated with
the company's aim to rapidly increase its plantation assets over
the next three to five years; and a concentrated client base will
continue to be a feature of its credit risk profile.


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


MULTIPIPE RENOVATON: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Multipipe Renovaton (HK) Limited, on September 29,
2010, passed a resolution to voluntarily wind up the company's
operations.

The official receiver is E T O'Connell.


MUTUAL SHINE: Commences Wind-Up Proceedings
-------------------------------------------
Members of Mutual Shine Limited, on February 9, 2010, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidator is Bruno Arboit.


NEWLINK INVESTMENT: Commences Wind-Up Proceedings
-------------------------------------------------
Members of Newlink Investment Limited, on January 27, 2010, passed
a resolution to voluntarily wind up the company's operations.

The company's liquidator is Bruno Arboit.


NICE CREATION: Commences Wind-Up Proceedings
------------------------------------------
Members of Nice Creation Development Limited, on April 9, 2010,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is Bruno Arboit.


PEDER INTERNATIONAL: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Peder International Limited, on November 6, 2006,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

         Lily K. B. Fenn
         Tse to Chuen
         Room D, 32nd Floor, Lippo Centre
         Tower 1, No. 89 Queensway
         Hong Kong


PHOENIX (FASHION): Commences Wind-Up Proceedings
------------------------------------------------
Members of Phoenix (Fashion) Trading Limited, on September 29,
2010, passed a resolution to voluntarily wind up the company's
operations.

The official receiver is E T O'Connell.


PLANET PETS: Tang and wong Appointed as Liquidators
---------------------------------------------------
Messrs. Alan Chung Wah Tang and Wong Kwok Man on September 3,
2010, were appointed as liquidators of Planet Pets (HK) Limited.

The liquidators may be reached at:

         Messrs. Alan Chung Wah Tang
         Wong Kwok Man
         13/F, Gloucester Tower The Landmark
         11 Pedder Street
         Central, Hong kong


POLYTRADE RECYCLING: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Polytrade REcycling (HK) Limited, on September 29,
2010, passed a resolution to voluntarily wind up the company's
operations.

The official receiver is E T O'Connell.


SALEMAY COMPANY: Court to Hear Wind-Up Petition on November 3
-------------------------------------------------------------
A petition to wind up the operations of Salemay Company Limited
will be heard before the High Court of Hong Kong on November 3,
2010, at 9:30 a.m.

The Repulse Bay Company Limited filed the petition against the
company.

The Petitioner's Solicitors are:

          Deacons
          5th Floor, Alexandra House
          18 Chater Road


SEALINK SHIPPING: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Sealink Shipping Company Limited, on September 29,
2010, passed a resolution to voluntarily wind up the company's
operations.

The official receiver is E T O'Connell.


SERVICE CENTRE: Creditors Get 28.45% Recovery on Claims
-------------------------------------------------------
Service Centre (Hong Kong Inter-Association) Limited, which is in
liquidation, will pay the first and final preferential dividend to
its creditors on October 11, 2010.

The company will pay 28.45% for ordinary claims.

The company's liquidators are:

         Lai Kar Yan (Derek)
         Darach E. Haughey
         32nd Floor, One Pacific Place
         88 Queensway
         Hong Kong


SMARTFAIR CORPORATION: Commences Wind-Up Proceedings
----------------------------------------------------
Members of Smartfair Corporation Limited, on February 4, 2010,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is Bruno Arboit.


STANFORD ANTICOUNTERFEIT: Commences Wind-Up Proceedings
-------------------------------------------------------
Members of Stanford Anticounterfeit Digital Technologies Limited,
on September 29, 2010, passed a resolution to voluntarily wind up
the company's operations.

The official receiver is E T O'Connell.


SUCCESS LEATHERWARE: Commences Wind-Up Proceedings
--------------------------------------------------
Members of Success Leatherware Industrial Company Limited, on
March 1, 2010, passed a resolution to voluntarily wind up the
company's operations.

The company's liquidator is Bruno Arboit.


TEN PLUS: Commences Wind-Up Proceedings
---------------------------------------
Members of Ten Plus Limited, on September 29, 2010, passed a
resolution to voluntarily wind up the company's operations.

The official receiver is E T O'Connell.


THREE STARS: Commences Wind-Up Proceedings
------------------------------------------
Members of Three Stars Industrial (Holdings) Limited, on July 20,
2010, passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is Bruno Arboit.


TREASURE LAKE: Court to Hear Wind-Up Petition on November 10
------------------------------------------------------------
A petition to wind up the operations of Treasure Lake
International Company Limited will be heard before the High Court
of Hong Kong on November 10, 2010, at 9:30 a.m.

The Petitioner's Solicitors are:

          Cheung, Chan & Chung
          5505, 55th Floor, Hopewell Centre
          183 Queen's Road East
          Wanchai, Hong Kong


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AIR INDIA: Likely to Get Additional INR2,000cr From Government
--------------------------------------------------------------
The Times of India reports that the aviation ministry is set to
ask the government for another INR2,000-crore equity infusion,
over and above already agreed INR2,000 crore, into Air India Ltd.

The report says that reasons for additional infusion include:
apart from the basic need for cash to stay afloat, an improved
debt-equity ratio will make banks more comfortable, while doing
debt restructuring for the aviation sector.  Banks are awaiting
final nod from RBI towards this end, the Times of India adds.

"The government will have to take a fresh look at equity infusion
into AI once banks begin debt restructuring for the sector. We
will have to see what's a favourable debt-equity ratio for the
national carrier that allows banks to help ease AI's loan burden.
The committee of secretaries had originally proposed equity
infusion of INR5,000 crore into AI," aviation minister Praful
Patel told the Times of India.

AI has an equity base of INR145 crore along with accumulated
losses of INR14,000 crore over the past four fiscals; working
capital loan of INR18,000 crore and aircraft orders of over
INR50,000 crore.  The Centre agreed to inject INR2,000 crore into
the airline, of which INR800 crore was given last fiscal and the
remaining INR1,200 crore is expected this year.

                           About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.

                           *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising its fleet strength to
as many as 275 planes in five years from 148 now.  Air India
Chairman and Managing Director Arvind Jadhav said the new 100-page
turnaround plan for 2010-14, which ruled out any job cuts or wage
reductions and, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.


AIR INDIA: Seeks US$1.15 Billion to Refinance Plane Purchase
------------------------------------------------------------
Air India Ltd. is seeking a US$1.15 billion long-term loan to
refinance purchase of 21 new single-aisle aircraft of the A-320
family and equipment, The Times of India reports.

These 21 aircraft, comprising of nine A-319s, eight A-321s and
four A-320s have already been delivered by Airbus, the report
says.

The Times of India relates that these planes were originally
financed by rupee loans equivalent of US$1.15 billion from a
consortium of IDBI-led Indian banks with government guarantee.
This loan had a moratorium of two years.  While AI is trying to
get sovereign guarantee from the government for this fresh loan,
it may mortgage the planes if needed, the report adds.

According to the report, the working capital and acquisition loans
mean that AI needs INR3,000 to INR4,000 crore annually to pay them
off, with a monthly interest of INR500-600 crore.

                           About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.

                           *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising its fleet strength to
as many as 275 planes in five years from 148 now.  Air India
Chairman and Managing Director Arvind Jadhav said the new 100-page
turnaround plan for 2010-14, which ruled out any job cuts or wage
reductions and, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.


BANGALORE METALLURGICALS: CRISIL Rates INR59.1MM Term Loan at 'B-'
------------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of Bangalore Metallurgicals Pvt Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR59.10 Million Term Loan        B-/Stable (Assigned)
   INR33.00 Million Cash Credit      B-/Stable (Assigned)
   INR50.00 Packing Credit/Bills
                      Discounting    P4 (Assigned)

The ratings reflect BMPL's weak financial risk profile marked by
high gearing and weak debt protection measures, customer
concentration in revenue profile, and exposure to fluctuations in
raw material prices and foreign exchange rates.  These weaknesses
are partially offset by the company's healthy track record in the
steel castings business, and reputed clientele.

Outlook: Stable

CRISIL believes that BMPL will continue to benefit from its
established relationships with its customers in the steel castings
business, over the medium term.  The outlook may be revised to
'Positive' if BMPL increases its revenues substantially, while
improving its profitability, capital structure, and cash accruals.
Conversely, the outlook may be revised to 'Negative' if BMPL
undertakes a large, debt-funded capital expenditure programme, or
there is a decline in the company's revenues or profitability,
thus weakening its financial risk profile.

                  About Bangalore Metallurgicals

BMPL was originally set up in 1960 as a partnership firm by
Mr. Maddaiah Ramaiah and his family members; the firm was
reconstituted as a private limited company in 1987.  BMPL
manufactures grey and ductile steel castings; its facility in
Hoskote (Karnataka) has a capacity of 9000 tonnes per annum.  The
castings find application in power generation, turbines, pumps,
valves, engine blocks, automobiles, and machine tools. BMPL has
diversified into the windmill segment in 2009-10 (refers to
financial year, April 1 to March 31) for supply of caps for wind
turbine gearboxes.

BMPL, on a provisional basis, reported a loss after tax of INR8
million on net sales of INR273 million for 2009-10 (refers to
financial year, April 1 to March 31); it reported a profit after
tax of INR0.4 million on net sales of INR309 million for 2008-09.


GEMINI STUDIOS: CRISIL Reaffirms 'BB' Rating on INR193.6MM Loan
---------------------------------------------------------------
CRISIL's ratings on Gemini Studios and Innovations Pvt Ltd's bank
facilities continue to reflect the benefits that GSIPL derives
from its established presence in the television software
production industry, and the strong demand in the market for the
training programmes conducted by its training division, Digital
Academy.  These strengths are partially offset by the company's
weak financial risk profile, marked by high gearing and low net
worth.  CRISIL has also factored in GSIPL's exposure to risks
relating to operations in a single location, Mumbai.

   Facilities                     Ratings
   ----------                     -------
   INR54.00 Million Cash Credit   BB/Stable (Reaffirmed)
   INR193.60 Million Term Loan    BB/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that GSIPL will continue to benefit over the
medium term from its established presence in the television
software production industry.  The outlook may be revised to
'Positive' if the company's gearing and debt protection measures
improve significantly.  Conversely, the outlook may be revised to
'Negative' if cost overruns in TV programme production, or delay
in realisation of receivables from its customers or undertakes
large, debt-funded capital expenditure leading to deterioration in
GSIPL's debt protection metrics.

Update

GSIPL's net sales increased by 71 per cent in 2009-10 (refers to
financial year, April 1 to March 31) over the previous year,
backed primarily by a 66-per-cent increase in trading activity in
2010 vis-a-vis 2009, and realisations (of INR50 million) from one
movie produced in 2010. Currently, the company has two television
serials on air (on Geo TV); two more serials are expected to go on
air by December 2010.  The company expects to receive higher
billing rates for its upcoming television serials.  The operating
margin declined marginally in 2009-10 because of increase in
contribution of low-margin trading activity to its revenues. Its
liquidity remains adequate, with average bank limit utilization of
around 69 per cent for the period between August 2009 and July
2010.  The company has serviced its term debt obligations on time
during 2009-10. Cash accruals are expected to be adequate to meet
term debt commitments maturing in 2010-11.

For 2009-10, GSIPL reported a profit after tax (PAT) of INR9.0
million on net sales of INR394.5 million (provisional figures), as
against a profit after tax (PAT) INR 6.5 million on net sales of
INR230.6 million for the preceding year.

                        About Gemini Studios

Set up in 2000, GSIPL produces television software in the form of
serials, films, tele-films and documentaries.  The company also
offers 38,000 square feet (four floors) of centrally air-
conditioned ready-to-shoot studio locations for shooting of
advertisement films, serials, and movies.  Its training institute,
Digital Academy, offers film production courses. The company also
trades in computer hardware, laptops, rights in film and
television software, and security solutions.


K P STEEL: CRISIL Reaffirms 'BB+' Rating on INR125MM Cash Credit
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of K P Steel Products Ltd
continue to reflect its low margins because of its limited
competitiveness on account of lack of tax benefits, and the
susceptibility of its margins to volatility in steel prices and
the fragmented nature of the steel long products industry.  The
impact of these weaknesses is mitigated by the promoters'
extensive experience in the steel manufacturing industry, and
KPSPL's low gearing.

   Facilities                        Ratings
   ----------                        -------
   INR125 Million Cash Credit        BB+/Stable (Reaffirmed)
   INR50 Million Letter of Credit    P4+ (Reaffirmed)
   INR6 Million Bank Guarantee       P4+ (Reaffirmed)

Outlook: Stable

CRISIL believes that KPSPL's operations will remain small over the
medium term.  However, the company's financial risk profile is
expected to remain stable on the back of its integrated operations
and comfortable capital structure. The outlook may be revised to
'Positive' in case of higher-than-expected accruals, resulting in
a substantial improvement in the company's financial risk profile.
Conversely, the outlook may be revised to 'Negative' in case the
company undertakes larger-than-expected debt-funded capital
expenditure (capex), resulting in deterioration in its capital
structure.

Summary Update

For 2009-10 (refers to financial year, April 1 to March 31), KPSPL
reported net sales of around INR1046 million, which was in line
with CRISIL's estimate; For 2008-09, KPSPL reported a profit after
tax (PAT) of INR4.2 million on net sales of INR1213 million. Lower
sales in 2009-10 were mainly because of lower steel prices in the
year.  KPSPL's operating profit before interest tax and
depreciation (OPBDIT) in 2009-10 was 2.9 per cent, against 2.1 per
cent in 2008-09.  The company maintained its profitability in
2009-10 in line with CRISIL's estimates.  KPSPL spent a capex of
about INR11.7 million, against an estimate of INR5.0 million, in
2009-10 towards supporting equipment like transformer and crane.
The company has capex plans of about INR80 million to INR100
million in 2010-11 towards increasing its ingot manufacturing
capacity to 42,000 tonnes per annum (tpa) from 34,000 tpa.  There
was an equity infusion of INR85 million in 2009-10, towards this.
The company plans to raise term loan of INR40 million to INR50
million for the expansion in 2010-11. The equity infusion and
working capital requirements in 2009-10 were mainly in line with
CRISIL's expectations, which led to gearing of about 0.50 times as
on March 31, 2010.

                          About K P Steel

KPSPL was incorporated in 1992 by Mr. S K Goel and his sons, Mr.
Kamal Goel and Mr. Pankaj Goel. The company manufactures thermo-
mechanically treated (TMT) bars, rounds, and angles at its
facility in Muzaffarnagar (Uttar Pradesh), and has a capacity of
42,000 tonnes per annum (tpa). It also has ingot manufacturing
capacity of 34,000 tpa. The company markets its products under the
Amba Sariya brand. Its clientele largely comprises distributors in
Uttar Pradesh and New Delhi. It also sells directly to builders
and government bodies.


MUTHOOT HOTELS: ICRA Reaffirms 'LBB+' Rating on INR5.6cr Term Loan
------------------------------------------------------------------
ICRA has reaffirmed the 'LBB+' rating to the INR5.6 crore foreign
currency term loans and INR0.5 crore fund based facilities of
Muthoot Hotels Private Limited.  The outlook on the long term
rating is Stable.  ICRA has also reaffirmed the 'A4+' rating to
INR2.0 crore non-fund based facilities of MHPL.

The ratings consider the small scale of operations and the
stretched financial profile of the group characterized by low
profitability and negative free cash flows. The ratings, however,
continue to derive comfort from the background of the promoters,
periodical equity infusions, and the key management contract tie-
ups. Owing to the weak market conditions in the Indian hotels
industry in the last two years, and operational reasons, the group
has deferred some of its projects.  While this helped support
capital structure during the downturn, it also resulted in cost
overruns for a project.

                        About Muthoot Hotels

Muthoot Hotels Private Limited, a subsidiary of MHIVPL, owns a
Five Star Deluxe Beach Resort in Kovalam, Trivandrum - "Taj Green
Cove Resort", under a management contract with Indian Hotels
Company Limited.

Muthoot Hotels and Infrastructure Ventures Private Limited
(MHIVPL) is part of the Muthoot Pappachan Group of companies, a
Kerala based group with business interests in hospitality,
infrastructure development, non-banking financial services,
automobile dealership etc.  Other business entities of the MPG
include Muthoot Capital Services Limited and Muthoot Fincorp
Limited, two Non-Banking Finance Companies, and an automobile
dealership company, Muthoot Motors (Private) Limited.  MHIVPL,
started as a partnership firm "Muthoot Hotels & Tourism Ventures"
in 1999, operates through the following segments -- Muthoot Plaza
(57 room five star hotel in Trivandrum under a management contract
with Sarovar Group).  The Muthoot Skychef (flight kitchen) and
Muthoot Technopolis (IT Park in Cochin SEZ). The company also
operates a restaurant in Trivandrum airport.

Recent Results (Provisional)

The company has reported net loss of INR0.3 crore on operating
income of INR16.7 crore for the year ended March 31, 2010.


N. MAHALINGAM: CRISIL Assigns 'BB+' Ratings to Various Bank Debts
-----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to N. Mahalingam and
Company's bank facilities.

   Facilities                          Ratings
   ----------                          -------
   INR50.00 Million Cash Credit        BB+/Stable (Assigned)
   INR11.50 Million Term Loan          BB+/Stable (Assigned)
   INR15.00 Million Proposed Working   BB+/Stable (Assigned)
                   Capital Term Loan

The rating reflects NMC's below-average financial risk profile,
marked by a low operating margin, high gearing, and below-average
debt protection metrics; the rating also factors in NMC's
geographical concentration in operations and exposure to intense
competition in the automotive dealership and retailing of
petroleum products businesses.  These rating weaknesses are
partially offset by NMC's established presence in diverse business
segments, and its promoters' experience in the trading and
distribution business.

Outlook: Stable

CRISIL believes that NMC will continue to benefit from its
presence in diverse business segments, and its promoters'
experience in the trading and distribution business spanning over
more than five decades.  The outlook may be revised to 'Positive'
if NMC increases its scale of operations, while improving its
profitability and capital structure.  Conversely, the outlook may
be revised to 'Negative' if NMC's profitability and revenues
decline sharply, its partners withdraw a significant quantum of
capital from the firm, or if NMC undertakes a larger-than-
expected, debt-funded capital expenditure programme, thereby
weakening its financial risk profile.

                        About N. Mahalingam

Set up as a proprietorship concern by the late Mr. Nachimuthu
Mahalingam in 1954, NMC was reconstituted as a partnership firm in
1966. The firm belongs to the Shakti group of Coimbatore (Tamil
Nadu); the group is present across various sectors including
sugar, automotive components, financing, dairy, tea and coffee
estates, logistics services, automobile dealerships, health,
education, and textiles.

NMC has a presence across diverse business segments, such as
trading in white goods (television sets, washing machines,
refrigerators, microwave ovens, and grinders), trading in
automobiles and petroleum products, and generation of wind power.
The firm has eight retail showrooms and three petrol bunks across
Coimbatore.

NMC, on a provisional basis, reported a profit after tax (PAT) of
INR1.6 million on net sales of INR1.2 billion for 2009-10 (refers
to financial year, April 1 to March 31); it reported a PAT of
INR3.3 million on net sales of INR1.2 million for 2008-09.


P.C. PATEL: ICRA Places 'LBB+' Rating on INR6cr Cash Credit
-----------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR 6.00 crore cash
credit facility of P.C. Patel & Co.  The outlook for the rating is
stable.  ICRA has also assigned an 'A4+' rating to the INR 16.00
crore, short-term, non-fund based, bank guarantee limits of PCP.

The ratings are constrained by the limited scale of operations
with single mineral concentration in lignite mining in the states
of Rajasthan and Gujarat and elevated gearing levels on account of
significant capital expenditure during last few years for
purchasing equipment for new contracts.  The ratings also take
into account the vulnerability of profitability to diesel price
variation in case of diesel usage being higher than the allowed
levels, regulatory risks associated with mining operations and
presence of LD (Liquidated Damage) clauses in all contracts making
it critical to achieve the monthly mining quantities. The ratings
are further constrained by  the partnership nature of the firm
whereby any substantial capital withdrawals from the
capital account can adversely affect the capital structure.

The ratings however reflect the established position of the firm
with more than 20 years of experience in overburden removal and
lignite mining services, moderate entry barriers for new players
on account of stringent technical and financial qualification
criteria and positive outlook for the coal/lignite mining sector
due to the significant capacity additions proposed for thermal
based power generation which translates into favorable business
potential for mining service providers.  The ratings also take
into account healthy order book size consisting of contracts from
reputed clientele.  The ratings also factor in moderate financial
profile characterized by healthy profitability margins and debt
service indicators.

                         About P.C. Patel

P.C.Patel & Co. is a partnership concern established in the year
1994 and is engaged in overburden removal and lignite excavation
contract works. The firm was established by five partners namely
Mr. Prabhulal Mulji Dholu, Mr. Chhaganlal Mulji Dholu, Mr. Mulji
Kanji Dholu, Mr. Manji Kanji Dholu and Mr. Kantilal Harji Patel.
It is an "AA" class government registered contractor and has been
working as supplier of contract mining services to its clients in
infrastructure sector in India.

Recent Results

For the year ended March 31, 2010, the firm reported an operating
income of INR80.66 crore and profit after tax of INR6.07 crore
(unaudited).


SMS INFRASTRUCTURE: ICRA Assigns 'LBB+' Rating to INR192cr Debt
---------------------------------------------------------------
ICRA assigns 'LBB+' rating to INR192 crore fund-based facilities
and INR608 crore non-fund based facilities of SMS Infrastructure
Limited.  ICRA has assigned a stable outlook to the rating.

The rating takes into account the weak financial profile
characterized by instances of letter of credit devolvement in the
past one year and delay in debt servicing by subsidiaries for
which SMSIL has issued corporate guarantees.  Further the rating
also takes into account the high geographical and client
concentration risk, high level of contingent liabilities with
contingent liabilities/(TNW+ Minority interest) at 2.39 times as
on March 31, 2010 and high working capital intensity of 35.7%
during FY 2010 the company. Nevertheless, the rating is supported
by the strong and diversified order book, long track record of the
promoters and healthy growth in operating income during the period
FY 2006-10 at CAGR of 49%.

SMSIL has six major subsidiaries; two operational toll (BOT)
projects, two operational waste treatment plants, one undertaking
hydropower project on BOT basis and one undertaking development of
multi-level car parking cum commercial complex on BOT basis. ICRA
notes that there have been delays in servicing the debt in these
subsidiaries in the past and SMSIL would be required to infuse
additional funds in these subsidiaries in event the cash flows of
the subsidiaries are insufficient to repay the debt.

SMSIL?s order book increased to INR 3499.92 crore as on March 31,
2010 from INR1324.89 crore as on March 31, 2008 with an order
book/OI ratio of 4.29 as on March 31, 2010.  The increase in order
book was driven by the receipt of orders in the infrastructure
space and company's capability to execute projects in new segments
like execution of waste treatment plant and construction of
electrical transmission infrastructure. SMSIL's has a reputed
clientele with instances of getting repeat orders in the past.
Though the order book is well diversified the top four clients
account for 55.5% of the order book thereby increasing the client
concentration risk for the company.

On a standalone basis, the operating income of the company
increased at a CAGR of 49% from INR165.0 crore in FY 2006 to INR
815.7 crore in FY 2010 supported by a steady increase in order
inflow.  Overall, SMSIL has been able to sustain margin of 12-14%
over the last five years. SMSIL's net profit margin has declined
due to increase in its interest and finance charges and
depreciation during FY 2006-09. In FY 2010 net profit margins have
increased to 11.5% from 4.0% in FY 2009 due to non-operating
income of INR67.7 crore on account of profit on sale of stake in
its subsidiary- SMS Shivnath Infrastructure to another wholly
owned subsidiary of SMSIL- SMS tolls and developers Ltd. SMS
Shivnath Infrastructure raised INR 110 crore through toll
securitisation during FY 2010.  The money was advanced to group
company- SMS tolls and developers Ltd which paid it to SMSIL as
consideration for purchase of 25% stake in SMS Shivnath
Infrastructure.


WELMECH ENGINEERING: ICRA Puts 'LB' Rating on INR0.5cr Term Loan
----------------------------------------------------------------
ICRA has assigned 'A5' rating to the INR 5.8 crore Short-term Non
Fund based bank facilities of Welmech Engineering Company Private
Limited.  ICRA has also assigned 'LB' rating to the INR 0.5 crore
Term Loan Facilities and INR5.7 crore of Long Term Fund based bank
facilities of the company.

The ratings take into account the delays in repayment of short
term loan, relatively high gearing and weak coverage indicators of
the company.  The ratings also take into account the small scale
of operations of the company restricting the economies of scale,
the declining revenue over the past two years, relatively thin net
profits, high client and supplier concentration risk, and high
levels of bad debts and debtors greater than 6 months.  The
ratings take note of the long standing experience of the
promoters in the engineering industry.

Incorporated in 1989, Welmech Engineering Company Private Limited
is located in Chennai.  The company manufactures industrial heat
treatment furnaces and ovens.  The company operates in the
domestic market predominantly catering to reputed clientele with
limited exports to the gulf region. The company is run by Mr. R.
Satagopan and Mr. Karunakaran who possess significant experience
in the industrial furnace segment.

Recent Results
The company reported provisional figures of profit after tax (PAT)
of INR  0.6 crore on an operating income of INR 24.5 for 2009-10
as against a PAT of 0.6 crore on an operating income of 32.0 crore
in 2008-09.


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


ORIX-NRL TRUST: S&P Downgrades Rating on Class D to 'B-'
--------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the class
D trust certificates issued under the ORIX-NRL Trust 13
transaction by three notches to 'B- (sf)' from 'BB- (sf)', and
removed the rating from CreditWatch with negative implications
where it was placed on July 21, 2010 (see list below).  At the
same time, Standard & Poor's affirmed its ratings on classes B, C,
E to H, and X trust certificates.

Of the 12 specified bonds/nonrecourse loans that initially backed
the transaction, only one specified bond and two loans remain.
S&P lowered the rating on class D because:

Based on progress in the recovery process from the office building
that backs the defaulted specified bond, which accounts for about
13% of the total initial issuance amount, S&P has lowered the
likely recovery amount from the property to about 30% from 48%
projected in the assumption that S&P made when S&P reviewed the
ratings on Aug. 18, 2009.

With regard to the two remaining loans maturing in May 2011 and
August 2011, respectively, which account for about 7% each of the
total initial issuance amount, S&P also lowered the expected
recovery amount from the underlying office building (in Tokyo) and
retail facility (in Okayama) to about 69% and 64%, respectively,
of S&P's original assumptions.

The ratings on classes B, C, E to H, and X trust certificates were
affirmed.  Of the 12 loans/specified bonds that initially backed
the transactions, nine loans/specified bonds (originally
representing a combined 74% or so of the total initial issuance
amount of the trust certificates) have been repaid.  As the
repayment proceeds are used to redeem the upper-level classes of
trust certificates in a sequential order, credit enhancement for
classes B and C has improved from S&P's initial assumption.  The
ratings on classes E to H were affirmed because they had already
been lowered to 'CCC (sf)'.

ORIX-NRL Trust 13 is a multi-borrower CMBS transaction.  The trust
certificates were initially secured by 12 nonrecourse
loans/specified bonds (tokutei shasai) extended to 11 obligors,
which were originally backed by 21 real estate certificates and
real estate properties.  The transaction was arranged by ORIX
Corp., and ORIX Asset Management & Loan Services Corp. is the
transaction servicer.

The ratings address the full payment of interest and ultimate
repayment of principal by the legal final maturity date in
September 2013 for the class B to H certificates, and the timely
payment of available interest for the interest-only class X
certificates.

           Rating Lowered And Removed From Creditwatch

                        ORIX-NRL Trust 13
      JPY21.1 billion trust certificates due September 2013

  Class    To          From                  Initial issue amount
  -----    --          ----                  --------------------
  D        B- (sf)     BB- (sf)/Watch Neg    JPY1.1 bil.

                        Ratings Affirmed

  Class          Rating    Initial issue amount
  -----          ------    --------------------
  B              AAA (sf)  JPY1.7 bil.
  C              AA (sf)   JPY1.4 bil.
  E              CCC (sf)  JPY0.4 bil.
  F              CCC (sf)  JPY0.6 bil.
  G              CCC (sf)  JPY0.2 bil.
  H              CCC (sf)  JPY0.3 bil.
  X              AAA (sf)  JPY21.1 bil. (Initial notional
                                         principal)

               * Class A has already been redeemed


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


CENTURY CITY: Reaches Out-of-Court Deal Over NZ$8.95-Mil CMT Debt
-----------------------------------------------------------------
The Dominion Post reports that Wellington property tycoon Terry
Serepisos, owner of Century City Ventures Ltd, has reached an out-
of-court deal to settle the NZ$8.95 million owed to Canterbury
Mortgage Trust.

According to the Dominion Post, the trust has suspended court
action against Mr. Serepisos and two of his companies, Century
City and New Millenium Design, for two loans secured against
Wellington commercial buildings.

The Dominion Post relates Don McBeath, chairman of the trust's
manager, Fund Managers Canterbury, said Mr. Serepisos had agreed
to repay one of these loans in the next month, using money from
the sale of several Wellington apartments.

The report notes Mr. McBeath said that if Mr. Serepisos failed to
make repayments as scheduled, the court action could be resumed.
"CMT has made an arrangement with Mr. Serepisos which we believe
to be of benefit to our repayment programme and to investors," the
Dominion Post quoted Mr. McBeath as saying.

The Troubled Company Reporter-Asia Pacific, citing
BusinessDay.co.nz, reported on Oct. 6, 2010, that CMT had two
first ranking mortgages against Wellington commercial building
owned by Mr. Serepisos, including the Century City Hotel.
Both companies are in default on repayments to CMT and
Mr. Serepisos has faced ongoing pressure from other creditors,
which have included Wellington City Council and the Accident
Compensation Corporation, according to BusinessDay.co.nz


SOUTH CANTERBURY: NZ Superfund, Ngai Tau Bid to Buy SCF Rejected
----------------------------------------------------------------
The New Zealand Herald reports that Opposition finance spokesman
David Cunliffe said the New Zealand Superfund and Ngai Tahu were
part of a consortium of investors whose bid for South Canterbury
Finance was rejected last month.

According to the NZ Herald, details of the bidders were revealed
by Mr. Cunliffe in Parliament Wednesday as he alleged government
mismanagement of the failed finance company that he said may cost
the taxpayer as much as NZ$500 million.

The NZ Herald relates Mr. Cunliffe told the House that the
receivers rejected a NZ$1.5-billion offer made on August 31 by a
consortium led by Permanent Investments.

Another offer again led by Permanent Investments but also
including the New Zealand Superannuation Fund and Ngai Tahu was
made on September 13, he said, and also rejected, according to NZ
Herald.

                       About South Canterbury

Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services.  The Company's principal activities are
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 advances 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 August 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 said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.


================
S R I  L A N K A
================


BANK OF CEYLON: Fitch Affirms Individual Rating at 'D/E'
--------------------------------------------------------
Fitch Ratings Lanka has revised Bank of Ceylon's Outlook to
Positive from Stable, and simultaneously affirmed its National
Long-term rating at 'AA(lka)', Individual rating at 'D/E' and
Support rating at '4'.  The agency has also affirmed BOC's
subordinated debentures at 'AA-(lka)'.

BOC's Positive Outlook largely reflects the prospect of a
potential improvement in the government's profile as indicated by
the Positive Outlook on Sri Lanka's Long-Term IDR, and the
consequent increased capacity for the government to provide
support to the bank in view of its high systemic importance and
importance to the government.

BOC's ratings reflect its high systemic importance as the largest
bank in Sri Lanka, full state ownership, strong franchise and
modest financial profile.

BOC's loan book grew by 23.6% in H110, supported by renewed
private sector credit demand and reduced lending rates, following
a further contraction of its loan book by 1.6% in 2009 (2008:
contraction of 4%).  Fitch notes that BOC's loan book exposure to
the state sector (government of Sri Lanka and state-owned-
enterprises) has gradually decreased, but remains significant,
reflecting its strong state linkages (34% of loans at end-2009,
49% at end-2006).  Corporate and consumer/retail exposures
accounted for 27% and 39%, respectively, of BOC's loan book at
end-2009.

Similar to the rest of the banking sector, BOC experienced a
deterioration of its asset quality in 2009.  The gross NPL ratio
increased to 5.8% at end-2009 (end-2008: 5.2%), impacted by
increased NPLs and loan book contraction, before improving to 5%
at H110.  Fitch expects a reduction of BOC's NPLs during Q310,
reflecting the recovery initiatives implemented by the bank and a
gradually improving macro-economic environment.

BOC's profitability (return on asset) increased to 0.9%
(annualized) in H110, following a decrease to 0.6% in 2009 (2008:
0.8%), mostly on account of lower foreign exchange income from
currency translation, cushioned by gains on government securities
and equity.

BOC reported a significant growth in deposits by 29% in 2009,
which accounted for 75% of its funding (end-2009: 65%).
Furthermore, Fitch notes that the proportion of demand and savings
deposits diminished to 49% at end-H110 (end-2006: 63%).

BOC reports strong capital adequacy ratios, benefiting from a high
proportion of state sector exposures which are zero risk weighted
(end-June 2010: Tier 1 ratio: 10%, total capital adequacy ratio:
15%).  However, Fitch considers BOC's absolute capitalization
(equity/assets) to be relatively low (H110: 4.6%), compared with
about 9.4% for 'AA(lka)'-rated licensed commercial bank peers, in
view of its scale of operations and systemic importance.

BOC is the largest LCB in Sri Lanka, accounting for 17.9% of
banking sector assets at December 2009.  The bank has an extensive
branch network of 310 branches including a branch in Chennai and
Male.  In April 2010, BOC converted its London branch to a fully
owned subsidiary, BOC UK Ltd.  This is expected to provide the
bank an opportunity for expansion into Europe over the long-term.
The re-organization of BOC's Specialized Leasing Company and
Registered Finance Company subsidiaries is set to take place
through a merger of these entities.



                             *********

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 C. Udtuhan, Marites O. Claro,
Rousel Elaine T. Fernandez, Joy A. Agravante, Frauline S. Abangan,
and Peter A. Chapman, Editors.

Copyright 2010.  All rights reserved.  ISSN: 1520-9482.

This material is copyrighted and any commercial use, resale or
publication in any form (including e-mail forwarding,
electronic re-mailing and photocopying) is strictly prohibited
without prior written permission of the publishers.
Information contained herein is obtained from sources believed
to be reliable, but is not guaranteed.

TCR-AP subscription rate is US$625 for 6 months delivered via e-
mail.  Additional e-mail subscriptions for members of the same
firm for the term of the initial subscription or balance
thereof are US$25 each.  For subscription information, contact
Christopher Beard at 240/629-3300.





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