TCRAP_Public/101201.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

          Wednesday, December 1, 2010, Vol. 13, No. 237

                            Headlines


A U S T R A L I A

ARISTOCRAT LEISURE: S&P Downgrades Corp. Credit Rating to 'BB+'
AUSTRIAN ENERGY: Workers to be Paid but Future Remains Uncertain
DIRECT FACTORY: Owner Faces AU$14-Million Legal Claim


C H I N A

CHINA IVY: Posts US$363,400 Net Loss in September 30 Quarter
HONG LEONG: Fitch Affirms 'BB+' Support Rating Floor


H O N G   K O N G

ESQUEL INVESTMENT: Creditors' Proofs of Debt Due December 29
EURASIAN NETWORK: Creditors' Proofs of Debt Due December 17
EXCO MONEYBROKING: Creditors' Proofs of Debt Due December 17
FELICITY NURSERY: Creditors' Proofs of Debt Due December 26
FIRST CHINA: Creditors' Proofs of Debt Due December 28

FOREVER PROFIT: Creditors' Proofs of Debt Due December 10
HAND IN HAND: Creditors' Proofs of Debt Due December 27
HENLY ENGINEERING: Creditors Get 13.81% Recovery on Claims
HIH UNDERWRITING: Blaauw and Lam Step Down as Liquidators
HK CHUNG: Creditors' Proofs of Debt Due December 28

HK DAIEI: Members' Final Meeting Set for December 28
INTERFORM INVESTMENT: Creditors Get 100% Recovery on Claims
INFOSCIENCE HOLDINGS: Court Enters Wind-Up Order
JADE LANE: Commences Wind-Up Proceedings
JIM GLASS: Court Enters Wind-Up Order

JOIN WEALTHY: Creditors Get 100% & 2.36% Recovery on Claims
JUMBO LIAISON: Members' Final Meeting Set for December 28
KONHAN INVESTMENTS: Court Enters Wind-Up Order
KINGSPACK INDUSTRIAL: Shareholders' Final Meeting Set for Dec. 28
KUEN FAT: Placed Under Voluntary Wind-Up Proceedings

LAND PARTNERS: Court Enters Wind-Up Order
LING SING: Court Enters Wind-Up Order
LONGWAY CONST: Creditors Get 100% & 0.81% Recovery on Claims


I N D I A

ABHITEX INT'L: CRISIL Lifts Rating on INR220MM Term Loan to 'B+'
BABA NAGA: CRISIL Assigns 'B-' Rating to INR22.8 Million Term Loan
CCAP LIMITED: CRISIL Assigns 'D' Rating to INR31.3MM Cash Credit
DIVYA YOG: CRISIL Rates INR250 Million Cash Credit at 'BB+'
FILTER MANUFACTURING: CRISIL Puts 'BB-' Rating on INR11MM LT Loan

ISH TRAVEL: CRISIL Reaffirms 'B' Rating on INR120 Mil. Overdraft
IVY HEALTH: CRISIL Reaffirms 'BB' Rating on INR216.1MM Term Loan
K B ZAVERI: CRISIL Rates INR180 Million Cash Credit at 'B-'
KINGFISHER AIRLINES: Board Approves Debt Recast Package
MAHEE ENGINEERING: CRISIL Assigns 'BB' Rating to INR20.3MM LT Loan

PALIWAL INFRASTRUCTURE: CRISIL Lifts Rating on Term Loan to 'B+'
PALIWAL OVERSEAS: CRISIL Raises Rating on INR424.7MM Loan to 'B+'
PATWARI STEELS: CRISIL Assigns 'BB' Rating to INR77.5M Cash Credit
RAJPUTANA STAINLESS: CRISIL Assigns 'BB+' Rating to INR65MM Loan
SARVOTTAM VEGETABLE: CRISIL Places 'BB-' Rating on INR2.1MM Loan

SHIV SHAKTI: CRISIL Assigns 'D' Rating to INR10 Million Term Loan
SOUTHERN COOLING: CRISIL Assigns 'BB+' Rating to INR13.4MM Loan
SRI SAI RAJA: CRISIL Rates INR304.5 Million Long-Term Loan at 'D'


J A P A N

JAPAN AIRLINES: Sells All Stake in TFK Corporation to SATS


M A L A Y S I A

EON BANK: Fitch Maintains Individual Rating at 'C/D'


N E W  Z E A L A N D

E-GAS LTD: Nova Energy Buys E-Gas Customer Base
EQUITABLE MORTGAGES: Receivership Won't Impact Government Books
EQUITABLE MORTGAGES: S&P Downgrades Issuer Credit Ratings to 'C/C'
FORGE MEDIA: Defaults on Loan Covenant With Major Financier
HANOVER FINANCE: SFO Summons 30 Staff on Fraud Probe


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                            - - - - -


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A U S T R A L I A
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ARISTOCRAT LEISURE: S&P Downgrades Corp. Credit Rating to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
corporate credit and debt ratings on Aristocrat Leisure Ltd. to
'BB+' from 'BBB-'.  At the same time, the 'BB+' ratings were
placed on CreditWatch with negative implications.  The rating
actions follow Aristocrat's lower-than-expected earnings forecast
for the company's 2010 financial year.

"The rating actions reflect S&P's concerns that the volatility in
Aristocrat's earnings is higher than expected for an investment-
grade rating," Standard & Poor's credit analyst Gavin Gunning
said.  "In addition, S&P expects Aristocrat's financial risk
profile to be outside its expectations for a 'BBB-' rating."

S&P expects to resolve the CreditWatch following its review of
Aristocrat's capital-management plans, liquidity, and medium-term
operating outlook.  Following this review, S&P expects to either
affirm the 'BB+' rating or lower the rating by one notch.  These
potential rating outcomes assume that S&P's current view of the
company's adequate liquidity position does not change.  S&P will
also monitor the reaction of Aristocrat's key stakeholders to the
company's earnings downgrade announcement.  Also important to
resolution of the CreditWatch will be S&P's analysis of strategies
adopted by Aristocrat to mitigate the expected weakening in its
financial profile.

Mr. Gunning added: "Although S&P continues to recognize the
benefits of Aristocrat's geographic diversity, the company's
trading announcement evidences the cyclical and competitive
challenges in each of its markets and the limited extent to which
this diversity tempers Aristocrat from earnings volatility."


AUSTRIAN ENERGY: Workers to be Paid but Future Remains Uncertain
----------------------------------------------------------------
Administrators for Austrian Energy and Environment's Australian
subsidiary, a sub-contractor at the Worsley Alumina refinery, said
that they have received initial confirmation that funds are
available to pay workers, ABC News reports.

ABC News notes that at a meeting, administrator Martin Green told
workers he hopes to secure money made available for their
entitlements so they can return to the site soon.  ABC News
relates that the Australian Manufacturing Workers' Union's Steve
McCartney said employees are waiting to see the money in their
pockets.

As reported in the Troubled Company Reporter-Asia Pacific on
November 26, 2010, ABC News said that Austrian Energy and
Environment's Australian subsidiary has gone into administration.
ABC News related that more than 500 workers at Worsley Alumina in
Western Australia are affected.  According to ABC News, the
Australian subsidiary was constructing an AU$500 million power
station for the refinery in the state's South West.  Three
quarters of the project has been completed to date, the report
related.  The administrator, Business, Reconstruction and
Insolvency Ferrier, said AEE has debts of more than AU$40 million,
ABC News noted.

Austrian Energy and Environment's Australian subsidiary has around
130 staff at its head office in Sydney.


DIRECT FACTORY: Owner Faces AU$14-Million Legal Claim
-----------------------------------------------------
Austexx Pty Ltd, owner of Direct Factory Outlet chain, is facing
another setback after being hit with a AU$14 million legal claim
over a loan relating to the South Wharf DFO project that almost
collapsed earlier this year, James Thompson at SmartCompany
reports.

SmartCompany says Texxcon, a subsidiary of Melbourne-based
construction and engineering company Contexx, lodged a writ in the
Victorian Supreme Court, alleging Austexx breached the Trade
Practices Act over a AU$14 million loan the company took from a
joint venture company that was constructing the South Wharf
development.

Citing Texxcon's claim, SmartCompany relates that Austexx borrowed
AU$14 million from a joint venture company called Nominexx, a
company set up to house the joint venture from Austexx and
Texxcon.  However, SmartCompany notes, Texxcon claims the loan was
not repaid and says Austexx engaged in misleading and deceptive
conduct over the deal.

Austexx is yet to file a statement of defence, SmartCompany adds.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 20, 2010, the Business Spectator said Direct Factory Outlet
was granted a bank bailout after its owner, Austexx Pty Ltd,
struck an agreement with lenders, which is likely to see the firm
avoid being placed in receivership.  Business Spectator related
that a banking syndicate including Suncorp-Metway Ltd., National
Australia Bank Ltd., St George Bank and Royal Bank of Scotland
owed AU$450 million have agreed to extend a line of credit to DFO
to ensure it can complete the construction of its unfinished South
Wharf retail development.

In September, the company struck a deal to sell four DFO outlets
and a 50% stake in the South Wharf project to CFS Retail for
AU$498 million, SmartCompany reports.  This deal is expected to be
settled in the coming weeks.

Founded in 1996, Direct Factory Outlets has eight factory outlet-
style centres operating on the Eastern Seaboard.  It was founded
in 1996 by rich list members David Golberger and David Wieland,
and is owned by holding company Austexx Pty Ltd.


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CHINA IVY: Posts US$363,400 Net Loss in September 30 Quarter
------------------------------------------------------------
China Ivy School, Inc., filed its quarterly report on Form 10-Q,
reporting a net loss of $363,392 on $1.57 million on revenue for
the three months ended September 30, 2010, compared with a net
loss of $391,278 on $1.65 million of revenue for the same period
last year.

The Company's balance sheet as of September 30, 2010, showed
$15.8 million in total assets, $14.4 million in total liabilities,
and stockholders' equity of $1.4 million.

Michael T. Studer CPA P.C., in Freeport, N.Y., expressed
substantial doubt about the Company's ability to continue as a
going concern, following the Company's 2009 results.  The
independent auditors noted that as of Dec, 31, 2009, and 2008, the
Company had cash of $46,187 and $58,984, respectively, and working
capital deficits of $11.0 million and $13.3 million, respectively.
In addition, the Company had an accumulated deficit of
$5.1 million and $4.3 million as of Dec. 31, 2009, and 2008,
respectively.

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

               http://researcharchives.com/t/s?7008

Based in Jiangsu Province, P.R. China, China Ivy School, Inc. was
incorporated in the State of Nevada.  The Company operates an
educational facility under the name "Blue Tassel School" which
provides a comprehensive curriculum required by the government of
the People's Republic of China, supplemented by a broad range of
elective courses which may be chosen from by the school's
students.


HONG LEONG: Fitch Affirms 'BB+' Support Rating Floor
----------------------------------------------------
Fitch Ratings has affirmed Hong Leong Bank Berhad's Long-term
foreign currency Issuer Default Rating at 'BBB+' with a Stable
Outlook, and Individual rating at 'C'.  Simultaneously, the agency
is maintaining on Rating Watch Positive HLB's '3' Support rating
and 'BB+' Support Rating Floor.  A detailed list of all ratings
and rating actions follows at the end of this release.

The rating actions consider HLB's proposed MYR5.06bn acquisition
of the assets and liabilities of EON Capital, the holding company
of EON Bank ('BBB-'/RWP).  The acquisition continues to be delayed
by the legal dispute between Primus Pacific and certain
shareholders and directors of EON Cap; Primus Pacific is a private
equity fund and EON Cap's largest shareholder.

While the legal dispute adds uncertainty over the proposed deal's
completion, Fitch has affirmed HLB's IDR and other ratings, with
the exception of the Support Rating and Support Floor, as it
expects the bank's financial fundamentals to remain satisfactory
even after the proposed acquisition.  The agency expects to
resolve the RWP on HLB's Support Rating and Support Floor rating
once there is greater clarity on the outcome of the proposed deal.

While the transaction would consume capital, the rating
affirmations are underpinned by the high likelihood that
management would restore capital to satisfactory levels.  This
reflects Fitch's expectation that financing plans previously made
in early 2010 would be reassessed to take into account the growth
of both HLB and EON Bank, should the deal materialize.  The Stable
Outlook reflects the agency's view that the bank's credit profile
would continue to be reasonably healthy even if the proposed
acquisition were to be successful, with potential integration
issues mitigated by HLB's conservative management.

Fitch took similar rating actions on 12 July 2010 with regards to
the proposed deal to reflect capital restorative measures such as
a proposed rights issue (MYR1.6bn) and hybrid capital issues
(MYR1.8bn), the prospect of greater diversification and enhanced
systemic importance.

The proposed acquisition would make HLB the fourth-largest bank in
Malaysia (previously sixth-largest) by asset size, and also
increase its branch network.  It would increase the bank's
systemic importance and the likelihood of state support, should
the need arise.  This is reflected in the RWP status on HLB's
Support Rating and Support Floor.  With the acquisition, Fitch
estimates the bank's market share of loans would rise to 9% from
5% as at end-September 2010.  At the same time, the agency
estimates its market share of deposits would rise to 10% from 6%
as at end-September 2010.

If the proposed acquisition does not occur, Fitch notes HLB's
financial profile would remain largely the same prior to its bid
for EON Cap, which would result in its credit ratings remaining
unchanged.

The detailed list of the ratings and rating actions is:

  -- Long-term foreign currency IDR affirmed at 'BBB+' with a
     Stable Outlook;

  -- Short-term foreign currency IDR affirmed at 'F2';

  -- Individual rating affirmed at C;

  -- Support Rating of '3' on RWP;

  -- Support Floor of 'BB+' on RWP; and

  -- Long-term deposits affirmed at 'A-'.


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H O N G   K O N G
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ESQUEL INVESTMENT: Creditors' Proofs of Debt Due December 29
------------------------------------------------------------
Creditors of Esquel Investment Company Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 29, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on November 15, 2010.

The company's liquidator is:

         Francis Young
         20th Floor
         Tung Wai Commercial Building
         109-111 Gloucester Road
         Wanchai, Hong Kong


EURASIAN NETWORK: Creditors' Proofs of Debt Due December 17
------------------------------------------------------------
Creditors of Eurasian Network Services Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 17, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on November 18, 2010.

The company's liquidators are:

         Ying Hing Chiu
         Chan Mi Har
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


EXCO MONEYBROKING: Creditors' Proofs of Debt Due December 17
-------------------------------------------------------------
Creditors of Exco Moneybroking Hong Kong Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 17, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on November 18, 2010.

The company's liquidators are:

         Ying Hing Chiu
         Chan Mi Har
         Level 28, Three Pacific Place
         1 Queen's Road East
         Hong Kong


FELICITY NURSERY: Creditors' Proofs of Debt Due December 26
-----------------------------------------------------------
Creditors of Felicity Nursery Education Centre Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by December 26, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on November 19, 2010.

The company's liquidator is:

         Sin King Cheung
         10/F., Crason Commercial Centre
         333 Nathan Road
         Kowloon, Hong Kong


FIRST CHINA: Creditors' Proofs of Debt Due December 28
------------------------------------------------------
Creditors of First China Property Development Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 28, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on November 22, 2010.

The company's liquidator is:

         Sy Mei Ling
         38th Floor, Tower One
         Lippo Centre, 89 Queensway
         Hong Kong


FOREVER PROFIT: Creditors' Proofs of Debt Due December 10
---------------------------------------------------------
Creditors of Forever Profit Limited, which is in liquidation, are
required to file their proofs of debt by December 10, 2010, to be
included in the company's dividend distribution.

The company's liquidators are:

         James Wardell
         Chan Wai Dune, Charles
         Room 1601-1602
         One Hysan Avenue
         Causeway Bay
         Hong Kong


HAND IN HAND: Creditors' Proofs of Debt Due December 27
-------------------------------------------------------
Creditors of Hand in Hand Association Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by December 27, 2010, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on November 15, 2010.

The company's liquidator is:

         Kwan Hau Yuk
         Flat 1711, New Commerce Centre
         19 On Sum Street
         Shatin, New Territories
         Hong Kong


HENLY ENGINEERING: Creditors Get 13.81% Recovery on Claims
----------------------------------------------------------
Henly Engineering Limited, which is in creditors' voluntary
liquidation, paid the dividend to its creditors on November 26,
2010.

The company paid 13.81% for all preferred claims.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


HIH UNDERWRITING: Blaauw and Lam Step Down as Liquidators
---------------------------------------------------------
Mr. Jan G W Blaauw and Mr. Rainier Hok Chung Lam stepped down as
liquidators of HIH Underwriting Services (Asia) Limited on
November 17, 2010.


HK CHUNG: Creditors' Proofs of Debt Due December 28
---------------------------------------------------
Creditors of Hong Kong Chung Yo Department Company Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by December 28, 2010, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on November 18, 2010.

The company's liquidator is:

         Yiu Kwong Man
         Rooms 1501-3, Far East Consortium Building
         121 Des Voeux Road
         Central, Hong Kong


HK DAIEI: Members' Final Meeting Set for December 28
-----------------------------------------------------
Members of Hong Kong Daiei Company Limited will hold their final
general meeting on December 28, 2010, at Unit A, 23/F, Empire Land
Commercial Centre, 81-85 Lockhart Road, Wanchai, in Hong Kong.

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


INTERFORM INVESTMENT: Creditors Get 100% Recovery on Claims
-----------------------------------------------------------
Interform Investment Company Limited, which is in liquidation,
paid the dividend to its creditors on November 26, 2010.

The company paid 100% for preferred claims.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


INFOSCIENCE HOLDINGS: Court Enters Wind-Up Order
------------------------------------------------
The High Court of Hong Kong entered an order on November 5, 2010,
to wind up the operations of Infoscience Holdings Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


JADE LANE: Commences Wind-Up Proceedings
----------------------------------------
Members of Jade Lane Industrial Limited, on November 19, 2010,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

         Li Cheuk Wai
         Room 507, Nan Fung Tower
         173 Des Voeux Road
         Central, Hong Kong

         Lee Wing Hang
         Room 602, 6/F
         Yue Xiu Building
         160-174 Lockhart Road
         Wanchai, Hong Kong


JIM GLASS: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on May 23, 2009, to
wind up the operations of Jim Glass & Building Material Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


JOIN WEALTHY: Creditors Get 100% & 2.36% Recovery on Claims
-----------------------------------------------------------
Join Wealthy Holdings Limited, which is in creditors' voluntary
liquidation, paid the dividend to its creditors on November 26,
2010.

The company paid 100% and 2.36% for preferred and ordinary claims,
respectively.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


JUMBO LIAISON: Members' Final Meeting Set for December 28
---------------------------------------------------------
Members of Jumbo Liaison Development Limited will hold their final
general meeting on December 28, 2010, at 11:30 a.m., at Room 402,
Highgrade Building, 117 Chatham Road, Tsimshatsui, Kowloon, in
Hong Kong.

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


KONHAN INVESTMENTS: Court Enters Wind-Up Order
----------------------------------------------
The High Court of Hong Kong entered an order on November 2, 2010,
to wind up the operations of Konhan Investments Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


KINGSPACK INDUSTRIAL: Shareholders' Final Meeting Set for Dec. 28
-----------------------------------------------------------------
Shareholders of Kingspack Industrial Limited will hold their final
meeting on December 28, 2010, at 10:00 a.m., at 4th Floor, Wing
Sing Commercial Centre, 12-16 Wing Lok Street, in Hong Kong.

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


KUEN FAT: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------
At an extraordinary general meeting held on November 13, 2010,
creditors of Kuen Fat Investment Company Limited resolved to
voluntarily wind up the company's operations.

The company's liquidator is:

         David Leung
         Room 206, 2nd Floor
         Alliance Building
         130-136 Connaught Road
         Central, Hong Kong


LAND PARTNERS: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on November 2, 2010,
to wind up the operations of Land Partners Surveyors Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


LING SING: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on November 5, 2010,
to wind up the operations of Ling Sing Transportation Limited.

The company's liquidator is Chiu Koon Shou of Victor Chiu Tsang &
Partners.


LONGWAY CONST: Creditors Get 100% & 0.81% Recovery on Claims
------------------------------------------------------------
Longway Construction Engineering Limited, which is in creditors'
voluntary liquidation, paid the dividend to its creditors on
November 26, 2010.

The company paid 100% and 0.81% for preferred and ordinary claims,
respectively.

The company's liquidator is:

         Stephen Liu Yiu Keung
         62/F, One Island East
         18 Westlands Road
         Islands East, Hong Kong


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ABHITEX INT'L: CRISIL Lifts Rating on INR220MM Term Loan to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its ratings on Abhitex International bank
facilities to 'B+/Stable/P4' from 'D/P5'.

   Facilities                        Ratings
   ----------                        -------
   INR220.0 Million Term Loan        B+/Stable (Upgraded from 'D')

   INR600.0 Million Export Packing   P4 (Upgraded from 'P5')
                            Credit

   INR2.2 Million Bank Guarantee     P4 (Upgraded from 'P5')

The upgrade reflects timely servicing of debt by Abhitex since
October 2009. CRISIL believes that Abhitex will generate
sufficient cash accruals to service its term debt obligations over
the medium term.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Abhitex, Paliwal Overseas Pvt Ltd, and
Paliwal Infrastructure Pvt Ltd, together referred to as the
Paliwal group.  This is because the entities have a common
promoter, and derive considerable financial synergies from each
other. PIPL shares 12 per cent of Abhitex's profits and POPL owns
20 per cent of PIPL's equity shares.  The promoter has expressed
intent to consolidate the group structure over the medium term.

For the earlier rating, CRISIL had only combined the financial and
business risk profiles of Abhitex and POPL.  The change in the
analytical approach follows increased financial linkages of these
two entities with PIPL.

The ratings reflect the Paliwal group's exposure to risks
associated with intense competition in home furnishing segment
along with high geographic and customer concentration in revenue
profile, and constrained financial flexibility.  These rating
weaknesses are partially offset by the group's established market
position in the manufacturing home furnishings, high occupancy
rate at its commercial property, and its moderate financial risk
profile marked by moderate gearing and debt protection metrics.

Outlook: Stable

CRISIL believes that the Paliwal group will continue to benefit
from its long-standing presence in the home furnishings market and
high occupancy rate at its commercial properties in Bangalore and
Hyderabad.  The group's financial risk profile is expected to
remain moderate marked by moderate gearing and debt protection
metrics. The outlook may be revised to 'Positive' if the group's
debt protection metrics improve beyond expectation, driven by
increase in cash accruals because of more-than-expected
improvement in operating profitability.  Conversely, the outlook
may be revised to 'Negative' if the group's debt protection
metrics deteriorate significantly because of decline in
profitability or larger-than-expected debt-funded capital
expenditure.

                          About the Group

Abhitex is a partnership firm set up by Mr. Avinash Paliwal and
family in 1993.  The firm manufactures handloom products in the
home textiles segment. Its units are located in Panipat (Haryana).
Abhitex's products include tufted products, bath mats, rugs,
organic towels, beach towels, and terry towels. In 2009-10 (refers
to financial year, April 1 to March 31), it added cotton blankets
and terry towels to its product portfolio. More than 80 per cent
of Abhitex's revenues come from exports.

Established by Mr. Avinash Paliwal in 1985, POPL manufactures and
exports handloom products, including rugs, bath sheets, and bath
mats. In 2004, the company purchased a commercial building, RMZ
Titanium, in Bengaluru, and receives rentals of around INR120
million every year from this property.  In 2008-09, POPL purchased
a commercial property in Shalimar Bagh (Delhi) which is currently
vacant. For POPL, its management intends to close the textile
division and focus on leasing properties over the medium term.

PIPL was established in 2000 by Mr. Avinash Paliwal.  The company
bought a commercial property, RMZ Futura, in Hyderabad, from RMZ
Corp in 2005, and has leased out the property to several tenants,
including entities in the Deloitte group. PIPL acquired the
property for INR2.15 billion, funded through bank debt of INR1.45
billion, lease deposits of INR250 million, and promoters' funds.
RMZ Futura, an approved software technology park, has over 0.38
million square feet of leaseable area, generating rental income of
about INR340 million per annum.

Abhitex reported a book profit of INR1.5 million on net sales of
INR1.67 billion for 2009-10 (refers to financial year, April 1 to
March 31), against book profit of Rs 1.08 million on net sales of
INR1.46 billion for 2008-09.


BABA NAGA: CRISIL Assigns 'B-' Rating to INR22.8 Million Term Loan
------------------------------------------------------------------
CRISIL has assigned its 'B-/Stable' rating to Baba Naga Rice &
General Mills' bank facilities.

   Facilities                            Ratings
   ----------                            -------
   INR140.0 Million Cash Credit Limit    B-/Stable (Assigned)
   INR22.8 Million Term Loan             B-/Stable (Assigned)

The rating reflects BNRGM's weak financial risk profile, marked by
small net worth, high gearing and weak debt protection metrics,
and susceptibility to volatility in raw material prices, vagaries
in the monsoons, and adverse regulatory changes.  These rating
weaknesses are partially offset by benefits it derives from
promoters' industry experience and their financial support.

Outlook: Stable

CRISIL believes that BNRGM's financial risk profile will remain
weak over the medium term because of its large working capital
requirements.  The outlook may be revised to 'Positive' if the
firm's capital structure improves substantially.  Conversely, the
outlook may be revised to 'Negative' if BNRGM's capital structure
deteriorates further, or in case of pressure on the firm's
profitability because of steep decline in prices of rice.

                          About Baba Naga

BNRGM was incorporated by Mr. Rajpal Chadha in 1983. Subsequently,
his son, Mr. Vijay Chadha, and his grandsons, Mr. Sanjeev Chadha
and Mr. Sunil Chadha, joined the business. Since inception, the
firm is engaged in milling and sorting of basmati as well as non-
basmati rice.  It sells 1121 variety of basmati rice and sharbati
variety of non-basmati rice.  The firm has a rice milling and
sorting facility at Amritsar (Punjab), with an installed capacity
of 10 tonnes per hour (tph).

BNRGM reported a profit after tax (PAT) of INR2.7 million on net
sales of INR557 million for 2009-10 (refers to financial year,
April 1 to March 31), against a negligible PAT on net sales of
INR172 million for 2008-09.


CCAP LIMITED: CRISIL Assigns 'D' Rating to INR31.3MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
C C A P Ltd.

   Facilities                        Ratings
   ----------                        -------
   INR31.3 Million Cash Credit       D (Assigned)
   INR67.9 Million Rupee Term Loan   D (Assigned)
   INR70.0 Million Bank Guarantee    P5 (Assigned)

The ratings reflect the fact that CCAP has been frequently
overutilising its cash credit limit for more than 30 days in the
past one year.  The overutilisation has been caused by CCAP's weak
liquidity.

CCAP has a below-average financial risk profile, marked by weak
liquidity. The company, however, derives benefits from its
promoters' extensive experience in the construction industry.

CCAP is a construction company, involved in civil, mechanical, and
electrical engineering. It was set up in 1972 by Mr. Chitratan
Mukherji.  The company has carried out projects for constructing
roads, bridges, production facilities and other civil works, for
government and private entities.  It was sold to Ramayana
Promoters Pvt Ltd (Ramayana) in 2009. Ramayana is an investment
company and is a sister concern of Shelter Projects Ltd (part of
the Shelter group).  The Shelter group is a real estate developer.
It is also involved in the development of housing projects in
partnership with the West Bengal Housing Board.  As on date, CCAP
has an order book of around INR1300 million, which the company
plans to execute over the next two years; the two major projects
are for Bengal Shelter Housing Development Ltd and IVRCL
Infrastructure & Projects Ltd; both the projects involve
construction of housing complexes.

For 2009-10 (refers to financial year, April 1 to March 31), CCAP
reported, on provisional basis, a profit after tax (PAT) of INR22
million on net sales of INR201 million; it reported a PAT of INR5
million on net sales of INR145 million for the preceding year.


DIVYA YOG: CRISIL Rates INR250 Million Cash Credit at 'BB+'
-----------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the cash credit
facility of Divya Yog Mandir Trust.

   Facilities                      Ratings
   ----------                      -------
   INR250 Million Cash Credit      BB+/Stable (Assigned)

The rating reflects DYMT's working-capital-intensive operations,
and uncertainty regarding the amount of funds outflow from the
trust in the form of donations to other related trusts.  These
weaknesses are partially offset by the trust's stable business
risk profile, supported by its established distribution network
and brand name, Divya.

Outlook: Stable

CRISIL believes that DYMT will continue to benefit from its
established Divya brand and retail distribution network, leading
to healthy prospects for its products, especially ayurvedic
medicines, in the Indian market.  The outlook may be revised to
'Positive' if there is certainty regarding the inflow/outflow of
funds in the form of donations to/from the trust.  Conversely, the
outlook may be revised to 'Negative' if DYMT's financial risk
profile deteriorates on account of significant outflow of funds to
other related trusts or/and the trust undertakes a large, debt-
funded capital expenditure programme.

DYMT is a charitable trust founded by Swami Ramdev in 1995 at
Haridwar (Uttarakhand).  The other founding members of the trust
are Swami Shankar Dev and Acharya Balkrishan.  The objectives of
the trust are to establish and manage charitable hospitals for
treatment of the poor, prepare and sell ayurvedic medicines,
distribute literature for the moral upliftment of society, run
education centres for providing free education to the poor, and
carry out research on ayurved and yoga. The major activities of
the trust are managed by Acharya Balkrishan.

For 2008-09 (refers to financial year, April 1 to March 31), DYMT
generated a surplus of INR450 million on net revenues of INR1.79
billion, as against INR505 million and INR1.18 billion,
respectively, for the previous year.


FILTER MANUFACTURING: CRISIL Puts 'BB-' Rating on INR11MM LT Loan
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to Filter
Manufacturing Industries Pvt Ltd's bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR20.0 Million Cash Credit        BB-/Stable (Assigned)
   INR3.0 Million Standby Line        BB-/Stable (Assigned)
                     of Credit
   INR11.0 Million Proposed Long      BB-/Stable (Assigned)
         Term Bank Loan Facility

   INR6.0 Million Long Term Loan      BB-/Stable (Assigned)
   INR30.0 Million Bank Guarantee     P4+ (Assigned)
   INR10.0 Million Letter of Credit   P4+ (Assigned)

The ratings reflect FMIPL's modest scale of, and working-capital-
intensive, operations.  These rating weaknesses are partially
offset by FMIPL's promoter's experience in the industrial filters
and air pollution control segments, and its established customer
relationships.

Outlook: Stable

CRISIL believes that FMIPL will continue to benefit from its
promoter's experience in the industrial filters and air pollution
control systems segment.  The outlook may be revised to 'Positive'
if FMIPL's operating revenues and net cash accruals increase
significantly while its debt protection metrics improve.
Conversely, the outlook may be revised to 'Negative' if the
company's debt protection metrics weaken because of larger than
expected debt-funded capital expenditure or deterioration in
working capital cycle.

                     About Filter Manufacturing

Established in 1972 as a proprietorship concern of Mr. Adrish
Basu, a technocrat and a first-generation entrepreneur, FMIPL was
reconstituted as a private limited company in 1990.  After
Mr. Adrish Basu's demise in 2009, his son, Mr. Pritish Basu has
been looking after the day-to-day management of the company.
FMIPL designs and erects industrial filters and air-pollution
control systems, catering to a wide range of industries, including
steel, fertilizers, power and railways. The company is also into
fabrication of sheet metal and manufacturing of, and trading in,
medical disposables. The manufacturing units are located at Salt
Lake and Rajarhat in Kolkata.

FMIPL reported a profit after tax (PAT) of INR3.5 million on net
sales of INR95.1 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR3.4 million on net sales
of INR88.1 million for 2008-09.


ISH TRAVEL: CRISIL Reaffirms 'B' Rating on INR120 Mil. Overdraft
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Ish Travel & Tours Pvt
Ltd continue to reflect ITTPL's weak financial risk profile and
susceptibility to cyclicality in the airline industry.  These
rating weaknesses are partially offset by ITTPL's improving
operating efficiencies and increasing association with
international airlines in the airline ticketing industry.

   Facilities                       Ratings
   ----------                       -------
   INR120.0 Million Overdraft       B/Stable (Reaffirmed)
   INR20.0 Million Bank Guarantee   P4 (Reaffirmed)

Outlook: Stable

CRISIL believes that ITTPL will maintain its business risk
profile, backed by a strong agent network, and healthy
relationships with domestic and international airlines, over the
medium term.  The financial risk profile is expected to remain
weak over the medium term because of large working capital
requirements.  The outlook may be revised to 'Positive' if ITTPL's
financial risk profile improves, driven by equity infusion by
promoter or significant increase in the company's revenue
diversity.  Conversely, the outlook may be revised to 'Negative'
if slowdown in the airline industry leads to a sharp decline in
ITTPL's profitability, further weakening its financial risk
profile.

Update

In 2009-10 (refers to financial year, April 1 to March 31),
ITTPL's revenues declined mainly because of reduced sales to its
largest client, Cleartrip Travel Services Private Limited;
Cleartrip got registered as an agent by International Air
Transport Association and has started operating independently.
ITTPL's operating profitability improved in 2009-10 because of
reduced bulk sales (which generally carry higher proportion of
trade discounts).  Gearing, as on March 31, 2010, was 3.1 times.
ITTPL's working capital limit utilisation remained high at 90 per
cent on an average over 12 months because of relatively higher
credit period it gets from its sub-brokers.  ITTPL has plans of
launching an online travel portal over the long term to increase
business volumes.  ITTPL reported a profit after tax (PAT) of
INR4.3 million on net sales of INR206.0 million for 2009-10,
against a PAT of INR4.5 million on net sales of INR299.0 million
for 2008-09.

                        About Ish Travel

Set up in 1995 by Mr. Pawan Kumar Khurana, ITTPL is an
International Air Transport Association (IATA)-registered airline
ticketing agency. Based in Delhi, the company covers all the
domestic airlines and about 16 international airlines, and has a
wide network of sub-brokers, comprising IATA- and non-IATA-
registered agents.


IVY HEALTH: CRISIL Reaffirms 'BB' Rating on INR216.1MM Term Loan
----------------------------------------------------------------
CRISIL has reaffirmed its rating on the long-term loans of Ivy
Health and Life Sciences Pvt Ltd, which is part of the Ivy group,
at 'BB/Stable'.

   Facilities                      Ratings
   ----------                      -------
   INR216.1 Million Term Loan      BB/Stable (Reaffirmed)

The rating reflects the Ivy group's sizeable capital expenditure
(capex) plans of more than INR800 million (more than three times
its current net worth) for setting up three hospitals in the
medium term, which exposes the group to risks related to delays in
implementation of, and stabilisation of operations at, the planned
hospitals.  As the capex is to be funded in a debt-to-equity
ration of 2.5:1, the group's gearing is expected to be more than
1.5 times over the medium term. The rating also continues to
reflect the Ivy group's limited market share and the competition
its faces from the other established hospitals in the Chandigarh
region. These rating weaknesses are partially offset by the
group's modern infrastructure, and healthy revenues and
profitability from its hospital in Mohali (Punjab).

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Ivy and its newly floated subsidiary,
Ivy Healthcare Services Pvt Ltd, through which Ivy plans to set up
three hospitals in the medium term. Ivy and Ivy Healthcare are
together referred to as the Ivy group herein. This is because both
the companies are in the same line of business. Also, the debt to
be contracted by Ivy Healthcare for the aforementioned capex will
be guaranteed by Ivy.

Outlook: Stable

CRISIL believes that although the Ivy group will continue to
report healthy revenues and profitability from its hospital at
Mohali (Punjab), its financial risk profile will be constrained
because of the debt to be contracted for the planned capex. The
outlook may be revised to 'Positive' if the group commences
operations at its planned hospitals on time and achieves more-
than-expected sales and profitability.  Conversely, the outlook
may be revised to 'Negative' if the group faces significant time
and cost overruns in implementing its planned project, resulting
in deterioration in its liquidity, or it reports lower-than-
expected sales and profitability.

                         About the Group

Incorporated in 2005, Ivy has set up a 100-bed, multi-specialty
hospital, Ivy Hospital, in Mohali (Punjab).  The hospital, which
began operations in December 2007, specializes in oncology. The
company adopted the health-mall concept, wherein basic
infrastructure, general departments, and utilities, are owned and
operated by the company, while specialty departments, such as
oncology, are outsourced to independent doctors and external
agencies.  A major portion of the investment in medical equipment
is made by the doctors and agencies, while Ivy receives a share of
the department's revenues. Ivy also generates revenues from room
rentals, general departments, and utilities.

Apart from the outsourced specialized departments the hospital has
added more than 15 departments specializing in different fields
such as cardiology, neurology, orthopaedics, pathology, and
paediatrics. The bed capacity has increased to around 150 by March
2010.

Dr. Kanwaldeep Kaur, one of the promoters of the Ivy group, heads
the radiology department.  At present, Ivy has tie-ups with
various companies, including insurance companies and third-party
administrators.  The group plans to expand its market by setting
up three more hospitals in the medium term; for this it has
established Ivy Healthcare as a subsidiary of Ivy.

Ivy, on standalone and provisional basis, reported a profit after
tax (PAT) of INR42.6 million on net sales of INR273.6 million for
2009-10 (refers to financial year, April 1 to March 31); it
reported a PAT of INR1.3 million on net sales of INR122.6 million
for the previous year.


K B ZAVERI: CRISIL Rates INR180 Million Cash Credit at 'B-'
-----------------------------------------------------------
CRISIL has assigned its 'B-/Stable' rating to the cash credit
facility of K. B. Zaveri.

   Facilities                               Ratings
   ----------                               -------
   INR180.0 Million Cash Credit Facility    B-/Stable (Assigned)

The rating reflects the firm's large working capital requirements,
resulting in a weak financial risk profile, marked by high gearing
and weak debt protection measures, and its susceptibility to
volatility in gold prices, and high fragmentation and intense
competition in the jewellery industry.  The ratings are partially
offset by the extensive experience of KB's promoters in the
jewellery industry.

Outlook: Stable

CRISIL expects KB to benefit over the medium term from the
extensive experience of its promoters in the jewellery industry.
The financial risk profile is, however, expected to remain weak
over the medium term, marked by high gearing and weak debt
protection measures.  The outlook may be revised to 'Positive' in
case of strong growth in revenues and profitability, resulting in
an improved financial risk profile or in case of fresh equity
infusion resulting in improved capital structure.  Conversely, the
outlook may be revised to 'Negative' if the firm's net worth is
adversely impacted by inventory price risk or withdrawals in the
firm, if it undertakes a large, debt-funded capacity expansion
programme or its operating margin declines, resulting in further
deterioration in debt protection metrics.

                        About K. B. Zaveri

KB was incorporated in 1988 by Mr. Kanchanbhai Patel.  The
promoters have been in the jewellery business for the past 20
years. Initially, the firm manufactured wholesale jewellery and
also catered to the retail segment.  However, in the past decade,
the firm discontinued wholesale manufacturing and the thrust has
been on the retail segment.

KB is in the business of retailing gold, silver, precious stones
and diamond-studded jewellery, with presence in domestic and
export markets.  The domestic market comprises 90 per cent of its
total sales.  The firm sells jewellery under its registered
trademark of KB and has retail showrooms in Ahmedabad (Gujarat)
and New Jersey (USA).

KB reported a book profit of INR7 million on net sales of
INR550 million for 2009-10 (refers to financial year, April 1 to
March 31), against a book profit of INR6 million on net sales of
INR480 million for 2008-09.


KINGFISHER AIRLINES: Board Approves Debt Recast Package
-------------------------------------------------------
Kingfisher Airlines Limited said that its Board of Directors has
approved a Debt Recast Package (DRP) with lending banks, following
a one-time relaxation in restructuring guidelines sanctioned by
the Reserve Bank of India.

The salient features of the DRP include:

   * conversion of debt of up to INR 1,355 crores from lenders
     into share capital;

   * conversion of debt of up to INR 648 crores from promoters
     into share capital;

   * reschedulement of repayment of the balance debt to lenders
     over 9 years with a moratorium of 2 years;

   * reduction in interest rates; and

   * sanction of additional fund and non-fund based facilities
     by the lenders.

"While Board sanction has been received from several lenders, the
same is shortly expected from the others.  The DRP is subject to
execution of necessary documentation," the carrier said.

In order to give effect to the DRP, the Board of Directors at its
meeting held on November 25, 2010, has resolved to issue and allot
shares to lenders, UB Breweries (Holdings) Ltd, Kingfisher Finvest
India Ltd., Star Investment Ltd., Margosa Consultancy Pvt. Ltd.,
and Redect Consultancy Pvt. Ltd.

                     About Kingfisher Airlines

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops.  It maintains bases in major cities such as Delhi and
Mumbai.  Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer.  UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.

                           *     *     *

Kingfisher Airlines has lost money six years in a row,
accumulating net debt of INR77.2 billion (US$1.74 billion) as of
March 2010, according to data compiled by Bloomberg.


MAHEE ENGINEERING: CRISIL Assigns 'BB' Rating to INR20.3MM LT Loan
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to Mahee
Engineering Pvt Ltd's bank facilities.

   Facilities                         Ratings
   ----------                         -------
   INR20.30 Million Long-Term Loan    BB/Stable (Assigned)

   INR50.00 Million Cash Credit       BB/Stable (Assigned)

   INR2.50 Million Long-Term Bank     BB/Stable (Assigned)
                         Facility

   INR5.00 Million Purchase Bill      P4+ (Assigned)
                     Discounting

   INR4.00 Million Letter of Credit   P4+ (Assigned)

   INR1.00 Million Bank Guarantee     P4+ (Assigned)

The ratings reflect Mahee's small scale of operations and
susceptibility to intense competition in the pumps industry and to
the underlying volatility in raw material prices.  These rating
weaknesses are partially offset by Mahee's above-average financial
risk profile, marked by healthy gearing and robust debt protection
metrics; the ratings also reflect the company's established market
position and brand name in the pumps segment, healthy
relationships with its customers, and its promoters' extensive
industry experience.

Outlook: Stable

CRISIL believes that Mahee will continue to benefit from its
promoters' experience in the pumps segment and its long standing
relationships with its customers, over the medium term.  The
outlook may be revised to 'Positive' if the company enhances its
scale of operations and net worth, while sustaining its
profitability. Conversely, the outlook may be revised to
'Negative' if Mahee's profitability declines steeply, or if the
company undertakes a large, debt-funded capital expenditure
programme, leading to deterioration in its financial risk profile.

                      About Mahee Engineering

Mahee was set up as a partnership firm in 1971 by Mr. Vidhyasagar
Ramdass and was reconstituted as private limited company in 2005.
The promoters have an extensive experience of around three decades
in the pumps industry. Mahee has around 800 models of pumps
ranging from 0.5 horsepower (HP) to 2 HP.  The company derives
40per cent of its revenues from sales to original equipment
manufacturers and around 60 per cent of revenues from sales to
domestic and agriculture segment.

Mahee reported a profit after tax (PAT) of INR6 million on net
sales of INR347 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR4 million on net sales
of INR223 million for 2008-09.


PALIWAL INFRASTRUCTURE: CRISIL Lifts Rating on Term Loan to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on Paliwal Infrastructure Pvt Ltd
bank facilities to 'B+/Stable' from 'D'.

   Facilities                      Ratings
   ----------                      -------
   INR1070.0 Million Term Loan     B+/Stable (Upgraded from 'D')

The upgrade reflects timely servicing of debt by PIPL since
October 2009. CRISIL believes that Abhitex will generate
sufficient cash accruals to service its term debt obligations over
the medium term.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of PIPL, Paliwal Overseas Pvt Ltd and
Abhitex International, together referred to as the Paliwal group.
This is because the entities have a common promoter, and derive
considerable financial synergies from each other.  PIPL shares 12
per cent of Abhitex's profits and POPL owns 20 per cent of PIPL's
equity shares. The promoter has expressed intent to consolidate
the group structure over the medium term.

For the earlier rating, CRISIL had only combined the financial and
business risk profiles of Abhitex and POPL. The change in the
analytical approach follows increased financial linkages of these
two entities with PIPL.

The ratings reflect the Paliwal group's exposure to risks
associated with intense competition in home furnishing segment
along with high geographic and customer concentration in revenue
profile, and constrained financial flexibility.  These rating
weaknesses are partially offset by the group's established market
position in the manufacturing home furnishings, high occupancy
rate at its commercial property, and its moderate financial risk
profile marked by moderate gearing and debt protection metrics.

Outlook: Stable

CRISIL believes that the Paliwal group will continue to benefit
from its long-standing presence in the home furnishings market and
high occupancy rate at its commercial properties in Bangalore and
Hyderabad.  The group's financial risk profile is expected to
remain moderate marked by moderate gearing and debt protection
metrics. The outlook may be revised to 'Positive' if the group's
debt protection metrics improve beyond expectation, driven by
increase in cash accruals because of more-than-expected
improvement in operating profitability. Conversely, the outlook
may be revised to 'Negative' if the group's debt protection
metrics deteriorate significantly because of decline in
profitability or larger-than-expected debt-funded capital
expenditure.

                          About the Group

PIPL was established in 2000 by Mr. Avinash Paliwal.  The company
bought a commercial property, RMZ Futura, in Hyderabad, from RMZ
Corp in 2005, and has leased out the property to several tenants,
including entities in the Deloitte group.  PIPL acquired the
property for INR2.15 billion, funded through bank debt of
INR1.45 billion, lease deposits of INR250 million, and promoters'
funds. RMZ Futura, an approved software technology park, has over
0.38 million square feet of leaseable area, generating rental
income of about INR340 million per annum.

Established by Mr. Avinash Paliwal in 1985, POPL manufactures and
exports handloom products, including rugs, bath sheets, and bath
mats. In 2004, the company purchased a commercial building, RMZ
Titanium, in Bengaluru, and receives rentals of around INR120
million every year from this property.  In 2008-09, POPL purchased
a commercial property in Shalimar Bagh (Delhi) which is currently
vacant. For POPL, its management intends to close the textile
division and focus on leasing properties over the medium term.

Abhitex is a partnership firm set up by Mr. Avinash Paliwal and
family in 1993. The firm manufactures handloom products in the
home textiles segment. Its units are located in Panipat (Haryana).
Abhitex's products include tufted products, bath mats, rugs,
organic towels, beach towels, and terry towels. In 2009-10 (refers
to financial year, April 1 to March 31), it added cotton blankets
and terry towels to its product portfolio. More than 80 per cent
of Abhitex's revenues come from exports.

PIPL reported a profit after tax (PAT) of INR86.9 million on
operating income of INR327.7million for 2009-10 (refers to
financial year, April 1 to March 31), against loss of INR118.2
million on operating income of INR313.7 million for 2008-09.


PALIWAL OVERSEAS: CRISIL Raises Rating on INR424.7MM Loan to 'B+'
-----------------------------------------------------------------
CRISIL has upgraded its ratings on Paliwal Overseas Pvt Ltd bank
facilities to 'B+/Stable/P4' from 'D/P5'.

   Facilities                        Ratings
   ----------                        -------
   INR424.7 Million Term Loan        B+/Stable (Upgraded from 'D')

   INR30.0 Million Proposed LT       B+/Stable (Upgraded from 'D')
            Bank Loan Facility

   INR10.0 Million Export Packing    P4 (Upgraded from 'P5')
   Credit/Foreign Bills Purchase

   INR50.0 Million Bank Guarantee    P4 (Upgraded from 'P5')

The upgrade reflects timely servicing of debt by POPL since
October 2009. CRISIL believes that Abhitex will generate
sufficient cash accruals to service its term debt obligations over
the medium term.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Paliwal Overseas Pvt Ltd, Abhitex
International and Paliwal Infrastructure Pvt Ltd, together
referred to as the Paliwal group.  This is because the entities
have a common promoter, and derive considerable financial
synergies from each other.  PIPL shares 12 per cent of Abhitex's
profits and POPL owns 20 per cent of PIPL's equity shares. The
promoter has expressed intent to consolidate the group structure
over the medium term.

For the earlier rating, CRISIL had only combined the financial and
business risk profiles of Abhitex and POPL.  The change in the
analytical approach follows increased financial linkages of these
two entities with PIPL.

The ratings reflect the Paliwal group's exposure to risks
associated with intense competition in home furnishing segment
along with high geographic and customer concentration in revenue
profile, and constrained financial flexibility. These rating
weaknesses are partially offset by the group's established market
position in the manufacturing home furnishings, high occupancy
rate at its commercial property, and its moderate financial risk
profile marked by moderate gearing and debt protection metrics.

Outlook: Stable

CRISIL believes that the Paliwal group will continue to benefit
from its long-standing presence in the home furnishings market and
high occupancy rate at its commercial properties in Bangalore and
Hyderabad. The group's financial risk profile is expected to
remain moderate marked by moderate gearing and debt protection
metrics. The outlook may be revised to 'Positive' if the group's
debt protection metrics improve beyond expectation, driven by
increase in cash accruals because of more-than-expected
improvement in operating profitability.  Conversely, the outlook
may be revised to 'Negative' if the group's debt protection
metrics deteriorate significantly because of decline in
profitability or larger-than-expected debt-funded capital
expenditure.

                          About the Group

Established by Mr. Avinash Paliwal in 1985, POPL manufactures and
exports handloom products, including rugs, bath sheets, and bath
mats. In 2004, the company purchased a commercial building, RMZ
Titanium, in Bengaluru, and receives rentals of around INR120
million every year from this property. In 2008-09, POPL purchased
a commercial property in Shalimar Bagh (Delhi) which is currently
vacant. For POPL, its management intends to close the textile
division and focus on leasing properties over the medium term.

Abhitex is a partnership firm set up by Mr. Avinash Paliwal and
family in 1993.  The firm manufactures handloom products in the
home textiles segment.  Its units are located in Panipat
(Haryana). Abhitex's products include tufted products, bath mats,
rugs, organic towels, beach towels, and terry towels.  In 2009-10
(refers to financial year, April 1 to March 31), it added cotton
blankets and terry towels to its product portfolio. More than 80
per cent of Abhitex's revenues come from exports.

PIPL was established in 2000 by Mr. Avinash Paliwal.  The company
bought a commercial property, RMZ Futura, in Hyderabad, from RMZ
Corp in 2005, and has leased out the property to several tenants,
including entities in the Deloitte group.  PIPL acquired the
property for INR2.15 billion, funded through bank debt of
INR1.45 billion, lease deposits of INR250 million, and promoters'
funds. RMZ Futura, an approved software technology park, has over
0.38 million square feet of leaseable area, generating rental
income of about INR340 million per annum.

POPL reported a profit after tax (PAT) of INR3.5 million on
operating income of INR185.1 million for 2009-10 (refers to
financial year, April 1 to March 31), against PAT of INR1.8
million on operating income of INR169.4 million for 2008-09.


PATWARI STEELS: CRISIL Assigns 'BB' Rating to INR77.5M Cash Credit
------------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of Patwari Steels Pvt Ltd.

   Facilities                      Ratings
   ----------                      -------
   INR77.50 Million Cash Credit    BB/Stable (Assigned)
   INR2.50 Million SME Credit      BB/Stable (Assigned)
   INR20 Million Bank Guarantee    P4+ (Assigned)

The ratings reflect PSPL's working-capital-intensive operations,
marginal market share, and vulnerability to downturns in the steel
industry. The impact of these weaknesses is mitigated by the
benefits that PSPL derives from its promoter's extensive industry
experience.

Outlook: Stable

CRISIL believes that PSPL will maintain its promoter's extensive
experience in the steel industry.  The outlook may be revised to
'Positive' if PSPL's financial risk profile improves, supported by
improvement in the company's working capital management or net
worth. Conversely, the outlook may be revised to 'Negative' in
case of lower-than-expected capacity utilization, which may
deteriorate the operating margin of the company, or large debt-
funded capital expenditure.

                       About Patwari Steels

Set up in 1983 by Mr. Subhash Patwari, PSPL commenced commercial
operations in 1993.  It manufactures mild steel ingots and thermo
mechanically treated (TMT) bars.  The company has capacity of
33,000 tonnes per annum (tpa) for ingots and 16,000 tpa for TMT
bars at its manufacturing facility in Patna.  PSPL initially
manufactured cold twisted bars, with capacity of 10,000 tpa.

PSPL reported a profit after tax (PAT) of INR4.9 million on net
sales of INR635.16 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2.2 million on net sales
of INR631.94 million for 2008-09.


RAJPUTANA STAINLESS: CRISIL Assigns 'BB+' Rating to INR65MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Rajputana
Stainless Ltd's bank facilities.

   Facilities                              Ratings
   ----------                              -------
   INR600.0 Million Cash Credit Facility   BB+/Stable (Assigned)
   INR65.0 Million Rupee Term Loan         BB+/Stable (Assigned)
   INR85.0 Million Letter of Credit and    P4+ (Assigned)
                         Bank Guarantee

The ratings reflect RSL's exposure to risks related to large
working capital requirements, and the absence of integration in
its operations, leading to low margins.  These rating weaknesses
are partially offset by RSL's strong track record in stainless
steel structural segment.

Outlook: Stable

CRISIL expects RSL's credit risk profile to remain stable, backed
by improvement in turnover and capacity utilisation. RSL plans to
implement several capital expenditure (capex) programmes over the
medium term.  The outlook may be revised to 'Positive' if RSL
funds these capex programmes through equity infusion, leading to
improvement in its capital structure and financial risk profile.
Conversely, the outlook may be revised to 'Negative' if the
company contracts large debt to fund its expansion plans, leading
to deterioration in its financial risk profile.

                      About Rajputana Stainless

RSL (formerly, Rajputana Castings Pvt Ltd) was set up in 1991 by
Mr. Om Prakash Agarwal (majority owner) and Mr. Babu Lal Deep
Chand Mehta. RSL initially traded in steel products. However, it
began manufacturing steel billets in 1993, with an initial
capacity of 2500 tonnes per annum.  In 1999, the company was
acquired by Mr. Shankar Lal Deep Chand Mehta (Mr. Babu Lal Deep
Chand Mehta's brother).  It was renamed as RSL in 2006.

RSL reported a profit after tax (PAT) of INR67.5 million on net
sales of INR2.4 billion for 2008-09 (refers to financial year,
April 1 to March 31) against a PAT of INR13.7 million on net sales
of INR960 million for 2007-08.


SARVOTTAM VEGETABLE: CRISIL Places 'BB-' Rating on INR2.1MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable' rating to Sarvottam Vegetable
Oil Refinery Pvt Ltd's bank facilities.

   Facilities                            Ratings
   ----------                            -------
   INR80.0 Million Cash Credit Limit     BB-/Stable (Assigned)
   INR2.1 Million Term Loan              BB-/Stable (Assigned)

The rating reflects SVORPL's weak financial risk profile, marked
by high gearing, small net worth, and weak debt protection
metrics, and susceptibility to adverse changes in regulatory
policies.  These rating weaknesses are partially offset by
SVORPL's promoters' industry experience and efficient risk-
mitigation strategies.

Outlook: Stable

CRISIL believes that SVORPL will continue to benefit from its
efficient risk-mitigation strategies and its promoters'
experience, over the medium term.  The outlook may be revised to
'Positive' if SVORPL's financial risk profile improves due to
improvement in its net worth base, caused either due to fresh
capital infusion or better than expected internal accruals.
Conversely, the outlook may be revised to 'Negative' in case of
any significant debt-funded capital expansion, deteriorating
SVORPL's already weak capital structure, or any downward pressure
on its profitability.

                     About Sarvottam Vegetable

SVORPL was started operations in 2000 in Indore (Madhya Pradesh)
with a capacity of 50 tonnes per day (TPD).  The company refines
crude soya oil and currently has a refining capacity of 200 TPD.

Before setting up SVORPL, its promoters were into film
distribution and were running a film theatre. The family has been
into vegetable oil trading since 1993. As on date, the family has
discontinued with all other businesses, and is only into soya oil
refining.

SVORPL reported a profit after tax (PAT) of INR4.5 Million on net
sales of INR 2.12 billion for 2009-10(refers to financial year,
April 1 to March 31), against a PAT INR4.0 million on net sales of
INR1.95 billion for 2008-09.


SHIV SHAKTI: CRISIL Assigns 'D' Rating to INR10 Million Term Loan
-----------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to Shiv Shakti
International's bank facilities.  The ratings reflect delay by SSI
in servicing its term loan; the delay has been caused by SSI's
weak liquidity.

   Facilities                              Ratings
   ----------                              -------
   INR140.0 Million Cash Credit Limit      D (Assigned)
   INR10.0 Million Term Loan               D (Assigned)
   INR5.0 Million Standby Line of Credit   P5 (Assigned)
   INR20.0 Million Export Packing Credit   P5 (Assigned)


SSI's weak financial risk profile is marked by large working
capital requirements; the firm also has small scale of operations
in a fragmented industry and is susceptible to adverse regulatory
changes, erratic rainfall, and volatility in raw material prices.
SSI, however, benefits from its promoter's extensive experience in
the rice business.

                         About Shiv Shakti

SSI was set up by Mr. Tarsem Chand and his sister Mrs. Anju Bala
in 1995. Prior to this, the promoters were operating another firm,
Shiv Shakti Rice and General Mill, which was subsequently
dissolved, and its operations transferred to SSI.

SSI is in the business of processing a variety of basmati rice:
Pusa 1121 along with other non-basmati rice varieties - Sharbati
and Sugandha.  The firm's plant is in Mithhapur (Ambala, Haryana),
with an installed milling capacity of 5 tonnes per hour (tph) and
sorting capacity of 2.5 tph. Currently, in addition to the
promoters, the operations are managed by Mr. Tarsem Chand's sons -
Mr. Loveskeks Mohan and Mr. Manmohan Chand, and Mrs. Anju Bala's
son, Mr. Ankur Garg.

SSI reported a profit after tax (PAT) of INR0.28 million on net
sales of INR265.00 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.37 million on net
sales of INR352.00 million for 2008-09.


SOUTHERN COOLING: CRISIL Assigns 'BB+' Rating to INR13.4MM Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to Southern
Cooling Towers Pvt Ltd's bank facilities.

   Facilities                       Ratings
   ----------                       -------
   INR60 Million Cash Credit        BB+/Stable (Assigned)
   INR13.4 Million Term Loan        BB+/Stable (Assigned)
   INR100 Million Bank Guarantee    P4+ (Assigned)

The ratings reflect SCTPL's large working capital requirements and
susceptibility to intense competition in the cooling towers
industry.  These rating weaknesses are partially offset by SCTPL's
established market position and promoter's experience in cooling
tower industry, and moderate financial risk profile, marked by
moderate debt protection metrics, and healthy return on capital
employed ratio.

Outlook: Stable

CRISIL believes that SCTPL will maintain its credit risk profile,
backed by its established market position in the cooling tower
industry.  However, the rating will remain constrained due to
SCTPL's large working capital requirements. The outlook may be
revised to 'Positive' in case of more-than-expected increase in
revenues, or better working capital management leading to improved
liquidity.  Conversely, the outlook may be revised to 'Negative'
in case of less-than-expected revenues and profitability, or any
significant debt-funded capital expenditure, leading to
deterioration in financial risk profile.

                      About Southern Cooling

Incorporated in 1982, SCTPL manufactures wet industrial cooling
towers and related spare parts.  The company manufactures wooden,
reinforced cement concrete (RCC) and fibreglass reinforced plastic
(FRP) cooling towers.  SCTPL has three manufacturing facilities:
one each at Kolkata, Howrah (West Bengal), and Baroda (Gujarat).

SCTPL reported a profit after tax (PAT) of INR11.6 million on net
sales of INR308.6 million for 2008-09 (refers to financial year,
April 1 to March 31), against a PAT of INR7.2 million on net sales
of INR247.4 million for 2008-09.


SRI SAI RAJA: CRISIL Rates INR304.5 Million Long-Term Loan at 'D'
-----------------------------------------------------------------
CRISIL has assigned its 'D' rating to Sri Sai Raja Rajeswari
Spinning Mills Pvt Ltd's long-term loan facility.  The rating
reflects delay by RSMPL in servicing its term loan; the delay has
been caused by RSMPL's weak liquidity.

   Facilities                            Ratings
   ----------                            -------
   INR304.50 Million Long-Term Loan      D (Assigned)

RSMPL's below-average financial risk profile is marked by weak
debt protection measures, average net worth, and high gearing;
also, the company's operations are small, but working capital
intensive.  RSMPL, however, benefits from its promoter's
experience in the spinning industry.

Sri Rajarajeshwari Co-operative Spinning Mills, a sick cooperative
unit of the Government of Andhra Pradesh was acquired by Mr. Ranga
Ashok (promoter) in a public auction in 2005.  Subsequently, the
name was changed to RSMPL. It has capacity of around 23,184
spindles.  The company manufactures carded and combed cotton yarn
of counts 28's and 60's. The unit is located in the Karimnagar
district of Andhra Pradesh.

RSMPL reported a profit after tax (PAT) of INR 0.79 million on net
sales of INR241.0 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.34 million on net
sales of INR135.8 million for 2008-09.


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


JAPAN AIRLINES: Sells All Stake in TFK Corporation to SATS
----------------------------------------------------------
The JAL Group disclosed Monday that Japan Airlines International
Co., Ltd., a subsidiary of Japan Airlines Corporation, sold all
50.7% of its stake in TFK Corporation to SATS Investments Pte Ltd.
-- a 100%-owned subsidiary of SATS Ltd., in a stock transfer
agreement concluded on November 29, 2010.

                              Background

The transfer of stakes in TFK was considered alongside various
measures taken as the JAL Group perseveres in revitalizing the
business under the Corporate Reorganization Proceedings.  With the
support of the Enterprise Turnaround Initiative Corporation of
Japan, JAL is aiming to make swift, fundamental reforms while
preserving its business value to a maximum.

During this time, the corporate value of TFK and its potentiality
for future growth have been recognized strongly by SATS - an
established provider of airport and airline services with a wealth
of experience in the field.  TFK is highly commended as an airline
catering subsidiary for its quality in-flight meal service to JAL
Group customers and other airlines.  From hence forth, TFK will
seek to improve its operational efficiency by learning from and
adopting the highly-effective management practices of the SATS
group cultivated from years of exposure in the global market, and
capitalize on its own forte in the area of airline food to expand
its business further in the future and provide customers with
improved cabin meals and services.

                           Stock transfer

Japan Airlines International and SATS on Monday signed a stock
transfer agreement.  All of the 504,195 stocks (voting right ratio
53.8%) owned by Japan Airlines International in TFK Corporation
are scheduled to be completely transferred to SATS Investment Pte
Ltd, with the receipt of payment, by the end of December 2010.

                        About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a
Japan-based company mainly engaged in the provision of air
transport services.  The Company is active in five business
segments through its 203 subsidiaries and 83 associated companies.
JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

Japan Airlines Corporation, Japan Airlines International Co.,
Ltd., and JAL Capital Co., Ltd., on January 19, 2010, filed the
petitions to commenced corporate reorganization proceedings with
the Tokyo District Court.  The Court appointed the Enterprise
Turnaround Initiative Corporation of Japan and Eiji Katayama,
Esq., as reorganization trustees.

Japan Airlines Corp. filed for reorganization January 19, 2010, in
the Tokyo District Court and filed a Chapter 15 petition in New
York (Bankr. S.D.N.Y. Case No. 10-10198).  The Company estimated
debts at $28 billion.


===============
M A L A Y S I A
===============


EON BANK: Fitch Maintains Individual Rating at 'C/D'
----------------------------------------------------
Fitch Ratings has maintained the Rating Watch Positive on all of
EON Bank's ratings, including its 'BBB-' Long-term foreign
currency Issuer Default Rating and its 'C/D' Individual Rating.  A
full list of the rating actions is included at the end of this
release.

The maintenance of Rating Watch Positive on EON Bank's ratings is
premised on the fact that Hong Leong's proposed takeover offer for
all the assets and liabilities of EON Capital (the investment
holding company of EON Bank) is still pending completion.  The
takeover has yet to be completed because of the ongoing
arbitration over the disputes between Primus Pacific (a private
equity fund and EON Capital's largest shareholder) and certain
other shareholders and directors of EON Capital.  The agency
expects to resolve the Rating Watch Positive on the bank's ratings
once there is greater clarity on the outcome of the proposed deal.

In July 2010, Fitch placed EON Bank's Individual Rating and IDR on
Rating Watch Positive to reflect the positive impact on the bank's
risk profile from the proposed takeover by Hong Leong, which is
assessed to have a comparatively better credit standing than EON
Bank's.  EON Bank's Support Rating and Support Rating Floor are
also on Rating Watch Positive due to the expected increase in its
systemic importance from the proposed deal, as the merged entity
is likely to emerge as the fourth-largest local bank, with a 9%
share in banking system assets.

Should the proposed deal fail, however, the agency believes that
the Outlook on EON Bank's ratings is likely to revert to Stable
given its satisfactory capital position, which helps to mitigate
its moderate earnings and less diversified business profile amid
the still uncertain global economic environment.  For more details
on EON Bank's credit profile, please refer to EON Bank's credit
update dated 29 September 2010.

These ratings of EON Bank have been maintained on Rating Watch
Positive:

  -- Long-term foreign currency IDR of 'BBB-';
  -- Short-term foreign currency IDR of 'F3';
  -- Individual rating of 'C/D';
  -- Support rating of '3';
  -- Support Rating Floor of 'BB'; and
  -- Long-term deposit rating of 'BBB'.


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


E-GAS LTD: Nova Energy Buys E-Gas Customer Base
-----------------------------------------------
The National Business Review reports that Nova Energy has won the
tender process for E-Gas Limited.

Nova, part of the Todd Energy group, said Friday it had purchased
E-Gas's customer database, which comprises approximately 5,500
commercial customers and 1,200 residential customers, based around
the North Island, according to the National Business Review.

The National Business Review relates Nova spokeswoman Cressida
Gates reassured customers that they would find it "business as
usual".

"Nova Energy welcomes all former E-Gas customers and it is our
priority to make sure the switch to us will be seamless and create
no disruption to their gas supply," Ms. Gates said in a release,
the National Business Review says.

According to the National Business Review, Ian Wilson, acting
chief executive of industry co-regulatory body Gas Industry
Company (GIC), said that the sale would bring continuity of supply
to E-Gas customers and certainty to the gas industry.

The National Business Review notes that the GIC understands that
the sale will assign the contracts of E-Gas customers to Nova, and
that Nova may choose to move customers to its own contractual
terms and conditions, subject to the notification process in the
transferred contracts.

E-Gas Ltd, E-Gas Services Ltd and E-Gas 2000 Ltd went into
voluntary liquidation on October 18, 2010, and the joint
liquidators are Stephen Tubbs, Brian Mayo Smith and Jeff Hart of
BDO Chartered Accountants.  The company owed NZ$3.45 million to
secure creditor Multi Gas (NZ) Ltd and about NZ$6.9 million to
unsecured creditors.

E-Gas -- http://www.e-gas.co.nz/-- is a private and independent
gas retailer in New Zealand.  The company retails natural gas to
more than 7,000 gas consumers in the North Island.


EQUITABLE MORTGAGES: Receivership Won't Impact Government Books
---------------------------------------------------------------
The New Zealand government said it does not expect the
receivership Equitable Group to have a significant impact on its
books, Radio New Zealand reports.

As reported in the Troubled Company Reporter-Asia Pacific on
November 30, 2010, Equitable Mortgages called in receivers on
November 26, 2010.  According to The New Zealand Herald,
Treasury's deputy secretary of financial operations Phil Combes
said eligible depositors with Equitable Mortgages can claim
repayment from the Crown, the report related.  The New Zealand
Herald said that Equitable Mortgages asked its trustee to appoint
receivers to the company, which is a default triggering the
Crown's guarantee under the terms of the Extended Retail Deposit
Guarantee Scheme.

However, Radio New Zealand notes that a spokesperson for Finance
Minister Bill English said that provisions have already been made
for failures, with about NZ$850 million set aside in Crown
accounts.  The spokesperson, the report notes, said that the
Crown's net costs, as a result of the receiverships, are not
expected to rise above this amount.  However, Labour said this
provision is not sufficient to cover recent company failures, the
report relates.

Radio New Zealand discloses that finance spokesperson David
Cunliffe said that the Government's calculations were wrong and
the Budget will be more than used up by South Canterbury Finance
and Equitable Group.  This is yet more bad news for New Zealand,
he added.

Headquartered in Auckland, Equitable Mortgages is a financial
institution that has around 6000 depositors and approximately
NZ$178 million in Crown-guaranteed deposits.  It is a government
guaranteed firm.


EQUITABLE MORTGAGES: S&P Downgrades Issuer Credit Ratings to 'C/C'
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
issuer credit ratings on Equitable Mortgages Ltd. and Equitable
Life Insurance Co Ltd. to 'C/C' from BB-/Negative/B.  The ratings
have also been placed on CreditWatch with negative implications.
EML and ELIC are the key issuers and considered core subsidiaries
of the New Zealand Equitable group, which is wholly owned by the
Spencer family (not rated).

"The lowered ratings and the CreditWatch action come after EML's
announcement that it has decided to appoint a receiver," Standard
& Poor's credit analyst Mark Legge said.  "This decision stems
from the view of Equitable's board that EML is no longer a viable
business.  Although EML has indicated its preference to execute an
orderly wind down of the group's activities without the
appointment of a receiver, such an appointment could not be
avoided due to requirements under the extended Crown Guarantee
Scheme, to which EML is a party.  S&P's rating action on ELIC
reflects its core status as a member of the Equitable group."

The appointment of a receiver will trigger a default under EML's
debenture trust deed.  The decision to place the ratings on
CreditWatch with negative implications reflects S&P's view that
EML could fail to meet its obligations if all debenture investors
needed to be repaid quickly as a result of the default.  EML has
confirmed that it has sufficient cash to meet scheduled liability
obligations until about May 2011, without accounting for any funds
that may be generated from any repayments on outstanding mortgages
within its loan portfolio.  That said, a heavy discount on its
mortgage portfolio due to a deterioration in the portfolio or
stemming from any efforts to exit these exposures quickly, could
result in a shortfall in funds needed to full satisfy all future
obligations.

EML has confirmed that it currently has about NZ$32 million in
cash, a net carrying value of NZ$188 million of mortgage property
loans, debenture liabilities of NZ$191 million and book equity of
NZ$31 million.

The CreditWatch will be reviewed over the next three months after
some additional clarity is gained around the receivership action.
The ratings will be lowered to 'D' if EML fails to meet any of its
obligations in a full and timely manner or if S&P believes that
EML will not be able to generate sufficient funds to meet
obligations in full and in a timely manner in the future, stemming
from S&P's view that it will not be able to realize sufficient
value from its mortgage loan portfolio.


FORGE MEDIA: Defaults on Loan Covenant With Major Financier
-----------------------------------------------------------
The National Business Review reports that Forge Media Group has
received a notice of default of a loan agreement covenant with its
primary financier, Lock Finance.

According to the National Business Review, Chairman Chris Due said
the company's loan facility terms with Lock Finance contained a
covenant that "management accounts are to be within 10 percent of
the budget".  There were no other covenants, the National Business
Review notes.

The National Business Review says Lock Finance had issued a notice
of default related to management accounts for October, when sales
were 11.6% lower than budget although net profit for that month
was 3% above budget.

The National Business Review relates Mr. Due said it is probable
Forge would be in default of its revenue and profit covenant to
Lock Finance in November based on latest forecasts.

Lock Finance had advised it was considering its position following
the event of default, the National Business Review adds.

The National Business Review reports that Forge on Monday posted
revenue of NZ$2.7 million for the six months to September, down 1%
from a year before.  Operating loss after tax was NZ$351,000,
compared to a loss of NZ$238,000 a year earlier.

                          About Forge Media

Based in Auckland, New Zealand, Forge Media Group (NZE:FMG) --
http://www.forge.co.nz/about-- engages in graphic design,
marketing planning and promotion, website development, digital and
offset print, and CD, DVD and USB replication.


HANOVER FINANCE: SFO Summons 30 Staff on Fraud Probe
----------------------------------------------------
BusinessDay.co.nz reports that 30 people associated with Hanover
Finance Ltd have been ordered to front up for Serious Fraud Office
interviews and to hand over documents as the office investigates
suspected fraud.

According BusinessDay.co.nz, the SFO will not say who is on its
list or whether it includes Hanover founders Eric Watson and Mark
Hotchin.

BusinessDay.co.nz relates SFO chief executive Adam Feeley said the
SFO had ordered 30 people to submit to interviews and hand over
documents.

"We will be having discussions with people who I think will not be
surprised to have us come knocking on their door -- and we'll be
looking for some pretty credible explanations about some
transactions which on the face of it need a lot of explaining,"
BusinessDay.co.nz quoted Mr. Feeley as saying.

BusinessDay.co.nz says the SFO is probing the payment of dividends
and other transactions just before the company entered a
moratorium -- a freeze of investors' money -- and debt
restructuring involving transfer of assets to Allied Farmers.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 19, 2009, Hanover Finance confirmed that Allied Farmers had
forwarded a proposal to acquire the finance assets of Hanover
Finance Limited and United Finance Limited.  Chairman David Henry
said the Allied Farmers' proposal would exchange investors Hanover
Finance's secured deposits and subordinated notes, United
Finance's secured deposits, and Hanover Capital bonds for listed
shares in Allied Farmers issued at market value.

Hanover Finance said in November 2009 that it is no longer likely
to fully repay investors under a debt restructuring plan due to a
deterioration in the commercial property development market.
Hanover directors estimated the return to secured depositors is
likely to be about 70 cents in the dollar for Hanover Finance
investors while investors in subsidiary United Finance can expect
estimated returns of around 90c, according to the New Zealand
Herald.

In December 2009, Hanover investors voted in favor of the Allied
Farmers proposal.

                 About Hanover Finance Limited

Hanover Finance Limited -- http://www.hanover.co.nz/-- is
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007.  The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.


===============
X X X X X X X X
===============


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Dec. 9-11, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Winter Leadership Conference
       Camelback Inn, a JW Marriott Resort & Spa,
       Scottsdale, Ariz.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

January 26-28, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Distressed Investing Conference
       Aria Las Vegas
          Contact: http://www.turnaround.org/

Jan. 27-28, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Rocky Mountain Bankruptcy Conference
       Westin Tabor Center, Denver, Colo.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 3-5, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Caribbean Insolvency Symposium
       Westin Casuarina Resort & Spa, Grand Cayman Island
          Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 24-25, 2011
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    Valcon
       Four Seasons Las Vegas, Las Vegas, Nev.
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Mar. 4, 2011
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    Bankruptcy Battleground West
       Hyatt Regency Century Plaza, Los Angeles, Calif.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 7-9, 2011
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    Conrad Duberstein Moot Court Competition
       Duberstein U.S. Courthouse, New York, N.Y.
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Mar. 10, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Nuts and Bolts - Florida
       Tampa, Fla.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    SUCL/ Alexander L. Paskay Seminar on
    Bankruptcy Law and Practice
       Marriott Tampa Waterside, Tampa, Fla.
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Mar. 17-19, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Byrne Judicial Clerkship Institute
       Pepperdine University School of Law, Malibu, Calif.
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Mar. 31-Apr. 3, 2011
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    Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

April 27-29, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Spring Conference
       JW Marriott, Chicago, IL
          Contact: http://www.turnaround.org/

May 5, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Nuts and Bolts - New York City
       Association of the Bar of the City of New York,
       New York, N.Y.
          Contact: 1-703-739-0800; http://www.abiworld.org/

May 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
    New York City Bankruptcy Conference
       Hilton New York, New York, N.Y.
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 6, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Canadian-American Cross-Border Insolvency Symposium
       Fairmont Royal York, Toronto, Ont.
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Mich.
             Contact: http://www.abiworld.org/

July 21-24, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Hyatt Regency Newport, Newport, R.I.
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 27-30, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Workshop
       The Sanctuary at Kiawah Island, Kiawah Island, S.C.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 4-6, 2011
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hotel Hershey, Hershey, Pa.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Tampa Convention Center, Tampa, Fla.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
AMERICAN BANKRUPTCY INSTITUTE
    International Insolvency Symposium
       Dublin, Ireland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
TURNAROUND MANAGEMENT ASSOCIATION
    Hilton San Diego Bayfront, San Diego, CA
       Contact: http://www.turnaround.org/

Dec. 1-3, 2011
AMERICAN BANKRUPTCY INSTITUTE
    23rd Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, Calif.
          Contact: 1-703-739-0800; http://www.abiworld.org/

April 3-5, 2012
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Spring Conference
       Grand Hyatt Atlanta, Atlanta, Ga.
          Contact: http://www.turnaround.org/

Apr. 19-22, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center,
       National Harbor, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Workshop
       The Ritz-Carlton Amelia Island, Amelia Island, Fla.
          Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Md.
          Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Westin Copley Place, Boston, Mass.
          Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
AMERICAN BANKRUPTCY INSTITUTE
    Winter Leadership Conference
       JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
          Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Spring Conference
       JW Marriott Chicago, Chicago, Ill.
          Contact: http://www.turnaround.org/

October 3-5, 2013
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Wardman Park, Washington, D.C.
          Contact: http://www.turnaround.org/


                             *********

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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