TCRAP_Public/101223.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Thursday, December 23, 2010, Vol. 13, No. 253

                            Headlines



A U S T R A L I A

A2 CORP: Inks NZ$3.91-Mil. Capital Placement With Two Investors
CHALLENGE DAIRY COOP: 47 Farmers to Receive Money Owed
STORM FINANCIAL: ASIC Launches Legal Action Vs. 3 Australian Banks


H O N G  K O N G

ABERDEEN INT'L: Philip Brendan Gilligan Steps Down as Liquidator
BOOKMAKERS (HK): Commences Wind-Up Proceedings
CHAFEIST LIMITED: Commences Wind-Up Proceedings
CITY TELECOM: Fitch Upgrades Issuer Default Rating to 'BB'
CLAREN INTERNATIONAL: Commences Wind-Up Proceedings

FIBRES IMPORT: Commences Wind-Up Proceedings
GAINVIEW HOLDINGS: Commences Wind-Up Proceedings
HEDRAGON LIMITED: Commences Wind-Up Proceedings
HENTELL LIMITED: Cowley and Mitchell Appointed as Liquidator
MORGAN STANLEY: S&P Downgrades Ratings on 3 Note Classes to 'D'

NIHON MINI: Members' Final Meeting Set for January 19
REDHAWK ELECTRONICS: Lee Kwok On Alexander Appointed as Liquidator
TECHNO MOTORCYCLE: Members' Final General Meeting Set for Jan. 14
UCB PHARMA: Members' Final Meeting Set for January 18


I N D I A

AADI INDUSTRIES: CRISIL Downgrades Rating on INR40.5MM Loan to 'D'
ABS MERCANTILES: ICRA Upgrades Rating on INR14.5cr Bank Facilities
AMMARUN FOUNDRIES: CRISIL Reaffirms 'B' Rating on INR41.8MM Loan
ASSRM & CO: CRISIL Rates INR50.00 Million Cash Credit at 'BB'
DHAVAL AGRI: ICRA Assigns 'LBB+' Rating to INR1cr Term Loan

BELLISS INDIA: CRISIL Assigns 'B' Rating to INR25MM Cash Credit
DIAMONDSTAR: CRISIL Assigns 'P4' Ratings to Various Bank Debts
G. NAGESWARAN: CRISIL Assigns 'BB-' Rating to INR49MM Cash Credit
GUPTA DYEING: CRISIL Assigns 'B-' Rating to INR43MM Term Loan
JRD INDUSTRIES: CRISIL Assigns 'P4+' Rating to INR125 Million LOC

RAJ PACKAGING: CRISIL Assigns 'BB+' Rating to INR49 Million Loan
SHRADHA AGENCIES: CRISIL Upgrades Rating on INR150MM Loan to 'BB-'
STEEL EXCHANGE: ICRA Reaffirms Rating on INR87.02cr Loan to 'LBB+'
VIJETA PROJECTS: ICRA Assigns 'LBB+' Rating to INR37.5cr Bank Debt


K O R E A

KUMHO ASIANA: Creditors to Start Korea Express Sale Process


M A L A Y S I A

AXIS INC: Taps New Adviser for Proposed Restructuring Scheme
JPK HOLDINGS: Taps TA Securities as News Principal Adviser
KENMARK INDUSTRIAL: Liquidators File Wind Up Petition Against Unit
LCL CORP: Won't Appeal Delisting Notice
TRACOMA HOLDINGS: Appoints Mohamed Niza Abu Bakar as CEO


N E W  Z E A L A N D

LOMBARD FINANCE: Distributions on Hold Until IRD Claim is Resolved
SOUTH CANTERBURY: Owed NZ$103-MM by Southbury Corp, Receiver Says
SOUTHERN CROSS: S&P Affirms 'BB/B' Ratings with Stable Outlook
ST LAURENCE: Investors to Get First Repayment Next Month


                            - - - - -


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


A2 CORP: Inks NZ$3.91-Mil. Capital Placement With Two Investors
---------------------------------------------------------------
A2 Corporation Limited has entered into agreements with two
cornerstone shareholders, AMP Capital Investors (New Zealand)
Limited and Freedom Foods Group Limited (previously Freedom
Nutritional Products Limited), to raise NZ$3.914 million.  This
capital will be used to support the establishment of A2
Corporation's own milk processing facility in Australia.

AMP Capital Investors has agreed to provide NZ$3 million to A2
Corporation by subscribing for 30 million ordinary shares at
NZ$0.10 per share.

Freedom Foods Group has chosen to exercise its capital raising
right, allowing it to participate in the capital raising alongside
AMP Capital Investors on the same terms.  Under the capital
raising right, Freedom Foods Group will subscribe for enough
shares to maintain their current shareholding percentage, which is
approximately 9.14 million shares.

A2 Corporation is delighted with the support from these two
cornerstone shareholders.

                       About A2 Corporation

New Zealand-based A2 Corporation Ltd. (NZAX: ATM) --
http://www.a2corporation.com/-- is engaged in the sale and
production of beta-casein A2 milk products.  The company owns
and licenses intellectual property that enables the
identification of cattle for the production and subsequent
marketing of A2 Milk.  a2 milk is naturally produced to contain
maximum amounts of a milk protein variant that is associated by
a number of studies with potential benefits in some individuals.
A2 Corporation Ltd receives royalty income from sales of A2 Milk
products and testing for A2 cattle, and shares in the profits or
losses of associates and subsidiaries formed for those purposes.

                          *     *     *

A2 Corporation Ltd. incurred three consecutive net losses of
NZ$6.3 million, NZ$5.08 million and NZ$448,800 for the years ended
March 31, 2008, 2007, and 2006, respectively.  The Company
reported
an audited Group post-tax loss of NZ$2,193,973 for the 12 months
ended June 30, 2010.  This compared to a loss of NZ$3,528,057 for
the 15 months ended June 30, 2009.


CHALLENGE DAIRY COOP: 47 Farmers to Receive Money Owed
------------------------------------------------------
ABC News reports that 47 farmers caught up in the collapse of the
Challenge Dairy Co-operative will receive some of the money they
are owed before Christmas.

As reported in the Troubled Company Reporter-Asia Pacific on Dec.
7, 2010, Farm Weekly said that Challenge Dairy Co-operative has
been preparing to follow Challenge Australian Dairy (CAD) into
voluntary administration.  In a separate TCR-AP reports on Dec. 2,
2010, citing Margaret River Mail, the collapse of Challenge
Australian Dairy was made official when it announced it was going
into receivership.  Margaret River Mail related that third
generation dairy farmer Miles Mottershead is owed almost
AU$300,000 in milk supplied to Challenge and said it could be
anywhere between six months to years before the repayments came.

ABC News discloses that the Co-operative's chairman Imre
Menshelley said that the AU$1 million would be distributed this
week between the 47 farmers who supplied Challenge and more
payments are expected next year.

Challenge Dairy Co-operative is a totally Western Australian
farmer-owned entity and is situated at the historic Capel Dairy
site.  Dairy farmer members supply fresh milk, produced daily from
their own farms which are based in the beautiful south west of
Western Australia.  Joint venture partners Challenge Australia
Dairy manufactures the highest quality cheese, butter, cream and
dairy ingredients under the Capel brand for both the Australian
domestic market as well as expanding export markets.


STORM FINANCIAL: ASIC Launches Legal Action Vs. 3 Australian Banks
------------------------------------------------------------------
The Australian Securities and Investments Commission has launched
a legal action against three Australian banks involved in the
collapse of Storm Financial Ltd.

ASIC on Thursday confirmed it has lodged with relevant courts
legal proceedings that it announced on November 26, 2010.  These
proceedings arise out of its investigation into the collapse of
Storm Financial.

"Since announcing its decision to commence compensation
proceedings, ASIC has continued confidential commercial
discussions with some key parties, however, these have not
resulted in an acceptable commercial resolution on compensation,"
ASIC said in a statement.

ASIC Chairman Tony D'Aloisio said, "ASIC is bringing these actions
to seek compensation for investors who have suffered losses. ASIC
has maintained that a commercial resolution is the preferred
approach. Unfortunately discussions did not result in a
satisfactory outcome and it has been necessary for ASIC to bring
these proceedings."

The legal proceedings are:

   * compensation proceedings in the Federal Court of Australia
     in ASIC's name and on behalf of two former Storm investors
     against Bank of Queensland Limited, the owner and franchisee
     of the BoQ's North Ward branch (Senrac Pty Limited) and
     Macquarie Bank Limited (MBL) in relation to alleged breach
     of contract, contravention of the statutory prohibitions
     against unconscionable conduct and liability as linked credit
     providers of Storm under section 73 of the Trade Practices
     Act 1974; and

   * proceedings in the Federal Court of Australia against Storm,
     Commonwealth Bank of Australia, BoQ and MBL based on the
     operation by Storm of an alleged unregistered managed
     investment scheme in which the banks were involved.

In addition, as foreshadowed, ASIC has filed civil penalty
proceedings in the Federal Court of Australia against Emmanuel and
Julie Cassimatis as directors of Storm in relation to alleged
contraventions of section 180 (duties of directors) of the
Corporations Act.

ASIC's investigations into the collapse of Storm continue.

                        About Storm Financial

Storm Financial Limited -- http://www.stormfinancial.com.au/--
operates in the Australian wealth management industry.  The
company manages over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser.  The
funds are invested through different investment products and
structures, including superannuation, nonsuperannuation managed
funds and life insurance products.  Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2009, Storm Financial Ltd. appointed Worrells Solvency &
Forensic Accountants as voluntary administrators after the
Commonwealth Bank of Australia demanded debt repayment of around
AU$20 million.

Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no longer
absorb."

The TCR-AP reported on Jan. 22, 2009, that the CBA, Storm's
largest creditor, lodged a AU$27.09 million debt claim at a first
meeting of the company's creditors on Jan. 20, 2010.  The group's
remaining creditors are owed AU$51 million, plus a provision for
dividends of AU$10 million.

In March 2009, the Australian Securities and Investments
Commission won its bid to liquidate Storm Financial after the
Federal Court ruled that the Company be wound up.  Federal court
Justice John Logan appointed Ivor Worrell and Raj Khatri of
Worrells Solvency and Forensic Accountants as liquidators for the
Company.


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


ABERDEEN INT'L: Philip Brendan Gilligan Steps Down as Liquidator
----------------------------------------------------------------
Philip Brendan Gilligan stepped down as liquidator of Aberdeen
International Investment Management Limited on December 13, 2010.


BOOKMAKERS (HK): Commences Wind-Up Proceedings
----------------------------------------------
Members of Bookmakers (Hong Kong) Limited, on December 10, 2010,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Yeung Mui Kwan David
         14/F, San Toi Building
         137-139 Connaught Road
         Central, Hong Kong


CHAFEIST LIMITED: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Chafeist Limited, on December 10, 2010, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidators are:

         Andrew C. C. Ma
         Felix  K. L. Lee
         19th Floor, Seaview Commercial Building
         21-24 Connaught Road West
         Hong Kong


CITY TELECOM: Fitch Upgrades Issuer Default Rating to 'BB'
----------------------------------------------------------
Fitch Ratings has upgraded City Telecom's Long-term foreign
currency and local currency Issuer Default Rating to 'BB' from
'BB-'.  The Outlook is Stable.  Fitch also has affirmed the
company's foreign currency senior unsecured at 'BB', and
simultaneously withdrawn this rating following the full repayment
of its senior unsecured notes in 2010.

"The upgrades reflect the company's continued improvement in its
credit metrics, as well as its strong position as the second-
largest broadband service provider in Hong Kong.  Although an
increase in marketing expenses caused a slight decline in the
company's EBITDA margin to 29.9% during the fiscal year to end-
August 2010 from 32.0% a year earlier, City Telecom acquired a
record-high 135,000 subscriber net additions in FY10," says Alvin
Lim, Associate Director in Fitch's Asia Pacific Telecom Media and
Technology ratings team.  This increased its broadband market
share to 23% at FYE10, versus 15% at FYE08, thanks to its
effective pricing strategy and competitive Fibre-to-the Home
network quality.  In addition, backed by its strong cash
generation, the company has maintained a net cash position for two
consecutive fiscal years.

Notwithstanding the highly saturated Hong Kong telecom market,
Fitch believes that City Telecom has solid growth potential based
on its extensive FTTH network.  While the overall broadband
household penetration rate is high at 85%, there still is room for
further growth, in terms of consumers switching from copper to
FTTH, as the penetration rate of FTTH is still quite low at 35%,
and demand from subscribers for faster data transmission speed is
expected to constantly increase.

"City Telecom should be able to strengthen its market position by
absorbing subscribers migrating to its FTTH networks from slower
DSL-based network services.  This is well-illustrated by the fact
that the company was able to capture 93% of total net additions in
Hong Kong's broadband segment during FY10," said Mr. Lim.
Although the company witnessed a sharp decline in blended ARPU to
HKD135 in FY10 (FY09: HKD183) due to its aggressive pricing
strategy, Fitch forecasts a reversal to positive ARPU growth in
FY11.  This is as City Telecom ended its HKD99 per month broadband
promotion at end-August 2010, and is now focusing on selling a
"triple play" service of 100Mbps broadband, voice, and IP-TV for
HKD199 a month.  This demonstrates the company's strength as the
price-setter in the market, based on its network quality and even
as the industry's non-incumbent player.

Fitch also notes that there has been a material improvement in
City Telecom's credit metrics as it has been able to reduce its
adjusted gross debt level to HKD124.2m at FYE10 (FYE07: HKD953.8m)
thanks to its strong cash generating ability and management's
conservative financial policies.  In addition, the agency expects
the company's total capex level to gradually decrease from FY12 as
it is expected to complete its FTTH network coverage.  Although a
significant increase in dividends is suppressing potential Free
Cash Flow generation, Fitch expects City Telecom to maintain its
net cash position and be able to generate positive FCF from FY12
based on a lower capex commitment.

The Stable Outlook on City Telecom reflects Fitch's expectation
that the company will be able to sustain its improved business and
financial profile, and gain additional market share over the
medium-term, underpinned by its network technology leadership.

Fitch will consider a further positive rating action if the
company is able to increase its market share above 35% and
maintain its operating EBITDAR margin over 30%, with the absolute
amount of EBITDAR reaching over US$100m, as well as FFO adjusted
net leverage below 1.0x on a sustained basis.  A negative rating
action may be taken if there is a material deterioration in City
Telecom's competitiveness which results in a substantial loss in
its market share, coupled with erosion in profitability with its
operating EBITDAR margin falling below 25%, and FFO adjusted net
leverage rising above 1.5x on a sustained basis.


CLAREN INTERNATIONAL: Commences Wind-Up Proceedings
---------------------------------------------------
Members of Claren International Limited, on December 10, 2010,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

         Andrew C. C. Ma
         Felix  K. L. Lee
         19th Floor, Seaview Commerical Building
         21-24 Connaught Road West
         Hong Kong


FIBRES IMPORT: Commences Wind-Up Proceedings
--------------------------------------------
Members of Fibres Import and Export Company Limited, on December
10, 2010, passed a resolution to voluntarily wind up the company's
operations.

The company's liquidators are:

         Andrew C. C. Ma
         Felix  K. L. Lee
         19th Floor, Seaview Commerical Building
         21-24 Connaught Road West
         Hong Kong


GAINVIEW HOLDINGS: Commences Wind-Up Proceedings
------------------------------------------------
Members of Gainview Holdings Limited, on December 10, 2010, passed
a resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Mr. Leung Che Wing
         Unit B, 17/F
         Capital commercial Building
         446-448 Shanghai Street
         Mongkok, Kowloon
         Hong Kong


HEDRAGON LIMITED: Commences Wind-Up Proceedings
-----------------------------------------------
Members of Hedragon Limited, on December 9, 2010, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidators are:

         Ho Man Kit
         Kong Sau Wai
         Unit 511, 5th Floor
         Tower 1, Silvercord
         No. 30 Canton Road
         Tsimshatsui, Kowloon
         Hong Kong


HENTELL LIMITED: Cowley and Mitchell Appointed as Liquidator
------------------------------------------------------------
Patrick Cowley and Paul Edward Mitchell, on December 14, 2010,
were appointed as liquidators of Hentell Limited.

The liquidators may be reached at:

         Patrick Cowley
         Paul Edward Mitchell
         8th Floor, Prince's Building
         10 Chater Road
         Central, Hong Kong


MORGAN STANLEY: S&P Downgrades Ratings on 3 Note Classes to 'D'
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on three
classes of notes issued by Morgan Stanley Managed ACES SPC to 'D
(sf)' from 'CCC- (sf)'.

The downgrades follow a realized interest loss to the investor in
each of the series of notes on the most recent interest payment
date.  The portfolio in the transaction suffered several credit
events, which have resulted in an aggregate loss that exceeded the
available subordination and reduced the principal amount of the
notes.  Consequently, there was an interest payment shortfall on
the most recent interest payment date.

                         Rating Lowered

                 Morgan Stanley Managed ACES SPC

                                       Rating To   Rating From
                                       ---------   -----------
    Series 2006-12 Class IIA           D (sf)      CCC- (sf)
    Series 2006-12 Class IIIA          D (sf)      CCC- (sf)
    Series 2006-7 Class IIA            D (sf)      CCC- (sf)


NIHON MINI: Members' Final Meeting Set for January 19
-----------------------------------------------------
Members of Nihon Mini Motor (HK) Co Limited will hold their final
meeting on January 19, 2011, at 9:00 a.m., at 12 Science Park East
Avenue, 6/F, Hong Kong Science Park, Shatin, New Territories, in
Hong Kong.

At the meeting, Christopher John Hasson and Yip Chee Lan, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


REDHAWK ELECTRONICS: Lee Kwok On Alexander Appointed as Liquidator
------------------------------------------------------------------
Lee Kwok On Alexander on December 10, 2010, was appointed as
liquidator of Redhawk Electronics Limited.

The liquidator may be reached at:

         Lee Kwok On Alexander
         Rooms 1901-2, Park-In Commercial Centre
         56 Dundas Street
         Kowloon


TECHNO MOTORCYCLE: Members' Final General Meeting Set for Jan. 14
------------------------------------------------------------------
Members of Techno Motorcycle Company Limited will hold their final
general meeting on January 14, 2011, at 10:00 a.m., at the
Registered Office at Unit 901, 9th Floor, Omega Plaza, 32 Dundas
Street, Kowloon, in Hong Kong.

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


UCB PHARMA: Members' Final Meeting Set for January 18
-----------------------------------------------------
Members of UCB Pharma Limited will hold their final general
meeting on January 18, 2011, at 10:00 a.m., at Level 18, Three
Pacific Place, 1 Queen's Road East, in Hong Kong.

At the meeting, Ying Hing Chiu and Chan Mi Har, the company's
liquidators, will give a report on the company's wind-up
proceedings and property disposal.


=========
I N D I A
=========


AADI INDUSTRIES: CRISIL Downgrades Rating on INR40.5MM Loan to 'D'
------------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Aadi
Industries Ltd (Aadi Industries) to 'D/P5' from ''BB-/Stable/P4+'.
The downgrade reflects delays by Aadi Industries in servicing its
term debt; the delays have been caused by poor liquidity.  Robust
growth in sales has substantially increased the working capital
requirements for the company.  However, the increase in bank
facilities was not adequate to fund the incremental working
capital requirements.  The weakening in the company's liquidity
has resulted in delays in servicing its term debt.

   Facilities                          Ratings
   ----------                          -------
   INR60 Million Cash Credit           D (Downgraded from
                                          'BB-/Stable')

   INR40.5 Million Long-Term Loan      D (Downgraded from
                                          'BB-/Stable')

   INR50 Million Letter of Credit      P5 (Downgraded from P4+)

   INR10 Million Bank Guarantee        P5 (Downgraded from P4+)

Aadi Industries has an average financial risk profile, marked by
average debt protection metrics, and exposure to risks related to
limited track record in the plastic products industry.  These
weaknesses are, however, partially offset by Aadi Industries'
established relationships with dealers across a wide multi-state
network

                       About Aadi Industries

Aadi Industries, promoted by Mr. Rushabh Shah, manufactures
tarpaulin and plastic bags.  Its plant at Silvassa (Union
Territory of Dadra and Nagar Haveli), which commenced operations
in April 2009, has an installed capacity of 950 tonnes per month.

Aadi Industries reported profit after tax (PAT) of INR17.9 million
on net sales of INR717.6 million for 2009-10, against a PAT of
INR1.7 million on net sales of INR97.2 million for 2008-09.


ABS MERCANTILES: ICRA Upgrades Rating on INR14.5cr Bank Facilities
------------------------------------------------------------------
ICRA has upgraded the long term rating from 'LBB-' to 'LBB'
assigned to the INR14.5 crore fund-based facilities of ABS
Mercantiles Pvt. Ltd.  ICRA has also assigned the short term
rating of "A4" to the INR1.0 crore non-fund based limits of the
company.  The long term rating has been assigned a stable outlook.

The upgrade in ratings take into account the improvement in
company's operating performance during 2009-10 with a strong
growth in revenues as well as operating profits, improvement in
financial profile and correction in company's inventory with the
stabilization of auto dealership business.  The ratings are also
supported by the promoters' experience and established network in
the pharmaceutical industry and exclusive marketing contracts with
key suppliers.  The ratings, however, continue to be constrained
by the company's weak competitive position on account of the
commoditized nature of its businesses, relatively small scale of
operations resulting in low bargaining power with the suppliers &
customers and the pharma division's high single client
concentration.

                        About ABS Mercantile

ABS Mercantile Private Limited, established in 1997 is engaged in
the activity of marketing and representing Pharmaceuticals
companies as their selling agent.  Initially the company had
started with only a single principal (Aurobindo Pharma Limited)
but over the years it has been able to associate with many big
bulk and API manufacturers.  To ensure the timely supply and
availability, AMPL has set up warehouses in Baddi (Himachal
Pradesh), Roorkee(Uttarakhand) and Gurgaon (Haryana) to cater to
the need of the pharmaceutical industries based in those
locations.

The company has diversified its business by opening an auto
dealership (Tata and Fiat Auto) in Gurgaon during 2009.  The
company, thus, is currently present in two segments viz.  Pharma
trading and Auto dealership.

Recent Results

The company reported a net profit of INR 1.1 crore on an operating
income of INR 107.2 crore during 2009-10.


AMMARUN FOUNDRIES: CRISIL Reaffirms 'B' Rating on INR41.8MM Loan
----------------------------------------------------------------
CRISIL ratings on Ammarun Foundries's bank facilities continue to
reflect AF's weak financial risk profile, low capacity
utilization, and exposure to intense competition because of
fragmentation in the iron castings industry.  These rating
weaknesses are partially offset by AF's established track record
in the castings industry.

   Facilities                               Ratings
   ----------                               -------
   INR95.0 Million Cash Credit              B/Stable (Reaffirmed)
   INR41.8 Million Term Loan                B/Stable (Reaffirmed)
   INR15.0 Million Post-Shipment Credit     P4 (Reaffirmed)
   INR30.0 Million Inland Letter of Credit  P4 (Reaffirmed)

Outlook: Stable

CRISIL believes that the AF will continue to benefit from its
promoters' track record in the castings industry.  The outlook may
be revised to 'Positive' if AF's financial risk profile improves,
most likely because of fresh equity infusion, and increase in
capacity utilization and profitability.  Conversely, the outlook
may be revised to 'Negative' if AF's debt servicing ability
weakens because of sharp decline in cash accruals, deterioration
in liquidity, or larger-than-expected debt-funded capital
expenditure (capex).

Update

AF's performance in 2009-10 (refers to financial year, April 1 to
March 31) was marginally below CRISIL's expectations, driven by
power shortage from Tamil Nadu Electricity Board leading to
decline in AF's production.  However, AF's performance in 2010-11
is expected to be as per CRISIL's expectations.  The firm has
generated revenues of INR463.5 million in the eight months ended
November 30, 2010, and has an order book of INR80 million as on
date, backed by improvement in demand from its customers.  The
firm undertook a capex programme of INR50 million (funded by term
loan of INR5.5 million, equity of INR22 million, and internal
accruals); the capex is expected to generate additional revenues
of INR100 million annually over the medium term. Despite the
capex, the firm's capital structure remains as per CRISIL
expectation; gearing and liquidity remain adequate for the rating
category.  AF reported a net loss of INR14.0 million on net sales
of INR482.0 million for 2009-10, against a PAT of INR6.4 million
on net sales of INR501.0 million for 2008-09.

                       About Ammarun Foundries

Set up in 1991 as a partnership firm by Mr. N Visvanathan and his
family members, AF manufactures grey and ductile iron castings.
The foundry is based in Coimbatore (Tamil Nadu) and caters to
customers from various industries such as automotive, motor and
pump, tractor, valve, textile, and general engineering. The firm
has production capacity of 2000 tonnes per month.


ASSRM & CO: CRISIL Rates INR50.00 Million Cash Credit at 'BB'
-------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the cash credit
facility of ASSRM &Co, which is a part of the Annai group.

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

The rating reflects the Annai group's below-average financial risk
profile marked by a small net worth and exposure to risks related
to intense competition in the agricultural (agro) commodities
trading business, volatility in foreign exchange (forex) rates and
agro-commodity prices, and adverse regulatory changes.  These
rating weaknesses are partially offset by the Annai group's
established market position, and strong relationships with
suppliers and customers, in the agro-commodities trading business.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Sri Annai Agencies, ASSRM & Co., Annai
Stores, SA & Sons, Annai & Co, Thangamani Enterprises, Annai Corp,
Annai Pulses, Annai Dhall Products, Annai Agro Commodities, and
VSS & Sons. This is because these entities, collectively referred
to as the Annai group, are under a common management and have
fungible cash flows.

Outlook: Stable

CRISIL believes that the Annai group will continue to benefit from
its promoters' extensive experience in the agro-commodities
trading business.  The outlook may be revised to 'Positive' if the
Annai group's net worth increases significantly, led by sustained
increase in profitability and revenues, or infusion of capital by
partners.  The outlook may be revised to 'Negative' if the group's
financial risk profile deteriorates significantly because of
decline in margins, caused in turn by volatility in forex rates or
commodity prices, or because of withdrawal of sizeable capital by
the group's promoter-partners.

                           About the Group

The Chennai-based Annai group, promoted by Mr. V S Sundaralingam
and family, trades in agro-commodities such as sugar, pulses, and
wheat. Sri Annai Agencies and ASSRM & Co import pulses, such as
black mappae and moong dal, and sells these to the other group
entities.  The other group entities procure food materials from
various agents and sell to retailers and institutions in and
around Chennai.  The group has two associate companies, Annai
Flour Pvt Ltd and Annai Fried Grams Pvt Ltd, which process and
sell wheat and gram, respectively. The Annai group was set up in
the late 1960s.

The Annai group reported, on provisional basis, a profit after tax
(PAT) of INR12.50 million on net sales of INR3.90 billion for
2009-10 (refers to financial year, April 1 to March 31); it
reported a PAT of INR6.70 million on net sales of INR2.96 billion
for 2008-09.


DHAVAL AGRI: ICRA Assigns 'LBB+' Rating to INR1cr Term Loan
-----------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR1.0 crore term loan
and INR 8.0 crore cash credit facilities of Dhaval Agri Exports.
The long term rating has been assigned stable outlook.  ICRA has
also assigned an 'A4+' rating to the INR16.50 crore short term
fund based facilities and INR2.50 crore non fund based facilities
of DAE.  The combined utilization of short term fund based
facilities and non fund based facilities should not exceed
INR16.50 crore.

The assigned rating derives comfort from the long standing
experience of promoters in the commodity trading and processing
industry combined with the location advantages for the company
arising out of proximity to raw material supplies with the company
being located in leading sesame producing Saurashtra region of
Gujarat.  Further the assigned rating takes into account the
company's position as one of the leading processor of Sesame seed
in India and diversified geographic mix of revenues.  The ratings
are however constrained by its moderate scale of operations in a
highly competitive and fragmented industry with business being
concentrated on a single commodity.  The company has highly
leveraged capital structure with liquidity profile being further
constrained by low profitability indicators.  Further the
profitability of operations is highly vulnerable to regulatory
framework with regards to export incentives and agro climatic
conditions in the country.

DAE was established in 1999 as a partnership concern by first
generation entrepreneur Mr. Suresh Chandarana in Rajkot, Gujarat.
It is engaged in processing and selling sesame seeds in domestic
as well as export markets.  The company has a processing capacity
of 36000MT of Natural sesame seeds and 18000MT of hulled sesame
seeds per annum

Recent Result

In FY10, DAE has reported a net profit of INR1.80 crore on an
operating income of INR193.8 crore as against PAT of INR 1.5 crore
in FY09 on an operating income of INR 158.4 crore.


BELLISS INDIA: CRISIL Assigns 'B' Rating to INR25MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Belliss India Ltd.  The ratings reflect BIL's weak
financial risk profile, marked by small net worth, high gearing,
and weak capital structure, and its small scale of operations.
These weaknesses are partially offset by the established presence
of BIL's promoters in the steam turbine manufacturing business.

   Facilities                           Ratings
   ----------                           -------
   INR25.0 Million Cash Credit          B/Stable (Assigned)

   INR32.5 Million Proposed LT          B/Stable (Assigned)
            Bank Loan Facility

   INR22.5 Million Letter of Credit     P4 (Assigned)

Outlook: Stable

CRISIL believes that BIL will benefit over the medium term from
its established track record in the steam turbine manufacturing
business and wide customer base.  The outlook may be revised to
'Positive' if the company achieves strong revenue growth and
improves its profitability, thereby improving its capital
structure and debt protection metrics.  Conversely, the outlook
may be revised to 'Negative' if the company undertakes a large,
debt-funded capital expenditure programme, leading to
deterioration in its debt protection metrics and capital
structure.

                        About Belliss India

BIL, established in 1960 as Belliss and Marcom Ltd, manufactures
steam turbines, which find use in sugar and rice mills, and
various industries, such as paper, textile, and steel.  The
company manufactures turbines with capacities ranging from 20
kilowatts to 10 megawatts, used in mill driving, power generation
and co-generation.  Around 50 per cent of the company's revenues
are generated from sugar and rice mills across the country.

BIL reported a profit after tax (PAT) of INR18 million on net
sales of INR212 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR3 million on net sales
of INR182 million for 2008-09.


DIAMONDSTAR: CRISIL Assigns 'P4' Ratings to Various Bank Debts
--------------------------------------------------------------
CRISIL has assigned its 'P4' rating to Diamondstar's bank
facilities.  The rating reflects Diamondstar's large working
capital requirements, and modest scale of operations in diamond
export industry.  These rating weaknesses are partially offset by
the long standing experience of Diamondstar's promoters' in the
diamond business.

   Facilities                              Ratings
   ----------                              -------
   INR92.3 Million Post Shipment Credit    P4 (Assigned)
   INR61.1 Million Packing Credit          P4 (Assigned)
   INR166.6 Million Proposed ST Bank       P4 (Assigned)
                       Loan Facility

Diamondstar is a partnership firm, set up in 1967 by Mr. Chottalal
P Shah and his friends.  The firm procures and exports cut and
polished diamonds.  The firm is currently managed by the second
generation of the Shah family, Mr. Rupesh C Shah and Mr. Nilesh C
Shah. Diamondstar predominantly deals in large diamonds (up to 9
carats) and in marquise, pear, and round cuts.

Diamondstar reported a profit after tax (PAT) of INR5.9 million on
net sales of INR400.7 million for 2008-09 (refers to financial
year, April 1 to March 31), against a PAT of INR6.3 million on net
sales of INR390.4 million for 2007-08.


G. NAGESWARAN: CRISIL Assigns 'BB-' Rating to INR49MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4+' ratings to the bank
facilities of G. Nageswaran.

   Facilities                          Ratings
   ----------                          -------
   INR49.00 Million Cash Credit        BB-/Stable (Assigned)
   INR1.00 Million Bank Guarantee      P4+ (Assigned)

The ratings reflect GN's average financial risk profile marked by
weak capital structure and moderate debt-protection metrics,
working-capital-intensive operations, and customer concentration
in its revenue profile.  These weaknesses are partially offset by
the extensive experience of GN's promoters in the civil
construction business.

Outlook: Stable

CRISIL believes that GN will continue to benefit from the
longstanding industry experience of its promoters.  The outlook
may be revised to 'Positive' if GN diversifies its revenue
profile, leading to significant increase in its scale of
operations, while maintaining its operating margin, or if it
improves its capital structure significantly.  Conversely, the
outlook may be revised to 'Negative' if the firm's profitability
declines, or if it contracts more-than-expected debt to fund its
capital expenditure, leading to deterioration in its capital
structure.

                         About G. Nageswaran

Set up in 1985 as a proprietorship firm, GN is engaged in civil
construction activities, mainly in Tamil Nadu. GN is primarily
constructs roads and storm-water drains.  The construction work is
undertaken for the Government of Tamil Nadu and National Highways
Authority of India.GN has an order book of INR378 million, to be
executed over the next 12-15 months.

GN reported a profit after tax (PAT) of INR22 million on net sales
of INR382 million for 2009-10 (refers to financial year, April 1
to March 31), against a PAT of INR18 million on net sales of
INR445 million for 2008-09.


GUPTA DYEING: CRISIL Assigns 'B-' Rating to INR43MM Term Loan
-------------------------------------------------------------
CRISIL has assigned its 'B-/Stable/P4' ratings to the bank
facilities of Gupta Dyeing and Printing Mills Pvt Ltd.  The
ratings reflect GDPMPL's weak financial risk profile marked by a
high gearing and weak debt protection indicators, and exposure to
risks related to the commodity nature of the company's products.
The above weaknesses are partly negated by the promoters' long
experience in the textile industry.

   Facilities                          Ratings
   ----------                          -------
   INR87.5 Million Cash Credit Limit   B-/Stable (Assigned)
   INR43.0 Million Term Loan           B-/Stable (Assigned)
   INR100.0 Million Proposed LT Bank   B-/Stable (Assigned)
             Loan Facility
   INR40.0 Million Letter of Credit    P4 (Assigned)
   INR5.0 Million Bank Guarantee       P4 (Assigned)

Outlook: Stable

CRISIL believes that Gupta Dyeing and Printing Mills Pvt Ltd
(GDPMPL) will continue to benefit over the medium term from its
promoters' industry experience.  The outlook may be changed to
'Positive' if infusion of fresh equity by promoters strengthens
the company's financial risk profile. Conversely, the outlook may
be revised to 'Negative' if increase in working capital
requirements results in increase in GDPMPL's debt, further
weakening GDPMPL's liquidity.

                         About Gupta Dyeing

Incorporated in 1986 in Surat (Gujarat) by Mr. Nandkishore Gupta,
GDPMPL manufactures polyester draw twisted and draw winder yarn.
The company is being managed by the founder's grandson, Mr. Jatin
Gupta.  Currently, GDPMPL has capacities to manufacture 8 tonnes
of draw twisted yarn and 2 tonnes of draw winded yarn per day.
The company is also installing a new capacity to manufacture 10
tonnes of shaggy polyester yarn per day.

GDPMP reported a profit after tax (PAT) of INR6.0 million on net
sales of INR607.1 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR1.5 million on net sales
of INR356.8 million for 2008-09.


JRD INDUSTRIES: CRISIL Assigns 'P4+' Rating to INR125 Million LOC
-----------------------------------------------------------------
CRISIL has assigned its 'P4+'rating to the bank facility of JRD
Industries.

   Facilities                         Ratings
   ----------                         -------
   INR125 Million Letter of Credit    P4+(Assigned)

The ratings reflect the MJR group's below-average financial risk
profile, marked by small net worth, low profitability, weak debt
protection metrics and moderate gearing, and its vulnerability to
the cyclical and fragmented end-user (shipping and steel)
industries.  These weaknesses are partially offset by the group's
diversified business risk profile.

Analytical Approach

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of JRD, M J R Steels Pvt Ltd, and M J
Scrap Pvt Ltd, together referred to as the MJR group.  This is
because the companies have common management, and fungible cash
flows. Furthermore, JRD and MJR have provided corporate guarantees
for each other's bank facilities. Also, MJSPL has guaranteed the
bank facilities of MJR and JRD. Moreover, the promoters operate
the three companies as a group.

                        About JRD Industries

The MJR group, based in Kolkata, trades in steel intermediaries
and scrap, and also dismantle ships at Alang (Gujarat) and Kolkata
(West Bengal).  The group registered a turnover of around
INR1680 million in 2009-10 (refers to financial year, April 1 to
March 31), of which 75 per cent was from the trading business.

MJR has traded in steel products since 2003-04.  Until 2001, the
company was in the ship-breaking business.  However, due to
downturn in ship breaking in 2002, the company began trading in
steel products.  MJR procures steel products from Kolkata,
Durgapur (West Bengal), Jamshedpur (Jharkhand), Ramgarh
(Jharkhand) and Rourkela (Orissa), and sells the same in West
Bengal, Mandi Govindgarh (Punjab) and Jaipur (Rajasthan).

JRD has been in the ship-breaking business sine 1991, but withdrew
from the business from 2002 to 2008 when it had no operations due
to downturn in the industry.

Over the years, the group has dismantled over 100 ships with
aggregate weight of 0.5 million tonnes.  The day-to-day operations
of the group are looked after by its promoter, Mr. Sanjiv Agarwal.

The MJR group reported a profit after tax (PAT) of INR9.7 million
on net sales of INR1680 million for 2009-10 (refers to financial
year, April 1 to March 31), against a PAT of INR5.5 million on net
sales of INR1835 million for 2008-09.


RAJ PACKAGING: CRISIL Assigns 'BB+' Rating to INR49 Million Loan
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Raj Packaging Industries Ltd.  The ratings reflect
RPIL's weak financial profile, marked by small net worth, moderate
gearing and debt protection measures, and exposure to risks
relating to intense competition in the packaging industry and
small scale of operations.  These rating weaknesses are partially
offset by the benefits that RPIL derives from its established
market position and sound operating efficiencies.

   Facilities                            Ratings
   ----------                            -------
   INR40.0 Million Cash Credit Limit     BB+/Stable (Assigned)
   INR49.0Million Term Loan              BB+/Stable (Assigned)
   INR10.0 Million Letter of Credit      P4+ (Assigned)
   INR1.0 Million Bank Guarantee         P4+ (Assigned)

Outlook: Stable

CRISIL believes that RPIL will continue to benefit over the medium
term from its relationships with its key customers.  The outlook
may be revised to 'Positive' if RPIL's financial risk profile
improves substantially, supported by capital infusion and growth
in operating income and operating margin.  Conversely, the outlook
may be revised to 'Negative' if the company's financial risk
profile deteriorates because of large, debt-funded capital
expenditure.

                       About Raj Packaging

Incorporated in 1988 as a private limited company, RPIL is
promoted by Mr. Prem Kankaria and Mr. U C Bhandari.  The company
manufactures multilayered, co-extruded plastic films, and flexible
packing materials.  It supplies its products mainly to various
film converters and edible oil manufacturers such as The Paper
Products Ltd (rated 'AA-/Stable/P1+' by CRISIL) and Ruchi Soya
Industries Limited.

RPPL reported a profit after tax (PAT) of INR9.1 million on net
sales of INR188.6 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR7.9 million on net sales
of INR195.8 million for 2008-09.


SHRADHA AGENCIES: CRISIL Upgrades Rating on INR150MM Loan to 'BB-'
------------------------------------------------------------------
CRISIL has upgraded its rating on the cash credit facility of
Shradha Agencies Pvt Ltd to 'BB-/Stable' from 'B+/Stable'.  The
upgrade reflects the improvement in SAPL's business performance in
2009-10 (refers to financial year, April 1 to March 31) marked by
a 32.5 per cent growth in revenues, and improved business risk
profile on the back of expansion into newer territories.

   Facilities                          Ratings
   ----------                          -------
   INR150.00 Million Cash Credit       BB-/Stable (Upgraded from
                                                   'B+/Stable')

The rating, however, continues to reflect SAPL's below-average
financial risk profile marked by high gearing and weak debt
protection metrics, and its large, debt-funded working capital
requirements.  These weaknesses are partially offset by SAPL's
sound business risk profile with a strong distribution network,
extensive experience of its promoters in the trading business, and
relatively low-risk business model supported by minimal inventory
and debtor risk.

Outlook: Stable

CRISIL believes that SAPL will continue to benefit from its wide
market reach and low-risk business model.  The outlook may be
revised to 'Positive' if the company's profitability improves
considerably from current levels, or if equity infusions enhance
its net worth, thereby reducing the gearing levels and improving
its debt protection metrics.  Conversely, the outlook may be
revised to 'Negative' if SAPL increases its reliance on debt to
fund its incremental working capital requirements, thereby
constraining its liquidity.

                        About Shradha Agencies

SAPL was originally set up in 1974 as a proprietorship firm, which
began operations by trading in cigarettes; the firm was
reconstituted as a private limited company in 1995.  The company,
which operates from West Bengal, is a stockist for many fast-
moving consumer goods (FMCG) brands including Procter and Gamble,
Nokia, Heinz, and Reynolds, catering to various districts of West
Bengal.  SAPL is currently managed by Mr. Rajeev Arora and his son
Mr. Ankit Arora.

For 2009-10, SAPL reported a profit after tax (PAT) of INR3.53
million on net sales of INR1.59 billion, as against a PAT of
INR2.89 million on net sales of INR1.20 billion for the preceding
year.


STEEL EXCHANGE: ICRA Reaffirms Rating on INR87.02cr Loan to 'LBB+'
------------------------------------------------------------------
ICRA has reaffirmed the 'LBB+' rating to the INR87.02 crore term
loan and INR140.00 crore (enhanced from INR100.00 crore) long term
fund based bank facilities of Steel Exchange India Limited. The
outlook on the rating is Stable. ICRA has also reaffirmed the
'A4+' rating to the INR2.00 crore fund based bank facilities and
INR111.0 crore (enhanced from INR 86.00 crore) non fund based bank
facilities of SEIL.  The retained  ratings factor in the  inherent
cyclicality  and the increasing competition in  the  highly
fragmented steel rolled products industry, the exposure of the
company to highly volatile raw material prices which has affected
its operating margins during FY10 and the weak financial profile
of the company characterized by high gearing, low operating
profitability and low coverage indicators.  However, the ratings
favorably factor in the positive demand outlook for the Indian
steel industry, demonstrated ability of the promoters to bring in
funds by way of equity and unsecured loans and the anticipated
cost savings from the backward integration of manufacturing
operations, which is expected to improve margins post
stabilization of operations.  Though the capital expenditure
towards backward integration and capacity expansion is likely to
benefit the company in the long term, in ICRA's opinion the
company could face off-take risks in the near term to an extent.

                       About Steel Exchange

SEIL was incorporated in 1999 as a subsidiary of Pyxis Technology
Solutions Ltd. It was set up as a trading and logistics entity, to
support steelexchangeindia.com, an online steel trading portal
developed and launched by PTSL.  Subsequently, the company
ventured into steel trading and manufacturing operations.
Currently the company has  an installed capacity of  2,25,000 TPA
for sponge iron, 3,30,000 TPA for billets/ingots, 2,70,000 TPA for
TMT bars, 30,000 TPA for wires and 10 MW of power.

Recent Results

SEIL reported a Profit After Tax (PAT) of INR4.96 crore on an
operating income of INR696.98 crore for the year ended March 31,
2010 as against a PAT of INR4.79 crore on an operating income of
INR696.92 for the year ended March 31, 2009.

SEIL has clocked net sales of INR 354.13 crores for the six months
ended September 2010, representing healthy growth of 16% over the
sales in the corresponding period of the previous fiscal.
During the same period, the company has reported a PAT of
INR13.68 crore against a PAT of INR6.61 crore in the corresponding
period of the previous fiscal.


VIJETA PROJECTS: ICRA Assigns 'LBB+' Rating to INR37.5cr Bank Debt
------------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to INR37.50 crore1 fund based
limits of Vijeta Projects and Infrastructures Limited.  The
outlook on the long-term rating is stable.  ICRA has also assigned
an 'A4+' rating to INR125.00 crore non-fund based limits of VIPL.

The ratings take into account VIPL's experienced promoters; its
long track record of operations; its presence in diverse segments;
and a robust order book which provides visibility to revenues
going forward. However, the ratings  are  constrained  by the
risks associated with  high geographical concentration of VIPL's
projects; delays witnessed  in many of its projects which impacts
the revenue generation and profitability; and the execution
challenges faced on account of a sizeable order book.  The ratings
also take into consideration the high working capital intensity of
the company due to delays in recovery of payments from the
clients; and the fact that the revenue recognition policy of the
company is not in accordance with the accepted accounting norms.

                    About Vijeta Projects

Promoted in 1990 by the Singh family, Vijeta Projects &
Infrastructures Limited (VPIL) is a closely held public limited
company engaged in executing infrastructure projects across
sectors like irrigation, roadways, railway infrastructure, mining,
etc.  The company is primarily working for various government and
semi government bodies (Central Public Works Department, Jharkhand
State Mineral Development Corp., Department of Water Resources,
National Buildings Construction Corporation etc) in the states of
Bihar and Jharkhand.  In addition to this, VPIL is also working
for reputed private sector clients like Larsen & Toubro, Tata
Power Ltd, Jindal Power Ltd, etc.

Recent Results

VIPL  reported a profit after tax (PAT) of INR  7.8  crore  in
FY2009-10 on an operating income of INR145.1 crore.


=========
K O R E A
=========


KUMHO ASIANA: Creditors to Start Korea Express Sale Process
-----------------------------------------------------------
Yonhap News reports that financial sources said creditors of Korea
Express Co. Ltd. are seeking to begin the process to sell a major
stake in the company in early 2011.

Yonhap's sources said that the state-run Korea Development Bank
will likely seal the decision to sell the stake in Korea Express
this weekend and pick sale-managing brokerages in order to kick
off the sale process early next year.

According to Yonhap, sources said the stake to be put up for sale
is expected to reach over 70%, which includes a 23.95% stake held
by Daewoo Engineering & Construction Co., another 23.95% interest
by Asiana Airlines Inc., and a 20% share owned by Korea Express
itself.

Yonhap states that the plan to sell the Korea Express stake came
after KDB bought a majority stake in Daewoo Engineering from Kumho
Asiana Group earlier this month as part of its efforts to rescue
the financially troubled group, now under a creditors-led debt
rescheduling program.

Yonhap reports that several conglomerates, including steel giant
POSCO, are reportedly interested in buying the stake, whose value
analysts estimate reaches KRW2 trillion (US$1.7 billion) due to a
managerial right that comes with the transaction.

Samsung Group and retail giant Lotte Group are also known to be
interested in joining the race to buy Korea Express, which Kumho
Asiana acquired in 2008, Yonhap adds.

Bloomberg News reported that Kumho Asiana said Jan. 5 that it
plans to raise KRW1.3 trillion (US$1.1 billion) from asset sales
to help repay debt stemming from the 2006 takeover of Daewoo
Engineering.  The group has already sold assets and lost control
of units including Daewoo Engineering, Kumho Industrial Co. and
Kumho Tire Co. to creditors.

Korea Express Co., Ltd. provides land and marine transportation,
and logistics services.  The company also operates stevedoring,
distribution, and warehousing businesses that serve domestic and
international customer needs.  The company is part of the Kumho
Asiana Group.

                          About Kumho Asiana

Established in 1946, Kumho Asiana Group is a large South Korean
conglomerate, with subsidiaries in the automotive, industry,
leisure, logistic, chemical and airline fields.  The group is
headquartered at the Kumho Asiana Main Tower in Sinmunno 1-ga,
Jongno-gu, Seoul, South Korea.


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


AXIS INC: Taps New Adviser for Proposed Restructuring Scheme
------------------------------------------------------------
Axis Incorporation Berhad has appointed MIDF Amanah Investment
Bank Berhad as the new adviser for the company's Proposed
Restructuring Scheme.  MIDF Amanah replaces RHB Investment Bank
Berhad.

                           About Axis Inc.

Based in Johor Bahru, Malaysia, Axis Incorporation Berhad
(KUL:AXIS) -- http://www.chongee.com.my-- is principally engaged
in the business of investment holding. The company, through its
subsidiaries, is engaged in fabric knitting and dyeing, and
manufacturer of garments.  Its subsidiaries include Asiapin Sdn.
Bhd., Chongee Enterprise Sdn. Bhd. and GBC Marketing Pte. Ltd.  In
June 2008, Axis Incorporation Berhad announced the disposal of the
entire equity interest in Ganad Corporation Bhd.

On May 23, 2009, Axis Incorporation Berhad was classified as an
affected issuer under the Amended Practice Note No. 17/2005 and
Paragraph 8.14C of the Listing Requirements of Bursa Malaysia
Securities Berhad as the Company was unable to provide a solvency
declaration to Bursa Securities.


JPK HOLDINGS: Taps TA Securities as News Principal Adviser
----------------------------------------------------------
JPK Holdings Berhad on December 20, 2010, mutually agreed with
Public Investment Bank Berhad to revoke and terminate the earlier
appointment of PIVB as JPK's Principle Scheme Advisor to the
Company's Restructuring Exercise.  JPK had on the same date
appointed TA Securities Holdings Berhad as the Company's new
Principle Scheme Advisor to JPK Group's Restructuring Exercise.

                          About JPK Holdings

JPK Holdings Berhad is a Malaysia-based investment holding company
engaged in the provision of management services to its
subsidiaries.  The Company's subsidiaries include JPK (Malaysia)
Sdn. Bhd., which is engaged in the manufacture of precision
plastic injection moulded parts; JPK Industries Sdn. Bhd., which
is engaged in property holding; JPK Co. Ltd., which is engaged in
investment holding; JPK (Dongguan) Co. Ltd., which is engaged in
the Manufacture of precision plastic injection moulded parts, and
JPK (Hanoi) Co. Ltd., which is engaged in the manufacture,
assemble, process and design precision plastic injection moulded
parts.  The Company's operating businesses are organized and
managed into three geographical locations: Malaysia, The Socialist
Republic of Vietnam and The People's Republic of China.

                           *     *     *

JPK Holdings Berhad has been considered as an Affected Listed
Issuer under Practice Note No. 17 of the Bursa Malaysia Securities
Berhad as the external auditors of the Company have expressed a
disclaimer opinion on the Company's audited financial statements
for the financial year ended March 31, 2009.


KENMARK INDUSTRIAL: Liquidators File Wind Up Petition Against Unit
------------------------------------------------------------------
Kenmark Industrial Co. (M) Bhd disclosed that Mak Kum Choon and
Yeoh Siew Ming, the Joint and Several Liquidators of the Company,
have filed a petition to the Court for the winding up of Kenmark
Paper Sdn Bhd pursuant to Section 217 (c) and (d) and Section 218
(e) and (i) of the Companies Act, 1965.

The Company had regarded that Kenmark Paper is not financially
solvent as a going concern.  Kenmark Paper was placed under
receivership on June 11, 2010, by EON Bank pursuant to the powers
contained in a debenture dated November 18, 1991, created by
Kenmark Paper in favor of EON Bank in respect of banking
facilities up to a combined limit of MYR11 million.  As at May 27,
2010, Kenmark Paper was indebted to EON Bank in amount of
MYR7,668,375.41.

The Company told the bourse that under the existing circumstances,
it is just and equitable that Kenmark Paper should be wound up.
In addition, it would be appropriate to apply to the Court to
appoint Mak Kum Choon and Yeoh Siew Ming as Joint and Several
Liquidators to deal with the assets of Kenmark Paper for these
reasons:

   a) Kenmark Paper is a wholly owned subsidiary of the Company
      and the Petitioners are currently the Joint and Several
      Liquidators of the Company appointed by the court on
      October 14, 2010;

   b) The Company is a public listed company and the Joint
      Several Liquidators are responsible to deal with its wholly
      owned subsidiary companies as per the Court Order dated
      October 14, 2010;

   c) It would be cost efficient to also appoint the Petitioners
      as the Joint and Several Liquidators of Kenmark Paper as the
      Joint and Several Liquidators would have to wind down the
      business of the Kenmark Paper once the assets are fully
      realized;

   d) The Receiver and Manager only protects the interest of the
      Debenture Holder while the Joint and Several Liquidators
      look after all the interest of the creditors and
      contributories; and

   e) The appointment of the Joint and Several Liquidators in
      Kenmark Paper will not prejudice the receivers and managers
      and/or debenture holders in any manner whatsoever.

Based on the Kenmark Paper's audited financial statement for the
year ended March 31, 2009, the Company holds 6,000,000 ordinary
shares issued and fully paid-up of MYR1 each in Kenmark Paper.

Kenmark Paper is currently dormant and the Company is unable to
assess the expected losses, if any, arising from the winding-up
proceedings.

                      About Kenmark Industrial

Kenmark Industrial Co. (M) Berhad is a Malaysia-based company.
The Company is engaged in the manufacturing of computer
workstations, cabinets, furniture; printing of packaging
materials; the distribution of consumer products, and investment
holding.  The Company is also engaged in plastic injection for
furniture parts, and assembly and distribution of liquid crystal
display (LCD).  It exports its products to the United States,
Europe, Japan and Australia.

                          *     *     *

Kenmark Industrial Co. (M) Berhad has been classified a Practice
Note 17 company based on the criteria set by the Bursa Malaysia
Securities Bhd after it triggered Paragraph 2.1(f) of the Listing
Requirements.  The Company's major subsidiaries have defaulted on
some of their banking facilities.  The Company is also unable to
provide a solvency declaration.

The High Court on October 14, 2010, entered an order to wind up
the operations of Kenmark Industrial Co (M) Berhad under the
provisions of the Companies Act, 1965.  The court appointed Mak
Kum Choon and Yeoh Siew Ming both of Messrs. Deloitte Corporate
Solutions Sdn Bhd as liquidators for Kenmark Industrial Co (M)
Berhad.


LCL CORP: Won't Appeal Delisting Notice
---------------------------------------
LCL Corporation Berhad disclosed in a regulatory filing that it
will not be appealing Bursa Malaysia Securities Berhad's decision
to suspend trading of the company's securities as the Company does
not have any Regularization Plan.

The Company said on December 15 that it failed to submit its
regularization plan to the Securities Commission and other
relevant authorities for approval within the timeframe stipulated
by Bursa Securities.

The Company's securities will be de-listed on December 27, 2010,
unless an appeal is submitted to Bursa Securities on or before
December 22, 2010.

                           About LCL Corp

Based in Malaysia, LCL Corporation Berhad (KUL:LCL) --
http://www.lclgroup.com.my/-- is an investment holding company
engaged in the provision of management services to the
subsidiaries.  It operates in five segments: interior fit-out
services, which provides interior fit-out works and services,
including project management, design and consultancy, procurement,
construction and installation; manufacturing of furniture, which
is engaged in the manufacture of customized furniture and
fixtures, generic furniture; supply and installation of materials
and fittings, which is engaged in the supply and installation of
ceiling materials, metal fittings and fixtures and stone
materials; trading of furniture and building materials, including
interior fit-out materials, and others, which comprises investment
holding and/or property development activities of the Company and
certain subsidiaries.

LCL Corp Bhd. has been classified as an Affected Listed Issuer
under Practice Note 17 of Bursa Malaysia Securities Berhad as the
Company is unable to provide a solvency declaration to Bursa
Securities following a default in its loan payments pursuant to
Practice Note 1/2001.

Bursa Securities further decided to de-list the securities of the
Company from the Official List of Bursa Securities pursuant to
paragraph 8.04 of Bursa Securities Main Market Listing
Requirements in the event:

   (a) the Company fails to sign and announce a definitive
       agreement with the white knight i.e. the Manhara Group
       of Companies on or before October 31, 2010;

   (b) the Company fails to submit the regularization plan to
       the SC for approval within the Extended Timeframe;

   (c) the Company fails to obtain the approval for the
       implementation of its regularization plan and does not
       appeal within the timeframe (or extended timeframe, as
       the case may be) prescribed to lodge an appeal;

   (d) the Company does not succeed in its appeal; or

   (e) the Company fails to implement its regularization plan
       within the timeframe or extended timeframes stipulated
       by the relevant authorities.

Upon occurrence of any of the events set out, the securities of
the Company will be removed from the Official List of Bursa
Securities upon the expiry of seven market days from the date of
the Company is notified by Bursa Securities or such other date as
may be specified by Bursa Securities.


TRACOMA HOLDINGS: Appoints Mohamed Niza Abu Bakar as CEO
--------------------------------------------------------
Tracoma Holdings Berhad has appointed Mohamed Niza Abu Bakar as
Chief Executive Officer of the company effective December 17,
2010.

Mohamed Niza started his career with the Central Bank of Malaysia
(Bank Negara Malaysia) as a Senior Executive with the Banking
Supervision Department.  He served the Central Bank for 5 years
and was exposed to various fields in corporate finance and
investment banking.

Mohamed Niza then joined Tracoma Group in 2005 in the accounts and
corporate finance division and subsequently heads the division in
2008.

Mohamed Niza replaces Zulkiflee Mohamad, who resigned on Dec. 10,
2010.

                      About Tracoma Holdings

Tracoma Holdings Berhad is a Malaysia-based manufacturer and
supplier of automotive parts and components.  Some of its wholly
owned subsidiary companies include Tracoma Sdn. Bhd., which is
engaged in manufacturing of automotive components; Malaysian Die-
Makers Sdn. Bhd., which is engaged in die making and servicing;
Trends Mecha Sdn. Bhd., which is engaged in parts and car design,
and Malaysian Farm Machinery Sdn. Bhd., which is engaged in
assembling and distributing agricultural tractors.

                            *     *     *

Tracoma Holdings Berhad has been classified as an Affected Listed
Issuer under Practice Note 17 of the Listing Requirements of Bursa
Malaysia Securities Berhad.

The company has triggered PN17's Paragraph 8.04 and Paragraph
2.1(a) as the consolidated shareholders' equity for the full
financial year ended December 31, 2009, is less than 25% of the
Company's issued and paid-up capital and such shareholders' equity
is less than MYR12 million.


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


LOMBARD FINANCE: Distributions on Hold Until IRD Claim is Resolved
------------------------------------------------------------------
Guide2.co.nz reports that the receivers of Lombard Finance &
Investments said no further distributions will be made to secured
debenture investors until a claim by Inland Revenue is resolved.
Lombard Finance went into receivership in 2008.

IRD has been carrying out a goods and services tax audit of
Lombard since the start of the receivership, according to
Guide2.co.nz.  As a result, the IRD has advised that it may have a
preferential claim of up to NZ$4.5 million in the receivership,
the report relates.

Guide2.co.nz discloses that the claim relates to the GST component
of one specific transaction that occurred prior to receivership.

"We will be reviewing their claim to assess whether to accept it
and whether the receivers consider it to be preferential or not,"
receiver PricewaterhouseCoopers said in a report obtained by
Guide2.co.nz.

Guide2.co.nz notes that two interim distributions totaling 9.5
cents on the dollar have been paid to secured debenture investors
because IRD has waived any preferential claim.

The IRD has now advised that as a result of the outcome of its
audit, it is no longer in a position to agree to waive any
preferential claim in respect of any further interim
distributions, the report adds.

                   About Lombard Finance

Lombard Finance & Investments Limited is a wholly owned
subsidiary of Lombard Group, a diversified company specializing in
the financial services sector offering a number of lending options
and providing investment opportunities for its shareholders and
investors.

Lombard Finance was placed into receivership on April 10, 2008,
by its trustee, Perpetual Trust Limited.  PricewaterhouseCoopers
partners John Fisk and John Waller have been appointed receivers
of the company.  The receivership also applies to three other
subsidiaries of Lombard Group, being Lombard Asset Finance
Limited, Lombard Property Holdings Limited and Lombard Asset
Finance No 2 Limited.  The receivership does not impact on
Lombard Group Limited.


SOUTH CANTERBURY: Owed NZ$103-MM by Southbury Corp, Receiver Says
-----------------------------------------------------------------
The New Zealand Herald reports that South Canterbury Finance's
parent company owes the entity more than NZ$103 million.

The NZ Herald relates that McGrathNicol's Kerryn Downey and
William Black on December 21 filed their first report on Southbury
Corporation, the 100% owner of South Canterbury Finance, for which
they are also the receivers.

Southbury Corporation is wholly owned by Southbury Group, of which
Allan Hubbard owns about 70%.  Mr. Hubbard's assets have been
under statutory management since June 20.

According to the NZ Herald, Messrs. Downey and Black were
appointed to both Southbury Corporation and Southbury Group on
November 3 after South Canterbury Finance demanded repayment of
money owed to it and the demand was not met.

"At the date of our appointment, $103,908,343 was owed to South
Canterbury Finance and remains outstanding.  Interest continues to
accrue on this amount," the pair stated, according to the NZ
Herald.

Southbury Corporation's major assets are an NZ$18.1 million loan
to its parent company Southbury Group and its investment in South
Canterbury Finance worth NZ$245.5 million.

South Canterbury Finance is in the process of selling its major
assets including stakes in Helicopters NZ, Scales Corporation and
Dairy Holdings.

"Until the sales process for South Canterbury Finance is complete,
we are unable to confirm the likely recovery for Southbury
Corporation's sole shareholder . . . Southbury Group."

The receivers also said they were aware of a number of concerns
raised by investors and other parties in relation to the
activities of South Canterbury Finance Group before their
appointment.

"We are aware . . . that Southbury Corporation may have been a
party to some of these transactions."

The receivers said any potential breaches of legislation would be
reported to the authorities, the NZ Herald adds.

Kerryn Downey and William Black of McGrathNicol were appointed
Receivers and Managers of Southbury Group Limited and Southbury
Corporation Limited on November 3, 2010.

                       About South Canterbury

Based in New Zealand, South Canterbury Finance Limited (NZE:SCFHA)
-- http://www.scf.co.nz/-- is engaged in the provision of
financial services.  The Company's principal activities are
borrowing funds from public and institutional investors and on-
lending those funds to the business, plant and equipment,
property, rural and consumer sectors.  It typically advances funds
by means of hire purchase, floor plans, leasing of plant, vehicles
and equipment, personal loans, business term loans and revolving
credit facilities, mortgages against property, and other financial
instruments, including consumer loan insurance.

On August 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.

"As Trustee, we have had South Canterbury Finance under heightened
surveillance since 2008.  As part of that, SCF was granted a
Trustee waiver in February 2010 to allow it time to recapitalize.
Unfortunately, the Company's Directors have advised us that they
have not been successful with respect to a recapitalization and
requested us to appoint a receiver.  At this point we, as Trustee,
agree that it is the best interests of debenture, deposit and bond
holders to do that," said Yogesh Mody, Southern Regional Manager
for Trustees Executors Limited.

The New Zealand government said it would repay South Canterbury's
35,000 depositors and stockholders NZ$1.6 billion under the crown
retail deposit guarantee scheme.


SOUTHERN CROSS: S&P Affirms 'BB/B' Ratings with Stable Outlook
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it has affirmed the
'BB/B' ratings on New Zealand-based Southern Cross Building
Society.  The outlook remains stable.

"The rating affirmation reflects S&P's view of the stabilizing
effect that the proposed merger with MARAC Finance Ltd. and
Canterbury Building Society would have on SCBS' credit standing
once a larger and more diversified financial institution is
created," Standard & Poor's credit analyst Peter Sikora said.
"The merger will help ameliorate S&P's concerns around SCBS'
current high level of single-name exposures and its concentrated
business profile."

The stable outlook reflects S&P's view that SCBS' high level of
single-name exposures and its concentrated business profile will
be ameliorated by the stabilizing effect that the proposed merger
will have on SBCS' credit standing once the larger and more
diversified financial institution is created.  The ratings on SCBS
will be withdrawn once the merger is completed, although S&P note
that the creditors stand to benefit from the potentially better
credit profile of the newly merged group.

The new group has the potential to be rated 'BBB-', subject to
several factors.  These include:

That ongoing merger plans continue to be effectively executed and
integration risks and related costs are appropriately managed.

The merged group is able to meet board and governance expectations
that are supportive of a higher rating.

The merged entity is able to retain the support of its depositors,
debenture investors, and providers of wholesale funding, and
maintain a funding and liquidity profile that is comparable with
other 'BBB' category peers'.

The financial profile of the merged group progresses as expected
and leads to a progressive improvement in operating performance.
No new credit concerns emerge that undermine the merged group's
financial profile or S&P's assessment of its risk management
capability.  The expectation that the recent stabilization and
improvement in asset quality across merger partners will continue.

The financial impact of the Christchurch earthquake does not
detract from S&P's assessment of the merged group's credit
profile.

There will be no material divergence of strategy from current
expectations such that it compromises S&P's view of the benefits
from the merger, or any strategic shift that increases the merged
group's overall risk profile.

If the merger transaction with MARAC and CBS does not proceed as
planned:

Downward pressure on the current ratings could arise on the back
of management being unsuccessful in re-weighting the loan
portfolio toward residential lending, such that the credit quality
of the overall portfolio deteriorates.  That said, the planned
merger has already progressed well down its path of regulatory and
statutory impositions and the unsuccessful consummation of the
merger appears to be unlikely.

S&P does not expect to raise the ratings on SCBS in the short
term.  Before S&P could consider an upgrade, a large capital
injection would be needed to moderate SCBS' susceptibility to
unexpected losses stemming credit, market, and operational risks.


ST LAURENCE: Investors to Get First Repayment Next Month
--------------------------------------------------------
BusinessDesk reports that investors in St Laurence Ltd will get
the first 9 cents-in-the-dollar repayment next month after
receivers sold its interest in National Property Trust and
recovered some loans.

BusinessDesk relates that receivers Barry Jordan and David Vance
of Deloitte still kept their forecast recovery at between 15% and
22% of investors' principal according to their second report as at
Oct. 28 and published on the firm's website.  That's on top of the
10 cents repaid under St Laurence's abandoned moratorium,
BusinessDesk notes.

BusinessDesk says the receivers don't expect to recover enough to
make any interest payments, or repay note holders and unsecured
creditors.

According to BusinessDesk, Messrs. Jordan and Vance said they
recovered NZ$18.8 million from the sale of the National Property
Trust units, the bulk of which will come through by the end of
March.  The receivers are looking at "many options" to either sell
shares or the management contract for Irongate Property Ltd, but
none have been finalized, BusinessDesk adds.

                        About St Laurence Ltd

Headquartered in Wellington, New Zealand, St Laurence Limited
-- http://www.stlaurence.co.nz/st_laurence.php-- is a property-
based funds management and finance company with over NZ$1.2
billion in assets under management.  Since 1995 it has been
developing and promoting investments, lending to property
borrowers, and managing its property assets and investments for
its investors.

                           *     *     *

St. Laurence Limited has been placed into receivership, owing
9,000 investors NZ$245 million.  The company's trustee, Perpetual
Trust, on April 29, 2010, appointed Barry Jordan and David Vance
of Deloitte as receivers of St. Laurence and some of its
subsidiaries.

The receivership does not include the companies which are the
managers of The National Property Trust, Irongate Property Limited
and its proportionate ownership schemes and syndicates.

                             *********

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, Ivy B. Magdadaro, 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.

                  *** End of Transmission ***