TCRAP_Public/110126.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, January 26, 2011, Vol. 14, No. 18

                            Headlines



A U S T R A L I A

BIOLYTIX AUSTRALIA: Goes Into Voluntary Liquidation
FERRAUS LTD: Shareholders Approve AU$35 Million Capital Raising
PERLE PTY: Housing Minister Won't Pay Subcontractors


C H I N A

NEW DRAGON: Faces NYSE Delisting After No Stockholders' Meet
KAISA GROUP: Debt Issuances Cue S&P to Affirm 'BB-' Corp. Rating


H O N G  K O N G

ALL SMART: Court to Hear Wind-Up Petition on February 9
BRILLIANT EMPIRE: Court Enters Wind-Up Order
CAPITAL LEASE: Creditors' Proofs of Debt Due February 21
CARESHIP AVIATION: Creditors and Contributories to Meet on Feb. 9
CENTURY EASTERN: Ying and Wong Step Down as Liquidators

CHOK YICK: Creditors' Meeting Set for February 2
CHEUNG WING: Court Enters Wind-Up Order
DE RODEO: Chen and Lo Appointed as Liquidators
DECOR ONE: Court Enters Wind-Up Order
DMI LIMITED: Court to Hear Wind-Up Petition on February 16

LEHMAN BROTHERS: HKMA Reports Progress on Probe of Minibond Cases


I N D I A

AIR INDIA: May Be Declared 'Sick Company', Praful Patel Says
AIR INDIA: Agrees to Partially Pay Off Fuel Dues to Oil Firms
AMINES & PLASTICIZERS: CRISIL Reaffirms 'BB+' Cash Credit Rating
ARYA ALLOYS: ICRA Assigns 'LBB' Rating to INR14.95cr Bank Limits
BAKRIE TELECOM: S&P  Affirms 'B' Rating on Senior Unsecured Notes

BHADRA ENTERPRISES: ICRA Puts 'LB+' Rating on INR15cr Bank Limits
CARBON RESOURCES: ICRA Cuts Rating on INR2.9cr Term Loan to 'LC'
EXENSYS SOFTWARE: CARE Rates LT Bank Facilities at 'CARE B'
GANGAMAI INDUSTRIES: ICRA Reaffirms 'LBB' Rating on INR91.5cr Loan
GRANITE GATE: CRISIL Assigns 'BB' Rating to INR1.25BB Term Loan

HYT INOVATIVE: CRISIL Assigns 'BB' Rating to INR100MM Cash Credit
KHANBHAI ESOOFBHAI: CRISIL Reaffirms 'B+' Rating on Cash Credit
KHOSLA AGRO: CRISIL Reaffirms 'BB' Rating on INR400MM Cash Credit
KRISHNA GEMS: ICRA Assigns 'LBB-' Rating to INR7.5cr Bank Limits
METCUT TOOLINGS: CARE Assigns 'CARE BB+' Rating to INR11.33cr Loan

MICROMATIC GRINDING: ICRA Cuts Rating on INR15.44cr Loan to 'LBB-'
MJ LOGISTICS: Fitch Affirms National Long-Term Rating at 'B+(ind)'
NAVRATNA SG: ICRA Reaffirms 'LBB+' Rating on INR61cr Bank Limits
OSL PRESTIGE: ICRA Assigns 'LBB' Rating to INR6cr Term Loan
PRASUNA VAMSIKRISHNA: ICRA Reaffirms 'LBB' Rating on Term Loan

R K STEEL: CRISIL Assigns 'BB' Rating to INR122.5MM Cash Credit


J A P A N

RESONA HOLDINGS: To Raise Up to JPY544.7BB Via New Share Offering
* S&P Raises Ratings on Six Japanese Synthetic CDO Transactions


K O R E A

KOREA LINE: Files for Receivership
SAMHWA MUTUAL: Woori, Two Other Banks Likely to Bid For Samhwa


N E W  Z E A L A N D

NEW WAVE SURFWEAR: "Hopelessly Insolvent," Receivers' Report Says
SAMOAN METHODIST: IRD Chases Church for NZ$1.2 Mil. Tax Bill
SOUTH CANTERBURY: Hubbard Reveals Secret U.S.-based Bidder for SCF


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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BIOLYTIX AUSTRALIA: Goes Into Voluntary Liquidation
---------------------------------------------------
Kerrie Sinclair at The Courier-Mail reports that Biolytix
Australia's entities in Australia have gone into liquidation
blaming months of wet weather and floods in key markets.

The Courier-Mail says Biolytix Australia, which has 50 full-time
staff, is now controlled by chartered accountants Lawler Partners.
Its New Zealand business is unaffected.

According to the report, Biolytix said rain last year hit sales,
and administrator Raymond Tolcher said the recent floods proved
"the decisive point" when "the phone stopped ringing".

A creditors' meeting will be held in Brisbane within two weeks.
Biolytix's debt level is being assessed, the Courier-Mail reports.

Its main creditors are suppliers and customers.  Customers who
paid deposits for the sewage systems that now cannot be delivered
will join the ranks of unsecured creditors.

Biolytix Australia is a Brisbane-based sewage systems and
irrigation kits manufacturer.  Biolytix's patented sewage
treatment system, commercialised in 2004, won awards, including
Australia's most prestigious Science and Innovation Award, and the
company won a Premier's Smart Business Award.  Biolytix managing
director Dean Cameron invented the sewage system technology and
founded the company that in 2007 had yearly revenue of AU$9.5
million.


FERRAUS LTD: Shareholders Approve AU$35 Million Capital Raising
---------------------------------------------------------------
An Extraordinary General Meeting of shareholders in FerrAus
Limited on January 24, 2011, approved a resolution to allow a
proposed capital raising of up to AU$35 million.

Shareholder approval was required under ASX Listing Rule 7.9 given
the current takeover offer for FerrAus announced by Wah Nam
International Holdings Limited on November 10, 2010, and also,
under ASX Listing Rule 7.1, so that the issue of shares would not
count for the purposes of the restriction on issuing more than
15% of the Company's issued capital in any 12 month period.

FerrAus Chairman John Nyvlt said the proposed capital raising
received strong support from shareholders with a significant
proportion of shares voted and approximately 70% of the shares
voted being in favor.

"Today's vote represents a broad shareholder endorsement of our
corporate strategy of accelerating the development of our Pilbara
Project to take maximum advantage of the favorable outlook for
iron ore.

"Once successful, the proposed Capital Raising will ensure FerrAus
is better funded to continue to progress its Pilbara iron ore
development and deliver value to its shareholders as key
milestones are met and the project is de-risked," Mr. Nyvlt said.

FerrAus intends to raise up to AU$35 million which, together with
the existing cash on hand of approximately AU$16 million as at
December 31, 2010, will be used to fund the Definitive Feasibility
Study of the Company's Pilbara Project, ongoing working capital,
overhead requirements and exploration costs.

In keeping with its previous capital raisings, several of which
have been completed at a premium, FerrAus will seek to maximize
the pricing of the raising and minimize dilution of existing
shareholders.  FerrAus will update the market in due course in
relation to the timing and terms of the capital raising.

FerrAus has retained Macquarie Capital Advisers Limited as Lead
Manager to the Capital Raising.  It is anticipated that the
capital raising will be underwritten.

FerrAus shareholders also approved the grant of Options to the
nominee of recently appointed Executive Director Mr. Bryan Oliver.

                       About Ferraus Limited

FerrAus Limited (ASX: FRS) -- http://www.ferraus.com/-- is a
junior exploration company based in Australia with its focus on
the discovery and production of ferrous raw materials, including
iron ore, manganese, and nickel.  The company has four exploration
licences located in the East Pilbara region of Western Australia
with excellent potential for iron ore and manganese deposits.

                          *     *     *

FerrAus Limited posted three consecutive net losses of AU$3.05
million, AU$2.92 million and AU$8.29 million for the year ended
June 30, 2008, 2009, and 2010, respectively.


PERLE PTY: Housing Minister Won't Pay Subcontractors
----------------------------------------------------
ABC News reports that New South Wales Housing Minister Frank
Terenzini has all but ruled out the State Government putting up
more money to finish three Illawarra public housing projects
stalled after the construction company Perle Pty Ltd went into
administration.  The report relates that the Construction,
Forestry and Mining Union wants the government to provide up to
AU$1.5 million to finish the projects and pay the sub-contractors.

However, ABC News says, Mr. Terenzini said that he's waiting for
the administrator to finish examining the company's situation, and
hopes Perle Pty can continue to trade its way out of trouble.

Mr. Terenzini, the report notes, said that the government will not
guarantee sub-contractors payments on big building jobs.
"This is a very dangerous path to go down, it's unrealistic and
unworkable for a government to go guarantor and insurer for sub-
contractors, people with whom we have not had dealings directly,"
ABC News quoted Mr. Terenzini as saying.  "What that would do is
firstly encourage people to do shoddy workmanship and it would
also encourage people not to pay their bills," he added.

Headquartered in Australia, Perle Pty Ltd is a construction
company.


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C H I N A
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NEW DRAGON: Faces NYSE Delisting After No Stockholders' Meet
------------------------------------------------------------
New Dragon Asia Corporation received a letter from NYSE Amex LLC
indicating that it is below certain of the Exchange's continued
listing standards because it failed to hold an annual meeting of
its stockholders during 2010 as set forth in Section 704 of the
NYSE Amex Company Guide.  The Company was afforded the opportunity
to submit a plan of compliance to the Exchange by February 17,
2011 to demonstrate the Company's ability to regain compliance
with Section 704 of the Company Guide by July 18, 2011.  If the
Company does not submit a plan or if the plan is not accepted by
the Exchange, the Company will be subject to delisting procedures
as set forth in Section 1010 and part 12 of the Company Guide.

The Company intends to submit a plan to the Exchange and to hold
its annual meeting of stockholders to regain compliance with the
Exchange's listing standards.  The Company's ability to hold its
2010 annual meeting of stockholders is subject to clearance by the
Securities and Exchange Commission of the Company's preliminary
proxy statement on Schedule 14A relating to the 2010 annual
meeting of stockholders.

                           About NWD

New Dragon Asia Corp., a Florida corporation, is headquartered in
Shandong Province, China and is engaged in the milling, sale and
distribution of flour and related products, including instant
noodles and soybean-derived products, to retail and commercial
customers.  As the fourth largest instant noodle manufacturer in
China, New Dragon Asia markets its well-established Long Feng
brand through a network of more than 200 key distributors and 16
regional offices in 27 Chinese provinces with an aggregate
production capacity of approximately 195,000 tons of flour and
more than 1.1 billion packages of instant noodles per year.


KAISA GROUP: Debt Issuances Cue S&P to Affirm 'BB-' Corp. Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services revised the rating outlook on
China-based real estate developer Kaisa Group Holdings Ltd. to
negative from stable.  At the same time, S&P affirmed the 'BB-'
long-term corporate credit rating on the Company.  S&P also
affirmed the 'B+' issue rating on Kaisa's outstanding senior
unsecured notes.

"We revised the outlook to reflect our view that Kaisa's credit
ratios will likely weaken due to its recent aggressive debt
issuances and an increasingly uncertain outlook for property
sales.  As a result, S&P is uncertain if the Company's credit
ratios will be supportive of the current rating.  This risk has
more than offset the benefit of an extended maturity profile and
increased liquidity buffer due to the bond issuances," said
Standard & Poor's credit analyst Christopher Lee.

Since December 2010, Kaisa has increased its total borrowings to
about RMB10.3 billion by adding RMB3.5 billion in new debt.

"We also considered the Company's aggressive land acquisitions in
new markets, where it has a limited track record. Uncertainty over
whether the Company has the resources to cope with its rapid
expansion is also a rating weakness.  In S&P's view, the Company's
strategy appears to be shifting from steady expansion and an urban
redevelopment model that is less capital intensive.  The latter
was a key supporting factor for the current rating.  S&P do not
view the Company's expansion into new markets as contributing to a
diversification of credit risk as it has yet to establish a track
record in these markets," said Mr. Lee.

In S&P's view, Kaisa's financial performance for 2010 should be
better than S&P expected.  However, the improvement is not likely
to support the large increase in borrowings within the past two
months and an uncertain property market outlook, which is
attributable to rising interest rates and likely more policies to
curb property prices.

The rating on Kaisa reflects the Company's aggressive debt-funded
expansion and its short track record of consistent financial
management.  Further, S&P believes the Company may be deviating
from its strategy of steady growth and focus on urban
redevelopment.  The rating is also constrained by the Company's
high geographic and project concentration, and its limited track
record of execution outside Guangdong.  These strengths are offset
by Kaisa's large and low-cost land bank, and an established market
position in Shenzhen.  Kaisa is a Shenzhen-based residential and
commercial property developer with a focus on urban redevelopment
projects in the Pearl River Delta region.

Kaisa's liquidity is adequate, in S&P's view.  Its RMB1.50 billion
convertible bond issuance and RMB2.00 billion in senior unsecured
notes have extended its average debt maturity.  By S&P's
estimates, the Company had cash of RMB4.60 billion at the end of
2010 against RMB1.71 billion in short-term debt.  Kaisa's
committed land premium outstanding for 2011 is RMB3.00 billion.
S&P understands that the Company has some flexibility to scale
back its budgeted construction expenses.  The Company has about
RMB1.50 billion in undrawn uncommitted bank lines from Chinese
banks.

S&P may lower the rating if the Company's property sales or
margins are materially lower than S&P's projections, such that its
EBITDA interest coverage is below 3x and its debt-to-EBITDA ratio
is above 4x.

The outlook could be revised to stable if the Company shows good
execution capability in its expansion and evidence of stabilizing
its leverage and cash flow coverage to levels that are supportive
of the current rating, including property sales of at least RMB16
billion.


================
H O N G  K O N G
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ALL SMART: Court to Hear Wind-Up Petition on February 9
--------------------------------------------------------
A petition to wind up the operations of All Smart Enterprises
Limited will be heard before the High Court of Hong Kong on
February 9, 2011, at 9:30 a.m.

Citydragon Resources Limited the petition against the company on
October 27, 2010.

The Petitioner's solicitors are:

          Lam & Co
          Room A, 19th Floor
          Harbour Commercial Building
          Nos. 122-124 Connaught Road
          Central, Hong Kong


BRILLIANT EMPIRE: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on January 13, 2011,
to wind up the operations of Brilliant Empire Limited.

The company's liquidator is:

          Mat Ng
          c/o John Lees Associates
          20/F Henley Building
          5 Queen?s Road
          Central, Hong Kong


CAPITAL LEASE: Creditors' Proofs of Debt Due February 21
--------------------------------------------------------
Creditors of Capital Lease Assets Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by February 21, 2011, to be included in the company's dividend
distribution.

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

The company's liquidator is:

         Chow Ching Man
         Units 803-5, Nan Fung Tower
         173 Des Voeux Road
         Central, Hong Kong


CARESHIP AVIATION: Creditors and Contributories to Meet on Feb. 9
-----------------------------------------------------------------
Creditors and contributories of Careship Aviation Limited will
hold their first meetings on February 9, 2011, at 2:30 p.m., and
3:00 p.m., respectively at Unit 511, 5/F, Tower 1, Silvercord, 30
Canton Road, Tsimshatsui, Kowloon in Hong Kong.

At the meeting, Ho Man Kit Horace and Kong Sze Man Simone, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


CENTURY EASTERN: Ying and Wong Step Down as Liquidators
-------------------------------------------------------
Alison Wong Lee Fung Ying and Wong Kwok Man stepped down as
liquidators of Century Eastern Limited on December 13, 2010.


CHOK YICK: Creditors' Meeting Set for February 2
------------------------------------------------
Creditors of Chok Yick Interior Design & Engineering Company
Limited will hold their meeting on February 2, 2011, at 9:00 a.m.,
for the purposes provided for in Sections 241, 242, 243, 244 of
the Companies Ordinance.

The meeting will be held at Bauhinia Room, Harbour Plaza Resort
City, 18 tin Yan Road, Tin Shui Wai, New Territories, in
Hong Kong.


CHEUNG WING: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on October 29, 2010,
to wind up the operations of Cheung Wing Foods Development
Limited.

The company's liquidator is:

          Mat Ng
          John Lees Associates
          20/F Henley Building
          5 Queen?s Road
          Central, Hong Kong


DE RODEO: Chen and Lo Appointed as Liquidators
-----------------------------------------------
Messrs. Chen Yung Ngai Kenneth and Lo Wa Kei Roy on January 4,
2011, were appointed as liquidators of De Rodeo Catering Limited.

The liquidators may be reached at:

         Messrs. Chen Yung Ngai Kenneth
         Lo Wa Kei Roy
         43/F, The Lee Gardens
         33 Hysan Avenue
         Causeway Bay, Hong Kong


DECOR ONE: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on December 14, 2010,
to wind up the operations of Decor One Design & Engineering
Limited.

The company's liquidator is Pui Chiu Wing.


DMI LIMITED: Court to Hear Wind-Up Petition on February 16
----------------------------------------------------------
A petition to wind up the operations of DMI Limited will be heard
before the High Court of Hong Kong on February 16, 2011, at
9:30 a.m.

The Petitioner's solicitors are:

          Ching & Co
          11th Floor, Tower 188
          No. 188 Hennessy Road
          Wanchai, Hong Kong


LEHMAN BROTHERS: HKMA Reports Progress on Probe of Minibond Cases
-----------------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced on January 21
that investigation of more than 99% of a total of 21,744 Lehman-
Brothers-related complaint cases received has been completed.
These include:

    * 14,371 cases which have been resolved by a settlement
      agreement reached under section 201 of the Securities and
      Futures Ordinance;

    * 2,556 cases which have been resolved through the enhanced
      complaint handling procedures required by the settlement
      agreement;

    * 2,680 cases which were closed because insufficient prima
      facie evidence of misconduct was found after assessment or
      no sufficient grounds and evidence were found after
      investigation;

    * 1,540 cases (including minibond cases) which are under
      disciplinary consideration after detailed investigation by
      the HKMA, of which proposed disciplinary notices are being
      prepared in respect of 757 such cases and proposed
      disciplinary notices or decision notices have been issued
      in respect of the other 783 cases; and

    * 506 cases in respect of which investigation work has been
      completed and are going through the decision process to
      decide whether there are sufficient grounds for
      disciplinary actions or whether the cases should be closed
      because of insufficient evidence or lack of disciplinary
      grounds.

Investigation work is underway for the remaining 89 cases.

A table summarizing the progress of the disciplinary and
complaint-resolution work in respect of Lehman-Brothers-related
complaints is available at http://ResearchArchives.com/t/s?7272

                       About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
disclosed US$639 billion in assets and US$613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI.

The Bankruptcy Court has approved Barclays Bank Plc's purchase
of Lehman Brothers' North American investment banking and
capital markets operations and supporting infrastructure for
US$1.75 billion.  Nomura Holdings Inc., the largest brokerage
house in Japan, purchased LBHI's operations in Europe for US$2
plus the retention of most of employees.  Nomura also bought
Lehman's operations in the Asia Pacific for US$225 million.

                 International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion
(US$33 billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other insolvency
and bankruptcy proceedings undertaken by its affiliates.
(http://bankrupt.com/newsstand/or 215/945-7000)


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I N D I A
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AIR INDIA: May Be Declared 'Sick Company', Praful Patel Says
------------------------------------------------------------
The Economic Times reports that former Civil Aviation Minister
Praful Patel may have to declare national carrier Air India as
sick.

According to the report, Patel, now Minister for Heavy Industries
and Public Enterprises, said his ministry has notified a new
criterion to identify state-run firms that are terminally sick.
Air India may fall in this category if the new norms are applied
to the debt-ridden carrier, the Economic Times says.

The Economic Times states that the new norms, notified by the
department of public enterprises a day after Patel took charge,
said a financially troubled state-run firm would be considered a
'turnaround ' case only if it had reported profits in three
preceding financial years.  Also, the profits should be without
any grants from the government or a loan waiver from a financial
institution.

But Air India reported losses in the past two fiscals, although it
has succeeded in cutting these losses.  The carrier had a debt of
around INR40,000 crore against an equity base of INR1,000 crore.
The troubled carrier also got an equity infusion of INR1,200 crore
in December 2010, as without this lifeline it would not have been
able to pay wages beyond March 2011.

Air India, if declared sick, would be referred to the Board for
Restructuring of Public Sector Enterprise, which falls under the
department of public enterprises, the Economic Times adds.

                   Restoring Carrier's Lost Glory

Meanwhile, The Hindu reports that Vayalar Ravi, new civil aviation
minister, on Thursday sought the support of all employees of the
ailing national carrier, Air India, in restoring its lost glory,
and said the staff and management should work in coordination to
achieve this goal.

"I am taking over from one of my best friends and colleagues,
Praful Patel, who is responsible for making the aviation sector
grow very fast.  Thanks to him that there are many more private
players and budget airlines," The Hindu quoted Mr. Ravi as saying
soon after assuming office at the Ministry's headquarters in the
presence of former civil aviation minister Praful Patel.

The Hindu relates that Mr. Ravi said he would carry forward the
policies and implement the programmes initiated by his
predecessor, and strive to bring about improvement in the
financial position of Air India as well as the overall aviation
sector.

"I also solicit the cooperation of all trade unions. I am here to
hear them and seek their cooperation. Among my priorities would be
to improve Air India's services, make it a profitable institution
and restore its lost glory," Mr. Ravi said, according to The
Hindu.

Mr. Ravi, as cited by The Hindu, said he would also be meeting
corporate leaders and other stakeholders in the civil aviation
sector shortly to listen to their issues and seek their
cooperation.

                          About Air India

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

                           *     *     *

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

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


AIR INDIA: Agrees to Partially Pay Off Fuel Dues to Oil Firms
-------------------------------------------------------------
Livemint.com reports that Air India Ltd has agreed to partially
pay off its dues to oil marketing companies and negotiated a daily
payment system for the next 45 days, after which it hopes to repay
in full.

Livemint.com says the national flag carrier owed INR2,300 crore to
state-owned Indian Oil Corp. Ltd, Bharat Petroleum Corp. Ltd and
Hindustan Petroleum Corp. Ltd in early December, when the oil
firms discontinued credit to the airline on a directive from the
oil ministry.

According to the report, Air India has now agreed to pay a lump
sum of INR475 crore, or a little more than one-third of the
INR1,200 crore it received as equity infusion from the government
this month.

The agreement was reached in a meeting of Air India chairman
Arvind Jadhav, oil ministry's additional secretary and financial
adviser P.K. Sinha and officials from oil companies and the
aviation ministry, Livemint.com relates, citing unnamed two
officials present at the meeting.

Air India also agreed to pay INR13.5 crore daily for the next 45
days, Livemint.com adds.

Livemint.com states that the oil companies sought a daily payment
of INR17.5 crore, but the airline refused. "It's a national
carrier and one of the oldest customers of the oil companies.
They can't just abandon the airline when it is going through a bad
phase," the second official told Livemint.com.

Livemint.com reports that an Air India official said the payments
will be made from the equity infusion.

"The equity is mainly to be used for repaying aircraft loans and
interest, besides oil companies and aircraft vendors," the
official, requesting anonymity, told Livemint.com.

The carrier, says Livemint.com, hopes to make the rest of the
payment to oil companies from the money it is due to receive from
some government departments.

The government has made a total equity infusion of INR2,000 crore
in the debt-laden carrier and promised another INR2,000 crore for
the next fiscal, Livemint.com discloses.

Like the national carrier, Livemint.com says, large private
carriers such as Kingfisher Airlines Ltd and Jet Airways (India)
Ltd have also defaulted on fuel payments in the last two calendar
years, when the aviation industry was hit by the global economic
slump and a steep hike in fuel prices.

                          About Air India

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

                           *     *     *

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

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


AMINES & PLASTICIZERS: CRISIL Reaffirms 'BB+' Cash Credit Rating
----------------------------------------------------------------
CRISIL's ratings on the bank facilities of Amines & Plasticizers
Ltd. continue to reflect APL's weak financial risk profile marked
by small cash accruals and weak debt protection metrics.  These
rating weaknesses are partially offset by APL's healthy market
position in the gas-treatment business.

   Facilities                         Ratings
   ----------                         -------
   INR280.0 Million Cash Credit       BB+/Stable (Reaffirmed)
   INR50.0 Million Letter of Credit   P4+ (Reaffirmed)
   INR80.0 Million Bank Guarantee     P4+ (Reaffirmed)

Outlook: Stable

CRISIL believes that APL will maintain its healthy market position
over the medium term.  The outlook may be revised to 'Positive' if
there is a significant and sustained improvement in APL's cash
accruals and debt protection metrics.  Conversely, the outlook may
be revised to 'Negative' if the company undertakes a larger-than-
expected debt-funded capital expenditure programme or reports
substantial deterioration in its business performance.

                     About Amines & Plasticizers

Incorporated in 1974 in technical collaboration with the erstwhile
Napthachemie, France (now a part of British Petroleum Plc), APL is
engaged in the manufacturing of amines (mainly methyl
diethanolamine) and morpholine oxide. APL recently commissioned an
ethoxylate plant (backward integration of methyl diethanolamine)
and has doubled its manufacturing capacity of morpholine oxide to
7,200 metric tonnes per annum.  APL has manufacturing plants in
Turbhe and Khopoli (both in Maharashtra). Along with its
manufacturing business, APL has also started trading in
ethanolamine.

APL has two subsidiaries: APL Infotech Ltd and APL Engineering
Services Pvt Ltd. APL Infotech Ltd (51% shareholding by APL) is
engaged in development of software for applications in oil and gas
industry.  APL Engineering Services Pvt Ltd (wholly owned by APL)
is engaged in providing services for integrated design,
engineering, construction, installation and project management of
industrial, mechanical, electrical, civil and information
technology. Both the companies are expected to start operations by
March 31, 2011.

For 2009-10 (refers to financial year, April 1 to March 31), APL
reported a net profit of INR30.20 million (INR.34.80 million for
the previous year) on net sales of INR1.66 billion (INR1.50
billion). For the six months ended September 30, 2010, APL
reported a net profit of INR13.10 million (INR15.00 million for
the corresponding period of the previous year) on net sales of
INR831.80 million (INR514.20 million).


ARYA ALLOYS: ICRA Assigns 'LBB' Rating to INR14.95cr Bank Limits
----------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR14.95 crores fund
based limits and INR0.55 crores non-fund based limits of Arya
Alloys Private Limited.  ICRA has also assigned an 'A4' rating to
the INR2.0 crores non-fund based limits of AAPL.  The outlook on
the long-term rating is stable.

The rating takes into account the inherently low value additive
and intensely competitive nature of the lead processing industry
which coupled with AAPL's moderate scale of operations (thereby
resulting in modest economies of scale) have resulted in low
profitability indicators for the company.  This in turn has
resulted in modest cash accruals and moderate debt protection
indicators.  The rating is also constrained by the low utilization
of AAPL's alloying capacity and its susceptibility to variation in
lead prices which have been highly volatile in the last few years.

About 40% of AAPL's sales are to a single client [Tata AutoComp GY
Batteries Limited, a Tata Group Company] which increases the
client concentration risk for the company, although this risk is
however mitigated by TGY's huge demand for lead and AAPL's
Memorandum of Understanding with TGY specifying a minimum purchase
quantity to be bought by TGY every month.  While assigning the
rating ICRA has also noted the high working capital intensity of
operations which has resulted in negative cash flow from
operations in the last two years.  Going forward, the company's
ability to manage its working capital requirements as the
scale of operations increase will be critical to its future
funding requirements and gearing levels.  Nevertheless, the rating
draws comfort from AAPL's experienced management, its long track
record in the lead processing industry and low offtake risk as the
company has signed a MOU with its main client for supplying lead.

                           About Arya Alloys

Arya Alloys Private Limited was incorporated in 1991.  In 1996,
Mr. Raj Kumar Bansal bought the company from the erstwhile
promoters and set up a manufacturing unit for processing of lead.
The unit started commercial production in 1997.  At present, the
company is managed by Mr. Raj Kumar Bansal who is the chairman of
the company and his son Mr. Romy Bansal who is the managing
director of the company. Mr. Raj Kumar Bansal looks after
production while Mr. Romy Bansal takes care of all other aspects
of business like purchase, marketing and sales and finance.


BAKRIE TELECOM: S&P  Affirms 'B' Rating on Senior Unsecured Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' issue rating
on the senior unsecured notes due 2015 issued by Bakrie Telecom
Pte. Ltd., a wholly owned subsidiary of Indonesia-based PT Bakrie
Telecom Tbk. (BTEL; B/Stable/--).  S&P affirmed the rating after
BTEL announced that it intends to reopen the issue to increase
the size by up to US$130 million.  The additional notes will have
the same terms and conditions as the existing notes, including
being fully and unconditionally guaranteed by BTEL.

BTEL expects to use the proceeds from the bond issue to refinance
a US$30 million bank loan and US$50 million in equipment vendor
payables.  Any remaining proceeds would be mainly used for funding
the Company's future capital expenditure.


BHADRA ENTERPRISES: ICRA Puts 'LB+' Rating on INR15cr Bank Limits
-----------------------------------------------------------------
ICRA has assigned a 'LB+' rating to INR15.0 crore sanctioned bank
limits of Bhadra Enterprises.

The assigned rating factors in the execution and market risks
associated with the project since it is at a very nascent stage
with only land having been acquired, high reliance on booking
advances which are expected to fund close to 40% of the project
cost and lack of any advance bookings as on date. ICRA notes  that
the region  of the upcoming project (near S V Road in Kandivali)
is likely to see high competitive pressures given that a number of
other residential projects  are under construction by established
builders which can put pressure on sales volumes and sales price
going  forward.  Oversupply of residential space due to
redevelopment schemes may also put pressure on sales price.
Moreover, the high dependence on internal accruals through
advances from customers for funding of the project creates funding
risks for the proposed Veer Tower Project.  However the rating
derives comfort from advantageous location of the project due to
the improved proximity to arterial S.V.Road and rail network
connecting Mumbai city, the promoters' long experience in this
industry and the growing demand for residential space in the city.

                     About Bhadra Enterprises

Formed in 2005, Bhadra is a partnership firm formed by Vandana
group with its presence in construction business.  The past
projects of the group include Mohan Nagar, Vasant Building and Dev
Nagar in Kandivli, Jay Building and Miraaj Residency in Malad and
Heena Apartments in Khar.


CARBON RESOURCES: ICRA Cuts Rating on INR2.9cr Term Loan to 'LC'
----------------------------------------------------------------
ICRA has revised downwards the long term rating of the INR2.90
crore term loan and INR11.05 crore cash credit facility of Carbon
Resources Private Limited from 'LBB+' to 'LC'.  ICRA has also
revised downwards the short term rating of the INR6 crore non fund
based bank facilities of CRPL  from 'A4+' to 'A5'.

The rating revision follows the CRPL's stretched liquidity
position leading to delays in the payment of interest and
principal on its term loans.

Carbon Resources Private Limited was incorporated as a private
limited company in 2000-01 and currently has manufacturing plants
based in Barauni, Bihar (for calcined petroleum coke plant) and
Giridih, Jharkhand (for coal tar distillation and carbon electrode
paste plant).  CRPL is in the process of setting up a 48,000 mtpa
(metric  tonnes per annum) calcined petroleum coke (CPC) plant at
Chirang, Assam at a total cost of around 10 crore.  The plant has
already suffered a delay in commissioning and is now scheduled to
be commissioned in April 2011, after a delay of around 9 months.
CRPL has also deferred its greenfield project for CPC and carbon
electrode paste (CEP) which was proposed to come up at
Vizianagaram, Andhra Pradesh.


EXENSYS SOFTWARE: CARE Rates LT Bank Facilities at 'CARE B'
-----------------------------------------------------------
CARE assigns 'CARE B' rating to bank facilities Exensys Software
Solutions Ltd.

                               Amount
   Facilities                 (INR cr)         Ratings
   ----------                 --------         -------
  Long-term Bank Facilities   25.00            'CARE B'

Rationale

The rating factors in instances of delays in the past on repayment
of loans and payment of salaries of employees due to tight
liquidity and high collection period, decreasing trend in revenue,
competition from the other major players in the industry, forex
risk associated with exports and concentration risk arising out of
single product and single country.  The rating is however,
underpinned by the experienced and professional management, in-
house developed ERP Product, low gearing ratio and growth
prospects in the Information Technology Industry.  The ability of
ESSL to launch the product successfully and to procure orders from
new clients, repeat orders from the existing customers and improve
its liquidity position are the key rating sensitivity.

Exensys Software Solutions Ltd. was established by Mr. Mohammed
Shams Qamar (Managing Director) in 2001 as Holool India Ltd. which
was subsequently reverse merged with Vision Soft Ltd. and the name
was changed to ESSL. ESSL is engaged in business of providing the
service of software development, business solutions & services.

On a total income of INR9.16cr, ESSL earned a PAT of INR1.17cr in
FY10. For the half year ended September 30, 2010, ESSL achieved
total income of INR4.49 crore with PAT of INR0.58 crore.


GANGAMAI INDUSTRIES: ICRA Reaffirms 'LBB' Rating on INR91.5cr Loan
------------------------------------------------------------------
ICRA has reaffirmed the 'LBB' and 'A4' ratings to the term loans,
fund based facilities and non-fund based facilities of Gangamai
Industries & Constructions Limited aggregating to INR91.50 crore.
The long-term rating carries a stable outlook.

The reaffirmation of ratings takes into account the relatively
small size of operations of the company and the risks inherent in
the sugar business such as cyclical trends, variations in agro-
climatic conditions and exposure to government policies on cane
pricing and sugar release mechanism as well as the exposure in the
construction business towards possible delays in projects due to
reasons beyond the scope of the company.  While the company has
infused fresh equity during FY2010, the company's capital
structure continues to remain highly leveraged on account of
addition of debt for shifting of the sugar plant, on-going
expansion towards 12 MW co-generation unit as well as setup of
windmill projects.  The ratings however continue to favorably
factor in the forward integration of sugar business into
distillery operations that partially insulates the profitability
of the company from sugar cyclicality, long track record of the
promoters in the construction business and a healthy order book
position in construction projects.  The company has successfully
commissioned its sugar plant at the new location and should
benefit from better cane availability and higher recovery rates.
ICRA however notes that the benefits of the same along with the
commissioning of the co-generation unit would be visible only from
FY 2012 onwards.

                      About Gangamai Industries

Gangamai Industries & Constructions Limited, incorporated in 1999,
is one of the companies under Padmakar Mulay Group of Industries
in Aurangabad. GICL established a sugar plant with 2500 TCD
crushing capacity that has been operational since January 2001 and
further entered into the construction business in the year 2005.
The company setup a 30 KLPD ethanol unit in 2004 and a 30 KLPD
distillery unit in 2007.  In the year 2010, the company shifted
its sugar plant from Shillod Taluka in Aurangabad to Shavgaon
Taluka in Aurangabad and increased its crushing capacity to about
2500 TCD.  The company is also setting up a 12 MW co-generation
unit at the new location that is expected to be operational by end
of January 2011.

In FY 2010, GICL reported Profit after Tax (PAT) of INR2.37 crore
on an operating income of INR66.80 crore.


GRANITE GATE: CRISIL Assigns 'BB' Rating to INR1.25BB Term Loan
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable' rating to the bank facilities
of Granite Gate Properties Pvt Ltd.

   Facilities                       Ratings
   ---------                        -------
   INR1,250.0 Million Term Loan     BB/Stable (Assigned)

The ratings reflect GGPPL's exposure to high fund fungibility
between group entities and susceptibility to inherent risks and
downturns in the domestic real estate industry.  These weaknesses
are partially offset by GGPPL's comfortable market position,
healthy inflow of advances from customers, and low debt-funding
for its projects.

Outlook: Stable

CRISIL believes that GGPPL will maintain its comfortable position
in the real estate market in Noida and Grater Noida (Uttar
Pradesh).  The outlook may be revised to 'Positive' if GGPPL
demonstrates timely completion of its ongoing projects, supported
by timely inflow of customer advances. Conversely, the outlook may
be revised to 'Negative' if GGPPL faces significant delays in its
projects or contracts large quantum of debt for funding the
projects.

                         About Granite Gate

GGPPL was incorporated in 2009-10 (refers to financial year, April
1 to March 31) as part of the Three C group to undertake
residential real estate development projects. The company is
developing two group housing projects in Greater Noida-Lotus
Panache and Lotus Boulevard.  The flagship company of the Three C
group, Three C Universal Developers Pvt Ltd, wholly owns GGPPL.
GGPPL has issued 24,424,914 fully and compulsory convertible
debentures to the private equity fund, Red Fort Capital, to fund
the project. Ownership of Three C Universal Developers Pvt Ltd in
GGPPL is expected to reduce to around 60.95% after conversion of
the debentures into equity.


HYT INOVATIVE: CRISIL Assigns 'BB' Rating to INR100MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' ratings to the bank
facilities of HYT Inovative Projects Pvt Ltd, a part of the HYT
group.

   Facilities                       Ratings
   ----------                       -------
   INR100.0 Million Cash Credit     BB/Stable (Assigned)
   INR65.6 Million Rupee Term Loan  BB/Stable (Assigned)
   INR25 Million Letter of Credit
                 & Bank Guarantee   P4+ (Assigned)

The ratings reflect the HYT group's high customer concentration in
revenue profile, working-capital-intensive nature of business, and
exposure to risks related to volatility in raw material prices.
These rating weaknesses are partially offset by the HYT group's
improved financial risk profile, driven by private equity
investment, and the benefits that the group derives from its
promoter's extensive experience in the railway machines segment,
its engineering capability, and its market presence.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of HYT Engineering Company Pvt Ltd, HYT
Machines Pvt Ltd, and HIPPL, collectively referred to herein as
the HYT group.  This is because all these entities are under the
same management; moreover, HMPL and HECPL together hold 30% stake
in HIPPL investments.  Furthermore, HECPL and HMPL are in the same
line of business, as both manufacture machines for Indian
Railways, and in the process of getting merged in the current
year. Moreover, these entities provide funding support to each
other in the form of unsecured loans and have also provided
corporate guarantee for each other's bank facilities.

Outlook: Stable

CRISIL believes that the HYT group will continue to benefit over
the medium term from its established market presence and sizeable
order book.  The group's financial risk profile is expected to
remain healthy during this period, supported by healthy cash
accruals.  The outlook may be revised to 'Positive' if the group
significantly scales up its operations, while maintaining its
operating margin, leading to higher cash accruals. Conversely, the
outlook may be revised to 'Negative' if the company undertakes a
larger-than-expected, debt-funded capital expenditure (capex)
programme, or reports significantly lower cash accruals because of
a decline in order book or operating margin.

                          About the Group

HECPL and HMPL manufacture special-purpose machines used to
manufacture and maintain wheel and axle assemblies in railway
locomotives, wagons, and coaches.  The two companies, together,
have six manufacturing units in Pune (Maharashtra). HIPPL
manufactures precision tubes, which are used in a wide range of
defence systems such as missiles and nuclear reactors.

The HYT group reported a profit after tax (PAT) of INR141.9
million on net sales of INR1.74 billion for 2009-10, as against a
PAT of INR57.2 million on net sales of INR808.2 million for
2008-09.


KHANBHAI ESOOFBHAI: CRISIL Reaffirms 'B+' Rating on Cash Credit
---------------------------------------------------------------
CRISIL's ratings on the bank facilities of Khanbhai Esoofbhai
continue to reflect KE's exposure to downturns and intense
competition in the ship-breaking industry, and adverse changes in
government regulations.  The ratings also factor in KE's average
financial risk profile, marked by a small net worth, and small
scale of operations. These rating weaknesses are partially offset
by KE's strong track record in, and the healthy growth prospects
for, the ship-breaking industry.

   Facilities                          Ratings
   ----------                          -------
   INR20.0 Million Cash Credit         B+/Stable (Reaffirmed)
   INR130.0 Million Letter of Credit   P4 (Reaffirmed)

Outlook: Stable

CRISIL believes that KE will benefit over the medium term from the
revival in the ship-breaking industry.  The outlook may be revised
to 'Positive' if the firm reaps the benefits of the boom in the
ship-breaking industry and scales up its operations. Conversely,
the outlook may be revised to 'Negative' if KE's financial risk
profile deteriorates because of a significant decline in steel
scrap prices or if the firm is unable to scrap ships in the
stipulated time, thereby constraining its financial flexibility.

Update

KE's financial performance in 2009-10 (refers to financial year,
April 1 to March 31) has been slightly lower than CRISIL's
estimates.  The scale of operations was slightly lower in 2009-10
because of spill over of revenues in 2010-11. Also the firm's
margins have been lower than expected because of steel price
volatility and lower sales in high margin vessel machinery. The
firm's gearing was higher than expected at 2.51 as on March 31,
2010 because of incremental debt to support working capital in the
form of buyer's credit and unsecured loan from promoters. However,
the total outside liabilities to tangible net worth ratio has been
significantly lower (at 2.78 as on March 31, 2010) than expected
because of a large part of creditor level being squared off in
February 2010. However, KE's financial risk profile shall remain
constrained by low and unstable cash accruals because of the
cyclic nature of operations.

                      About Khanbhai Esoofbhai

Set up in 1912, KE is one of the oldest firms in the ship-breaking
industry in India.  It has capacity to break ships ranging from
1500 to 15,000 tonnes at its 45-metre plot at Alang (Gujarat), the
leading centre of the ship breaking and recycling industry in
Asia. The firm has expertise in breaking various types of ships
such as general cargo ships, oil tankers, reefers, and bulk
carriers. KE imports ships, breaks them, and sells the scrap,
primarily, to steel re-rolling mills in and around Mumbai
(Maharashtra) and Bhavnagar (Gujarat) directly or through brokers.

KE reported a profit after tax (PAT) of INR6 million on net sales
of INR148 million for 2009-10 (refers to financial year, April 1
to March 31), against a PAT of INR2.3 million on net sales of
INR18 million for 2008-09.


KHOSLA AGRO: CRISIL Reaffirms 'BB' Rating on INR400MM Cash Credit
-----------------------------------------------------------------
CRISIL's rating on the bank facilities of Khosla Agro Overseas
continues to reflect Khosla's weak capital structure because of
large working capital borrowings, and susceptibility to volatility
in raw material prices, uneven rainfall, and adverse regulatory
changes.  These rating weaknesses are partially offset by Khosla's
promoters' experience in the rice business, and the working
capital funding support the firm receives from its promoters.

   Facilities                      Ratings
   ----------                      -------
   INR400.0 Million Cash Credit    BB/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that Khosla will continue to benefit from its
promoters' experience in the rice business.  However, the firm's
financial risk profile will remain weak, given its large working
capital requirements.  The outlook may be revised to 'Positive' in
case of significant improvement in the firm's profitability and
debt protection metrics.  Conversely, the outlook may be revised
to 'Negative' if there is further deterioration in the firm's
capital structure or increased pressure on its profitability.

Update

Khosla reported net sales of INR673 million for 2009-10 (refers to
financial year, April 1 to March 31), which was lower than CRISIL
expectations.  The decline was driven by lower domestic sales due
to poor production of sharbati variety under non-basmati rice
category; the impact of the decline was, however, partially
compensated by increase in revenues from export.  Increase in
export revenues led to improvement in operating margin to over
5.5% in 2009-10 from 3% in 2008-09.  The firm undertook a capital
expenditure (capex) programme of around INR30 million in 2009-10
on storage silos and sorting capacity to cater to export market.
The firm's inventory level as on March 31, 2010 was significantly
higher than its historical average, as offtake from export market
was lower than management's expectations; the inventory has been
cleared in 2010-11.  CRISIL believes that Khosla will continue to
benefit from the working capital funding support from its
promoters, but its capital structure will remain under pressure
over the medium term.

Khosla reported a profit after tax (PAT) of INR12.2 million on net
sales of INR673.2 million for 2009-10, against a PAT of INR5.7
million on net sales of INR725.8 million for 2008-09.

                         About Khosla Agro

Set up in 1993 by Mr. Jaideep Khosla and Mr. Varun Khosla, Khosla
is engaged in milling and sorting of basmati and non-basmati rice.
It sells basmati rice under the Agro Gold and Agro Star brands,
and non-basmati sharbati rice under the Double A brand. The firm
has a rice milling and sorting unit in Batala (Punjab), with an
installed capacity of 18 tonnes per hour.


KRISHNA GEMS: ICRA Assigns 'LBB-' Rating to INR7.5cr Bank Limits
----------------------------------------------------------------
ICRA has assigned a 'LBB-' rating to INR 7.5 Crore sanctioned bank
limits of Krishna Gems.  This rating has been reassigned on the
long term scale as against the earlier rating of 'A4' on the short
term scale. The outlook on the long term rating is stable.

The assigned rating factors in the Krishna Gem's small scale of
operations characterized by high volatility in operating revenues,
very low profitability and high working capital intensity as a
result of slow receivables as well as high inventory levels . ICRA
notes that the industry in which Krishna Gems operates is
dominated by large number of unorganized players resulting in
stiff competition, thereby suppressing the margins, further; KG's
operating margins are also exposed to exchange rate fluctuations.
The firm's highly concentrated supplier and customer base also
increases vulnerability on operations, though the risk is partly
mitigated by its long term relationships with customers and
suppliers.  The rating also considers favorably the experience of
the promoters in the cut and polished diamond industry for over
three decades.  ICRA also notes the firm's conservative capital
structure at present backed by conservative bank limit
utilization.

                         About Krishna Gems

Established in 1980, Krishna Gems is a partnership firm engaged in
the import of rough diamonds and export of Cut and Polished
Diamonds.  KG has a two processing units at Surat & a sales office
in Opera House, Mumbai.

Recent results:

KG recorded a net profit of INR 0.53 crore on operating income of
INR 19.25 crore for the year ending 31 March 2010.


METCUT TOOLINGS: CARE Assigns 'CARE BB+' Rating to INR11.33cr Loan
------------------------------------------------------------------
CARE assigns 'CARE BB+' and 'PR4' rating to bank facilities of
Metcut Toolings Pvt. Ltd.

                                Amount
   Facilities                  (INR cr)      Ratings
   ----------                  --------      -------
   Long-term Bank Facilities    11.33       'CARE BB+' Assigned
   Short-term Bank Facilities    0.85        'PR4'

Rating Rationale

The above ratings are constrained by small scale of operations,
high client concentration, long working capital cycle resulting in
high cash credit utilization as well as intense competition within
the industry.  However, the ratings draw strength from the long
track record of the company, improvement in financial performance
in H1FY11 and MTPL's potential to cater to several end-user
industries.  Ability of the company to manage its working capital
requirements efficiently, expand into new regions by increasing
the marketing strength and widen its client base are the key
rating sensitivities.

                      About Metcut Toolings

MTPL was started as a proprietary concern in year 1981 by Shri S.
J. Shetty with the aim to provide tooling solutions to Indian
machine tools and automobile industry.  The concern was converted
into a company in 1989 and took the name of ?Preci Metcut Toolings
Pvt.  Ltd., which was further changed to MTPL in the year 2006.
The company received ISO 9001 in the year 2008 for design,
manufacturing and supply of carbide metal cutting tools and
industrial special tools. MTPL has a plant at Karnataka Industrial
Areas Development Board, Rayapur in Dharwad district, Karnataka
with an installed capacity of 40,000 units per annum.  MTPL has
specialized in offering customized solution for carbide cutting
tools as per clients' specifications.


MICROMATIC GRINDING: ICRA Cuts Rating on INR15.44cr Loan to 'LBB-'
------------------------------------------------------------------
ICRA has downgraded the long-term rating outstanding on the
INR15.44 crores term loans and INR4.00 crores fund based limits of
Micromatic Grinding Technologies Limited from 'LBB' to 'LBB-'.
The outlook on the long-term rating is stable.  ICRA has
reaffirmed the 'A4' rating outstanding on the INR5.75 crores non-
fund based limits of MGTL.

The rating revision takes into account the lower than expected
offtake from MGTL's new manufacturing unit in Bangalore, which
coupled with the high depreciation and interest costs of the
new unit resulted in a significant fall in the profitability of
the company in FY 2010.  The economic slowdown in H2 FY09 also
affected the inflow of fresh orders which affected the company's
revenues and profits in FY 2010. Although the volumes have
improved in the current financial year, the high fixed  costs of
the new unit coupled with interest expense owing to debt funded
expansion have resulted in continued losses at the net level  in
9M FY11 as well.  ICRA's rating also factors in the risk emanating
from cyclical trends in the company's core customer group namely
the automobile and auto components industry, and vulnerability of
MGTL's profitability to adverse movement in raw material prices
since most of the contracts are of a fixed price nature.
Nevertheless, the rating continues to derive comfort from the
established presence of MGTL in the manufacture of grinding
machines in India with long standing relationship with prominent
players in the auto industry, MGTL's experienced management and
its successful foreign collaborations which has facilitated inflow
of critical know-how in a highly technology intensive industry.
ICRA also has taken into consideration the synergies derived out
of the alliance of MGTL with three other heavy machinery
manufacturers under the ACE-Micromatic group thereby providing an
established and dedicated selling agent with a pan India presence.
Going forward, the company's ability to stabilize the operations
of the Bangalore unit will be a key sensitivity factor.

                      About Micromatic Grinding

Micromatic Grinding Technologies Ltd operates in the arena of
grinding machines which are used extensively in industries such as
two wheelers, printing, pumps, medical, steel mills and
aerospace for giving final finish to components such as fuel
injections, engine valves, bearings, power trains, cutting tolls
etc. MGTL was set up as Micromatic Machines in 1973 and
subsequently hived off into an independent entity namely Parishudh
Sadhan Yantra Pvt. Ltd in 1982.  Held by promoters who are first
generation entrepreneurs, the company caters to prominent two
wheeler manufacturers such as Hero Honda, Bajaj Auto, Honda
Motors, TVS Motors etc and auto ancillaries such as Bosch, Sona
Koyo, Shriram Piston, Rane etc and has long standing relations
with them. The company faces some extent of import substitution
though it operates in a fairly niche segment where the imports are
in fact much expensive than indigenous machines. The competition
from unorganized player is very limited since the latter are not
able to offer high levels of precision which MGTL promises. The
level of precision is the key success factor since grinding is one
of the most critical activities in the value chain of auto
manufacture. MGTL currently operates three units, two in
Ghaziabad, Uttar Pradesh and one in Bangalore, Karnataka. The
Bangalore unit commenced operations in October 2008.


MJ LOGISTICS: Fitch Affirms National Long-Term Rating at 'B+(ind)'
------------------------------------------------------------------
Fitch Ratings affirmed India's MJ Logistics Services Limited's
National Long-term rating at 'B+(ind)'.  The Outlook is Stable.
The agency has also affirmed the rating on MJLSL's INR389.6m bank
term loan limits at 'B+(ind)'.

MJLSL showed improved utilisation levels in FY10, leading to an
increase in revenues from its Palwal warehouse; however, the
company's financial performance was lower than expected on account
of the deferment of the commissioning of the warehouse facilities
at Punjab and Uttrakhand.  The ratings are further constrained by
MJLSL's strong dependence on a single client for its fully owned
warehouse at Palwal.  The ratings however draw comfort from the
company's existing relationships with its clients and good quality
facilities available at the warehouse.

MJLSL reported a revenue growth of around 16% in FY10, clocking
INR126m of revenues against INR109m in FY09. However, it continued
to report operating EBITDA losses due to increased operational
costs. The total debt of the company stood at INR394 m at FY10.

The ratings downgrade could result from lower-than-expected
profitability and any debt-led capex, leading to significantly
high net leverage on a sustained basis.  On the other hand,
improved operational efficiency, which would lead to improved
profitability, resulting in lowering down of net financial
leverage on a sustained basis, would be positive for the ratings.

Incorporated in 2005 as a limited company, MJLSL is engaged in
third party logistics with service offerings spanning across
transportation, warehousing and distribution to various clients.
It also facilitates the movement of raw materials from suppliers
to manufacturers, and finished products from manufacturers to
distributors and retailers.  The company also manages around
500,000 sq ft of leased warehousing space at different locations.


NAVRATNA SG: ICRA Reaffirms 'LBB+' Rating on INR61cr Bank Limits
----------------------------------------------------------------
ICRA has re-affirmed the long-term rating of 'LBB+' assigned to
the INR61 crore fund based limits of Navratna SG Highway
Properties Private Limited.  The long term rating has been
assigned a stable outlook.

The rating reaffirmation factors in NPPL's improving operating
profitability levels aided by stable occupancy levels and a strong
mix of brands at the Gulmohar Park mall, management's conscious
decision to improve the net profitability by refinancing high-cost
debt by lower-cost loans and the progress made towards the same,
the continuing focus on mall management which acts as a key
differentiator compared to competing malls in the vicinity, the
presence of experienced promoters as key stakeholders and the
attractive location of the property in Ahmedabad.

The rating is however, constrained by the significant proportion
of pure revenue share arrangements with retailers which could
present a risk to the developer in the initial stages of mall
operations and the weak sales data recorded by a few retailers on
pure revenue sharing basis at  the property, NPPL's exposure to
vacancy and rent re-negotiation risks considering the large
proportion of the total leasable area at the property for which
the lease tenures and lock-in periods are scheduled to expire in
FY 12 and market risk factors considering the high vacancy levels
for malls in Ahmedabad in general and the anticipated upcoming
retail supply in the vicinity of the Gulmohar Park mall.

                         About Navratna SG

NPPL is a Joint Venture between Kshitij Venture Capital Fund and
Navratna Organizers and Developers Pvt. Ltd. whose shareholdings
in the company are 90% and 10% respectively. NPPL owns and
operates the Gulmohar Park Mall at Sarkhej-Gandhinagar Highway,
Ahmedabad.

The Gulmohar Park mall is located on the Sarkhej-Gandhinagar
Highway at Satellite Road in Ahmedabad, -17-19 km. from the
airport and ~11-12 km. from the railway station.  The total
leasable area of the mall is 2,22,050 sqft.  The property is a
standalone mall which is being operated on a 100% lease model.
Construction of the mall began in June 2006 and the mall commenced
operations in October '08.


OSL PRESTIGE: ICRA Assigns 'LBB' Rating to INR6cr Term Loan
-----------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR6 crore term loan and
the INR4 crore fund based working capital facility of OSL Prestige
Private Limited.  The outlook on the rating is stable.

The rating reflects the status of OPPL as a part of the OSL group,
with interests in diversified businesses, demonstrated financial
support from the promoters in the form of equity and unsecured
loans, the favorable outlook for the automobile industry in India
in the near to medium term, position of the company as the only
BMW car dealer in Eastern India. The rating also factors in the
limited history of operations of the company, low sales volume of
cars and the unfavorable financial risk profile of the company
characterized by nominal profits, high gearing and depressed debt
coverage indicators. Such risks are however partially mitigated by
the experience of the promoters in the automobile dealership
business.

                          About OSL Prestige

OPPL began operations in 2007 as the sole dealer of BMW cars in
Eastern India. Its territory includes West Bengal, Orissa,
Jharkhand, Bihar and the North East. Currently, the company owns a
showroom and workshop in Kolkata and an outlet in Bhubaneswar. The
company is a part of the Cuttack based OSL group with interests in
stevedoring, port handling, charter services, auto dealerships,
and contract mining.

Recent Results

The company posted a profit after tax (PAT) of INR0.47 crore on an
OI of INR53.63 crore during 2009-10. In 2008-09, the company had
posted a PAT of INR0.38 crore on an OI of INR41.84.


PRASUNA VAMSIKRISHNA: ICRA Reaffirms 'LBB' Rating on Term Loan
--------------------------------------------------------------
ICRA has reaffirmed the 'LBB' rating to the INR29.02 crore term
loan facilities and the INR12.95 crore fund based facilities of
Prasuna Vamsikrishna Spinning Mills Private Limited.  The outlook
on the long-term rating is stable.  A short-term fund based
facility of INR1.95 crore, which had rating outstanding of 'A4'),
has been converted into a long-term fund based facility.
Accordingly, the said facility has been rated on the long-term
scale.

The rating considers the experience of the promoters in cotton
trading / ginning, and the relatively low power costs in Andhra
Pradesh compared to mills in the neighboring state of Tamil Nadu.
The rating reflects PVSMPL's small scale of operations, the
intense competition in a fragmented industry and vulnerability of
the textile industry to competition from low-cost countries. The
rating also considers the high gearing and stretched coverage
indicators.

PVSMPL, incorporated in February 2004, is engaged in producing
cotton yarn in counts of 40s to 99s, with primary focus on the 60s
to 79s range. Based in Guntur (Andhra Pradesh), the Company
commenced commercial production in November 2005 with a capacity
of 12,000 spindles and enhanced it to 24,000 spindles in
December 2006.  The Company derived over 94% of revenues from the
domestic market in 2009-10.  The promoters (Mr. Kalahasthi
Haribabu and Mr. P Srinivas) and their relatives hold the entire
share capital of the Company.


R K STEEL: CRISIL Assigns 'BB' Rating to INR122.5MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'BB/Stable/P4+' rating to the bank
facilities of R K Steel Udyog Pvt Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR122.50 Million Cash Credit        BB/Stable (Assigned)
   INR.25.00 Million Bill Discounting   P4+ (Assigned)
   INR15.00 Million Letter of Credit    P4+ (Assigned)

The rating reflects RK Steel's below-average financial risk
profile, marked by a high gearing and weak debt protection
measures, and exposure to risks related to the volatility in steel
prices and to intense competition in the steel trading business.
The impact of these weaknesses is mitigated by the extensive
experience of RK Steel's promoters in the steel trading segment.

Outlook: Stable

CRISIL believes that RK Steel will continue to benefit from its
established track record in the steel trading business over the
medium term.  The outlook may be revised to 'Positive' if RK's
capital structure, scale of operations and profitability improve
significantly, thereby improving the financial risk profile.
Conversely, the outlook may be revised to 'Negative' if RK Steel's
financial risk profile weakens further because of significant
decline in sales, lower-than-expected cash accruals, or large
debt-funded capital expenditure.

                         About R K Steel

Set up in 1982 as a partnership concern, RK Steel was
reconstituted as a private limited company in 2004.  The company,
which is promoted by Mr. Ranjith Kumar Surana and his family,
trades in various steel products such as thermo mechanically
treated (TMT) bars, channels, angles, I-beams, billets, squares,
blooms, and rounds.  Nearly 90% of the company's revenues are from
the sale of TMT bars, and 10% from the sale of other steel
products. RK Steel primarily sells to the clients engaged in
construction and infrastructure segment.

RK Steel reported a profit after tax (PAT) of INR6.0 million on
net sales of INR1.1 billion for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR6 million on net sales
of INR1.2 billion for 2008-09.


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


RESONA HOLDINGS: To Raise Up to JPY544.7BB Via New Share Offering
-----------------------------------------------------------------
Atsuko Fukase at The Wall Street Journal reports that Resona
Holdings Inc. on Monday set a price of JPY440 (US$5.33) per share
for its planned public offering later this month and said it hopes
to raise up to JPY544.7 billion, or about US$6.6 billion, as it
strives to repay a government bailout.

The price represents a 5.8% discount to Monday's closing share
price of JPY467 on the Tokyo Stock Exchange, the Journal says.

The Journal relates that Resona will issue about 1.24 billion
common shares, including a 63-million-share overallotment
arrangement in case of exceptional demand.  Of the shares to be
issued, 479 million will be sold to overseas investors.  The
payment for the offering is due Jan. 31.

The Journal notes that the issuance is the Japanese bank's first
public share offering since it was effectively nationalized in
2003.  According to the Journal, Resona was one of many banks that
turned to the government for a bailout in the late 1990s and early
2000s as they struggled under a mountain of bad loans.  It
received about JPY3.1 trillion in public funds, including loans to
its predecessor banks in 1998 and 1999, the Journal discloses.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 9, 2010, Bloomberg News said Resona Holdings Inc. plans to
repay as much as JPY900 billion of government bailout funds using
proceeds from a share sale and internal reserves.  The Tokyo-based
bank on November 5, 2010, registered to sell as much as JPY600
billion of common stock over the next year.  It plans to use
money from the sale, plus JPY300 billion of reserves, to buy back
preferred stock from the government and retire the shares to avoid
potential dilution, Bloomberg noted.  The bank, the second-worst
performer on the Topix Banks Index last year, is under pressure to
repay a 2003 bailout to regain independence and compete with its
bigger rivals, according to Bloomberg.

                       About Resona Holdings

Japan-based Resona Holdings Inc. -- http://www.resona-gr.co.jp/--
is a holding company.  Through its subsidiaries and associated
companies, the company is engaged in general banking, trust
operation, credit card and financial services.  The company is
comprised of 15 domestic subsidiaries and 21 overseas
subsidiaries, as well as two associated companies.  It has
operations in Japan, the United Kingdom, Indonesia, Thailand and
the Cayman Islands.


* S&P Raises Ratings on Six Japanese Synthetic CDO Transactions
---------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on six
tranches relating to six Japanese synthetic CDO transactions, and
at the same time removed the ratings from CreditWatch with
positive implications.

The rating actions are part of S&P's regular monthly review of
synthetic CDOs whose ratings have been placed on CreditWatch with
positive or negative implications.  These actions incorporate,
among other things, the effect of rating migration within
reference portfolios.

Ratings List
Corsair (Jersey) No. 2 Ltd.
Series 45 credit default swap
To            From                 Issue Amount
B+srp (sf)    Bsrp (sf)/Watch Pos  JPY3.0 bil.

Signum Vanguard Ltd.
Class A secured fixed rate credit-linked loan series 2005-04
To            From                 Issue Amount
CCC+ (sf)     CCC (sf)/Watch Pos   JPY4.0 bil.

Silk Road Plus PLC
Series 13 limited recourse secured fixed rate credit-linked notes
To            From                 Issue Amount
BBB (sf)      BBB- (sf)/Watch Pos  S$8.064 mil.

Series 14 limited recourse secured fixed rate credit-linked notes
To            From                 Issue Amount
BBB (sf)      BBB- (sf)/Watch Pos  S$8.5 mil.

Series 15 limited recourse secured fixed-rate credit-linked notes
To            From                 Issue Amount
BBB (sf)      BBB- (sf)/Watch Pos  S$8.0 mil.

Series 16 limited recourse secured fixed-rate credit-linked notes
To            From                 Issue Amount
BBB (sf)      BBB- (sf)/Watch Pos  S$9.0 mil.


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


KOREA LINE: Files for Receivership
----------------------------------
Kyunghee Park at Bloomberg News reports that Korea Line Corp.
filed for receivership after rates tumbled to the lowest in almost
two years because of a global oversupply of vessels.  The filing
was made at the Seoul Central District Court yesterday,
January 25, 2011, the company said in a regulatory statement
obtained by the news agency.

Bloomberg notes that the shipping line, unprofitable in six of the
past seven quarters, halted its shares as it works to restructure
debt.  Bloomberg relates that dry-bulk rates have plunged 58% in
the past year amid an expanding global fleet and slowing demand
for commodities in China because of government efforts to cool
economic growth.

According to Bloomberg, the Baltic Dry Index, a measure of rates
for vessels used to ship iron ore, coal and other commodities,
fell 1.8% on January 24, 2011, to 1,345, the lowest since
February 4, 2009.

The company had total debts of KRW2.23 trillion (US$2 billion) at
the end of September, according to its third-quarter financial
statement, Bloomberg says.  The shipping line made a KRW104.2
billion loss in the quarter, the statement added.

Headquartered in South Korea, Korea Line Corp. is an operator of
dry-bulk ships.  Korea Line operated 51 vessels at the end of
September.  It ships iron ore, coal and liquefied-natural gas for
customers including Posco, Korea Electric Power Corp. and Korea
Gas Corp., according to its Web site.


SAMHWA MUTUAL: Woori, Two Other Banks Likely to Bid For Samhwa
--------------------------------------------------------------
Yonhap News Agency reports that South Korea's three financial
services companies including industry leader Woori Finance
Holdings Co. are expected to submit letters of intent to buy
Samhwa Mutual Savings Bank.

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 17, 2011, Yonhap said the Financial Services Commission
suspended Samhwa Mutual's operations for six months for failing to
meet regulatory capital requirements.

Yonhap, citing sources, says Woori Finance, Shinhan Financial
Group Co. and Hana Financial Group Inc. were expected to express
their intent to bid for the embattled savings bank on Tuesday.

No. 2 financial services company KB Financial Group is not
expected to join in the preliminary bidding as its head has
repeatedly put priority on improving its slackening profitability
and efficiency, Yonhap notes.

Yonhap reports that the government is seeking to select a
preferred bidder for the savings bank after it opens a bidding
race in mid-February.

According to Yonhap, the move is part of the government's drive to
overhaul the troubled savings bank industry, which is struggling
with a pile-up of rising bad loans stemming from sour construction
project-related lending.

Samhwa Mutual Savings Bank is a savings bank based in Seoul.


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


NEW WAVE SURFWEAR: "Hopelessly Insolvent," Receivers' Report Says
-----------------------------------------------------------------
Rebecca Stevenson at BusinessDay.co.nz reports that New Wave
Surfwear receivers said the company was "hopelessly insolvent" and
failed to pay PAYE for over a year or GST for seven months before
it went broke.

Receiver Stephen Teitjens said the company went under in July last
year and owed about NZ$715,000 to creditors.  South Canterbury
Finance, now in statutory management, was owed NZ$137,390 and
Inland Revenue NZ$258,000 including more than NZ$100,000 in
penalties.

BusinessDay.co.nz relates that Kiwi clothing brands Federation and
Huffer, which were stocked in New Wave's retail outlets, were
unsecured creditors.  These creditors are owed NZ$283,215 in total
but it's unlikely they will see any money, BusinessDay.co.nz
notes.

BusinessDay.co.nz says Mr. Teitjens' final report released last
week said the company's books were in a poor state of affairs.

Mr. Teitjens said that in his view, it was apparent the company
had been trading while insolvent for some time prior to July,
according to BusinessDay.co.nz.

According to BusinessDay.co.nz, New Wave was liquidated by Inland
Revenue in November last year over NZ$281,447.71 in unpaid GST,
PAYE, income tax, Kiwisaver employee contributions and student
loan deductions.

Mr. Teitjens, as cited by BusinessDay.co.nz, said New Wave's
owners, husband and wife Andrew and Rebecca Kinsella, were young
and inexperienced and had relied on external advice from family
members -- including Rebecca Kinsella's father -- accountant Nigel
O'Leary.

BusinessDay.co.nz relates that Mr. O'Leary was an owner and
director of collapsed finance company Rockforte Finance and failed
women's clothing retailer Jean Jones.

The Kinsellas reportedly purchased New Wave -- formerly part of
the Jean Jones group of companies -- for $770,000 in 2008,
BusinessDay.co.nz adds.

BusinessDay.co.nz notes that New Wave's first liquidator's report
said neither Kinsella had offered any information about the
company's failure.

New Wave shares the same liquidator, Indepth Forensic, as
Rockforte Finance.

New Wave Surfwear is a Gisborne, New Zealand-based surfwear
retailer.  The company had stores in Gisborne, Palmerston North,
Auckland and New Plymouth.


SAMOAN METHODIST: IRD Chases Church for NZ$1.2 Mil. Tax Bill
------------------------------------------------------------
Jimmy Ellingham at the Manawatu Standard reports that the Inland
Revenue is taking Samoan Methodist Church to court, chasing a
NZ$1.2 million tax bill.

However, the report says, the Levin church at the centre of the
claim said it is simply an honest mistake it hopes can be resolved
out of court.

According to the Manawatu Standard, the IRD has filed to put the
Samoan Methodist Church into liquidation over about NZ$730,000
unpaid PAYE and NZ$500,000 in outstanding GST -- a total of
NZ$1,232,118.15, including interest and penalties.

Due to be heard at the High Court at Palmerston North on
February 3, a claim was filed against Samoan Methodist Churches of
Samoa (Levin Parish) in New Zealand late last year, the Manawatu
Standard notes.

The church's vicar, the Rev Kini Ulu-Kini told the Manawatu
Standard the unpaid tax came from money paid to the church by the
owner of a farm, where members of the congregation worked picking
produce.  It was easier for the farm to write out one cheque and
for the church to distribute money to the workers, he said.

A donation to the church was taken before the money was passed on
to members, some of whom were on visitor's visas, so should not
have been employed. The church was not contracted to the firm,
whose name he said he could not remember.

The Manawatu Standard relates Mr. Ulu-Kini thought the IRD should
chase the firm for the unpaid tax.

Mr. Ulu-Kini told the Manawatu Standard that the church's lawyers
and accountants were trying to sort the matter out before it got
to court.

The church is not part of The Methodist Church of New Zealand
grouping, which is administered in Christchurch.  Since June 30,
2008, Levin's Samoan Methodist Church has been registered as a
charity with the Charities Commission.


SOUTH CANTERBURY: Hubbard Reveals Secret U.S.-based Bidder for SCF
------------------------------------------------------------------
Fran O'Sullivan at The New Zealand Herald reports that former
South Canterbury Finance chairman Allan Hubbard wants the
Government to front up to the public about a bid it received from
a New York-based investment fund, which he claims would have
reduced taxpayer liability for the failed finance firm to
NZ$400 million.

The Herald says the Government placed South Canterbury Finance in
receivership on August 31 last year, costing taxpayers close to
NZ$1.9 billion to pay out the firm's debenture holders and
depositors -- a figure which will be substantially reduced as the
firm's assets are sold.

According to the Herald, Primavera Capital Group -- which is said
to be the investing arm of a private trust with links to European
royalty -- was disclosed as the mystery bidder in a letter Mr.
Hubbard sent to Commerce Minister Simon Power on January 20.

In the letter, says the Herald, Mr. Hubbard reveals he assisted
Primavera to submit a bid to acquire all of South Canterbury
Finance, including its associated companies Dairy Holdings, Scales
Corporation and Helicopters NZ.

The Herald relates that Mr. Hubbard said the bid would have been
made via Southbury Corporation and would have allowed for SCF's
preference shareholders to be included in the offer as well as
Aorangi Securities, which was subject to statutory management by
that time.

The Herald notes that Mr. Hubbard sent a copy of Primavera's
proposal to Mr. Power.  He said the offer would have required the
Crown to contribute NZ$400 million but Primavera would have
assumed responsibility for the debentures and the deposits that
the Crown had guaranteed, the Herald adds.  Full settlement was to
take place before September 30, 2010.

The Herald said Primavera had offered to introduce $300 million
new equity.  There would have been a NZ$700 million guarantee back
to the Crown.  The upshot is the Crown's total liability would
have been reduced to NZ$400 million assuming the finance firm had
managed to flourish as a going concern.

But Finance Minister Bill English made clear that he was not
prepared to entertain any bid which would have resulted in
downside risk for the Government, the Herald notes.

Mr. Hubbard, as cited by the Herald, said "for some reason" the
Crown rejected the offer, choosing to instead accept
responsibility for repaying SCF's debentures and deposits of
around NZ$1.9 billion and placed it in receivership.

The Herald says Mr. Hubbard wrote that while it is "probably too
early to evaluate the residual cost of these actions to the
Crown", his own calculation, after allowing for receivership costs
and the sale of the firm's assets, was likely to produce at most
NZ$900 million with an ultimate loss of up to NZ$1 billion against
the NZ$400 million, if the Primavera offer had been accepted.

                       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.


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


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

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
  AMERICAN BANKRUPTCY INSTITUTE
     Valcon
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 4, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Bankruptcy Battleground West
        Hyatt Regency Century Plaza, Los Angeles, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

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

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.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 17-19, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Byrne Judicial Clerkship Institute
        Pepperdine University School of Law, Malibu, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     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 U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Psyche A. Castillon, Julie Anne G.
Lopez, Ivy B. Magdadaro, Frauline S. Abangan, and Peter A.
Chapman, Editors.

Copyright 2011.  All rights reserved.  ISSN: 1520-9482.

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

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





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