TCRAP_Public/120223.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Thursday, February 23, 2012, Vol. 15, No. 39

                            Headlines


A U S T R A L I A

CROSS CITY TUNNEL: In the Brink of Receivership for Second Time
DIRECT FACTORY: Justice Allows Texxcon to Sue DFO Former Owners
* AUSTRALIA: Small Business Collapses Rise 48% in 2011


C H I N A

COASTAL GREENLAND: S&P Lowers Corporate Credit Rating to 'CCC+'


H O N G  K O N G

CHUNG-PAO RESIN: Creditors' Meeting Set for Feb. 27
EAST YIELD: Members' Final Meeting Set for March 20
EDEN TECHNOLOGY: Commences Wind-Up Proceedings
GOLDEN LUCK: Members' Final Meeting Set for March 19
GOLDWAY INTERNATIONAL: Mak Kwok Fai Appointed as Liquidator

GRAND MARINE: Members' and Creditors Meetings Set for March 1
JADE SIGNET: Creditors' Proofs of Debt Due March 5
MAINSTAR ELECTRICAL: Annual Meetings Set for March 22
N.F.K. CATERING: Commences Wind-Up Proceedings
ROLLING DEVELOPMENT: Members' Final Meeting Set for March 20

STRATEGIC EUROPEAN: Members' Final Meeting Set for March 19
SUNGLORY GARDEN: Members' Final Meeting Set for March 23


I N D I A

ANNAI J.K.K.: Delay in Debt Repayment Cues CRISIL Junk Ratings
APEX EXPORTS: CRISIL Upgrades LT Rating on INR318MM Loan to 'B+'
ATLAS ALLOY: CRISIL Assigns 'B' LT Rating to INR124.7MM Loan
BSCC INFRASTRUCTURE: CRISIL Assigns B- LT Rating on INR120MM Loan
CTS INDUSTRIES: Delay in Debt Repayment Cues CRISIL Junk Ratings

G.K. SALES: CRISIL Rates INR70MM Long-Term Loan at 'CRISIL B+'
G S M INDUSTRIES: CRISIL Assigns 'BB' LT Rating on INR100MM Loan
JOREHAUT TEA: CRISIL Raises Rating on INR150MM Loan to 'BB'
KINGFISHER AIRLINES: Lenders Yet to Agree on Extending Loans
LANCO ANPARA: CRISIL Cuts LT Rating on INR54,968MM Loan to 'BB+'

MEGAFLEX PLASTICS: CRISIL Reaffirms 'BB-' LT Rating on INR120MM
PASARI MULTIPROJECTS: CRISIL Rates INR320MM Loan at 'CRISIL B'
SALORAA FABS: CRISIL Assigns 'CRISIL B' Long-Term Rating
SHREE GAJANAN: Delay in Debt Payment Cues CRISIL Junk Ratings
TRUPTI AUTOMOTIVES: CRISIL Rates INR86MM Loan at 'CRISIL BB-'


I N D O N E S I A

MANDALA AIRLINES: To Resume Operations in April


J A P A N

MAZDA MOTOR: To Raise Up to JPY100 Billion in Share Issue, Loans
TOKYO ELECTRIC: S&P Keeps 'B+/B' Corp. Credit Ratings on Watch


N E W  Z E A L A N D

BRIDGECORP LTD: Petricevic Claims No Knowledge of Missed Payments
CRAFAR FARMS: Fay-Led Bidder Files Court of Appeal Action


P H I L I P P I N E S

EASTMAN KODAK: Business as Usual for Asian Units


                            - - - - -


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


CROSS CITY TUNNEL: In the Brink of Receivership for Second Time
---------------------------------------------------------------
m.smh.com.au reports that Sydney's Cross City Tunnel could soon
enter receivership for the second time, due to a dispute between
its owners and the state government about stamp duty.

The Office of State Revenue has given the owners of the motorway
until the end of the month to pay a reported AU$60 million bill,
according to m.smh.com.au.  The report notes that the bill
relates to the AU$700 million price the owners of the motorway --
Royal Bank of Scotland, Eiser Infrastructure Partners and
Leighton Holdings -- paid when they bought the roadway out of
receivership in 2007.

The dispute, and the possible repeat failure of the tunnel,
underlines the state's chequered history with public private
partnerships, the report notes.

m.smh.com.au discloses that the government said it would offer a
AU$175 million lifeline to the Reliance Rail PPP to ensure the
delivery of 78 Waratah trains for CityRail.

The Cross City Tunnel's outstanding stamp duty bill is worth
AU$60 million, The Australian Financial Review reported.  Rather
than pay the bill, putting the asset into receivership would help
protect its owners, m.smh.com.au relays, according to the report.

They would be paid before the Office of State Revenue, which
would be listed as an unsecured creditor, m.smh.com.au adds.


DIRECT FACTORY: Justice Allows Texxcon to Sue DFO Former Owners
---------------------------------------------------------------
SmartCompany reports that the controversy over troubled shopping
centre group DFO (Direct Factory Outlet) continues, after a
Victorian Supreme Court justice on Tuesday decided business
partners of the company's two former owners David Goldberger and
David Wieland could launch a legal case against them.

SmartCompany relates that the decision comes after months of
complicated legal battles and financial tussles over the
business, which has resulted in a number of court cases and has
even involved the former chairman of the Australian Competition
and Consumer Commission, Graeme Samuel.

According to the report, Supreme Court Justice Jennifer Davies
ruled that the business partners of David Wieland and David
Goldberger could launch a legal case against the two
millionaires.

The case revolves around a AUD14 million emergency line of credit
used by DFO developer Austexx to construct the company's South
Wharf facility, the report relays.

The two Davids were former directors of Austexx, the report
notes. The case is brought against them by Texxcon, a subsidiary
of Melbourne-based construction and engineering firm Contexx.

Texxcon said Austexx borrowed AUD14 million from a joint venture
company called Nominexx.  That funding was to be used after a
separate funding line had been dried up, the report notes.

However, Texxcon claims this loan was not repaid, and that
Austexx has engaged in misleading and deceptive conduct, says
SmartCompany.

While both Davids and DFO manager Geoff Porz were able to stop
Nominexx from suing the company -- due to their presence on the
board -- Justice Davies has given Texxcon representatives
permission to sue, according to SmartCompany.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 20, 2010, the Business Spectator said Direct Factory Outlet
was granted a bank bailout after its owner, Austexx Pty Ltd,
struck an agreement with lenders, which is likely to see the firm
avoid being placed in receivership.  Business Spectator related
that a banking syndicate including Suncorp-Metway Ltd., National
Australia Bank Ltd., St George Bank and Royal Bank of Scotland
owed AUD450 million have agreed to extend a line of credit to DFO
to ensure it can complete the construction of its unfinished
South Wharf retail development.

In September 2010, the company struck a deal to sell four DFO
outlets and a 50% stake in the South Wharf project to CFS Retail
for AUD498 million.

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


* AUSTRALIA: Small Business Collapses Rise 48% in 2011
------------------------------------------------------
SmartCompany reports that credit agency Dun & Bradstreet said
that the number of small business collapses soared through 2011
and this year could be another tough one as poor sentiment
outside of the mining sector and tightened credit conditions take
their toll.

D&B's analysis of business start-ups and failures -- based on
their own numbers and those of the corporate regulator -- found
that the number of small businesses going under lifted by 48% in
2011, although conditions picked up in the December quarter,
according to SmartCompany.

D&B said this compares with a 42% increase in insolvencies
nationwide across the year, SmartCompany relays.

SmartCompany relates that D&B said for the three months to
Dec. 31, 2011, there were 2,736 failures, down from 3,049 the
previous quarter.  This compares with 1,925 business failures in
the December 2010 quarter, D&B said.

The report follows figures from the Australian Securities and
Investments Commission showing that 2011 had been the worst year
ever for insolvency appointments, with corporate insolvencies up
9.2% to 10,481, SmartCompany adds.


=========
C H I N A
=========


COASTAL GREENLAND: S&P Lowers Corporate Credit Rating to 'CCC+'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on China-based property developer Coastal
Greenland Ltd. to 'CCC+' from 'B-'. The outlook is negative. "We
also lowered the Greater China credit scale rating on the company
to 'cnCCC+' from 'cnB-'. At the same time, we lowered the ratings
on the company's $150 million senior unsecured notes to 'CCC'
from 'CCC+' and the Greater China credit scale rating on the
notes to 'cnCCC' from 'cnCCC+'," S&P said.

"We downgraded Coastal Greenland to reflect our view that
refinancing risks for the company have increased since we lowered
the corporate credit rating in August 2011," said Standard &
Poor's credit analyst Frank Lu. "Coastal Greenland's property
sales are likely to remain weak in 2012, in our view, and the
company appears to have limited options to refinance its debt
maturing in the next six to 12 months."

"In our view, visibility is low over the prospects for the
company's asset sales, and the timing of proceeds is uncertain.
Further, the equity and offshore debt markets are effectively
shut for financially weak speculative-grade-rated issuers, such
as Coastal Greenland. Trust companies have become increasingly
selective in rolling over trust loans; they also charge steep
costs and have restrictive terms for extending loans. Coastal
Greenland's progress regarding the rollover of a $50 million
investment in its senior unsecured notes by its second-largest
shareholder, Shenzhen Investment Ltd., is still uncertain," S&P
said.

"About 82% of Coastal Greenland's total debt of Chinese renminbi
(RMB) 5.20 billion is due in 2012. This includes US$132 million
(about RMB0.83 billion) in senior unsecured notes due in
November, four onshore trust loans totaling RMB1.64 billion that
mature between May 2011 and December 2012, and RMB1.80 billion in
bank borrowings," S&P said.

"We expect Coastal Greenland's property sales to remain weak in
2012 due to the deepening correction in China's real estate
market. The company has a limited number of projects, and most of
these are affected by the government's purchase-restriction
policy. Its total contract sales between April 2011 and December
2011 fell about 70% to HK$2.1 billion from the same period a year
earlier. We believe the likelihood is slim that Coastal Greenland
can achieve its HK$3 billion budget for property sales for the
fiscal year ending March 31, 2012. The company's property sales
target for the fiscal year is sharply lower than the HK$4.6
billion sales it achieved in fiscal 2011," S&P said.

"The negative outlook reflects our view that Coastal Greenland
may have difficulties in refinancing its maturating debts that
will come due in the next six to 12 months. This is reflected in
our assessment that the company's liquidity is weak for the next
12 months and the visibility of asset sales is limited in a
depressed market," said Mr. Lu.

"We could lower the ratings if Coastal Greenland does not have a
concrete financing plan in the next three months to meet its debt
maturities, or if its liquidity deteriorates further. Conversely,
we could revise the outlook to stable or upgrade Coastal
Greenland if the company secures major refinancing, or its
liquidity materially improves due to asset or property sales,"
S&P said.


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


CHUNG-PAO RESIN: Creditors' Meeting Set for Feb. 27
---------------------------------------------------
Creditors of Chung-Pao Resin Chemical Co Limited will hold their
meeting on Feb. 27, 2012, at 11:00 a.m., for the purposes
provided for in Sections 241, 242, 243, 244, 251 and 255A of the
Companies Ordinance.

The meeting will be held at Unit 102, 1st Floor, Hong Kong Trade
Centre, at 161-167 Des Voeux Road Central, in Hong Kong.


EAST YIELD: Members' Final Meeting Set for March 20
---------------------------------------------------
Members of East Yield International Limited will hold their final
general meeting on March 20, 2012, at 10:00 a.m., at Baimao
Industrial Development Zone in Changshu City, Jiangsu, in China.

At the meeting, Ying Zhiyao, Tang Mingliang and Ying Li, the
company's liquidators, will give a report on the company's wind-
up proceedings and property disposal.


EDEN TECHNOLOGY: Commences Wind-Up Proceedings
----------------------------------------------
Members of Eden Technology (H.K.) Limited, on Feb. 10, 2012,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Ho Mei Wah May
         Room 2303, 23/F
         The Centre Mark
         287-299 Queen's Road
         Central, Hong Kong


GOLDEN LUCK: Members' Final Meeting Set for March 19
----------------------------------------------------
Members of Golden Luck Pacific Limited will hold their final
general meeting on March 19, 2012, at 11:00 a.m., at Room 1205,
12/F, Manulife Provident Funds Place, No. 345 Nathan Road, in
Kowloon.

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


GOLDWAY INTERNATIONAL: Mak Kwok Fai Appointed as Liquidator
-----------------------------------------------------------
Mak Kwok Fai on Feb. 17, 2012, was appointed as liquidator of
Goldway International Limited.

The liquidator may be reached at:

          Mak Kwok Fai
          Room 1205, 12/F
          Manulife Provident Funds Place
          No. 345 Nathan Road
          Kowloon, Hong Kong


GRAND MARINE: Members' and Creditors Meetings Set for March 1
-------------------------------------------------------------
Members and creditors of Grand Marine Holdings Limited will hold
Separate meetings on March 1, 2012, at 2:30 p.m., and 2:45 p.m.,
respectively at Room 32B1, 32nd Floor, One Pacific Place, at 88
Queensway, in Hong Kong.

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


JADE SIGNET: Creditors' Proofs of Debt Due March 5
--------------------------------------------------
Creditors of Jade Signet International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by March 5, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on Feb. 9, 2012.

The company's liquidator is:

         Ngan Lin Chun Esther
         1902 MassMutual Tower
         38 Gloucester Road
         Wanchai, Hong Kong


MAINSTAR ELECTRICAL: Annual Meetings Set for March 22
-----------------------------------------------------
Creditors and members of Mainstar Electrical Company Limited will
hold their annual meetings on March 22, 2012, at 11:00 a.m., and
11:30 a.m., respectively at Room 203 of Duke of Windsor Social
Service Building located at 15 Hennessy Road, Wanchai, in Hong
Kong.

At the meeting, Yuen Tsz Chun Frank, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


N.F.K. CATERING: Commences Wind-Up Proceedings
----------------------------------------------
Members of N.F.K. Catering Limited, on Feb. 9, 2012, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidator is:

         Ng Oi Che
         Room 206, 2nd Floor
         Alliance Building
         130-136 Connaught Road
         Central, Hong Kong


ROLLING DEVELOPMENT: Members' Final Meeting Set for March 20
------------------------------------------------------------
Sole Member of Rolling Development Limited will hold their final
general meeting on March 20, 2012, at 10:00 a.m., at Flat D,
6/F., Beverly Court, at 2C Shiu Fai Terrace, Wanchai, in Hong
Kong.

At the meeting, Lui Ngok Che, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


STRATEGIC EUROPEAN: Members' Final Meeting Set for March 19
-----------------------------------------------------------
Members of Strategic European Center for Investment and
Industrial Development Limited will hold their final general
meeting on March 19, 2012, at 11:00 a.m., at Unit 1301, 13/F,
Chung Nam Building, at 1 Lockhart Road, Wanchai, in Hong Kong.

At the meeting, Andrew George Hung, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


SUNGLORY GARDEN: Members' Final Meeting Set for March 23
---------------------------------------------------------
Members of Sunglory Garden Limited will hold their final meeting
on March 23, 2012, at 10:00 a.m., at Unit 501, 5/F, Mirror Tower,
a 61 Mody Road, Tsimshatsui East, Kowloon, in Hong Kong.

At the meeting, Tong Lap Hong, the company's liquidator, will
give a report on the company's wind-up proceedings and property
disposal.


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I N D I A
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ANNAI J.K.K.: Delay in Debt Repayment Cues CRISIL Junk Ratings
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D/CRISIL D' ratings to the bank
facilities of Annai J.K.K. Sampoorani Ammal Charitable Trust.

   Facilities              Ratings
   ----------              -------
   Long-Term Rating        CRISIL D (Assigned)
   Short-Term Rating       CRISIL D (Assigned)

   Total Bank Loan Facilities Rated: INR171.4 Million

The ratings reflect instances of delay by ACT in servicing its
debt; the delays have been caused by the trust's weak liquidity.

ACT also had weak enrolments in its engineering courses during
2011-12 (refers to academic year, July 1 to June 30) on account
of intensifying competition from increasing number of engineering
colleges in Tamil Nadu. The trust is also susceptible to any
adverse regulatory changes in the educational sector. However,
ACT benefits from the extensive industry experience its promoters
and the healthy demand prospects for the education industry.

Established in 1972, ACT operates various educational institutes
across diverse disciplines, such as pharmacy, engineering,
teachers training, higher and secondary schooling. Currently, the
trust operates a total of about 13 institutions, including a
hospital. ACT was established by Dr. K K Muniraja and his wife,
Ms. Vasanta Kumari. Of the trust's institutes, four (College of
Nursing, Pharmacy College, College of Technology and Polytechnic
College) collectively contribute more than 85 per cent of the
trust's total revenues.

ACT reported a surplus of INR34.6 million on an operating income
of INR185.8 million for 2010-11 (refers to financial year,
April 1 to March 31), against a surplus of INR41.3 million on an
operating income of INR163.8 million for 2009-10.


APEX EXPORTS: CRISIL Upgrades LT Rating on INR318MM Loan to 'B+'
----------------------------------------------------------------
CRISIL has upgraded its rating on Apex Exports' long-term bank
facilities to 'CRISIL B+/Stable' from 'CRISIL B/Stable' and
reaffirmed its rating on Apex's short-term facilities at 'CRISIL
A4'.

   Facilities               Ratings
   ----------               -------
   Long-Term Rating         CRISIL B+/Stable (Upgraded from
                            'CRISIL B/Stable')

   Short-Term Rating        CRISIL A4 (Reaffirmed)

   Total Bank Loan Facilities Rated: INR318 Million

The rating upgrade reflects expected improvement in Apex's
financial risk profile because of a significant expected
improvement in its gearing. Its gearing is expected to improve to
around 6 times as on March 31, 2012 from over 20 times a year
ago, driven by increase in cash accruals in 2011-12. The firm
incurred substantial foreign exchange (forex)-related losses of
around INR14.5 million and INR79.7 million in 2009-10 (refers to
financial year April 1, to March 31) and 2008-09 respectively,
from derivative transactions, which had eroded its net worth
almost entirely, thereby leading to the deterioration in its
gearing. The firm's cash accruals improved in 2011-12 because of
healthy growth in revenues due to strong demand for Indian shrimp
in US and Europe markets. The upgrade also factors in expected 30
per cent year-on-year increase in the firm's revenues to more
than INR2.1 billion in 2011-12. CRISIL believes that Apex will
sustain its revenue growth, leading to increase in cash accruals
and consequent further improvement in its gearing, over the
medium term.

The ratings reflect Apex's below-average financial risk profile
marked by high gearing and small net worth, and susceptibility of
its margins to volatility in raw material prices and forex rates.
These rating weaknesses are partially offset by the benefits that
Apex derives from its promoters' extensive experience in the
seafood industry and its established customer relationships.

Outlook: Stable

CRISIL believes that Apex will continue to benefit from its
promoters' industry experience and the healthy demand for Indian
shrimps in the export markets. The outlook may be revised to
'Positive' if Apex demonstrates a more-than-expected increase in
its revenues, while improving its profitability, thereby
improving its financial risk profile. Conversely, the outlook may
be revised to 'Negative' if the firm's sales or margins decline
sharply because of adverse changes in export demand, if it
undertakes larger-than-expected debt-funded capital expenditure
programme, or if it changes its hedging policy leading to further
forex-related loses, resulting in less-than-expected improvement
in its financial risk profile.

                        About Apex Exports

Apex was set up as a partnership firm in 1996 at Kakinada (Andhra
Pradesh) by Mr. K Satyanarayana Murthy and his wife. The firm
processes and exports cultured shrimps to the US and Europe. It
has a processing capacity of 40 tonnes per day (tpd). The firm is
planning to increase the capacity by 40 tpd at an estimated cost
of INR150 million, to be funded at a debt-equity ratio of 2:1.

Apex reported a profit after tax (PAT) of INR52 million on net
sales of INR1.5 billion for 2010-11, against a PAT of INR31
million on net sales of INR0.8 billion for 2009-10. The firm
reported, on provisional basis, revenues of INR1.4 billion for
the seven months ended Oct. 31, 2011.


ATLAS ALLOY: CRISIL Assigns 'B' LT Rating to INR124.7MM Loan
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Atlas Alloy (India) Pvt Ltd.

   Facilities               Ratings
   ----------               -------
   Long-Term Rating         CRISIL B/Stable (Assigned)
   Short-Term Rating        CRISIL A4 (Assigned)

   Total Bank Loan Facilities Rated: INR124.7 Million

The ratings reflect AAIPL's weak financial risk profile marked by
small net worth, high gearing and weak debt protection metrics,
and constrained business risk profile because of its modest scale
of operations and customer concentration. These rating weaknesses
are partially offset by AAIPL's promoters' extensive experience
in the batteries industry, leading to good relations with its key
clients.

Outlook: Stable

CRISIL believes that AAIPL will benefit from its promoter's
extensive industry experience over the medium term and good
relationships with key clients. The outlook may be revised to
'Positive' in case AAIPL increases diversification of its
customer profile or achieves healthy growth in revenues.
Conversely, the outlook may be revised to 'Negative' if AAIPL's
liquidity gets adversely affected, most likely because of a
significant decline in its revenues or operating margin, or
because of larger-than-expected capital expenditure.

                       About Atlas Alloy

AAIPL was incorporated in 1990. It manufactures storage batteries
which are used in vehicles, uninterrupted power supply (UPS)
systems and inverters. The company also trades in batteries - it
procures batteries from local markets and sells those under its
own brand after quality testing. Trading accounted for about
10.00 per cent of its net sales in 2010-11 (refers to financial
year, April 1 to March 31).

For 2010-11, AAIPL reported a profit after tax (PAT) of INR0.78
million on net sales of INR157.4 million, against a PAT of
INR0.73 million on net sales of INR75.9 million for 2009-10.


BSCC INFRASTRUCTURE: CRISIL Assigns B- LT Rating on INR120MM Loan
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable/CRISIL A4' ratings to
the bank facilities of BSCC Infrastructure Pvt Ltd.

   Facilities              Ratings
   ----------              -------
   Long-Term Rating        CRISIL B-/Stable (Assigned)
   Short-Term Rating       CRISIL A4 (Assigned)

   Total Bank Loan Facilities Rated: INR120 Million

The ratings reflect BSCC's recent delays in servicing term loan
and its limited track record in executing civil infrastructure
projects. These rating weaknesses are partially offset by BSCC's
established relationships with customers.

Outlook: Stable

CRISIL believes that BSCC will maintain credit risk profile on
the back of its established customer relationships. The outlook
may be revised to 'Positive' if the company significantly
increases the scale of its civil construction business, while
efficiently managing its working capital cycle and without
material deterioration of its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if there are drastic
increases in the company's working capital requirements or
significantly lower-than-expected cash accruals, resulting in
weakening in its liquidity.

                    About BSCC Infrastructure

Based in Mehsana (Gujarat), BSCC was promoted by Mr. Bharat S
Chaudhary; the company is a contractor, primarily for the
Dudhsagar Dairy in Gujarat and Gujarat State Road Transport
Corporation. BSCC recently completed a INR1000-million project
for construction of cattle feed plant for Dudhsagar Dairy in
Jagudan (Gujarat). The company is also a distributor for Bharat
Sanchar Nigam Ltd recharge coupons and SIM cards in the Mehsana
and Palanpur districts of Gujarat.

BSCC reported a profit after tax (PAT) of INR15 million on net
sales of about INR839 million for 2010-11 (refers to financial
year, April 1 to March 31), as against a PAT of INR3 million on
net sales of INR102 million for 2009-10.


CTS INDUSTRIES: Delay in Debt Repayment Cues CRISIL Junk Ratings
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
CTS Industries Ltd to 'CRISIL D/CRISIL D' from 'CRISIL
B+/Stable/CRISIL A4'.

   Facilities                Ratings
   ----------                -------
   Long-Term Rating          CRISIL D (Downgraded from CRISIL
                             B+/Stable)

   Short-Term Rating         CRISIL D (Downgraded from CRISIL A4)

   Total Bank Loan Facilities Rated: INR 300 Million

The downgrade reflects instances of delay by CTS in servicing its
term debt; the delays have been caused by weakened liquidity.
CTS's liquidity weakened because of its large debt-funded capital
expenditure (capex) and large working capital requirements
arising out of its increased business volumes. CTS undertook a
capex programme of about INR180 million in 2010-11 (refers to
financial year, April 1 to March 31) towards setting up a crusher
plant in Chittragaria- Jharkhand and towards maintenance
activities. Furthermore, as CTS's topline grew at about 40 per
cent year-on-year in 2010-11, its working capital requirements
increased by about INR210 million. This led to the company's
increased borrowings and a consequent increase in interest
payments and decline in net cash accruals.

CTS's weak liquidity is expected to remain weak because of its
working-capital-intensive operations and its large debt
obligations over the medium term. The company also has modest
scale of operations. However, CTS benefits from its promoters'
extensive industry experience.

                       About CTS Industries

CTS was initially engaged only in trading in petrochemical
products such as parafin wax, slack wax and pesidue wax. It was
amalgamated with its group company, Annapurna Global Ltd, in
April 2006. The wax production facilities, which were with
Annapurna Global Ltd, were transferred to the amalgamated entity.
The company now operates in three segments, including wax
trading, pre-stressed concrete (PSC) pole manufacturing and
supplying crushed stone/aggregates to the construction segment.
Currently, 80 per cent of the company's revenues come from
supplying crushed stone/aggregates to the construction segment,
wax division contributes about 11 per cent, and the rest comes
from PSC pole manufacturing.

CTS is a licensed distributor for various petrochemical products
of Indian Oil Company. The available capacity for PSC poles is
360 pieces per day at its Begusarai (Bihar) plant. In the stone-
crushing segment, CTS has six plants for aggregates, dust and
boulders - at Chitragadia (Jharkhand; 220 tonnes per hour [tph]),
Chaibasa (Jharkhand; 220 tph), Chandiasthan (Bihar; 220 tph),
Bokaro (Jharkhand; 1000 tonnes per day [tpd]), Manpur, Gaya
(Bihar; 1000 tpd), and Koderma (Jharkhand; 1000 tpd).

For 2010-11, CTS reported a net profit of INR15 million on an
operating income of INR1.6 billion, against a net profit of INR20
million on an operating income of INR1.2 billion for the
preceding year.


G.K. SALES: CRISIL Rates INR70MM Long-Term Loan at 'CRISIL B+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' ratings to the bank
facilities of G. K. Sales Corporation.

   Facilities               Ratings
   ----------               -------
   Long-Term Rating         CRISIL B+/Stable (Assigned)

   Total Bank Loan Facilities Rated: INR70 Million

The rating reflects the firm's weak financial risk profile, with
modest networth, high gearing and weak debt protection metrics
coupled with the firm's limited bargaining power with its
supplier and its modest scale of operation. These rating
weaknesses are partially offset by its long standing experience
of its promoters in the auto spare part distributorship business.

Outlook: Stable

CRISIL believes that GKSC will maintain a stable business risk
profile on the back of its established market presence & long
standing experience of the promoters. The outlook may be revised
to 'Positive' in case of significant increase in revenues coupled
with improvement in net cash accruals and debt protection
metrics. Conversely, the outlook may be revised to 'Negative' in
case of deterioration in operating margins or debt protection
metrics or further elongation in working capital cycle.

                         About G. K. Sales

GKSC, a partnership firm, established in 1986, by the Raipur,
Chhattisgarh based Parwani family, is engaged in trading of
various automotive spare parts. The firm is the sole authorized
distributor for many established companies like Mahindra and
Mahindra Ltd., Anand Automotives Ltd. and ASPA Auto Lamps Pvt.
Ltd. The overall operations of the firm are managed by
Mr. Purshottam Parwani, along with his brothers Mr. Amar Parwani
and Mr. Hemant Parwani. The firm has its showroom and head office
located at Raipur, Chhattisgarh.

GKSC reported a profit after tax (PAT) of INR1.8 million on net
sales of INR193.2 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PAT of INR1.5 million on net
sales of INR199.7 million for 2009-10.


G S M INDUSTRIES: CRISIL Assigns 'BB' LT Rating on INR100MM Loan
----------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB/Stable/CRISIL A4+' ratings to
the bank facilities of G S M Industries Pvt Ltd.

   Facilities                Ratings
   ----------                -------
   Long-Term Rating          CRISIL BB/Stable (Assigned)
   Short-Term Rating         CRISIL A4+ (Assigned)

   Total Bank Loan Facilities Rated: INR100 Million

The ratings reflect the extensive experience of GSM's promoters
in the timber business, and the company's moderate financial risk
profile marked by comfortable capital structure and moderate debt
protection metrics. These rating strengths are partially offset
by GSM's susceptibility to intense competition in the timber
industry and to volatility in input prices, and working-capital-
intensive operations.

Outlook: Stable

CRISIL believes that GSM will continue to benefit from its
promoters' extensive industry experience and will maintain its
comfortable capital structure over the medium term. The outlook
may be revised to 'Positive' in case GSM substantially increases
its scale of operations and improves its profitability, without
bringing about any significant weakening in its capital
structure. Conversely, the outlook may be revised to 'Negative'
in case the company's liquidity comes under pressure, most likely
because of less-than-expected cash accruals or larger-than-
expected working capital requirements.

                    About G S M Industries

GSM is based in Gandhidham (Gujarat). The company was taken over
in 2006 by its current promoter, Mr. Ramesh Chinaria. The company
manufactures marine plywood (contributes the majority of its
revenues), commercial plywood, block-boards and flush-doors under
'GSM' brand. It uses about 30 per cent of its manufactured veneer
to make plywood and the rest it markets to plywood manufacturers.
The company's manufacturing unit is in Gandhidham; the unit has
capacity of processing 16 tonnes of plywood and veneer per day.

GSM reported a profit after tax (PAT) of INR1.7 million on net
sales of INR141.8 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR0.5 million on net
sales of INR141.3 million for 2009-10.


JOREHAUT TEA: CRISIL Raises Rating on INR150MM Loan to 'BB'
-----------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facility of
The Jorehaut Tea Ltd to 'CRISIL BB/Stable' from 'CRISIL BB-
/Stable'.

   Facilities               Ratings
   ----------               -------
   Long-Term Rating         CRISIL BB/Stable (Upgraded from
                            'CRISIL BB-/Stable')

   Total Bank Loan Facilities Rated: INR150 Million

The upgrade reflects improvement in the Jorehaut group's
financial risk profile backed by healthy accruals, leading to an
improvement in its net worth and capital structure. Also, the
group's business risk profile is healthy with higher operating
margins and moderate net cash accruals.

CRISIL has changed its analytical approach, wherein it has
treated INR220 million of unsecured loans, extended by the
group's promoter, as neither debt nor equity, since it is
interest-free in nature and subordinated to bank debt.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of TJTL and The Jorehaut Group Ltd
(TJGL), together referred to as the Jorehaut group. The
consolidated approach is because the two companies share the same
management and TJTL has taken on lease all four gardens and
manufacturing facilities owned by TJGL; TJTL does not own any tea
garden or manufacturing facility. Moreover, TJGL has provided
corporate guarantee for the INR150-million term loan availed of
by TJTL. TJGL had also extended unsecured loan of INR273.5
million to TJTL as on March 31, 2009, to enable the latter to
acquire 49.93 per cent equity stake in TJGL.

The rating also reflects the extensive industry experience of the
Jorehaut group's promoter. This rating strength is partially
offset by the seasonality in the Jorehaut group's production,
high operating leverage restricting financial risk profile, and
its small scale of operations.

Outlook: Stable

CRISIL believes that the Jorehaut group will benefit over the
medium term from its promoter's extensive industry experience.
The outlook may be revised to 'Positive' if there is a
substantial improvement in the group's financial risk profile,
marked by improvement in capital structure or better-than-
expected profitability. Conversely, the outlook may be revised to
'Negative' if the profitability is below expectations, or if the
group undertakes larger-than-expected debt-funded capex
programme, thereby adversely affecting its financial risk
profile.

                        About the Group

TJTL, promoted by Mr. I P Poddar in 1999, produces black crush,
tear, and curl tea with annual production capacities of 4 million
kilograms. The Poddar family has been engaged in tea production
since 1983, when they purchased TJGL from a Europe-based company.
TJGL owns four gardens spread across 1979 hectares in Assam. Each
garden is accompanied by a tea manufacturing facility. From 2005,
the Poddar family started producing tea in TJTL by taking over
all four gardens and manufacturing facilities of TJGL on lease.
Currently, TJGL does not have any commercial operations.

In 2008-09 (refers to financial year, April 1 to March 31), TJTL
bought 49.93 per cent stake in TJGL for a purchase consideration
of INR277.5 million. The purchase was funded through term loan of
INR150 million, and the remaining through interest-free unsecured
loan. CRISIL has not factored in the inter-group investment
during consolidation, which has resulted in negative net worth
for the Jorehaut group, as TJGL had net worth of less than INR20
million, excluding revaluation reserve, at the time of purchase
of equity stake by TJTL.

The Jorehaut group reported a profit after tax (PAT) of INR39
million on net sales of Rs72 million for 2010-11, as against a
PAT of INR34 million on net sales of INR65 million for 2009-10.


KINGFISHER AIRLINES: Lenders Yet to Agree on Extending Loans
------------------------------------------------------------
The Economic Times reports that three banking sources said a
consortium of lenders to Kingfisher Airlines has not yet agreed
to extend further loans to the beleaguered carrier, which
urgently needs funds to save it from collapse.

Senior executives of Punjab National Bank, IDBI Bank and Bank of
Baroda, which between them have lent about INR20 billion
(US$406 million) to Kingfisher, have not yet reached any deal to
lend more to the carrier, the report says.

The executives did not want to be identified as they are not
allowed to speak about individual clients, according to ET.

Earlier, the Economic Times related that State Bank of India, the
biggest lender to Kingfisher, had decided to lend INR16.5 billion
to the ailing carrier.

According to the report, Vijay Mallya, the flamboyant liquor
baron who owns a majority stake in Kingfisher, is seeking working
capital loans from lenders to keep the carrier flying.

The Economic Times relates that the airline has cancelled more
than a hundred flights since Saturday and lost dozens of pilots
in the past two months as its cashflow dried after tax
authorities froze its bank accounts.

Of the 64 planes in its fleet, Kingfisher is now using just 28,
disrupting the travel plans of thousands of passengers across
India, the report notes.

The Economic Times says Kingfisher has mandated SBI Capital
Markets, the investment banking arm of State Bank of India, for
restructuring its US$1.3 billion debt.

SBI Caps had submitted a proposal to Kingfisher's consortium of
16 lenders last Friday, the report notes.

"We have to study the proposal, seek clarifications and then take
a call individually," the report quots the source at IDBI Bank as
saying.  "It is a complicated issue and it will take time," said
another source.

                     About Kingfisher Airlines

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

                         *     *     *

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


LANCO ANPARA: CRISIL Cuts LT Rating on INR54,968MM Loan to 'BB+'
----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Lanco
Anpara Power Ltd to 'CRISIL BB+/Negative/CRISIL A4+' from 'CRISIL
BBB-/Stable/CRISIL A3'.

   Facilities              Ratings
   ----------              -------
   Long-Term Rating        CRISIL BB+/Negative (Downgraded from
                           CRISIL BBB-/Stable)

   Short-Term Rating       CRISIL A4+ (Downgraded from CRISIL A3)

   Total Bank Loan Facilities Rated: INR54968 Million

The downgrade reflects deterioration in LAPL's credit risk
profile because of delays in commissioning of the company's
upcoming plant and weakening in the credit risk profile of its
parent, Lanco Infratech Ltd (Lanco Infratech, rated 'CRISIL BBB-
/Negative/CRISIL A3'). The two units at LAPL's upcoming plant,
which were to begin commercial operations in July 2011 and
November 2011 respectively, have declared commercial operations
in December 2011 and January 2012 respectively, because of delays
in project execution. There has been a cost overrun of INR5
billion in the project because of adverse foreign exchange rates
and increased interest cost during construction of the plant.
Furthermore, because of fuel availability issues, LAPL will have
to buy coal from the e-auction market.

The aforementioned risks are partially offset by the likelihood
of stable revenues for LAPL on the back of its power purchase
agreements with four power distribution companies (wholly owned
by Uttar Pradesh Power Corporation Ltd) as well as full pass-
through of coal costs.

Outlook: Negative

CRISIL believes that LAPL's financial risk profile will remain
under pressure over the medium term because of time and the cost
overruns in commissioning its plant. The ratings may be
downgraded if LAPL is not able to build up liquidity for meeting
its INR510-million debt obligations falling due on July 15, 2012
because of issues related to stabilization of plant and
collection of receivables. Conversely, the outlook may be revised
to 'Stable' if LAPL stabilizes operations at the plants sooner
than expected and generates steady cash accruals.

                         About Lanco Anpara

LAPL has been promoted by Lanco Infratech (a part of the Lanco
group). LAPL was incorporated in June 2006 for setting up a 1200
megawatt-(MW) coal-based thermal power plant at Anpara (Uttar
Pradesh, India). The project got delayed because the air pre-
heater at the plant was damaged at the time of stabilisation. The
original commercial operations dates for the two units of the
plant were July 2011 and November 2011. The units have commenced
commercial operations in December 2011 and January 2012
respectively.


MEGAFLEX PLASTICS: CRISIL Reaffirms 'BB-' LT Rating on INR120MM
---------------------------------------------------------------
CRISIL's ratings to the bank facilities of Megaflex Plastics Ltd
continues to reflect MPL's moderate business risk profile backed
by promoter's extensive industry experience and expected
improvement in financial risk profile, marked by moderate debt
protection metrics.

   Facilities              Ratings
   ----------              -------
   Long-Term Rating        CRISIL BB-/Stable (Reaffirmed)
   Short-Term Rating       CRISIL A4+ (Reaffirmed)

   Total Bank Loan Facilities Rated: INR120 Million

These rating strengths are partially offset by MPL's working-
capital-intensive operations, exposure to intense competition in
the polypropylene (PP) bags segment, and small scale of
operations.

Outlook: Stable

CRISIL believes that MPL will benefit over the medium term from
its promoter's extensive industry experience. The outlook may be
revised to 'Positive' in case of substantial increase in its
revenues and profitability. Conversely, the outlook may be
revised to 'Negative' if MPL's financial risk profile
deteriorates on account of large debt-funded capital expenditure
plan.

                      About Megaflex Plastics

Set up in 2007 by Mr. Rakesh Sethia, MPL manufactures PP bags,
which are used for packing bulk quantities of fruits, vegetables,
and food grains. MPL has capacity to manufacture around 43
million pieces per annum, and currently has 53 leno looms for
making fabric. MPL sells its products mostly through dealers and
distributors in West Bengal to various potato traders, farmers,
cold chains, and bag traders.

MPL reported a profit after tax (PAT) of INR5.9 million on net
sales of INR199.36 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR4.7 million on net
sales of INR189.72 million for 2009-10.


PASARI MULTIPROJECTS: CRISIL Rates INR320MM Loan at 'CRISIL B'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the cash
credit facility of Pasari Multiprojects Pvt Ltd.

   Facilities               Ratings
   ----------               -------
   Long-Term Rating         CRISIL B/Stable (Assigned)

   Total Bank Loan Facilities Rated: INR320 Million

The rating reflects Pasari's weak business risk profile,
constrained by its promoter's limited experience in the
commercial real estate space leading to project implementation
risks, saleability risks for commercial space, and funding risks
in terms of dependence on customer advances. These rating
weaknesses are partially offset by expected financial support, in
terms of regular equity infusion, to Pasari from its promoters.

Outlook: Stable

CRISIL believes that Pasari will complete its ongoing project
without any significant time or cost overrun. The outlook may be
revised to 'Positive' in case Pasari reports better-than-expected
sales of commercial space, resulting in stable cash flows and
timeliness in debt servicing, over the medium term. Conversely,
the outlook may be revised to 'Negative' if Pasari's financial
risk profile deteriorates, most likely because of time or cost
overrun in the project, or lack of timely and adequate financial
support from the promoters.

                       About Pasari Multiprojects

Pasari, incorporated in 1993, is a special-purpose vehicle (SPV)
formed by the Pasari group to undertake construction of a
commercial complex and a four-star hotel, together called
Corporate Empire, in Anandapur, East Calcutta Township (along
Eastern Metropolitan Bypass), Kolkata (West Bengal). The
estimated cost of the project is INR940 million. The hotel and
commercial space are expected to be operational by June 2014.

The Pasari group has been engaged in development of residential
properties for more than 30 years now, with a project portfolio
of over 1 million square feet in the last three years. The group
has over 32 subsidiaries and all of its projects are in and
around Kolkata.


SALORAA FABS: CRISIL Assigns 'CRISIL B' Long-Term Rating
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Saloraa Fabs.

   Facilities             Ratings
   ----------             -------
   Long-Term Rating       CRISIL B/Stable (Assigned)
   Short-Term Rating      CRISIL A4 (Assigned)

   Total Bank Loan Facilities Rated: INR67.3 Million

The ratings reflect the firm's small scale of operations and
customer concentration risks in SF's revenue profile. The ratings
also reflect the firm's weak financial risk profile marked by low
net worth and moderate debt protection metrics. These weaknesses
are partially offset by the industry experience of SF's promoters
in the readymade garment (RMG) segment.

Outlook: Stable

CRISIL believes that SF will continue to benefit over the medium
term from its established track record in the textile segment.
The outlook may be revised to 'Positive' if the group
considerably improves its scale of operations and profitability,
resulting in improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if there is
considerable decline in revenues or profitability or in case of
deterioration in working capital management, resulting in
stretched liquidity, or if the firm undertakes a large debt-
funded capital expenditure programme, resulting in weakening in
its financial risk profile, or in case of greater-than-expected
capital withdrawals by its proprietor.

                        About Saloraa Fabs

SF set up as a proprietorship firm in 2003 is engaged in
manufacture of readymade (RMG) garments mainly for men. The firm
exports to the European market and derives its entire revenues
from supplies to Industria de Dise¤o Textil, S.A. (referred to as
the Inditex group) one of the world's largest fashion
distributors. The day to day operations are managed by Mr. S.
Ramesh who has more than ten years of experience in the RMG
segment.

SF reported a profit after tax (PAT) of INR 2.7 million on net
sales of INR 103.35 million for 2010-11 (refers to financial
year, April 1 to March 31), as against a PAT of INR 1.9 million
on net sales of INR 81.92 million for 2009-10.


SHREE GAJANAN: Delay in Debt Payment Cues CRISIL Junk Ratings
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Shree
Gajanan Prasad Workshop to 'CRISIL D/CRISIL D' from 'CRISIL B+/
Stable/ CRISIL A4'.

   Facilities                Ratings
   ----------                -------
   Long-Term Rating          CRISIL D (Downgraded from CRISIL
                                       B+/Stable)

   Short-Term Rating         CRISIL D (Downgraded from CRISIL A4)

   Total Bank Loan Facilities Rated: INR90 Million

The downgrade reflects instances of delay by SGPW in servicing
its term debt; the delays have been caused by the firm's weak
liquidity. Along with significant delays in debt repayment for
four months till December 2011, part of the repayment obligation
due on January 31, 2012, remained overdue on Feb. 2, 2012. SGPW's
liquidity has weakened over the past six months because of delays
in realization of payment from some of the firm's customers. With
significant orders to be executed over the next six months,
CRISIL believes that SGPW's working capital requirements will
remain large and liquidity will remain weak.

SGPW also has a weak financial risk profile marked by a small net
worth, high gearing, and weak debt protection metrics. However,
the firm continues to benefit from its stable revenue stream, its
satisfactory order book and its promoter's extensive business
experience.

                        About Shree Gajanan

Shree Gajanan Prasad Workshop, a proprietorship firm, was set up
by Mr. Chandrakant Patil in 1979. It manufactures propeller units
used in boats and large vessels. The propeller unit comprises a
propeller engine, shaft, gear box, steering gear, a rudder, and
others. About 40 per cent of the products manufactured by SGPW
are exported to foreign countries, while the rest are sold in the
domestic market. The firm has two manufacturing units, one each
in Karanja and Dronagiri (both in Maharashtra).

SGPW's profit before tax (PBT) is at  INR 10.6 million on net
sales of INR101.2 million for 2010-11 (refers to financial year,
April 1 to March 31), against a PBT of INR8.7 million on net
sales of INR102.0 million for 2009-10.


TRUPTI AUTOMOTIVES: CRISIL Rates INR86MM Loan at 'CRISIL BB-'
-------------------------------------------------------------
CRISIL has assigned its 'CRISIL BB-/Stable' rating to the long-
term bank facilities of Trupti Automotives.

   Facilities               Ratings
   ----------               -------
   Long-Term Rating         CRISIL BB-/Stable (Assigned)

   Total Bank Loan Facilities Rated: INR 86.0 Million

The rating reflects TA's moderate financial risk profile, marked
by high gearing, small net worth, and weak debt protection
metrics, and modest scale of operations. These rating weaknesses
are partially offset by TA's stable business risk profile, backed
by established relationship with Tata Motors Ltd (TML; rated
'CRISIL AA-/Stable/CRISIL A1+').

Outlook: Stable

CRISIL believes that TA will benefit over the medium term from
its long-term stable relationship with its principal, TML. The
outlook may be revised to 'Positive' if there is sustained
improvement in its operating profitability and significant
capital infusion by the partners, resulting in improvement in its
financial risk profile. Conversely, the outlook may be revised to
'Negative' if TA undertakes large debt-funded capital expenditure
programme, thereby materially impacting its debt protection
metrics, or if the firm's profitability declines due to increase
in overheads.

                      About Trupti Automotives

In 2004, TA, a partnership firm, became the authorised dealer for
commercial vehicles of TML in Orissa, having its integrated 3-S
(Service, Spares and Sales) facility in Manguli, Angul, and
Sathipur. The firm deals in all the model variants for commercial
vehicles of TML. TA is managed by two brothers, Mr. B Mohanty and
Mr. S Mohanty.

TA reported a profit after tax (PAT) of INR3.43 million on net
sales of INR1052.38 million for 2010-11 (refers to financial
year, April 1 to March 31), as against a PAT of INR2.46 million
on net sales of INR872.2 million for 2009-10.


=================
I N D O N E S I A
=================


MANDALA AIRLINES: To Resume Operations in April
-----------------------------------------------
The Jakarta Post reports that Tiger Airways Holdings Ltd
announced on Tuesday that Mandala Airlines will resume operations
in April.

Tiger Airways, which concluded its purchase of a 33% stake in
Mandala earlier this month, said in a statement that Mandala's
Air Operators Certificate (AOC) had been reinstated by the
Transportation Ministry, The Jakarta Post relates.

Mandala's operating license was frozen in January 2011 following
the suspension of Mandala's operations, the report says.

"Information about the number of planes and routes will be
announced soon," the company was quoted as saying by
kontan.co.id, The Jakarta Post reports.

Mandala has undergone financial restructuring in accordance with
Indonesian law. The largest shareholder in the restructured
Mandala is the Saratoga Group, which owns 51.3% of the airline.
The remaining 15.7% is owned by previous shareholders and
creditors of Mandala.

Based in Jakarta, Indonesia, PT Mandala Airlines is a low-cost
airline.  The carrier operates scheduled services to 3
international and 17 domestic destinations, using a fleet of
narrow body Airbuses.


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


MAZDA MOTOR: To Raise Up to JPY100 Billion in Share Issue, Loans
----------------------------------------------------------------
The Japan Times reports that sources said Mazda Motor Corp. is
planning to increase its capital by as much as JPY100 billion by
issuing new shares as it seeks to bolster its flagging financial
standing, having been battered by the strong yen.

The automaker, expecting to log a group net loss of
JPY100 billion in the business year ending in March, also plans
to raise JPY70 billion in subordinate loans from financial
institutions, including the Development Bank of Japan and
Sumitomo Mitsui Banking Corp, the report says.

The Japan Times states that Mazda is particularly vulnerable to
the yen's strength among major Japanese automakers because it
produces most of its vehicles at plants in Japan and thus has a
higher export ratio than its competitors.

The company has also been hit by sluggish sales amid the European
debt crisis and reduced output due to supply chain disruptions
triggered by the massive flooding in Thailand last year, the
report notes.

With the funds to be raised, it is expected to expand its
overseas output by building new plants in emerging economies,
including Mexico and Russia, according to The Japan Times.

For the nine-month period through December, Mazda reported a net
loss of JPY112.84 billion and saw its capital adequacy ratio fall
to 19.2%.  The company logged an operating loss of JPY54.28
billion, compared with a profit of JPY13.23 billion a year
earlier, on sales of JPY1.42 trillion, down 17.4% from the
previous year, The Japan Times discloses.

Mazda incurred a consolidated net loss of JPY60.04 billion in
fiscal 2010, compared with a JPY6.48 billion in group net loss
logged in fiscal 2009.  Mazda Motor posted a group net loss of
JPY71.49 billion in fiscal 2008.

                         About Mazda Motor

Headquartered in Hiroshima Prefecture, in Japan, Mazda Motor
Corporation -- http://www.mazda.co.jp/-- together with its
subsidiaries and associates, is primarily involved in the
manufacture and distribution of automobiles.  The company
manufactures passenger cars and commercial vehicles.  Mazda
Motor distributes its products in both domestic and overseas
markets.  The company has 58 subsidiaries.  It has overseas
operations in the United States, Canada, Mexico, Germany,
Belgium, France, the United Kingdom, Switzerland, Portugal,
Italy, Spain, Austria, Russia, Columbia, New Zealand, Thailand,
Indonesia and China.


TOKYO ELECTRIC: S&P Keeps 'B+/B' Corp. Credit Ratings on Watch
--------------------------------------------------------------
Standard & Poor's Ratings Services kept Tokyo Electric Power Co.
Inc. on CreditWatch but revised its implications to negative from
developing. "We maintained the 'B+' long-term corporate credit,
'B' short-term corporate credit, and 'BB+' long-term debt ratings
on the company. The stand-alone credit profile on TEPCO remains
at 'ccc+', and the likelihood that the company will receive
extraordinary support from the government of Japan (AA-
/Negative/A-1+) in the event of financial distress remains
'high.' We placed the ratings on CreditWatch developing on
May 13, 2011, and kept them on that status after lowering the
ratings on the company on May 30, and again on Aug. 4 and
Nov. 9," S&P said.

"We revised the CreditWatch implications to negative from
developing because we believe prospects for an upgrade have
diminished. While we expect TEPCO to receive further financial
support from the government, including an injection of equity
capital, the extent of TEPCO's operating and net losses--in terms
of quantity and period of time--has increased, in our view. Based
on our forecast, TEPCO will post a larger operating and net loss
for fiscal 2012 (ending March 31, 2013) than we expected and take
longer to recover--due to a lower increase in electricity tariffs
than we expected, higher fuel costs, a delay in restarting its
Kashiwazaki-Kariwa nuclear power reactors, and our expectation
that decommissioning and cleanup costs will be higher than TEPCO
estimates," S&P said.

"We have revised our key assumptions of the average value of
electricity tariff hikes that TEPCO will make to between 8% and
10%, compared with 10% in our last review in November 2011. We
also think a restart of the Kashiwazaki-Kariwa reactors will be
delayed for at least a year, with none to be reactivated in
fiscal 2012. Negative public sentiment in response to TEPCO's
announcement earlier this year of its intention to hike
nonregulated electricity rates from April, and strong opposition
to nuclear power generation, contributed to our views. In
addition, the longer the delay in restarting the reactors, the
higher the costs the company will incur for alternative fuels.
Moreover, we believe TEPCO will incur higher decommissioning and
cleanup costs than the company estimates, given the scale of the
work involved," S&P said.

"The government-backed Nuclear Damage Compensation Facilitation
Corporation to assist TEPCO and the company's restructuring plan
remain unclear, and we expect the government to announce the
final form of its support package by March 31, 2012. TEPCO's
financial profile remains highly vulnerable without successful
and timely implementation of further government financial support
following approval of a restructuring plan. Although TEPCO
continues to have a positive net worth, ongoing operating and net
losses due to significantly higher fuel costs to replace nuclear
power generation continue to burden the company's ongoing
financial position," S&P said.

"In our view, TEPCO has not fully eliminated risk of selective
default (SD), a scenario we view as more likely than general
default," S&P said.

"We plan to resolve TEPCO's CreditWatch status once the
government has approved TEPCO's restructuring plan. The
CreditWatch negative status reflects a more than 50% possibility
that a downgrade will occur within 90 days," S&P said.

In S&P's opinion, S&P could lower the ratings on TEPCO if:

* Government approval of a restructuring plan is significantly
   delayed beyond the due date of March 31, 2012;

* An overall increase in TEPCO's electricity rates is
   significantly lower than our revised assumption of between 8%
   and 10%;

* Further delays occur in restarting TEPCO's Kashiwazaki-Kariwa
   nuclear reactors;

* TEPCO's lender banks do not agree to its request for a further
   JPY1 trillion in new loans in addition to refinancing maturing
   debt, thus causing the company liquidity problems;

* Some form of debt restructuring becomes increasingly likely;
   or

* A government infusion of ¯1 trillion in equity capital becomes
   unlikely and government commitment to TEPCO is much weaker
   than S&P expects.

On the other hand, S&P could maintain the ratings if:

* The government approves TEPCO's request for a JPY1 trillion
   infusion of government capital, mostly in the form of equity
   capital;

* S&P sees a government commitment to avoid TEPCO experiencing
   negative net worth and a liquidity shortage over the long
   term;

* Approved hikes in overall electricity rates are higher than or
   around S&P's revised 8%-to-10% assumption;

* TEPCO's lender banks agree to its request for JPY1 trillion in
   new loans in addition to refinancing maturing debt; and

* The likelihood of a restructuring of TEPCO's debt remains
   consistent with S&P's current expectations.


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


BRIDGECORP LTD: Petricevic Claims No Knowledge of Missed Payments
-----------------------------------------------------------------
Fairfax NZ News reports that Rod Petricevic, the former managing
director of failed finance company Bridgecorp Ltd, claims he was
unaware of any missed interest payments just a month before the
company went into receivership.

The news agency relates that Mr. Petricevic, who on Feb. 20 took
the stand at the High Court at Auckland to defend 10 Securities
Act charges in which he is alleged to have misled investors, also
said as far as he was aware no maturity payments to investors had
ever not been paid.

According to the report, Mr. Petricevic said he had not been
advised of any missed payments either until just before the
company went under, contrary to some of the Crown evidence.

The trial of Mr. Petricevic and former directors Rob Roest and
Peter Steigrad on 10 charges under the Securities Act of
misleading investors began on October 25, after numerous delays,
Fairfax NZ notes.  Two other directors have already admitted the
charges.

Gary Urwin was to have been sentenced in December. That was
adjourned to allow for a three-day disputed facts hearing
beginning on April 2.

In November, the former Bridgecorp chairman Bruce Davidson was
sentenced to nine months home detention, 200 hours of community
service and ordered to pay $500,000 in reparation to investors
after pleading guilty to the 10 Securities Act charges.

The trial is expected to end next month, the report adds.

                       About Bridgecorp Ltd

Based in New Zealand, Bridgecorp Ltd. is a property development
and finance company.

Bridgecorp was placed in receivership on July 2, 2007, after
failing to pay principal due to debenture holders.  John Waller
and Colin McCloy, partners at PricewaterhouseCoopers, were
appointed as receivers.  Bridgecorp owes around 14,500 investors,
which liquidators estimate to approximate NZ$500 million.

Bridgecorp's nine Australian companies were also placed into
voluntary administration, owing about 100 investors about
AUD24 million (NZ$27 million).


CRAFAR FARMS: Fay-Led Bidder Files Court of Appeal Action
---------------------------------------------------------
APNZ reports that the Sir Michael Fay-led consortium looking to
wrest the Crafar dairy farms away from rival bidder Shanghai
Pengxin have initiated Court of Appeal action challenging the
Chinese company's relevant experience and ability to operate the
farms.

High Court Justice Forrest Miller last week found in favor of the
Fay group when it sought a review of the Overseas Investment
Office (OIO) and ministerial approval granted to Shanghai Pengxin
to buy the farms, APNZ recalls.

Justice Miller upheld the challenge on the grounds the OIO and
ministers did not assess the bid's economic benefits correctly.
However he dismissed the Fay group's contention that Shanghai
Pengxin lacked the necessary business experience and acumen to
run the farms, according to the report.

APNZ says the Fay group's lawyer David Cooper of Bell Gully
yesterday confirmed he had initiated the Court of Appeal
proceedings.

According to the report, Mr. Cooper said the group wanted to
challenge Justice Miller's decision on the relevant experience
and acumen issue as a second avenue of legal challenge against
Shanghai Pengxin's application. That was in case the OIO and
ministers gave the bid the green light when reconsidering it
against the economic benefits test stipulated by Justice Miller.

However Shanghai Pengxin spokesman Cedric Allan said the Fay
group's criticism of the Chinese company's farming credentials
were part of "a self serving campaign of allegations and half-
truths," the report relays.

"Pengxin is not only a major developer and builder of retail,
residential, hotel and infrastructure projects. The company has
won awards for its work throughout China and has successfully
managed offshore investments including copper mining in the
Republic of Congo, and a controlling interest in a profitable
cropping farm in Bolivia, half as big again as all the Crafar
farms," the report quotes Mr. Allan as saying.

"The company has been involved in cropping and sheep farming in
China for years, with a target of having three million sheep
within five years."


=====================
P H I L I P P I N E S
=====================


EASTMAN KODAK: Business as Usual for Asian Units
------------------------------------------------
Eastman Kodak's business affiliates in the Asia-Pacific continues
to operate in the normal course despite the U.S. parent's
bankruptcy filing, according to Lois Lebegue, Kodak's Asia-
Pacific managing director for consumer digital and graphic
communications groups.

The director said Kodak in Asia is not part of the filing for
bankruptcy by the U.S. office and its subsidiaries, Alma Buelva
of The Philippine Star wrote.  He explained that "the filing is
for restructuring and reorganization to take care of the legacy
pensions and other matters.  We are not affected by it here in
Asia, which is the most solid region for the company."

Mr. Lebegue, however, said Kodak in Asia will naturally go along
the company's global restructuring that should see it focusing on
its most valuable business lines.  He said the plan is to exert
three-fourths of the company's resources for business-to-business
and one-fourth for consumer offerings, the PhilStar reported.

Kodak employs more than 4,000 core people in Asia where it has
six manufacturing plants, 14 subsidiaries and three R&D centers,
the PhilStar related.  As a whole, Asia represents a $1.5-billion
business for Kodak, Mr. Lebegue said.

Armin A. Amio of The BusinessMirror pointed out that Kodak, in
Asia, has been partnering with other solutions providers to grow
its enterprise business.  In the Philippines, it linked up with
Unisys for the National Statistics Office's documentation
program, the report said.  Other major clients include Maybank,
HSBC Corp., the Hong Kong government, Japan's national assembly,
to name a few, the report added.

The PhilStar noted that in the Philippines, the brand name has
become a local term -- kodakan -- which means to take pictures.

                       About Eastman Kodak

Rochester, New York-based Eastman Kodak Company and its U.S.
subsidiaries on Jan. 19, 2012, voluntarily filed for Chapter 11
reorganization (Bankr. S.D.N.Y. Lead Case No. 12-10202) in
Manhattan.  Subsidiaries outside of the U.S. are not included in
the filing and will continue to operate as usual.

The Company, founded in 1880 by George Eastman, was once the
world's leading producer of film and cameras.  In recent years,
Kodak has been working to transform itself from a business
primarily based on film and consumer photography to a smaller
business with a digital growth strategy focused on the
commercialization of proprietary digital imaging and printing
technologies.

Having invested significantly in research and development for
over a century, Kodak has a vast portfolio of patents.  In 1975,
Kodak scientists invented the first digital camera.  Kodak then
went on to develop a vast collection of patented technologies to
enhance digital image capture and processing, technologies that
are used in virtually every modern digital camera, smartphone and
tablet, as well as numerous other devices.  Kodak has 8,900
patent and trademark registrations and applications in the United
States, as well as 13,100 foreign patents and trademark
registrations or pending registration in roughly 160 countries.

Kodak disclosed $5.10 billion in assets and $6.75 billion in
liabilities as of Sept. 30, 2011.  The net book value of all
assets located outside the United States as of Dec. 31, 2011 is
$13.5 million.

Kodak says it has "significant" legacy liabilities, which include
$1.2 billion in non-U.S. pension liabilities, $1.3 billion of
Other Post-Employment Benefit ("OPEB") liabilities and roughly
$100 million in environmental liabilities.

Kodak has outstanding funded debt in an aggregate amount of
roughly $1.6 billion, consisting primarily of roughly: (a) $100
million outstanding under the first lien revolving credit
facility plus an additional $96 million in face amount of
outstanding letters of credit; (b) $750 million in principal
amount of second lien secured notes; (c) $400 million in
principal amount of convertible notes; and (d) $283 million in
principal amount of other senior unsecured debt.  Kodak also has
roughly $425 million in outstanding trade debt.

Kodak sought bankruptcy protection amid near-term liquidity
issues brought about by steeper-than-expected declines in Kodak's
historically profitable traditional businesses, and cash flow
from the licensing and sale of intellectual property being
delayed due to litigation tactics employed by a small number of
infringing technology companies with strong balance sheets and an
awareness of Kodak's liquidity challenges.

Attorneys at Sullivan & Cromwell LLP and Young Conaway Stargatt &
Taylor, LLP, serve as counsel to the Debtor.  FTI Consulting,
Inc., is the restructuring advisor.   Lazard Freres & Co. LLC, is
the investment banker.   Kurtzman Carson Consultants LLC is the
claims agent.  A group of second lien lenders are represented by
Akin Gump Strauss Hauer & Feld LLP.

Bankruptcy Creditors' Service, Inc., publishes EASTMAN KODAK
BANKRUPTCY NEWS.  The newsletter tracks the Chapter 11 proceeding
undertaken by affiliates of Eastman Kodak and its affiliates
(http://bankrupt.com/newsstand/or 215/945-7000).


                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


S U B S C R I P T I O N   I N F O R M A T I O N

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless Hills,
Pennsylvania, USA, and Beard Group, Inc., Frederick, Maryland,
USA.  Valerie U. Pascual, Marites O. Claro, Joy A. Agravante,
Rousel Elaine T. Fernandez, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

Copyright 2012.  All rights reserved.  ISSN: 1520-9482.

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

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





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