TCRAP_Public/120524.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, May 24, 2012, Vol. 15, No. 103

                            Headlines


A U S T R A L I A

INVESTEC BANK: Fitch Keeps 'BB+' Subordinated Debt Rating on RWN
* AUSTRALIA: ASIC Reveals Forward Plan For Insolvency Industry


C H I N A

GRANDSTAR CARGO: Board OKs Plans to Liquidate Amid Losses


H O N G  K O N G

APRICA (ASIA): Members' Final Meeting Set for June 19
CELLOPARK ASIA: Members' and Creditors' Meetings Set for June 15
FOCUS MOTION: Creditors' Proofs of Debt Due June 25
GARMEN KINDERGARTEN: Wong Siu Loi on May Appointed as Liquidator
HK BEST: Members' Final General Meeting Set for June 19

ILLYCAFFE ASIA: Tang Tin Sek Appointed as Liquidator
IMPERIAL WORLD: Kam and Yu Step Down as Liquidators
LEARNING CONNECTION: Sum on May Appointed as Liquidator
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibonds
LEHMAN BROTHERS SOUTH: Lai and Haughey Step Down as Liquidators

LU HAN: Shiu Moon Yuen Simon Steps Down as Liquidator
MACQUARIE ASIA: Commences Wind-Up Proceedings
MISHU LIMITED: Creditors' Proofs of Debt Due June 18
NIVADA TRADING: Chiu Wai Hon Appointed as Liquidator
REGENT EARNING: Placed Under Voluntary Wind-Up Proceedings

RIGHT CONNECTION: Members and Creditors' Meetings Set for June 15


I N D I A

AIR INDIA: Files Contempt Petition Against Striking Pilots
ALP NISHIKAWA: Delay in Loan Payment Cues ICRA Junk Ratings
CHALLANI RANKA: ICRA Assigns '[ICRA]B+' Rating to INR5.5cr Loan
CHAUDHARY NURSING: Delay in Loan Payment Cues ICRA Junk Ratings
GEE CEE: ICRA Puts '[ICRA]B+' Rating on INR40.23cr Loans

GRAH AVAS: ICRA Rates INR10cr Term Loan at '[ICRA]B+'
GREAT OFFSHORE: Lenders May Opt for Debt Restructuring
GREAT OFFSHORE: Delays in Loan Payment Cue CRISIL Junk Ratings
JET AIRWAYS: To Sack 72 Expat Pilots; To Take In Locals
SALAXMI DISTRIBUTORS: ICRA Rates INR3cr Loan at '[ICRA]B+'

SHYAM FERROUS: ICRA Assigns 'B+' Rating to INR14.6cr Loans
TATA STEEL: Moody's Says Relief Still Some Months Away
TEX STYLES: ICRA Suspends '[ICRA]BB-' Rating on INR3.18cr Loan
UDAYA KRISHNA: ICRA Assigns 'B+' Rating to INR32.45cr Loans
UTKAL GALVANIZERS: ICRA Cuts Ratings on INR62.88cr Loans to 'D'

VITROMED HEALTHCARE: ICRA Assigns 'BB' Rating to INR9cr Loan


J A P A N

GODO KAISHA: S&P Lowers Rating on JPY0.9BB Class F Notes to 'D'


N E W  Z E A L A N D

AORANGI SECURITIES: Court Asked to Decide on Funds Distribution
BLUE CHIP: Genworth Tips AUD50-Mil. To Cover Blue Chip Claims
DOMINION FINANCE: Directors Plead Not Guilty on SFO Charges
NORSK HYDRO: To Cut 300 Jobs at New Zealand Smelter Plant
SOUTH CANTERBURY: "Stooge" Director Disguised as Hotel Owner


                            - - - - -


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


INVESTEC BANK: Fitch Keeps 'BB+' Subordinated Debt Rating on RWN
----------------------------------------------------------------
Fitch Ratings is maintaining Investec Bank (Australia) Limited's
Long- and Short-Term Issuer Default Ratings (IDR) and Viability
Rating on Rating Watch Negative (RWN).

IBAL reported a net loss of AUD72m in the full year to 31 March
2012 (FY12), largely due to impairment charges associated with
its expected disposal of legacy commercial property exposures.
These legacy exposures, in conjunction with a review of the
impact of the weaker operating environment on IBAL's business
model, were the main drivers of the RWN.  Fitch expects to
resolve the RWN within a month following further analysis of the
FY12 results and discussions with management.

IBAL's Short-Term IDR, Viability Rating and Individual Rating
were placed on RWN on 24 November 2011, largely due to
significant asset quality deterioration and high impairment
charges during the half year ended 30 September 2011.  The Long-
Term IDR was placed on RWN on 5 December 2011 following the
downgrade of IBAL's parent, UK-based Investec Bank plc (IBP;
'BBB-'/Negative/'F3') on 30 November 2011 (see rating action
commentaries on www.fitchratings.com).

Established in 1997, IBAL is a provider of niche lending and
investment banking services in Australia and is part of the
global Investec group.

The following rating actions have been taken:

Investec Bank (Australia) Limited

  -- Long-Term Foreign Currency IDR: 'BBB-'; RWN maintained
  -- Short-Term Foreign Currency IDR: 'F3', RWN maintained
  -- Viability Rating: 'bbb-'; RWN maintained
  -- Support Rating: affirmed at '3'
  -- AUD government-guaranteed debt: affirmed at 'AAA'
  -- Unguaranteed senior unsecured debt: 'BBB-'; RWN maintained
  -- Subordinated debt: 'BB+'; RWN maintained


* AUSTRALIA: ASIC Reveals Forward Plan For Insolvency Industry
--------------------------------------------------------------
The Australian Securities and Investments Commission on May 22,
2012, issued its first annual report into its supervision of
registered liquidators using it to highlight its areas of focus.

ASIC Deputy Chairman Belinda Gibson said, if a company
experiences financial difficulty and goes into external
administration, creditors are entitled to expect the business is
wound up in an orderly and fair way so they can secure the
maximum return of their money possible.

"The role of registered liquidators in this process cannot be
overstated," Ms. Gibson said. "Liquidators are entrusted with
creditors' funds and have considerable discretionary power over
assets earmarked for creditors."

ASIC said it has undertaken significant work in recent years to
sharpen its focus on the insolvency industry in order to promote
confidence in the market. This includes ensuring creditors have
confidence in the administration of insolvent companies and in
ASIC's supervision of the insolvency practitioner industry.
"Creditors need to believe that they will get the maximum return
possible," Ms. Gibson said. "Clearly, there will be costs in
winding up a business but the charges need to be reasonable and
reported in a way which allows creditors to make an informed
decision to approve or not approve."

Ms. Gibson said the community expects liquidators to execute
their professional duties with honesty and integrity, and in
accordance with the law. "Registered liquidators must be
competent and efficient. They cannot use the opportunity to put
their interests ahead of their creditors' interests. They must
bring an independent mind to their task," Ms. Gibson said.

ASIC will continue to draw on its insolvency practitioner
dedicated staff, supported by expert resources in other parts of
ASIC, with the aim of better regulating practitioners and
providing greater communication and monitoring power to
creditors.

"Moving forward, ASIC will focus on lifting our surveillance
intensity as we have the extra resources to do so; enforcement
outcomes where surveillance identifies unacceptable conduct;
providing guidance to the industry about our expectations; and
directing creditors toward more "self-help" assistance to ensure
they understand and exercise their rights and powers to oversee
the liquidation process to best protect their own interests,"
Ms. Gibson said.

"These principles underpin ASIC's supervision of the sector."

Ms. Gibson's comments follow ASIC releasing its first annual
report into its supervision of the registered liquidators
insolvency industry, detailing surveillance and enforcement
outcomes in 2011. Issues of competence, independence and
inappropriate self gain underpinned ASIC's supervisory activity.

For the calendar year 2011, ASIC opened eight new formal
investigations into registered liquidators, resulting in ASIC
cancelling the registration as an official liquidator of John
Lord   and reaching agreement with Peter Ngan that he would not
practice as a registered liquidator for two-and-a-half. Further,
ASIC obtained an undertaking from Atle Crowe-Maxwell to ensure
compliance with independence requirements when consenting to act
as official liquidator.

In June 2011, the Companies Auditors and Liquidators Disciplinary
Board (CALDB) cancelled the registration of David Mark Anderson
for failing to lodge annual returns with ASIC.

Also, the case against Stuart Ariff concluded in 2011, with the
former liquidator jailed for six years following his conviction
on 19 criminal charges brought by ASIC.

Ms. Gibson said: "Deterrence is one regulatory tool available to
ASIC in pursuing our priorities and holding gatekeepers to
account."

At the end of 2011, ASIC was conducting 10 investigations into
registered liquidators.

ASIC regulation of registered liquidators: January to December
2011 also shows ASIC completed more than 200 reviews examining
issues including practitioner independence, competence and
remuneration.

ASIC has a program of compliance visits for registered
liquidators based on risk assessment and market intelligence.
This includes complaints and information from the public and the
profession itself.

ASIC also conducted project work, including checking compliance
with independence declarations, remuneration disclosure and
insurance requirements.

"We have built resources in our insolvency practitioners group
allowing us to increase surveillance of practitioners," Ms.
Gibson said.

"Where practitioners do not meet their obligations, we will not
hesitate to take action."

In 2011, ASIC received 426 reports of alleged misconduct
concerning registered liquidators, in some instances about the
same external administration. Many of these reports (51%)
required educative outcomes for the complainants due to, for
example, creditors not fully appreciating a liquidator's duties
and obligations or the insolvency process.

At the end of 2011, there were 671 registered liquidators (of
which 523 were also official liquidators).



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


GRANDSTAR CARGO: Board OKs Plans to Liquidate Amid Losses
---------------------------------------------------------
Jeffrey Ng and Kyong-Ae Choi at The Wall Street Journal report
that Sinotrans Ltd. said Wednesday that the board of Grandstar
Cargo International Airlines, a freight forwarder jointly owned
by a unit of Sinotrans and Korean Air Lines Co., has approved
plans to liquidate the carrier amid mounting losses and
lackluster prospects in the air-freight market.

The Journal relates that Sinotrans said Grandstar Airlines, which
has already suspended flight operations, had a net loss of
340.1 million yuan dollars (US$53.8 million) in 2011, widening
from losses of 20.7 million yuan in 2010 and 94.3 million yuan in
2009.

According to the news agency, Korean Air said Wednesday the
liquidation of Grandstar was an inevitable decision owing mainly
to low cargo-carrying demand and higher costs from rising oil
prices.

"Despite possible losses from the liquidation, we regard
partnership with Sinotrans as a valuable asset and plan to
continue to seek new business opportunities in China, including
expansion of routes," South Korea's flag carrier said in an
emailed statement obtained by the Journal.

China-based Grandstar Cargo International Airlines Co., Ltd. --
http://www.grandstarcargo.com/-- provides international
scheduled and non-scheduled air cargo transportation services.
Grandstar Airlines was founded in December 2007 as a joint-
venture cargo airline 51%-owned by Sinotrans Air Transportation
Development Co. with 25% held by Korean Air.  Hana Capital Co.
and Shinhan Capital Co. own the remainder.



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


APRICA (ASIA): Members' Final Meeting Set for June 19
-----------------------------------------------------
Members of Aprica (Asia) Limited will hold their final general
meeting on June 19, 2012, at 10:00 a.m., at 19th Floor, Cameron
Commercial Centre, at 468 Hennessy Road, Causeway Bay, in Hong
Kong.

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


CELLOPARK ASIA: Members' and Creditors' Meetings Set for June 15
----------------------------------------------------------------
Members and creditors of Cellopark Asia Limited will hold their
annual meetings on June 15, 2012, at 11:00 a.m., and 11:15 a.m.,
respectively at Level 17, Tower 1, Admiralty Centre, 18 Harcourt
Road, in Hong Kong.

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


FOCUS MOTION: Creditors' Proofs of Debt Due June 25
---------------------------------------------------
Creditors of Focus Motion Investment Limited, which is in
creditors' voluntary liquidation, are required to file their
proofs of debt by June 25, 2012, to be included in the company's
dividend distribution.

The company's liquidator is:

         Kwok Lai Ngor
         Unit A, 10/F
         TAL Building, 49 Austin Road
         Jordan, Kowloon
         Hong Kong


GARMEN KINDERGARTEN: Wong Siu Loi on May Appointed as Liquidator
----------------------------------------------------------------
Wong Siu Loi on May 14, 2012, was appointed as liquidator of
Garmen Kindergarten Limited.

The liquidator may be reached at:

         Wong Siu Loi on May
         Room 603, Hang Pont Commercial Building
         31 Tonkin Street
         Cheung Shan Wan
         Kowloon


HK BEST: Members' Final General Meeting Set for June 19
-------------------------------------------------------
Members of Hong Kong Best Denki Co Limited will hold their final
general meeting on June 19, 2012, at 10:00 a.m., at 20/F,
Prince's Building, Central, in Hong Kong.

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


ILLYCAFFE ASIA: Tang Tin Sek Appointed as Liquidator
----------------------------------------------------
Tang Tin Sek on May 11, 2012, was appointed as liquidator of
Illycaffe Asia Pacific Limited.

The liquidator may be reached at:

         Tang Tin Sek
         19A, Entertainment Building
         30 Queen's Road
         Central, Hong Kong


IMPERIAL WORLD: Kam and Yu Step Down as Liquidators
---------------------------------------------------
Kam Chi Kan Elson and Yu Shi Kuen stepped down as liquidators of
Imperial World Company Limited on May 9, 2012.


LEARNING CONNECTION: Sum on May Appointed as Liquidator
-------------------------------------------------------
Sum Wai Ching Helena on May 8, 2012, was appointed as liquidator
of The Learning Connection Limited.

The liquidator may be reached at:

         Wong Siu Loi on May
         Room 603, Hang Pont Commercial Building
         31 Tonkin Street
         Cheung Shan Wan
         Kowloon


LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibonds
------------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced that
investigation of over 99% of a total of 21,855 Lehman-Brothers-
related complaint cases received has been completed.  These
include:

    * 15,769 cases which have been resolved by a settlement
      agreement reached under section 201 of the Securities and
      Futures Ordinance;

    * 3,449 cases which have been resolved through the enhanced
      complaint handling procedures required by the settlement
      agreement;

    * 2,477 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;

    * 25 cases (including minibond cases) which are under
      disciplinary consideration after detailed investigation by
      the HKMA, of which proposed disciplinary notices are being
      prepared; and

    * 93 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 40 cases.

A table summarizing the progress of the disciplinary and
complaint-resolution work in respect of Lehman-Brothers-related
complaints is available at http://is.gd/2arUoa

                     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 Sept. 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.

Affiliates Merit LLC, LB Somerset LLC and LB Preferred Somerset
LLC sought for bankruptcy protection in December 2009.

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.

Dennis F. Dunne, Esq., Evan Fleck, Esq., and Dennis O'Donnell,
Esq., at Milbank, Tweed, Hadley & McCloy LLP, in New York, serve
as counsel to the Official Committee of Unsecured Creditors.
Houlihan Lokey Howard & Zukin Capital, Inc., is the Committee's
investment banker.

On Sept. 19, 2008, the Honorable Gerard E. Lynch 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 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.

Lehman emerged from bankruptcy protection on March 6, 2012, more
than three years after it filed the largest bankruptcy in U.S.
history.  Lehman is set to make its first payment to creditors
under its $65 billion payout plan on April 17, 2012.

               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 Sept. 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
Sept. 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 215/945-700)


LEHMAN BROTHERS SOUTH: Lai and Haughey Step Down as Liquidators
---------------------------------------------------------------
Lai Kar Yan (Derek) and Darach E. Haughey stepped down as
liquidators of Lehman Brothers South Asia Limited on May 8, 2012.


LU HAN: Shiu Moon Yuen Simon Steps Down as Liquidator
-----------------------------------------------------
Shiu Moon Yuen Simon stepped down as liquidator of Lu Han Sen
Charity Fund Limited on May 14, 2012.


MACQUARIE ASIA: Commences Wind-Up Proceedings
---------------------------------------------
Members of Macquarie Asia Limited, on May 10, 2012, passed a
resolution to voluntarily wind up the company's operations.

The company's liquidators are:

         Ms. Sy Mei Ling
         36/F, Tower Two
         Times Square
         1 Matheson Street
         Causeway Bay, Hong Kong


MISHU LIMITED: Creditors' Proofs of Debt Due June 18
----------------------------------------------------
Creditors of Mishu Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by
June 18, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on May 7, 2012.

The company's liquidators are:

         Thomas Andrew Corkhill
         Iain Ferguson Bruce
         8th Floor, Gloucester Tower
         The Landmark
         15 Queen's Road
         Central, Hong Kong


NIVADA TRADING: Chiu Wai Hon Appointed as Liquidator
----------------------------------------------------
Chiu Wai Hon on May 11, 2012, was appointed as liquidator of The
Nivada Trading Co., Limited.

The liquidator may be reached at:

         Chiu Wai Hon
         Unit 201, 2/F
         Malaysia Building
         50 Gloucester Road
         Wanchai, Hong Kong


REGENT EARNING: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------
At an extraordinary general meeting held on May 8, 2012,
creditors of Regent Earning Limited resolved to voluntarily wind
up the company's operations.

The company's liquidator is:

         Lau Siu Hung
         Room 1909-10
         Nan Fung Tower
         173 Des Voeux Road
         Central, Hong Kong


RIGHT CONNECTION: Members and Creditors' Meetings Set for June 15
-----------------------------------------------------------------
Members and creditors of The Right Connection Limited will hold
their annual meetings on June 15, 2012, at 11:30 a.m., and 11:45
a.m., respectively at Level 17, Tower 1, Admiralty Centre, 18
Harcourt Road, in Hong Kong.

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



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


AIR INDIA: Files Contempt Petition Against Striking Pilots
----------------------------------------------------------
The Times of India reports that Air India on Wednesday filed a
contempt petition against striking pilots in the Delhi high court
on grounds that the agitators have failed to comply with its
previous order restraining them from undertaking the stir.

Filing the petition through counsel Lalit Bhasin, TOI relates,
Air India management said despite the court's restraint order,
several opportunities were given to the striking pilots to
resolve their issues but they failed to settle the matter.

On May 9, the report recalls, the high court had restrained over
200 agitating pilots from continuing their "illegal strike",
reporting sick and staging demonstrations, a day after the
airlines management sacked 10 pilots and derecognised their
union.

The report notes that the pilots, under the banner of Indian
Pilots Guild (IPG), are agitating over the rescheduling of Boeing
787 Dreamliner training and matters relating to their career
progression.

According to the report, the judge had also said allowing such a
strike to continue would cause irreparable loss to the company as
well as huge inconvenience to the passengers travelling by the
national carrier.

Filing an injunction suit against the pilots, counsel for AI
management Bhasin had termed the strike as illegal and said due
to the pilots' stir, the company has been compelled to cancel
some of its international flights which has resulted in extreme
hardship and also inconvenience to the passengers.

Moreover, as a result of the cancellation of flights, Air India
is facing huge financial loss of over INR10 crore per day,
Bhasin, as cited by TOI, said.

                        About Air India

Air India Ltd -- 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.  Air India had debt of INR42,570 crore and
accumulated losses of INR22,000 crore as of March 31, 2011,
according to livemint.com.

In April 2012, the Union Cabinet approved an operational
turnaround plan through an equity infusion of INR30,000 crore
(US$5.8 billion) over the next eight years.

"The Cabinet Committee on Economic Affairs (CCEA) has approved
the turnaround plan (TAP) and financial restructuring plan (FRP)
of Air India, under which the government will infuse INR30,000
crore into the airline by 2020-21, subject to certain milestones
that AI will have to meet," civil aviation minister Ajit Singh
said.


ALP NISHIKAWA: Delay in Loan Payment Cues ICRA Junk Ratings
-----------------------------------------------------------
ICRA has revised the long term rating assigned to the
INR9.06 crore term loans and the INR13.00 crore fund based
facilities of ALP Nishikawa Company Limited from '[ICRA]BB+' to
'[ICRA]D'. ICRA has also revised the short term rating assigned
to the INR6.00 crore non fund based bank limits of ANCO from
'[ICRA]A4+' to [ICRA]D.

                           Amount
   Facilities             (INR Cr)    Ratings
   ----------             ---------   -------
   Term Loans               9.06      Revised to [ICRA]D from
                                      [ICRA]BB+ (Stable)

   Fund Based Limits       13.00      Revised to [ICRA]D from
                                      [ICRA]BB+ (Stable)

   Non Fund Based Limits    6.00      Revised to [ICRA]D from
                                      [ICRA]A4+

The rating downgrade factors in the delays in servicing of debt
obligations in the recent past due to stretched liquidity
position of ANCO. The ratings are also constrained by the high
competitive intensity in the industry; project execution risk;
limited bargaining power with customers and large proportion of
sales to a few customers. Additionally the company is exposed to
supplier concentration risk owing to dependence on two vendors
for sourcing bulk of the raw material requirements though this
risk is mitigated by the availability of raw materials from
several suppliers. Nevertheless ICRA has positively factored in
the strong position of the company in the domestic automotives
rubber profile segment and moderate financial risk profile
characterised by moderate gearing. ICRA notes that Nishikawa
Rubber Company, Japan has increased its stake in the company from
20% to 50% which is expected to provide better access to the
technology of the former and greater leverage in marketing to
Japanese OEMs.

ALP Nishikawa Company Limited was incorporated in 1983 as Anand
Lescuyer Polymers Private Limited. The company was promoted by
Mr. Iqbal Singh Anand, who was in the business of export and
import of auto spare parts. In 1984, the company ventured into
manufacture of rubber sealing products in technical collaboration
with Lescuyer SA of France. In the year 1996 the company entered
into joint venture with Nishikawa Rubber Company Limited, Japan
and accordingly its name was changed to Anand Nishikawa Company
Limited. In November 2011 NRC increased its stake to 50% in the
company and its name was changed to ALP Nishikawa Company
Limited. ANCO is engaged in the manufacture of rubber profiles
such as glass run channels, windshield rubbers and bonnet seals.
ANCO has operations based at Lalru in the state of Punjab and at
Gurgaon in the state of Haryana. Mr. Iqbal Singh Anand and his
associates hold 50% of the shareholding of ANCO.


CHALLANI RANKA: ICRA Assigns '[ICRA]B+' Rating to INR5.5cr Loan
---------------------------------------------------------------
ICRA has assigned long-term rating of '[ICRA]B+' to the
INR5.5 crore cash credit facility of Challani Ranka Jewellery.

The rating factors in the highly fragmented nature of the
jewellery business with multiple players; intense competition,
and, the region-specific jewellery preferences and trade
practices. The rating is further constrained by risk of
volatility in profits due to fluctuations in silver bullion, the
company's weak financial profile with low turnover and
profitability, and, the expected stress on cash flows due to
capex in the near-term. The rating considers the long lineage of
the partners in the jewellery industry and the positive outlook
for silver jewellery given the overall increasing disposable
income and this segment's easy affordability when compared to
gold. The rating also factors in the established tie-ups with
suppliers and customers, and the brand equity of the entity in
the domestic silver jewellery market.

Challani Ranka Jewellery is a partnership firm formed in 2001 by
two brothers, Mr. Mahendar A Challani and Mr. Sumti A Challani as
a wholesale silver merchant in Chennai. The day to day operations
of the business are managed primarily by Mr. Sumti A Challani.
The family has been in the jewellery business for the past five
decades. Both Mr. Mahendar Challani and Mr. Sumti Challani are
also partners in other group entities - Anand Automobiles and
Challani Finance. Anand Automobiles is an authorized dealer of
Hero Motocorp and Challani Finance is headed by their father Mr.
R J Anand Mul - the Chairman of the Group. The entity achieved
provisional operating income of INR17.4 crore and net profit of
INR1.1 crore during FY 2012.


CHAUDHARY NURSING: Delay in Loan Payment Cues ICRA Junk Ratings
---------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]D' to the
INR7.06 crore, fund-based facilities and INR0.44 crore proposed
bank facilities of Chaudhary Nursing Home Private Limited. ICRA
has also assigned a short-term rating of '[ICRA]D' to the
INR0.50 crore, non-fund based facilities of CNHPL.

                              Amount
   Facilities                (INR Cr)    Ratings
   ----------                ---------   -------
   Fund-based facilities       7.06      [ICRA]D assigned
   Proposed bank facilities    0.44      [ICRA]D assigned
   Non fund-based facilities   0.50      [ICRA]D assigned

The ratings are primarily constrained on account of
irregularities witnessed in debt servicing by the company owing
to its stretched liquidity position caused by the decline in its
operating profitability and increased working capital
requirements. The ratings are further inhibited by the
concentration risk inherent to a single-asset company which is
exacerbated by intense competition in the local market; company's
modest scale of operations; its moderate operating metrics (as
reflected in an average occupancy rate of around 50% and per bed
day inpatient revenues of around INR2,000); and its debt-funded
capital expenditure which together with increased working capital
requirements has kept the company's capital structure leveraged.
Further, high debt repayment obligations and declining
profitability have resulted in weakening of company's debt
protection metrics in the recent years.

Though ICRA notes company's strengths in the form of promoters'
experience and reputation in the medical field; its large
institutional client base which provides visibility to revenues;
and stable revenues from space rental; however, these strengths
are offset by the above-mentioned areas of concern.

In ICRA's view, the company's ability to ensure timely debt-
servicing; scale-up its operations while improving its operating
metrics and profitability margins; and achieve favorable credit
terms from institutional client base so as to improve its working
capital position, would remain the key rating sensitivity.

Incorporated in 1988 by Dr. Virendra Singh Chaudhary, Chaudhary
Nursing Home Private Limited is a closely held-company that
commenced operations with a nursing home in Sector 19, Noida
(Uttar Pradesh). In 2003, the company's operations were shifted
to a new hospital property - named Vinayak Hospital, set-up in
Sector 27, Atta, Noida (Uttar Pradesh). Land for the new hospital
was allotted to the company by the Noida Authority on a lease for
90 years, starting July 1992.

Vinayak Hospital is a multi-specialty hospital having a licenced
capacity of 150 beds at present (operational bed inventory of
66). The promoter - Dr. V.S. Chaudhary along with his wife -
Mrs. Renu Chaudhary and son - Mr. Siddharth Chaudhary is closely
involved in day to day management of the hospital. The hospital
provides services such as general surgery, laboratory testing,
radiology and imaging, physiotherapy, rehabilitation, and
treatments in obstetrics and gynaecology, orthopaedics, and
dermatology.

Apart from providing medical services, some space in the hospital
building has been rented to Yes bank Limited and Guardian
Pharmacy.


GEE CEE: ICRA Puts '[ICRA]B+' Rating on INR40.23cr Loans
--------------------------------------------------------
ICRA has assigned the long-term rating of '[ICRA]B+' to the
INR40.23 crore, fund-based facilities and the short-term rating
of '[ICRA]A4' to the INR95.40 crore, non-fund based limits and
the INR0.37 crore, unallocated limits of Gee Cee Corporation Pvt.
Ltd.

                               Amount
   Facilities                 (INR Cr)    Ratings
   ----------                 ---------   -------
   Fund based facilities-       30.00     [ICRA]B+ assigned
   Cash Credit

   Fund-based facilities-       10.23     [ICRA]B+ assigned
   Term loans

   Non-fund based facilities    95.40     [ICRA]A4 assigned

   Non-fund based facilities-    0.37     [ICRA]A4 assigned
   unallocated

The assigned rating takes into account GCCPL's recent
establishment, its modest scale of operations and moderate
financial risk profile, characterized by gearing of 1.79 times as
on 31 March 2011 and subdued debt coverage indicators, as
indicated by interest coverage of 1.66 times for FY11 and low net
cash accruals as compared to total debt (as reflected by net cash
accruals to total debt ratio of 6% as on 31 March 2011). The
rating is also constrained by the moderate order book position of
GCCPL, its high working capital intensity and concentration risks
arising out of presence majorly in Overhead Equipment (OHE)
conductor segment with supplies mainly to the Indian Railways,
which exposes the company to any slowdown in investments in
railway electrification in the country. ICRA's ratings, however,
draw comfort from GCCPL' presence in niche segment where
promoters have more than three decades of experience, its
established relationship with its main client (Indian Railways)
with low receivable risk and protection against volatility in raw
material prices (on the back of price escalation clauses in its
contract with the Indian Railways).

In ICRA's view, the key rating sensitivities would be increase in
the scale of operations with reduction in working capital
intensity and improvement in credit metrics.

Incorporated in October 2005 as a wholly-owned subsidiary of Gee
Cee Metals Private Limited, Gee Cee Corporation Private Limited
(GCCPL) is engaged in the manufacture of OHE conductors required
for electrification of railway tracks. GCCPL is part of the
diversified Gee Cee Group engaged in the supply of copper and its
alloy based products, insulated cables and FMCG (packaged mineral
water). The manufacturing unit of GCCPL is situated on 50,000 sq.
metres of land in Pantnagar, Uttaranchal and has an installed
capacity of 2000 MT/month (on a three-shift basis). The unit
commenced its commercial operations in January 2011.

Recent Results:

GCCPL reported a net profit of INR0.71 crore on an operating
income of INR35.64 crore in FY11 as against a net profit of
INR0.04 crore on total revenues of INR7.14 crore in FY10.


GRAH AVAS: ICRA Rates INR10cr Term Loan at '[ICRA]B+'
-----------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' to INR10 crore
working capital term loan of Grah Avas Vikas Private Limited.

The rating draws comfort from the long track record of GAVPL's
promoters in real estate business; healthy booking in its on-
going project, which lowers the market risk and the fact that the
debt has been tied up. The rating is however constrained by the
moderate size of the company's operations, significant supply in
the vicinity and low collection efficiency (~66%) in the ongoing
project, which may put pressure on its cash flows. The rating
also takes into account the exposure to execution risk, as the
project is in construction phase and is significantly larger than
the ones executed the company in the past.

Grah Avas Vikas Pvt Ltd, incorporated in July 1998, is involved
in real estate and construction activities in the states of
Uttarakhand and Uttar Pradesh. The company has, in the past,
developed projects in the cities of Ghaziabad (Uttar Pradesh),
Dehradun (Uttarakhand) and Mussoorie (Uttarakhand). The promoters
have developed properties in residential, commercial, retail and
hospitality segments of real estate. The Group has constructed
around 40 residential and commercial buildings in residential
colonies in Ghaziabad- Vaishali & Kaushambhi, consisting of more
than 500 residential units, three group housing complexes in
Dehradun consisting of around 200 flats and one hotel in
Mussoorie, consisting of 24 rooms.

Recent Results:

In FY2011, Grah Avas Vikas Private Limited reported operating
income of INR10.37 crore (previous year INR9.64 crore) and net
profit of INR0.46 crore (previous year INR0.42 crore).


GREAT OFFSHORE: Lenders May Opt for Debt Restructuring
------------------------------------------------------
The Economic Times reports that the lenders of Great Offshore Ltd
may consider restructuring the company's debt due to delay on its
part in servicing bank loans.  Banks have an exposure of
INR1,137 crore to GOL, a company largely owned by Bharati
Shipyard.

Sources from the banking industry said lenders may approach the
corporate debt restructuring (CDR) cell -- a forum where lenders
and borrowers mutually agree to rework the terms of loans -- to
revive the company, according to the report.

Based in Mumbai, India, Great Offshore Ltd provides offshore
oilfield services to upstream oil and gas producers to carry out
offshore exploration and production activities.  The company
offers its services in India, as well as in North Sea, the Middle
East, South Africa, and Southeast Asia.


GREAT OFFSHORE: Delays in Loan Payment Cue CRISIL Junk Ratings
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Great
Offshore Ltd to 'CRISIL D/ CRISIL D' from 'CRISIL
BB+/Negative/CRISIL A4+'.

                               Amount
   Facilities                (INR Mln)      Ratings
   ----------                ---------      -------
   Letter of credit & Bank     1,850        CRISIL D
   Guarantee

   Long-Term Loan              8,020        CRISIL D

   Proposed Letter of Credit     650        CRISIL D
   & Bank Guarantee

   Proposed Long-Term Bank     2,980        CRISIL D
   Loan Facility

   Short-Term Loan             1,500        CRISIL D

The rating downgrade reflects instances of delay by GOL in
servicing its debt; the delays have been caused by weak
liquidity. During 2011-12 (refers to financial year, April 1 to
March 31), GOL's cash flows were sluggish because of sub-optimal
fleet deployment and delay in deployment of its 350-foot jack-up
rig (estimated cost of about INR10 billion). In addition, the
company's short-term debt levels have risen considerably. These
factors have adversely impacted GOL's liquidity, especially in
the second half of 2011-12, and its key debt protection metrics.
Furthermore, the company's debt levels remained high in 2011-12
because of its large debt-funded capital expenditure (capex)
toward expansion of its fleet and refurbishment of older vessels.

CRISIL believes that GOL's cash flows will remain under stress
because of continued delays in deployment of its 350-foot jack-up
rig. The rig is likely to be operational not before the second
half of 2012-13. GOL has, however, been able to deploy its other
rig (Badrinath) and six other vessels - although this will support
the company's revenue growth, its liquidity is unlikely to
improve significantly in the near term.

                      About Great Offshore

Great Offshore Ltd is one of the largest offshore oil field
service providers in India, offering drilling and offshore
support services to oil and gas companies for exploration and
production activities. The company was formed when the offshore
division of The Great Eastern Shipping Company Ltd was demerged
into a separate company in October 2006. GOL has over two decades
of operational experience in the offshore oil field services
business, including the years it was the offshore division of
GESCL. GOL, as an erstwhile division of GESCL, is India's first
private-sector company to enter the offshore business, with the
purchase of an offshore support vessel in 1983. The company
entered the drilling business with its first rig in 1987. It was
also the first to own a platform supply vessel, and pioneered the
fire-fighting vessel segment with two dedicated fire-fighting
support vessels.

GOL has a total fleet of 45 vessels, comprising drilling assets,
support vessels, construction barges and tugs. It has four wholly
owned subsidiaries: Deep Water Services (India) Ltd, Great
Offshore Fujairah LLC-FZC, KEI-RSOS Maritime Ltd, and Great
Offshore Salvage Services. GOL also holds a 26 per cent equity
stake in a joint venture, United Helicharters Pvt Ltd. Bharati
Shipyard (BSL), along with its subsidiaries, is the single-
largest shareholder in GOL, with a stake of around 49.7 per cent.

For 2010-11, GOL reported, on a consolidated basis, a profit
after tax (PAT) of INR248 million on net sales of
INR9.47 billion, against a PAT of INR2.01 billion on net sales of
INR11.66 billion for 2009-10. For the nine months ended
December 31, 2011, GOL, on standalone basis, reported a PAT of
INR696.8 million on net sales of INR6.07 billion, compared with a
PAT of INR566.5 million on net sales of INR6.30 billion for the
corresponding period of the previous year.


JET AIRWAYS: To Sack 72 Expat Pilots; To Take In Locals
-------------------------------------------------------
The Economic Times reports that Jet Airways Ltd has decided to
terminate contracts of 72 of its high-cost expatriate pilots in
an attempt to prune costs and navigate itself out of the
turbulence in the Indian aviation sector.

The news agency relates that the Naresh Goyal-promoted airline
sent notices to a section of its expat pilots last week.
Nikos Kardassis, CEO, Jet Airways, confirmed the development to
ET and said this was necessitated by a curtailed monsoon schedule
and also the availability of pilots to tap from the local pool.

"We are reducing the level of operations for the monsoon season
(as we do every year) and speeding up the process of training
qualified Indian pilots from co-pilots to captains. We are also
looking to recruit qualified Indian pilots available in the
market at the moment," Mr. Kardassis said in a response to a
query from ET.

ET notes that the sacking of expat pilots, who till recently were
a coveted resource for domestic airlines, is said to be the first
and the biggest in Indian aviation.  However, the firing exercise
is unlikely to create a political storm as it involves only
expats, says ET.

                        About Jet Airways

Jet Airways (India) Ltd (BOM:532617) --
http://www.jetairways.com/-- provides air transportation.  The
geographic segments of the company are domestic and
international.  The company has a frequent flyer program named
Jet Privilege wherein the passengers who uses the services of the
airline become services of the airline become members of Jet
Privilege and accumulates miles to their credit.  The company's
subsidiaries include Jet Lite (India) Limited, Jetair Private
Limited, Jet Airways LLC, Trans Continental e Services Private
Limited, Jet Enterprises Private Limited, Jet Airways of India
Inc., India Jetairways Pty Limited and Jet Airways Europe
Services N.V.  On April 20, 2007, the company acquired Sahara
Airlines Limited.

                          *     *     *

Jet Airways posted three consecutive consolidated net losses of
INR9.6 billion, INR4.2 billion, and INR858.4 million for the
years ended March 31, 2009 through 2011.


SALAXMI DISTRIBUTORS: ICRA Rates INR3cr Loan at '[ICRA]B+'
----------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR3.00 crore cash
credit facilities of Salaxmi Distributors. ICRA has also assigned
an '[ICRA]A4' rating to the INR3.00 crore short term non fund
based facilities of Salaxmi Distributors.

                           Amount
   Facilities             (INR Cr)    Ratings
   ----------             ---------   -------
   Cash Credit               3.00     [ICRA]B+ assigned
   Letter of Credit/         3.00     [ICRA]A4 assigned
   Bank Guarantee

The rating factors in promoter experience in the pharmaceuticals
industry, distributorship for leading pharmaceutical companies
operating in the Indian pharma industry and profitability
business. However the financial profile of the company is
stretched with moderately high working capital intensity and weak
coverage indicators. Going forward the company is expected to
maintain profitability though the financial profile is expected
to remain moderate.

Salaxmi Distributors is engaged in the business of
distributorship of medicines since 1993-94 and has established
strong retailer base of around 1000 retailers. The company has
dealership of more than 20 companies which includes a mix of MNCs
and Indian companies. The company supplies medicines as well as
Injectables to various retailers. It has a sales staff of 4
employees which collects the orders from various retailers and
also responsible for collecting payments. Among the biggest
distributors are Sanofi Aventis, Fresenius Kabi, Novartis Pharma,
Mankind Pharma, Abbott Pharma. The company gets credit period of
0-8 days depending upon the company and the product. However, the
company has to offer credit period of 2-3 months to various
retailers. The gross margins of the company are in the range of
8-10% for most of the product. The business is characterized by
control on the number of distributors for various companies as
the governing body of distributors at National level grants
permission for new distributors depending upon the growth rate
and business activity. As a result of same, the distributors
don't undercut resulting in pricing parity from all distributors.
Salaxmi supplies to over 1000 retailers and has diversified
distribution base by virtue of being into retail business. This
leads to low client concentration. Further drugs have non-elastic
demand leading to low volatility and correlation with other
macroeconomic indicators such as GDP growth. The company has been
in the business for last 20 years which has led to established
relationship with retailer base. The sales of the firm are in the
range of around INR20 crores which the company expects to
maintain. Salaxmi also supplies Medical Diagnostic equipments of
large value to various hospitals, though it is not on a regular
basis. Depending upon the needs of the client/tender floated by
government agencies the company supplies the equipment. This line
of business contributes 15% of the revenues in normal course of
operations though in case of large order the contribution may
increase.

The company revenues have seen chequered growth on account of
Medical diagnostic business which is in the nature of project
business. During FY11, the company got one large order to the
tune of INR18 crores which led to jump in revenues to INR36.3
crores compared to INR17.6 crore for FY10 and INR21.1 crore for
FY12. The profitability has improved in the last three years by
virtue of higher economies of scale and control over costs. The
PBT margins stood at 7.1% for FY12 P and 4.2% for FY11. Company
Profile Salaxmi Distributors is engaged in the business of
distributorship of medicines since 1993-94 and has established
strong retailer base of around 1000 retailers. The company has
dealership of more than 20 companies which includes a mix of MNCs
and Indian companies. The company supplies medicines as well as
Injectables to various retailers. It has a sales staff of 4
employees which collects the orders from various retailers and
also responsible for collecting payments. Among the biggest
distributors are Sanofi Aventis, Fresenius Kabi, Novartis Pharma,
Mankind Pharma, Abbott Pharma.

Recent Results

During FY12, as per the provisional figures Salaxmi Distributors
has reported an operating profit of INR2.2 crores on an operating
income of INR21.1 crores.


SHYAM FERROUS: ICRA Assigns 'B+' Rating to INR14.6cr Loans
----------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR7.0 crore fund-
based bank facilities and the INR7.6 crore term loans of Shyam
Ferrous Limited.

                           Amount
   Facilities             (INR Cr)    Ratings
   ----------             ---------   -------
   Fund-Based Limits         7.0      [ICRA]B+ assigned
   Term Loans                7.6      [ICRA]B+ assigned

The assigned rating takes into account the aggressive capital
structure of SFL on account of largely debt-funded capital
expenditure in the past; loss-making operations in 2009-10 and
2010-11, on account of increased raw material and power costs;
weak cash flow position due to low profits and rising working
capital requirements and cyclicality inherent in the steel
industry, which is currently passing through a period of
weakness. The rating, nevertheless, favourably factors in the
significant experience of the promoters in the steel industry;
healthy revenue growth in last three years on the back of
capacity additions and significant improvement in operating
profitability in the first eight months of 2011-12.

Incorporated in 1996, SFL is engaged in the manufacture of mild
steel (MS) ingots and thermo-mechanically treated (TMT) bars. The
manufacturing facility of the company is located at Devarapalli
Hindupur in the Ananthapur district of Andhra Pradesh. The
installed capacity of the facility for MS ingots is 19,500 metric
tonnes per annum (MTPA) and that for TMT bars is 60,000 MTPA. The
customer base of the company mainly comprises traders and
retailers based in and around Bangalore.

Recent Results:

In 2010-11, SFL reported a loss of INR0.04 crore on the back of
net sales of INR49.7 crore as against a loss of INR0.29 crore on
the back of net sales of INR37.2 crore in 2009-10. As per the
provisional results for the period from April to November 2011,
the company reported a PAT of INR0.1 crore on the back of net
sales of INR49.2 crore.


TATA STEEL: Moody's Says Relief Still Some Months Away
------------------------------------------------------
Moody's Investors Service says that Tata Steel's (Ba3 stable) Q4
2012 results showed a moderately improving trend from the
previous quarter as input costs, especially those of coking coal,
declined more rapidly than the 3.5% fall in average steel prices.
Accordingly, Moody's believes that the company's previous Q3 FY12
results marked the recent nadir in margins, when a surge in raw
material prices and slower demand for steel in Europe combined to
reduce margins, and led to the Group reporting a net attributable
loss of US$118 million for that period. By contrast, Q4 FY12 saw
Tata Steel return to a net profit of US$85 million, bringing the
full year's net profit to US$1,060 million. The trend seen in the
last quarter, if continued, would be supportive of Tata Steel's
ratings, which were becoming more vulnerable to a deterioration
of its overall financial performance caused by its European
businesses.

In 2012, Moody's expects global steel demand to grow by less than
the 6% seen in calendar year 2011, driven by slower growth in
China and less demand from Europe. Tata Steel is expecting
India's demand for steel to grow by 7% in 2012 after the
relatively weak growth of 4% in 2011.

While sales of Tata Steel's European operation, Tata Steel Europe
(TSE, B2 negative), declined to 14 million tonnes in FY12, they
could be lower still in FY13 as a large blast furnace is relined
and upgraded. By contrast, the Indian operations are working flat
out and have the benefit of captive iron ore activities. The new
3 million tonne per annum (mtpa) plant at Jamshedpur is now
partially operational and should roll 1 million tonnes of steel
in FY2013.

In FY2012, Tata Steel's consolidated reported EBITDA margin was
10%, down from 14% in FY2011. Total EBITDA of US$2.66 billion
exceeded capex incurred of US$2.4 billion. Gross debt reduced by
US$150 million over the year ending at US$11.77 billion, while
the Group maintains good liquidity with US$2.4 billion of cash
and cash equivalents. EBITDA/interest on an unadjusted basis fell
from 4.3x in FY11 to 3.2x in FY12, which is marginal for the
rating range.

Tata Steel is pushing on with the 6mtpa Greenfield integrated
steelworks in Odisha at an estimated total cost of US$6.8
billion, where initial production could start in FY14.
Approximately US$750 million of the total US$4.4 billion cost for
Phase 1 (3 mtpa) of the project has been spent and Group capex of
US$2.5 billion is anticipated in FY13, primarily for this
project.

TSE improved EBITDA/tonne from -US$46/t in Q3 FY12 to US$8/t in
Q4. This was assisted by a sharp inventory reduction with TSE
selling 250,000 tonnes more steel than it made, as plants were
mothballed, compared to 270,000 tonnes of "over-production" in
Q3. The 520,000 tonne swing supported the cash flow even though
the average selling price of the finished steel was US$1,132/t in
Q4, lower than the US$1,191/t recorded in Q3. Overall, Group
gross debt reduced by US$626 million in Q4, after including the
benefit of a 4.3% appreciation of the INR.

The squeeze on operations outside India is also apparent when
looking at the changes in capital employed between December 2011
and March 2012. Capital employed in all the Group's steel
businesses declined by INR77 million, but within the standalone
Indian entity, the overall capital employed in the steel business
increased by INR23.3 billion or US$458 million.

"Another lurch downwards in European demand would not be helpful
for Tata Steel in the short-term and would pressure the
subsidiary's rating (B2, negative)," says Alan Greene, Vice
President-Senior Credit Officer at Moody's, and lead analyst for
both Tata Steel and TSE. "TSE's EBITDA will remain volatile but
broadly positive until the over-capacity in Europe is resolved.
Meanwhile, TSE continues to drive productivity and cost reduction
measures in order to maintain its position", Mr. Greene adds.

Moody's outlook for Tata Steel going forward is cautiously
supportive of its credit profile. The Group will benefit from
increasing Indian output which should deliver EBITDA of over
US$300/t and move the Group average comfortably above US$100/t.
At the same time, the Benga mine in Mozambique, where Tata Steel
has a 35% stake, is shipping coking coal in the next few months
and this can be used by either TSE or TSL. The Group's ratings
reflect the underpinning Tata Steel provides to TSE in terms of
its capacity, and its track record of past support in this
respect. Apart from TSE, the biggest risk to Tata Steel is from
the Indian economy in terms of slower growth and high inflation
which are not the ideal backdrop for new capacity additions. At
present, India is a net importer of steel, but once this cushion
goes the dynamics of the industry could change markedly.
Conversely, a weaker Rupee would support competitiveness in
export markets.


TEX STYLES: ICRA Suspends '[ICRA]BB-' Rating on INR3.18cr Loan
--------------------------------------------------------------
ICRA has suspended '[ICRA]BB-' rating assigned to the INR3.18
crore, long term loans & '[ICRA]A4' rating to the INR4.00 crore
short term fund based and non fund based facilities of Tex Styles
International Private Limited. The suspension follows ICRA's
inability to carry out a rating surveillance in the absence of
the requisite information from the company.

According to its suspension policy, ICRA may suspend any rating
outstanding if in its opinion there is insufficient information
to assess such rating during the surveillance exercise. ICRA will
withdraw the rating in case it remains under suspension for a
period of three years.

Incorporated in 2008, Tex Styles International Pvt. Ltd. is
engaged in export of readymade garments manufactured on made-to-
order basis. The present directors of the firm include Mr. Deepak
Bhavnani and Mrs. Jaya Bhavnani. TSIPL derives its sales entirely
through exports and mainly caters to countries like France, UK
and USA. The company has set up its manufacturing units at Vasai,
with a production capacity of 6.5 lakh pieces per annum. TSIPL's
related concerns, M/s Tex-Styles International and M/s Hi-Tech
Fashions are also engaged in the similar line of business since
1981.


UDAYA KRISHNA: ICRA Assigns 'B+' Rating to INR32.45cr Loans
-----------------------------------------------------------
ICRA has assigned long-term rating of '[ICRA]B+' for
INR17.45 crore term loan and INR15.00 core fund based limits of
Udaya Krishna Steel Rolling Mills Private Limited.

                           Amount
   Facilities             (INR Cr)    Ratings
   ----------             ---------   -------
   Term loan                17.45     [ICRA]B+ assigned
   Cash credit limits       15.00     [ICRA]B+ assigned

The assigned rating is constrained by highly fragmented nature of
the secondary steel industry with low entry barriers; moderate
capacity utilization of the plant and relatively small scale of
operations. The rating is also constrained by high customer
concentration risk with top 5 customers accounting for 74% of
9MFY2012 sales and high gearing of 2.39 times as on March 31,
2011. ICRA also notes that the cyclicality inherent in the steel
industry makes cash flows of players like USRMPL volatile. The
ratings, however, favorably factor in the long experience of the
promoters in the iron & steel industry and integrated plant with
facilities to manufacture MS billets and TMT bars.

Incorporated in 2010, Udaya Krishna Steel Rolling Mills Private
Limited is engaged in the manufacturing of MS billets and TMT
bars. The plant is located at Reddypalli Village, Chegunta
Mandal, Medak District, Andhra Pradesh, about 45 Km from
Hyderabad with an installed capacity of 39,000 MTPA (metric ton
per annum) 63,000 MTPA for MS billets and TMT bars respectively
and is operational from March 2011.

Recent Results:

For FY2011, the company reported an operating income of INR1.78
crore and operating loss of INR0.25 crore.


UTKAL GALVANIZERS: ICRA Cuts Ratings on INR62.88cr Loans to 'D'
---------------------------------------------------------------
ICRA has revised downwards the long term rating assigned to the
INR0.38 crore term loan and INR17.00 crore cash credit facilities
of Utkal Galvanizers Limited from '[ICRA]C' to '[ICRA]D'.

                           Amount
   Facilities             (INR Cr)    Ratings
   ----------             ---------   -------
   Fund Based Limit-        0.38      [ICRA]D downgraded
   Term Loan

   Fund Based Limit-        17.00     [ICRA]D downgraded
   Cash Credit

   Non Fund Based Limit-    10.00     [ICRA]D downgraded
   Letter of Credit

   Non Fund Based Limit-    35.50     [ICRA]D downgraded
   Bank Guarantee

ICRA has also revised downwards the short term rating assigned to
the INR45.50 crore non fund based bank facilities of UGL from
'[ICRA]A4' to '[ICRA]D'. The rating actions factor in the
constant over utilisation of working capital limits and
continuing devolvement of letter of credit by UGL owing to its
stretched liquidity position.

Utkal Galvanizers Limited, incorporated in 1979, is engaged in
executing turnkey projects for power transmission and
distribution. The company is also involved in manufacturing
transmission towers and poles, with an installed capacity of
30,000 metric tonne per annum (MTPA) and 1.5 lakh pieces per
annum respectively. The manufacturing facility of the company is
located at Kapursing, Orissa.


VITROMED HEALTHCARE: ICRA Assigns 'BB' Rating to INR9cr Loan
------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]BB' to the INR9
crore, fund-based facilities and a short-term rating of
'[ICRA]A4' to the INR1 crore, non-fund based facility of Vitromed
Healthcare. Outlook on the long-term rating is stable.

                           Amount
   Facilities             (INR Cr)    Ratings
   ----------             ---------   -------
   Fund-Based Facilities     9.0      [ICRA]BB (Stable) assigned
   Non Fund Based            1.0      [ICRA]A4 assigned
    Facilities

The ratings derive strength from Vitromed's experienced promoters
with strong technical background who facilitate cost efficiencies
and repeat business for the firm; the firm's established track
record of exports as reflected in healthy growth rates; and its
stable job-work business from group company Poly Medicure Limited
(Polymed). The rating also favourably factors in the healthy
demand prospects for medical devices internationally as well as
in the domestic market, which provides growth visibility to the
firm. The ratings are, however, constrained by the firm's
vulnerability to regulatory changes in the countries of export;
and susceptibility of its revenues to adverse fluctuations in
exchange rate given the firm's dependency on exports. Further,
the ratings are also inhibited by the intense competition in the
medical disposables as well as personal care products' sector in
the country; and the firm's moderate return indicators as a
result of subdued performance of the personal care products'
division. Being constituted as a partnership firm, Vitromed is
also exposed to risks arising from withdrawals from capital,
dissolution etc.

In ICRA's view, the key rating sensitivity is the firm's ability
to maintain growth in turnover and improved profitability
margins; and to maintain partners' capital and gearing at
comfortable levels.

Established in 1972 as Shailendra Engineering Works by Mr. Jugal
Kishore Baid, Vitromed was initially involved in manufacturing of
miscellaneous metal items such as barbed wire, tin containers,
hospital furniture etc. till 1997. However the firm gradually
switched to manufacturing of medical disposable items from 1997
onwards. With change in its operational profile, name of the firm
was changed to Vitromed Healthcare in November 2005. At present,
Mr. Jugal Kishore Baid, along with his youngest son- Mr. Vishal
Baid, is actively involved in managing the firm.

At present, the firm has two segments namely medical disposables
and bio-tech division. Under the medical disposables division,
the firm is involved in manufacturing low-moderate risk medical
disposable products including variations of Intra-venous (IV)
Cannula, catheters, urine collection bags, tubes, blood taking
sets etc. The firm manufactures products on job-work basis for
its group company - Poly Medicure Limited as well as for direct
exports. The bio-tech division was launched in 2007-08 with the
firm setting up a new manufacturing facility in Sitapura
Industrial Area in Jaipur, Rajasthan. Under this division, the
firm launched natural personal care products such as Aloe Vera
Juice, Hand Disinfectant, Rose Water, Aloe Skin Gel etc. under
the brand "Vitro Naturals". In terms of revenue-composition, job-
work continues to be the main segment accounting for more than
50% of the firm's total revenues.



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


GODO KAISHA: S&P Lowers Rating on JPY0.9BB Class F Notes to 'D'
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class D and F notes issued under the Godo Kaisha Orso Funding
CMBS 7 transaction in July 2007, and affirmed its ratings on the
class B, C, and E notes. "At the same time, we have withdrawn our
rating on the interest-only class X notes issued under the same
transaction," S&P said.

"Of the four loans and two tokutei mokuteki kaisha (TMK) bonds
(extended to or issued by six obligors) that initially backed the
transaction, only two loans remain. The two remaining loans,
which both defaulted, originally represented a combined 45% or so
of the total initial issuance amount of the notes," S&P said.

"We lowered to 'CCC (sf)' from 'B- (sf)' our rating on class D
primarily because we revised downward our assumptions for the
likely collection amounts from the properties backing the
transaction's two remaining loans as set forth," S&P said:

    One of the transaction's two remaining loans is backed by an
    office/retail complex in Chiba Prefecture. The loan, which
    defaulted in April 2012, originally represented about 19.5%
    of the total initial issuance amount of the notes. "We
    lowered our assumption for the likely collection amount from
    the office/retail complex after considering a number of
    factors, such as the performance of the property in question.
    Under our revised assumption, we currently assume the value
    of the property to be about 29.9% of our initial underwriting
    value.  This follows a previous downward revision to our
    assumption in June 2011, when we estimated the value of the
    property to be about 51.6% of our initial underwriting
    value," S&P said.

    "The other remaining loan is currently backed by seven office
    buildings and rental condominiums situated primarily in
    Tokyo, Osaka, and Fukuoka. The loan, which defaulted in
    April 2011, originally represented about 25.9% of the total
    initial issuance amount of the notes. We lowered our
    assumption for the likely collection amount from the seven
    properties after considering a number of factors, such as the
    performance of the properties in question. Under our revised
    assumption, we currently assume the combined value of the
    properties to be about 60.9% of our initial underwriting
    value, whereas we estimated the value of the properties to be
    about 62.9% of our initial underwriting value as of
    August 2010," S&P said.

"Meanwhile, one of the transaction's underlying loans, which was
backed by a mechanical car park in Kagoshima Prefecture, was
impaired. The loan, which defaulted in April 2011, originally
represented about 3.1% of the total initial issuance amount of
the notes. We lowered to 'D (sf)' from 'CC (sf)' our rating on
class F because we have confirmed that the principal on class F
was written down on the principal and interest payment date in
May  2012. On Jan. 26, 2012, we had lowered to 'CC (sf)' from
'CCC (sf)' our rating on class F because, although the sale of
the car park backing the above loan was completed, we found that
the outstanding principal on the loan exceeded the amount of
proceeds collected through the sale of the car park in question
and effective principal loss had occurred to the class F, the
most subordinated class of this transaction," S&P said.

"Since the class A notes--rated 'AAA (sf)' up to our withdrawal
of the rating following full redemption--have been fully
redeemed, no notes rated 'AA- (sf)' or above with an outstanding
principal balance remain under this transaction. Accordingly, we
have withdrawn our rating on the interest-only class X notes in
line with our criteria for rating interest-only securities," S&P
said.

"We affirmed our 'A(sf)' rating on class B and our 'BB (sf)'
rating on class C. These affirmations are based on our view that
credit enhancement levels for these classes have increased due to
progress in the redemption of the notes," S&P said.

"Orso Funding CMBS 7 Trust is a multiborrower commercial
mortgage-backed securities (CMBS) transaction. The floating-rate
notes were initially secured by four loans and two TMK bonds
extended to or issued by six obligors. The loans and the TMK
bonds were originally backed by 42 real estate properties. The
transaction was arranged by Bear Stearns (Japan) Ltd., Tokyo
Branch, and Premier Asset Management Co. acts as the servicer for
this transaction," S&P said.

"The rating reflects our opinion on the likelihood of the full
payment of interest and ultimate repayment of principal by the
transaction's legal final maturity date in May 2014 for the class
B to F notes," S&P said.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an asset-backed security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities. The Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

If applicable, the Standard & Poor's 17g-7 Disclosure Report
included in this credit rating report is available at:

       http://standardandpoorsdisclosure-17g7.com

RATINGS LOWERED
Godo Kaisha Orso Funding CMBS 7
JPY50.3 billion floating-rate notes due May 2014
Class       To          From         Initial issue amount
D           CCC (sf)    B- (sf)      JPY5.4 bil.
F           D (sf)      CC (sf)      JPY0.9 bil.

RATINGS AFFIRMED
Godo Kaisha Orso Funding CMBS 7
Class       Rating      Initial issue amount
B           A (sf)      JPY5.4 bil.
C           BB (sf)     JPY5.4 bil.
E           CCC (sf)    JPY5.9 bil.

RATING WITHDRAWN
Godo Kaisha Orso Funding CMBS 7
Class   Rating      Initial notional principal
X       AAA (sf)    JPY50.3 bil.



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


AORANGI SECURITIES: Court Asked to Decide on Funds Distribution
---------------------------------------------------------------
NBR Online reports that the High Court in Christchurch is being
asked to give directions about the repayment of funds from
Hubbard Funds Management.

The investors, owed NZ$82 million, were initially close friends
and family of the late Allan Hubbard but the number grew to about
300 portfolios, NBR Online says.

The report notes that Mr. Hubbard never issued a prospectus or
investment statement or set up a trustee.

According to NBR Online, statutory managers Grant Thornton, via
lawyer Frazer Barton, told the court that the funds were valued
at about NZ$44 million and that the late Mr. Hubbard's accounts
were largely fictional.

NBR Online says the court is being asked whether Grant Thornton
should treat the fund as a collection of separate portfolios or a
pool of funds.

According to the report, Mr. Hubbard had set up a holding company
and allocated shares to investors on the basis of the amount of
funds they invested.

But Grant Thornton said the individual portfolios were created
for each investor and some had been invested for longer than
others. If paid out on this basis, some investors would take
losses, the report notes.

NBR Online reports that investors' lawyer Peter Whiteside said an
investor had polled 160 fellow investors and they had nearly all
indicated they wanted the funds pooled and paid out in proportion
to what they invested.

Mr. Barton, for Grant Thornton, told NBR Online he expects
Justice Lester Chisholm might call for more representations.

But Mr. Barton hoped for a ruling in the next four weeks, given
the need to act speedily in spite of the complexities, adds NBR
Online.

                     About Aorangi Securities

Aorangi Securities Ltd was incorporated in 1974 and is solely
controlled by the Hubbards.

On June 20, 2010, Aorangi Securities and seven charitable trusts
were placed into statutory management, and Allan and Jean Hubbard
were also placed into statutory management as "associated
persons" of those entities.  The seven charitable trusts included
in the statutory management are Te Tua, Otipua, Oxford, Regent,
Morgan, Benmore and Wai-iti.  Trevor Thornton and Richard Simpson
of Grant Thornton were appointed as statutory managers.

The Temple Bar Family Trust and Barns Charitable Trust were also
put into statutory management in September 2010 on recommendation
from the Securities Commission.  Hubbard Churcher Trust
Management and Forresters Nominees Company were also added to the
list of businesses under management by Trevor Thorton, Richard
Simpson and Graeme McGlinn on September 20, 2010.

On June 20, 2011, the Serious Fraud Office laid 50 charges under
Crimes Act against Allan Hubbard in relation to its investigation
into the affairs of Aorangi Securities Ltd; Hubbard Management
Funds; and ASL directors Allan and Margaret (Jean) Hubbard.

The SFO dropped the fraud charges against Allan Hubbard following
Mr. Hubbard's death on September 2.  Mrs. Hubbard was also
removed from statutory management, effective on Nov. 13, 2011.


BLUE CHIP: Genworth Tips AUD50-Mil. To Cover Blue Chip Claims
-------------------------------------------------------------
Fairfax NZ News reports that mortgage insurer Genworth Australia,
which last month postponed its Australian public listing due to
"elevated losses", has had to tip nearly AUD50 million into its
New Zealand branch to cover claims resulting from loans made to
victims of failed finance company Blue Chip.

The news agency says the AUD49.2 million cash injection in the
2011 financial year was revealed in the mortgage insurer's latest
accounts, and came despite an agreement in 2010 with GE Money in
New Zealand to share losses on loans made to people who bought
apartments as investments from Blue Chip.

According to Fairfax NZ News, Sunday Star-Times reported last
year that Genworth had struck a deal with GE Money whereby it
only partially pays claims associated with loans made to Blue
Chip victims.

Fairfax NZ News notes that the latest accounts for the New
Zealand branch of Genworth state that in 2011, the company
continued to pay sizeable claims as a result of the poor quality
of business "originated from one of the key customers" which were
originated by "certain persons".

It also said weak housing market conditions also contributed to
the frequency and severity of claims, the report says.

New Zealand has been a disaster for Genworth.  After losses of
NZ$56.4 million in 2009, NZ$17.7 million in 2010, the New Zealand
branch recorded losses of NZ$9.8 million in 2011, and avoided
slipping into negative equity only as a result of the Australian
cash injection.

It still has outstanding claims of NZ$27 million, compared to
NZ$54.8 million at the start of 2010.

Although Blue Chip and its founder Mark Bryers are mentioned
nowhere in the financial statements, Genworth provided lenders
mortgage insurance to GE Money on millions of dollars of Blue
Chip loans, Fairfax NZ News relates.

                         About Blue Chip NZ

Blue Chip New Zealand Ltd. is a financial services company with
offices throughout New Zealand.  It is a subsidiary of Blue Chip
Financial Solutions Limited, now known as Northern Crest
Investments.  Northern Crest operates in two divisions: financial
services and leasing services.  The financial services division
is engaged in the provision of financial structuring services and
investment product to a variety of clients.  The leasing
activities division is engaged in rental of residential property.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
April 15, 2008, Blue Chip New Zealand Ltd. is in voluntary
liquidation, joining 20 other Blue Chip companies that are now
being wound up.

Northern Crest Investments, the last surviving business of Mark
Bryers' failed Blue Chip group, also went into liquidation in
June 2011.


DOMINION FINANCE: Directors Plead Not Guilty on SFO Charges
-----------------------------------------------------------
Fairfax NZ News reports that four people charged following the
collapse of Dominion Finance have pleaded not guilty in the
Auckland High Court.

One of those charged, the founder of the failed finance company
Terry Butler, is so ill with terminal cancer, that he was excused
from appearing on Wednesday, the report says.

But former Dominion Finance director Robert Barry Whale, former
Dominion Finance CEO Paul William Cropp and a fourth person, who
has name suppression, did appear in court where they face a raft
of charges laid by the Serious Fraud Office under the Crimes Act
of theft by a person in a special relationship, according to
Fairfax NZ News.

The report relates that all those charged pleaded not guilty and
their lawyers indicated they would seek a discharge without
conviction.

According to the report, the SFO alleges that between 2004 and
2008, they took part in unauthorised related party lending
totalling over NZ$20 million, in breach of the trust deeds
entered into by Dominion and associate finance company North
South.

The group were bailed at large until their trial date which was
set down for February next year, the report notes.

                        About Dominion Finance

Based in Auckland, New Zealand, Dominion Finance Holdings
Limited was engaged in the provision of financial services
through the raising of debenture stock.  The company operated
through its wholly owned subsidiaries Dominion Finance Group
Limited and North South Finance Limited, and investment vehicle
Dominion Investment Fund Limited.  Both Dominion Finance Group
Limited and North South Finance Limited accepted debenture stock
investments and apply them (in conjunction with its own funds)
towards the provision of certain loans and other financial
accommodation.

Dominion Finance was put into receivership in September 2008
owing about NZ$176.9 million to more than 5,900 investors. It was
put into liquidation by the High Court at Auckland in May 2009.
Associate Judge Faire appointed William Black and Andrew Grenfell
of McGrathNicol as liquidators of the firm.  Receiver Rod
Partington of Deloitte said the liquidation application will not
affect the progress of the receivership.

North South Finance went into receivership in July 2010.

In total, the group is estimated to owe creditors NZ$400 million.


NORSK HYDRO: To Cut 300 Jobs at New Zealand Smelter Plant
---------------------------------------------------------
Australian Associated Press reports that more than 300 jobs are
set to be lost as a Norsk Hydro plans to shut its aluminium
smelter in the NSW Hunter Valley.

AAP relates that Norsk Hydro said it will shut down its Kurri
Kurri plant, as low metals prices and the strong Australian
dollar impact its profitability.  The smelter employs 344 people.

In January, the news agency recalls, Norsk Hydro made 150
redundancies at the smelter after cutting back its production.

According to AAP, Norsk Hydro said a subsequent review of the
plant has revealed it would not be profitable in the short term,
and its long-term viability would be negatively affected by
increasing energy costs and the carbon tax,

"Our Kurri Kurri workforce has worked intensively to improve the
plant's cost position and no stone has been left unturned," the
report quotes vice president of primary metal Hilde Merete
Aasheim as saying.

"The current cash losses are significant, with no sign of
improvement anytime soon.  We have therefore started to consult
about full curtailment and will maintain a close dialogue with
employees, unions and local stakeholders."

Norsk Hydro ASA is a Norwegian aluminium and renewable energy
company.


SOUTH CANTERBURY: "Stooge" Director Disguised as Hotel Owner
------------------------------------------------------------
Fairfax NZ News reports that an alleged stooge director was used
by South Canterbury Finance to disguise its ownership of
Auckland's Hyatt hotel and sweep tens of millions of dollars in
impaired related-party loans off its books.

The news agency relates that SCF's dealings with the 340-room
hotel are also said to have involved its parent, Southbury Group,
a company owned by former SCF chairman the late Allan Hubbard.
It's alleged the company walked away with NZ$25 million after it
received an advance payment for a mooted sale of the Hyatt that
later fell over, the report relates.

According to the report, it is understood the heart of the
Serious Fraud Office prosecution into the failed finance company
centres on the Hyatt, an Auckland landmark, and Peter Symes, a
Christchurch-based retired meat worker who, on paper at least,
was the sole owner of the Hyatt from December 2008 until just
before the SCF collapsed in August 2010.

Fairfax NZ News relates that Mr. Symes, who never visited the
Hyatt while he owned the hotel, said soon after the finance
company's collapse that his involvement in the Hyatt was only at
the behest of his brother-in-law, former SCF director Ed
Sullivan.

"My understanding is I was brought in because there were too many
people from one company [South Canterbury] involved," the report
quotes Mr. Symes as saying.

According to Fairfax NZ News, SCF directors Sullivan and Robert
White, chief executive Lachie McLeod, chief financial officer
Graeme Brown and accountant Terrance Hutton face charges brought
by the SFO.  These include obtaining by deception, false
statements by a promoter and false accounting.

They have strenuously denied the charges and said that they
intend to plead not guilty when the case comes to trial, which is
expected to be mid next year, the report notes.

Fairfax NZ News says the SFO alleges that had the Hyatt loan been
properly declared as related-party, SCF would have exceeded
limits for such loans and would have been disqualified from
joining the Crown Retail Deposits Guarantee Scheme in December
2008.

                      About South Canterbury

Based in New Zealand, South Canterbury Finance Limited
(NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the
provision of financial services.  The Company's principal
activities were 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
advanced 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 Aug. 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 repaid South Canterbury's 35,000
depositors and stockholders NZ$1.6 billion under the Crown
retail deposit guarantee scheme.


                             *********

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.





                 *** End of Transmission ***