TCRAP_Public/120611.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

             Monday, June 11, 2012, Vol. 15, No. 115

                            Headlines


A U S T R A L I A

AUSTRALIAN EXECUTOR: Fitch Holds Rating on AUD19MM Notes at Low-B
HIH INSURANCE: Australian Court Agrees With Kiwi Liquidators
* AUSTRALIA: Moody's Says RMBS Delinquencies Up in 1st Qtr. 2012


C H I N A

SHANGHAI ZENDIA: Fitch Affirms 'B' IDR Ratings; Outlook Stable
SHANGHAI ZENDAI: S&P Affirms 'B-' Corporate Credit Rating


H O N G  K O N G

ALPHA SHEEN: Creditors' Proofs of Debt Due July 3
ASIA ENERGY: Goh Khoon Teen Paul Steps Down as Liquidator
BONGRACE LIMITED: Members' Final Meeting Set for July 4
BROADBAND CONSULTANTS: Members' Final Meeting Set for July 3
CANLUCK CORPORATION: Creditors' Meeting Set for June 27

CHINA TAX: Creditors' Proofs of Debt Due July 1
GOOD HARVEST: Members' Final Meeting Set for July 3
GREAT WEALTH: Members' Final Meeting Set for July 3
HONGKONG MACAU: Creditors' Proofs of Debt Due July 3
MORAL WEALTH: Creditors' Proofs of Debt Due July 3

PERFECT SQUARE: Wan and Fung Step Down as Liquidators
SURE TALENT: Members' Final Meeting Set for July 3
TOTAL ENERGY: Members' Final Meeting Set for July 3
VALUE TRUCKERS: Creditors' Proofs of Debt Due June 15
WORLD EXPRESS: Creditors' Proofs of Debt Due July 3


I N D I A

ADINO TELECOM: ICRA Assigns '[ICRA] B+' Rating to INR5cr Loan
GURUTEK ESTATE: ICRA Rates INR2.5cr Term Loans at '[ICRA]B+'
KARNAWAT ASSOCIATES: ICRA Reaffirms 'BB-' Rating on INR35cr Loan
KASIM COAL: ICRA Reaffirms '[ICRA]BB' Rating on INR5cr LT Loan
KSK MAHANADI: ICRA Reaffirms 'BB+' Rating on INR12,142cr Loans

MANIMAHESH HYDEL: ICRA Puts '[ICRA]B+' Rating on INR11.15cr Loans
RAYALASEEMA EXPRESSWAY: Fitch Rates INR7 Mil. Loan at 'BB(ind)'
RISHI GANGA: Delays in Debt Repayment Cues ICRA Junk Ratings
SAGAR DEVELOPERS: ICRA Rates INR6.5cr Term Loan at '[ICRA]B'
SREE KOPPAMMAL: Delays in Debt Payments Cues ICRA Junk Ratings

TARGET ASSOCIATES: Inadequate Info Cues Fitch to Migrate Ratings


I N D O N E S I A

ADARO ENERGY: BEP Stake Acquisition No Impact on Moody's Ba1 CFR


J A P A N

OLYMPUS CORP: Former CEO Wins GBP10 Million in Settlement
OLYMPUS CORP: To Cut 2,700 Jobs by 2014
TOKYO ELECTRIC: May be Recipient of JPY500-Bil. in Loans from DBJ


N E W  Z E A L A N D

NZF GROUP: Continued Asset Freezing May Lead to Liquidation
SOUTH CANTERBURY: Liquidators Appointed to 8 SCF Companies


T A I W A N

CONCORD SECURITIES: Fitch Affirms 'BB+' LT IDR Rating


                            - - - - -


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A U S T R A L I A
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AUSTRALIAN EXECUTOR: Fitch Holds Rating on AUD19MM Notes at Low-B
-----------------------------------------------------------------
Fitch Ratings has affirmed two classes of notes issued by
Australian Executor Trustees Limited as trustee of the Seiza
Augustus Series 2007-1 Trust.  The transaction closed in April
2007, and is a securitisation of small balance commercial and
residential mortgages originated by Seiza Mortgage Company Pty
Limited (Seiza).  The rating actions are:

  -- AUD14.87m Class C (ISIN AU3FN0002465) affirmed at 'Asf';
     Outlook Stable;

  -- AUD19.02m Class D (ISIN AU3FN0002463) affirmed at 'BBsf';
     Outlook Stable.

The rating actions reflect Fitch's view that the available credit
enhancement levels are sufficient to support the notes' current
ratings, and that the credit quality and performance of the loans
in the current collateral pool remain in line with the agency's
expectations.

"Total charge-offs have increased in the last year, due to large
principal shortfalls and the consistent balance of loans in
arrears for more than 300 days.  Recoveries from these loans are
expected to reduce the level of charge-offs in the upcoming
months," said James Zanesi, Director in Fitch's Structured
Finance team.  "Moreover, the transaction has amortised
considerably, in turn increasing the level of credit enhancement
of the rated notes," added Mr. Zanesi.

The transaction has paid down from initial liabilities of
AUD404.70m to liabilities of approximately AUD39.90m as of
April 20, 2012, considering the level of charge-offs to-date.  As
at April 20, 2012, the pool was comprised of 100 residential and
commercial mortgages, low-documentation loans represented 50% of
the pool, and three loans were in arrears for more than 90+ days,
accounting for 9.9% of the pool.

As of the April 2012 payment date, the total cumulative mortgage
shortfall amounted to AUD30.20m, of which AUD13.70m has been
reimbursed through excess spread and income from liquidation
proceeds.  A unique feature of this transaction is the full
charge-off of loans that are greater than 300 days in arrears.
Due to this feature, the transaction has experienced a certain
degree of volatility in terms of charge-offs with Class F and G
notes being fully charged-off and Class E notes being charged-off
by AUD2,126,297.  Charge-offs related to loans in arrears for
more than 300 days amounted to AUD9.50m.  Excess and loss
provision reserves have been fully used to date.  The current
liquidity facility amounts to AUD13.00m, representing 32.5% of
the collateral pool.

As the mortgage portfolio decreases in size, the risk of
principal losses resulting from the default of large loans
becomes a relevant driver in Fitch's analysis.  A cash flow
analysis was performed on the transaction, stressing a
combination of interest rates, defaults, default timing, recovery
timing and prepayment rates, with each tranche passing at its
respective rating level.


HIH INSURANCE: Australian Court Agrees With Kiwi Liquidators
------------------------------------------------------------
Stuff.co.nz reports that an Australian court has agreed with
New Zealand liquidators that the Kiwi arm of HIH Insurance does
not owe Aussie investors NZ$277 million.

The HIH insurance group collapsed in 2001, the biggest failure in
Australian corporate history.

Stuff.co.nz recalls that the liquidators of its New Zealand
company, HIH Holdings (NZ), last year disallowed a NZ$277 million
claim from the trustee for Australian holders of convertible
notes.

The report relates that HIH Holdings issued the notes 13 years
ago to raise AUD213 million, and the Australian parent, HIH
Insurance, guaranteed them.  The noteholders were a mix of
institutional and private investors.

According to the report, the notes were due to be converted into
shares in HIH Insurance between June 2001 and June 2003, but by
July 2001 the New Zealand company had followed its parent into
liquidation.

Five years ago the trustee, Stuff.co.nz recalls, Perpetual
Trustee Company, gained an Australian Federal Court ruling that
HIH Holdings had not kept its end of the deal.

The report relates that Perpetual said it had a right to claim a
debt based on the face value of the original notes -- a total of
NZ$277 million, including costs.

But after gaining legal opinions on both sides of the Tasman HIH
Holdings' liquidators McGrath Nicol declined the claim,
Stuff.co.nz relays.

According to Stuff.co.nz, Perpetual challenged the liquidators'
decision in both the Australian and New Zealand courts, and last
week the Supreme Court of New South Wales ruled in McGrath
Nicol's favour.

Mr. Downey said the court had fully backed their rejection of
Perpetual's proof of debt, the report relates.

"It was always an equity play, [the investors] would never have a
right to get their principal back," the report quotes Mr. Downey
as saying.  "Sadly for the noteholders, as a result of the
liquidation of HIH in Australia their shares are worth zero."

Stuff.co.nz notes that both the New Zealand and Australian courts
had given Perpetual leave to challenge the liquidators' decision,
but the New Zealand High Court had ordered a stay on proceedings
while the New South Wales case was heard.

The liquidators would now ask the court here to strike the
proceeding out, Mr. Downey, as cited by Stuff.co.nz, said.

Perpetual had 21 days to appeal the NSW decision, the report
adds.

                        About HIH Insurance

HIH Insurance Limited was a publicly listed company in Australia.
Prior to its collapse in 2001, the HIH Group was the second
largest general insurer in Australia and had operations in many
other countries.

On March 15, 2001, HIH Insurance Limited and a number of its
subsidiaries were placed into provisional liquidation.
Subsequently, on Aug. 27, 2001, the companies that were in
provisional liquidation were placed into liquidation.

Schemes of Arrangement are in place for eight of those companies.
The eight licensed insurance companies within the group were
placed into Schemes of Arrangement in Australia  on May 30, 2006.
Four of these companies were also placed into Schemes of
Arrangement in the UK on June 13, 2006.

The Scheme Administrators have made initial payments to certain
creditors and will make further payments over the coming years,
HIH said on its Web site.


* AUSTRALIA: Moody's Says RMBS Delinquencies Up in 1st Qtr. 2012
----------------------------------------------------------------
Moody's Investors Service has announced the publication of a new
quarterly report that will track the performance of the
Australian RMBS market. The new report was published on June 7
with performance data up to first quarter 2012, and covers the
prime and non-conforming sectors.

The new report, entitled "Australian RMBS Performance Review Q1
2012" is now available on www.moodys.com. Moody's subscribers can
access these reports via the links provided at the end of this
press release.

"In response to investor feedback, the report is excel-based and
covers the delinquency and loss performance of Moody's monitored
RMBS transactions as well as several other key indicators," says
Alena Chen, a Moody's analyst.

"One of the advantages of the new report is that it includes the
underlying data along with the performance charts, which improves
transparency," adds Ms. Chen.

Moody's publishes this quarterly report as soon as it receives
the performance data on the transactions, so typically two months
after each quarter.

The current report shows that delinquencies rose in the first
quarter of 2012 despite the easing of monetary policy which
occurred in late 2011.

Prime deals (excluding low doc) 30-plus arrears marginally
increased to 1.58% in March 2012 from 1.57% in December 2011.
However, low doc and non-conforming deals saw a larger increase.
For example, low doc's 30-plus increased to 5.03% from 4.58%
during the same period, and non-conforming increased to 12.06%
from 10.63%.

Low doc and non-conforming deals typically have lower credit
quality and hence, with an economic slowdown and uncertainty,
these deals are more likely to suffer from deteriorating
performance.



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SHANGHAI ZENDIA: Fitch Affirms 'B' IDR Ratings; Outlook Stable
--------------------------------------------------------------
Fitch Ratings has revised Shanghai Zendai Property Limited's
Outlook to Stable from Negative.  Its Long-Term Foreign-Currency
Issuer Default Rating and senior unsecured rating are affirmed at
'B', respectively.

The Outlook revision and affirmation follow Zendai's repayment of
USD150m fixed rate notes on 6 June 2012, as announced by the
company on the same date.  Fitch notes that following the
redemption of the USD notes, the company still has sufficient
liquidity to meet its bank loans due in 2012 (HKD754m) and
construction costs for its ongoing diversified commercial and
residential properties across 11 cities.  Zendai's liquidity
position is supported by the proceeds of HKD2,860m from the
disposal of its Shanghai Bund project and its cash balance of
HKD888m as at Dec. 31, 2011.


SHANGHAI ZENDAI: S&P Affirms 'B-' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services revised the rating outlook on
Shanghai Zendai Property Ltd. to stable from negative. "At the
same time, we affirmed the 'B-' long-term corporate credit
rating on the company. As a result of the outlook revision, we
raised the long-term Greater China credit scale rating on
Shanghai Zendai to 'cnB' from 'cnB-'. We also withdrew the 'CCC+'
issue rating on the company's senior unsecured notes after the
company fully redeemed them on June 6, 2012," S&P said.

"We revised the rating outlook to stable to reflect our view that
Shanghai Zendai no longer faces immediate and significant
refinancing risk on its US$139 million senior unsecured notes
following their full redemption," said Standard & Poor's credit
analyst Frank Lu.

"Shanghai Zendai repaid the notes on maturity using some of the
Chinese renminbi (RMB) 2.9 billion proceeds from the sale of its
interest in a property project on the Shanghai Bund. It also used
RMB958 million from the proceeds to repay a trust loan in April
2012. Following the debt repayment, Shanghai Zendai's total
borrowings will have decreased materially from Hong Kong dollar
(HK$) 4 billion at the end of 2011," S&P said.

"We estimate that Shanghai Zendai's liquidity sources have
widened to cover liquidity uses by about 1.1x over the next 12
months, compared with less than 1.0x six months ago. The
improvement is due to the Bund project sale and new funding from
banks. Nevertheless, the company's liquidity could deteriorate
this year if its property sales are materially below our base
case assumption of HK$2.5 billion and it doesn't cut construction
costs. In the first five months of 2012, Shanghai Zendai's
contract sales remained low at about HK$550 million," S&P said.

"We affirmed the rating to reflect Shanghai Zendai's small scale,
high project concentration, and weak property sales and
execution. The rating also reflects the company's increasing
exposure to the commercial leasing property segment, which is
capital-intensive and involves long payback periods," said Mr.
Lu. "The company's small recurring property leasing income,
established record in Shanghai, and low-cost land bank in
reasonably good locations temper these weaknesses. We continue to
view Shanghai Zendai's business risk profile as 'vulnerable' and
its financial risk profile as 'highly leveraged' for the next 12
months, at least."

"We expect the company to continue to generate negative free cash
flow in 2012 due to weak sales and continued construction
spending. The government's purchase restrictions have materially
affected Shanghai Zendai's limited and concentrated projects in
Shanghai," S&P said.

"The rating and outlook on Shanghai Zendai are not affected by
the announcement that Fosun International Ltd. (BB+/Negative/--;
cnBBB/--) has filed a civil suit against parties that include
Shanghai Zendai and SOHO China Ltd. (not rated), the buyer of the
Bund project. The lawsuit is over the sale of the project. It is
unclear to us if Fosun has legal grounds to contest the sale.
Also, the lawsuit could be lengthy and the timing of a resolution
uncertain. In addition, Shanghai Zendai has received most of the
sale proceeds, which it used to repay the senior notes and trust
loan," S&P said.

"We could lower the rating if the company's property sales and
cash holdings are materially weaker than we expected. EBITDA
interest coverage of less than 1x would indicate such weakness.
We could also downgrade the company if we believe that its
liquidity is not sufficient to meet short-term obligations," S&P
said.

"We could raise the rating if the company improves its property
sales and cash flow, and stabilizes its leverage," S&P said.



================
H O N G  K O N G
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ALPHA SHEEN: Creditors' Proofs of Debt Due July 3
-------------------------------------------------
Creditors of Alpha Sheen Development Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 3, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on May 28, 2012.

The company's liquidator is:

         Lam Ying Sui
         10/F, Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


ASIA ENERGY: Goh Khoon Teen Paul Steps Down as Liquidator
---------------------------------------------------------
Goh Khoon Teen Paul stepped down as liquidator of Asia Energy
Resources Limited on May 18, 2012.


BONGRACE LIMITED: Members' Final Meeting Set for July 4
-------------------------------------------------------
Members of Bongrace Limited will hold their final meeting on
July 4, 2012, at 10:00 a.m., at 25/F, Wing On Centre, 111
Connaught Road Central, in Hong Kong.

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


BROADBAND CONSULTANTS: Members' Final Meeting Set for July 3
------------------------------------------------------------
Members of Broadband Consultants Limited will hold their final
general meeting on July 3, 2012, at 3:30 p.m., at 10/F, Allied
Kajima Building, 138 Gloucester Road, Wanchai, in Hong Kong.

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


CANLUCK CORPORATION: Creditors' Meeting Set for June 27
-------------------------------------------------------
Creditors of Canluck Corporation Limited will hold their meeting
on June 27, 2012, at 9:30 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 5th Floor, Ho Lee Commercial
Building, 38-44 D'Aguilar Street, Central, in Hong Kong.


CHINA TAX: Creditors' Proofs of Debt Due July 1
-----------------------------------------------
Creditors of China Tax Society Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 1, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on May 21, 2012.

The company's liquidator is:

         Wong Wa Sun Thomas
         Suite 1201, Tower 2
         The Gateway, 25 Canton Road
         Tsimshatsui, Kowloon
         Hong Kong


GOOD HARVEST: Members' Final Meeting Set for July 3
---------------------------------------------------
Members of Good Harvest Consultants Limited will hold their final
general meeting on July 3, 2012, at 4:00 p.m., at 10/F, Allied
Kajima Building, 138 Gloucester Road, Wanchai, in Hong Kong.

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


GREAT WEALTH: Members' Final Meeting Set for July 3
---------------------------------------------------
Members of Great Wealth Creation Limited will hold their final
general meeting on July 3, 2012, at 3:00 p.m., at 10/F, Allied
Kajima Building, 138 Gloucester Road, Wanchai, in Hong Kong.

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


HONGKONG MACAU: Creditors' Proofs of Debt Due July 3
----------------------------------------------------
Creditors of Hongkong Macau Secretarial Services Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by July 3, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on May 28, 2012.

The company's liquidator is:

         Lam Ying Sui
         10/F, Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


MORAL WEALTH: Creditors' Proofs of Debt Due July 3
--------------------------------------------------
Creditors of Moral Wealth International Investment Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by July 3, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on May 28, 2012.

The company's liquidator is:

         Lam Ying Sui
         10/F, Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong


PERFECT SQUARE: Wan and Fung Step Down as Liquidators
-----------------------------------------------------
Terence Ho Yuen Wan and Henry Fung stepped down as liquidators of
Perfect Square (Hong Kong) Limited on May 21, 2012.


SURE TALENT: Members' Final Meeting Set for July 3
---------------------------------------------------
Members of Sure Talent Investment Limited will hold their final
general meeting on July 3, 2012, at 10:00 a.m., at Room 211, 2/F,
Sterling Centre, 11 Cheung Yue Street, Cheung Shan Wan, Kowloon,
in Hong Kong.

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


TOTAL ENERGY: Members' Final Meeting Set for July 3
---------------------------------------------------
Members of Total Energy Resources (Hong Kong) Limited will hold
their final meeting on July 3, 2012, at 10:00 a.m., at 8th Floor,
Gloucester Tower, The Landmark, at 15 Queen's Road Central, in
Hong Kong.

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


VALUE TRUCKERS: Creditors' Proofs of Debt Due June 15
-----------------------------------------------------
Creditors of Value Truckers Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by June 15, 2012, to be included in the company's dividend
distribution.

The company's liquidator is:

         Foh Hei Yu
         FTI Consulting (Hong Kong) Limited
         Level 22, The Center
         99 Queen's Road Central
         Central, Hong Kong


WORLD EXPRESS: Creditors' Proofs of Debt Due July 3
---------------------------------------------------
Creditors of World Express Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 3, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on May 28, 2012.

The company's liquidator is:

         Lam Ying Sui
         10/F, Allied Kajima Building
         138 Gloucester Road
         Wanchai, Hong Kong



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ADINO TELECOM: ICRA Assigns '[ICRA] B+' Rating to INR5cr Loan
-------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' and a short-
term rating of [ICRA]A4 to the fund based limits, non-fund based
limits and proposed limits of Adino Telecom Limited aggregating
to INR20.00 crore.

                           Amount
   Facilities             (INR Cr)       Ratings
   ----------             ---------      -------
   Fund Based Limits         5.00        [ICRA]B+ assigned

   Non-Fund Based Limits    10.00        [ICRA]B+/[ICRA]A4
                                          Assigned

   Proposed Limits           5.00        [ICRA]B+/[ICRA]A4
                                         assigned

The ratings take into account the weak financial profile of the
company characterized by small size of operations and high
working capital intensity resulting in weak cash flow position.
ICRA also notes that the company's ability to successfully market
its recently launched analog two-way radios under the 'Adino'
brand and to successfully bid for higher order value contractors
in the system integration space, remains to be seen and would be
critical for its revenue growth, going forward. The ratings
however favorably factor in the long track record of the company
in the business, the recent revenue diversification by
introduction of various new verticals such as setup of Tetra
system, Vehicle Tracking System, CCTV system and supply of
storage batteries and its collaboration with reputed
international players for sourcing of products.

Adino Telecom Ltd was incorporated in the year 1992 by the senior
promoters of Mirc Electronics Ltd. The shareholding of ATL is
largely held by Mr. Vijay Mansukhani and Mr. Gulu Mirchnandani
(combined equity holding of 93.3%), who are the founders of MEL
and its current Managing Director and Chairman, respectively. ATL
is mainly involved in sale of two-way radios and has partnered
with Motorola and Icom in the past. ATL is also present in the
wireless integration business for 'last mile' connectivity.
Recently, the company has diversified into other verticals such
as setup of Tetra system, Vehicle Tracking System, CCTV system
and supply of storage batteries.

For FY 2011, the company reported Profit after Tax (PAT) of
INR0.99 crore on an operating income of INR19.03 crore. During
9-month period of FY 2012, the company has reported Profit before
Tax (PBT) of INR1.24 crore on an operating income of
INR10.59 crore (provisional).


GURUTEK ESTATE: ICRA Rates INR2.5cr Term Loans at '[ICRA]B+'
------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' and '[ICRA]A4' ratings to the
INR12.0 crores Fund and Non-Fund Based bank limits of Gurutek
Estate Private Limited.

                           Amount
   Facilities             (INR Cr)       Ratings
   ----------             ---------      -------
   Term Loans                2.50        [ICRA]B+ (Assigned)

   Non-Fund Based            9.00        [ICRA]A4 (Assigned)
   Facilities

   Proposed Term Loans       0.50        [ICRA]A4 (Assigned)

The ratings factor in the established track record of GEPL's
promoters in the construction sector in the National Capital
Region (NCR). The ratings are however constrained on account of
execution risks associated with the company's on-going project
which is in the initial stage of implementation and various
approvals are yet to be secured. Further, the high dependence on
customer advances for project funding and pending debt sanction
exposes the project to high funding risks. ICRA notes that the
region of GEPL's upcoming project is likely to see high
competitive pressures given that a number of Townships are under
construction by established builders which can put pressure on
company's sales volume. Going forward, GEPL's ability to achieve
bookings in its project, meet its construction schedule, as well
as ensure debt tie-up and timely infusion of funds by the
promoters would be the key rating sensitivities.

Gurutek Estate Private Limited is incorporated with the purpose
of developing a 51 acre Township in Sector 25 & 26, Rewari,
Haryana. Apart from developing the entire township, the company
will also construct residential flats and a commercial complex in
the township. The company is promoted by Mr. Kamal Agarwal who is
also the Managing Director in GEPL. The majority shareholding in
GEPL is through Gurutek India Private Limited which is another
company owned by the same promoters and is involved in
construction business. This is the first real estate project as a
developer for the promoters and their prior experience has been
limited towards construction of real estate projects only.

The township is named Gurutek Eshan Vatikka and is being
constructed on 51 acre land which has been purchased from Pioneer
Urban Development Private Limited in December 2010 for a
consideration of about INR18.5 crore and the same has been fully
paid for. In the township, company plans to sell 227 plots of
different sizes and 81 group housing flats.


KARNAWAT ASSOCIATES: ICRA Reaffirms 'BB-' Rating on INR35cr Loan
----------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB-' to the
INR35.00 Crore (enhanced from INR12.00 Crore) fund-based bank
facilities of Karnawat Associates Pvt. Ltd.  ICRA has also
assigned [ICRA]BB- rating to the INR14.00 Crore term loan
facility of KAPL. ICRA has also reaffirmed the short term rating
of '[ICRA]A4' to the INR10.00 Crore (enhanced from INR5.00 Crore)
non fund based facilities of KAPL. The outlook assigned to the
long term rating is Stable.

                            Amount
   Facilities              (INR Cr)         Ratings
   ----------              ---------        -------
   Long Term Fund Based      35.00          [ICRA]BB-; Reaffirmed
   Limits- CC             (Enhanced from
                          INR12.00 Cr)

   Long Term Fund Based      14.00          [ICRA]BB-; Assigned
   Short Limits- TL

   Short Term Non Fund       10.00
   Based Limits           (Enhanced from    [ICRA]A4; Reaffirmed
                           INR5.00 Cr)

The rating action takes into account KAPL's weak financial
position characterized by stretched liquidity profile as
reflected in high working capital intensity, adverse capital
structure and low profit margins as is typical of trading
business. ICRA also notes that the envisaged debt funded
expansion project may further limit the financial flexibility of
the firm, given the capital structure at present remains of the
higher side. The ratings also take note of the company's presence
in an industry which is characterized by strong competition from
unorganized (large presence) as well as organized players.
Moreover, the margins are susceptible to adverse movements in
iron and steel prices which are highly volatile, being
commoditized in nature. The rating however, continues to factor
in the established track record of the partners in ferrous and
non-ferrous metal scrap industry of over three decades,
moderately diversified supplier base and financial and
operational backing from group concerns.

                     About Karnawat Associates

Karnawat Associates Pvt. Ltd. was established in 2008, and
commenced operations from April 2009. KAPL is in the business of
trading and semi manufacturing of ferrous metal, tube & pipe
fittings pipes tubes trading. Some of the products include MS
Scrap, CR Coils, MS Blocks brass scrap, CRCA scrap etc. The
company has its office at Mumbai and a manufacturing facility in
Thane.

Apart from KAPL, there are three group concerns namely Tulsi
Castings & Machining Ltd., Metal Link & Alloys Ltd & Bhavarlal
Mangilal Jain & Co. Tulsi Foundries Ltd. is into manufacturing,
supply and export of ductile iron casting components. Metal Link
Alloys Ltd. is into manufacture of high grade Bronze and Brass
Ingots including Gun Metal, Phosphorus Bronze, Leaded Bronze,
Aluminum Bronze, Manganese Bronze, Sand Cast Brass, High Tensile
Brass, Die Cast Brass, and Master Alloys etc. Bhavarlal Mangilal
Jain & Co is into the same line of business as of KAPL for
trading of ferrous and non ferrous scrap.

Recent Results:

KAPL recorded a net profit of INR1.67 Crores on an operating
income of INR93.10 Crores for the year ended on 31st March 2011,
as per the audited figures.


KASIM COAL: ICRA Reaffirms '[ICRA]BB' Rating on INR5cr LT Loan
--------------------------------------------------------------
ICRA has reaffirmed the long term ratings of '[ICRA]BB' assigned
to INR5 Crore fund based bank lines of Kasim Coal and Logistics
Private Limited. ICRA has also reaffirmed the [ICRA]A4 rating
assigned to INR50 Crore non fund based bank lines of Kasim Coal
and Logistics Private Limited. The outlook on the long term
rating is Stable.

                           Amount
   Facilities             (INR Cr)      Ratings
   ----------             ---------     -------
   Long term-Fund based     5.00        [ICRA]BB (Reaffirmed)
   Short term-Non Fund      50.00       [ICRA]A4 (Reaffirmed)
   based

Rating Rationale ICRA's rating action factors in presently
moderate market position of the company in the coal trading
industry, as evident in the moderate revenues, limited number of
shipments in a year and limited client base. The rating also
factors in the inherently low margins on account of trading
nature of the operations and counterparty credit risk in timely
realizing the payments, which is critical for the turnover &
liquidity of the company. ICRA also notes that company mainly
imports coal from Indonesia, and the Indonesian coal exports are
exposed to increased regulatory risks (proposed volume
restrictions on coal exports and increase in taxes) since 2009.

However, the ratings draw support from the favorable outlook for
the coal trading industry arising out of demand and supply
scenario, long track record of promoters in this business and the
firm coal sourcing arrangement of KCL in Indonesia, which augurs
well for the future revenue growth given the domestic demand for
coal. The ratings also factor in continues support from the
promoters in terms of regular equity infusion in the past. While
company is exposed to forex variation risks arising out of its
predominantly import based transactions, its ability to hedge
against these variations is critical to the profitability.

Kasim Coal and Logistics Private Limited was incorporated in
FY2007, and is promoted by Yasin & Yesesi Group. KCL is primarily
engaged in trading imported non-coking coal and has traded close
to 105000 MT in FY2011. Over the years KCL has supplied to
customers like Chettinad Cement India Limited, JSW Steel,
Seshasayee Paper and Boards Limited, MRF Limited, OPG Power etc.

In FY-2011 it has recorded INR37 Cr Operating Income, INR1.02 Cr
OPBITDA and INR0.24 Cr net profit. In 9m- FY2012 it has recorded
INR38.38 Cr Operating Income.


KSK MAHANADI: ICRA Reaffirms 'BB+' Rating on INR12,142cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB+' and '[ICRA]A4+' ratings
assigned to INR12,915.00 crore (enhanced from INR9,024 crore)
bank facilities of KSK Mahanadi Power Company Limited.  The
outlook on the assigned long-term continues to remain Stable.

                           Amount
   Facilities             (INR Cr)        Ratings
   ----------             ---------       -------
   Term Loans              12142.00       [ICRA]BB+ (Stable)
                          (enhanced from
                          INR9024 crore)

   Bank Guarantee          773.00         [ICRA]BB+
                                          (Stable)/[ICRA]A4+

ICRA's rating draws strength from the progress made in project
execution, achievement of financial closure with respect to debt,
substantial infusion of equity funds and receipt of most permits
required. The fixed-price and time nature of the EPC contract
partly insulates the project from the risk of cost overruns,
although it would still remain vulnerable to risks arising out of
forex movements, interest rate changes and permitting delays. The
project also enjoys access to a captive coal block and proximity
to domestic coal mines which are likely to result in a
competitive cost of generation especially once the captive block
is operational.

However, these strengths are offset by the project implementation
risks which are typical of large sized green field projects (as
reflected in current 7 month delay), and lack of experience of
the promoter group in executing projects of this scale. Pending
equity infusion from the parent company also exposes the project
to funding risks. The project is also subject to significant fuel
risks given that it is unclear whether the tapering linkage
received in lieu of Morga (Chhattisgarh) block (50% of proposed
fuel mix) is convertible into long-term linkage while the other
captive block (Gare- Pelma, Chhattisgarh) is at an early stage of
development having yet to achieve full environmental clearance
and land acquisition. Off-take and profitability risks also arise
from the fact that final PPA's are yet to be signed for 2600 MW
of power (although MOUs exist for 1800 MW of the same). Further,
project has obligation to sell significant portion of power
generated (over 1100 MW) at very fine rates which may constrain
profitability, although the validity of the obligation to sell
1010 MW to GUVNL** at fine rates remains to be seen given the
cancellation of Morga block and non-allocation of alternate coal
block. Risks also arise from the fact that Chinese equipment of
this configuration is yet to be fully tested in Indian
conditions. Going forward, KMPCL's ability to infuse balance
equity and complete project (and related ancillaries) without
further cost and time overruns, achieving fuel security for the
project, and finalizing the terms of power sales with its key
customers would be the key rating sensitivity factors.


MANIMAHESH HYDEL: ICRA Puts '[ICRA]B+' Rating on INR11.15cr Loans
-----------------------------------------------------------------
ICRA has assigned an '[ICRA]B+' rating to the INR10.00 crores
term loans and INR1.15 crore non-fund based limits of The
Manimahesh Hydel Power Projects Cooperative Society.

                           Amount
   Facilities             (INR Cr)       Ratings
   ----------             ---------      -------
   Term loan                10.00        [ICRA]B+
   Non-fund based limits     1.15        [ICRA]B+

The company's ratings take into account execution risks,
including risks of cost and time overrun that are typical of
green-field hydro projects. The project once operational will
also be subject to hydrology risks given that there are no deemed
generation clauses. Moreover, the debt funded nature of project
coupled with the fact that profitability of the project will be
dependent on the company's ability to maintain project costs and
operating parameters within the designed levels given that the
tariffs are fixed at INR2.95 per unit. Further, there is a
moratorium period of only 5 months post COD which coupled with
the fact that the project will get operational during the lean
season may put pressure on debt servicing in the initial period.
Nevertheless, these weaknesses are partially offset by the firm
power purchase agreement (PPA) with the Himachal Pradesh State
Electricity Board to supply power for 40 years and limited demand
risks given the competitive tariffs and energy deficit status in
northern India. The credit profile also favorably factors in the
achievement of financial closure, receipt of project clearances
and the project's eligibility for capital subsidy from Ministry
of New and Renewable Energy and sale of carbon emission reduction
(CER's) certificates. Going forward, the ability of the company
to complete the project with minimal cost and time overruns, meet
the designed performance parameters and availability of adequate
water in the catchment area will be the key rating drivers.

                       About Manimahesh Hydel

Manimahesh Hydel Power Project Cooperative Society has been
promoted by Mr. S.P Dhall and his family members. Mr. Dhall is an
active contractor and hotelier. He and his family runs two
hotels-Hotel Indraprastha in Dalhousie and Hotel Miniswiss in
Khajiar.He has 50% of the wine contracts in Chamba district. He
also executes government projects which include road projects,
Irrigation and Public Health Works etc. Apart from this; his
other ventures include a shopping complex named Dhall Complex in
Chamba and one Kiryana shop.


RAYALASEEMA EXPRESSWAY: Fitch Rates INR7 Mil. Loan at 'BB(ind)'
---------------------------------------------------------------
Fitch Ratings has assigned India-based Rayalaseema Expressway
Private Limited's INR7,030 million long-term senior project bank
loan a National Long-Term rating of 'Fitch BB(ind)'.  The Outlook
is Stable.

REPL is an SPV incorporated to implement a 188.75km lane
expansion (two- to four-laning) on the Kadapa-Mydukur-Kurnool
section of National Highway 18 in Andhra Pradesh, under a 30-year
concession from National Highways Authority of India (NHAI,
'Fitch AAA(ind)'/Stable).  The project cost is estimated at
INR16,360m, proposed to be funded by a term loan of INR7,030m,
sponsors' equity of INR3,110m and an NHAI grant of INR6,220m.
The shareholders of REPL include KMC Infratech Ltd (KMCIL,
53.1%), SNC-Lavalin Mauritius Limited (36.9%) and IVRCL
Infrastructures & Projects Ltd (10%, 'Fitch A+(ind)'/Stable).

The rating reflects significant traffic risks.  Traffic and
revenue estimates are based on an independent traffic study,
which notes the presence of three potential alternate routes.
Two of the alternatives are either longer than the project road
or in a poor condition and thus unlikely to cause much leakage.
The third alternative bypasses the third toll plaza on the
project road at Nandyal and shares the same length (77 km)
between CS Palem and Allagadda.  Therefore, the traffic study
assumes that 8% of vehicles may be diverted from the project road
to the third alternative, and the same has been factored in
Fitch's base case projections.  Should the diversion be more
severe, REPL may struggle to service debt from its own cash flows
in the early years of operations.

Fitch also expects high cash flow volatility as commercial
vehicles are likely to constitute a majority of traffic on the
project road.  Price risk is only partially mitigated as the
concession permits a partial (40%) indexation of annual rate
increases to the wholesale price index.

The rating also factors in the residual completion risk.
Construction is running behind schedule; 43.57% cumulative
physical progress was achieved at end-March 2012 (target:
66.48%).  However, the risk is somewhat mitigated by the presence
of a fixed-price, date-certain EPC contract with KMC
Constructions Limited (KMC, the ultimate parent of KMCIL, the
principal sponsor), which has over 40 years of experience in
building and operating highway concessions.  KMC has a portfolio
of five operational build, operate and transfer (BOT) projects
and six projects are in various stages of completion.  Also, 89%
of the land required for the project has already been made
available to the company.

Although the fact that the entire planned equity has already been
infused gives some comfort, KMC's stretched liquidity position
due to its various ongoing BOT projects could limit its capacity
to extend contractual (such as funding cost overruns) and non-
contractual support.  The latter potentially comprises bridging
possible delays in the receipt of balance grants (INR4,225m) - a
major component of the project cost, funding shortfalls in cash
flows caused by traffic underperformance, increases in operating
costs and spikes in interest costs, these being common features
in most Indian toll road projects.

If the 'change of scope' proposal, currently at a very
preliminary stage, is approved, it may warrant additional funding
requirements, potentially introducing additional risk to the
financial structure.  However, the timing, scope of additional
work and quantum of incremental outlay are all uncertain at this
juncture.

The project is exposed to a variable interest rate, fixed until
the commercial operations date (COD: May 2013) with a reset
option every three years.  Notwithstanding the Reserve Bank of
India's recent interest rate cuts, Fitch notes that the project
remains susceptible to adverse interest rate movements.  As
financial margin and coverage ratios are thin, REPL's debt
servicing ability depends upon it achieving management's
estimates of patronage and growth rates.

The project debt will amortise in 150 structured monthly
instalments from July 2014 to December 2026, with an unusually
long 14-year tail offering an economic incentive to the sponsors
to extend support, if required.  Fitch notes that creating a debt
service reserve (equivalent to three months debt service
obligations) out of operational cash flows may pose a challenge
if traffic performance is weaker than expected.

A rating upgrade may result if the project achieves COD with no
time or cost overrun and experiences a positive traffic ramp-up.
However, construction delays or material traffic underperformance
could result in negative rating action.


RISHI GANGA: Delays in Debt Repayment Cues ICRA Junk Ratings
------------------------------------------------------------
ICRA has assigned a '[ICRA] D' rating to the INR76.5 crore fund-
based limits of Rishi Ganga Power Corporation Limited.

                           Amount
   Facilities             (INR Cr)       Ratings
   ----------             ---------      -------
   Fund based limits        76.50        [ICRA]D assigned

ICRA's rating action factors in the relatively high credit risk
profile of RGPCL given the relatively high project cost, nascent
stage of operations and a leveraged capital structure. These
factors have resulted in some delays in debt repayment as well.
The high risk profile also factors in hydrological risks as RGPCL
is not covered under deemed generation clause in case of factors
like shortage of water or loss of generation due to silting.
Given that the revenues of the company are linked to actual unit
sales, this exposes the company to risks of variable cash flows.
Further, the project is also subject to relatively high
counterparty credit risks given the poor state of financials for
Uttarakhand discoms. On the positive side, a firm long term PPA
with Uttarakhand Power Corporation Limited coupled with the
supply-demand gap assures low off-take risks while the tariff
structure approved by Uttarakhand Electricity Regulatory
Commission are likely to ensure satisfactory returns (subject to
hydrology). Going forward, the ability of the company to meet the
designed performance parameters, availability of adequate water
from rainfall and snow and timely repayment of its debt
obligations will be key rating drivers.

                        About Rishi Ganga

Rishi Ganga Power Corporation Limited incorporated in 2006 is
promoted by Rajit Group to develop, own and operate a 13.2 MW
small hydro project in District Chamoli, Uttarakhand. This is a
river based project on Rishiganga river to harness approximately
54 m of net head available between the forebay site and the power
house. The project is expected to generate 70.12 MU in a 75%
dependable year (60.64% PLF). The project got commissioned in
September 2011 for a total project cost of INR129 crore.


SAGAR DEVELOPERS: ICRA Rates INR6.5cr Term Loan at '[ICRA]B'
------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR6.50 crore
proposed Term Loan facility of Sagar Developers.

                           Amount
   Facilities             (INR Cr)       Ratings
   ----------             ---------      -------
   Term Loan                 6.50        [ICRA]B assigned

The assigned rating favorably factors in experience of the
promoters in real estate project development though at a small
scale. The firm is however increasing its scale of operations
with few large projects expected to commence in the near term.
The rating also draws comfort from financing policy of the
promoters wherein external borrowings for project funding were
historically low. The rating is however constrained by lack of
track record of the firm in large sized project development.
Further, the sales in the ongoing project have been slow which
has adversely impacted the cash flow position and the firm is in
need to avail external borrowings for the same. Hence, capital
structure is expected to deteriorate in near term. Any
deterioration in macroeconomic environments may further affect
sales and cash flow position of the firm. Going forward, SD's
ability to tie up the sales at adequate rates in timely manner
will remain a key rating sensitivity factor.

Incorporated in 2001, SD is engaged in residential and commercial
real estate development in Pune. The firm has executed few
projects in Pune where the saleable area was around 40,000-50,000
sq. ft. The partners also have other firms which are also engaged
in real estate development although for smaller projects. The
partners have experience of ~15 years in real estate and
construction business.
Recent Results

SD has reported an operating profit before depreciation,
interest, amortization and tax (OPBDITA) of INR0.54 crore in FY11
on an operating income of INR1.02 crore. The firm has reported
profit after tax (PAT) of INR0.39 crore during the same period.


SREE KOPPAMMAL: Delays in Debt Payments Cues ICRA Junk Ratings
--------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]D' to the Rs.11.00
crore term loan facilities and INR11.00 crore fund based
facilities of Sree Koppammal Cotton Spinning Mills Private
Limited. ICRA has also assigned a short-term rating of '[ICRA]D'
to the INR5.00 crore non-fund based facilities of the Company.

                           Amount
   Facilities             (INR Cr)       Ratings
   ----------             ---------      -------
   Term loan facilities     11.00        [ICRA]D /assigned
   (long-term)

   Fund based facilities    11.00        [ICRA]D /assigned
   (long-term)

   Non-fund based            5.00        [ICRA]D /assigned
   facilities (short-term)

The assigned ratings consider the delays witnessed in servicing
of bank term debt obligations beyond the scheduled due dates by
the Company. The Company is a spinning entity with a relatively
small scale, which restricts the benefits of scale economics and
financial flexibility. Further given the fragmented nature of
industry which restricts pricing flexibility, and subdued demand
for yarn since the beginning of previous fiscal, the company's
financial performance during 2011-12 has been weak characterised
by weak margins and stretched leverage indicators. Strong
experience of the promoters in the textile industry is expected
to support the company's business volumes.

Sree Koppammal Cotton Spinning Mills Private Limited was
incorporated in 1995 by Mr.T.R.S. Babu, Mr.T.R.S. Vijairam and
Mr.T.R.S. Karthikeyan, sons of late Mr.T.R. Subbaraj. The
promoters belong to "Sri Jayavilas Group". The Company is a
closely-managed business which is engaged in the manufacturing of
cotton yarn and OE yarn. Currently, the company is operating with
a capacity of 32,544 spindles and 840 rotors.

Recent Results

For the first half year ended September 2011, the Company's
losses stood of INR0.1 crore on an operating income of
INR28.7 crore.


TARGET ASSOCIATES: Inadequate Info Cues Fitch to Migrate Ratings
----------------------------------------------------------------
Fitch Ratings has migrated India-based Target Associates Private
Limited's 'Fitch B-(ind)' National Long-Term rating with a Stable
Outlook to the non-monitored category.

The ratings have been migrated to the non-monitored category due
to lack of adequate information, and Fitch will no longer provide
ratings or analytical coverage of TAPL.  The ratings will remain
in the non-monitored category for a period of six months and be
withdrawn at the end of that period.

However, in the event the issuer starts furnishing information
during this six-month period, the ratings could be reinstated and
will be communicated through a Rating Action Commentary.

Fitch has also migrated TAPL's bank loan ratings to the non-
monitored category as follows:

  -- INR144.4m long-term loans: migrated to 'Fitch B-(ind)nm'
     from 'Fitch B-(ind)'

  -- INR12m non-fund-based working capital limits: migrated to
     'Fitch A4(ind)nm' from 'Fitch A4(ind) '



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


ADARO ENERGY: BEP Stake Acquisition No Impact on Moody's Ba1 CFR
----------------------------------------------------------------
Moody's Investors Services says that Adaro Energy's plan to
acquire a controlling stake in PT Bhakti Energy Persada will have
no immediate impact on Adaro Indonesia's Ba1 corporate and senior
unsecured bond ratings.

Moreover, in the long term, the group will benefit from a higher
level of geographic diversification, although still within
Indonesia.

Adaro Indonesia is a wholly owned subsidiary of Adaro Energy Tbk.

The outlook for the ratings remains stable.

"The proposed acquisition will provide long-term benefits with
regard to geographical diversification, while the payment options
for the transaction would also provide Adaro Energy with a degree
of flexibility, which is important in view of softer-than-
expected thermal coal prices", says Simon Wong, a Vice President
and Senior Analyst at Moody's. "Such flexibility will place less
pressure on the ratings of Adaro Indonesia as it is the principal
cash flow generator and borrower of record for Adaro Energy's
expansion and diversification strategy."

Adaro Energy announced that on May 28, 2012 that it has signed an
agreement for two options to acquire a controlling stake in BEP.

The first option provides a convertible 3-year loan of up to
USD500 million over the next three years, and which may increase
Adaro Energy's stake in BEP to 56% from 10.2%.

The second option provides a 3-year share swap option involving
2.39 billion shares in Adaro Energy and a 79.8% stake in BEP, and
which would increase Adaro Energy's ownership in BEP to 90%.

The transaction is between related parties as BEP is majority
owned by two of Adaro Energy's existing five major shareholders.

No immediate cash injection is required from Adaro Energy. The
size and timing of the availability of the convertible loan is at
the discretion of Adaro Energy, and is expected to be disbursed
in accordance with the capex requirements of BEP over the next
three years.

Adaro Indonesia is the principal cash flow generator for Adaro
Energy and plays a key role in Adaro Energy's vertical
integration strategy. Adaro Indonesia has been a borrower of
record (apart from SIS and MBP) and funds have been channeled
through Adaro Energy as Guarantor to the wider group for
acquisitions as well as for prepayment of services.

Adaro Indonesia's 2012 EBITDA margin is likely to come under
modest pressure due to the decline in thermal coal prices, and a
slight increase in strip ratios, but the situation could be
partially alleviated by lower fuel prices.

"Liquidity is expected to tighten due to lower selling prices and
a sizable capex plan that includes the development of recently
acquired greenfield coal projects," adds Mr. Wong, Moody's lead
analyst for Adaro Indonesia. However, as at March 31, 2012, Adaro
Energy has US$511.6 million of cash on hand and US$700 million
undrawn loan facilities.

Adaro Energy is projected to incur approximately US$700 million
in capex in FY2012 for heavy equipment, construction of an
overburden conveyor (including a 2x30MW mine-mouth power plant),
a river terminal, a jetty terminal at the IBT port, as well as
for the development of Adaro Energy's recently-acquired mines and
for maintenance.

"Nevertheless, Adaro Energy has some flexibility over its capex
plan. Based on its good track record, we expect the Adaro group
to balance its growth ambitions and diversification plans, as
well as financial discipline during this period of softening
thermal coal prices," says Mr. Wong.

BEP has seven coal mining concessions in Kalimantan, which are
estimated to have total JORC compliant resources of 9.53 billion
metric tons of low-rank coal as estimated by SRK Consulting
(Australasia) Pty Ltd.

In 2011, Adaro Energy made three acquisitions in South Sumatra,
totaling US$311.5 million, and comprising two greenfield coal
projects and an integrated coal logistics service provider.

Although future operating cash flows from BEP and the other
projects will not be directly accessible by the lenders to Adaro
Indonesia, such investments are expected to be captured under
Adaro Energy's guarantee to Adaro Indonesia's loan and bond
creditors.

Adaro Indonesia is one of the largest single-site coal producers
in the southern hemisphere and one of the world's largest sub-
bituminous coal companies. It exports 77.4% of its products to
Asia, the US and Europe, while the rest is for the domestic
market. It is wholly owned by Adaro Energy, an integrated energy
group, listed on the Indonesia Stock Exchange.



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


OLYMPUS CORP: Former CEO Wins GBP10 Million in Settlement
---------------------------------------------------------
Olympus Corp. announced Friday that it reached a settlement on a
series of disputes, including those related to the dismissal
Michael Woodford from his position as the Company's former
Representative Director, President and Chief Executive Officer,
on May 29, 2012.  The settlement was approved at the board of
directors' meeting held on June 8, 2012.

In January this year, Mr. Woodford filed an employment tribunal
action to the UK Employment Tribunal against the Company,
accusing it of infringing on the UK Employment Rights Act 1996
through such actions as dismissing Mr. Woodford unfairly from the
position and for causing unfair losses to him.

The Company responded to the employment tribunal action,
including a close examination of the allegations made by
Mr. Woodford and jurisdiction issues, and reached a settlement
with Mr. Woodford on May 29 this year.

Olympus said: "The Company judged that reaching the settlement
with Mr. Woodford before commencement of the hearing procedure in
relations to the employment tribunal action would be in the
Company's best interest, considering the overall implications,
including an increase in the cost of lawsuit for prolonging the
employment tribunal action as well as the cost of human
resources, and the resulting impact on the Company's business
operations.

The settlement will mean that Mr. Woodford will withdraw the
employment tribunal claim, and the Company will pay GBP10 million
(JPY1.245 billion) as a settlement payment to Mr. Woodford.
Furthermore, the settlement will also bring to an end to Mr.
Woodford's series of disputes with the Company, including that
over his dismissal."

                        About Olympus Corp.

Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products.  As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.

As reported in the Troubled Company Reporter-Asia Pacific on
May 14, 2012, Japan Today said Olympus Corp. posted a
JPY48.99 billion loss in the year to March, a shortfall largely
tied to a loss cover-up at the camera and medical equipment maker
that hammered Japan's corporate-governance image.  Japan Today
said the firm attributed the loss to a scandal that sparked
lawsuits and the arrest of former executives accused of
hiding about US$1.7 billion in investment losses. According to
the report, Olympus said the result, which reversed a small
profit of JPY3.87 billion a year earlier and was bigger than
forecast, was largely attributed to costs related to the cover-
up.


OLYMPUS CORP: To Cut 2,700 Jobs by 2014
---------------------------------------
MarketWatch reports that Olympus Corp. said Friday it will cut
around 2,700 jobs and restructure its global manufacturing
operations as it looks to recover from a US$1.5 billion
accounting scandal that dragged it into a deep net loss in the
last fiscal year.

In its medium-term plan through the fiscal year ending in March
2017, MarketWatch relates, the Japanese maker of cameras and
medical-imaging equipment said it aims to make the job cuts by
March 2014.  Olympus also said it aims to consolidate its global
manufacturing base by 40% by March 2015 and raise its capital
adequacy ratio to 30% or more over the next five years, the news
agency relays.

For the current fiscal year that began in April, Olympus expects
to return to the black with a JPY7 billion net profit, compared
with a year-earlier loss of JPY48.99 billion, according to
MarketWatch.

For the fiscal year beginning April 2014, MarketWatch adds, the
company forecasts a net profit of JPY40 billion, and expects a
net profit of JPY85 billion in the fiscal year beginning
April 2016.

                        About Olympus Corp.

Based in Japan, Olympus Corporation (TYO:7733) --
http://www.olympus-global.com/-- manufactures and sells medical
products, life and industrial products, imaging products,
information communication products and other products.  As of
March 31, 2011, the Company has 188 subsidiaries and 11
associated companies.

As reported in the Troubled Company Reporter-Asia Pacific on
May 14, 2012, Japan Today said Olympus Corp. posted a
JPY48.99 billion loss in the year to March, a shortfall largely
tied to a loss cover-up at the camera and medical equipment maker
that hammered Japan's corporate-governance image.  Japan Today
said the firm attributed the loss to a scandal that sparked
lawsuits and the arrest of former executives accused of
hiding about US$1.7 billion in investment losses. According to
the report, Olympus said the result, which reversed a small
profit of JPY3.87 billion a year earlier and was bigger than
forecast, was largely attributed to costs related to the cover-
up.


TOKYO ELECTRIC: May be Recipient of JPY500-Bil. in Loans from DBJ
-----------------------------------------------------------------
The Japan Times Online reports that the Development Bank of Japan
may extend JPY500 billion in loans in fiscal 2012 to eight
regional utilities operating nuclear plants, excluding Tokyo
Electric Power Co., sources said Wednesday.

According to the report, sources said the state-backed lender
wants to help electricity companies cover the higher costs of
operating thermal power plants while all of Japan's commercial
reactors remain offline.

Sources said the loans would also enable utilities to finance
redemptions of their bonds so they can ensure a stable power
supply to their service areas, The Japan Times Online relates.

The report notes that the amount being considered is the same as
in fiscal 2011, when the DBJ also loaned the power companies
JPY500 billion in total.

The Japan Times Online adds that Japan's three largest banking
groups and certain regional lenders are also willing to
financially assist the eight utilities, whose total borrowing in
fiscal 2012 is predicted to be around the JPY3 trillion required
in the previous year, including DBJ loans.

The lender is currently examining each utility's business plan
and, if necessary, will discuss syndicated loans with other
financial institutions, the sources, as cited by The Japan Times
Online, said.

                      About Tokyo Electric

Tokyo Electric Power Company is the largest electric power
company in Japan and the largest privately owned electric
utility in the world.  TEPCO supplies electricity to meet the
increasingly diversified and sophisticated demands of its over
28.09 million customers in the metropolitan Tokyo, which is the
political, economic, and cultural center of Japan, and eight
surrounding prefectures.

Bloomberg News said the utility is battling radiation leaks at
the Fukushima Dai-Ichi power plant north of Tokyo after a
March 11 earthquake and tsunami knocked out its cooling systems,
causing the biggest atomic accident in 25 years.  More than
50,000 households were forced to evacuate and Bank of America
Corp.'s Merrill Lynch estimates TEPCO may face compensation
claims of as much as JPY11 trillion (US$135 billion).

As reported in the Troubled Company Reporter-Asia Pacific on
May 11, 2012, Bloomberg News said Japan's government took control
of Tepco and agreed to provide JPY1 trillion (US$12.5 billion) as
part of the nation's largest bailout since the rescue of the
banking industry in the 1990s.

Bloomberg related that the government will obtain more than 50%
of the voting rights in the utility under a 10-year plan approved
on May 8 by Trade and Industry Minister Yukio Edano. The
government stake may rise to two-thirds if TEPCO fails to meet
goals that include cost cuts and compensation payments, said
Bloomberg.

Under the plan, Bloomberg disclosed, the utility aims for an
unconsolidated profit of JPY106.7 billion in the year ending
March 2014, based on an electricity rate increase and the restart
of the Kashiwazaki Kariwa nuclear station.  Bloomberg says
nationalization of TEPCO paves the way for the government to
restructure the electricity industry monopolized by regional
utilities and possibly break up power generation and transmission
networks to allow more competition.



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


NZF GROUP: Continued Asset Freezing May Lead to Liquidation
-----------------------------------------------------------
Stuff.co.nz reports that NZF Group could remain frozen for eight
more months, a situation managing director Mark Thornton said
could result in liquidators being appointed.

The report notes that NZF Group had its assets frozen in April by
High Court order after an application by receivers of its
subsidiary NZF Money.  KordaMentha, seeking to recover
NZ$16.4 million of investor funds, claim the parent company
stripped NZ$3 million of assets out of the finance company before
its collapse.

NZF Group was defending the claim and rejected any suggestion NZF
Money was shortchanged by that transaction.

According to the report, lawyer Bruce Stewart, acting for
KordaMentha, said Thursday a request for an urgent hearing into
the claim had been declined and the matter was now due to be
heard in a 10-day hearing beginning in the High Court in Auckland
on February 18.

Stuff.co.nz says the scheduling will potentially leave NZF Group
frozen into the New Year, raising the chance of administrators
being brought in.

The report relates that Mr. Thornton said if the group was
stopped from using its liquid assets it would pay interest to the
note-holders until the cash was used up.

Stuff.co.nz recalls that NZF Group last month suspended interest
payments to holders of $18.1m in capital notes and told the NZX
payments could not be made while the freezing order continued.
Trading in the capital notes has flatlined since.

The report adds that Mr. Thornton downplayed the likelihood of
liquidation and said he hoped to have the dispute resolved before
the February court date.

                         About NZF Group

NZF Group Limited (NZE:NZF)-- http://www.nzf.co.nz/-- is a
provider of financial services.  The Company provides a
diversified range of services including investment, lending,
insurance and mortgage broking. NZF operates in four divisions:
property finance, home loans, consumer finance and financial
services distribution.


SOUTH CANTERBURY: Liquidators Appointed to 8 SCF Companies
----------------------------------------------------------
John Fisk and David Bridgman, of PwC, have been appointed
Liquidators to eight companies within the South Canterbury
Finance Group on June 7, 2012.

The appointments were made by shareholder special resolutions
following approval of the Liquidators' appointment from the High
Court in Wellington. The liquidations are the final step in the
insolvency process of the Group following the sale of the
remaining non-cash assets to Crown Asset Management Limited on
June 1, 2012.

Liquidator Mr John Fisk said, "While it is still early in the
process, we will be reviewing the position of the eight
companies, and will look to determine the most appropriate way
forward in order to maximise returns to creditors."

Consistent with their obligations under the Companies Act, the
Liquidators will provide a statutory report to all known
creditors of each company within the next five working days.
Creditors that have contracted with the Receivers will remain the
responsibility of the Receivers and will be paid by them
separately.

"We will look into the events that led to receivership and
liquidation of the Group to see if there are any situations where
there may be further recoveries available," adds Mr Fisk.

The Liquidators will continue to provide further updates to
creditors as appropriate. The liquidation of the ultimate parent
company of the Group, Southbury Group Limited, is expected within
the next three months.

               Crown Asset Management Acquires Assets

Crown Asset Management Limited earlier this month announced that
it acquired South Canterbury Finance's non-cash assets from the
company's Receivers. The non-cash assets acquired by the Crown
include:

- The portfolio of remaining loans in the Bad Bank loan book;
- Sundry equity investments; and
- remaining property investments.

No cash will be paid to complete the acquisition, with settlement
by way of the Crown releasing some of the debt that SCF owes
after the Crown paid depositors NZ$1.58 billion under the terms
of the now-expired Retail Deposit Guarantee Scheme.

The Government last year announced that it would set up CAML to
manage these assets. Now that it has acquired assets from SCF's
Receivers, negotiations will commence with Receivers of other
finance companies that were in the Retail Deposit Guarantee
Scheme to acquire those assets.

CAML Chairman Gary Traveller said the company would use premises
in Christchurch that were previously occupied by SCF and would
continue to use staff who had been working for the Receivers on
loan recoveries. CAML's day-to-day operations would be run by
General Manager Sharon Burleigh.

Mr. Traveller said CAML would be self funding, with operating
costs covered by the revenue it generates from realisation of
assets and from repayments of loans that it has acquired. As with
other Crown companies, CAML operates at arm's length from
shareholding Ministers to ensure it has a commercial focus.

                      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.



===========
T A I W A N
===========


CONCORD SECURITIES: Fitch Affirms 'BB+' LT IDR Rating
-----------------------------------------------------
Fitch Ratings has downgraded one Taiwanese small- to medium-sized
securities company, affirmed eight others and revised one Rating
Outlook to Negative from Stable.

Horizon Securities Co., Ltd. was downgraded to National Long-Term
'BBB(twn)' from 'BBB+(twn)' and to National Short-Term 'F3(twn)'
from 'F2(twn)'.  At the same time, the agency has revised the
Rating Outlook on the National Long-Term Rating of Pacific
Securities Corporation (Pacific) to Negative from Stable.

The companies affirmed are Oriental Securities Corporation,
Concord Securities Corporation, Ta Chong Securities Co., Ltd., Ta
Ching Securities Co., Ltd., Tachan Securities Co., Ltd, Reliance
Securities Co., Ltd., Pacific, and Primasia Securities Co., Ltd.
(Taiwan).  The Outlooks are Stable except for Pacific.

The downgrade of Horizon's ratings reflects its high volatility
in earnings relative to peers due to its limited scale in the
core brokerage business and elevated market risk exposures
through proprietary trading.  The company's recently announced
property disposal will benefit its capital and liquidity
position.  Nonetheless, its balance sheet would still be weaker
than that of 'BBB+(twn)'-rated domestic peers. Fitch does not
expect Horizon's capitalisation and liquidity to deteriorate
materially in the near- to medium-term, and thus a further
downgrade is unlikely.

The revised Outlook on Pacific to Negative reflects Fitch's
reassessment that a significantly improved business model is
unlikely in the near-term.  Negative rating action is likely to
result if over the next two years, the company is unable to
demonstrate a capability to generate sustainable profits.  Any
notable increase in risk-taking behaviour or an unexpected large
trading loss will be a downgrade trigger.

The ratings of the affirmed securities companies reflect their
ability to keep their risk profiles in check despite heightened
market volatility and depressed trading volumes.  Ongoing weak
equity market sentiment is likely to result in losses in
brokerage operations due to a sharp decline in commissions and
likely losses in trading.  Nonetheless, sizeable losses are
unlikely given low-to-moderate market risk exposures at these
companies.  Liquidity risk is manageable, despite their reliance
on wholesale funding, due to flexible liquidity arrangements and
low risk of asset/liability duration mismatch. Moreover, a strong
capital base should provide sufficient buffer against adverse
business conditions.

Fitch views that rating upside potential of the affirmed entities
is limited, unless companies can demonstrate a sustained
improvement in earnings quality, aided by the benefits of
enhanced franchise value.  Conversely, any sharp increase in risk
appetite and/or unexpected large trading losses resulting in
material deterioration in capital may trigger a negative rating
action.

The rating actions are as follows:

Oriental:

  -- Long-Term Foreign Currency Issuer Default Rating (IDR)
     affirmed at 'BBB-'; Outlook Stable
  -- Short-Term Foreign currency IDR affirmed at 'F3'
  -- National Long-Term rating affirmed at 'A(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'F1(twn)'

Concord:

  -- Long-Term Foreign Currency IDR affirmed at 'BB+'; Outlook
     Stable
  -- Short-Term Foreign Currency IDR affirmed at 'B'
  -- National Long-Term rating affirmed at 'A-(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'F2(twn)'

Horizon:

  -- National Long-Term rating downgraded to 'BBB(twn)' from
     'BBB+ (twn)'; Outlook Stable National Short-Term rating
     downgraded to 'F3(twn)' from 'F2(twn)'

Ta Chong:

  -- National Long-Term rating affirmed at 'BBB+(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'F2(twn)'

Ta Ching:

  -- National Long-Term rating affirmed at 'BBB+(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'F2(twn)'

Tachan:

  -- Long-Term Foreign Currency IDR affirmed at 'BB'; Outlook
     Stable
  -- Short-Term Foreign Currency IDR affirmed at 'B'
  -- National Long-Term rating affirmed at 'BBB+(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'F2(twn)'

Reliance:

  -- National Long-Term rating affirmed at 'BBB(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'F3(twn)'

Pacific:

  -- National Long-Term rating affirmed at 'BBB-(twn)'; Outlook
     revised to Negative from Stable
  -- National Short-Term rating affirmed at 'F3(twn)'

Primasia:

  -- National Long-Term rating affirmed at 'BB(twn)'; Outlook
     Stable
  -- National Short-Term rating affirmed at 'B(twn)'



                             *********

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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