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        T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

             Wednesday, July 4, 2012, Vol. 15, No. 132

                            Headlines


A U S T R A L I A

INVESTEC BANK: Fitch Affirms 'BB+' Subordinated Debt Rating
PERPETUAL MORTGAGE: To Cut 300 Jobs, Sell Mortgage Services Biz


H O N G  K O N G

A.S.K PACIFIC: Creditors' Proofs of Debt Due July 27
BILFINGER BERGER: Seng and Lo Step Down as Liquidators
CAPITAL GAIN: Creditors' Proofs of Debt Due July 29
EASTERN PERAL: Hok and Boswell Appointed as Liquidators
ETERNAL LINK: Commences Wind-Up Proceedings

MOTOR RESTAURANT: Court Enters Wind-Up Order
NICEWIN GARMENT: Court to Hear Wind-Up Petition on July 18
PROFIT STAR: Creditors Get 8.70% Recovery on Claims
REGENT ENTERPRISE: Court Enters Wind-Up Order
RICO CORPORATION: Watt Hung Chow Steps Down as Liquidator

SHEEN WIN: Creditors' Meeting Set for July 17
TALENT DECADE: Court Enters Wind-Up Order
TASTE INTERIORS: Court Enters Wind-Up Order
TELEMEDIA CAPITAL: Creditors' Proofs of Debt Due July 16
WING HUNG: Court Enters Wind-Up Order

WINSON TRADING: Creditors' Proofs of Debt Due July 13


I N D I A

ASMITHA MICROFIN: CRISIL Lifts Rating on INR10-Bil. Loans to 'C'
BHANSALI ENGINEERING: Fitch Cuts National LT Rating to 'BB(ind)'
BRAHMANI RIVER: Fitch Affirms National LT Rating at 'BB+(ind)'
CG ISPAT: Fitch Migrates Bank Loan Ratings as Non-Monitored
EURO INDIA: CRISIL Assigns 'CRISIL B-' Rating to INR200MM Loans

HARSHNI TEXTILES: CRISIL Cuts Rating on INR843.30MM Loans to 'B+'
KINGFISHER AIRLINES: ICICI Sells INR430cr Kingfisher Loan
KINGFISHER AIRLINES: Pilots' Strike to Continue as Talks Fail
MEENAKSHI ENERGY: Fitch Cuts Rating on Sr. Bank Loans to 'D(ind)'
MY LEISURE: CRISIL Rates INR55 Million Cash Credit 'CRISIL B+'

PANCHAM JEWELLERS: CRISIL Rates INR60MM Cash Credit 'CRISIL B+'
PRERNA COTPRESS: CRISIL Rates INR80MM Loans 'CRISIL B-'
RADHESHYAM INDUSTRIES: CRISIL Rates INR80MM Loan at 'CRISIL B+'
RAJADHEEPAM SPINNING: CRISIL Rates INR117.9MM Loans 'B+'
SHREE GANESH: CRISIL Rates INR85MM Cash Credit at 'CRISIL B'

SHREYANS WIRES: CRISIL Places 'B' Rating on INR117.5MM Loans
SRINIVASA GAYITHRI: CRISIL Cuts Rating on INR527.5MM Loan to 'C'
SURINDER SAT: CRISIL Rates INR60MM Cash Credit at 'CRISIL B'
TARA INFRATECH: Delay in Loan Payment Cues CRISIL Junk Ratings
TARA SALES: CRISIL Rates INR180MM Term Loan at 'CRISIL B+'

TAYAL ENERGY: Fitch Assigns 'Fitch D(ind)' National LT Rating
VENKATESH FOUNDATION: CRISIL Puts 'D' Rating on INR150MM Loans
* INDIA: Current-Account Deficit Widens to 4.2% of GDP


J A P A N

RENESAS ELECTRONICS: To Cut More Than 5,000 Jobs Through Buyouts
SANKO STEAMSHIP: Files for Bankruptcy Protection in Tokyo


M A L A Y S I A

PRIME GLOBAL: Reports $281,000 Net Income in April 30 Quarter


M O N G O L I A

* Fitch Says Mongolia Election Won't Solve Credit Pressures


N E W  Z E A L A N D

AORANGI SECURITIES: Returns to Aorangi Investors in Doubt
AORANGI SECURITIES: Court Decision Sets Out Distribution of Funds
AORANGI SECURITIES: Jean Hubbard's Stand Disappoints Managers
CRAFAR FARMS: Buyer Lacks Business Acumen, Fay-led Group Says
CRAFAR FARMS: Court Bans NZ$16 Farm Buyer; Faces Arrest

GRACE HOLDINGS: Director Blames Chief Trader for Collapse


S I N G A P O R E

FYNS KRAN: Creditors Get 100% Recovery on Claims
GOLDLINK ITALIA: Creditors' Proofs of Debt Due July 13
GOLDLINK TEXTILE: Creditors' Proofs of Debt Due July 13
GLOBAL A&T: S&P Affirms 'B' Long-Term Corporate Credit Rating
HONG SENG: Court to Hear Wind-Up Petition July 13

RESOURCE GEOTECH: Creditors' Proofs of Debt Due July 13


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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


INVESTEC BANK: Fitch Affirms 'BB+' Subordinated Debt Rating
-----------------------------------------------------------
Fitch Ratings has removed the Rating Watch Negative (RWN) from
Investec Bank (Australia) Limited's Long-Term Issuer Default
Rating (IDR), Short-Term IDR and Viability Rating (VR), and
simultaneously affirmed the ratings following the completion of
an asset sale that strengthened the bank's balance sheet. A
Negative Outlook has been assigned to the Long-Term IDR.

IBAL's Long- and Short-Term IDRs and VR reflect strong capital
and liquidity positions and significantly improved asset quality
following the sale of a legacy commercial property loan book.
Weak profitability and a limited franchise offset these factors.
There is a strong level of ordinary support factored into IBAL's
ratings. The Negative Outlook on the Long-Term IDR therefore
reflects a similar Outlook on the Long-Term IDR of IBAL's parent,
UK-based Investec Bank plc (IBP; 'BBB-'/Negative/'F3').

The sale of AUD270 million legacy commercial property loans led
to a significant improvement in asset quality, with impaired
loans/gross loans falling to 1.78% in the financial year ended 31
March 2012 (FY12) from 10.5% at 30 September 2011. The sale did
not materially impact the bank's existing strong capital and
liquidity positions despite being undertaken at a significant
discount to book value, and resulting in a sizeable (AUD72m)
after-tax loss in FY12. At FYE12, IBAL's Fitch core capital ratio
was 16.6%, while its regulatory liquidity ratio (high quality
liquid assets/liabilities) was 35.7% - both ratios are strong
relative to those of domestic peers.

IBAL has established a number of niche businesses, despite
remaining a small player in the Australian financial system. The
sale of the legacy commercial property portfolio should allow
management greater focus on the remaining core portfolio.
However, the operating environment remains subdued and the
earnings of a number of IBAL's businesses are cyclical in nature,
resulting in a somewhat lumpy revenue flow. Core profitability
remains weak, although it should improve somewhat in FY13 as a
number of one-off costs in FY12 drop out.

Negative rating pressure may arise from a material deterioration
in the bank's capital position, a fall in its regulatory
liquidity ratio below 20%, or a significant weakening in its
asset quality or its franchise in its niche markets. Negative
action on IBP's ratings would also likely translate into negative
action on IBAL's ratings. The Negative Outlook on IBAL's Long-
Term IDR indicates positive rating action is unlikely in the
short- to medium-term.

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 rating actions are as follows:

Investec Bank (Australia) Limited

Long-Term IDR: affirmed at 'BBB-'
                RWN removed
                Negative Outlook assigned

Short-Term IDR: affirmed at 'F3'
                 RWN removed

Viability Rating: affirmed at 'bbb-'
                   RWN removed

Support Rating: affirmed at '3'

Government-guaranteed debt: affirmed at 'AAA'

Subordinated debt: affirmed at 'BB+'
                    RWN removed


PERPETUAL MORTGAGE: To Cut 300 Jobs, Sell Mortgage Services Biz
---------------------------------------------------------------
Wouter Klijn at InvestorDaily reports that Perpetual Mortgage has
announced a three-year restructuring program that will see the
company cut 300 full time equivalents (FTEs) over the next two
years, while it is also in advanced discussions to sell its
lenders' mortgage services business.

InvestorDaily says Perpetual Lenders Mortgage Services, the
company's mortgage processing business, has 280 FTEs.

The measures will deliver AUD50 million in pre-tax annual cost
savings from full year 2015, the report relates.

"The program we are announcing today will deliver ongoing annual
cost savings of AUD50 million pre-tax in FY15 [financial year
2015] through a program of asset sales and business
reorganisation," InvestorDaily quotes Perpetual chief executive
Geoff Lloyd as saying.  "These cost savings are equivalent to 18
per cent of the FY12 normalised cost base."

According to the report, Mr. Lloyd said the transformation
strategy was the result of a careful and in-depth assessment of
the issues, challenges and opportunities Perpetual is facing.

InvestorDaily says Perpetual will also cut the remuneration of
its directors by 30% or $0.5 million from July 1. As part of
these measures, the chairman's remuneration will be reduced by
42%, while non-executive director will see an average reduction
of 25%, the report adds.

Perpetual had AUD22.9 billion in funds under management as of
May 31, 2012, compared to AUD23.7 billion as at March 31, 2012,
InvestorDaily discloses.

Perpetual Mortgage Services Pty Limited offers a range of
mortgage services.



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


A.S.K PACIFIC: Creditors' Proofs of Debt Due July 27
----------------------------------------------------
Creditors of A.S.K Pacific Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 27, 2012, to be included in the company's dividend
distribution.

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

The company's liquidator is:

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


BILFINGER BERGER: Seng and Lo Step Down as Liquidators
------------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Bilfinger Berger Finance (HK) Limited on June 29, 2012.


CAPITAL GAIN: Creditors' Proofs of Debt Due July 29
---------------------------------------------------
Creditors of Capital Gain Development Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 29, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on June 11, 2012.

The company's liquidator is:

         Ho Sun Fung Allan
         Room 2702-3, C.C. Wu Building
         302-8 Hennessy Road
         Wanchai, Hong Kong


EASTERN PERAL: Hok and Boswell Appointed as Liquidators
-------------------------------------------------------
Rainier Hok Chung Lam and Anthony David Kenneth Boswell on
June 20, 2012, were appointed as liquidators of Eastern Peral
Insurance Advisers Limited.

The liquidators may be reached at:

         Rainier Hok Chung Lam
         Anthony David Kenneth Boswell
         22/F, Prince's Building
         Central, Hong Kong


ETERNAL LINK: Commences Wind-Up Proceedings
-------------------------------------------
Members of Eternal Link Corporation Limited, on June 22, 2012,
passed a resolution to voluntarily wind up the company's
operations.

The company's liquidator is:

         Ng Kwok Cheung Bernard
         Flat B,16/F
         Empire Land Commercial Centre
         81-85 Lockhart Road
         Wanchai, Hong Kong


MOTOR RESTAURANT: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Hong Kong entered an order on April 16, 2012,
to wind up the operations of Motor Restaurant Limited.

The company's liquidator is Yuen Tsz Chun Frank.


NICEWIN GARMENT: Court to Hear Wind-Up Petition on July 18
----------------------------------------------------------
A petition to wind up the operations of Nicewin Garment Limited
will be heard before the High Court of Hong Kong on July 18,
2012, at 9:30 a.m.

Hui Chi Leung filed the petition against the company on May 15,
2012.

The Petitioner's solicitors are:

          Li, Wong, Lam & W.I. Cheung
          22nd Floor, Infinitus Plaza
          No. 199 Des Voeux Road
          Central, Hong Kong


PROFIT STAR: Creditors Get 8.70% Recovery on Claims
---------------------------------------------------
Profit Star International Holdings Limited, which is in
liquidation, will declare the first ordinary dividend to its
creditors on July 13, 2012.

The company will pay 8.70% for ordinary claims.

The company's liquidator is:

         Cheung Hok Hin Alan
         Suite 2302, 23/F
         Seaview Commercial Building
         21 Connaught Road
         West, Sheung Wan
         Hong Kong


REGENT ENTERPRISE: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on April 3, 2012, to
wind up the operations of Regent Enterprise Tin Box
(International) Limited.

The company's liquidator is Yuen Tsz Chun Frank.


RICO CORPORATION: Watt Hung Chow Steps Down as Liquidator
---------------------------------------------------------
Watt Hung Chow stepped down as liquidator of Rico Corporation
Limited on June 27, 2012.


SHEEN WIN: Creditors' Meeting Set for July 17
---------------------------------------------
Creditors of Sheen Win Development Limited will hold their
meeting on July 17, 2012, at 4:30 p.m., for the purposes provided
for in Sections 241, 242, 243, 244 of the Companies Ordinance.

The meeting will be held at 2001A2, Nan Fung Centre, 264-298
Castle Peak Road, Tsuen Wan, New Territories, in Hong Kong.


TALENT DECADE: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on June 20, 2012, to
wind up the operations of Talent Decade Holdings Limited.

The official receiver is Teresa S W Wong.


TASTE INTERIORS: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on April 19, 2012,
to wind up the operations of Taste Interiors Limited.

The company's liquidator is Yuen Tsz Chun Frank.


TELEMEDIA CAPITAL: Creditors' Proofs of Debt Due July 16
--------------------------------------------------------
Creditors of Telemedia Capital Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by July 16, 2012, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on June 11, 2012.

The company's liquidators are:

         Patrick Cowley
         Lui Yee Man
         8th Floor, Prince's Building
         10 Chater Road
         Central, Hong Kong


WING HUNG: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on April 3, 2012, to
wind up the operations of Wing Hung Knitwear Garment Factory
Limited.

The company's liquidator is Yuen Tsz Chun Frank.


WINSON TRADING: Creditors' Proofs of Debt Due July 13
-----------------------------------------------------
Creditors of Winson Trading (H.K.) Company Limited, which is in
compulsory liquidation, are required to file their proofs of debt
by July 13, 2012, to be included in the company's dividend
distribution.

The company's liquidators are Kong Chi How Johnson and Lo Siu Ki.



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I N D I A
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ASMITHA MICROFIN: CRISIL Lifts Rating on INR10-Bil. Loans to 'C'
----------------------------------------------------------------
CRISIL has upgraded its rating on the debt instrument and bank
facilities of Asmitha Microfin Ltd to 'CRISIL C' from 'CRISIL D'.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Long-Term Bank          7,452      CRISIL C (Upgraded from
   Facility                           'CRISIL D')

   Proposed Long-Term      2,548      CRISIL C (Upgraded from
   Bank Loan Facility                 'CRISIL D')

The upgrade reflects the timely servicing of debt by Asmitha over
the past seven months and its improved liquidity, post
finalization of its corporate debt restructuring (CDR). The
upgrade also reflects CRISIL's belief that Asmitha will meet its
debt obligations as per the revised repayment schedule over the
near term. Asmitha will remain under CDR, until the repayment of
its restructured debt obligations. Furthermore, the company has
maintained its disbursements outside Andhra Pradesh, post the
promulgation of the AP ordinance on the back of its healthy
collections in those regions. CRISIL believes that Asmitha will
sustain the aforementioned trend over the near term. However,
Asmitha's capitalisation will remain under pressure as the
company will have to make higher provisions in 2012-13 (refers to
financial year, April 1 to March 31) on its delinquent loans in
AP. This, along with the constrained funding environment, is
expected to negatively impact the company's credit risk profile
over the medium term.

The rating reflects Asmitha's constrained financial risk profile
and weak capitalization as a result of deteriorating asset
quality and earnings profile. These rating weaknesses are
partially offset by the extensive experience of the company's
promoters in the microfinance industry.

                      About Asmitha Microfin

Asmitha was set up in 2002 as a non-banking financial company. It
is a microfinance institution, which offers microcredit to women.
The company follows the microcredit model of Grameen Bank,
Bangladesh. As on March 31, 2012, Asmitha's loans outstanding
aggregated INR12.4 billion (of which AP accounted for around 53
per cent of loans outstanding as on March 31, 2012).

For 2010-11, Asmitha reported a profit after tax (PAT) of
INR209.7 million on a total income of INR4.4 billion, against a
PAT of INR588.0 million on a total income of INR2.86 billion for
2009-10. For the nine months ended December 31, 2011, Asmitha
reported a net loss of INR1.36 billion on a total income of
INR793 million.


BHANSALI ENGINEERING: Fitch Cuts National LT Rating to 'BB(ind)'
----------------------------------------------------------------
Fitch Ratings has downgraded India-based Bhansali Engineering
Polymers Limited's National Long-Term rating to 'Fitch BB(ind)'
from 'Fitch BBB-(ind)'. The Outlook is Negative.

The downgrade reflects the sharp deterioration in BEPL's credit
metrics in FY12 (year end March), with interest coverage
(operating EBITDA/gross interest) declining to 1.14x (FY11: 4x)
and financial leverage (adjusted net debt/ EBITDA) increasing to
7.51x (2.16x). This is a result of a significant decline in
EBITDA margins to 3.9% in FY12 (FY11: 12.1%) due to the company's
inability to pass on cost increases in raw materials (styrene,
acrylonitrile and butadiene) to customers and the falling rupee.
The company incurred forex losses of INR130.5m in FY12 on the
import of styrene, which accounts for 45% of its raw material
costs.

The rating action also reflects BEPL's tight liquidity position
as illustrated by the near-full utilisation of its working
capital limits in FY12. Also, revenue declined by 10.7% yoy to
INR4,144m in FY12 due to a decline in the volume of its end-
products given the slowdown in the consumer durable goods and
automobile industries. Fitch also notes that BEPL has deferred
its INR2500m capex plans for setting up a capacity of 48,000
tonnes per annum (TPA) till FY13, due to muted demand for its
end-products.

The Negative Outlook reflects Fitch's view that BEPL's liquidity
position will remain stretched in FY13 due to its vulnerability
towards forex fluctuations and an absence of hedging mechanisms.

The ratings are, however, supported by the 26 years of track
record of BEPL's founders in the manufacture of acrylonitrile
butadiene styrene (ABS), the duopolistic industry structure with
BEPL and Ineos ABS as the predominant players and the company's
vertical integration.

The Outlook will be revised to Stable if there is significant
revenue growth along with stable profitability resulting in an
improvement in interest coverage above 1.5x on a sustained basis.
Conversely, interest coverage below 1.5x on a sustained basis
will lead to further negative rating action.

Incorporated in 1986, BEPL was the first Indian company to
manufacture high-quality ABS in a technical collaboration with
Sumitomo Nagautuck Limited, Japan. In FY12, BEPL reported EBITDA
of INR162m (FY11: INR561m) and a net profit of INR1.09m
(INR33.41m).

Fitch has also downgraded BEPL's bank loan ratings, as follows

- INR600m cash credit limit: downgraded to National Long-Term
   'Fitch BB(ind)' from 'Fitch BBB-(ind)'

- INR1,200m non-fund limits: downgraded to National Short-Term
   'Fitch A4+(ind)' from 'Fitch A3(ind)'


BRAHMANI RIVER: Fitch Affirms National LT Rating at 'BB+(ind)'
--------------------------------------------------------------
Fitch Ratings has affirmed India-based Brahmani River Pellets
Limited's National Long-Term rating at 'Fitch BB+(ind)'. The
Outlook is Negative. Fitch has also affirmed BRPL's INR9bn long-
term loans (reduced from INR9.75bn) at 'Fitch BB+(ind)'.

The affirmation reflects BRPL's timely debt servicing in FY12
(year end March) despite delays in the commencement of commercial
operations at its pellet plant. The timely debt repayments were a
result of higher-than-expected financial support from BRPL's
sponsor - Stemcor Holdings Ltd. Also, BRPL, in April 2012,
successfully refinanced its term loans from a consortium of
financial institutions led by IL&FS with a moratorium period of
24 months, resulting in additional liquidity cushion. Fitch
believes that the company will continue to be supported by
Stemcor driven by the latter's guarantee to BRPL's new lenders to
fund any shortfall in debt repayments or additional investments.

The Negative Outlook reflects continued delays in the
commencement of full-fledged commercial production at BRPL's
pellet plant. The company commenced production of pellets using
purchased raw materials (iron ore concentrates) during FY12, in
absence of a functioning slurry pipeline. However, the non-
availability of adequate concentrates in the market resulted in a
temporary halt in production.

Fitch notes that BRPL has entered into firm sourcing arrangements
for over 50% of its iron ore fines (raw material) requirements
and memorandum of understandings for the balance. Also, it has
agreements with its end-customers for the sale of a significant
portion of its pellet capacity. Fitch also notes that BRPL's
slurry pipeline is largely complete and requires only minimal
additional investment for commissioning. A small portion of the
pipeline is in final stages of approval, which is expected to be
received by July 2012. The plant, which is likely to be
operational from Q3FY13, would materially reduce raw material
costs.

The Outlook would be revised to Stable on the commissioning of
the slurry pipeline and commencement of production at the pellet
plant. However, any delays in the commissioning of the pipeline
could result in a rating downgrade.

BRPL was established in 2008 for setting up a 4 MTPA pellet plant
at Orissa that includes a 4 MTPA beneficiation plant and a 230 km
slurry pipeline from Tonto to Kalinganagar. The estimated cost of
the overall project is INR14.6bn, funded with 33.3% equity and
66.7% debt.


CG ISPAT: Fitch Migrates Bank Loan Ratings as Non-Monitored
-----------------------------------------------------------
Fitch Ratings has migrated India-based CG Ispat Private Limited's
National Long-Term rating of 'Fitch BB+(ind)' with Stable Outlook
to the non-monitored category. The rating will now appear as
'Fitch BB+(ind)nm' on the agency's Web site.

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 CG Ispat. 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 classified CG Ispat's following bank loan ratings
as non-monitored:

- INR272.2m long-term debt : migrated to National Long-Term
   'Fitch BB+(ind)nm' from 'Fitch BB+(ind)'

- INR220m fund-based working capital limits: migrated to
   National Long-Term 'Fitch BB+(ind)nm' from 'Fitch BB+(ind)'

- INR100m non-fund based working capital limits*: migrated to
   National Short-Term 'Fitch A4+(ind)nm' from 'Fitch A4+(ind)'

* To be carved out of the fund-based working capital limits


EURO INDIA: CRISIL Assigns 'CRISIL B-' Rating to INR200MM Loans
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the bank
facilities of Euro India Fresh Foods Pvt Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan               83         CRISIL B-/Stable (Assigned)
   Cash Credit             60         CRISIL B-/Stable (Assigned)
   Proposed Long-Term      57         CRISIL B-/Stable (Assigned)
   Bank Loan Facility

The rating reflects Euro's below-average financial risk profile,
marked by weak liquidity and debt protection metrics. These
rating weaknesses are partially offset by the extensive
experience of Euro's diversified product portfolio.

Outlook: Stable

CRISIL believes that Euro will maintain its business risk profile
over the medium term, backed by its diversified product
portfolio. The outlook may be revised to 'Positive' if the
company completes its ongoing project without further time or
cost overruns and achieves more-than-expected sales growth and
profitability, leading to improved liquidity. Conversely, the
outlook may be revised to 'Negative' in case of a further delay
in commencement of commercial production, leading to pressure on
its debt servicing ability.

                         About Euro India

Euro was incorporated in 2008-09 (refers to financial year, April
1 to March 31). It is in the process of setting up manufacturing
unit at Surat (Gujarat) for production of potatoes chips, fried
extruded snacks, namkeen, mineral water and core filling snack.
The company proposes to install an annual production capacity of
1872 tonnes per annum (tpa) of potato chips, 1136 tpa of extruded
snacks, 1248 tpa of namkeen, 3.12 million litre of water per
annum and 1248 tpa of core filling snack, which is expected to
commence commercial operations in September 2012. The project has
been delayed by six months. The company plans to launch its
products under its own brand name: Euro Spa for mineral water and
Euro for other products.


HARSHNI TEXTILES: CRISIL Cuts Rating on INR843.30MM Loans to 'B+'
-----------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Harshni Textiles Ltd to 'CRISIL B+/Stable/CRISIL A4' from 'CRISIL
BB-/Stable/CRISIL A4+'.

                         Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Long-Term Loan         323.30     CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Cash Credit            520.00     CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Bank Guarantee          20.00     CRISIL A4 (Downgraded from
                                     'CRISIL A4+')

   Foreign Bill Purchase  105.00     CRISIL A4 (Downgraded from
                                     'CRISIL A4+')

   Letter of Credit         60.00     CRISIL A4 (Downgraded from
                                      'CRISIL A4+')

The downgrade reflects the significant deterioration in HTL's
liquidity and financial risk profile on the back of sharp decline
in profitability; this has been caused due to lower cotton yarn
realizations during 2011-12 vis-…-vis high cost of inventory
carried forward from the previous year. CRISIL believes that
HTL's financial risk profile will remain constrained over the
medium term driven by high gearing and below-average debt
protection measures.

The company reported, on a provisional basis, a negative
operating margin of 6.5 per cent on operating revenues of INR 800
million for 2011-12.

The ratings reflect HTL's below-average financial risk, marked by
a weak capital structure and debt protection metrics,
susceptibility to volatility in raw material prices. These rating
weaknesses are partially offset by the benefits that the company
derives from its sound operating capabilities and the promoters
extensive experience in the cotton spinning business.

Outlook: Stable

CRISIL believes that HTL will maintain its business risk profile
over the medium term, supported by its moderate scale of
operations and sound operating capabilities. The outlook may be
revised to 'Positive' HTL improves its profitability and
increases its cash accruals on a sustained basis, thereby
improving its financial risk profile. Conversely, the outlook may
be revised to 'Negative' if the company undertakes a larger-than-
expected, debt-funded capital expenditure (capex) programme or
reports decline in margins, thereby further adversely affecting
its capital structure or debt protection metrics.

                       About Harshni Textiles

Incorporated in 2002-03, HTL manufactures cotton yarn and has
capacity of around 51,831 spindles. HTL is part of the Lakshmi
Machine Works (LMW) group, based in Coimbatore (Tamil Nadu).
Lakshmi Electrical Drives Ltd (rated 'CRISIL A/Stable/CRISIL A1'
by CRISIL) holds a stake of 60 per cent in HTL, while Lakshmi
Electrical Control Systems Ltd (CRISIL A+/Stable/CRISIL A1) holds
the remaining share. HTL is managed by Mr. Senthil Kumar, son-in-
law of the former chairman of Lakshmi Machine Works Ltd, the late
Dr. D Jayavardhanavelu.


KINGFISHER AIRLINES: ICICI Sells INR430cr Kingfisher Loan
---------------------------------------------------------
The Hindu reports that ICICI Bank, on Monday, sold its entire
debt of INR430 crore in the crisis-ridden Kingfisher Airline to
Srei Venture Capital Ltd., a group company of Srei Infrastructure
Finance Ltd.

"We (ICICI Bank) don't have any debt exposure to the airline
now," the report quotes a bank's spokesperson as saying.

The Hindu notes that Kingfisher Airlines, owned by liquor baron
Vijay Mallya, was launched in 2005 and has not reported profits
since.  The airline has a total outstanding debt of around
INR7,500 crore, the report discloses.  According to the report,
banks which had given loans to Kingfisher Airlines include State
Bank of India (INR1,400 crore), PNB (around INR700 crore), Bank
of Baroda (around INR500 crore) and ICICI Bank (around INR450
crore).

"The debt fund of Srei Venture Capital must have got these bonds
or debt at a very healthy yield considering the risk of default
involved," The Hindu quotes Jagannadham Thunuguntla, Head of
Research, SMC Global Securities, as saying.  This is a typical
"junk bond investing strategy" widely used globally.  However, he
said, "If foreign direct investment is permitted into aviation,
and Kingfisher can get an equity partner or equity infusion from
the UB group, then risk of default is quite less," the report
relays.

                      About Kingfisher Airlines

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

                        *     *     *

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

Kingfisher lost INR4.44 billion (US$90.1 million) in the fiscal
third quarter that ended in December 2011, 74.8% more than a loss
of INR2.54 billion a year earlier, The Economic Times disclosed.
The company has lost INR11.8 billion (US$240 million) in the
first nine months of the current fiscal year that ends in
March, a 35% rise from a year earlier.


KINGFISHER AIRLINES: Pilots' Strike to Continue as Talks Fail
-------------------------------------------------------------
The Economic Times reports that over 200 pilots of Kingfisher
Airlines Ltd. decided Monday to prolong their two-day-old strike
after talks with the management to resolve the impasse over non-
payment of salaries failed to make any headway.

At least four flights including from Mumbai to Chennai and
Mangalore were cancelled, causing inconvenience to passengers.
The strike has forced the airline to drop its ATR-operations
involving short-haul flights on small aircraft, according to the
report.

"We had an hour-long meeting with the management over the non-
payment of salaries, which have not been paid since February. But
the management did not offer any commitment as to when they
intend to pay us. So, we have decided to continue with our
agitation," Captain Yatin Pandit and representatives of other
employees told reporters after their meeting at the airline's
office, The Economic Times relays.

Another round of talks is expected on Thursday, airlines sources
told ET.

                     About Kingfisher Airlines

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

                        *     *     *

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

Kingfisher lost INR4.44 billion (US$90.1 million) in the fiscal
third quarter that ended in December 2011, 74.8% more than a loss
of INR2.54 billion a year earlier, The Economic Times disclosed.
The company has lost INR11.8 billion (US$240 million) in the
first nine months of the current fiscal year that ends in
March, a 35% rise from a year earlier.


MEENAKSHI ENERGY: Fitch Cuts Rating on Sr. Bank Loans to 'D(ind)'
-----------------------------------------------------------------
Fitch Ratings has downgraded India-based Meenakshi Energy Private
Ltd's Phase I INR10,600 million and Phase II INR23,400 million
senior bank loans to 'Fitch D(ind)' from 'Fitch BB(ind)'/Outlook
Negative.

The downgrade reflects delays in the payment of interest on the
term debt caused in particular by delays to the commencement of
commercial operations for phase I of its new coal-based thermal
power plant. Unless sponsor equity is injected, the company is
unlikely to meet the first principal repayment on its Phase I
loan, falling due on June 30, 2012, on time.

Furthermore, according to the lender's engineer's report, Phase
II of the coal-based thermal power plant is expected to be
delayed by 15 months from the scheduled completion date of
August 31, 2012. The likely cost overruns on both phases,
especially interest payment during construction, will add further
stress to the project.

Fitch notes that the first unit of Phase I is currently in the
advanced stage of testing and commissioning. Positive rating
action may result from cash injection by sponsors for timely debt
servicing, stabilization of the plant's performance after
commercial operations and evidence of the project's cash
generation at forecasted levels, so as to enable timely debt
service on a sustained basis.

MEPL, promoted by the Meenakshi group of companies, is
implementing coal-based thermal power plants in two phases of
300MW (two units of 150MW each) and 600MW (two units of 300MW
each) in the coastal area of Thaminappatnam in the state of
Andhra Pradesh at a cost of INR14,280 million and INR31,200
million, respectively.


MY LEISURE: CRISIL Rates INR55 Million Cash Credit 'CRISIL B+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash
credit bank facility of My Leisure Breaks Pvt Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              55        CRISIL B+/Stable (Assigned)

The rating reflects My Leisure Breaks Pvt Ltd's highly leveraged
capital structure and exposure to risk related to customer
concentration and intense competition in the travel agent
business. These rating weaknesses are partially offset by MLB's
long-standing presence in the tours and travel industry.

Outlook: Stable

CRISIL believes that MLB will benefit over the medium term from
its long-standing presence in the tours and travel industry. The
outlook may be revised to 'Positive' in case of substantial
improvement in the company's capital structure and scale of
operations. Conversely, the outlook may be revised to 'Negative'
in case of more-than-expected increase in working capital cycle
or if MLB declares more than expected dividend, thereby putting
further pressure on its financial risk profile.

                        About My Leisure

MLB was incorporated by Mr. Naveen Kundu in 1997. The company
offers corporate travel management (CTM) services. CTM involves
managing the travel requirements of corporate clients within the
corporate travel philosophy and helping them manage travel cost
within their budget. It operates through six branch offices in
Gurgaon (Haryana), Delhi, Mumbai (Maharashtra), Lucknow (Uttar
Pradesh), Bengaluru (Karnataka) and Chandigarh.

MLB is estimated to report a profit after tax (PAT) of
INR18.1 million on net sales of INR1203.9 million for 2011-12
(refers to financial year, April 1 to March 31), as against a PAT
of INR14.1 million on net sales of INR709.7 million for 2010-11.


PANCHAM JEWELLERS: CRISIL Rates INR60MM Cash Credit 'CRISIL B+'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash
credit facility of Pancham Jewellers Private Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit             60.0       CRISIL B+/Stable (Assigned)

The rating reflects PJPL's weak financial risk profile because of
its working-capital-intensive operations, vulnerability of its
operating margins to volatility in gold and diamond prices, and
its limited scale of operations, geographic concentration and
exposure to intense market competition in the diamond-studded and
gold jewellery industry. These rating weaknesses are partially
offset by PJPL's significant revenue growth and established
regional position and extensive experience of its promoters in
the diamond-studded and gold jewellery business.

Outlook: Stable

CRISIL believes that PJPL will continue to benefit from its
promoters' extensive business experience. The outlook may be
revised to 'Positive' if PJPL's financial risk profile improves,
driven most likely by larger-than-expected cash accruals and
improved working capital management. Conversely, the outlook may
be revised to 'Negative' if the company's debt protection metrics
deteriorate, caused most likely by lower-than-expected growth in
revenues and margins, larger-than-expected, debt-funded capital
expenditure, or a significant stretch in working capital cycle.

                        About Pancham Jewellers

PJPL is in the business of wholesale and manufacture of gold,
precious-stone and diamond-studded jewellery. The company was
established in 2005 and is promoted by Mr. R K Aggarwal and his
family. PJPL has its showroom in Chandigarh, Punjab. The
wholesale business contributes around 98 per cent of its
revenues.

For 2011-12 (refers to financial year, April 1 to March 31),
PJPL's profit after tax (PAT) and net sales are estimated at INR6
million and INR260 million respectively; the company reported a
PAT of INR4 million on net sales of INR192 million for 2010-11.


PRERNA COTPRESS: CRISIL Rates INR80MM Loans 'CRISIL B-'
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B-/Stable' rating to the long-
term bank facilities of Prerna Cotpress Pvt Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan               1.5        CRISIL B-/Stable (Assigned)
   Cash Credit            57.5        CRISIL B-/Stable (Assigned)
   Proposed Long-Term     21          CRISIL B-/Stable (Assigned)
   Bank Loan Facility

The rating reflects PCPL's weak financial risk profile, marked by
high gearing, weak debt protection metrics, and small net worth.
The rating also factor in the vulnerability of the company's
business risk profile and profitability to changes in government
policy and the small scale, and short track record of, the
company's operations. These rating weaknesses are partially
offset by the benefit that PCPL derives from its proximity to
cotton growing region.

Outlook: Stable

CRISIL believes that PCPL will benefit over the medium term from
the successful stabilization of its operations. The outlook may
be revised to 'Positive' if the company registers higher-than-
expected accruals or if its promoter infuses equity into the
company, leading to improvement in its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if PCPL's
financial risk profile weakens further owing to larger-than-
expected working capital requirements or any significantly debt-
funded capital expenditure.

                        About Prerna Cotpress

Incorporated in 2006 by Mr. Rasik Patel, PCPL is engaged in
cotton ginning and pressing in Himmatnagar (Gujarat). The
company's plant has an installed capacity to process 160 bales of
cotton per day.

For 2010-11 (refers to financial year, April 1 to March 31), PCPL
reported a profit after tax of INR3.9 million on net sales of
INR186.5 million, against a net loss of INR0.51 million on net
sales of INR146.8 million for 2009-10.


RADHESHYAM INDUSTRIES: CRISIL Rates INR80MM Loan at 'CRISIL B+'
---------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the cash
credit bank facilities of Radheshyam Industries.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit            80.0        CRISIL B+/Stable (Assigned)

The rating reflects RI's weak financial risk profile marked by
high gearing and weak debt protection metrics and small scale of
operations in a highly fragmented industry. The rating also
factors in the vulnerability of the firm's business risk profile
and profitability to changes in government policy. These rating
weaknesses are partially offset by the extensive industry
experience of RI's partners and its established customer
relationships.

Outlook: Stable

CRISIL believes that RI will continue to benefit over the medium
term from its partners' extensive industry experience. The
outlook may be revised to 'Positive' if the firm's scale of
operations improves significantly, along with a sustained
improvement in its profitability, or if its capital structure
improves either by equity infusion by the partners or higher-
than-expected cash accruals. Conversely, the outlook may be
revised to 'Negative' if the firm's financial risk profile
weakens further due to increased working capital borrowings or in
case of change in government policy having a negative impact on
its operations.

                    About Radheshyam Industries

Radheshyam Industries was set up in 2008 as a partnership firm by
Mr. Barkatali Bhimjibhai, Mr. Amarshibhai Aambabhai, Mr.
Samsudinbhai Sadrudinbhai, Mr. Akbarali Bhimjibhai, Mr.
Yogeshbhai Dirubhai, Mr. Nagjibhai Aambabhai, Mr. Firojali
Pyarlibhai, and Mr. Alkeshbhai Sirajbhai. The firm has a cotton
ginning and pressing unit in Amreli (Gujarat) with a capacity of
300 bales per day.

For 2010-11 (refers to financial year, April 1 to March 31), RI
reported a net profit of INR1.8 million on net sales of INR987
million, against a net profit of INR1.2 million on net sales of
INR529 million for 2009-10. For 2011-12, the firm's net sales are
estimated at INR935 million.


RAJADHEEPAM SPINNING: CRISIL Rates INR117.9MM Loans 'B+'
--------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the long-
term bank facilities of Rajadheepam Spinning Mills Pvt Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              60        CRISIL B+/Stable (Assigned)
   Long-Term Loan           57.9      CRISIL B+/Stable (Assigned)

The rating reflects RSMPL's small scale of operations in a highly
fragmented spinning industry, its limited track record in
manufacturing viscose filament yarn, and the susceptibility of
its operating margin to volatility in raw material prices. These
rating weaknesses are partially offset by RSMPL's moderate
financial risk profile, marked by moderate gearing and healthy
debt protection metrics, and the extensive experience of its
promoters in the textile industry.

Outlook: Stable

CRISIL believes that RSMPL will benefit over the medium term from
its promoters' extensive industry experience and healthy
profitability margins. The outlook may be revised to 'Positive'
if the company significantly scales up its operations while
maintaining its profitability, resulting in improvement in cash
accruals. Conversely, the outlook may be revised to 'Negative' if
RSMPL's capacity utilisation and operating margin decline
substantially or if the company undertakes a large, debt-funded
capital expenditure programme that weakens its financial risk
profile.

                     About Rajadheepam Spinning

Incorporated in 2009 and based in Pallipalayam, Erode, RSMPL is
engaged in the manufacture of viscose filament yarn. The company
is owned and managed by Mr. Saravana Kumar, who bought the
company from Mr. Nachi Muthu for INR28.5 million in 2009. Until
mid-2011, the company manufactured cotton yarn. However, on
account of increasing demand for viscose filament yarn and
healthy profitability margins, the company decided to change its
product profile. The company currently has 12,000 spindles.

RSMPL is estimated to have earned a profit after tax (PAT) of
INR2.96 million on net sales of INR168.1 million in 2011-12
(refers to financial year, April 1 to March 31), as against a PAT
of INR3.89 million on net sales of INR125 million in 2010-11.


SHREE GANESH: CRISIL Rates INR85MM Cash Credit at 'CRISIL B'
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the cash
credit bank facility of Shree Ganesh Rice Mill.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              85        CRISIL B/Stable (Assigned)

The rating reflects SGRM's weak financial risk profile, marked by
small net worth, high gearing and weak debt protection metrics,
and large working capital requirements. The rating also reflects
SGRM's small scale of operations, and susceptibility to
volatility in raw material prices and to erratic rainfall. These
rating weaknesses are partially offset by the extensive
experience of SGRM's promoters in, and healthy growth prospects
for, the rice processing industry.

CRISIL has treated unsecured loans of INR25.8 million extended to
SGRM by its promoters and their friends as neither debt nor
equity because these loans have nominal interest rates on them
and are subordinated to bank borrowings.

Outlook: Stable

CRISIL believes that SGRM will continue to benefit over the
medium term from its promoters' extensive experience in the rice
processing industry. The outlook may be revised to 'Positive' if
SGRM scales up its operations and improves its profitability,
leading to larger-than-expected cash accruals, or its capital
structure improves significantly because of more-than-expected
equity infusion by the promoters. Conversely, the outlook may be
revised to 'Negative' if there is significant weakening in the
firm's financial risk profile, especially liquidity, caused most
likely by larger-than-expected, debt-funded capital expenditure,
or pressure on its profitability.

                        About Shree Ganesh

SGRM was established in 1994 as a partnership firm by the Sidana
brothers. The firm is engaged in milling and processing rice.
SGRM has a rice processing unit, with milling capacity of 2
tonnes per hour (tph), at Hamidpur, near Delhi. SGRM mainly
undertakes processing of Pusa 1121 variety of basmati rice. The
firm does not direct exports, but it sells the majority of its
produce to wholesalers and merchant exporters in India. SGRM's
day-to-day operations are managed by Mr. Rakesh Kumar Sidana, who
is one of the partners at the firm.

SGRM reported, on provisional basis, a profit before tax (PBT) of
INR1.9 million on net sales of INR284 million for 2011-12; the
firm reported a PBT of INR1.2 million on net sales of INR245.0
million for 2010-11.


SHREYANS WIRES: CRISIL Places 'B' Rating on INR117.5MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to
the bank facilities of Shreyans Wires Limited.

                         Amount
   Facilities             (INR Mln)   Ratings
   ----------            ---------    -------
   Term Loan                15.0      CRISIL B/Stable (Assigned)

   Proposed Long-Term       12.5      CRISIL B/Stable (Assigned)
   Bank Loan Facility

   Bank Guarantee            2.5      CRISIL A4 (Assigned)

  Cash Credit               90.0      CRISIL B/Stable (Assigned)

The ratings reflect SWL's weak financial risk profile marked by
modest networth and high gearing. The ratings are also
constrained by slender profitability margins which are
susceptibility to volatility in input prices. These rating
weaknesses are partially offset by extensive experience of
promoters in the winding wires industry and established
relationships with customers and suppliers.

Outlook: Stable

CRISIL believes that SWL will maintain its stable business risk
profile over the medium term, backed by extensive experience of
its promoters and established relationships with clients. The
outlook may be revised to 'Positive' if SWL's financial risk
profile improves significantly driven by higher-than-expected
revenues and profitability, while improving its capital structure
and debt protection metrics. Conversely, the outlook may be
revised to 'Negative' if the company undertakes significant debt-
funded capital expenditure or if cash accruals decrease
significantly resulting in deterioration in SWL's financial risk
profile.

                        About Shreyans Wires

Incorporated in 1982, Shreyans Wires Limited is engaged in
manufacturing of bare and enamelled wires made from copper and
aluminium. These wires find applications in diverse industries
such as electrical and magnetic systems, automobiles, motor
pumps, power and steel etc. The company procures its raw material
from both India and abroad; its sales are entirely in the
domestic markets. SWL has two manufacturing plants at Nagpur
(Maharashtra) with a total installed capacity of 1200 metric
tonne (MT) per annum. The company's business operations are
managed by Mr. Shreyans Jejani and its office is located at
Bagadganj, Nagpur.

SWL reported a profit after tax (PAT) of INR0.28 million on net
sales of INR270.4 million for 2010-11 (refers to financial year,
April 1 to March 31), as against a PAT of INR2.21 million on net
sales of INR201.9 billion for 2009-10.


SRINIVASA GAYITHRI: CRISIL Cuts Rating on INR527.5MM Loan to 'C'
----------------------------------------------------------------
CRISIL's has downgraded its rating on the bank facilities of
Srinivasa Gayithri Resource Recovery Ltd to 'CRISIL C' from
'CRISIL B+/Stable.'

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Long-Term Loan         527.5       CRISIL C (Downgraded from
                                      'CRISIL B+/Stable')

The downgrade reflects inordinate delays faced by SGRRL in
commissioning its 8 megawatt-(MW) municipal solid waste (MSW)
power project coupled with substantial cost overruns. The total
cost of the project has increased to INR930 million from INR730
million because of modifications in project design. Moreover, the
term loans of the company have been rescheduled twice by its
bankers and the account has been classified as a non-performing
asset by the consortium of bankers. The cost overrun is expected
to be partly funded by fresh sanction of term loan of INR85
million, but the funding for the rest of the cost overrun is yet
to be arranged. The company is likely to infuse equity of about
INR35 million and the rest of the cost overrun - about INR80
million - is expected to be funded by interest during
construction period by the bankers. As per the revised terms of
sanction from the banks, the commercial operation date (COD) of
the project has been revised for the second time to September 30,
2012 from December 31, 2010 (the original date was March 01,
2010). In case the project is not funded in a timely manner, the
power plant is not likely to be commissioned even on the revised
COD. Given the uncertainty regarding the commissioning date of
the project, CRISIL believes that SGRRL's debt servicing ability
will be severely impacted; the interest and principal obligations
fall due in October 2012 and January 2013 respectively.

                       About Srinivasa Gayithri

SGRRL, a public-private partnership project of Bruhat Bengaluru
Mahanagara Palike (BBMP) and Mr. Ramesh Bingi and other
promoters, was incorporated in 2003. The company is setting up an
MSW processing facility and an 8-MW MSW-based power plant in
Mandur, near Bengaluru, Karnataka. The total cost of the project
is estimated at about INR930 million and is being funded by term
loans of about INR620 million.


SURINDER SAT: CRISIL Rates INR60MM Cash Credit at 'CRISIL B'
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the cash
credit facility of Surinder Sat Agro Foods.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit             60         CRISIL B/Stable (Assigned)

The rating reflects SAF's working-capital-intensive operations,
weak financial risk profile marked by a high gearing and weak
debt protection metrics, high dependence on the monsoon, and
exposure to adverse changes in government policies. These rating
weaknesses are partially offset by the benefits that SAF derives
from its promoter's long-standing presence, and its healthy
growth prospects in the basmati rice industry.

Outlook: Stable

CRISIL believes that SAF will continue to benefit over the medium
term from its promoters' extensive industry experience. CRISIL,
however, believes that the firm's financial risk profile will
remain weak during this period, because of weak capital structure
and low operating profitability. The outlook may be revised to
'Positive' if the firm reports improvement in its financial risk
profile, most likely driven by improvement in its operating
margin and infusion of funds by the promoter. Conversely, the
outlook may be revised to 'Negative' in case SAF reports larger-
than-expected working capital requirements or lower-than-expected
profitability, leading to further weakening in its financial risk
profile.

                         About Surinder Sat

SAF was set up in 2001 as a partnership firm; it manufactures and
trades in rice products. The firm was acquired in 2009 by the
present management comprising Mr. Mohan Lal, Mr. Sher Singh, and
Mr. Sanjeev Kumar. Its manufacturing unit is in Jalalabad
(Punjab). The unit has production capacity of 4 metric tonnes per
hour. The firm is utilising about 100 per cent of its capacity.
SAF has a customer base of about 120 wholesalers based in New
Delhi and Punjab. About 85 per cent of the total revenues are
generated from sale of basmati rice and the rest from non-basmati
rice (bran, phak, and bardana).

SAF reported a book profit of INR0.8 million on net sales of
INR406 million for 2010-11 (refers to financial year, April 1 to
March 31), against a book profit of INR0.4 million on net sales
of INR234 million for 2009-10. SAF's net sales are estimated at
INR500 million for 2011-12.


TARA INFRATECH: Delay in Loan Payment Cues CRISIL Junk Ratings
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the term loan bank
facility of Tara Infratech Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan               120        CRISIL D (Assigned)

The rating reflects instances of delay by TIL in servicing its
debt; the delays have been caused by TIL's weak liquidity.

TIL's ongoing residential project is exposed to demand, funding,
and implementation risks, as it is still at a nascent stage. The
company is also exposed to cyclicality inherent in the Indian
real estate industry. TIL, however, benefits from the strong
support it receives from its group company Tara Health Foods Ltd

                       About Tara Infratech

TIL is engaged in real estate construction in Abohor (Punjab),
where it is currently developing plots and villas. The saleable
area of the project will be 1.27 million square feet (sq ft). The
project will include 450 plots and 110 villas, the bookings of
which started in October 2011. The project shall also offer
commercial space in the form of a small plot of 40,000 sq ft. The
project is expected to be completed in 2014-15 (refers to
financial year, April 1 to March 31).


TARA SALES: CRISIL Rates INR180MM Term Loan at 'CRISIL B+'
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable' rating to the term
loan bank facilities of Tara Sales Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan               180        CRISIL B+/Stable (Assigned)

The rating reflects TSL's limited track record of operations in
the highly fragmented and competitive cattle feed business and
weak financial risk profile, marked by a small net worth and high
gearing. These rating weaknesses are partially offset by the
extensive experience of TSL's promoters in the cattle feed
industry.

Outlook: Stable

CRISIL believes that TSL's business risk profile will benefit
from promoter's long standing experience in cattle feed industry.
The outlook may be revised to 'Positive' if TSL's scale of
operations and profitability increase significantly, along with
improvement in its financial risk profile. Conversely, the
outlook may be revised to 'Negative' if the company's financial
risk profile deteriorates due to increase in working capital or
pressure on profitability.

                        About Tara Sales

Incorporated in 2010, TSL trades rice bran, mustard de-oiled
cake, maize, and bajra. The company mainly caters to cattle feed
manufacturers in the Punjab region. TSL began its operations in
July 2011 and is expected to book revenues of INR600 million till
March 2012.

TSL belongs to the Tara group of companies based in Ludhiana
(Punjab) and is promoted by Mr. Jaswant Singh and Mr. Balwant
Singh. The group's flagship company, Tara Health Foods Ltd,
manufactures cattle feed and booked revenues of INR4000 million
in 2010-11 (refers to financial year, April 1 to March 31).


TAYAL ENERGY: Fitch Assigns 'Fitch D(ind)' National LT Rating
-------------------------------------------------------------
Fitch Ratings has assigned India's Tayal Energy Ltd (TEL) a
National Long-Term rating of 'Fitch D(ind)'.

The ratings reflect TEL's corporate debt restructuring programme
due to liquidity pressures. The latter is indicated by cash
credit limit overutilisation averaging 105% and continuous delays
in term loan repayments, both since December 2011. The tight
liquidity is a result of a long working capital cycle (financial
year ended March 2012: 144 days) and inadequate working capital
facilities to support an increase in its size of operations;
revenue grew at a CAGR of 58% over FY09 to INR4,930m in FY12.

TEL is facing difficulties in recovering its trade receivables
especially for sales made in H1FY12 as the prevailing market
prices for yarn are much lower than the prices at which these
sales were booked. To tackle this issue, the company provided
discounts of around INR95.4m on sales in FY12, and is again
expected to provide a substantial discount in FY13.

Fitch expects TEL's liquidity to deteriorate further if interest
costs remain high and operating margins continue to decline due
to higher input costs. The company has not been able to pass on
costs increases in cotton, wages and power to its customers due
to intense competition and the current slowdown in the textile
industry. This resulted in a 480bp decline in its EBITDA margin
to 9.5% in FY12.

Positive rating guidelines would be regularity in debt service
for at least six months post implementation of its debt
restructuring.

TEL, incorporated in September 2005, manufactures cotton yarn at
a total capacity of 126,000 spindles and 8,020 rotors. Its
manufacturing plants are located at Kotkapura and Govindwal in
Punjab. In FY12 (year end March), EBITDA was INR470m, EBITDA
interest coverage was 1.69x and net debt/EBITDA was 9.71x.

Fitch has also assigned ratings to TEL's bank instruments as
follows:

- INR1,283.2 mil. term loan: National Long-Term 'Fitch D(ind)'
- INR965m fund-based limits: National Long-Term 'Fitch D(ind)'
- INR180m non-fund-based limits: National Short-Term 'Fitch
   D(ind)'


VENKATESH FOUNDATION: CRISIL Puts 'D' Rating on INR150MM Loans
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL D' rating to the long-term bank
facilities of Venkatesh Foundation Pvt Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Term Loan             130.00       CRISIL D
   Term Loan              20.00       CRISIL D

The rating reflects instances of delay by VFPL in servicing its
debt; the delays have been caused by the company's weak
liquidity. The liquidity is weak because of delay in commencement
of the company's commercial mall.

VFPL is also exposed to implementation-related risks associated
with its ongoing project. The company's cash flows are also
susceptible to economic downturns. However, VFPL benefits from
the extensive experience of its promoters in the construction
industry and from the favorable location of its ongoing project.

                     About Venkatesh Foundation

VFPL's name was changed to the current one from Arun Plastic Pvt
Ltd (APPL) in 2004-05 (refers to financial year, April 1 to March
31). The company is constructing a commercial mall in Kolkata
(West Bengal [WB]). The eight-storey mall, known as Lake Mall in
Lake Market, Kolkata, with a total area of 225,000 square feet,
is expected to be inaugurated in the next three months.

Members of the Sadani family of Kolkata established APPL in
February 1985 and participated in a tender to acquire land on
lease from Kolkata Municipal Corporation. APPL also had a plant
in Orissa for manufacturing high density polyethylene bags for
cement units in Orissa. However, the company closed down and sold
its Orissa plant in 1995.

In 2004-05, members of the Srikant Mohta family and Mr. Piyush
Bhagat (promoter of Space Group and one of the leading
residential and commercial developers in WB, Chennai [Tamil
Nadu], and Orissa) also joined in as promoters of the company,
with its name being changed to the current one. The Sadani and
Mohta families have been in textile and film production
businesses for more than a decade.


* INDIA: Current-Account Deficit Widens to 4.2% of GDP
------------------------------------------------------
Sudeep Jain at The Wall Street Journal reports that India's
current-account deficit widened to a record in the January to
March period, as exports slowed and imports climbed, central-bank
data showed Friday, increasing the pressure on the country's
tenuous external position.

Analysts, however, expect the combination of a weak Indian rupee
and lower commodity prices to shrink the current-account gap in
coming quarters, the Journal says.

The Journal notes that the widest ever current-account deficit
kept India's balance of payments in negative territory for a
second consecutive quarter, forcing the Reserve Bank of India to
dip into its foreign exchange reserves.

According to the Journal, the data highlight the risks of relying
on volatile portfolio capital inflows to fund the current-account
deficit, which Asia's third-largest economy after China and Japan
runs because of a perennial trade gap.

The current-account deficit in the three months through March was
$21.7 billion, or 4.5% of gross domestic product, compared with
$6.3 billion a year earlier, or 1.3% of GDP.  It was also more
than the October-December period's $19.6 billion - the previous
record, the Journal discloses.

According to the Journal, Friday's data showed that India's
current-account deficit ballooned to 4.2% of GDP for the last
fiscal year, after staying below 3% since 1991.

The Journal adds that the RBI said India's January-March trade
deficit widened to $51.6 billion from $30 billion a year earlier.
Growth in merchandise exports slumped to 3.4% from 46.9% a year
earlier. Imports swelled 22.6%, compared with 27.7%.



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


RENESAS ELECTRONICS: To Cut More Than 5,000 Jobs Through Buyouts
---------------------------------------------------------------
Naoko Fujimura at Bloomberg News reports that Renesas Electronics
Corp. said it will reduce more than 5,000 jobs, or 12% of its
workforce, through buyout of workers as it seeks to end losses by
restructuring.

The company had 42,800 workers as of the end of March, according
to data compiled by Bloomberg.

Bloomberg says the company has reported losses every year since
it was formed in 2010 through mergers of two unprofitable
companies.

For the fiscal year that ended March 31, 2012, the chip maker
reported a net loss of JPY62.60 billion and revenue of
JPY883.11 billion.  In the previous fiscal year when the company
was created, it reported a net loss of JPY115.02 billion, The
Wall Street Journal said.

Based in Tokyo, Japan, Renesas Electronics Corp. --
http://am.renesas.com/-- manufactures semiconductor systems for
mobile phones and automotive applications.


SANKO STEAMSHIP: Files for Bankruptcy Protection in Tokyo
---------------------------------------------------------
Jiji Press reports that Sanko Steamship Co. filed for bankruptcy
protection under the corporate rehabilitation law with the Tokyo
District Court on Monday.

Citing credit research firm Tokyo Shoko Research Ltd., Jiji Press
discloses that liabilities left by the Tokyo-based company total
about JPY155.8 billion.  This is the company's second application
for bankruptcy protection, following one in 1985, the report
notes.

According to the report, the company moved to seek court-led
business reconstruction because of a delay in working out a
recovery plan under an out-of-court rehabilitation process.

Jiji Press says the company sought the process known as an
alternative dispute resolution in March because of difficulty in
paying the leases for vessels.

                       Chapter 15 Bankruptcy

Bloomberg News reports that Sanko Steamship Co. asked a court to
protect its U.S. assets after the company filed for bankruptcy
protection in Japan.

Bloomberg discloses that Sanko listed assets and debt of more
than $500 million in a Chapter 15 petition filed in U.S.
Bankruptcy Court in Manhattan. Companies use Chapter 15 of the
U.S. Bankruptcy Code to protect their U.S. assets while they
reorganize operations under the jurisdiction of a foreign
bankruptcy court.

According to Bloomberg, Sanko said that the Tokyo District Court
granted the closely held company permission to keep operating.  A
trustee will be appointed to oversee a reorganization, Bloomberg
relates citing the Tokyo-based company's e-mail statement.

"The Japanese proceeding is intended to provide Sanko with the
protection needed to reorganize its financial affairs and
maximize recoveries for all stakeholders," the company said in
court papers, referring to the main bankruptcy case in Tokyo,
Bloomberg relays.

The ship operator failed to act quickly enough to cut expensive
charters as the economy faltered and shipping rates fell, Sanko,
as cited by Bloomberg, said.

Bloomberg adds that Sanko also asked the U.S. Bankruptcy Court to
recognize the case in Tokyo as the one to be used to help the
company reorganize.

                       About Sanko Steamship

Based in Tokyo, Japan, The Sanko Steamship Co., Ltd., provides
marine transportation services. It also engages in the brokerage
and agency for marine, land, and air transportation; sales and
purchase of vessels; sales of marine machineries; and consultancy
on marine technology.  As of April 1, 2012, Sanko Line's fleet
comprised 185 vessels.



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


PRIME GLOBAL: Reports $281,000 Net Income in April 30 Quarter
-------------------------------------------------------------
Prime Global Capital Group Incorporated filed its quarterly
report on Form 10-Q, reporting net income of $347,515 on $614,728
of revenues for the three months ended April 30, 2012, compared
with net income of $167,325 on $496,456 of revenues for the three
months ended April 30, 2011.

The Company reported net income of $281,319 on $863,124 of
revenues for the six months ended April 30, 2012, compared with
net income of $190,331 on $1.24 million of revenues for the six
months ended April 30, 2011.

The Company's balance sheet at April 30, 2012, showed
$17.19 million in total assets, $2.91 million in total
liabilities, and stockholders' equity of $14.28 million.

"The Company has committed and contracted for the acquisition of
Dunford Corporation Sdn. Bhd. and the purchase of land for
development, which are expected to be completed in the next
twelve months," the Company said in the filing.  "As of April 30,
2012, the Company has approximately $9.2 million available cash
balance, which may not be sufficient to meet its working capital
needs in light of the $19.9 million required to consummate its
land acquisitions in the coming months.  The Company plans to
obtain the additional capital from its shareholders or external
financing.  However, there can be no assurance that the Company
will be able to obtain sufficient funds to meet with its
obligations on a timely basis."

"These factors raise substantial doubt about the Company's
ability to continue as a going concern."

A copy of the Form 10-Q is available for free at:

                       http://is.gd/LHZv0O

Kuala Lumpur, Malaysia-based Prime Global Capital Group
Incorporated, through its subsidiary, Union Hub Technology Sdn.
Bhd., provides information technology consulting and programming
services in Malaysia.



===============
M O N G O L I A
===============


* Fitch Says Mongolia Election Won't Solve Credit Pressures
-----------------------------------------------------------
The Mongolian economy is overheating, fueled by a mining boom and
soaring government spending, but promises from the newly elected
coalition parties to distribute the spoils of mineral wealth
means fiscal buffers are unlikely to be significantly
strengthened after the election. This makes Mongolia vulnerable
to a re-run of its 2007-2009 economic crisis if prices for the
country's commodity exports fall sharply for a sustained period.

Mongolia has only saved 2% of GDP in its Stabilisation Fund,
which is too small to shelter it from shocks. This leaves the
country with little fiscal flexibility in the event of a
sustained drop in commodity prices. The accumulation of systemic
risks - extremely loose credit environment, inconsistencies
arising from implementation of tight monetary policy, and
expansionary fiscal policy and pro-cyclical public finances -
makes this increasingly hard to fix.

Government spending surged by 50.1% in May on a year-to-date
(ytd) basis, driven by pre-election cash handouts, outlays on
wages and salaries, and capital spending. Revenue growth has
failed to keep up, slowing to 18.9% ytd from 33.6% in 2011. This
widened Mongolia's fiscal deficit to 7.6% in May, from 3.6% at
end-2011, on a 12-month rolling basis. We expect the
deterioration to continue until further fiscal mineral revenues
flow in or spending is reined back.

There has been a lack of political will to adhere to fiscal
discipline. There is a significant risk that the Fiscal Stability
Law, which is binding from 2013 and would cap the structural
deficit at 2%, will not be implemented effectively.

Rapid concentrated credit growth and a weak supervisory regime
mean the banking sector could also suffer problems if a global
slowdown were to result in falling commodity prices. Credit
surged by 44.1% yoy at the end of May and 72.8% at end-2011, amid
a negative interest-rate environment. Contagion risks are
heightened further by cross-ownership as well as heavy exposure
among some banks via interbank transactions.

Non-performing loans are still low at 6.1% in May 2012, compared
with their peak of about 25% in November 2009 when Mongolia was
hit by a full-blown banking crisis. However, this improvement is
primarily attributable to the rapid growth in lending. The
outstanding NPLs and loans-in-arrears have been slow to come
down, and remain large at MNT375.7bn (USD283m) as of end-May
2012.

The volume of US dollar deposits in the banking system may expose
the system to solvency risk through currency mismatches - when
banks use funding from foreign-currency deposits to fund local-
currency lending, especially in times of a sharp depreciation of
Mongolia's currency. Approximately 30% of deposits are
denominated in foreign currency.

Moreover, the election showed rising political pressure to limit
foreign ownership in resource industries. However, Fitch regards
an extreme form of resource nationalisation as unlikely given the
dependence of Mongolia on foreign investment and technical know-
how to extract the mineral wealth.



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


AORANGI SECURITIES: Returns to Aorangi Investors in Doubt
---------------------------------------------------------
The statutory managers of Aorangi Securities may now be unable to
return almost 100 cents in the dollar to investors.

In papers submitted to the High Court, Mrs. Hubbard is disputing
the beneficial ownership by Aorangi of NZ$60 million of assets,
say the statutory managers in their 11th Report just released.

"The Court case to confirm that NZ$60 million of assets belong to
Aorangi and not the Hubbard's, has a provisional hearing date of
October 29, 2012, in Timaru. If that date is ultimately
unavailable, the hearing will likely be 2013.

"The challenge of ownership of the NZ$60 million of assets
submitted to the Court, means the possibility of a significant
loss to investors rather than closer to 100 cents in the dollar
if the NZ$60 million of assets were to be available for
distribution to Aorangi investors.

"It is our view that the Hubbards did not dispute the fact that
these assets belonged to Aorangi. Our reason for seeking a Court
declaration is to confirm that the correct action was being
taken.

"The assets in question were transferred to Aorangi by Mr and Mrs
Hubbard. They then attempted to transfer those same assets to
several trusts. This was unconventional and the legal aspects of
the transfer were incomplete in most cases.

"The unwinding of those subsequent transactions back to the
Hubbards was a deliberate and considered act because on our
analysis the legal processes in the original transactions were
ineffective and invalid.

"Sufficient funds are on hand to make a further three cent
capital payment to investors on 11 July 2012. This will bring the
total repayment to investors to 15 cents in the dollar," the
statutory managers said.

In addition, the statutory managers' report said that there is
progress recovering other third party loans valued at
approximately NZ$39 million.

The full report is available on the Grant Thornton Web site at
http://www.grantthornton.co.nz/

The statutory managers expect to provide a further report at the
end of September 2012.

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, of Grant Thornton, 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 Sept. 2, 2011.  Mrs. Hubbard was also
removed from statutory management, effective on Nov. 13, 2011.

Aorangi's statutory managers said 400 investors in the mortgage
lender owed NZ$96 million were likely to face a substantial
shortfall as many loans were in default.  So far, statutory
managers have paid just 12 cents in the dollar, The Timaru Herald
reports.


AORANGI SECURITIES: Court Decision Sets Out Distribution of Funds
-----------------------------------------------------------------
The statutory managers of Hubbard Management Funds which is
currently worth NZ$44 million have received direction on how to
allocate the fund to investors. This follows a High Court
decision that determined a model for allocating repayments to
investors.

The Court's decision was to accept a model submitted by
Mrs. Jean Hubbard.  The statutory managers are presently
undertaking the additional work needed to make the calculations
required by this model. Under the Court order, some 50 investors
will have to repay a total in excess of NZ$3 million of
distributions made in March 2012. The interim distributions were
made following directions from the Court earlier this year.

The statutory managers have already commenced work to implement
the Court's directions. "Our role is to seek Court approval for
key decisions and then implement those decisions," the statutory
managers said.

The Court has directed that cash invested less any cash
withdrawals, are the first call on the fund, and that any
remaining assets are to be distributed as return on each
investor's position reflecting the returns of each year. This
ignores the returns and capital growth that were shown on the
statements provided to investors by Mr. Hubbard.

The statutory managers are now reconstructing each investor's
position under the approved method. They will, over coming
months, be writing progressively to investors to confirm the
accuracy of the information to be used for the calculations. This
will enable further distributions to be made once this task is
complete for all investors.

"It is possible that the decision may yet be appealed by some
investors the statutory managers said. Should there be an appeal,
any distributions will be delayed while this progresses," the
statutory managers said.

The full report is available on the Grant Thornton Web site at
www.grantthornton.co.nz.

The statutory managers expect to provide a further report at the
end of September 2012.

                      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, of Grant Thornton, 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 Sept. 2, 2011.  Mrs. Hubbard was also
removed from statutory management, effective on Nov. 13, 2011.

Aorangi's statutory managers said 400 investors in the mortgage
lender owed NZ$96 million were likely to face a substantial
shortfall as many loans were in default.  So far, statutory
managers have paid just 12 cents in the dollar, The Timaru Herald
reports.


AORANGI SECURITIES: Jean Hubbard's Stand Disappoints Managers
-------------------------------------------------------------
Statutory managers, Grant Thornton New Zealand, have expressed
their disappointment at the announcement by Mrs. Jean Hubbard
that she will oppose the transfer of assets to Aorangi investors.

"For some time, we have been seeking for the Hubbards to honour
their promises and obligations. We are dismayed at Mrs. Hubbard's
decision, but remain committed to returning as many funds as
possible to investors," said the statutory managers from Grant
Thornton.

The statutory managers are seeking confirmation from the High
Court in Timaru as to whether assets introduced by the Hubbards
were part of Aorangi. These assets, currently valued at
NZ$60 million, would provide a substantial return to investors.

However, Mrs. Hubbard has decided to personally dispute this
position, holding up repayment to investors.

Mr. and Mrs. Hubbard had always said the introduced assets were
part of Aorangi.

The late Mr. Hubbard quoted to one Aorangi investor: "You will
never lose the capital as I would first of all have to lose
NZ$50 million."

"This is a major about turn by Mrs. Hubbard, and a considerable
setback for investors. It is contrary to public statements
previously made by the Hubbards that these assets are assets of
Aorangi and that their personal interests in Aorangi would rank
behind the interests of investors," the statutory managers said.

"If our claim is unsuccessful, we may need to look for other
avenues of recovery to ensure a suitable return to investors,"
they said.

"After transferring these assets to Aorangi, Mr. Hubbard
subsequently attempted to transfer the same assets to several
trusts and put loan arrangements in place between those trusts
and Aorangi. We deliberately unwound those subsequent
transactions because on our analysis they were ineffective."

So far, investors have received 12 cents in the dollar, or around
NZ$11.5 million, of their capital back. The legal action
undertaken by Mrs. Hubbard will, if successful, make a material
difference to the amount that is repaid to them, Grant Thornton
said.

The Statutory Managers said they will continue to engage with
representatives of Mrs. Hubbard as her and her late husband's
affairs are intermingled with those of Aorangi.

                       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, of Grant Thornton, 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 Sept. 2, 2011.  Mrs. Hubbard was also
removed from statutory management, effective on Nov. 13, 2011.

Aorangi's statutory managers said 400 investors in the mortgage
lender owed NZ$96 million were likely to face a substantial
shortfall as many loans were in default.  So far, statutory
managers have paid just 12 cents in the dollar, The Timaru Herald
reports.


CRAFAR FARMS: Buyer Lacks Business Acumen, Fay-led Group Says
-------------------------------------------------------------
Hamish Rutherford at stuff.co.nz reports that lawyers for a group
appealing the Government's decision to approve the sale of 16
Crafar Farms to a Chinese group said buyers Shanghai Pengxin
failed to demonstrate it had the necessary business acumen.

Appearing for the New Zealand Crafar Farms Purchase Group, Alan
Galbraith QC said the law required buyers of sensitive land to
demonstrate relevant business experience to back their
applications, according to the report.

stuff.co.nz relates that the group has appealed a decision by the
High Court to accept the Chinese application, with the hearing
took place in the Court of Appeal Monday.

According to the report, Mr. Galbraith said while the directors
of Shanghai Pengxin had demonstrated extensive detail of their
ability in retail and commercial property development, there was
very little detail of their track record in farming in their
application to the Overseas Investment Office.

Legislation stated that it was a "privilege" to buy sensitive
land and applicants had to demonstrate they would bring something
to New Zealand by having their application approved,
Mr. Galbraith, as cited by stuff.co.nz, said.

"We don't say, obviously, that you have to know how to milk a
cow, but applicants must demonstrate a knowledge of the sector,"
the report quotes Mr. Galbraith as saying.

Appearing for the Crown, stuff.co.nz notes, David Goddard QC said
the decision on the Crafar farms application by Shanghai Pengxin
was delegated to the Land Information Minister who was entitled
to take into account generic business experience on behalf of
applicants.

While there was little detail about the experience of the
directors of Shanghai Pengxin in farming, information contained
in the application regarding business experience was not designed
to be an exhaustive list, Mr. Goddard said.

Meanwhile, Adam Bennett at nzherald.co.nz reports that Shanghai
Pengxin has yet to complete the purchase of the Crafar farms, the
Court of Appeal was told Monday as the latest Sir Michael Fay-led
legal challenge to the acquisition was heard in Wellington.

nzherald.co.nz notes that the group which competed against
Shanghai Pengxin to buy the 16 farms from receivers but lost out,
is challenging the Overseas Investment Office's recommendation to
approve the deal which was later signed off on by Land
Information Minister Maurice Williamson and associate Finance
Minister Jonathan Coleman.

nzherald.co.nz relates that Mr. Galbraith said the OIO erred in
deciding that Shanghai Pengxin's partnership with state-owned
Landcorp -- which will run the farms -- satisfied the Overseas
Investment Act's requirement for relevant experience.

But while Shanghai Pengxin's spokesman Cedric Allen recently
refused to confirm whether the purchase of the farms had gone
through, the court was told Monday the transaction was on hold
pending the outcome of the appeal.


CRAFAR FARMS: Court Bans NZ$16 Farm Buyer; Faces Arrest
-------------------------------------------------------
Matt Nippert at stuff.co.nz reports that a woman who tried to buy
the Crafar farms for NZ$16 has been banned from dealing with the
properties by the High Court and faces possible arrest over her
actions.

stuff.co.nz says receivers from KordaMentha have agreed to sell
the 16-farm group to Chinese firm Shanghai Pengxin -- a sale tied
up in separate legal action -- but in August last year,
Elizabeth Lambert signed documents with Crafar patriarch Allan
Crafar to buy the properties for NZ$1 each.

The report relates that Ms. Lambert then filed caveats on some of
the farms and attempted to file changes of ownership, prompting
KordaMentha to file claims in the Hamilton High Court seeking to
have the sale ruled void and Ms. Lambert arrested for failing to
abide by an interim injunction.

In a High Court judgment released this week, stuff.co.nz relates,
Justice Rodney Hansen dismissed Ms. Lambert's arguments.

"I mean no disrespect to Ms. Lambert when I say that the
distinctions which she seeks to draw are novel and, as far as I
am aware, unknown to the law of real property of New Zealand,"
the report quotes Justice Hansen as saying.

The judge noted Ms. Lambert and Mr. Crafar, given the farms were
in receivership, did not have the ability to sell or transfer the
property, stuff.co.nz relays.

"The NZ$1 agreements would have gone nowhere to satisfying the
plaintiff's [KordaMentha] current indebtedness [as Crafar
receivers] to Westpac of approximately NZ$236 million," Justice
Hansen, as cited by stuff.co.nz, said.

According to the report, the judgment said Ms. Lambert admitted
in court that her motivation for the NZ$16 deal was "an attempt
to 'stymie' the sale to Pengxin and to give the Crafars time to
redeem the mortgages."

Justice Hansen ruled caveats placed by Lambert were to be removed
and barred her from visiting any of the 16 farms or making any
further attempts to impede their sale to Pengxin, the report
says.

After Ms. Lambert agreed to abide by the High Court ruling,
KordaMentha put its application to have her arrested on hold. The
request will be revisited on August 29, stuff.co.nz adds.


GRACE HOLDINGS: Director Blames Chief Trader for Collapse
---------------------------------------------------------
Matt Nippert at stuff.co.nz reports that Robert Kairua, director
of Grace Holdings NZ, trading as Bullion Buyer, has broken his
silence and blamed its collapse on a rogue cocaine-addicted chief
trader who he said secretly ordered nearly 500 kilograms of gold.

According to the report, Mr. Kairua said Florida-based Gus
Geldman made the huge purchase, worth $34 million at today's
prices, the week before Kairua fired him in September.

stuff.co.nz relates Mr. Kairua said Mr. Geldman kept information
about the scale of the company's position secret and it was only
when the trading account was audited in February, by which time
the price of gold had dropped, that millions of dollars in losses
were discovered.

"After the audit, we did we found he'd overbought by 17,000
ounces. And as a result of that, the price fell a couple of
hundred dollars, leaving us just over NZ$2 million out of
pocket," the report quotes Mr. Kairua as saying.  "If [the price
of gold] went the other way investors would be happy. But as it
was, it didn't. You can call it naive on our part. We didn't
actually finish the full set of accounts before we fired him."

The report notes that Mr. Kairua, who has not spoken publicly
since the Serious Fraud Office began investigating Bullion Buyer
in February, spoke this week after a Business Day investigation
uncovered Mr. Geldman's dubious past, including six aliases, a
string of drug convictions, and being charged with fraud by the
FBI in 2001.

Mr. Geldman was later found not guilty after a wiretapping
investigation into mafia links to Wall Street, the report
relates.

Stuff.co.nz notes that Mr. Geldman was fired from Bullion Buyer
in September last year after revelations he was facing wire fraud
charges in Florida for offending unrelated to the Auckland firm.
After pleading guilty Mr. Geldman was sentenced to five years in
prison.

Mr. Kairua, as cited by stuff.co.nz, said he appointed
liquidators to Bullion Buyer as soon as he realised the extent of
Mr. Geldman's unauthorised transactions, and he expected to be
cleared of any wrongdoing by the SFO.

Grace Holdings New Zealand Limited, trading as Bullion Buyer, was
placed in liquidation in February 2012 owing investors a total of
at least NZ$3 million.



=================
S I N G A P O R E
=================


FYNS KRAN: Creditors Get 100% Recovery on Claims
------------------------------------------------
Fyns Kran (Asia) Pte Ltd, which is in creditors' voluntary
liquidation, declared the first and final dividend on June 29,
2012.

The company paid 100% for preferential and 65% for unsecured
claims.

The company's liquidator is:

         Aw Eng Hai
         47 Hill Street #05-01
         Singapore Chinese Chamber of Commerce
         & Industry Building
         Singapore 179365


GOLDLINK ITALIA: Creditors' Proofs of Debt Due July 13
------------------------------------------------------
Creditors of Goldlink Italia Marketing Pte Ltd are required to
file their proofs of debt by July 13, 2012, to be included in the
company's dividend distribution.

The company's liquidators are:

          The Official Receiver
          The URA Centre (East Wing)
          45 Maxwell Road #06-11
          Singapore 069118


GOLDLINK TEXTILE: Creditors' Proofs of Debt Due July 13
-------------------------------------------------------
Creditors of Goldlink Textile Marketing Pte Ltd are required to
file their proofs of debt by July 13, 2012, to be included in the
company's dividend distribution.

The company's liquidators are:

          The Official Receiver
          The URA Centre (East Wing)
          45 Maxwell Road #06-11
          Singapore 069118


GLOBAL A&T: S&P Affirms 'B' Long-Term Corporate Credit Rating
-------------------------------------------------------------
Standard & Poor's Ratings Services affirmed its 'B' long-term
corporate credit rating on Singapore-based Global A&T Electronics
Ltd. The outlook is positive.

"At the same time, Standard & Poor's affirmed its 'B' rating on
GATE's US$150 million revolving credit facility due in October
2013 and the US$625 million first lien term loan due in October
2014. We affirmed the ratings because we believe GATE, an OSAT
company, will have stable operating performance and the company
will maintain its "highly leveraged" financial risk profile over
the next 12 months," S&P said.

"In our view, GATE is likely to improve its financial risk
profile to "aggressive" in 2013 by reducing its leverage and
capital expenditure," said Standard & Poor's credit analyst
Abhishek Dangra.

"We believe the company can reduce its leverage by using its cash
and internal accruals to repay the US$145 million outstanding on
the revolving credit facility due in October   2013." GATE's
business risk profile is "weak," in our view, and we expect it to
remain unchanged. The company is the sixth-largest player
globally in the   cyclical and highly fragmented OSAT industry.
The industry faces short product life cycles, continuing
technological developments, and price erosion with aggressive
competition. It also requires heavy capital expenditure at 15%-
20% of revenue,"
S&P said.

"However, we expect the OSAT   industry to continue to grow due
to the increasing complexity of packaging and economies of scale.
"The growth in smartphones, tablets, and PCs also provides
opportunities for the semiconductor industry.  We believe
revenues could increase faster than   global GDP growth," Mr.
Dangra said.

"The positive rating outlook reflects our expectation of stable
operating performance and EBITDA margin. We also assume that the
company will contain   its capital expenditure. We may raise the
rating if GATE maintains its operating performance and
strengthens its financial risk profile such that the debt-to-
EBITDA ratio is consistently below 4.5x, which is likely if the
company meets its 2013 debt maturities using its own funds. We
may revise the outlook back to stable if GATE refinances the
entire   maturities in 2013 and 2014 with debt, or if the
operating performance deteriorates, resulting in debt to EBITDA
above 4.5x on a sustained basis," S&P said.


HONG SENG: Court to Hear Wind-Up Petition July 13
-------------------------------------------------
A petition to wind up the operations of Hong Seng & Company
(Private) Limited Pte Ltd will be heard before the High Court of
Singapore on July 13, 2012, at 10:00 a.m.

Hock Hin (1972) Private Limited filed the petition against the
company on June 19, 2010.

The Petitioner's solicitors are:

         M/S J.S YEH & CO.
         133 New Bridge Road
         #18-03/04/05 Chinatown Point
         Singapore 059413


RESOURCE GEOTECH: Creditors' Proofs of Debt Due July 13
-------------------------------------------------------
Creditors of Resource Geotech Pte Ltd are required to file their
proofs of debt by July 13, 2012, to be included in the company's
dividend distribution.

The company's liquidators are:

          The Official Receiver
          The URA Centre (East Wing)
          45 Maxwell Road #06-11
          Singapore 069118



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


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


July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/



                             *********

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

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

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


                            *********


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

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