TCRAP_Public/120711.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Wednesday, July 11, 2012, Vol. 15, No. 137

                            Headlines


A U S T R A L I A

AUSTRALIAN MUTUAL: S&P Affirms Junior Notes Rating at 'B-(sf)'
BNY TRUST: S&P Affirms Rating on Class E Notes at 'BB+ (sf)'
DARRELL LEA: Appoints PPB Advisory as Voluntary Administrators
JEM PTY: Moody's Downgrades Rating on Bullet Bonds to 'Ba2'
PROVIDENT CAPITAL: Signed on Small Investors Prior to Collapse

QUEENSLAND RUGBY: Grant Thornton Appointed as Liquidators
UNITED WARRANTIES: Liquidators to Probe Company's Affairs


C H I N A

CHINA 3C: Posts $4.7 Million Net Loss in Q1 2012
CHINA TEL GROUP: Unregistered Securities Sales Exceed Threshold
CHINA YIDA: Fails to Comply With NASDAQ's $1 Bid Price Rule
CHINA ZHENGTONG: Moody's Withdraws (P)Ba3 Sr. Unsec. Bond Rating
SHIMAO PROPERTY: S&P Cuts LT Corporate Credit Rating to 'BB-'


H O N G  K O N G

AKAMAI FINANCIAL: Annual Meetings Set for July 20
ARISAIG PARTNERS: Seng and Lo Step Down as Liquidators
ASIAN PACIFIC: Placed Under Voluntary Wind-Up Proceedings
BLUE SKY: Court Enters Wind-Up Order
CANKING INDUSTRIES: Placed Under Voluntary Wind-Up Proceedings

CHARTER SMART: Court to Hear Wind-Up Petition on Aug. 29
CHINA INFORMATION: Members' Final General Meeting Set for Aug. 8
CHINA PROMISE: Court to Hear Wind-Up Petition on Aug. 22
CHUNG FU: Creditors' Proofs of Debt Due Aug. 6
EASTERN LINK: Creditors' Proofs of Debt Due Aug. 2

EASYWIN UNIVERSAL: Court Enters Wind-Up Order
EXPERT LEGAL: Court Enters Wind-Up Order
GLAD ATTAIN: Creditors' Proofs of Debt Due July 23
LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
LOFTY CIRCLE: Court to Hear Wind-Up Petition on Aug. 22

RINGTOYS LIMITED: Court to Hear Wind-Up Petition on Aug. 29


I N D I A

BALAJI OIL: Poor Financial Performance Cues Fitch to Lower Rating
B HIMMATLAL: ICRA Assigns '[ICRA]BB-' Rating to INR12cr Loan
DEVDOOT COTTON: ICRA Rates INR6cr Cash Credit Limit at 'B+'
ESHWAR TRUST: ICRA Reaffirms '[ICRA]B-' Rating on INR9.58cr Loan
FARADAYS INDUSTRIES: Delays in Loan Payment Cues Junk Ratings

GARG SALES: ICRA Assigns '[ICRA]B+' Rating to INR1.75cr Loans
GENUS PAPER: Fitch Withdraws 'B' National Long-Term Rating
GROWMORE INT'L: ICRA Reaffirms 'BB' Rating on INR5.19cr Loan
JAGNATH COTTON: ICRA Cuts Rating on INR6cr Loan to '[ICRA]B'
LA CERA: ICRA Assigns '[ICRA]B+' Rating to INR5.5cr Loans

LIFESTYLE SAREES: ICRA Reaffirms 'BB-' Rating on INR15cr Loan
MAGADH INDUSTRIES: Fitch Assigns 'C' Ratings to Two Loan Classes
MAGADH IRON: Fitch Assigns 'B-' National Long-Term Rating
RAJA HOUSING: Fitch Withdraws 'B' National Long-Term Rating
SEVEN ISLANDS: ICRA Assigns '[ICRA]B' Rating to INR60cr Loans

SUPER STEAM: ICRA Assigns '[ICRA]B+' Rating to INR5.10cr Loans
TATA POWER: S&P Affirms LT Corporate Credit Rating at 'BB-'
UV BOARDS: ICRA Reaffirms '[ICRA]BB' Rating on INR5.82cr Loans
V.B. HYDRO: ICRA Rates INR33cr Loan at '[ICRA]B'
ZAZSONS EXPORTS: ICRA Assigns '[ICRA]C' Rating to INR35.2cr Loan


I N D O N E S I A

KAWASAN INDUSTRI: S&P Assigns 'B+' Long-Term Corp. Credit Rating


J A P A N

JLOC XXVIII: Fitch Affirms Rating on Two TBI Note Classes
* JAPAN: Corporate bankruptcies Fall 3.2% in Jan-June 2012


M A L A Y S I A

H & I NIAGA: Suit Vs. Bank Negara Put On Hold Amid Liquidation


N E W  Z E A L A N D

HARTLAND CONSTRUCTION: Liquidator to Probe Firm's Collapse
YARROWS GROUP: Creditors May File Class Action Suit


S I N G A P O R E

AIRASIA PTE: Members' Final Meeting Set for Aug. 3
APLHA RIM: Creditors' Proofs of Debt Due Aug. 6
ASIA GHANI: Creditors Get 100% Recovery on Claims
CUSHING PTE: Creditors' Proofs of Debt Due Aug. 6
EASTERN OCEAN: Court Enters Wind-Up Order

EASTMARCOSSE PTE: Court Enters Wind-Up Order
ECON KOREA: Creditors' Proofs of Debt Due Aug. 3
GALLEY'S GOURMET: Creditors' Proofs of Debt Due Aug. 6
HG ASIA: Court to Hear Wind-Up Petition July 20


P A P U A  N E W  G U I N E A

BANK OF SOUTH PACIFIC: S&P Hikes Counterparty Credit Rating to B+


V I E T N A M

SAIGON-HANOI COMM'L: Moody's Confirms 'B2' Ratings; Outlook Neg.


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                            - - - - -


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A U S T R A L I A
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AUSTRALIAN MUTUAL: S&P Affirms Junior Notes Rating at 'B-(sf)'
--------------------------------------------------------------
Standard & Poor's Ratings Services has affirmed its ratings on
all tranches of notes issued by Australian Mutual LT2 Capital
Funding (No. 1) Ltd..

The AUD44.1 million floating-rate notes issued by AMCF are
secured by a portfolio of lower tier 2 (LT2) instruments issued
by 15 participating Australian credit unions. The credit
performance of the instruments issued by each of the credit
unions has a direct impact on the timely payment of interest and
ultimate repayment of principal to noteholders.

The rating affirmations reflect the credit quality of the
underlying portfolio of credit unions that have issued the LT2
instruments.

Standard & Poor's undertakes surveillance of its outstanding
ratings over time, and has typically informed the market of any
consequent changes to its credit opinions.

"To enhance market transparency, we will also be publishing
rating affirmations from time to time after conducting a rating
review that does not result in a rating change.  A total of $5.9
million of notes have been repaid since the transaction closed,
following the redemption of an equivalent amount of LT2
instruments by some of the credit unions after a merger of the
institutions," S&P said.

This has reduced the exposure of the portfolio to 15 credit
unions from 21.

It has affected the transaction by increasing the minimum credit
enhancement commensurate with the ratings on the notes due to the
increase in the concentration to the remaining credit unions in
the portfolio.  However, this is partially offset by the increase
in the credit support provided to the notes due to the
nonamortizing loss reserve of $5 million.

"Given the current trend, we believe further consolidation is
likely within the industry before the scheduled maturity date of
these notes in 2016. This could lead to further concentration of
the portfolio to certain credit unions, consequently increasing
the minimum credit support commensurate with the ratings on the
notes. The largest obligor in the portfolio currently accounts
for more than 20% of the total portfolio balance. If further
consolidation were to lead to redemption of the LT2 instruments
and a consequent reduction in the portfolio size, we would expect
an increase in yield strain in the portfolio due to the
sequential repayment to noteholders and the fixed expenses of the
trust payable to transaction participants. The rating affirmation
reflects our view that the rated notes are able to withstand
stresses that are commensurate with their current rating level,"
S&P said.

Ratings Affirmed

Class            Rating
Senior           A+ (sf)
Mezzanine        BB- (sf)
Junior           B- (sf)


BNY TRUST: S&P Affirms Rating on Class E Notes at 'BB+ (sf)'
------------------------------------------------------------
Standard & Poor's Ratings Services raised its rating on the class
C notes issued by BNY Trust Company of Australia Ltd. as trustee
of Illawarra Series 2007-1 CMBS Trust.

At the same time, Standard & Poor's affirmed its ratings on the
class A, B, D and E notes.

The notes are backed by a portfolio of small-ticket commercial
mortgage loans originated by IMB Ltd. The raised rating reflects
our opinion that the rated notes are adequately supported to
withstand stresses that are commensurate with the higher rating
level.

The underlying assets of the trust have performed strongly during
the life of the transaction, with historically low levels of
arrears. Currently there are no loans in arrears for greater than
30 days. The cumulative losses experienced to date form 0.1% of
the original portfolio balance, and have been covered by excess
spread. About 60% of the loan balances has been paid down to
date.

Under the sequential pay structure, there continues to be a build
up in credit support to the rated notes as the transaction
amortizes.

Illawarra Series 2007-1 CMBS Trust issued AUD250.0 million of
floating-rate notes in June 2007. The notes are backed by a pool
of fully amortizing and interest-only loans that revert to fully
amortizing Australian-dollar, fixed- and floating-rate loans.

The loans were made to commercial borrowers and secured by first-
registered mortgages over Australian commercial or residential
properties.

Rating Raised

Class       Rating to      Rating from
C           AAA (sf)       AA (sf)

Ratings Affirmed

Class       Rating
A           AAA (sf)
B           AAA (sf)
D           A- (sf)
E           BB+ (sf)


DARRELL LEA: Appoints PPB Advisory as Voluntary Administrators
--------------------------------------------------------------
The directors of Darrell Lea Chocolate Shops Pty Ltd and Ricci
Remond Chocolate Company Pty Ltd on July 10, 2012, appointed
Mark Robinson -- mrobinson@ppbadvisory.com --, Jack Bournelis --
jbournelis@ppbadvisory.com -- and Daniel Walley --
dwallley@ppbadvisory.com -- of PPB Advisory as voluntary
administrators of the business.

PPB Advisory's appointment follows an ongoing review of the
business by its directors and their concerns about Darrell Lea's
ability to meet its ongoing financial obligations.

Mark Robinson of PPB Advisory said: "We are undertaking an urgent
review of the business with a view to preparing Darrell Lea for
sale as a going concern. The owners of the business have agreed
to provide some short term financial support whilst we undertake
this process.  We will work with all stakeholders including
employees and their representatives, licensees, customers and
suppliers to ensure the business continues to operate
effectively."

                    Employees Shock by Collapse

The Age reports that Bruce O'Keefe, the regional secretary of the
Australian Manufacturers Workers Union, which represents 160
workers at the Kogarah factory, said the move to voluntary
administration came as "a total and absolute shock" which left
staff "shocked, angry and dismayed."

The Age relates that Mr. O'Keefe said the union would make an
application to Fair Work Australia due to Darrell Lea's lack of
consultation and what he said was a broken agreement for
management to set aside money into a trust to guarantee workers'
entitlements.

According to the Age, factory workers were told in a company
meeting Tuesday that the company would have struggled to pay
their wages this week if it had not entered into administration.
Despite their concerns, the workers were told "to go back to work
and keep the place going so they could sell it," the report
relates.

The Age notes that the company's founders, the Lea family, have
since committed to provide administrators with short-term
funding, enough to keep to keep the business running for four to
eight weeks, as the search for buyers kicks off in earnest.

"There are concerns about whether entitlements will be
recovered," the Age quotes Mr. O'Keefe as saying. "[Workers] are
trying to find out what it means for their jobs, but it doesn't
look good at this stage."

                         About Darrell Lea

Founded in 1927, Darrell Lea is an iconic Australian brand and a
highly regarded manufacturer and retailer of confectionary
products. Its products are sold through 69 owned and licensed
stores and 1,800 retail outlets across Australia, New Zealand and
the USA. Darrell Lea employs around 700 people across its Sydney
based manufacturing facility and its retail network.


JEM PTY: Moody's Downgrades Rating on Bullet Bonds to 'Ba2'
-----------------------------------------------------------
Moody's Investors Service has downgraded the Aa3 ratings of the
Annuity Bonds and Bullet Bonds (together, the Bonds) issued by
JEM (No. 3 Charles Street) Pty Ltd.

Details of the rating actions are as follows:

Issuer: JEM (No.3 Charles Street) Pty Ltd

   -- AUD85 million Annuity Bonds, Downgraded to A3 (sf);
previously on April 23, 2012, Aa3 (sf) Placed Under Review for
Downgrade;

   -- AUD80 million Bullet Bonds, Downgraded to Ba2 (sf);
previously on April 23, 2012, Aa3 (sf) Placed Under Review for
Possible Downgrade

Ratings Rationale

The property backing the CMBS is a Grade A office building
located in Parramatta, New South Wales (NSW). It is leased to the
NSW Police force as its headquarters.

Current payments to the Bonds come from the rent and special rent
paid by the NSW State Government. Such rental payments can fully
support the Annuity Bonds' payments up to their maturity in
March 2022.

However, the Bullet Bonds, which have a scheduled maturity in
June 2013 and a legal maturity in December 2015, cannot be repaid
in full solely by rental payments. Moody's therefore need to
focus on the repayment probability based on the underlying value
of the property.

To derive Moody's value of the underlying property at Bullet Bond
legal maturity in December 2015, Moody's used the stabilized cash
flow and a stabilized cap rate. Moody's determines that the
stabilized loan-to-value (LTV) of the Bullet Bonds to be 72%.

The stabilized LTV of the Annuity Bonds is around 33%. However,
as the default of the Bullet Bonds will also trigger an event of
default for the Annuity Bonds, the likelihood of the Annuity Bond
defaulting is linked to that for the Bullet Bonds.

It should be noted that the term payments of the Annuity Bonds
are ultimately supported by unabateable cash flow generated from
the payment of the rent and special rent by the Aaa-rated NSW
State Government. In addition, even if an event of default is
declared, the Annuity Bonds are well protected by the
senior/subordinated structure between the two Bonds, and thereby
likely leading to full recovery.

Hence, the Annuity Bonds' rating is uplifted to five notches
above the Bullet Bonds' rating.

Rating Methodology

The methodology used in this rating was "Moody's Approach to
Rating CMBS Large Loan/Single Borrower Transactions" published in
July 2000.


PROVIDENT CAPITAL: Signed on Small Investors Prior to Collapse
--------------------------------------------------------------
Larry Schlesinger at Property Observer reports that Provident
Capital was signing on small investors to its fixed-term mortgage
fund with promises of returns above 9% in the months before it
was placed in receivership on July 4.

Property Observer says 3,500 small investors have about $30,000
each invested in fixed-term products that mature at different
times, with fears that Provident could run out of money to pay
investors with later maturation dates.

According to the report, the AUD120 million fund is invested in
first mortgages covering residential, commercial and rural
properties principally for property development.

Provident Capital Limited -- http://www.providentcapital.com.au/
-- is a funds management and investment group offering fixed
interest investments and mortgage lending products.  These
investments are secured against a portfolio of non-conforming
mortgages secured over Australian residential and commercial
property.  The business has some 3,500 debenture holders who have
invested in Provident Capital's debenture product.

The Federal Court of Australia on July 4, 2012, appointed
Phil Carter, Tony Sims, and Marcus Ayres of PPB Advisory as
receivers of Provident Capital Limited.  This follows an
application by the trustee for noteholders Australian Executor
Trustees Limited (AET). The Australian Securities and Investments
Commission also made submissions as "friends of the Court".

PPB Advisory's appointment follows concerns raised with the Court
by AET that there is a deficiency in net tangible assets
available to meet the claims of debenture holders.


QUEENSLAND RUGBY: Grant Thornton Appointed as Liquidators
---------------------------------------------------------
Brisbanetimes.com.au reports that Queensland Rugby Club members
are yet to be contacted by the collapsed club, which began
liquidation proceedings on Monday.

Brisbanetimes.com.au relates it has been a week since the
Queensland Rugby Union Club Incorporation closed its primary
venue, the AUD13 million Rugby Quay on Brisbane's CBD riverside,
but members have been left in the dark, saying they are finding
out about the club's troubles via media and word-of-mouth.

The club was granted Monday an order in the Brisbane Supreme
Court to allow the appointment of liquidators, the report relays.

According to the report, Grant Thornton announced July 10 Michael
McCann and Graham Killer had been appointed as liquidators.

"The Queensland Rugby Club filed an application in the Supreme
Court of Queensland to enter into liquidation, which was passed
yesterday," Mr. McCann said in a statement cited by
Brisbanetimes.com.au.  "The club had ceased operating by the date
of my appointment."

Mr. McCann said further information would be issued shortly to
members, suppliers and customers of the club who had future
bookings, Brisbanetimes.com.au notes.


UNITED WARRANTIES: Liquidators to Probe Company's Affairs
---------------------------------------------------------
SmartCompany reports that Grant Thornton has been appointed
liquidators of United Warranties group after the business
appeared to stop trading a few weeks ago and the owner and chief
executive of the extended warranty company went missing.

SmartCompany reported last week about concerns surrounding the
company's solvency and attempted repeatedly to contact the owner
and chief executive Vern Rickman without success.

Mr. Rickman's mobile telephone is now disconnected and the
company's telephones ring out, while emails remain unanswered,
the report notes.

The United group turned over AUD20 million a year and last year,
Mr. Rickman told SmartCompany the business was entering a "big
growth phase", with revenue expected to jump to around
AUD50 million in the next few years.

Matt Byrnes and Andrew Hewitt of Grant Thornton were appointed
liquidators of all three businesses in the group on July 9,
according to SmartCompany.

"The liquidators will undertake an investigation into the company
and its affairs and will report to the ASIC and creditors when
their investigation is complete," Grant Thornton said in a short
statement cited by SmartCompany.

"The warranty and maintenance businesses are no longer trading,"
SmartCompany quotes Mr. Byrnes as saying.  "We will be liaising
with Myer, Big W and other providers in relation to any warranty
claims that have not been completed, and arranging for items to
be collected by those providers."

Mr. Byrnes said consumers should direct any queries regarding
their warranty claims directly to Myer, Big W or their provider,
adds SmartCompany.

United Warranties and two related entities, United Maintenance
and United Electrical Holding Company supplied third-party
extended warranty products to retailers including Myer,
McDonald's, MyChemist and Woolworths' Big W chain.



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C H I N A
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CHINA 3C: Posts $4.7 Million Net Loss in Q1 2012
------------------------------------------------
China 3C Group filed its quarterly report on Form 10-Q, reporting
a net loss of $4.68 million on $7.71 million of sales for the
three months ended March 31, 2012, compared with a net loss of
$4.21 million on $18.03 million of sales for the same period of
2011.

The Company's balance sheet at March 31, 2012, showed
$11.83 million in total assets, $3.01 million in total
liabilities, and stockholders' equity of $8.82 million.

As reported in the Troubled Company Reporter on April 20, 2012,
Goldman Kurland and Mohidin LLP, in Encino, California, expressed
substantial doubt about China 3C Group's ability to continue as a
going concern, following the Company's results for the fiscal
year ended Dec. 31, 2011.  The independent auditors noted that
the Company has incurred significant losses from operations for
the past three years.  "In addition, the Company's cash position
substantially deteriorated from 2010."

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

                       http://is.gd/CYC0Uq

Located in HangZhou City, Zhejiang Province, China, China 3C
Group operated in five reportable segments.  Yiwu Yong Xin
Telecommunication Company, Limited, or "Yiwu," focuses on the
selling, circulation and modern logistics of fax machines and
cord phone products.

Hangzhou Wang Da Electronics Company, Limited, or "Wang Da,"
focuses on the selling, circulation and modern logistics of cell
phones, cell phones products, and digital products, including
digital cameras, digital camcorders, PDAs, flash disks, and
removable hard disks.

Hangzhou Sanhe Electronic Technology Limited, or "Sanhe," focused
on the selling, circulation and modern logistics of home
electronics, including DVD players, audio systems, speakers,
televisions and air conditioners.  This entity ceased operation
as of Dec. 31, 2011.

Shanghai Joy & Harmony Electronics Company Limited, or "Joy &
Harmony," focused on the selling, circulation and modern
logistics of consumer electronics, including MP3 players, MP4
players, iPods, electronic dictionaries and radios.  This entity
ceased operation as of Dec. 31, 2011.

Jinhua Baofa Logistic Company Limited, or "Jinhua," provides
transportation logistics services to businesses.  Jinhua operates
primarily in Eastern China and covers many of the most developed
cities in the Eastern China such as Shanghai, Hangzhou and
Nanjing.


CHINA TEL GROUP: Unregistered Securities Sales Exceed Threshold
---------------------------------------------------------------
VelaTel Global Communications, Inc., formerly known as China Tel
Group Inc., has made sales of unregistered securities, namely
shares of the Company's Series A common stock.  The aggregate
number of Shares sold exceeds 5% of the total number of Shares
issued and outstanding as of June 15, 2012.

On June 28, 2012, the Company issued 14,952,867 Shares to
Domenico Di Gianvito Butler in reduction of $171,957.98 of
accounts payable for construction services rendered to the
Company's Peru subsidiary for deployment of its Peru wireless
broadband network.

On June 29, 2012, the Company issued 3,478,261 Shares to Kimberly
Brown dba Core Insights 360 in reduction of $40,000 of accounts
payable for public relations and investor relations services
provided to the Company.

On July 5, 2012, the Company issued 117,000,000 Shares to
Ironridge Global IV, Ltd.  The Initial Issuance was pursuant to
an Order for Approval of Stipulation for Settlement of Claims
between the Company and Ironridge, in settlement of $1,367,693 of
accounts payable of the Company which Ironridge had purchased
from certain creditors of the Company, in an amount equal to the
Assigned Accounts, plus fees and costs.  The Assigned Accounts
relate to:

  (1) the remaining down payment for infrastructure equipment and
      software purchased from ZTE Corporation for the Company's
      subsidiaries in Cyprus, Croatia and Montenegro for
      expansion of its Croatia wireless broadband network and
      deployment of its Montenegro wireless broadband network;

  (2) the cost of shipping, insurance and other transport
      logistics services to deliver the equipment and software
      from its place of manufacture in China to its ultimate
      destinations;

  (3) the proof of funds deposit required as registered capital
      for formation of a PRC operating company pursuant to the
      exclusive services contract between the Company and New
      Generation Special Network Communication Technology Co; and

  (4) amounts previously financed for consumer terminals
      delivered to the Company's Peru subsidiary as inventory for
      resale to customers.

In addition, the Company issued 49,908,203 registered Shares
pursuant to a Form S-8 Registration Statement filed on June 29,
2012.

As of July 6, 2012, the Company has 1,172,270,160 shares of its
Series A common stock outstanding, with a par value of $0.001,
and 133,818,177 shares of its Series B common stock outstanding,
with a par value of $0.001.

A copy of the Form 8-K is available for free at:

                        http://is.gd/aFIgF8

                          About China Tel

Based in San Diego, California, and Shenzhen, China, China Tel
Group, Inc. (OTC BB: CHTL) -- http://www.ChinaTelGroup.com/--
provides high speed wireless broadband and telecommunications
infrastructure engineering and construction services.  Through
its controlled subsidiaries, the Company provides fixed
telephony, conventional long distance, high-speed wireless
broadband and telecommunications infrastructure engineering and
construction services.  ChinaTel is presently building, operating
and deploying networks in Asia and South America: a 3.5GHz
wireless broadband system in 29 cities across the People's
Republic of China with and for CECT-Chinacomm Communications Co.,
Ltd., a PRC company that holds a license to build the high speed
wireless broadband system; and a 2.5GHz wireless broadband system
in cities across Peru with and for Perusat, S.A., a Peruvian
company that holds a license to build high speed wireless
broadband systems.

After auditing the 2011 results, Kabani & Company, Inc., in Los
Angeles, California, expressed substantial doubt as to the
Company's ability to continue as a going concern.  The
independent auditors noted that the Company has incurred a net
loss for the year ended Dec. 31, 2011, cumulative losses of $254
million since inception, a negative working capital of $16.4
million and a stockholders' deficiency of $9.93 million.

The Company reported a net loss of $21.79 million in 2011,
compared with a net loss of $66.62 million in 2010.

The Company's balance sheet at March 31, 2012, showed
$13.57 million in total assets, $19.53 million in total
liabilities and a $5.95 million total stockholders' deficiency.


CHINA YIDA: Fails to Comply With NASDAQ's $1 Bid Price Rule
-----------------------------------------------------------
China Yida Holding Company has received a letter from The NASDAQ
Stock Market LLC informing the Company that its common stock has
not met the $1.00 minimum bid price requirement for continued
listing on The Nasdaq Capital Market under Nasdaq Listing Rule
5550(a)(2).  The Company did not meet Nasdaq's minimum bid price
requirement because the closing bid price for its common stock
for each trading day in the 30-business day period from May 17,
2012 to June 28, 2012 was less than $1.00 per share.

In accordance with Nasdaq Listing Rule 5810(c)(3)(A), China Yida
has a grace period of 180 calendar days, or until Dec. 31, 2012,
to regain compliance with the minimum bid price requirement.  To
regain compliance, the closing bid price of the Company's common
stock must meet or exceed $1.00 per share for at least ten
consecutive business days during this 180-day grace period.  If
the Company chooses to implement a reverse stock split, it must
complete the split no later than ten business days prior to the
expiration date of the grace period in order to regain
compliance.

If the Company does not regain compliance within this period, it
may be eligible for additional time.  To qualify, the Company
will be required to meet the continued listing requirement for
market value of publicly held shares and all other initial
listing standards for The Nasdaq Capital Market, with the
exception of the bid price requirement, and will need to provide
written notice of its intention to cure the deficiency during the
second compliance period, by effecting a reverse stock split, if
necessary.  If the Company fails to regain compliance within the
grace period permitted by Nasdaq, the Company's common stock will
be subject to delisting by Nasdaq.  The Company will consider
available options to resolve the noncompliance with the minimum
bid price requirement.

The notification letter has no immediate effect on the listing of
the Company's common stock on The Nasdaq Capital Market. China
Yida's common stock will continue to trade on The Nasdaq Capital
Market under the symbol "CNYD."

                            About China Yida

China Yida -- http://www.yidacn.net/-- is a leading tourism and
media enterprise focused on China's fast-growing leisure industry
and headquartered in Fuzhou City, Fujian province of China.  The
Company provides tourism management services and specializes in
the development, management and operation of natural, cultural
and historic scenic sites.


CHINA ZHENGTONG: Moody's Withdraws (P)Ba3 Sr. Unsec. Bond Rating
----------------------------------------------------------------
Moody's Investors Service has withdrawn China ZhengTong Auto
Services Holdings Limited's provisional (P)Ba3 senior unsecured
bond rating.

Ratings Rationale

Moody's has withdrawn the rating as ZhengTong has decided to
postpone its proposed notes issuance.

Moody's notes that ZhengTong is instead arranging domestic bank
loans to refinance two bridging loans -- for acquisitions -- of
RMB1 billion each due August and December 2012.

Moody's estimates that ZhengTong has around RMB 1 billion in
unrestricted cash to cover any shortfall in case the refinancing
loans are not enough to meet the amount of maturing debt.

The principal methodology used in rating China ZhengTong Auto
Services Holdings Limited was the Global Automotive Retailer
Industry Methodology published in December 2009.

Incorporated in 1999 and headquartered in Beijing, ZhengTong is a
leading car dealership in China, with a focus on the luxury and
ultra-luxury car market. It has a presence in 12 regions,
covering 27 cities in both tier I coastal cities and the fast-
growing tier II and III cities in central and north China. It
listed on the Hong Kong Stock Exchange in December 2010.


SHIMAO PROPERTY: S&P Cuts LT Corporate Credit Rating to 'BB-'
-------------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term
corporate credit rating on China-based property developer Shimao
Property Holdings Ltd. to 'BB-' from 'BB'.  The outlook is
stable.

"At the same time, we lowered the issue rating on the company's
senior unsecured notes to 'B+' from 'BB-'," S&P said.

"According to our mapping of the two scales, the downgrade of the
global scale ratings does not affect our Greater China credit
scale ratings on Shimao.  We therefore affirmed our long-term
Greater China credit scale issuer rating of 'cnBB+' on Shimao and
issue rating of 'cnBB' on its senior unsecured notes," S&P said.

"We removed all the ratings from CreditWatch, where they were
placed with negative implications on March 30, 2012," S&P said.

"We lowered the ratings on Shimao because we believe that,
despite the company's improving property sales, its leverage will
unlikely improve materially after a deterioration in 2011 and
will likely remain high for our 'BB' rating in the next 12
months," said Standard & Poor's credit analyst Frank Lu.

"Although the company intends to improve its leverage, we expect
the scope for debt reduction to be somewhat limited due to
continued funding needs for its large-scale constructions and
potential expansion," S&P said.

Standard & Poor's expects Shimao's credit ratios to improve
somewhat by the end of 2012.

However, they will be still weak compared with peers rated at
'BB'.  Declining profit margin could partially offset improving
sales, Mr. Lu said.

"In our base-case scenario, we estimate Shimao's contract sales
to rise to about Chinese renminbi (RMB) 35.0 billion this year,
exceeding its budget of RMB30.7 billion, due to higher sales
volume stemming from price discounting and product mix
adjustment," S&P said.

As a result of lower prices, gross margin may decline to about
34% over the next two years, from 38.4% in 2011.

"We estimate EBITDA interest coverage ratio to improve to 2.7x
but remain short of the 3x threshold we have set for the 'BB'
rating level.  Despite Shimao's recent indication of slowing
expansion and deleveraging, we  are uncertain about its
commitment when sales are improving and competitors  are
acquiring land to increase their market share," S&P said.

"In our view, the company has been adopting a more aggressive
financial management, which is reflected in a steady increase in
leverage as it expanded into commercial and industrial
properties," S&P said.

"The company's aggressive financial management is also reflected
in its more limited financial flexibility, particularly the
limited headroom in its bank loan covenants in the past two
years.  The stable outlook reflects our expectation that Shimao's
capital structure is  likely to improve somewhat and stabilize at
a level appropriate for the 'BB-' rating, due to increasing
property sales and slowing expansion in the next one year," S&P
said.

"We may lower the rating if Shimao's leverage deteriorates due to
materially weaker-than-expected property sales or more
aggressive-than-expected debt-funded expansion. The company's
ratio of adjusted debt to capital rising above 60% or EBITDA
interest coverage falling below 2.5x could indicate such a
deterioration," S&P said.

"In our base-case scenario, Shimao's EBITDA interest coverage
could be less than 2.5x if contract sales in 2012 are less than
RMB30.7 billion and gross margin is lower than 33%.  The
potential upside to the rating is limited in the next 12 months.
We may raise the rating if Shimao further improves its property
sales, maintains satisfactory margins, and boosts its capital
structure and financial flexibility, including borrowing headroom
under its covenants," S&P said.

"Furthermore, we could raise the rating if the company
establishes a consistent track record of controlling its leverage
and manages its expansion more cautiously," S&P said.



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


AKAMAI FINANCIAL: Annual Meetings Set for July 20
-------------------------------------------------
Members and creditors of Akamai Financial Markets (Hong Kong)
Limited will hold their annual meetings on July 20, 2012, at
10:00 a.m., respectively at the office of FTI Consulting
(Hong Kong) Limited, Level 22, The Center, at 99 Queen's Road
Central, Central, in Hong Kong.

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


ARISAIG PARTNERS: Seng and Lo Step Down as Liquidators
------------------------------------------------------
Natalia K M Seng and Susan Y H Lo stepped down as liquidators of
Arisaig Partners (China) Limited on July 6, 2012.


ASIAN PACIFIC: Placed Under Voluntary Wind-Up Proceedings
---------------------------------------------------------
At an extraordinary general meeting held on June 27, 2012,
creditors of Asian Pacific Development Limited resolved to
voluntarily wind up the company's operations.

The company's liquidators are:

         Kennic Lai Hang Lui
         Yuen Tsz Chun Frank
         5th Floor, Ho Lee Commercial Building
         38-44 D'Aguilar Street
         Central, Hong Kong


BLUE SKY: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on June 27, 2012, to
wind up the operations of Blue Sky (Far East) Limited.

The official receiver is Teresa S W Wong.


CANKING INDUSTRIES: Placed Under Voluntary Wind-Up Proceedings
--------------------------------------------------------------
At an extraordinary general meeting held on June 27, 2012,
creditors of Canking Industries Limited resolved to voluntarily
wind up the company's operations.

The company's liquidators are:

         Kennic Lai Hang Lui
         Yuen Tsz Chun Frank
         5th Floor, Ho Lee Commercial Building
         38-44 D'Aguilar Street
         Central, Hong Kong


CHARTER SMART: Court to Hear Wind-Up Petition on Aug. 29
--------------------------------------------------------
A petition to wind up the operations of Charter Smart Limited
will be heard before the High Court of Hong Kong on Aug. 29,
2012, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on June 18, 2012.

The Petitioner's solicitors are:

          Rowland Chow, Chan & Co.
          Unit 2101, 21st Floor
          Malaysia Building
          No. 50 Gloucester Road
          Wanchai, Hong Kong


CHINA INFORMATION: Members' Final General Meeting Set for Aug. 8
----------------------------------------------------------------
Members of China Information Technology Industries Association
Limited will hold their final general meeting on Aug. 8, 2012, at
10:00 a.m., at Room 1505-7, Tower A, Regent Centre, N.T., in
Hong Kong.

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


CHINA PROMISE: Court to Hear Wind-Up Petition on Aug. 22
--------------------------------------------------------
A petition to wind up the operations of China Promise Limited
will be heard before the High Court of Hong Kong on Aug. 22,
2012, at 9:30 a.m.

Bank of Communications Co., Ltd filed the petition against the
company on June 20, 2012.

The Petitioner's solicitors are:

          Li & Partners
          Room 2201-03, 22nd Floor
          World-Wide House
          19 Des Voeux Road
          Central, Hong Kong


CHUNG FU: Creditors' Proofs of Debt Due Aug. 6
----------------------------------------------
Creditors of Chung Fu Hong (Enterprises) Company Limited, which
is in members' voluntary liquidation, are required to file their
proofs of debt by Aug. 6, 2012, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on June 27, 2012.

The company's liquidators are:

         Lee Yuen Han Hope
         Ng Chit Sing
         20/F, Fung House
         No. 19-20 Connaught Road
         Central, Hong Kong


EASTERN LINK: Creditors' Proofs of Debt Due Aug. 2
--------------------------------------------------
Creditors of Eastern Link Investment Limited, which is in
liquidation, are required to file their proofs of debt by Aug. 2,
2012, to be included in the company's dividend distribution.

The company's liquidator is:

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


EASYWIN UNIVERSAL: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on June 27, 2012, to
wind up the operations of Easywin Universal Limited.

The official receiver is Teresa S W Wong.


EXPERT LEGAL: Court Enters Wind-Up Order
----------------------------------------
The High Court of Hong Kong entered an order on June 27, 2012, to
wind up the operations of Expert Legal Systems Limited.

The official receiver is Teresa S W Wong.


GLAD ATTAIN: Creditors' Proofs of Debt Due July 23
--------------------------------------------------
Creditors of Glad Attain International Limited, which is in
members' voluntary liquidation, are required to file their proofs
of debt by July 23, 2012, to be included in the company's
dividend distribution.

The company's liquidators are:

          Victor Yat Kit Jong
          Rainier Hok Chung Lam
          22/F, Prince's Building
          10 Chater Road
          Central, Hong Kong


LEHMAN BROTHERS: HKMA Reports Progress of Probe on Minibond Cases
-----------------------------------------------------------------
The Hong Kong Monetary Authority (HKMA) announced that
investigation of over 99% of a total of 21,863 Lehman-Brothers-
related complaint cases received has been completed.  These
include:

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

     * 3,460 cases which have been resolved through the enhanced
       complaint handling procedures required by the settlement
       agreement;

     * 2,520 cases which were closed because insufficient prima
       facie evidence of misconduct was found after assessment or
       no sufficient grounds and evidence were found after
       investigation;

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

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

Investigation work is underway for the remaining 38 cases.

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

                       About Lehman Brothers

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

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

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

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

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

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

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

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

               International Operations Collapse

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

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

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and other
insolvency and bankruptcy proceedings undertaken by its
affiliates.  (http://bankrupt.com/newsstand/or 215/945-700)


LOFTY CIRCLE: Court to Hear Wind-Up Petition on Aug. 22
-------------------------------------------------------
A petition to wind up the operations of Lofty Circle Industrial
Limited will be heard before the High Court of Hong Kong on
Aug. 22, 2012, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on June 18, 2012.

The Petitioner's solicitors are:

          Gallant Y. T. Ho & Co.
          5th Floor, Jardine House
          No. 1 Connaught Place
          Central, Hong Kong


RINGTOYS LIMITED: Court to Hear Wind-Up Petition on Aug. 29
-----------------------------------------------------------
A petition to wind up the operations of Ringtoys Limited will be
heard before the High Court of Hong Kong on Aug. 29, 2012, at
9:30 a.m.

Wilsun (Chemical) Co. Limited filed the petition against the
company on June 21, 2012.

The Petitioner's solicitors are:

          Howell & Co.
          Room 1202A, 12th Floor
          Wing On House
          71 Des Voeux Road
          Central, Hong Kong



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


BALAJI OIL: Poor Financial Performance Cues Fitch to Lower Rating
-----------------------------------------------------------------
Fitch Ratings has downgraded India-based Balaji Oil Industries
Private Limited's National Long-Term rating to 'Fitch B+(ind)'
from 'Fitch BB(ind)'.  The Outlook is Stable.

The downgrade reflects Fitch's expectation that the downward
trend in Balaji's financial performance would continue in the
near term with the changing business environment for palm oil
refiners in India.  Balaji is involved in the refining of crude
palm oil and the sale of refined palm oil, vanaspathi and bakery
shortening.

In financial year ending March 2011 (FY11) Balaji's revenue grew
as expected to INR822.1m (FY10: INR649.1m) due to an increase in
sales volume and the price of the finished products.  However,
EBITDA margins contracted to 2.6% (3.7%) due to commodity market
pressures.  EBITDA interest and bank charges cover (coverage) in
FY11 (2.8x) was around FY10 levels (2.3x).  Financial leverage
(debt/EBITDA) and adjusted financial leverage (including a
corporate guarantee to an associate company) increased to 1.5x
from 0.8x and 2.4x from 0.8x, respectively. Debt levels increased
to INR32.7m from INR19.8m.  Unaudited results for H1FY12 indicate
revenue of INR386.9m, EBITDA margin of 1.3%, coverage of 1.4x,
leverage of 5.9x and adjusted leverage of 7.6x.

Fitch notes that importing refined palm oil in India has become
more viable than importing crude palm oil, as the Indonesian
government has revised the export duty structure on palm oil in
favour of Indonesian refiners from September 2011.  This is
likely to put more pressure on Balaji's profit margins and
continue to keep financial leverage elevated.  Balaji has also
exhibited a tight liquidity position as shown by its use of ad
hoc cash credit limits over the past one year till date but with
sanctions in place.

Fitch expects Balaji to realise visibility of profits and
stability of margins in the long-term through its backward
integration plan.  The company is promoting palm seed plantations
through an associate entity, which is expected to yield results
in the next three years.

Positive rating action may result from EBITDA interest and bank
charges cover above 2.0x on a sustained basis.  Conversely,
EBITDA margins below 1.5% on a sustained basis may result in
negative rating action.

Rating actions on Balaji:

  -- INR1.9m term loans: National Long-Term 'Fitch BB(ind)';
     rating withdrawn as the instruments have been fully repaid

  -- INR30m fund-based working capital limits: downgraded to
     National Long-Term 'Fitch B+(ind)' from 'Fitch BB(ind)'

  -- INR305.4m non-fund-based working capital limits (enhanced
     from INR255.4m): downgraded to National Short-Term 'Fitch
     A4(ind)' from 'Fitch A4+(ind)'


B HIMMATLAL: ICRA Assigns '[ICRA]BB-' Rating to INR12cr Loan
------------------------------------------------------------
ICRA has assigned an '[ICRA]BB-' rating to the INR12.00 crore
cash credit facilities of B Himmatlal Agrawal. The long term
rating has been assigned stable outlook. ICRA has also assigned
an '[ICRA]A4' rating to the INR10.00 crore non fund based
facilities of BHA.

                        Amount
   Facilities          (INR Cr)    Ratings
   ----------          ---------   -------
   Cash Credit           12.00     [ICRA]BB- (Stable) assigned

   Non Fund Based        10.00     [ICRA]A4 assigned

The assigned rating derives comfort from the long track record of
promoters in the coal transportation business in Central India,
status as qualified vendor for key clients in the region and
healthy order book providing revenue visibility. ICRA also take
note of favorable demand prospects for the coal transportation
business in the area with sizeable investments being made in
target industry like power, steel & cement plants. The assigned
ratings, however, remain constrained by the small scale of
operations, extended payment cycle of key customers straining
liquidity profile and overall weak capital structure
characterized by high gearing and moderate coverage indicators.
The firm also faces high client and geographic concentration risk
though management has been able to add new clients recently along
with steady stream of repeat orders from existing customers. The
business remains vulnerable to economic cycles with exposure to
capex heavy industries.

B Himmatlal Agrawal was set up as a proprietary concern in 1975
by Late Mr Himmatlal Agrawal and was later converted to
partnership firm in 2006. After Mr. Himmatlal passed away, his
sons Brijesh and Kishor Agrawal look after the operations of the
firm. The firm, based out of Nagpur (Maharashtra), is majorly
engaged coal transportation and coal trading business along with
other contractual works like labor contracting and civil work
contracting.


DEVDOOT COTTON: ICRA Rates INR6cr Cash Credit Limit at 'B+'
-----------------------------------------------------------
A rating of '[ICRA]B+' has been assigned to INR6.00 crore fund-
based cash credit facility of Devdoot Cotton Industries.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Cash Credit Limit       6.00      [ICRA]B+ assigned

The assigned rating is constrained by DCI's modest scale of
operations and weak financial profile as reflected by thin profit
margins following limited value addition, leveraged capital
structure and weak coverage indicators. The rating is further
constrained by vulnerability of profitability to raw material
prices, which are subject to seasonality, crop harvest and
regulatory risks. ICRA also notes that Devdoot Cotton Industries
is a partnership firm and any significant withdrawals from the
capital account would affect its net worth and thereby the
gearing levels.

The rating, however, favorably consider the long experience of
the partners in cotton industry, strategic location of the plant
giving it easy access to high quality raw cotton and favorable
demand outlook for cotton and cotton seeds.

Established in 1996, Devdoot Cotton Industries is engaged in
ginning and pressing operations. The business is owned and
managed by Mr. Paresh Patel and other family members. The firm's
manufacturing facility is located in Amreli, Dist Rajkot. The
firm has 30 ginning machines and 1 pressing machine having a
cumulative processing capacity of 150 TPD of raw cotton.

Recent Results

For the year ended March 31, 2011, the firm reported an operating
income of INR22.48 crore with profit after tax (PAT) of
INR0.52 crore. Further, during FY 2012, the firm reported an
operating income of INR30.00 crore with profit after tax of
INR0.39 crore.


ESHWAR TRUST: ICRA Reaffirms '[ICRA]B-' Rating on INR9.58cr Loan
----------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B-'
outstanding on the INR9.58 crore term loan facilities of Eshwar
Trust.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Term loan facilities     9.58      [ICRA]B- reaffirmed

The reaffirmation of Eshwar Trust's rating takes into account its
nascent stage of operations limiting its ability to attract
higher ranked students resulting in relatively smaller scale of
operations. The Trust's financial profile is stretched,
characterized by high gearing and strained liquidity position
owing to regular debt funded capital expenditure to support its
growth plans. The rating, further takes into account the intense
competition prevalent in the higher education industry and the
presence of established players in and around Coimbatore which
exerts pressure on the Trust to retain qualified and experienced
faculty members. The rating, however, continues to factor in the
favorable demand outlook for higher education in India, the
location advantage enjoyed by the entity, its improving occupancy
levels and the recently concluded successful placements for its
initial batch, which support its growth prospects.

Eshwar Trust was registered in August 2007 with three trustees
and is promoted by Mr. M Ramasamy. The Trust manages Sri Eshwar
College of Engineering at Kondampatti post, Vadasithur (near
Coimbatore, Tamil Nadu), which commenced operations on September
1, 2008. The college currently offers undergraduate courses in
five specializations - Electronics and Communication (ECE),
Electrical and Electronics (EEE), Computer Science (CSE),
Information Technology (IT) and Mechanical (MECH) engineering and
also has commenced offering a postgraduate course in Very Large
Scale Integration (VLSI) Design. The college has a total strength
of 1,236 students and 72 faculty members. The college is approved
by the All India Council for Technical Education (AICTE) and is
affiliated to Anna University, Coimbatore.

Recent Results:

According to un-audited results, the Trust reported a net profit
of INR2.5 crore on an operating income of INR7.9 crore in 2011-
12, as against net profit of INR1.3 crore on an operating income
of INR4.4 crore during 2010-11.


FARADAYS INDUSTRIES: Delays in Loan Payment Cues Junk Ratings
-------------------------------------------------------------
ICRA has assigned an '[ICRA]D' rating to the INR42.00 crores term
loans of Faradays Industries Private Limited.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Term loan                42.00     [ICRA]D

ICRA's rating action factors in instances of delays in debt
servicing. The ratings are also constrained by project risks
including risks of cost and time overruns for its ongoing hotel
project in Chandigarh- the commissioning of the hotel which was
expected by June 2012 has already been delayed by six months.
Further, the project once operational would be subject to risks
arising out of the cyclical and seasonal nature of the hotel
industry, highly competitive nature of the Chandigarh hotel
market as well as single property risks. ICRA however takes note
of the project's favorable location with proximity to key
commercial areas of the city; the group's experience in the hotel
industry; favorable progress on the project till date and low
funding risk given that the debt has been tied up and a
substantial part of the equity has been infused.

Going forward, the company's ability to get the balance equity in
a timely manner; implement the project as per plans, within
scheduled costs and time; and command healthy ARRs and
occupancies to maintain its profitability in view of significant
room addition expected in the region, would be the key rating
sensitivities.

                      About Faradays Industries

Incorporated in 1975, FIPL is a closely-held company constructing
a 60-room four star hotel property at Industrial area in
Chandigarh. The group has vast experience in running hotels in
the city. The property is scheduled to commence operations in
April 2013.


GARG SALES: ICRA Assigns '[ICRA]B+' Rating to INR1.75cr Loans
-------------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to the INR1.75 crores fund
based limits of Garg Sales Corporation. ICRA has also assigned
'[ICRA]A4' rating to INR4.75 Crores non-fund based limits of GSC.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Fund Based Limits-       1.75      [ICRA]B+ assigned
   Cash Credit

   Non-Fund Based Limits-   4.75      [ICRA]A4 assigned
   L.C.

The ratings take into account the highly competitive nature of
the industry characterized by the presence of numerous
unorganized players which has resulted in modest revenues and
profit margins of the firm. The firm's already modest profit
margins are also exposed to foreign exchange fluctuation risk on
the un-hedged portion of the imports. Modest profitability
coupled with high overall debt in relation to the firm's net
worth translates into high gearing and inadequate debt protection
metrics for the firm. Nevertheless, the ratings derive some
comfort from positive demand outlook for GSC's product (timber
logs) and its experienced management.

Garg Sales Corporation, incorporated in year 2000, is engaged in
timber trading business. The firm is promoted by Garg family. The
firm imports hardwood logs from various countries like Malaysia
(majority of total purchases), Ghana and New Zealand. GSC
distributes the sawn timber from its sales offices located in
Nangloi, Delhi (which is relatively sizeable timber market in
northern India), Gurgaon (Haryana) and Gandhidham, Gujarat.


GENUS PAPER: Fitch Withdraws 'B' National Long-Term Rating
----------------------------------------------------------
Fitch Ratings has withdrawn India-based Genus Paper Products
Limited's National Long-Term rating of 'Fitch B(ind)nm'.

The ratings have been withdrawn due to lack of adequate
information.  Fitch will no longer provide ratings or analytical
coverage of GPPL.

Fitch migrated GPPL to the non-monitored category on Jan. 4,
2012.

Fitch has also withdrawn GPPL's bank loan ratings as follows:

  -- INR369.02m term loans: National Long-Term 'Fitch B(ind)nm';
     rating withdrawn

  -- INR259.5m fund-based working capital credit limits: National
     Long-Term 'Fitch B(ind)nm' and National Short-Term 'Fitch
     A4(ind)nm'; ratings withdrawn

  -- INR88m non-fund-based working capital credit limits:
     National Short-Term 'Fitch A4(ind)nm'; rating withdrawn


GROWMORE INT'L: ICRA Reaffirms 'BB' Rating on INR5.19cr Loan
------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB' assigned
to the INR5.19 crore (enhanced from INR5.00 crore) fund based
limits of Growmore International Limited. ICRA has also
reaffirmed the short term rating of '[ICRA]A4' assigned to the
INR9.50 crore (enhanced from INR7.50 crore) non fund based limits
of Growmore International Limited. The outlook for the long term
rating is Stable.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Fund Based Long         5.19       [ICRA]BB(stable) reaffirmed
   term Limits

   Non Fund Based Limits   9.50       [ICRA]A4 reaffirmed

Bank of Baroda Fund Based Long term Limits 5.19 enhanced from
5.00 [ICRA]BB(stable) reaffirmed Non Fund Based Limits 9.50
enhanced from 7.50 [ICRA]A4 reaffirmed

The reaffirmation of ratings reflects Growmore's moderate scale
of operations, strong competitive pressure resulting in low
profit margins; high supplier concentration risk with ~80% of the
total raw leather imports being made from a single supplier -
Vidal Bosch, Spain and the susceptibility of company's
profitability to adverse fluctuations in foreign exchange rates.
The rating is also constrained by the deterioration in the
financial profile of the company characterized by increase in the
gearing of the company to 2.19x as on 31 March, 2012 (gearing of
1.15x as on 31 March, 2011). The rating however derives comfort
from the promoters long experience in the leather trading
business and the significant cost benefits arising from the
company's backward integration into a tannery for its raw
material requirements.

About the Company Growmore International Ltd was established in
1996 as trader of Poy Utherine(PU) coated leather from Spain.
Later on it had set up its own tannery and started manufacturing
leather accessories to export to European countries. In 2005
Growmore International was constituted as a private limited
company. The company at present is a closely held unit owned by
family members. At present it has a capacity of 2.5 lakhs sq foot
of leather per month and around 1.125 lakhs belts per month.
Majority of raw leather required for belts is procured from local
dealers and then in house processing of leather is done to
manufacture leather belts. The company is the sole agent of PU
Leather imported from Vidal Bosch, Spain in India

Recent results:

As per the provisional results for FY2012, the company has
achieved an operating income of INR46.93 crore and a Profit After
Tax of INR0.98 crore as against an operating income of INR35.66
crore and a Profit after Tax of INR0.29 crore in FY2011.


JAGNATH COTTON: ICRA Cuts Rating on INR6cr Loan to '[ICRA]B'
------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR6.00
crore cash credit facility of Jagnath Cotton Ginning & Pressing
Private Limited from '[ICRA]B+' to '[ICRA]B'.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Cash Credit             6.00       [ICRA]B revised

The revision reflects the weakening financial profile of the
company as reflected in the decline in operating income, thin
operating and net margins and highly leveraged capital structure.
The rating also takes note of company's small scale of operations
which limits scale economies. The rating also incorporates lack
of diversification in the product profile and susceptibility of
the cotton prices to seasonality and regulatory risks which
together with the highly competitive industry environment further
exerts pressure on margins. The ratings however continue to
consider the experience of the promoter in the cotton ginning
industry and advantage by virtue of it being located favorably in
Rajkot (Gujarat), giving it easy access to raw cotton.

Established in 2006, Jagnath Cotton Ginning & Pressing Pvt Ltd.
is engaged in the ginning and pressing of raw cotton to produce
cotton seeds and cotton bales. The company commenced commercial
production in January 2007. The factory is located at Rajkot,
Gujarat. The company is equipped with 24 ginning machines and has
an annual installed capacity of 15000 metric tonnes per annum.

Recent Results

For the year ended 31st March 2012, the company reported an
operating income of INR25.62 Crore with profit after tax of
INR0.01 crore.


LA CERA: ICRA Assigns '[ICRA]B+' Rating to INR5.5cr Loans
---------------------------------------------------------
A rating of '[ICRA]B+' has been assigned to INR4.00 crore fund
based cash credit facility and INR1.50 crore term loan facility
of LA Cera Tiles Private Limited.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Cash Credit Limit        4.00      [ICRA]B+ assigned
   Term Loan Limit          1.50      [ICRA]B+ assigned

The ratings assigned takes into account LCTPL's weak financial
profile as reflected by low profitability, high gearing levels
and modest coverage indicators. The ratings are also constrained
by vulnerability of LCTPL's profitability and cash flows to
cyclicality in the real estate industry, which is the main
consuming sector. The ratings are further constrained by highly
competitive business environment on account of presence of
numbers of players in the region.

The ratings however have favorably considered the experience of
the key promoters in the ceramic industry, location advantage
enjoyed by LCTPL giving it easy access to raw material and lower
offtake risks due to the presence of group companies in ceramic
tile manufacturing industry.

LA Cera Tiles Private Limited is a body clay manufacturer with
its plant situated at Dhuva, Wankaner (Morbi), Gujarat. The
company was established in September 2009, while the commercial
operations were commenced in April 2010. LCTPL is managed by
Mr. Dinesh Kavar and other family members. The plant has an
installed capacity to produce 1, 32,000 MTPA of body clay which
is used to manufacture ceramic tiles.


LIFESTYLE SAREES: ICRA Reaffirms 'BB-' Rating on INR15cr Loan
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]BB-' assigned
to the INR15.00 crore fund based limits of Lifestyle Sarees
Private Limited.  The outlook assigned to the long term rating is
'Stable'.

                          Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Long-term Fund Based    15.00     [ICRA]BB-(Stable) Reaffirmed
   Limit-Cash Credit

The rating continues to factor in the company's weak financial
profile characterized by low profitability, highly leveraged
capital structure (gearing of 4.64 times as on March 31, 2012)
and weak debt protection indicators. The rating is also
constrained on account of high competitive intensity in the
textile business, arising from the presence of a large number of
organized and unorganized players and the company's modest scale
of operations with high dependence on job work for processing.

Nevertheless, the rating continues to favorably factor in the
company's well-established clientele, the experience of LSPL's
promoters in the textile industry along with its presence in the
textile hub of Surat which provides advantages in terms of
proximity to its suppliers and processing units.

                          About Lifestyle Sarees

Lifestyle Sarees Private Limited established in 1991 is engaged
in the processing and trading of sarees, and other women's party
wears. The company has its registered office and warehouse in
Surat.

Recent Results:

During the financial year 2010-11, LSPL registered a profit after
tax of INR0.20 crore on an operating income of INR56.58 crore,
while in the year 2011-12 the company registered a profit after
tax of INR0.21 crore on an operating income of INR55.33 crore
(Provisional numbers).


MAGADH INDUSTRIES: Fitch Assigns 'C' Ratings to Two Loan Classes
----------------------------------------------------------------
Fitch Ratings has assigned India-based Magadh Industries Private
Limited a National Long-Term rating of 'Fitch C(ind)'.

The ratings are constrained by regular delays by MIND in
servicing its term loan obligations.  The delays are caused by a
tight liquidity position on account of the working capital
intensive nature of MIND's business.  The company utilised almost
100% of its working capital limits in the 12 months ended June
2012.  However, MIND serviced its debt obligations for June 2012
on time.

A positive rating guideline would be timely debt servicing over
the next two quarters.

As per provisional FY12 (year end March) results, revenue was
around INR1,641m (FY11: INR1,088m) with EBITDA margins being
maintained at FY11 levels of around 5.5%.

MIND manufactures thermo mechanically treated bars at its 125,000
metric tonne per annum facility in Patna (Bihar).  The company
started commercial production in 2008.

Fitch has also assigned ratings to MIND's bank loans as follows:

  -- INR251.3m term loans: National Long-Term 'Fitch C(ind)'
  -- INR320m fund-based limits: National Long-Term 'Fitch C(ind)'


MAGADH IRON: Fitch Assigns 'B-' National Long-Term Rating
---------------------------------------------------------
Fitch Ratings has assigned India-based Magadh Iron Private
Limited a National Long-Term rating of 'Fitch B-(ind)'.  The
Outlook is Stable.  Fitch has also assigned MIRO's INR200m fund-
based limits a 'Fitch B-(ind)' rating.

The ratings are constrained by MIRO's tight liquidity position as
illustrated by its regular 100% utilization of the cash credit
limits and occasional use of additional limits.  The tight
liquidity is a result of the company's high working capital
requirement due to its high cash conversion cycle of over 60 days
in FY12 (year end March).

A positive rating guideline would be a sustained improvement in
liquidity over the next two quarters.

As per provisional FY12 results, revenue was around INR1,207m
(FY11: INR907.4m) with EBITDA margins being maintained around
FY11 levels of 3.5%.  Fitch expects MIRO's cash flow from
operation to have remained negative in FY12 (FY11: negative
INR10.6m), given its consistently high working capital
requirements.

Based in Patna (Bihar), MIRO is a steel and cement trading
company.  The company is a dealer for companies like Steel
Authority of India ('Fitch AAA(ind)'/Stable), Rashtriya Ispat
Nigam Limited ('Fitch AA(ind)'/Stable) and Jaypee Reva Cement.


RAJA HOUSING: Fitch Withdraws 'B' National Long-Term Rating
-----------------------------------------------------------
Fitch Ratings has withdrawn India-based Raja Housing Limited's
'Fitch B(ind)' National Long-Term rating with Stable Outlook.
The agency has also withdrawn the 'Fitch B(ind)' rating on Raja
Housing's INR250m term loan.

The National Long-Term rating has been withdrawn as it is no
longer considered by Fitch to be relevant to its coverage.  The
instrument rating has been withdrawn as the loan has been repaid
in full.

Fitch will no longer provide ratings or analytical coverage of
Raja Housing.


SEVEN ISLANDS: ICRA Assigns '[ICRA]B' Rating to INR60cr Loans
-------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR56.0 crores term-
loan facility and INR4.0 crore fund based facility of Seven
Islands Shipping Limited. The rating was earlier suspended in
January 2012, at [ICRA]C.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Long Term Loan           56.0      [ICRA]B (Assigned)
   Facilities

   Long Term Fund-Based      4.0      [ICRA]B (Assigned)
   Facilities

The rating is constrained by moderate financial risk profile
characterized by weak capital structure, moderate return
indicators due to high capital intensity of the business;
inherent cyclicality in the charter rates and increasingly
competitive business environment. The ability to renew time
charter agreements for the existing ships and sign a new time
charter agreement for the recently acquired large-sized tanker
would be critical to maintain stable cash flows and adequate debt
servicing during the tenure of the debt. The risk is partially
mitigated, as the company has proven track record of operating
tankers on time charter contracts with refining and E&P
companies. ICRA also notes that though the cash flow from
operations has been healthy in the past, the near-term liquidity
position of the company may be tight, given the scheduled
payments of debt availed for acquisition of vessels. Moreover,
the company may further increase its fleet capacity which would
primarily be debt-funded thereby limiting the improvement in the
financial risk profile. The rating however, favorably reflects
the stable revenue stream of SISL, with most of its tanker fleet
operating on time charter basis; competitive cost structure;
stable demand prospects for its coastal shipping operations;
established relations with reputed clients and the long track
record of the promoters in the shipping industry.

Seven Islands Shipping Limited was incorporated on May 2, 2002 as
a private limited company by Capt. Thomas Pinto, Capt. Tony Vaz
and Capt. V Shah who all are Master Mariners from the Indian
shipping fraternity. It was subsequently converted into a public
limited company in March 2003.

The company commenced operations in January 2003 with the
acquisition of its first product tanker. Initially the product
tanker was deployed for import of edible oil from Far East and
was later provided to IOC and BPCL on voyage charter basis for
transportation of lubricant oil, kerosene, etc. After
establishing operational track record of nearly two years the
company was able to win its first time charter contract with ONGC
in July 2005. Since then, the company has steadily increased its
tanker fleet by ploughing back the internal accruals and
leveraging the balance sheet. Currently, it operates with a total
fleet of six tankers.

Recent Results:

During FY 12, the company reported an operating income of
INR78.52 crore and Profit after Tax (PAT) of INR7.17 crore
(provisional numbers).


SUPER STEAM: ICRA Assigns '[ICRA]B+' Rating to INR5.10cr Loans
--------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B+' and a short-
term rating of '[ICRA]A4' to the fund based limits, non-fund
based limits and proposed limits of Super Steam Boiler Engineers
Private Limited aggregating to INR8.00 Cr.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Fund Based Limits        2.00      [ICRA]B+ assigned

   Non-Fund Based Limits    2.90      [ICRA]A4 assigned

   Proposed Limits          3.10      [ICRA]B+/[ICRA]A4 assigned

The ratings are constrained by the weak financial profile of the
company characterized by modest size of operations and high
working capital intensity leading to a weak cash flow position.
Moreover, the company's current order book position also remains
modest at -INR9 Cr. at present. The ratings are further
constrained by the exposure of the company's operations to the
performance of the end-user industries, stiff competition from
other established players and exposure of the company's
profitability to movement in raw material prices as a large
proportion of orders are fixed price in nature.

The ratings however favorably take into account the company's
long operating track record and its established position in
boiler manufacturing business and its established relationships
with customers leading to a healthy proportion of repeat orders.

Incorporated in 1978, Super Steam Boiler Engineers Pvt. Ltd. is
involved in manufacturing of various kinds of boilers ranging
from water tube steam boilers based on bagasse, agro waste, coal
to multi-fuel boilers with boiler capacity varying from 1 TPH to
100 TPH. SSBEPL was initially involved in repairing of boilers
after which it started manufacturing boilers and has been
involved in the same for about two decades. The company currently
manufactures the drums in-house whereas the other parts are
bought from the suppliers. The company also takes contracts for
erection and assembly of the boilers on site and is also involved
in modification of existing boilers to increase capacity and
efficiency.

For FY 2012, the company has reported Profit After Tax (PAT) of
INR0.65 crore on an operating income of INR23.13 crore
(provisional).


TATA POWER: S&P Affirms LT Corporate Credit Rating at 'BB-'
-----------------------------------------------------------
Standard & Poor's Ratings Services had revised its outlook on
India-based power utility Tata Power Co. Ltd. to negative from
stable.

"At the same time, we affirmed our 'BB-' long-term corporate
credit rating on Tata Power and our 'BB-' issue rating on the
company's senior unsecured notes," S&P said.

"The outlook revision reflects our expectation that Tata Power's
cash flow and financial risk profile could deteriorate over the
next six to nine months because the company has breached a debt-
to-equity ratio covenant on loans to its Mundra project," said
Standard & Poor's credit analyst Rajiv Vishwanathan.

"The availability of loans to the project, which Tata Power's
100%-owned subsidiary Coastal Gujarat Pvt. Ltd. controls, could
therefore be limited," S&P said.

The outcome of Tata Power's negotiations with lenders on the
technical breach in the loan covenant is yet to be finalized. In
the absence of the waivers, CGPL will not be able to avail of the
loan facility once its drawdown reaches the currently approved
level of 83% of the project facility.

"Nevertheless, we understand that current disbursements from
project facilities have not been curtailed. In our view, Tata
Power is likely to receive waivers from lenders to the project,"
S&P said.

Tata Power has booked an impairment in CGPL assets resulting from
a sharp depreciation of the Indian rupee against the U.S. dollar
over the past 12 months.

The currency depreciation has also increased CGPL's foreign
currency debt.

The reduction in CGPL's equity and its higher debt resulted in
the breach of the debt-to-equity ratio covenant.

"We may lower the rating on Tata Power if: (1) the company is
unable to secure a waiver from its lenders on the breach of
covenant; or (2) an increase in expenditures due to the Mundra
project or otherwise substantially weakens Tata Power's financial
risk profile. A ratio of funds from operations to adjusted debt
of less than 10% on a sustainable basis would indicate such
deterioration," S&P said.

"We may revise the outlook to stable if Tata Power: (1) secures
the necessary waiver, and construction at the Mundra project
continues as planned and within budget; (2) faces no material
deterioration in its business and sustainably maintains its
financial risk profile, such that its ratio of funds from
operations to adjusted debt is 10%-12%," S&P said.

"In our view, limited availability of project loans will increase
Tata Power's project expenses because the company is likely to
fund the construction of the remaining units of the Mundra power
plant," said Mr. Vishwanathan.

"This also increases the uncertainty over the timing of
commissioning of some units of the power project."  The Mundra
project also exposes Tata Power to a risk that coal prices could
increase because the company can only partially pass through fuel
costs to customers.

Tata Power's stakes in coal companies provide a natural hedge to
higher coal prices and support its cash flows. Nevertheless, the
hedge does not fully eliminate the company's exposure to coal
price volatility.

Tata Power is negotiating with bank lenders a mechanism to
include the cash flows from the coal companies in the calculation
of financial covenants for the Mundra project.


UV BOARDS: ICRA Reaffirms '[ICRA]BB' Rating on INR5.82cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the '[ICRA]BB' rating outstanding on the
INR5.82 crore term loan and long-term fund-based facilities of UV
Boards Limited; the outlook on the rating is Stable. ICRA has
also reaffirmed the '[ICRA]A4' rating outstanding on the INR8.1
crore short-term non-fund based facilities of UV Boards.

                        Amount
   Facilities          (INR Cr)   Ratings
   ----------          ---------  -------
   Term Loans            0.82     [ICRA]BB(stable) reaffirmed

   Long Term, fund       5.00     [ICRA]BB(stable) reaffirmed
   based facilities

   Short term, non-fund  8.10     [ICRA]A4 reaffirmed
   based facilities

The reaffirmation of the ratings take into consideration the
favorable demand prospects for the wooden panel products industry
in India due to the positive outlook for the end-user sectors,
the marketing of products under the "Uniply" brand aiding
revenues and margins due to premium pricing and the long track
record of the promoters in the industry. The ratings are
constrained by the modest scale of operations of the company,
coupled with the lack of backward integration; the highly
competitive and fragmented industry structure leading to pressure
on margins as well as the vulnerability of the sector to economic
cyclicality, leading to volatility of margins. The government
regulations on logging have led to the unavailability of timber
in the local market, thereby necessitating the import of timber
and exposing the company to foreign exchange fluctuations. The
financial risk profile of the company is characterized by low
profitability due to lack of backward integration, modest gearing
levels and moderate working capital intensity.

UV Boards Limited was incorporated as M/s Paro Leasing & Finance
Ltd. in December 1988 and began operations in January 1989. The
company was incorporated as a non-banking finance company (NBFC)
with the objective of carrying on financial hire-purchase and
leasing activities. The company had accumulated losses and
subsequently surrendered the NBFC certificate, changed its
objectives and began the business of manufacturing, trading,
importing and exporting plywood, veneers and allied products in
2005. M/s UV Boards Limited and M/s Scorpio Laminates Private
Limited, which were then group companies of Uniply Industries
Limited, merged with Paro Leasing and Finance Ltd. and the merged
entity became UV Boards Limited with effect from March 2007. The
company is currently listed in the Bombay Stock Exchange.

Recent Results

In FY 12 the company reported a net profit of INR0.8 Cr on a
turnover of INR49.1 Cr.


V.B. HYDRO: ICRA Rates INR33cr Loan at '[ICRA]B'
------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR33.00 crores long
term fund based limits of V.B. Hydro Projects Limited.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Proposed fund based     33.00      [ICRA]B (Assigned)
   Limits

ICRA's rating action factors in execution risks, including risks
of time and cost overruns that are typical of green-field
projects especially hydro electric projects being implemented in
challenging terrains. Further, the project once operational will
also be subject to hydrology risks given that there are no deemed
generation clauses. The profitability of the project will be
dependent on the company's ability to maintain project costs and
operating parameters within the designed levels given that the
tariffs are fixed at INR2.95 per unit and the costs are not a
pass-through. Moreover, offtake risks are also high given that
PPA has not been signed.

These weaknesses are however partially offset by limited demand
risks given the competitive tariffs and energy deficit status in
northern India. The credit profile also favorably factors in the
receipt of project clearances and the project's eligibility for
capital subsidy from Ministry of New and Renewable Energy (MNRE)
and sale of carbon emission reduction (CER's) certificates. Going
forward, the ability of the company to achieve the financial
closure, sign a firm PPA, complete the project with minimal cost
and time overruns, meet the designed performance parameters and
availability of adequate water in the catchment area will be the
key rating drivers.

                         About V.B Hydro

V.B Hydro Projects has been promoted by Mr. Varinder Dogra and
his family members. Mr.Varinder Dogra has been engaged in field
of hydro projects since 1995. He has successfully commissioned
one hydro project in 2005 named Manjhal HEP of capacity 1 MW. The
group comprises of 2 more companies-Varinder Dogra Power Projects
Pvt Ltd which runs the above mentioned Manjhal project and other
one is Super Hydro Generation Consultancy Services Limited which
provides technical consultancy to various power projects across
India. The group's core team mainly includes ex-employees of
state electricity boards, members of Institute of Engineers of
India etc.and has wide experience in implementing power projects
across India


ZAZSONS EXPORTS: ICRA Assigns '[ICRA]C' Rating to INR35.2cr Loan
----------------------------------------------------------------
ICRA has assigned an '[ICRA]C' rating to the INR35.20 crores fund
based limits and '[ICRA]A4' rating to 2.00 crores non fund based
limits of Zazsons Exports Limited.

                          Amount
   Facilities            (INR Cr)     Ratings
   ----------            ---------    -------
   Fund Based Limits       35.20      [ICRA]C (Assigned)

   Non fund based limits    2.00      [ICRA]A4 (Assigned)

The ratings reflect ZEL's below-average financial risk profile,
characterized by high debt funding of its substantial capital
expenditure (capex) and working capital requirements; and large
debt obligations maturing in the near term. The ratings also take
into account the intensely competitive nature of the footwear
industry, with presence of numerous organized and unorganized
players, which has resulted in modest margins of the company.
Given the fundamental dynamics of the industry, the profitability
is unlikely to change in the medium term. Weak profitability,
large working capital blockage and substantial debt funding of
operations have resulted in weak debt protection indicators and
liquidity. ZEL's financial risk profile is also impacted by
substantial guarantees given to a group company namely Z Square
Shopping Mall Pvt Ltd, which is already witnessing some delays in
debt repayments. The ratings however derive comfort to some
extent by ZEL's experienced management and its established
relations with key customers in the past.

Going forward, the company's ability to increase its scale of
operations while maintaining adequate margins would form the key
rating sensitivities.

                        About Zazsons Exports

ZEL was incorporated in 1985 and is promoted by Mr. Tahir
Hussain. The Kanpur-based Hussain family has been engaged in the
leather business since 1862. Commencing operations from trading
of raw hides, the promoters' viz. Mr. Zakir Hussain, Mr. Afzal
Hussain, and Mr. Zahid Hussain founded the ZAZ group. In 1964,
the group established its first tannery, Zaz Tannery. Currently,
the group has the capacity to manufacture finished leather of 2
million square feet per month, shoe uppers of 14,400,000 pairs
per annum, saddles and bridles of 36000 pieces per annum, and
finished footwear of around 720,000 pairs per annum. In 2005, the
promoters split the group and currently Mr. Tahir Hussain and his
family owns ZEL.

Recent Results:

The firm reported a net profit of INR0.59 crores on an operating
income of INR61.70 crores in FY11 as against net profit of
INR0.14 crores on an operating income of INR58.45 crores in FY10.



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


KAWASAN INDUSTRI: S&P Assigns 'B+' Long-Term Corp. Credit Rating
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B+' long-term
corporate credit rating and 'axBB' ASEAN scale rating to
Indonesia-based industrial estate developer PT Kawasan Industri
Jababeka Tbk.  The outlook is stable.

"At the same time, we assigned our 'B+' issue rating on the
proposed issue of senior unsecured notes by Jababeka
International B.V. KIJA and some of its subsidiaries guarantee
the notes. The issue rating is subject to our review of the final
issuance documentation," S&P said.

"The rating on KIJA reflects the company's volatile cash flows,
large capital expenditure for greenfield infrastructure projects,
and high project  concentration risk," said Standard & Poor's
credit analyst Kah Ling Chan. "KIJA's track record in developing
and managing large industrial estates, its large low-cost land
bank, and increasing recurring income temper these weaknesses."

"We assess KIJA's business risk profile as "weak" and its
financial risk profile as "aggressive."

"The company's liquidity is "adequate," as defined in our
criteria," S&P said.

KIJA's cash flows are volatile because land sales are sensitive
to economic cycles and depend on foreign direct investments. The
company's single project risk and keen competition from other
industrial estates in Cikarang exacerbate the volatility.

More than 50% of KIJA's revenues will continue to come from land
sales at its Jababeka industrial estate in Cikarang near Jakarta
for the next three to five years. The company's large low-cost
land bank should underpin its good profitability and sustain its
development pipeline for the  next five years.

"We expect KIJA's project concentration to remain high, even
though the company has started to develop new projects. While the
company's recurring income is modest, we expect it to grow
meaningfully once the company's Bekasi power plant is
commissioned. We believe the plant will benefit from captive
users and a shortage of power generation capacity in its
industrial estate," S&P said.

"We expect the plant to ramp up to full capacity from early 2013.
KIJA develops and manages the matured Jababeka industrial estate
in Cikarang. The company's core business is the sale of
industrial land. It also provides ancillary estate management
services," S&P said.

"The stable outlook reflects our expectation that KIJA will
benefit from steady land sales at good margins and that the
company will fully commission its power plant in the next 12
months," said Ms. Chan.

The outlook also factors in the proposed bond and a refinance of
a loan for the Bekasi power project.

"We could lower the rating if: (1) KIJA deviates from its core
business and strategy; (2) the company makes larger-than-expected
debt-funded acquisitions; (3) the commissioning of the Bekasi
power plant is materially delayed beyond  our expectations; or
(4) land sales are significantly weaker than we expect,  such
that the debt-to-EBITDA ratio is more than 3.5x. Rating upside is
limited in the next 12 months. We may raise the rating if KIJA
demonstrates consistent good financial management, executes its
strategy well, and operates larger and more diverse assets. We
could also upgrade the company if its recurring income increases
meaningfully and new development projects reduce its dependence
on the Jababeka industrial estate," S&P said.



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


JLOC XXVIII: Fitch Affirms Rating on Two TBI Note Classes
---------------------------------------------------------
Fitch Ratings has affirmed the ratings of JLOC XXVIII Senior
Trust's trust beneficiary interests (TBIs) and mezzanine
specified bonds (mezzanine SB) due October 2012.  The agency has
also removed the class C TBIs from Rating Watch Negative (RWN).
The transaction is a Japanese multi-borrower type CMBS
securitisation.  The details of the rating actions are as
follows:

JLOC XXVIII Senior Trust:

  -- JPY4.3bn* Class C TBIs affirmed at 'Bsf'; off RWN; Outlook
     Stable
  -- JPY7.2bn* Class D TBIs affirmed at 'Csf'; Recovery Estimate
     20%

JLOC XXVIII mezzanine SB:

  -- JPY3.6bn* TMK1 mezzanine SB: affirmed at 'Csf'; Recovery
     Estimate 0%

*as of July 9, 2012

The affirmation and removal of RWN on the class C TBIs reflect
Fitch's view that the TBIs will be redeemed in full at the legal
final maturity in October 2012.  Sales activity of the underlying
properties by the asset manager has progressed well and the
average sales price since the last rating action in February 2012
has exceeded Fitch's expectation.  Furthermore, most of the
remaining properties have prospective buyers and Fitch expects
these to be sold prior to the legal final maturity and the
proceeds of these sales will be sufficient to redeem the class C
TBIs in full.

The affirmation of 'Csf' ratings on the class D TBIs and the
mezzanine SB reflects Fitch's view that principal loss for these
is inevitable.

The class B TBIs were redeemed in full on the payment date in
April 2012.

This transaction was originally backed by specified bonds issued
by two Tokutei Mokuteki Kaisha entities, which were backed by 567
real estate properties.  According to the monthly report received
on 4 July 2012, the transaction is now secured by 28 properties
and sales proceeds from sold properties.


* JAPAN: Corporate bankruptcies Fall 3.2% in Jan-June 2012
----------------------------------------------------------
Kyodo News, citing Tokyo Shoko Research, reports that the number
of corporate bankruptcies in the first six months fell to 6,311,
down 3.2% from the same period in 2011.

The credit research agency said Monday that the debt left by the
failed businesses rose 20.5% to JPY2.77 trillion for the first
rise in a first half in three years.

According to Kyodo, the agency said the amount of debt was
inflated by the collapse of Elpida Memory Inc. in February, which
owed JPY448 billion in Japan's biggest bankruptcy ever involving
a manufacturer.

Kyodo relates that the research company said it was the third
consecutive decline in business failures with at least
JPY10 million in debt for the January-June half and was due
mainly to government financial aid programs.

Kyodo discloses that the number of big corporate failures
involving debt of more than JPY1 billion fell 15.4% to a record
low 203 in the past 20 years, and business failures involving
debts of less than JPY100 million accounted for 70.2% of the
total.

Business failures linked to the March 2011 earthquake and tsunami
totaled 272 in the six-month period, or 45.3 on the monthly
average, the report adds.

In June alone, Kyodo notes, the number of corporate bankruptcies
nationwide declined 16.3% from a year earlier to 975, falling
below 1,000 for the first time for the month in 21 years.



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


H & I NIAGA: Suit Vs. Bank Negara Put On Hold Amid Liquidation
--------------------------------------------------------------
Ida Lim at The Malaysia Insider reports that H & I Niaga Sdn
Bhd's MYR131.9 million lawsuit against Bank Negara Malaysia (BNM)
for wrongfully terminating a MYR320 million construction contract
and misrepresentation has been put on hold due to the winding up
of the company.

In the lawsuit filed by H & I Niaga on June 20, the firm had
claimed RM131.9 million in compensation.  But a court decision on
July 4 to allow Affin Bank to wind up the company for a debt of
MYR12.8 million has caused H & I's case to be stayed.

"It is now up to the liquidator to decide whether to pursue
further action against Bank Negara," the report quotes DAP's Tony
Pua as saying.

The Malaysia Insider relates that the two former directors of the
now wound-up H&I Niaga stressed the importance of a settlement
with Bank Negara, saying that the company still owed
MYR23.1 million to 123 subcontractors and suppliers.

The Malaysia Insider's sources confirmed that Affin Bank had
filed the winding-up application before the lawsuit against BNM
was filed, but said that the MYR12.8 million debt was actually
owed by its subcontractor.

H&I Niaga had won a MYR320 million contract in September 2005 to
build the central bank a financial services resources centre,
which had been scheduled for completion by August 2007.

Malaysia-based H & I Niaga Sdn Bhd is primarily engaged in
general construction and special trade construction for buildings
and civil engineering, building installation and building
completion.



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


HARTLAND CONSTRUCTION: Liquidator to Probe Firm's Collapse
----------------------------------------------------------
Celia Crosbie at Mountain Scene reports that the liquidator of
Hartland Construction Limited says he'll be investigating the
debt build-up of the failed firm.

Hartland Construction, which held the local GJ Gardner franchise,
was placed into liquidation at a watershed meeting last month.
The firm owes about 80 unsecured creditors NZ$1.5 million.

According to the report, Auckland-based insolvency expert Bryan
Williams -- who was originally appointed as administrator but has
since become liquidator -- told creditors he no longer
recommended the alternative of the company going into voluntary
administration in an effort to continue trading and pay unsecured
creditors.

"The reason for this opinion is that it is unlikely that Hartland
has the ability, in the current and near-term economic
environment, to commercially perform in a manner that will
produce a riskless outcome for the creditors at a level that
will justify their continued involvement," Mountain Scene quotes
Mr. Williams as saying in his first report.

"It's my belief that the creditors stand to have better potential
for an outcome in investigating the governance of the company's
affairs than hoping for a dividend to be forthcoming from any
future trading activity," Mr. Williams told Mountain Scene.

Hartland Construction Limited is a Queenstown building company.


YARROWS GROUP: Creditors May File Class Action Suit
---------------------------------------------------
John Anthony at stuff.co.nz reports that creditors left out of
pocket from the Yarrows Group fallout could mount a legal case,
says an independent group investigating why the Manaia-based
bakery business collapsed.

The New Zealand Legacy Foundation 2012 spokesman Myron
Manuirirangi said the group based its claim on its examination of
financial accounts for the Yarrows Group, according to the
report.

Stuff.co.nz relates that the group believed creditors could take
a class action to bring a claim against a "directors and officers
liability and company reimbursement" insurance policy held by
Yarrows (The Bakers).

The report says the foundation, established earlier this year,
has a group of about 40 business people working to assist
Paul Yarrow in his fight to regain control and ownership of the
Yarrows Group.

According to the report, a website set up by the group said an
evaluation of published but unaudited financial statements of the
various companies and entities in the Yarrows Group showed
discrepancies from the non-consolidation of Southern Cross
Investments Ltd and Yarrows Traditional Foods (1923) Ltd into the
overall Yarrows Group accounts for 2004 to 2008.

Yarrows (The Bakers) included operations of the factory in Manaia
and group finance and administration. It was placed in
liquidation in December last year, the report notes.

Yarrows Traditional Foods, now in receivership, is a holding
company for about 90% of the shares in Yarrows (The Bakers),
stuff.co.nz discloses.

Southern Cross Investments Ltd is the parent company of the
entity owning land, buildings and certain intellectual property
of the Yarrows Group.

stuff.co.nz relates that the New Zealand Legacy Foundation said a
"best estimate" consolidation of the two entities could form a
legal basis for Yarrows' creditors to regain lost money.

Creditors were being asked to register their interest through the
website to form a class action against the directors and officers
of Yarrows (The Bakers), the report relays.

Once a class of creditors was established a team of lawyers would
be elected to lead the effort, stuff.co.nz notes.

Stuff.co.nz adds that Mr. Manuirirangi said it had not been
decided how this would be funded.

There was a good opportunity for creditors' losses to be
reimbursed from the insurance policy, Mr. Manuirirangi, as cited
by stuff.co.nz, said.

It was not known if the receivers BDO were aware of the policy,
the report adds.

As reported in the Troubled Company Reporter-Asia Pacific on
March 19, 2012, NBR Online said New Zealand First leader Winston
Peters, speaking under parliamentary privilege, in March this
year claimed Westpac Bank conspired with Yarrows directors and
insolvency firm BDO to wrest control from owner Paul Yarrow,
leading to the receivership.

                     About Yarrows (The Bakers)

Founded in 1923, Yarrows (The Bakers) Limited is one of the last
independent bakeries in New Zealand.  It began exporting in the
late 1970s and in 1996, won the contract for the Subway sandwich
chain throughout Australasia.  It produces 30,000 frozen dough
rolls a week for Subway in New Zealand, Australia, and parts of
Asia.

Yarrows (The Bakers) and two associated companies went into
receivership in May 2011 when the company's directors could not
reach agreement on a restructure proposal that involved selling
its Australian business.  At the time of receivership, Yarrows
had total liabilities of NZ$72.8 million, including
NZ$55.2 million owed to Westpac.



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


AIRASIA PTE: Members' Final Meeting Set for Aug. 3
--------------------------------------------------
Members of Airasia Pte Ltd will hold their final meeting on
Aug. 3, 2012, at 11:00 a.m., at 25 International Business Park,
#04-22/26 German Centre, in Singapore 609916.

At the meeting, Steven Tan Chee Chuan, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


APLHA RIM: Creditors' Proofs of Debt Due Aug. 6
-----------------------------------------------
Creditors of Aplha Rim Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by Aug. 6,
2012, to be included in the company's dividend distribution.

The company's liquidators are:

          Chee Yoh Chuang
          Abuthahir Abdul Gafoor
          c/o 8 Wilkie Road
          #03-08 Wilkie Edge
          Singapore 228095


ASIA GHANI: Creditors Get 100% Recovery on Claims
-------------------------------------------------
Asia Ghani Marine Pte Ltd declared the first and final dividend
to its preferential creditors on July 9, 2012.

The company paid 100% to the received claims.

The company's liquidator is:

         Goh Ngiap Suan
         336 Smith Street
         #06-308 New Bridge Centre
         Singapore 050336


CUSHING PTE: Creditors' Proofs of Debt Due Aug. 6
-------------------------------------------------
Creditors of Cushing Pte Ltd, which is in members' voluntary
liquidation, are required to file their proofs of debt by Aug. 6,
2012, to be included in the company's dividend distribution.

The company's liquidators are:

          Chee Yoh Chuang
          Abuthahir Abdul Gafoor
          c/o 8 Wilkie Road
          #03-08 Wilkie Edge
          Singapore 228095


EASTERN OCEAN: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Singapore entered an order on June 29, 2012, to
wind up the operations of Eastern Ocean Line Pte Ltd.

The Shipping Corporation of India Limited filed the petition
against the company.

The company's liquidator is:

         The Official Receiver
         Insolvency & Public Trustee's Office
         45 Maxwell Road #05-11/#06-11
         The URA Centre (East Wing)
         Singapore 069118


EASTMARCOSSE PTE: Court Enters Wind-Up Order
--------------------------------------------
The High Court of Singapore entered an order on June 29, 2012, to
wind up the operations of Eastmarcosse Pte Ltd.

The Hongkong and Shanghai Banking Corporation Limited filed the
petition against the company.

The company's liquidators are:

         Sim Guan Seng
         Goh Yeow Kiang Victor
         care of M/s Baker Tilly TFW LLP
         15 Beach Road
         #03-10 Beach Centre
         Singapore 189677


ECON KOREA: Creditors' Proofs of Debt Due Aug. 3
------------------------------------------------
Creditors of Econ Korea Investments Pte Ltd, which is in
creditors' voluntary liquidation, are required to file their
proofs of debt by Aug. 3, 2012, to be included in the company's
dividend distribution.

The company's liquidator is:

          Timothy James Reid
          c/o 8 Robinson Road
          #12-00 ASO Building
          Singapore 048544


GALLEY'S GOURMET: Creditors' Proofs of Debt Due Aug. 6
------------------------------------------------------
Creditors of Galley's Gourmet Pte Ltd, which is in creditors'
voluntary liquidation, are required to file their proofs of debt
by Aug. 6, 2012, to be included in the company's dividend
distribution.

The company's liquidators are:

          Sim Guan Seng
          Khor Boon Hong
          Victor Goh
          C/o Baker Tilly TFW LLP
          15 Beach Road
          #03-10 Beach Centre
          Singapore 189677


HG ASIA: Court to Hear Wind-Up Petition July 20
-----------------------------------------------
A petition to wind up the operations of HG Asia Pte Ltd will be
heard before the High Court of Singapore on July 20, 2012, at
10:00 a.m.

Siong Heng Realty Pte Ltd filed the petition against the company
on June 26, 2010.

The Petitioner's solicitors are:

         AsiaLegal LLC
         8 Robinson Road
         #08-00 ASO Building
         Singapore 048544



=============================
P A P U A  N E W  G U I N E A
=============================


BANK OF SOUTH PACIFIC: S&P Hikes Counterparty Credit Rating to B+
-----------------------------------------------------------------
Standard & Poor's Ratings Services has raised its long-term
counterparty credit rating on Papua New Guinea-based Bank of
South Pacific to 'B+' from 'B'.

The outlook is revised to negative from stable. The short-term
rating is affirmed at 'B'.

The rating upgrade reflects a revision of S&P's assessment of
BSP's business position to "strong" from "adequate", recognizing
the bank's dominant and increasingly important role within the
Papua New Guinean (PNG) financial system.

"In our view, BSP's business stability benefits from the bank's
entrenched importance to PNG's banking system--a position that
has been strengthened by the bank's recent investment and
commitment to building its operational infrastructure, in a move
that we see as unlikely to be replicated by any of the bank's
competitors," S&P said.

"We are of the opinion that BSP's revenues are likely to be more
stable as a result of the investments being made in its retail
banking channels improving revenues from more stable non-interest
income sources," said credit analyst  Nico DeLange.  "The
appetite for aggressive growth is likely to remain subdued
following a series of acquisitions in recent years that are
outside of its home base in PNG; these acquisitions should help
BSP offset a downturn in one part of its business or in its
geography, because of the improved diversity.

"Additionally, the continued investment in BSP's retail banking
channels infrastructure should reduce the impact of direct
competitors within PNG. We view the concentration and
diversification of BSP's business activities as slightly better
than that of its peers, given the bank's retail stronghold, but
note that BSP still has a significant exposure to sovereign risk
in PNG."  Our ratings on BSP reflect the anchor stand-alone
credit profile (SACP) for banks operating only in Papua New
Guinea; plus BSP's "strong" business position, "moderate" capital
and earnings, "moderate" risk position, "average" funding, and
"adequate" liquidity," S&P said.

"The negative outlook reflects the negative outlook on PNG
government, given that BSP and the PNG government ratings are
currently at the same level," said Mr. De Lange. "The alignment
of outlooks reflects our view that banks are affected by many of
the same economic factors that cause sovereign stress.

This sovereign stress can cause, among other things, a sharp
deterioration in a bank's asset values, more expensive foreign
currency liquidity, shortages in local currency liquidity, a
harsher regulatory environment, mandated changes in credit terms,
higher taxes, and declining public services.

"These developments can exacerbate domestic economic conditions
and increase bad debts for banks. Under our criteria, a bank
needs to meet a number of conditions to have ratings higher than
the foreign currency ratings on the country of domicile. We are
of the opinion that BSP does not meet those conditions. In
particular, we note that BSP has a material exposure to the
sovereign and it does not maintain a net external asset
position," S&P said.

The rating could be lowered if the sovereign rating of PNG
government is lowered. In addition, the rating on BSP could also
be lowered if the bank's asset-quality experience deteriorated
significantly, or if significant operational risk events emerged
and resulted in a fall in the bank's projected RAC ratio to a
level below 3%. Potential liquidity challenges as a result of
sovereign or economic difficulties could also put the rating
under pressure, resulting in a reassessment of our funding and
liquidity score on BSP to "moderate" from "adequate".

Conversely the rating would likely be revised to stable if the
outlook on the rating of PNG government is revised to stable.



=============
V I E T N A M
=============


SAIGON-HANOI COMM'L: Moody's Confirms 'B2' Ratings; Outlook Neg.
----------------------------------------------------------------
Moody's Investors Service has confirmed Saigon-Hanoi Commercial
Joint Stock Bank's (SHB) B2 deposit and issuer ratings, as well
as its standalone financial strength of E+, which equates to b2
on a long-term scale. At the same time, Moody's revised the
outlook to negative from under review for a possible downgrade.
This concludes the review for downgrade initiated by Moody's on
May 11, 2012. The Not-Prime short-term ratings were not subject
to the aforementioned review and remains unchanged.

Ratings Rationale

Following SHB's recent acquisition of Hanoi Building Commercial
Joint Stock Bank (Habubank: not rated), the confirmation of SHB's
ratings reflects Moody's view on (i) the merged entity's plans to
clean up and make provisions for its substantial bad debt
exposures especially to the troubled Vietnam Shipbuilding
Industry Group (Vinashin); (ii) the negligible cash outlay for
the acquisition as the purchase consideration will be carried out
through a share swap agreement; and (iii) the improvement of
funding observed, year-to-date, on the combined entity.

At the same time, the revision of the outlook to negative from
under review for a possible downgrade reflects Moody's view of
the continued uncertainties surrounding the bank's merger with
Habubank, particularly as regards to the future direction of
asset quality of the merged entity and the sufficiency of profits
to absorb the significant provision requirements resulting from
Habubank's comparatively weaker loan book. Even though the
current rating levels incorporate a degree of expected further
deterioration in the SHB's financial metrics and operating
environment, assessing the extent to which credit metrics could
deteriorate more than expected post-merger requires a longer
monitoring period of between 12 to 18 months.

Moody's said that the negative outlook was warranted principally
by the weak credit profile of Habubank and the materiality of the
transaction relative to SHB's size, creating downward pressure on
the credit quality of the bank and, ultimately, on the merged
entity compared to the relatively healthier profile of SHB pre-
merger.

SHB's reported non-performing loan (NPL) ratio was 2.2% at end-
2011, while Habubank's NPL ratio was 4.4% at the same year-end.
In addition, if loans to the troubled Vinashin were included,
Habubank's NPL ratio would be 16.7%. But Moody's understands the
risks to the merged entity's exposure to Vinashin will be
mitigated to some extent with full provisioning to be made over a
five-year period. In addition, all Vinashin loans are backed by
collateral, portions of it deemed recoverable over the next 6 to
12 months.

However, it remains to be seen if the merged entity will be able
to generate sufficient net income in 2012 to cover the
anticipated worst-case scenario provisions of around VND1.8
trillion, which include provisions for Vinashin exposures
(amortised over five years), and other distressed loans. Already,
Habubank's profitability metrics are weaker than that of SHB,
with an estimated net income-to-average risk weighted assets
ratio of less than 1%, while that for SHB was 2.3% for 2011.

On the capital front, Moody's understands the purchase
consideration for Habubank will be carried out through a share
swap agreement, whereby shares will be swapped at a rate under
which one share of Habubank will be converted into 0.75 share of
SHB. SHB will issue 405 million new shares for this purchase at
par value of VND10,000 per share amounting to additional Tier 1
capital of VND4.05 trillion in 2012. The combined Tier 1 capital
ratio for the merged bank is estimated to be around 13.3%,
unchanged from the 13.2% for SHB at end-2011.

Separately, the liquidity ratio of Habubank is substantially
weaker than that of SHB, with a gross customer loans-to-gross
customer deposits ratio of 120% at end-2011 for Habubank,
compared with that of 84% for SHB at year-end. Moody's notes
that, based on unaudited 1Q2012 financials, these ratios have
somewhat stabilized to 90% and 75%, partially due to the
numerator effect of slower loan growth registered year-to-date.

Besides the distressed credit profile of the entity with which it
is planning to merge, Moody's anticipates that SHB's management
will be challenged by the magnitude of the transaction and the
limited synergies. Habubank is equivalent to no less than 58% of
SHB's total assets. The 12 to 18 month outlook period of SHB's
ratings will evaluate the financial impact of this relatively
large transaction on the bank's creditworthiness.

What Could Move The Ratings Up/Down

An upgrade is unlikely in the near term, given the negative
outlook. However, Moody's says that in the medium term, a change
in outlook back to stable could develop following (i) an
improvement in the merged bank's funding profile such that its
loan-to-deposit ratio falls below 90%; (ii) an improvement in the
merged entity's post-provision income levels such that its net
income-to-average risk weighted assets is above 2%; and/or (iii)
continued growth in its business base and franchise post-merger
without compromising its risk profile.

The ratings could be lowered if there is (i) a significant
deterioration of the combined entity's liquidity position such
that its loan-to-deposit ratio rises above 120%; (ii) continued
high economic NPLs, which are not adequately resolved, such that
credit losses exceed current provisioning assumptions; and if NPL
ratios for the combined entity rise above 5%; (iii) insufficient
profits generated by the merged entity -- to take into account
provisioning for economic NPLs -- such that net losses are
incurred for the year; and (iv) a greater-than-expected
deterioration of the economy that would exert additional pressure
on the merged bank's capital such that Tier 1 ratios falls below
8%.

Principal Methodology

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in June
2012.

Headquartered in Hanoi, Vietnam, SHB reported consolidated total
assets of VND71 trillion as of December 2011.

Headquartered in Hanoi, Vietnam, Habubank reported consolidated
total assets of VND41 trillion as of December 2011.



===============
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 ***