TCRAP_Public/121101.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

          Thursday, November 1, 2012, Vol. 15, No. 218

                            Headlines


A U S T R A L I A

BANKSIA FINANCIAL: Receivers Appointed to Cherry Fund
BD MOBILE: Launches AUD3MM Claim Vs. Vodafone After Liquidation
RESIMAC 2012-1NC: S&P Assigns 'B' Rating to Class F RMBS
ST HILLIERS: Subcontractors May Recoup Money as DOCA Okayed


H O N G  K O N G

3D-GOLD JEWELLERY: Contributories, Creditors to Meet on Nov. 20
CTC GARMENT: Court Enters Wind-Up Order
DAWN GLOVES: Court to Hear Wind-Up Petition on Dec. 19
FAIRTOL INDUSTRIAL: Court to Hear Wind-Up Petition on Nov. 28
GLAD ATTAIN: Creditors Get 100% Recovery on Claims

HENCH (CHINA): Court to Hear Wind-Up Petition on Nov. 14
HIGASHIGI INDUSTRIAL: Court to Hear Wind-Up Petition on Dec. 12
JOINDIN (CHINA): Court Enters Wind-Up Order
KWAN WAI: Court Enters Wind-Up Order
LAND ASIA: Court Enters Wind-Up Order

MEGA PROJECTS: Court Enters Wind-Up Order
NOVEL ADVANCE: Court to Hear Wind-Up Petition on Dec. 12
POLYGLORY (HK): Creditors Get 7.344% Recovery on Claims
REGAL LINK: Court to Hear Wind-Up Petition on Nov. 28
SERLIN LIMITED: Creditors Get 16.7814% Recovery on Claims

TAKAGI INDUSTRIES: Court Enters Wind-Up Order
THERMOPOWER ELECTRICAL: Court to Hear Wind-Up Petition on Nov. 28
TREASURE ISLAND: Court to Hear Wind-Up Petition on Dec. 5
WATHNE OVERSEAS: Court Enters Wind-Up Order
WIKI EDUCATION: Court to Hear Wind-Up Petition on Nov. 14


I N D I A

BHUWALKA CASTINGS: ICRA Assigns 'BB+' Rating to INR11.27cr Loans
CLAIR ENGINEERS: ICRA Cuts Rating on INR5cr Loan to '[ICRA]BB+'
ISLAND STAR: ICRA Rates INR350cr Term Loan at '[ICRA]B+'
KANHIYA DHALIWAL: ICRA Rates INR10cr Demand Loan at '[ICRA]B'
K. S. R. TEXTILE: ICRA Reaffirms 'B+' Rating on INR29.3cr Loan

MICROPACK LIMITED: ICRA Assigns 'BB+' Rating to INR6.81cr Loans
POLAR STAR: ICRA Reaffirms '[ICRA]BB-' Rating on INR28cr Loans
RAJASTHAN VIKAS: Delays in Loan Payment Cues ICRA Junk Ratings
SHREE RAM: ICRA Assigns '[ICRA]BB-' Rating to INR6.65cr Loans
ST. SHIRDI: ICRA Rates INR24.23cr Term Loans at '[ICRA]BB+'

VAIBHAV JEWELLERS: ICRA Reaffirms 'BB' Rating on INR12cr Loans
VRV TEXTILES: Delay in Loan Payment Cues ICRA Junk Ratings


I N D O N E S I A

SMARTFREN TELECOM: Fitch Junks Rating on IDR603 Billion Bond


N E W  Z E A L A N D

SOUTH CANTERBURY: Trial Call-Over Set For January 25
STRUCTURED FINANCE: To Pay 25% to Some Investors


X X X X X X X X

* Fitch Published Edition of AP Monthly Newsletter


                            - - - - -


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


BANKSIA FINANCIAL: Receivers Appointed to Cherry Fund
-----------------------------------------------------
The Sydney Morning Herald reports that Cherry Fund, an investment
fund linked to the collapsed lender Banksia Financial Group, has
appointed receivers.

Cherry invests in mortgage securities and owes about AUD10
million to investors, the report discloses.

SMH says the secured creditor of Cherry Fund, The Trust Company
Limited, appointed receivers McGrathNicol after the Fund
conducted an urgent review of its forecast cash flows for the
next 12 months.

According to the report, the review found Cherry to be unlikely
to meet the anticipated level of redemption requests by investors
during that period, as a consequence of the decision to appoint a
receiver to Banksia last week.

"We are now reviewing Cherry Financial's business and mortgage
portfolio which we are doing with the support of the executive
team at The Banksia Financial Group," the report quotes Tony
McGrath, from McGrathNicol, as saying.

"We are also working with the executive team at The Banksia
Financial Group to ensure that the group's remaining investment
fund Banksia Mortgage Fund can continue to trade uninterrupted."

SMH relates that the Banksia Financial Group chairman, Peter
Keating, said the Banksia Board was working with McGrathNicol "to
achieve the best possible outcome for our investors, employees
and shareholders".

                     About Banksia Securities

Banksia Securities Limited is a subsidiary of The Banksia
Financial Group Ltd.  TBFG is a privately owned, independent
group of companies operating in the finance sector, largely
operating as a National Financier and Mortgage Fund Manager.

The Trust Company (Nominees) Limited on Oct. 25, 2012, appointed
Tony McGrath, Joseph Hayes, Matthew Caddy and Robert Kirman of
McGrathNicol as receivers and managers of Banksia Securities
Limited.  The Trustee is the secured creditor of BSL.

The Trustee made the appointment of Receivers and Managers
following a request of BSL's Board.

McGrathNicol said BSL owes approximately $660 million to
investors and advanced these funds to borrowers primarily to
finance real property purchases.  BSL holds first ranking real
property mortgages to secure its advances.

Control of the business and the assets of BSL rests with the
Receivers and Managers who will be working in close consultation
with the Trustee to ensure the interests of debenture holders are
being protected.

Interest payments and redemptions have been frozen as of
Oct. 25, 2012.


BD MOBILE: Launches AUD3MM Claim Vs. Vodafone After Liquidation
---------------------------------------------------------------
SmartCompany reports that BD Mobile, which was formerly one of
Vodafone's biggest mobile dealers, is now embroiled in litigation
against the telco following its liquidation.

SmartCompany relates that Besyl, which traded as BD Mobile, has
launched a AUD3 million claim against Vodafone in the NSW Supreme
Court for outstanding commission payments and loss of business
and customers.

The report says the claim follows the appointment of Jamieson
Louttit Insolvency & Advisory as liquidator of BD Mobile.

Jamieson Louttit told SmartCompany that BD Mobile was one of
Vodafone's exclusive dealers and is suing Vodafone for unpaid
commissions.

The amounts are monthly commissions paid to BD Mobile based on
bills paid by customers, the report relays.

"They owe me money, and the records from what I can see from an
accounting perspective are very poor, they are atrocious," the
report quotes Mr. Louttit as saying.  "It appears that Vodafone
relies on the dealers to calculate the commissions owed to it as
its own internal systems don't allow it to do the calculations."

According to the report, Mr. Louttit said he estimates at least
AUD162,000 is owed but BD Mobile is claiming AUD3 million in the
NSW Supreme Court on the basis of the outstanding commission
along with loss of business and customers.

SmartCompany notes BD Mobile is claiming that problems with
Vodafones' network caused it to lose customers and for the
business to fail.

A letter of demand has been issued to Vodafone and Mr. Louttit
said the case is set down for mediation in two weeks' time.

BD Mobile's principal creditor is the Australian Tax Office,
which is owed about $67,000 and Mr. Louttit said it is the ATO
which wound the company up, SmartCompany adds.


RESIMAC 2012-1NC: S&P Assigns 'B' Rating to Class F RMBS
--------------------------------------------------------
Standard & Poor's Ratings Services assigned its ratings to seven
of the eight classes of residential mortgage-backed securities
(RMBS) issued by Perpetual Trustee Company Ltd. as trustee of
RESIMAC Bastille Trust in respect of RESIMAC Series 2012-1NC.
RESIMAC Series 2012-1NC is a securitization of a pool of
nonconforming and prime residential mortgages originated by
RESIMAC Ltd.

The ratings reflect:

* S&P's view of the credit risk of the underlying collateral
   portfolio, including the fact that this is a closed
   portfolio, which means no further loans will be assigned to
   the trust after the closing date.

* S&P's expectation that the various mechanisms to support
   liquidity within the transaction, including principal draws
   and an amortizing liquidity facility equal to 3.2% of the
   initial invested amount of all notes, subject to a floor of
   AUD1,920,000, are sufficient under S&P's stress assumptions to
   support timely payment of interest on the rated notes.

* S&P's view that the credit support is sufficient to withstand
   the stresses it applies.  This credit support comprises
   mortgage insurance for 40% of the portfolio, which covers 100%
   of the face value of those loans, their accrued interest, and
   reasonable costs of enforcement; and note subordination for
   the class A1, class A2, class B, class C, class D, class E,
   and class F notes.

* The benefit of a fixed-to-floating interest-rate swap provided
   by National Australia Bank Ltd. (AA-/Stable/A-1+), to hedge
   the mismatch between receipts from any fixed-rate mortgage
   loans and the variable-rate RMBS.

* The condition that a minimum margin will be maintained on the
   residential mortgage loans.

* The availability of a retention amount built from excess
   spread, and which will be applied monthly to repay the most
   subordinated rated note at that time. An equal amount of
   unrated class G notes will be issued at the same time to
   maintain the level of credit support available to the rated
   notes.

* The availability of an amortization amount built from excess
   spread, starting two months after the call date onward, to
   absorb any mortgage losses.

           STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

SEC Rule 17g-7 requires an NRSRO, for any report accompanying a
credit rating relating to an assetbacked security as defined in
the Rule, to include a description of the representations,
warranties and enforcement mechanisms available to investors and
a description of how they differ from the representations,
warranties and enforcement mechanisms in issuances of similar
securities.

The Standard and Poor's 17g-7 Disclosure Report included in this
credit rating report is available at:

     http://standardandpoorsdisclosure-17g7.com/1048.pdf

RATINGS ASSIGNED
Class  Rating        Amount (mil. A$)
A1     AAA (sf)           208.2
A2     AAA (sf)            34.8
B      AA (sf)             27.0
C      A (sf)              11.1
D      BBB (sf)             7.8
E      BB (sf)              5.1
F      B (sf)              2.28
G      N.R.                3.72

N.R. - Not rated.


ST HILLIERS: Subcontractors May Recoup Money as DOCA Okayed
------------------------------------------------------------
The Coffs Coast Advocate reports that a number of sub-conractors
on the Coffs Coast left short by the collapse of St Hilliers
Construction may finally be able to see some financial light at
the end of the tunnel.

The Advocate relates that hard-hit contractors of the Coffs
Harbour Housing NSW unit block on Harbour Dr look like recovering
a large percentage of the AUD1.6 million owed to them after a
Deed of Company Arrangement (DOCA) was approved Wednesday by
creditors of St Hilliers Construction Pty Ltd.

According to the report, the DOCA will create a deed fund of up
to AUD8.1 million for the Company which will be used to pay all
former employee entitlements in full and the balance to be
available to ordinary unsecured creditors.

The estimated dividend pool for unsecured creditors (who are not
former employees) is between AUD1 million and AUD4.5 million, the
Advocate discloses.

The report notes the DOCA will take effect in the coming weeks at
which time the Administration will cease and control of the
Company will revert to the Director.

"We're pleased that a solution has been forthcoming for
creditors. This arrangement will keep people in work, it will
keep projects going and it will put the Company in a position to
rebuild," the report quotes St Hilliers Group executive chairman
Tim Casey as saying.  "This has been a difficult period for all
stakeholders of the Company, especially our employees and
contractors."

As reported in the Troubled Company Reporter-Asia Pacific on
May 17, 2012, St Hilliers Construction Pty Ltd said it had
appointed Trent Hancock and Michael Hird of Moore Stephens Sydney
Corporate Recovery Group as voluntary administrators.  An
associated company, St Hilliers Ararat Pty Ltd is part of a
consortium contracted to undertake the AUD350 million expansion
of the Ararat Prison in central Victoria. St Hilliers Ararat Pty
Ltd has at the same time been placed into liquidation. The
administration of St Hilliers Construction Pty Ltd is due to
exposure under guarantees for debts of St Hilliers Ararat Pty Ltd
relating to the Ararat Prison project in Victoria.

St Hilliers Group is an Australian property group providing
services in property development, contracting and funds
management.

St Hilliers Construction Pty Ltd is the construction arm of the
St Hilliers Group.



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


3D-GOLD JEWELLERY: Contributories, Creditors to Meet on Nov. 20
---------------------------------------------------------------
Creditors and contributories of 3D-Gold Jewellery Holdings
Limited will hold their first meetings on Nov. 20, 2012, at
9:30 a.m., and 10:30 a.m., respectively at St. James' Settlement
No. 85 Stone Nullah Lane, Wanchai, in Hong Kong.

At the meeting, Darach E. Haughey, Edmond Wah Ching and Yeung Lui
Ming (Edmund), the company's liquidators, will give a report on
the company's wind-up proceedings and property disposal.


CTC GARMENT: Court Enters Wind-Up Order
---------------------------------------
The High Court of Hong Kong entered an order on Oct. 17, 2012, to
wind up the operations of CTC Garment Limited.

The official receiver is Teresa S W Wong.


DAWN GLOVES: Court to Hear Wind-Up Petition on Dec. 19
------------------------------------------------------
A petition to wind up the operations of Dawn Gloves Manufactory
Company Limited will be heard before the High Court of Hong Kong
on Dec. 19, 2012, at 9:30 a.m.

Standard Chartered Bank (Hong Kong) Limited filed the petition
against the company on Oct. 4, 2012.

The Petitioner's solicitors are:

          Tsang, Chan & Wong
          16th Floor, Wing On House
          No. 71 Des Voeux Road
          Central, Hong Kong


FAIRTOL INDUSTRIAL: Court to Hear Wind-Up Petition on Nov. 28
-------------------------------------------------------------
A petition to wind up the operations of Fairtol Industrial
Limited will be heard before the High Court of Hong Kong on
Nov. 28, 2012, at 9:30 a.m.

Ching Wo Ping filed the petition against the company on Sept. 26,
2012.


GLAD ATTAIN: Creditors Get 100% Recovery on Claims
--------------------------------------------------
Glad Attain International Limited, which is in liquidation, will
declare first and final dividend to its creditors on or after
Nov. 2, 2012.

The company will pay 100% for preferential and 0.02% for ordinary
claims.

The company's liquidator is:

         Rainier Hok Chung Lam
         22nd Floor, Prince's Building
         Central, Hong Kong


HENCH (CHINA): Court to Hear Wind-Up Petition on Nov. 14
--------------------------------------------------------
A petition to wind up the operations of Hench (China) Building
Services Engineering Limited will be heard before the High Court
of Hong Kong on Nov. 14, 2012, at 9:30 a.m.

Hong Kong Air Flow Equipment Limited filed the petition against
the company on July 11, 2012.

The Petitioner's solicitors are:

          Hioe & Pun
          18th Floor, Kailey Tower
          16 Stanley Street
          Central, Hong Kong


HIGASHIGI INDUSTRIAL: Court to Hear Wind-Up Petition on Dec. 12
---------------------------------------------------------------
A petition to wind up the operations of Higashigi Industrial
Company Limited will be heard before the High Court of Hong Kong
on Dec. 12, 2012, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on Sept. 27, 2012.

The Petitioner's solicitors are:

          Arthur K.H. Chan & Co
          Unit C1, 15th Floor
          United Centre
          No. 95 Queensway
          Hong Kong


JOINDIN (CHINA): Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on Sept. 24, 2012,
to wind up the operations of Joindin (China) Limited.

The company's liquidator is Bruno Arboit.


KWAN WAI: Court Enters Wind-Up Order
------------------------------------
The High Court of Hong Kong entered an order on Aug. 16, 2012, to
wind up the operations of Kwan Wai Decoration Limited.

The company's liquidator is Bruno Arboit.


LAND ASIA: Court Enters Wind-Up Order
-------------------------------------
The High Court of Hong Kong entered an order on Aug. 1, 2012, to
wind up the operations of Land Asia Management Limited.

The company's liquidator is Bruno Arboit.


MEGA PROJECTS: Court Enters Wind-Up Order
-----------------------------------------
The High Court of Hong Kong entered an order on Oct. 15, 2012, to
wind up the operations of Mega Projects Construction Limited.

The company's liquidator is Bruno Arboit.


NOVEL ADVANCE: Court to Hear Wind-Up Petition on Dec. 12
--------------------------------------------------------
A petition to wind up the operations of Novel Advance Limited
will be heard before the High Court of Hong Kong on Dec. 12,
2012, at 9:30 a.m.

The Petitioner's solicitors are:

          Messrs. Marie Tsang, Dustin Chan & Co
          Unit 2303-04, 23rd Floor
          Wing On Centre
          No. 111 Connaught Road
          Central, Hong Kong


POLYGLORY (HK): Creditors Get 7.344% Recovery on Claims
-------------------------------------------------------
Polyglory (Hong Kong) Limited, which is in creditors' voluntary
liquidation declared the first and final dividend to its
creditors on or after Oct. 26, 2012.

The company paid 7.344% for ordinary claims.

The company's liquidator is:

         Stephen Briscoe
         602 The Chinese Bank Building
         61-65 Des Voeux Road
         Central, Hong Kong


REGAL LINK: Court to Hear Wind-Up Petition on Nov. 28
-----------------------------------------------------
A petition to wind up the operations of Regal Link Industrial
Limited will be heard before the High Court of Hong Kong on
Nov. 28, 2012, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on Sept. 13, 2012.

The Petitioner's solicitors are:

          Arthur K.H. Chan & Co
          Unit C1, 15th Floor
          United Centre
          No. 95 Queensway
          Hong Kong


SERLIN LIMITED: Creditors Get 16.7814% Recovery on Claims
---------------------------------------------------------
Serlin Limited, which is in creditors' liquidation declared the
first dividend to its creditors on Oct. 26, 2012.

The company paid 16.7814% for ordinary claims.

The company's liquidators are:

         Cosimo Borrelli
         G Jacqueline Fangonil Walsh
         Level 17, Tower 1
         Admiralty Centre
         18 Harcourt Road
         Hong Kong


TAKAGI INDUSTRIES: Court Enters Wind-Up Order
---------------------------------------------
The High Court of Hong Kong entered an order on Aug. 16, 2012, to
wind up the operations of Takagi Industries (Shenzhen) Company
Limited.

The company's liquidator is Bruno Arboit.


THERMOPOWER ELECTRICAL: Court to Hear Wind-Up Petition on Nov. 28
-----------------------------------------------------------------
A petition to wind up the operations of Thermopower Electrical
Appliance (HK) Limited will be heard before the High Court of
Hong Kong on Nov. 28, 2012, at 9:30 a.m.

Bank of China (Hong Kong) Limited filed the petition against the
company on Sept. 13, 2012.

The Petitioner's solicitors are:

          Arthur K.H. Chan & Co
          Unit C1, 15th Floor
          United Centre
          No. 95 Queensway
          Hong Kong


TREASURE ISLAND: Court to Hear Wind-Up Petition on Dec. 5
---------------------------------------------------------
A petition to wind up the operations of Treasure Island Trading
Limited will be heard before the High Court of Hong Kong on
Dec. 5, 2012, at 9:30 a.m.

Simple Symbol Limited filed the petition against the company on
Oct. 3, 2012.

The Petitioner's solicitors are:

          So, Lung & Associates
          15th Floor, China Taiping Tower Phase 2
          8 Sunning Road
          Causeway Bay, Hong Kong


WATHNE OVERSEAS: Court Enters Wind-Up Order
-------------------------------------------
The High Court of Hong Kong entered an order on Oct. 3, 2012, to
wind up the operations of Wathne Overseas Limited.

The company's liquidator is Bruno Arboit.


WIKI EDUCATION: Court to Hear Wind-Up Petition on Nov. 14
---------------------------------------------------------
A petition to wind up the operations of Wiki Education Network
Limited will be heard before the High Court of Hong Kong on
Nov. 14, 2012, at 9:30 a.m.

Yim Kai Ming filed the petition against the company on Sept. 5,
2012.

The Petitioner's solicitors are:

          Leung, Tam & Wong
          Rooms 901-902, 9th Floor
          The Chinese Bank Building
          61-65 Des Voeux Road
          Central, Hong Kong



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


BHUWALKA CASTINGS: ICRA Assigns 'BB+' Rating to INR11.27cr Loans
----------------------------------------------------------------
ICRA has reaffirmed the long term rating assigned to INR6.0
crore1 bank facilities and INR5.27 crore term loans of Bhuwalka
Castings & Forging Private Limited at '[ICRA]BB+'.  The outlook
on the rating is Stable.

                            Amount
   Facilities              (INR Cr)    Ratings
   ----------              ---------   -------
   Term Loan                 5.27      [ICRA]BB+(stable)
   Fund Based-Cash Credit    6.0       [ICRA]BB+(stable)

The rating action favorably considers BCFPL's experienced
management and its long track record in the castings and forging
business. The rating also takes into account the benefits enjoyed
by BCFPL on account of being a part of Bhuwalka Premier Group
namely established brand image, captive consumer for products
like rolls, extensive linkages with steel industry players and
easy access to some raw material and consumables like scraps,
mis-rolls and refractory bricks. The rating is however
constrained by BCFPL's moderate scale of operations with an
operating income of INR99 Cr coupled with low profitability as
reflected in net profit margin of 0.26% for FY12. While assigning
the rating, ICRA also considers BCFPL's adverse capital structure
with gearing of 3.7 times (Mar 31, 2012). Moreover, the rating
continues to factor in demand risk associated with new product
lines such as industrial castings, rolls and machined products.

While assigning the rating, ICRA has taken a consolidated view of
the Bhuwalka Group due to strong operational linkages among the
companies.

Bhuwalka Castings & Forging Pvt Ltd is part of Bhuwalka Premier
Group and is into making cast and forged iron products for
industrial use. The Plant is located in Tamaka Industrial Area,
Kolar about 80 Kms from Bangalore. This unit has the
manufacturing facilities for 20,000 TPA of Steel Casting & M.S.
Ingots using scrap metal. Company was earlier primarily into
ingot production which in turn was used by group companies for
rolled products. However it has now stopped manufacturing ingots
from Dec 2009 and is now completely focusing on industrial
castings, rolled products and machined products. It possesses
capability to manufacture various grades of Grey iron and S.G.
iron castings in the weight range of 0.5 to 6 MT single pieces.
The company presently caters primarily to the domestic market and
serves industries like Machine Tool Industry, Air Compressors and
Refrigeration, High Speed Diesel Engines, valve and vacuum pump
Industries. Bangalore based Bhuwalka Premier Group has interests
in steel trading business, refractory bricks, and manufacturing
of steel rolled products including TMT bars and steel structural
sold under the brand name 'Bhuwalka'.

Recent Results

For the financial year 2011-12, BCFPL recognized an operating
income of INR99.28 crore and net profit of INR0.26 crore as
against an operating income of INR62.46 crore and net profit of
INR0.22 crore during FY 2010-11.


CLAIR ENGINEERS: ICRA Cuts Rating on INR5cr Loan to '[ICRA]BB+'
---------------------------------------------------------------
ICRA has revised the long term rating assigned to the INR5.00
crore1 fund based facilities of Clair Engineers Private Limited
from '[ICRA]BBB-' to '[ICRA]BB+'.  The outlook on the long term
rating is stable. ICRA has also revised the short term rating
assigned to the INR7.50 crore non-fund based facilities of CEPL
from '[ICRA]A3+' to '[ICRA]A4+'.

                          Amount
   Facilities            (INR Cr)   Ratings
   ----------           ---------   -------
   Fund based Limits       5.00     Revised to [ICRA]BB+ (Stable)
                                    from [ICRA]BBB- (Stable)

   Non Fund based Limits   7.50     Revised to [ICRA]A4+ from
                                    [ICRA]A3+

The rating revision factors in the inability of the company to
scale up its operations on account of weak order inflow in FY12
resulting from low expansion activity by its user industries
(cement, sugar etc). The rating revision also factors in the
stretched projected debt servicing coverage indicators due to
considerable debt repayments scheduled over the near term. Given
that company has recently commenced operations at its new
manufacturing facility, the ability of the company to scale up
the operations remains critical to timely debt servicing. The
ratings continue to remain constrained by the inherent volatility
in the business, poor power scenario present in the region and
CEPL's exposure to forex risk as company has began substantial
exports since FY12 (although foreign exchange movements have been
favorable in recent past). However the ratings draw comfort from
the long experience and the technical qualification of the
promoters in the industry and CEPL's reputed client base which
reduces the counterparty risk to a large extent. The ratings
favorably factor in the improvement in operating profitability in
FY12 due to involvement of the company in direct exports
primarily to African countries.

Clair Engineers Private Limited was started in 1992, as a
proprietary concern by Dr. K. Sainath, who is a chemical
engineering graduate who also holds a PhD from IIT Delhi. CEPL
started in 1992 as an extension to project and engineering
consultancy services being offered by Dr. Sainath for Cement and
Allied industries for over 25 Years. CEPL benefits largely from
the vast experience of Dr. Sainath and colleagues in the field of
design, engineering & supply of air pollution control equipment.


ISLAND STAR: ICRA Rates INR350cr Term Loan at '[ICRA]B+'
--------------------------------------------------------
ICRA has assigned '[ICRA]B+' rating to the INR350 crore lease
rental discounting term loan limits of Island Star Mall
Developers Private Limited.

                             Amount
   Facilities               (INR Cr)    Ratings
   ----------               ---------   -------
   Term loan Limits            350      [ICRA]B+ (Assigned)

The rating assigned to Island Star Mall Developers Limited are
constrained by delay in the project execution by over six months
from the scheduled commercial operation date and consequential
18% increase of the project cost on account of increase in
Interest During Construction and pre-operative expenses. Given
that the incremental project cost has been largely funded by
additional debt; the overall indebtedness of the project has
increased as compared to the earlier estimates. The ratings are
further constrained by the dependence of the liquidity position
of the company over the medium term on cash flows proposed to be
generated from the sale of FSI of 0.40 million sq. ft. for hotel
portion and sale of the residential project of 0.60 million sq.
ft. planned to be executed in Joint Venture (JV) with PML;
however no significant progress has been achieved towards the
same till date. ICRA also notes that the company is exposed to
loan refinancing risk as 30.40% of the debt is to be repaid by
the company through bullet repayment scheduled at the end of
FY19.

Nevertheless, the assigned ratings of ISMD positively take into
account the operational status of the retail mall since October
2011 with lease agreements having executed for over 88% of the
total leasable area of 0.97 million sq. ft. and healthy occupancy
of -73% of the mall witnessed as of September 2012. Further, the
ratings are supported by the fact that debt refinancing through
fresh Lease rental discounting (LRD) loan in April 2012 has
resulted in improvement of liquidity position of the project for
short term on the back of relatively favorable repayment terms as
compared to the previous term loan. The attractive location of
the project which along-with established relationship of the
promoters with reputed brands are likely to help securing higher
occupancy in the mall in short to medium term. The ratings also
accounts the established track record of PML as key promoter of
ISMD in operation of similar retail mall at Mumbai and Pune which
mitigates the operational risks in the project. Company Profile
ISMD is developing a large, integrated market complex, namely
'Market City' at Whitefield in Bangalore. The project is located
at Mahadevapura abutting the Whitefield road in Eastern
Bangalore. The project is in close proximity to the International
Technology Park at Whitefield and EPIP (Export Promotion
Industrial Park) zone. The company is promoted by Phoenix Mills
Ltd and Horizon Venture Capital Fund who together hold 74.39%
share in ISMD. Remaining 25.62% of ISMD's stake is held by
investors namely IL&FS Trust Company Limited and Edelweiss
Trustee Services. The project is operational on a lease model
basis since October 2011.

Recent Results:

In FY12; the company reported a Profit after tax (PAT) of
INR10.45 crore on an Operating Income (OI) of INR27.41 crore.


KANHIYA DHALIWAL: ICRA Rates INR10cr Demand Loan at '[ICRA]B'
-------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR10.0 crores Fund
Based bank limits of Kanhiya Dhaliwal Developers.

                                 Amount
   Facilities                   (INR Cr)    Ratings
   ----------                   ---------   -------
   Working Capital Demand Loan     10.0     [ICRA]B (Assigned)

The rating factors in the established track record of KDD's
promoters in the construction sector in the Bhatinda region,
Punjab and successful completion of earlier plotted projects in
the region by the promoters. The rating is however constrained by
firm's exposure to execution risks for its on-going project owing
to the initial stage of implementation and various approvals are
yet to be secured. Further, the high dependence on promoter's
contribution and customer advances for funding the project cost
exposes the project to high funding risks. The real estate demand
in Bhatinda has remained sluggish, which can put pressure on the
project's sales volume. Going forward, KDD's ability to achieve
bookings in its project, meet its construction schedule, as well
as ensure timely infusion of funds by the promoters would be the
key rating sensitivities.

Kanhiya Dhaliwal Developers is a partnership firm and is
incorporated with the purpose of developing a 35 acre Township
opposite Phase 4 & 5, BDA, Green Palace Road, Bhatinda, Punjab.
The firm is promoted by five partners which include Mr. Darshan
Garg, Mr. Dharam Pal Goyal, Mr. Nazar Singh, Mr. Gurvinder Singh
and Mr. Sukhpinder Singh.

The township is named Green city 1 & 2 and is being constructed
on 35 acre land which has been purchased from the individual
partners in the firm for a consideration of INR16.2 crore. In the
township, company plans to sell 198 residential plots, 53
commercial plots and 68 plots for economically weaker section
(EWS). In addition, the township would also have a school, a
dispensary and a club house.


K. S. R. TEXTILE: ICRA Reaffirms 'B+' Rating on INR29.3cr Loan
--------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B+'
outstanding on the INR19.30 crore term loan facilities and the
INR10.00 crore fund based facilities of K. S. R. Textile Mills
Private Limited. ICRA has also assigned the short-term rating of
'[ICRA]A4' to the INR0.58 crore non-fund based facilities of the
Company.

                           Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Term loan facilities     19.30    [ICRA]B+ reaffirmed
   Fund based facilities    10.00    [ICRA]B+ reaffirmed
   Non-fund based            0.58    [ICRA]A4 assigned
   facilities

The rating reaffirmation in rating takes note of the long
standing experience of the promoters in the spinning industry
spanning more than two decade and their diversified business
profile with presence in both yarn and fabric segments lends
stability to volumes. The ratings however continue to be
constrained by the stretched financial profile of the Company
characterized by high gearing and modest coverage indicators, the
Company's small scale of operations limiting scale economics and
intense competition in a highly fragmented textile industry, weak
recovery in yarn demand. The ratings also consider the power
availability issues in Tamil Nadu which impacted operating
performance and margins in the recent past; however the same is
mitigated to an extent through additions of windmill capacities.

Incorporated in 1988 and commencing operations in 1992, K. S. R.
Textile Mills Private Limited is engaged in manufacturing of
grey/ unbleached carded, combed and compact cotton yarn and
blended yarn in the 40s to 80s range. The Company also sells
cotton fabric, woven / knitted from local players through job
work. Beginning operations with a capacity of 6,720 spindles, the
Company has expanded over the years in a phased manner to reach a
capacity of 34,224. With manufacturing facilities spreads across
two units in Thiruchengode (Tamil Nadu) operating on a three-
shift basis, the Company has about 250 employees (including 200
laborers with no union).

The Company is managed by Sri. K. S. Rangaswamy, Sri. R.
Balakrishnan and Sri. K. R. Sengottuvelu and is wholly owned by
their families. Other companies under the same management include
Summer India Textile Mills Private Limited, Summer India Weaving
and Processing Private Limited, R. B. Wovens Private Limited, K.
S. R. Exports and K. S. R. Educational and Charitable Trust.
While K. S. R. Educational and Charitable Trust runs graduate,
post graduate and professional colleges, the remaining companies
are engaged in businesses in the textile sector.

Recent results

In 2011-12, KSR reported a net profit of INR0.4 crore on an
operating income of INR26.1 crore as against a net profit of
INR1.0 crore on an operating income of INR41.2 crore in 2010-11.


MICROPACK LIMITED: ICRA Assigns 'BB+' Rating to INR6.81cr Loans
---------------------------------------------------------------
ICRA has revised the rating assigned to INR2.31 crore Term Loan
(revised from INR4.15 crore), and INR4.5 crore Fund Based Limits
(revised from INR3.25 crore) of Micropack Limited from
'[ICRA]BBB- to '[ICRA]BB+'. ICRA has also revised the short term
rating assigned to INR1.19 crore non fund based limits (revised
from INR0.6 crore) of the company from '[ICRA]A3' to '[ICRA]A4+'.
The outlook on the long term rating is stable.

                           Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Term Loans               2.31     [ICRA]BB+
   Fund Based Limits        4.50     [ICRA]BB+
   Non Fund Based Limits    1.19     [ICRA]A4+

The revision in the ratings takes into account increase in
Micropack's debtor levels during first half of FY13 (H1FY13); the
company's debtor days increased to 118 days during H1FY13 from
90-95 days during previous four years. ICRA also notes that the
company's greater-than-six-months debtor has also increased from
14-15% of the total debtors during FY10 and FY11 to almost 22% in
FY12. This aggravates the concern of elongation in debtor cycle
or losses due to bad debt. The issue is of higher pertinence on
account of the company's track record of writing-off significant
bad debts in the past; 2.5% and 3% of operating income were
written-off as bad debt in FY09 and FY10, respectively. Further,
ICRA notes that the company's profitability has moderated from
the earlier levels; operating margin moderated to 17-18% during
FY11 and FY12 from 20-23% during previous three years. The
profitability has further declined during H1FY13 with PBT margin
of 4.2% during the period, as compared to 11.5% during H1FY12.
The moderation in the profitability is partly attributed to
adverse foreign currency movements. Moreover, Micropack revenue
growth has been flattish or negative during last eighteen months;
the company registered revenue growth of only 2% in FY12 and Y-o-
Y de-growth of ~12% in H1FY13. Considering that during FY12 and
H1FY13 the company has incurred significant debt-funded capital
expenditure, the company's ability to grow its revenue base,
improve its profitability and working capital management would be
critical for its future debt servicing capability and overall
financial health.

Besides the above mentioned factors, the assigned ratings
continue to remain constrained by Micropack's modest scale of
operation, its high sector and geographic concentration, and the
competition faced from the technologically more advanced foreign
players. The ratings are further constrained by the high working
capital intensity of the company and high technology obsolescence
risk associated with the sector.

The assigned ratings however, continue to draw comfort from
Micropack's long track record in the manufacturing of Printed
Circuit Boards (PCBs) and its reputed client base mainly
comprising of Indian Public Sector Units catering to domestic
Defence, Aeronautics and Aerospace sectors. ICRA further notes
that Micropack has an edge over the domestic competition because
of its relatively high quality standards and manufacturing
capabilities which distinguishes it from most of the local
suppliers. Additionally, as the company caters to confidentiality
sensitive defence and aerospace sectors, its Indian identity and
its proximity to customers provides it with competitive advantage
against the foreign suppliers (particularly Chinese/ Taiwanese).


POLAR STAR: ICRA Reaffirms '[ICRA]BB-' Rating on INR28cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB-' and short
term rating of '[ICRA]A4' to the INR26.60 crore1 fund based
facilities of Polar Star. The outlook on the long term rating
remains "Stable". The proposed limits of INR1.40 crore have been
rated by ICRA on both the scales at '[ICRA]BB-' and '[ICRA]A4'.

                              Amount
   Facilities                (INR Cr)    Ratings
   ----------                ---------   -------
   LT & ST Scale-Fund          26.60     [ICRA]BB- (Stable)/
   Based Limits                          [ICRA]A4 reaffirmed

   Proposed Limits              1.40     [ICRA]BB- (Stable)/
                                         [ICRA]A4 reaffirmed

The ratings reaffirmation continues to factor in PS's relatively
modest scale of operations and weak operating profitability
levels. Despite improvement in net profit margins in FY 2012,
which is largely supported by exchange fluctuation gains, margins
remains exposed to the risk of fluctuations in exchange rates as
well as disproportionate rise in rough diamond prices vis-a- vis
polished diamond prices. The rating, however, favourably factors
in the long experience of the partners in the CPD business and
comfortable gearing position at present.

Polar Star is a partnership firm established in 1989. The firm is
managed by five partners namely Mr. Anup P. Zaveri, Mr. Ashit P.
Zaveri, Mr. Smitesh S. Mehta and Mr. Sujit S. Mehta. PS is
engaged in the business of manufacturing and trading of cut &
polished diamonds. The other line of business, which PS has
engaged itself in is the sale of electricity through its Wind
Mill Project in Sangli, Maharashtra primarily to avail tax
benefits. The firm has its marketing office at Mumbai and a
production facility at Surat.

Recent results:

For the year 2011-12, PS recorded a net profit of INR4.12 crore
on an operating income of INR63.12 Crores as against a net profit
of INR1.47 Crore on an operating income of INR57.26 Crore in
2010-11.


RAJASTHAN VIKAS: Delays in Loan Payment Cues ICRA Junk Ratings
--------------------------------------------------------------
ICRA has revised the rating assigned to INR24.90 crore(earlier
INR23.5 crore) term loan, INR5.40 crore(earlier INR6.8 crore) non
fund based and INR2.0 crore fund based facilities of Rajasthan
Vikas Sansthan to '[ICRA]D' from '[ICRA]BB'.

                           Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Term Loan               24.90     [ICRA]D(Revised)
   Non-Fund Based Limits    5.40     [ICRA]D(Revised)
   Fund Based Limits        2.00     [ICRA]D(Revised)

The revision in rating takes into account delays in servicing of
debt obligations by the society in the recent past on account of
its stretched liquidity position. The rating is also constrained
by increase in debt its levels due to continuous capex for
upgrading and maintaining the infrastructural facilities. The
rating continues to factor in the diverse range of courses
offered, healthy occupancy levels and healthy profitability of
the society. Going forward, timely servicing of debt obligations
and improvement in capital structure will be the key rating
sensitive factors.

Rajasthan Vikas Sansthan is a Society under the Societies
Registration Act in the year 1999. RVS is primarily engaged in
providing higher education, with eight colleges providing courses
at the undergraduate as well as post graduate level in dental
science (BDS and MDS), engineering (B.Tech.), management (MBA and
BBA), nursing and teacher training (B.Ed.). The society is also
running a 150 bedded general hospital. RVS has two campuses in
Jodhpur, Rajasthan.

Recent Results

For the year 2011-12 RVS reported an operating income of INR23.60
crore and profit of INR3.27 crore as compared to an operating
income of INR19.37 crore and profit of INR3.13 crore in 2010-11.


SHREE RAM: ICRA Assigns '[ICRA]BB-' Rating to INR6.65cr Loans
-------------------------------------------------------------
The rating of '[ICRA]BB-' has been assigned to the INR0.15 crore
term loans and INR5.50 crore cash credit facility of Shree Ram
Steel Re Rolling Mill. The outlook on the rating is 'Stable'.

                           Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Cash Credit Facility     5.50     [ICRA]BB- (Stable) assigned
   Term Loan                0.15     [ICRA]BB- (Stable) assigned

The assigned rating is constrained by SSRM's modest scale of
operations; low profitability margins due to limited value
additive nature of operations coupled with intense competition on
account of fragmented industry structure and modest coverage
indicators. The rating is further constrained by vulnerability of
firm's profitability to adverse fluctuations in raw material
prices which may not be passed on to the customers adequately.
ICRA also notes that SSRM is a partnership firm and any
significant withdrawals from the capital account could adversely
impact its net worth and thereby the capital structure. The
rating, however, favourably considers the long experience of the
promoters in the secondary steel industry; favourable long term
demand potential for the firm's products and its diversified
customer base.

Shree Ram Steel Re-Rolling Mill was established in the year 1995
as a partnership firm and it is engaged in manufacturing of MS
flats, MS rounds and MS square bars from MS Ingots. The
manufacturing facility of the firm is located at Vijapur, Mehsana
district of Gujarat, with an installed capacity of 21,000 TPA.

In FY 2012, SSRM reported an operating income of Rs 43.72 crore
and profit after tax of INR0.54 crore as against an operating
income of INR38.16 crore and profit after tax of Rs 0.52 crore
during FY 2011.


ST. SHIRDI: ICRA Rates INR24.23cr Term Loans at '[ICRA]BB+'
-----------------------------------------------------------
ICRA has assigned an '[ICRA]BB+' rating to the INR24.23 crore
term loans of St. Shirdi Sai Education Society. The outlook on
the long term rating is Stable.

                           Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Term Loans               24.23    [ICRA]BB+ (Stable) assigned

While assigning the rating, ICRA has considered the standalone
financials of SSSES from FY12 and consolidated financials of
SSSES and St. Sirdi Sai Education Society Limited till FY11 to
evaluate the financial profile, as the school's assets were owned
by SSSESL till March 31, 2011 and have been transferred to SSSES
effective April 1, 2011. The rating takes into account the
favourable positioning of Sai International School as
demonstrated by a significant increase in the student intake in
the academic year (AY) 2012-13, and the good performance of the
students in the Board examinations and competitive entrance
examinations, which would enhance its reach further among the
student community.

The rating takes cognizance of SIS's composite affiliation for
secondary and senior secondary classes from Central Board of
Secondary Education, experience and academic background of the
faculty and Management Committee members, and the positive demand
outlook for the education sector in India. The rating is,
however, constrained by the school's limited track record of
about 4 years in imparting education, moderate scale of the
entity's operations, despite significant growth in revenues and
profits in 2011-12, and its significant revenue concentration,
with its entire revenues being derived from one school. The
rating takes into consideration the entity's significant
improvement in the capital structure, with a gearing of 2.24
times as on June 30, 2012, declining from 3.29 times as on
March 31, 2012. However, the same remains high in absolute terms.
SSSES has undertaken significant capital expenditure (capex) in
the past, which has enabled SIS to increase the student intake
capacity by 800 from the AY2012-13. In ICRA's opinion, this would
help the entity admit higher number of students going forward,
which would have a favourable impact on the profits and cash
accruals, a trend that was also witnessed during FY12. However,
the ability of the entity to increase its turnover and profits
while maintaining a conservative capital structure would remain a
key rating sensitivity going forward.

Incorporated in 2007, SSSES was formed to manage and run a school
-- Sai International School -- in Bhubaneswar. However, St. Sirdi
Sai Education Society Limited used to own the assets and
liabilities of Sai International School till March 31, 2011.
Effective April 1, 2011, all the assets and liabilities of SSSESL
related to the school have been transferred to SSSES. The school
has affiliation from CBSE up to class XII for all the streams.
The school was started during the academic year 2008-09 and
currently has around 2100 students.

Recent Results

During Q1FY13, SSSES reported a net profit (PAT) of INR2.27 crore
on an OI of INR6.82 crore as compared to a PAT and OI of INR2.84
crore and INR20.06 crore respectively during FY12.


VAIBHAV JEWELLERS: ICRA Reaffirms 'BB' Rating on INR12cr Loans
--------------------------------------------------------------
ICRA has reaffirmed the long term rating of '[ICRA]BB' assigned
to INR12.00 crore fund based bank facilities of Vaibhav
Jewellers. The outlook on long term rating is stable.

                           Amount
   Facilities            (INR Cr)    Ratings
   ----------            ---------   -------
   Long Term Fund            12      [ICRA]BB reaffirmed
   based Limits

The ratings reaffirmation by ICRA factors in VJ's limited
financial flexibility on account of highly leveraged capital
structure, poor coverage indicators and high working capital
intensity characterized by the high inventory maintained by the
entity which also exposes it to volatility in gold prices. The
assigned rating continues to factor in the highly competitive
nature of the jewellery market characterized by the presence of a
large number players and low entry barriers for new entrants. The
rating remains constrained due to concentration risks arising
from the fact that the entity operates through a single showroom.
ICRA has also taken note of expected increase in gearing and the
project risks associated with the construction of new showroom.
The rating however favourably factors in the long-standing
experience of Vaibhav Jewellers's promoters and management in the
jewellery business which has enabled the entity to establish
leadership position in retail jewellery business in the Eluru
market. Going forward the ability of the entity to maintain its
growth and manage its inventory amidst intense competition will
be a continued challenge in this market and will be a key rating
sensitivity.

Vaibhav Jewellers is a partnership firm which was constituted in
1991 in Eluru village as a manufacturer and retailer of gold
Jewellery by Mr GSV Amarandra, Mr G Narendra and Mr G Manoj
Kumar. In 1997 Vaibhav Jewellers was converted as a proprietary
concern with Mr GSV Amarendra as a sole proprietor. VJ's showroom
size is about 120 sq yards and it employs about 30 people.


VRV TEXTILES: Delay in Loan Payment Cues ICRA Junk Ratings
----------------------------------------------------------
ICRA has revised the long-term rating to '[ICRA]D' from
'[ICRA]B+' for INR30.86 crore fund based limits of VRV Textiles
Limited. ICRA has also revised the short-term rating to '[ICRA]D'
from '[ICRA]A4' for INR3.38 crore non-fund based limits and
INR1.50 crore proposed long-term/short-term limits of VRV.

                         Amount
   Facilities          (INR Cr)    Ratings
   ----------          ---------   -------
   Long term fund        30.86     [ICRA]D revised from [ICRA]B+
   based limits

   Short term non-        3.38     [ICRA]D revised from [ICRA]A4
   fund based limits

   Proposed long-term/    1.50     [ICRA]D revised from
   short-term limits               [ICRA]B+/[ICRA]A4

The revision in the ratings primarily factor in the recent delays
in debt servicing following stretched liquidity condition on
account of net losses of INR3.75 crore in FY12. The ratings also
factor in 19% dip in operating income in FY12 in addition to net
losses in FY12 which led to significant deterioration in coverage
indicators, resulting in overall deterioration in financial risk
profile during the year. The ratings are further constrained by
the recent power holiday announcement of 3 days per week in
Andhra Pradesh (AP) which is likely to impact VRV's profitability
due to dependence on high cost merchant power and modest scale of
operations with 16,896 spindles capacity which restricts
economies of scale. However, the ratings favorably factor in the
experience of the promoter in cotton ginning, lint trading and
spinning activities and change in product profile to value added
m‚lange yarn from cotton yarn which is likely to result in
improvement and stability in profitability going forward. The
ratings also take comfort from the conversion of INR2.98 crore
redeemable preference share capital into equity share capital
during FY12 and proximity to a major cotton growing area and
lower power tariffs in the state with fiscal incentives offered
by the AP state government. Timely debt servicing would however
be the key rating driver over the near term.

VRV Textile Limited, promoted in the year 2006, started its
operations with manufacturing of cotton yarn and gradually
shifted to the manufacturing of m‚lange* yarn. Since June, 2012
the company is fully engaged in manufacturing of m‚lange yarn.
Its primary customers are in the hosiery segment in domestic
market. Currently, VRV has an installed capacity of 16,896
spindles.



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


SMARTFREN TELECOM: Fitch Junks Rating on IDR603 Billion Bond
------------------------------------------------------------
Fitch Ratings has assigned Indonesia-based PT Smartfren Telecom
Tbk a National Long-term Rating of 'CC(idn)'.  At the same time,
Fitch has also assigned Smartfren's IDR603bn bond (originally
IDR675bn), issued in 2007 by PT Mobile-8 Telecom Tbk, a National
Rating of 'CC(idn)'.

Smartfren's ratings reflect its weak liquidity position arising
from sustained poor cash flow generation; EBITDA has been
negative since 2008. Despite Smartfren's improving operating
performance and its expectations of a turnaround in 2013, Fitch
believes further new funding requirements would continue to arise
until 2015 as cash flows from operations are unlikely to be able
to meet obligations in these years.

Smartfren does not currently have funds in place to meet its
debt, interest and lease obligations in 2013.  Fitch believes
that Smartfren is unlikely to be able to raise new debt funding
and the company is relying on funds from the future issue of
equity-like mandatory convertible bonds (MCBs).

Although Smartfren has received periodic funding from MCB
issuance since January 2011, in its analysis Fitch cannot rely on
further similar cash injections as these investors' willingness
and ability to continue to fund Smartfren cannot be assessed,
particularly given the company's low equity value.  In general,
due to the volatility and uncertainty of equity valuations Fitch
does not give credit for future equity injections unless there is
a very high degree of certainty about future receipt of funds.
This would normally have to be evidenced by an underwritten
rights issue, an unconditional sale agreement for new shares with
a creditworthy buyer or a stated policy of support from a parent
which has the demonstrated financial resources to provide the
equity funding.

To reduce its leverage, Smartfren has previously undertaken debt-
for-equity swaps.  Where creditors face a material reduction in
terms from such a swap, it is generally classified as distressed
debt exchange (DDE) under Fitch's methodology.  A DDE would lead
to the company being assigned a Restricted Default ('RD(idn)')
National Long-Term rating.  Fitch believes it is possible that
Smartfren's management may offer further debt-for-equity swaps to
creditors in the future.

What Could Trigger A Rating Action?

Positive: Future developments that may, individually or
collectively, lead to positive rating action include:

  -- Improvements in both trading and liquidity

Negative: Future developments that may, individually or
collectively, lead to negative rating include:

  -- Failure to secure new funding to meet obligations
  -- Announcement of a further debt-for-equity swap offer, likely
     to be considered a DDE



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


SOUTH CANTERBURY: Trial Call-Over Set For January 25
----------------------------------------------------
Emma Baile at stuff.co.nz reports that the five men alleged to be
involved in the biggest white-collar crime in New Zealand through
South Canterbury Finance have been committed to a trial call-over
on January 25 next year.

stuff.co.nz says the five face 21 charges worth NZ$1.7 billion,
which were brought by the Serious Fraud Office last December.

According to the report, the registrar at Timaru District Court
confirmed that the defendants -- Graeme Brown, Terry Hutton,
Lachie McLeod, Edward Sullivan and Robert White -- have been
remanded on bail until the trial.

A post committal conference is scheduled for (Monday) November 5
at 9:00 a.m.  A post committal conference occurs after an accused
is committed for trial, where the parties' counsel may agree to a
conference to define the issues in dispute, stuff.co.nz
discloses.

Judge Saunders has refused any television or photographic
coverage of the defendants while attending at the courthouse for
the purpose of signing a bail bond, the report adds.

                      About South Canterbury

Based in New Zealand, South Canterbury Finance Limited
(NZE:SCFHA) -- http://www.scf.co.nz/-- was engaged in the
provision of financial services.  The Company's principal
activities were borrowing funds from public and institutional
investors and on lending those funds to the business, plant and
equipment, property, rural and consumer sectors.  It typically
advanced funds by means of hire purchase, floor plans, leasing of
plant, vehicles and equipment, personal loans, business term
loans and revolving credit facilities, mortgages against
property, and other financial instruments, including consumer
loan insurance.

On Aug. 31, 2010, Trustees Executors Limited, as trustee for
South Canterbury Finance charging group, appointed Kerryn Downey
and William Black of McGrathNicol as receivers of the charging
group's secured assets.

"As Trustee, we have had South Canterbury Finance under
heightened surveillance since 2008.  As part of that, SCF was
granted a Trustee waiver in February 2010 to allow it time to
recapitalize.  Unfortunately, the Company's Directors have
advised us that they have not been successful with respect to a
recapitalization and requested us to appoint a receiver.  At this
point we, as Trustee, agree that it is the best interests of
debenture, deposit and bond holders to do that," said Yogesh
Mody, Southern Regional Manager for Trustees Executors Limited.

The New Zealand government repaid South Canterbury's 35,000
depositors and stockholders NZ$1.6 billion under the Crown
retail deposit guarantee scheme.


STRUCTURED FINANCE: To Pay 25% to Some Investors
------------------------------------------------
stuff.co.nz reports that Structured Finance will pay some of its
investors 25c in the dollar after they voted to accept a
settlement offer from the company's owner.

But the deal excluded the bulk of debenture stock, casting doubt
on potential recoveries for investors in defunct First Step funds
owed close to NZ$30 million, the report says.

stuff.co.nz says Structured Finance, owned by interests
associated with Auckland financier Martyn Reesby, owed debenture
investors about NZ$32.7 million after defaulting on its debts in
May 2009.

According to the report, the company has failed to meet any of
its scheduled repayments under a moratorium agreement, which
should have returned 60c in the dollar, and the final due date
was extended to October 31 this year.

stuff.co.nz notes the 25c offer, which excludes interest due, was
made only to public investors owning about 10% of the debentures.
The other 90% is owed to investors in the First Step fund
structure marketed by failed advisory firm Money Managers and
frozen in 2006.

Structured Finance's trustee, Foundation, told BusinessDay it was
up to First Step's trustee to decide what to do with its stock,
stuff.co.nz adds.

Structured Finance Ltd is a New Zealand-based property lender.



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


* Fitch Published Edition of AP Monthly Newsletter
--------------------------------------------------
Fitch Ratings has published the latest edition of its Asia-
Pacific monthly newsletter.  The 'Asia-Pacific Monthly' is one of
the most viewed reports on the Fitch website.

Uncertainty about the global economic outlook and its impact
remained the key theme in September, which also saw Fitch
downgrade its growth forecasts for Asia's two economic giants,
India and China, in "Fitch: Weaker Global Growth Outlook Despite
Monetary Policy Stimulus" and "Fitch Cuts China, India 2012
Growth Forecasts as Risks to Global Recovery Mount" (both dated
27 September 2012).  Other related commentaries are "Fitch:
Eurozone Exposure Not A Key Risk For Most APAC Corporates" (11
September 2012), and "Fitch: Growing Caution for APAC Banks as
GDP Growth Slows" (17 September 2012).

China was on Fitch's radar in "Fitch: Hong Kong Banks' China
Lending to Slow" (27 September 2012) and "Fitch: Chinese Banks'
Balance Sheet Growth A Concern" (4 September 2012).

Financial institutions were corporates active issuers in Asia-
Pacific bond markets in September. Fitch published rating actions
on several transactions including "Fitch Rates CITIC Bank
International's Subordinated Notes 'BBB-(EXP)'", "Fitch Rates NH
Bank's GMTN Programme 'A' and Notes 'A(EXP)'", "Fitch Rates
Bangkok Bank's USD Senior Notes 'BBB+'", "Fitch Rates Siam
Commercial Bank's Senior Notes 'BBB+'", "Fitch Rates China
Hongqiao's USD Senior Unsecured Notes 'BB(EXP)'", and "Fitch
Rates BOC Aviation's Senior Notes 'A-(EXP)'".



                             *********

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.


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

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

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

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

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





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