TCRAP_Public/130617.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

             Monday, June 17, 2013, Vol. 16, No. 118


                            Headlines


A U S T R A L I A

GREAT SOUTHERN: Clifton Hall Appointed as Liquidators
LIBERTY SERIES 2013-1: Class E Notes Gets S&P's BB Prelim. Rating
RUSHLYN PTY: James' Home Services Franchise Goes Into Liquidation


C H I N A

AMERICAN ORIENTAL: Weinberg & Company Raises Going Concern Doubt
GEMDALE CORP: S&P Corrects Ratings on Sr. Unsec. Notes to 'cnBB+'
GENERAL STEEL: Incurs US$42K Net Loss in June 30 Quarter
* Possible China Tariff No Immediate Threat to European Carmakers


I N D I A

BURGUNDY LIFESTYLE: CRISIL Cuts Ratings on INR52MM Loan to 'B+'
FAHIM TANNING: CRISIL Assigns 'B' Ratings to INR37.5MM Loans
GAYATRI INDUSTRIES: CRISIL Assigns 'B+' Ratings to INR140MM Loans
GENERIC ENG'G: CRISIL Rates INR60MM Cash Credit at 'B+'
KAILASH STEEL: CRISIL Assigns 'B' Ratings to INR80MM Loans

KAISER CONSTRUCTIONS: CRISIL Rates INR10MM Cash Credit at 'B+'
QRS MARKETING: CRISIL Rates INR67.5MM Cash Credit at 'B+'
SAI ENGICON: CRISIL Rates INR25MM Cash Credit at 'B+'
SCHALTECH AUTOMATION: CRISIL Ups Ratings on INR70MM Loans to 'B'
TEAMEC CHLORATES: CRISIL Cuts Ratings on INR503MM Loans to 'D'

T R CHEMICALS: CRISIL Lowers Ratings on INR150MM Loans to 'D'
* Fitch Revises Outlook on 10 Indian FIs' to Stable


I N D O N E S I A

PAKUWON JATIS: Moody's Upgrades CFR to B1; Outlook is Stable


N E W  Z E A L A N D

DOMINION FINANCE: Two Former Directors Get Home Detention
ROSS ASSET: Investors Relieved at David Ross Arrest


X X X X X X X X

* High-Yield Bond Issuance for EMEA Sectors Top $60-Bil. in May
* Looser Insurance Controls Increases Risks for Creditors
* Oversupply Keeps Shipping Industry Outlook at Negative


                            - - - - -


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


GREAT SOUTHERN: Clifton Hall Appointed as Liquidators
-----------------------------------------------------
Timothy Clifton and Mark Hall of Clifton Hall were appointed as
Joint and Several Liquidators of Great Southern Landscape Supplies
Pty Ltd on 11 June 2013.

The first meeting of creditors will be held at 1:00 p.m. on
June 21, 2013 in the offices of Clifton Hall, Level 1, 12 Gilles
Street, in Adelaide.


LIBERTY SERIES 2013-1: Class E Notes Gets S&P's BB Prelim. Rating
-----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its preliminary
ratings to the seven classes of small-ticket commercial mortgage-
backed, floating-rate, pass-through notes to be issued by Liberty
Funding Pty Ltd. in respect of Liberty Series 2013-1 SME.

The preliminary ratings reflect:

   -- The two-tier structure of the transaction.  The issuer will
      use the proceeds of the notes to purchase the notes to be
      issued by Secure Funding Pty Ltd in its capacity as trustee
      of Liberty Series 2013-1 SME Trust (trust notes).  The
      tenor of the notes will match the tenor of the trust notes.

   -- 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.

   -- The note subordination provided for the class A1 notes,
      which is equal to at least 34.2% of the A$250 million notes
      to be issued; class A2 notes, 23.0%; class B notes, 16.2%;
      class C notes, 10.2%; class D notes, 6.4%; class E notes,
      5.0%; and class F notes, 3.4%.

   -- A liquidity facility to support noteholder payments and
      senior fees, equal to 3.0% of the outstanding balance of
      the invested amount of the rated notes and the stated
      amount of the class G notes, amortizing to a floor of
      A$750,000.

   -- Principal draws, as an additional form of liquidity.
      Principal collections then can be utilized as an additional
      form of liquidity to meet any short-term liquidity
      shortfalls.

   -- The provision of the guarantee fee reserve account
      established and maintained through the trapping of excess
      spread on each payment date up to a maximum limit of
      A$1,000,000.  The reserve account may be utilized to meet
      current loan losses, and/or as liquidity support for
      required payments.

   -- The interest-rate swap agreement with Westpac Banking Corp.
      to hedge any receipts from fixed-rate mortgage loans
      against the floating-rate obligations of the issuer trust.

A copy of Standard & Poor's complete report for Liberty Series
2013-1 SME can be found on Global Credit Portal, Standard & Poor's
Web-based credit analysis system, at:

                 http://www.globalcreditportal.com

The issuer has not informed Standard & Poor's (Australia) Pty
Limited whether the issuer is publically disclosing all relevant
information about the structured finance instruments the subject
of this press release or whether relevant information remains non-
public.

          STANDARD & POOR'S 17G-7 DISCLOSURE REPORT

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

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

        http://standardandpoorsdisclosure-17g7.com/1609.pdf

                      REGULATORY DISCLOSURES

Please refer to the initial rating report for any additional
regulatory disclosures that may apply to a transaction.

PRELIMINARY RATINGS ASSIGNED

Class     Rating        Amount (mil. A$)
A1        AAA (sf)      164.5
A2        AAA (sf)       28.0
B         AA (sf)        17.0
C         A (sf)         15.0
D         BBB (sf)        9.5
E         BB (sf)         3.5
F         B (sf)          4.0
G         N.R.            8.5
N.R.--Not rated.


RUSHLYN PTY: James' Home Services Franchise Goes Into Liquidation
-----------------------------------------------------------------
Cara Waters at SmartCompany reports that the parent company of
national franchise James' Home Service has gone into liquidation
and moved to terminate all franchise agreements with its over 200
franchisees.

Ann Meagher -- anne.meagher@svp.com.au -- of SV Partners was
appointed as liquidator of Rushlyn Pty Ltd, which trades as James'
Home Services, in April this year.

James' Home Services has been trading since 1993 mainly in
Queensland but with a presence in New South Wales, Victoria and
Western Australia.

It has over 200 franchisees which operate James Home Cleaning,
James Carpet Cleaning, James Mobile Car Cleaning, James Mobile Dog
Grooming, James Lawn Mowing, Window & Exterior Cleaning, James
Pest Control, James Laundry & Ironing and James Coffee franchises.

According to the report, the franchisees were last week sent a
letter by Meagher requesting the mutual termination of the
franchise agreements between Rushlyn and their companies and
themselves personally.

SmartCompany relates that the letter warns the termination means
both parties agree they have no claim against the other.

"This does not, however, eliminate the requirement for any
outstanding State and Regional Master's fees up to the date of
termination to be remitted as per the franchise agreement," the
letter, obtained by SmartCompany, stated.

Following the liquidation, James' Home Services entered into a
contract to be sold to JHS Franchising Pty Ltd, which SmartCompany
understands is a company controlled by Robert James, the owner of
James' Home Services.

But this sale has now been terminated after being blocked by
James' Home Services secured creditor, the report relays.

Former James' Home Services franchisee, Colin Dorrian, told
SmartCompany that, essentially, James' Home Services is now no
longer operational, with 200 or more franchisees left with
potentially nothing but a load of cleaning or mowing equipment.



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


AMERICAN ORIENTAL: Weinberg & Company Raises Going Concern Doubt
----------------------------------------------------------------
American Oriental Bioengineering, Inc., filed on June 11, 2013,
its annual report on Form 10-K for the year ended Dec. 31, 2012.

Weinberg & Company, P.A., in Los Angeles, California, expressed
substantial doubt about American Oriental's ability to continue as
a going concern in their audit report on the Company's financial
statements for the year ended Dec. 31, 2012.  The independent
auditors noted that the Company has suffered recurring losses and
utilized significant cash in operations.  "In addition, at Dec.
31, 2012, the Company had a working capital deficiency and its
convertible notes were in default."

The Company reported a net loss of $59.7 million on $145.1 million
of revenues in 2012, compared with a net loss of $68.5 million on
$212.7 million of revenues in 2011.

The Company's balance sheet at Dec. 31, 2012, showed
$446.3 million in total assets, $118.7 million in total
liabilities, and shareholders' equity of $327.6 million.

                          Default Notice

On Feb. 19, 2013, the Company received a notice of acceleration
under the terms of the Company's 5.00% Convertible Senior Notes
due 2015 issued pursuant to an Indenture, dated as of July 15,
2008, between the Company and Wells Fargo Bank, National
Association, as Indenture Trustee.  The notice was sent by certain
holders of the Senior Notes that together hold more than 25% of
the aggregate principal amount of the Senior Notes.  The notice
states that the default is the result of the Company's failure to
(A) pay to the holders under the terms of the Indenture accrued
interest due and payable on each of July 16, 2012, and Jan. 15,
2013, which failure to pay continued for a period of 30 days after
July 16, 2012, and Jan. 15, 2013, respectively, and (B) provide,
pursuant to the terms of the Indenture, a notice of the
termination of trading and delisting of the Company's common stock
by the New York Stock Exchange.  As of March 4, 2013, the
aggregate principal amount of the Senior Notes, and unpaid, but
accrued interest was $53,010,424.

A copy of the Form 10-K is available at http://is.gd/2gBdEk

American Oriental Bioengineering, Inc., is a China-based,
vertically integrated pharmaceutical company dedicated to
improving health through the development, manufacture and
commercialization of a broad range of pharmaceutical and
healthcare products.


GEMDALE CORP: S&P Corrects Ratings on Sr. Unsec. Notes to 'cnBB+'
-----------------------------------------------------------------
Standard & Poor's Ratings Services corrected its Greater China
regional scale ratings on the senior unsecured notes by
subsidiaries of Gemdale Corp. to 'cnBB+' from 'cnBBB-'.  S&P is
amending the Greater China scale rating after discovering an
administrative error when the ratings were first assigned on
July 19, 2012 (see Gemdale Corp.'s Proposed Senior Unsecured Notes
Assigned 'BB-' Rating), Nov. 6, 2012 (see Gemdale Corp.'s Proposed
Senior Unsecured Notes Assigned 'BB-' And 'cnBBB-' Ratings), and
March 14, 2013 (see Gemdale Corp.'s Proposed Senior Unsecured
Notes Assigned 'BB-' And 'cnBBB-' Ratings).  The ratings on
Gemdale (BB+/Stable/--; cnBBB+/--) and the 'BB-' global scale
issue rating on the notes were not affected.


GENERAL STEEL: Incurs US$42K Net Loss in June 30 Quarter
---------------------------------------------------------
General Steel Holdings, Inc., filed its quarterly report on Form
10-Q, reporting a net loss of $42,129 on $780,683 of total sales
for the three months ended June 30, 2012, compared with a net loss
of $35,593 on $1.1 million of total sales for the three months
ended June 30, 2011.

The Company reported a net loss of $97,877 on $1.4 million of
total sales for the six months ended June 30, 2012, compared with
a net loss of $49,164 on $1.8 million of total sales for the six
months ended June 30, 2011.

The Company's balance sheet at June 30, 2012, showed $2.8 million
in total assets, $3.1 million in total liabilities, and a
stockholders' deficit of $302,050.

The Company had an accumulated deficit of $290,244 and a
shareholders' deficit of $302,050 as of June 30, 2012.

A copy of the Form 10-Q is available at http://is.gd/ABQK77

General Steel Holdings, Inc., was incorporated on Aug. 5, 2002, in
the State of Nevada.  The Company is headquartered in Beijing,
China and operates a portfolio of steel companies serving various
industries in the People's Republic of China.


* Possible China Tariff No Immediate Threat to European Carmakers
-----------------------------------------------------------------
Fitch Ratings says that sales and earnings of some European auto
manufacturers including BMW, Daimler AG ('A-'/Stable) and
Volkswagen AG's ('A-'/Positive) Audi could be impacted by the
reported trade dispute between the EU and China and potential
import tariff on premium vehicles. Other European groups have more
limited sales in China and, besides, should not be affected by
this measure in light of their absence from the premium market.

"However, we do not anticipate any immediate impact on ratings
from this event if it were to materialise. Daimler and Volkswagen
have sufficient headroom in their current ratings to accommodate a
temporary and mild erosion of their profitability. Nonetheless, a
long-lasting and onerous additional duty could have a heavier
impact on profitability and in turn, on ratings," Fitch says.

China represents a material and critical source of earnings for
BMW, Daimler and Audi. Any decline of sales would have an impact
on their profitability and cash generation, as imported cars
generate cash not trapped at the JV in China contrary to sales of
vehicles produced locally with a Chinese partner. Import tariffs
from China on US-built BMW X5 and Mercedes M-class had already hit
these groups in 2011.

An extra import duty would make German high-end cars even more
expensive and would likely deter some customers or make them
choose a smaller engine or version, for which profitability is
lower. In addition, the majority of BMW's and Daimler's imported
cars include their high-end and most profitable vehicles such as
the 7-series and S-class. Overall, about half of BMW's and
Daimler's cars sold in China are imported. The rest of
Volkswagen's brands' sales could also be affected, although to a
much lesser extent.

However, and depending on the final tariff rate if it were
confirmed, we believe that customers of the most expensive cars
may not be materially affected by an additional tax. Besides, such
customers have no real alternative option in the local market to
purchase a premium car.

Several press reports in the past few days have commented about
talks in China to impose import duties on premium European cars
following complaints of "dumping" for cars with more than 2.0
litres engines sold in China.



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


BURGUNDY LIFESTYLE: CRISIL Cuts Ratings on INR52MM Loan to 'B+'
---------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
Burgundy Lifestyle Pvt Ltd to 'CRISIL B+/Stable/CRISIL A4' from
'CRISIL BB-/Stable/CRISIL A4+'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit               52      CRISIL B+/Stable (Downgraded
                                     from 'CRISIL BB-/Stable')

   Letter of Credit          62.5    CRISIL A4 (Downgraded from
                                     'CRISIL A4+')

   Packing Credit            34.5    CRISIL A4 (Downgraded from
                                     'CRISIL A4+')

The rating downgrade reflects the weakening of Burgundy's
liquidity because of a stretch in its working capital cycle. Its
receivables have deteriorated to between seven and eight months of
sales in 2012-13 (refers to financial year, April 1 to
March 31), as against about four months historically, leading to
the unprecedented stretch in its working capital cycle. As a
result, its fund-based bank limits remain fully utilised with
instances of overdrawn limits. CRISIL believes that Burgundy's
liquidity will remain weak over the medium term as its receivables
are likely to take some time to reduce.

The ratings also reflect Burgundy's working-capital-intensive and
small scale of operations in the intensely competitive ready-made
garments industry. These rating weaknesses are partially offset by
the extensive experience of the company's promoters in the garment
industry.

Outlook: Stable

CRISIL believes that Burgundy will continue to benefit over the
medium term from its promoters' extensive industry experience and
its strong relationships with its customers and vendors. The
outlook may be revised to 'Positive' in case of substantial and
sustainable improvement in the company's liquidity, backed by
improvement in its working capital cycle, higher-than-expected net
cash accruals, and infusion of long-term funds. Conversely, the
outlook may be revised to 'Negative' if Burgundy reports a steep
decline in its profitability margins, or there is significant
deterioration in its capital structure, most likely because of
larger-than-expected working capital requirements.

Burgundy's production facilities were initially set up by Prime
Textiles Ltd in Tirupur (Tamil Nadu).  In 2008, the entire
production facility was acquired by the Kolkata (West Bengal)-
based Jhawar group. Burgundy manufactures high-end T-shirts and
innerwear under various brands, including Burgundy. It also
manufactures products under the brands of its customers.

Burgundy reported a profit after tax (PAT) of INR2.5 million on
net sales of INR939.9 million for 2011-12, as against PAT of
INR4.8 million on net sales of INR897.4 million for 2010-11.


FAHIM TANNING: CRISIL Assigns 'B' Ratings to INR37.5MM Loans
------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable/CRISIL A4' ratings to the
bank facilities of Fahim Tanning Company.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Term Loan                7.5      CRISIL B/Stable
   Cash Credit             30.0      CRISIL B/Stable
   Letter of Credit        12.5      CRISIL A4

The ratings reflect FTC's small scale of and working-capital-
intensive operations, and the firm's below-average financial risk
profile constrained by its small net worth. These rating
weaknesses are partially offset by the benefits that FTC derives
from the extensive experience of its proprietor in the leather
industry.

Outlook: Stable

CRISIL believes that FTC will continue to benefit over the medium
term from its promoters experience in leather industry. The
outlook may be revised to 'Positive' in case of significant
improvement in its scale of operations while maintaining
profitability or in case of improvement in working capital
management or infusion of substantial capital by promoters leading
to improvement in financial risk profile particularly liquidity.
Conversely, a significant stretch in FTC's working capital cycle,
lower-than-expected accruals, withdrawal of substantial capital by
promoters or substantial debt-funded capital expenditure, leading
to further deterioration in its overall financial risk profile,
especially liquidity, may lead to a revision in the outlook to
'Negative'.

Constituted in 1982, FTC is engaged in the processing of raw hides
into semi-finished and finished leather. The company has a tannery
in Ambur; Tamil Nadu. The day-to-day activities of the firm are
looked after by its proprietor Mr. Rasheed Ahmed.


GAYATRI INDUSTRIES: CRISIL Assigns 'B+' Ratings to INR140MM Loans
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Gayatri Industries.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Proposed Long-Term       55       CRISIL B+/Stable
   Bank Loan Facility

   Cash Credit              85       CRISIL B+/Stable

   Letter of Credit         10       CRISIL A4

The ratings reflect GI's average financial risk profile marked by
a small net worth, high gearing and weak debt protection metrics,
its modest scale of operations in the intensely competitive
agricultural (agro) commodities industry and its low operating
margin with susceptibility to fluctuations in raw material prices.
These rating weaknesses are partially offset by the extensive
experience of GI's promoters in the agro commodities business and
their funding support.

CRISIL has treated unsecured loans of INR30 million extended to
Gayatri by the promoters and other affiliates as neither debt nor
equity because these loans are interest free and promoters have
undertaken to retain these loans in the business over the medium
term.

Outlook: Stable

CRISIL believes GI will continue to benefit over the medium term
from its promoters' extensive experience in the agro commodities
business and their funding support. The outlook may be revised to
'Positive' in case of a substantial improvement in the firm's
financial risk profile, driven most likely by higher-than-expected
cash accruals or capital infusion, along with efficient working
capital management. Conversely, the outlook may be revised to
'Negative' in case of lower-than-anticipated cash accruals or
larger-than-expected working capital requirements, or GI
undertakes any large, debt-funded capital expenditure programme,
exerting further pressure on its liquidity.

Set up in 1999 by Mr. Ajay Agrawal, GI processes pulses, mainly
chana dal and toor dal. Its manufacturing facility is located in
Nagpur (Maharashtra).


GENERIC ENG'G: CRISIL Rates INR60MM Cash Credit at 'B+'
-------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable /CRISIL A4' rating to
the bank facilities of Generic Engineering and Construction Pvt
Ltd.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit              60       CRISIL B+/Stable
   Letter of Credit        100       CRISIL A4

The ratings reflect GECPL's weak financial risk profile, marked by
a small net worth, high gearing, and moderate debt protection
metrics. The ratings also factor in the company's small scale of
operations in a highly competitive industry, and geographical
concentration in its revenue profile. These rating weaknesses are
partially offset by the extensive experience of GECPL's promoters
in the civil construction industry, and its moderate order book.

Outlook: Stable

CRISIL believes that GECPL will continue to benefit over the
medium term from its promoters' extensive experience in the civil
construction industry and current moderate order book. The outlook
may be revised to 'Positive' if the company reports substantial
growth in its scale of operations and cash accruals, while
maintaining its profitability and working capital cycle.
Conversely, the outlook may be revised to 'Negative' in case of a
decline in GECPL's revenues or deterioration in its profitability,
significantly impacting its financial risk profile.

GECPL was incorporated in 1994, promoted by Mr. Manish Patel and
Mr. Navin Patel. The company is a civil contractor based in Mumbai
and undertakes contracting and subcontracting of commercial and
real estate projects only in Mumbai.

GECPL, on a provisional basis, reported a profit after tax (PAT)
of INR14.1 million on net sales of INR430.6 million for 2011-12
(refers to financial year, April 1 to March 31); it had reported a
PAT of INR9.6 million on net sales of INR351.9 million for 2010-
11.


KAILASH STEEL: CRISIL Assigns 'B' Ratings to INR80MM Loans
----------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Kailash Steel Rolling Mills.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Cash Credit               35      CRISIL B/Stable
   Term Loan                 45      CRISIL B/Stable

The rating reflects KSRM's weak financial risk profile, marked by
high gearing and a small net worth, and its susceptibility to
intense industry competition and to volatility in raw material
prices. KSRM is also exposed to project implementation risk. These
rating weaknesses are partially offset by the extensive experience
of KSRM's promoters, and its established customer base, in the
iron and steel industry.

Outlook: Stable

CRISIL believes that KSRM will continue to benefit over the medium
term from its promoters' extensive experience, and its established
customer base, in the iron and steel industry. The outlook may be
revised to 'Positive' if KSRM commences production at its new unit
in a timely manner, and registers higher-than-expected revenues
while improving its operating margin. Conversely, the outlook may
be revised to 'Negative' in case of delay in commercialisation of
the project and cost overrun, adversely impacting the firm's debt
repayment ability, or if it undertakes a larger-than-expected
debt-funded capital expenditure programme.

KSRM was established in 2008 by Mr. Tilak Raj Bardeja in Mandi
Gobindgarh (Punjab). The firm had been operating a rolling mill on
lease till March 2013, manufacturing steel rounds and flats,
mainly hot-rolled strips and bars. It is now setting up its own
facility in Mandi Gobindgarh expected to commence commercial
production in June 2013.


KAISER CONSTRUCTIONS: CRISIL Rates INR10MM Cash Credit at 'B+'
--------------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Kaiser Constructions Engineers &
Contractors.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Proposed Short-Term       45      CRISIL A4
   Bank Loan Facility

   Bank Guarantee            45      CRISIL A4

   Cash Credit               10      CRISIL B+/Stable

The ratings reflect KCEC's marginal scale of operations and
geographic concentration in its revenue profile. These rating
weaknesses are partially offset by the extensive experience of
KCEC's partners in the civil construction industry and KCEC's
moderate financial risk profile marked by above average debt
protection metrics; however constrained by small net worth.

Outlook: Stable

CRISIL believes that KCEC will continue to benefit over the medium
term from its partners' extensive experience in the civil
construction industry. The outlook may be revised to 'Positive' if
KCEC reports significantly higher-than-expected accruals, most
likely due to improvement in its scale of operations and
profitability while maintaining its working capital requirements,
leading to improvement in its financial risk profile. Conversely,
the outlook may be revised to 'Negative' if KCEC does not complete
its ongoing projects on time, or if its order book declines,
leading to deterioration in its working capital management and
hence in its financial risk profile.

KCEC, established in 2003, is engaged in civil construction and
undertakes projects for the state government authorities in New
Delhi and Uttar Pradesh. It is based in Etah (Uttar Pradesh).

For 2011-12 (refers to financial year, April 1 to March 31), KCEC
reported a book profit of INR1.1 million on net sales of INR126.5
million, against a book profit of INR0.6 million on net sales of
INR78.7 million for 2010-11.


QRS MARKETING: CRISIL Rates INR67.5MM Cash Credit at 'B+'
---------------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank-loan ratings of QRS Marketing Private Limited.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee            5.0     CRISIL A4
   Cash Credit              67.5     CRISIL B+/Stable

The ratings reflect QMPL's below-average financial risk profile,
marked by a high gearing and weak debt protection metrics, its
working-capital-intensive operations, and its geographic
concentration in revenue profile. These rating weaknesses are
partially offset by QMPL's established regional presence in Kerala
and its longstanding relationships with its suppliers.

Outlook: Stable

CRISIL believes that QMPL will continue to benefit over the medium
term from the extensive industry experience of its promoters and
its established regional presence in Kerala. The outlook may be
revised to 'Positive' if the company diversifies its revenue
profile or records higher-than-expected revenues and
profitability, leading to healthy accruals and, as a result,
improvement in its liquidity. Conversely, the outlook may be
revised to 'Negative' if QMPL contracts more-than-expected debt,
leading to further deterioration in its financial risk profile, or
extends any financial support to its group entities.

QMPL, incorporated in 1999, is a part of the QRS group. The
company is engaged in the distribution of lighting and domestic
appliances of Phillips India Limited and calculators of Casio
across Kerala. The company is managed by Mr. S Muralidharan and
his wife. The QRS group has been in the retailing business for
more than five decades.

QMPL reported a profit after tax (PAT) of INR1 million on net
sales of INR302 million for 2011-12 (refers to financial year,
April 1 to March 31), against a PAT of INR1 million on net sales
of INR253 million for 2010-11.


SAI ENGICON: CRISIL Rates INR25MM Cash Credit at 'B+'
-----------------------------------------------------
CRISIL has assigned its 'CRISIL B+/Stable/CRISIL A4' ratings to
the bank facilities of Sai Engicon and Construction Private
Limited.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee           100      CRISIL A4
   Cash Credit               25      CRISIL B+/Stable

The ratings reflect SEPL's modest scale of operations with large
geographic concentration of revenues and constrained liquidity on
account of investments in group concerns. These rating weaknesses
are partially offset by the company's moderate financial risk
profile, marked by low gearing and moderate debt protection
metrics; albeit, constrained by a modest net worth.

Outlook: Stable

CRISIL believes that SEPL's business risk profile will continue to
benefit from the established position of its promoters in the
construction industry in Bihar. The outlook may be revised to
'Positive' in case of substantial improvement in the company's
scale of operations due to a better flow of orders and timely
realisation of the debtors. Conversely, the outlook may be revised
to 'Negative' in case of decline in SEPL's scale of operations or
profitability, or in case any further funding support is extended
to the group companies or in case of significant increase in
SEPL's working capital requirements, resulting in its stretched
liquidity.

Incorporated in 2008, SEPL undertakes road construction activities
in Bihar. Set up by Mr. Ritesh Ranjan Singh and his wife Mrs.
Binita Singh, SEPL mainly executes projects for the road
construction department in Bihar and for Bihar Rajya Pul Nirman
Nigam Ltd and is a registered class I contractor.


SCHALTECH AUTOMATION: CRISIL Ups Ratings on INR70MM Loans to 'B'
----------------------------------------------------------------
CRISIL has upgraded its rating on the long-term bank facilities of
Schaltech Automation Pvt Ltd to 'CRISIL B/Stable' from 'CRISIL B-
/Stable', while reaffirming its rating on the short term bank
facilities at 'CRISIL A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee          245.00    CRISIL A4 (Reaffirmed)

   Bank Guarantee           50.00    CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Bank Guarantee           65.00    CRISIL A4 (Reaffirmed)

   Cash Credit              10.00    CRISIL B/Stable (Upgraded
                                     from 'CRISIL B-/Stable')

   Proposed Long-Term        5.00    CRISIL B/Stable (Upgraded
   Bank Loan Facility                from 'CRISIL B-/Stable')

   Secured Overdraft         5.00    CRISIL B/Stable (Upgraded
   Facility                          from 'CRISIL B-/Stable')

The rating upgrade reflects an improvement in SAPL's scale of
operations and its working capital management marked by an
improvement in its receivables leading to improved liquidity.
Although SAPL's liquidity has improved, it remains below-average
because of its small net worth and large working capital
requirements, resulting in high utilisation of its cash credit
limits.

The ratings reflect SAPL's modest scale of operations, and weak
financial flexibility driven by its large working capital
requirements and small net worth. These rating weaknesses are
partially offset by the extensive experience of SAPL's promoters
in industry and revenue visibility supported by its healthy order
book.

Outlook: Stable

CRISIL believes that SAPL will continue to benefit over the medium
term from its promoters' extensive industry experience, and its
revenue visibility supported by its healthy order book. The
outlook may be revised to 'Positive' if the company strengthens
its business risk profile supported by a significant increase in
its scale of operations and profitability, and improves its
working capital cycle, while it maintains its comfortable capital
structure, thereby strengthening its financial risk profile.
Conversely, the outlook may be revised to 'Negative' if SAPL
witnesses significant pressure on its revenues and profitability
or considerable delays in realisation of receivables, or
undertakes a larger-than-expected debt-funded capital expenditure
(capex) programme, thereby weakening its financial risk profile,
particularly its liquidity.

SAPL was set up in 1995 by Mr. D Raghunathan and Mrs. K
Raghunathan in Hyderabad (Andhra Pradesh). The company undertakes
turnkey projects for sub-power stations and transmission lines.
Until 2005, the company traded electrical components;
subsequently, it began undertaking turnkey contracts.


TEAMEC CHLORATES: CRISIL Cuts Ratings on INR503MM Loans to 'D'
--------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Teamec
Chlorates Limited to 'CRISIL D/CRISIL D' from 'CRISIL
B/Stable/CRISIL A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee            50      CRISIL D (Downgraded from
                                     CRISIL A4)

   Cash Credit               30      CRISIL D (Downgraded from
                                     CRISIL B/Stable)

   Long-Term Loan           423      CRISIL D (Downgraded from
                                     CRISIL B/Stable)

The rating downgrade reflects instances of delay by TCL in
servicing its term debt; the delays have been caused by the
company's weak liquidity. TCL has weak liquidity as its operations
are being adversely affected by power shortages in Andhra Pradesh
(region of its operations).

TCL also has a below-average financial risk profile, marked by a
highly leveraged capital structure and weak debt protection
metrics. However, the company benefits from the healthy demand
prospects of sodium chlorate in the domestic market, and its
promoter's extensive experience in the industrial chemical
products segment.

TCL, incorporated in 2009, manufactures sodium chlorate, which is
used as a bleaching agent in paper manufacturing. TCL commenced
operations in November 2011. Its manufacturing facility is in
Ongole (Andhra Pradesh). The company's daily operations are
managed by Mr. Suresh Krishnamoorthy Rao.

TCL reported a loss of INR15.3 million on total revenues of
INR40.2 million for 2011-12 (refers to financial year, April 1 to
March 31.


T R CHEMICALS: CRISIL Lowers Ratings on INR150MM Loans to 'D'
-------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of
T.R.Chemicals Ltd to 'CRISIL D/CRISIL D' from 'CRISIL C/CRISIL
A4'.

                           Amount
   Facilities            (INR Mln)   Ratings
   ----------            ---------   -------
   Bank Guarantee           10       CRISIL D (Downgraded from
                                     'CRISIL A4')

   Bill Purchase-           15       CRISIL D (Downgraded from
   Discounting Facility              'CRISIL C')

   Cash Credit              90       CRISIL D (Downgraded from
                                     'CRISIL A4')

   Letter of Credit         10       CRISIL D (Downgraded from
                                     'CRISIL C')

   Term Loan                23.8     CRISIL D (Downgraded from
                                     'CRISIL A4')

   Proposed Long-Term        1.2     CRISIL D (Downgraded from
   Bank Loan Facility                'CRISIL A4')

The downgrade reflects instances of delay by TRCL in repaying its
term loan instalment and interest on it. The delays have been
caused by the company's weak liquidity.

TRCL also has large working capital requirements marked by sharp
increase in inventory and marginal market share making TRCL
vulnerable to cyclicality in the steel industry. These credit
weaknesses are partially offset by the extensive experience of the
promoters in the steel industry.

TRCL was established as a private limited company in 1997,
promoted by Mr. Sanjeev Kapoor and Mr. Mukesh Kumar Agarwal. It
was subsequently reconstituted as a closely held limited company.
TRCL manufactures sponge iron and phenolic resins; the company's
facilities are based in Barpali (Orissa).

TRCL reported a profit after tax (PAT) of INR3.8 million on net
sales of INR264 million for 2011-12 (refers to financial year,
April 1 to March 31), as against a PAT of INR37.2 million on net
sales of INR472 million for 2010-11.


* Fitch Revises Outlook on 10 Indian FIs' to Stable
---------------------------------------------------
Fitch Ratings has revised 10 India-based financial institutions'
Outlook to Stable from Negative, while affirming their respective
ratings, including their 'BBB-' Long-Term (Issuer Default Ratings
(IDRs). These include six government banks (including an
international banking subsidiary of a government bank), two
private banks and two wholly owned government institutions.

The change in the Outlook on the IDRs follows the revision of the
Outlook on India's Long-Term Foreign- and Local-Currency IDRs to
Stable from Negative (see rating action commentary dated June 12,
2013 at www.fitchratings.com). The Outlook revision for all of the
entities is driven either by their Support Rating (SR) of '2' and
Support Rating Floor (SRF) of BBB- or by their Viability Rating
(VR) of 'bbb-'.

The affected banks are State Bank of India (SBI), Punjab National
Bank (PNB), Bank of Baroda (BOB), Bank of Baroda (New Zealand)
Limited (BOBNZ), Canara Bank (Canara), IDBI Bank Ltd. (IDBI),
ICICI Bank Ltd. (ICICI), Axis Bank (Axis), Export-Import Bank of
India (EXIM), and Housing and Urban Development Corporation Ltd.
(HUDCO).

KEY RATING DRIVERS - IDRs and VRs

The revision in Outlook for SBI, ICICI, BoB, PNB, Canara, IDBI,
EXIM and HUDCO, in line with the sovereign rating change, is
primarily driven by a strong propensity and ability to support the
banks if needed. SBI, ICICI, PNB, BOB, Canara and IDBI are large
domestic banks with a pan-India franchise and have a significant
share of the system's assets and deposits. BOBNZ's rating is
aligned with that of its parent BOB given strong explicit and
implicit linkages with its parent.

The SR and SRF of '2' and 'BBB-' for EXIM and HUDCO are driven by
their role as policy banks which are also supported by 100%
government ownership. Fitch notes though that among policy banks,
EXIM's loan book is almost entirely weighted towards its policy
goals.

ICICI's and Axis's VRs which are at 'bbb-' - the same level as the
sovereign's IDRs - also support the Outlook revision, due to their
steadily improving standalone credit profile despite difficult
market conditions. While asset quality pressures cannot be ruled
out - particularly from their infrastructure exposures - strong
funding and profitability coupled with robust capital position
provide adequate buffer against stress.

Fitch expects non-performing loans (NPLs) and restructured assets
to continue to rise in the financial year ending March 2014.
Government banks' stressed assets were at 11.59% as of end-2012
against the sector average of 9.61%. Asset quality of certain
government banks, such as PNB, has witnessed a sharp deterioration
which has put their VR under pressure. Further deterioration from
current levels will add further pressure which may lead to a
downgrade of their VR.

The ratings of the tier 1 subordinated bonds and upper tier 2
bonds are consistent with the approach taken for other similar
performing securities based on Fitch's criteria.

RATING SENSITIVITIES - IDRs and VRs

Banks whose IDRs are driven by SRF see negative rating action if
either the sovereign rating or the Outlook is revised downward.
For banks whose IDRs are solely driven by VR and constrained by
the sovereign rating, a negative rating action on the sovereign or
the weakening of the VR may lead to a similar rating change on the
IDR. An upgrade to the sovereign rating may, for certain
systemically important banks, likely lead to an upgrade to the
IDRs, backed by higher SR and SRF. However, for banks whose IDRs
are driven by VR and are not constrained by the sovereign rating,
a sovereign upgrade may not necessarily lead to an upgrade unless
it is supported by its standalone credit strength.

RATING SENSITIVITIES - SRs and SRFs

The SRs and SRFs are determined by the agency's assessment of the
government's propensity and ability to support a bank/policy
institution, determined by its relative size and systemic
importance. A change in the government's ability to provide
extraordinary support due to a change in the sovereign ratings
would affect the SRs and SRFs. The SRs and SRFs will also be
impacted by any change in the government's willingness to extend
timely support.

The rating actions are as follows:

SBI:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at F3'
- Viability Rating affirmed at 'bbb-'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'
- USD5bn MTN programme affirmed at 'BBB-'
- USD400m perpetual tier 1 bonds affirmed at 'B'

PNB:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Viability Rating affirmed at 'bbb-'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'

BOB:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Viability Rating affirmed at 'bbb-'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'
- USD500m senior notes under MTN programme affirmed at 'BBB-'
- USD350m senior notes under MTN programme affirmed at 'BBB-'
- USD300m upper tier 2 notes under MTN programme affirmed at 'B+'

BOBNZ:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable from
  Negative
- Support Rating affirmed at '2'

Canara:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Viability Rating affirmed at 'bb+'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'
- USD2bn MTN programme affirmed at 'BBB-'
- Senior debt under MTN programme affirmed at 'BBB-'
- USD350m of senior notes under MTN programme affirmed at 'BBB-'
- USD250m upper tier 2 notes under MTN programme affirmed at 'B+'

IDBI:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Viability Rating affirmed at 'bb'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'

ICICI:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Viability Rating affirmed at 'bbb-'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'
- USD2.9bn senior notes affirmed at 'BBB-'
- USD1.5bn upper tier 2 bonds affirmed at 'B+'

Axis:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Viability Rating affirmed at 'bbb-'
- Support Rating affirmed at '3'
- Support Rating Floor affirmed at 'BB+'
- Foreign currency senior debt affirmed at 'BBB-'
- EUR2bn MTN programme affirmed at 'BBB-'
- USD1.6bn senior unsecured notes affirmed at 'BBB-'

EXIM:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'

HUDCO:
- Long-Term IDR affirmed at 'BBB-'; Outlook changed to Stable
  from Negative
- Short-Term IDR affirmed at 'F3'
- Support Rating affirmed at '2'
- Support Rating Floor affirmed at 'BBB-'



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


PAKUWON JATIS: Moody's Upgrades CFR to B1; Outlook is Stable
------------------------------------------------------------
Moody's Investors Service has upgraded the corporate family rating
of PT Pakuwon Jati Tbk to B1 from B2. The rating outlook is
stable.

Ratings Rationale:

"The upgrade reflects the strong performance of Pakuwon's
integrated developments consisting of condominiums, retail malls,
office towers and hotel over the last three years as well as a
significant growth in the company's recurring income base," says
Jacintha Poh, a Moody's Analyst.

Pakuwon's revenue increased to IDR2.2 trillion ($251 million) in
the 2012 financial year ended December-2012 (FY2012) from IDR700
billion ($67.6 million) in FY2009 due to the completion of
Gandaria City and Kota Kasablanka superblock developments in
Jakarta.

Operating cash flow also increased to IDR1.3 trillion ($148
million) from IDR87.6 billion ($8.5 million) in the same period.

The company's investment property portfolio is mainly spread
across three superblock developments -- Tunjungan City in
Surabaya, Gandaria City and Kota Kasablanka in Jakarta --
comprising of office buildings, retail malls and hotels.

The addition of the Kota Kasablanka Shopping Center in mid-2012
has resulted in recurring EBITDA of IDR489.9 billion ($51 million)
for FY2012 and a recurring EBITDA interest coverage ratio of about
2.0x.

The company's recurring EBITDA is expected to grow to around
IDR700 billion in FY2013 due to the first full-year contribution
from Kota Kasablanka Shopping Center.

"Pakuwon remains susceptible to cash flow volatility because of
its business strategy that focuses on large scale, high-rise
developments that entail high execution risk. However, the company
is now better positioned to weather any associated financial risks
owing to its stronger liquidity position, greater portion of
recurring income, and stronger brand name that attracts pre-
sales," adds Poh, who is also Moody's Lead Analyst for Pakuwon.

The development of properties for sales is typically backed by
cash flow from pre-sales, which mitigates financial risk. However,
the development of investment properties requires committed
funding from the company over lengthy construction periods of
about three to four years.

Nonetheless, Pakuwon had IDR1.66 trillion ($171 million) of cash-
on-hand at end-March 2013 -- approximately 69% of total revenue
recorded for the rolling 12-month period ending 31 March 2013 --
that serves as a buffer against any financial risk arising from
its development projects.

"Capital expenditure should increase in FY2013; land purchases,
new developments of brownfield projects and potential
acquisitions, as Pakuwon embarks on its next phase of expansion,"
adds Poh.

Pakuwon had 356 hectares (ha) of land bank as of 31 December 2012.
Of this total, 351 ha is located in Surabaya, where 1.9 ha has
been earmarked for the expansion of the Tunjungan City (Phase 5
and 6). The remaining land bank will be gradually utilized to
develop the Pakuwon City Township and Pakuwon New Town projects.

The land bank in Jakarta, amounting to 5 ha at end-FY2012, is
sufficient for development in at least the next five years; there
are plans for the next phase of expansion at Kota Kasablanka and
Gandaria City during this period. However, significant cash
outlays will be required for Pakuwon to expand in Jakarta beyond
its existing superblock projects.

The stable outlook reflects Moody's expectation that Pakuwon will
be well-supported by the recurring income from its investment
properties, as well as its ongoing discipline while pursuing its
growth strategy.

Upward rating pressure is unlikely over the near to medium term,
but could emerge if Pakuwon successfully implements its business
plans with sustained improvements in sales and cash flow
generation and also grows its recurring income base, while
maintaining solid liquidity in the form of cash balances and
committed facilities.

Credit metrics that will support an upgrade include adjusted
EBIT/interest coverage above 4.5x-5.0x, adjusted leverage below
35%-40%, and recurring EBITDA/interest exceeding 3.0x on a
sustained basis.

On the other hand, Pakuwon's rating could face downward pressure
if: (1) the company fails to implement its business plans; and (2)
there is a deterioration in the property market, leading to
protracted weakness in its operations and credit profile.

Moody's considers adjusted EBIT/Interest coverage of less than
3.5x, adjusted leverage of above 45-50%, and recurring
EBITDA/Interest of less than 2.0x on a sustained basis as
indications that a downgrade may be necessary.

The principal methodology used in these ratings was Moody's Global
Homebuilding Industry, published in March 2009.

PT Pakuwon Jati Tbk, listed on the Jakarta Stock Exchange and
controlled by the Tedja family, is engaged in the development,
management and operation of shopping centers, office buildings,
hotels, condominium towers and residential townships in Surabaya
and Jakarta. Its properties include Superblock Tunjungan City and
Pakuwon City Township in Surabaya, as well as Superblock Gandaria
City (83.3% shareholding) and Superblock Kota Kasablanka in South
Jakarta.



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


DOMINION FINANCE: Two Former Directors Get Home Detention
---------------------------------------------------------
APNZ reports that former Dominion Finance directors Robert Barry
Whale and Ann Butler were both sentenced to terms of home
detention in the High Court in Auckland on Jun 14, 2013, after
earlier pleading guilty to charges of misleading investors.

Justice Robert Dobson sentenced Mr. Whale to 12 months home
detention, 250 hours of community service and was ordered to pay
NZ$75,000 in reparations.

Ms. Butler received a nine month home detention sentence and was
ordered to pay NZ$300,000 in reparations and to do 80 hours of
community service.

According to the news agency, Mr. Whale was convicted on seven
charges under the Securities Act charges brought by the Financial
Markets Authority.  Ms. Butler had also pleaded guilty to charges
under the Act.

The charges related to untrue statements in the Dominion Finance
Group and North South Finance offer documents and advertisements.
These included prospectuses, investment statements and a
misleading newsletter to investors, the report notes.

                      About Dominion Finance

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

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

North South Finance went into receivership in July 2010.

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


ROSS ASSET: Investors Relieved at David Ross Arrest
---------------------------------------------------
The New Zealand Herald reports that David Ross' out-of-pocket
investors expressed relief when the alleged Ponzi-schemer was
arrested and charged on June 13, but he was bailed back to his
luxury home.

The Herald says Wellington-based Ross has been charged by the
Serious Fraud Office with theft by a person in a special
relationship, and false accounting.

The 63-year-old was remanded on bail on June 13 to his family home
in Woburn, Lower Hutt, the report relates.

The financial adviser's property has a capital value of
NZ$2.2 million, the Herald reports citing QV.

The Herald notes that while Mr. Ross is living in the home, it is
subject to freezing orders made in the High Court last year,
together with the group assets of Ross Asset Management (RAM).
This asset freeze followed a Financial Markets Authority raid on
RAM last November after investors complained about problems
getting their money out, the report states.

Records sent to investors suggested RAM had shareholdings with a
value of NZ$450 million, but receivers could find only
NZ$10.2 million in the firm's accounts, the report says.

According to the Herald, Bruce Tichbon, from the Ross Asset
Management Investors' Group, said many of his members welcomed the
move.

"A lot of people are expressing relief that something is happening
at last . . . but he [Ross] hasn't been locked in a cell, he's
been bailed back to his luxury pad in Woburn Rd.," the report
quotes Mr. Tichbon as saying.

In their latest update to investors, the Herald relates, RAM's
liquidators said 207 of Mr. Ross' clients got more money out of
the firm than they put in.

No legal action has been started to claw back any of these funds,
the report says.

"The amount potentially recoverable through clawback is not yet
quantifiable," the liquidators said last week, "but figures
publicly mentioned of over $100 million are likely to be
materially wrong," the Herald reports.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 8, 2012, the High Court appointed PricewaterhouseCoopers
partners John Fisk and David Bridgman as Receivers and Managers
to Ross Asset Management Limited and nine other associated
entities following application by the Financial Markets
Authority.  The associated entities are:

     * Bevis Marks Corporation Limited;
     * Dagger Nominees Limited;
     * McIntosh Asset Management Limited;
     * Mercury Asset Management Limited;
     * Ross Investment Management Limited;
     * Ross Unit Trusts Management Limited;
     * United Asset Management Limited;
     * Chapman Ross Trust;
     * Woburn Ross Trust;
     * Ace Investments Limited or Ace Investment Trust Limited or
       Ace Investment Trust;
     * Vivian Investments Limited; and
     * Ross Units Trusts Limited.

The Receivers and Managers have also been appointed to Wellington
investment adviser David Robert Gilmore Ross personally.

Mr. Fisk said they have identified investments of nearly
NZ$450 million held on behalf of more than 900 investors across
1,720 individual accounts.

The High Court in mid-December ordered John Fisk and David
Bridgman be appointed liquidators of these companies:

   -- Ross Asset Management Limited (In Receivership);
   -- Bevis Marks Corporation Limited (In Receivership);
   -- McIntosh Asset Management Limited (In Receivership); and
   -- Mercury Asset Management Limited (In Receivership).



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


* High-Yield Bond Issuance for EMEA Sectors Top $60-Bil. in May
---------------------------------------------------------------
With 13 new public ratings and $11 billion of high-yield bond
issuance in May, the year-to-date issuance by speculative-grade
rated companies in EMEA has reached $60 billion, says Moody's in
the June edition of its "High Yield Interest -- European Edition"
publication.

"This figure compares with the total of $70 billion for the whole
of 2012, which was a record year," says Chetan Modi, head of
Moody's European leveraged finance team. "Although the pace of
issuance may now decrease in the near term given current market
turbulence, we still see a strong pipeline that is driven by
refinancing needs and the overriding trend of bank
disintermediation."

The June edition also reveals that Moody's EMEA speculative-grade
universe now exceeds 300 names, with the growth in the rated EMEA
speculative-grade market being led by LBOs that are mostly
refinancing loans with bonds.


* Looser Insurance Controls Increases Risks for Creditors
---------------------------------------------------------
The global increase in cases of regulatory forbearance in the
insurance industry exacerbates long-term risks for creditors, says
Moody's Investors Service in a new Special Comment published
entitled "Global Insurance: Increased Regulatory Forbearance Poses
Risks For Insurance Creditors."

While temporary relaxation of conservative regulatory requirements
is generally aimed at limiting market disruption, it is a high-
risk strategy that can be credit negative.

"Regulatory forbearance offers relief from short-term pressures
and creates time for insurance companies to adapt their strategies
to a challenging environment. In some cases, a temporary
relaxation of regulatory requirements that, with hindsight, were
conservative, can allow firms to continue trading and re-build
capital buffers. But forbearance can also increase risk exposures
and elevate risk appetite. Insurers might take more risks than
regulators would typically allow and/or delay corrective action to
shore up their financial positions in the face of adverse market
conditions," explains Simon Harris a Managing Director in Moody's
Financial Institutions Group.

Moody's says that the relaxation of regulatory standards can
encourage insurers to retain deteriorating assets or businesses.
In Europe, insurance regulatory forbearance -- in Italy,
Switzerland and the Netherlands for example -- has focused on
reducing pressure arising from falling asset values or
persistently low interest rates. These practices may encourage
insurers to retain, or even increase their exposure to assets that
ultimately incur losses, or delay de-risking initiatives to reduce
product guarantees or reliance on spread income. If the affected
companies fail to recover, creditors could experience even greater
losses than if the forbearance had not been extended.

"We believe that frequent regulatory forbearance may reflect a
weakening of regulatory control. As regulators soften or by-pass
their own controls over capitalization, forbearance may undermine
investors' confidence, as solvency ratios become difficult to
understand and predict, causing customers and investors to feel
less protected," adds Nadine Abaza, a Moody's Associate Analyst
for European Insurance.

Regulatory forbearance does not affect Moody's assessment of
capital but typically signals credit weakness. Moody's evaluation
of insurers credit profiles is driven by the credit challenges
leading to regulatory forbearance, such as falling asset values
and weakened capitalization. In the rating agency's view, the
credit impact of any forbearance measures, to be evaluated case-
by-case, will vary depending on the economic environment, the
strength of existing regulatory frameworks, market conditions and
issuer specifics prevalent at that time.


* Oversupply Keeps Shipping Industry Outlook at Negative
--------------------------------------------------------
The outlook for the global shipping industry will remain negative
over the next 12-18 months, as the supply of vessels will likely
continue to outstrip demand in most shipping services, says
Moody's Investors Service in its latest Industry Outlook on the
sector published entitled "Global Shipping Industry: Sustained
Oversupply Keeps Outlook Negative."

The global shipping industry's outlook has been negative since
July 2011.

"Substantial oversupply will constrain freight rates for at least
the next 18 months, particularly weighing on earnings in the dry-
bulk and crude oil tanker segments, while falling US crude oil
imports and declining European demand are likely to depress
seaborne deliveries," says Marco Vetulli, a Vice President -
Senior Credit Officer in Moody's Corporate Finance Group and
author of the report. "We expect aggregate EBITDA in the global
shipping industry to decline by around 5%-10% in 2013."

Shipping companies concentrated on the crude oil tanker segment or
focused on the dry-bulk sector, such as Navios Maritime Holdings,
Inc. (B2 negative), are more likely to be adversely affected by
these trends.

Moody's outlook for the product tanker segment is more favorable.
Companies, such as Sovcomflot JSC (Ba2 stable) and Navios Maritime
Acquisition Corp. (B3 stable), could continue to benefit from
demand growth linked to the shift in refining capacity to Asia and
the Middle East, leading to a slight improvement in freight rates.

Moody's does not expect to see a major improvement in the
container segment's financial performance in 2013 as it is the
most sensitive to bunker fuel costs, which are likely to remain
high. However, the container segment has the potential to
outperform other shipping sectors this year if players maintain
market discipline through proactive fleet management, such as
laying up ships to reduce supply, and control costs.

Rated Japanese conglomerates -- Nippon Yusen Kabushiki Kaisha
(NYKK, Baa2 negative) and Mitsui O.S.K. Lines, Ltd. (MOL, Baa3
negative) -- are better positioned to ride out choppy conditions
because they have healthy liquidity, benefit from solid
relationships with banks and are part of large groups.

Shipping finance will remain tight with selective bank lending
continuing. In general, rated shipping companies have stronger
liquidity than the industry average, which should enhance their
ability to weather challenges posed by the weak operating
environment. The strongest operators may also have access to bond
financing.

Moody's could change its outlook to stable if it believes that the
supply-demand gap is likely to narrow over the coming 12-18
months, such that supply exceeds demand by no more than 2% or
demand exceeds supply by up to 2%. For the outlook to stabilize,
the industry's aggregate EBITDA growth would also need to be
within a range of -5 to +10%. Market prospects should improve in
2014 as the amount of oversupply declines. However, downside risks
remain high as the global economic recovery appears to have lost
momentum in recent months.



                             *********

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., Washington, D.C., USA.
Valerie U. Pascual, Marites O. Claro, Joy A. Agravante, Rousel
Elaine T. Fernandez, Julie Anne L. Toledo, Frauline S. Abangan,
and Peter A. Chapman, Editors.

Copyright 2013.  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$775 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 215-945-7000 or Nina Novak at 202-241-8200.



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