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                      A S I A   P A C I F I C

          Thursday, October 3, 2013, Vol. 16, No. 196


                            Headlines


A U S T R A L I A

AUSTRALIAN DIAMOND: Enters Administration, Customers in Limbo
BROOKFIELD AUSTRALIA: Hilton on the Park to Close After 40 Years
CMA CORPORATION: Bidder for Tamworth Site Pulls Out
CMA ECOCYCLE: In Administration, Leaves Toxic Mess


I N D I A

ANJANI PORTLAND: CARE Reaffirms 'BB' Rating on INR137.89cr Loan
BALAR SYNTHETICS: CARE Reaffirms 'BB' Rating on INR19cr Loans
BANWARI PAPER: CARE Assigns 'BB' Rating to INR4.88cr Loans
BHADRASHREE STEEL: CARE Assigns 'BB-' Rating to INR20.42cr Loans
EXCEL VEHICLES: CARE Rates INR26.95cr LT Bank Loans at 'B+'

HYQUIP SYSTEMS: CARE Reaffirms 'D' Ratings on INR35.75cr Loans
KUMAR BROTHERS: CARE Reaffirms 'BB' Rating on INR24cr Loans
LAND MARK: CARE Reaffirms 'B+' Rating on INR10cr LT Bank Loans
LANDMARK ENGINEER: CARE Rates INR3cr LT Bank Loans at 'B+'
LVJ PROJECTS: CARE Assigns 'BB-' Rating to INR1.5cr LT Loans

MARCK BIOSCIENCES: CARE Cuts Rating on INR58.59cr Loan to 'BB+'
RMG ALLOY: CARE Reaffirms 'D' Ratings on INR412.63cr Loans
SHREE RAM: CARE Reaffirms 'B+' Rating on INR28.61cr Loans
SHRIYA OVERSEAS: CARE Rates INR10.5cr LT Bank Loans at 'BB-'
TATA CHEMICALS: Fitch Affirms 'BB+' IDR; Outlook Stable

THREE BROTHER: CARE Rates INR5cr LT Bank Loans at 'BB-'
TRITON INTERNATIONAL: CARE Puts 'BB' Ratings on INR45cr Loans
* INDIA: Corporate Defaults Rise to Decadal High of 4.5%


J A P A N

ORSO FUNDING: S&P Withdraws BB+ Rating on Class E Notes


N E W  Z E A L A N D

ANNIES: Company May Be Saved, Receiver Says
RESTAURANT LTD: Phoenix Forex-Linked Restaurant in Liquidation
SOLID ENERGY: To be Partially Privatized as Banks Take Shares


S O U T H  K O R E A

TONGYANG GROUP: Chairman Likely to Lose Control of Group


                            - - - - -


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


AUSTRALIAN DIAMOND: Enters Administration, Customers in Limbo
-------------------------------------------------------------
Tim Doutre at The Weekly Review reports that customers of
Australian Diamond Company (ADC), one of Melbourne's leading
wedding and engagement ring retailers, have been left in the dark
after the business went into administration in August.

The Australian Diamond Company (ADC) went into administration on
August 26 with a small sign from management on the door of the
Bourke Street shop the only hint for customers that anything was
wrong, according to The Weekly Review.

The report relays that administrators Bent & Cougle held two
meetings during September with creditors of Masefield House Pty
Ltd, which trades as the Australian Diamond Company.

The report notes that at the second meeting a deed of company
arrangement was approved.

The report relates that all customers with deposits on goods were
sent a letter informing them they could pay the remaining balance
to retrieve their purchase.

The report discloses that a new company has bought the majority of
ADC's stock with the intention of reopening the Bourke Street shop
under the same trading name.


BROOKFIELD AUSTRALIA: Hilton on the Park to Close After 40 Years
----------------------------------------------------------------
Chris Vedelago at The Sydney Morning Herald reports that Melbourne
looks set to lose one of its signature luxury hotels, with the
Hilton on the Park likely to close after operating for nearly 40
years in East Melbourne.

The Hilton's lease over the hotel complex expires in late 2014 and
owner Brookfield Australia is advertising the property for sale
with vacant possession, SMH relates.

According to the report, the looming closure comes despite the
hotel's high occupancy rate and profitability. It would leave the
Hilton South Wharf as the only presence for the chain in
Melbourne.

Hilton spokesman Glenn Watson declined to comment on whether
Hilton would attempt to renew its lease or if the group had plans
to open another hotel in the city, SMH says.

The report notes that the Hilton has seen occupancy rise from
75 per cent in 2009 to 85.1 per cent in 2012. More than
AUD30 million has been spent on refurbishments in the past few
years.

According to SMH, industry sources said the pending departure of
the marquee brand has reportedly dampened buyer enthusiasm for the
property, with Brookfield struggling to attract offers close to
its AUD160 million asking price.

The 18-storey five-star hotel, which opened in 1974, offers 419
rooms, day spa, swimming pool and conference facilities.


CMA CORPORATION: Bidder for Tamworth Site Pulls Out
---------------------------------------------------
Cliff Sanderson at dissolve.com.au reports that PPB Advisory,
voluntary administrator of CMA Corporation, said that the sale
negotiation being made for the Tamworth property has failed.

PPB's Phil Carter noted that the offer of the company that wanted
to buy the site at Tamworth was revised and the company is not
interested in the facility at Goddard Lane any more.

According to the report, Mr. Carter said it is still possible to
sell the Tamworth property; however, he does not want workers to
get false hope. He emphasized that if no buyer will be found, five
of the site's workers will be made redundant, relates
dissolve.com.au.

Mr. Carter noted that they are aimed to find a buyer for the
different sites so that jobs will be saved. Workers will get full
payment for their entitlements, Mr. Carter mentioned, says the
report.

A creditors meeting is expected to take place in October,
dissolve.com.au adds.

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 5, 2013, Australian Associated Press said CMA Corporation has
gone into voluntary administration.  The directors of CMA have
appointed Phil Carter, Marcus Ayres, and Nicholas Martin of PPB
Advisory as voluntary administrators. Until the completion of the
review, CMA would continue to operate as usual.

CMA Corporation operates more than 17 recycling facilities across
Australia, New Zealand and Asia and has about 190 staff.


CMA ECOCYCLE: In Administration, Leaves Toxic Mess
--------------------------------------------------
Natalie Savino at Herald Sun reports CMA EcoCycle, which is in
administration, has put Orlando Iluffi more than half a million
dollars out of pocket.

Mr. Iluffi, owns two factories in Campbellfield, one of which he
leased last year to CMA EcoCycle, according to Herald Sun.

The report notes that Mr. Iluffi was told the factory would be
used to store glass, plastic and some steel.  But when the company
went into administration in August, about 200 pellets of mercury-
based light fittings were discovered, along with drums containing
toxic wastes and contaminated soil, the report relates.

"I was shocked when I found out. . . . We were very happy with the
company because they paid one month in advance and we never had a
problem at all," the report quoted Mr. Iluffi as saying.

But now, the report notes that Mr. Iluffi has been left to clean
up the mess.  Mr. Iluffi's daughter Lili Sandiford said the cost
to dispose of the lamps would be at least half a million dollars,
the report discloses.

"We're trying to negotiate with the administrators. . . . (But)
they refuse to take my calls.  My dad doesn't have the time up his
sleeve to start again.  He's still working because he can't afford
to retire," the report quoted Ms. Sandiford as saying.

The report notes that Ms. Sandiford claims the administrators
refused to discuss the contents of the factory and walked away as
soon as they realized nothing could be sold as assets.

The report says that the Environmental Protection Authority was
called to inspect the items on September 13.  The report relates
that EPA metro manager Richard Marks said while the EPA would
always try to pursue the polluter, it was an important reminder
for landlords to be aware of their tenants' operations.

The report discloses that CMA also leases a site across the street
from Mr. Iluffi's factory.  Mr. Iluffi said he would try to
negotiate with PPB or continue legal action, the report relates.

Mr. Iluffi hopes to have the material processed on site under EPA
control, the report adds.



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


ANJANI PORTLAND: CARE Reaffirms 'BB' Rating on INR137.89cr Loan
---------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Anjani Portland Cement Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      137.89     CARE BB Re-affirmed
   Short-term Bank Facilities      20.70     CARE A4 Re-affirmed

Rating Rationale

The ratings continue to remain constrained by the deterioration in
the financial profile & liquidity position of the company with
significant decline in revenue and profitability during FY13
(refers to the period April 01 to March 31) and Q1 FY14 (refers to
the period April 01 to June 30), highly leveraged capital
structure, high exposure to group companies and moderate industry
outlook. The ratings, however, are underpinned by the long track
record of the company, experienced management, moderate scale of
operation along with improvement in capacity utilization during
FY13 and increasing geographical diversification of sales. The
ability of the company to improve the sales realization, arrange
its requirement of power & fuel and efficiently manage its working
capital are the key rating sensitivities.

Incorporated in the year 1983, Anjani Portland Cement Ltd (APCL)
is engaged in manufacturing of Ordinary Portland Cement (OPC) 53
grade & 43 grade and Pozzolona Portland cement (PPC) with
the product mix of OPC: PPC in the ratio of about 56:44. The
company has, currently, installed cement capacity of 11,60,000
MTPA at Nalgonda district of A.P. APCL sells its cement under the
brand name of Brand "Anjani Super Gold". Besides cement, the group
has exposure in the printing business & ceramic tile manufacturing
conducted through Hitech Print Systems Ltd (a 100% subsidiary) and
Vennar Ceramics Ltd [rated CARE BBB (SO)/CARE A3 (SO)/In principle
CARE BBB (SO), a joint venture with Kajaria Ceramics Ltd] (with
APCL holding 49% stake) respectively.

During FY13 (refers to the period April 01 to March 31), APCL
posted PBILDT of INR53.30 crore (FY12: INR65.62 crore) and PAT
(after deferred tax) of INR3.09 crore (FY12: INR15.80 crore) on a
total operating income of INR288.55 crore (FY12: INR299.36 crore).

During Q1 FY14 (refers to the period April 01 to June 30), APCL
posted PBILDT of INR8.57 crore (Q1 FY13: INR13.68 crore) and net
loss of INR2.39 crore (Q1 FY13: PAT of INR1.32 crore) on a total
operating income of INR67.94 crore (Q1 FY13: INR69.68 crore).


BALAR SYNTHETICS: CARE Reaffirms 'BB' Rating on INR19cr Loans
-------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Balar Synthetics Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       19.00     CARE BB Reaffirmed
   Long-term/Short-term Bank        0.10     CARE BB/ CARE A4
   Facilities                                Reaffirmed

Rating Rationale

The ratings continue to remain constrained on account of the
financial risk profile of Balar Synthetics Private Limited (BSPL)
marked by range bound profitability, moderately leveraged
capital structure and working capital intensive nature of
operations. The ratings are further constrained on account of its
presence in the highly fragmented and competitive synthetic fabric
manufacturing industry and limited value addition.

The ratings, however, continue to draw strength from the wide
experience of the promoters in the textile industry and benefits
derived by being located in a major textile cluster.

The ability of BSPL to increase its scale of operations and
profitability with improvement in capital structure and efficient
management of working capital are the key rating sensitivities.

BSPL was promoted by Mr. Suresh Kumar Jain and Mr. Rajesh Jain in
1996 in Bhilwara, Rajasthan. BSPL is engaged in the manufacturing
of synthetic fabrics from polyester viscous (PV) yarn which
are primarily used for the manufacturing of suitings. Initially,
the company started its weaving operations with 36 looms which
over the period of time has grown to 140 sulzer looms (Automatic
Weaving Machines). BSPL has its sole manufacturing facilities
located at Bhilwara with an installed capacity of 1.40 crore Meter
Per Annum (MPA) as on March 31, 2013 to produce grey and finished
synthetic fabrics. The company sells most of the manufactured grey
fabric in the local market of Bhilwara through nine agents.
Furthermore, BSPL markets finished fabric through a network of 26
agents in the local market as well as in the Southern part of
India.

As per audited results of FY13 (refers to the period April 1 to
March 31), BSPL reported a total income of INR87.93 crore (FY12:
INR 89.17 crore) with a net profit of INR0.74 crore (FY12: INR0.72
crore).


BANWARI PAPER: CARE Assigns 'BB' Rating to INR4.88cr Loans
----------------------------------------------------------
CARE assigns 'CARE BB' and 'CARE A4' ratings to the bank
facilities of Banwari Paper Mills Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       4.88      CARE BB Assigned
   Short-term Bank Facilities      0.80      CARE A4 Assigned
   Bank Facilities-Fund Based/     0.70      CARE BB/CARE A4
   Non Fund Based-LT/ST                      Assigned

Rating Rationale

The ratings assigned to the bank facilities of Banwari Paper Mills
Ltd are primarily constrained by small scale of operations coupled
with low profitability margins, working capital intensive nature
of operations and susceptibility of its margins to fluctuation in
raw material prices.

The ratings are further constrained by its presence in highly
fragmented and competitive nature of the paper industry.

The ratings, however, derive support from experienced, moderately
leveraged capital structure and coverage indicators. The ratings
also derive support from established relationship with its key
customers and stable demand indicators from the end-user
industries.

Going forward, BPML's ability to improve its scale of operations
and profitability margins coupled with effective management of
working capital shall be key rating sensitivities.

BPML was established during the year 1980 by Mr. R.N Lakhotia for
manufacturing of Kraft paper.  In year 1981, the management was
transferred to Mr. J.S Goraya & family. BPML is a closely-held
company with Mr. Jasdeep Singh Goraya (Managing Director) & family
members holding 100% of the equity. In year 2000, the company
shifted its operations from manufacturing of Kraft paper to
manufacturing of writing and printing paper (WPP) at Kashipur,
Uttrakhand. As on March 31, 2013 the company has an installed
capacity of 30 MTPD. The main raw material for the company is
waste paper which is largely procured domestically including some
imports from USA, Netherland, Saudi Arabia etc. The company sells
its product all over India through a network of around 35
distributors. The company has its marketing office at Kashipur, UP
and also exports its product to countries like Nepal and Sri Lanka
through authorized dealers. The group companies Fibremarx Papers
Ltd (CARE BB-/A4) and Goraya Straw Board Mills Pvt Ltd are engaged
in manufacturing of writing and printing papers and Duplex boards.


BHADRASHREE STEEL: CARE Assigns 'BB-' Rating to INR20.42cr Loans
----------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of
Bhadrashree Steel & Power Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       20.42     CARE BB- Assigned

Rating Rationale

The rating assigned to the bank facilities of Bhadrashree Steel &
Power Limited is primarily constrained by its short track record
of operations, limited value addition and raw material price
fluctuation risk. The rating is further constrained by the
competitive and cyclical nature of the iron and steel industry.
The rating, however, finds support from the experienced promoters,
moderate profitability margins, moderate capital structure and
moderate coverage indicators and proximity to raw material sources
and customers.

Going forward, the ability of BSP to improve its profitability
margins along with improvement in capacity utilization shall be
the key rating sensitivities. Improvement in capital structure
would also be a key rating sensitivity.

Established in 2004, BSP is a closely-held public limited company
promoted by Mr. Mukesh Goel and his family members. BSP is engaged
in manufacturing of sponge iron and trading of mild steel
sections and other steel parts. The company sells its final
product directly and through distributors to various steel
manufacturers and rolling mills. The manufacturing facility of the
company is located at Village Kunikeri in Karnataka with the
installed capacity of 60,000 tonnes per annum.

The raw materials required for production of sponge iron are iron
ore procured through bidding conducted by Metal Scrap Trading
Corporation in Karnataka, coal obtained by way of eauctioning and
dolomite which are mainly procured from dealers located in
Karnataka. BSP generates around three-fourth of the total
operating income from its manufacturing segment while
the remaining is from its trading segment.

In FY12 (refers to the period April 1 to March 31), SIP has
achieved a total operating income of INR89.20 crore with a PAT of
INR0.87 crore based on provisional results of FY13, the company
reported a total operating income of INR76.18 crore with a PAT of
INR0.97 crore.


EXCEL VEHICLES: CARE Rates INR26.95cr LT Bank Loans at 'B+'
-----------------------------------------------------------
CARE assigns 'CARE B+' rating to the bank facilities of Excel
Vehicles Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      26.95      CARE B+ Assigned

Rating Rationale

The rating assigned to the bank facilities of Excel Vehicles
Private Limited is constrained due to its dealership nature of
business whereby the fortunes are linked to that of Tata Motors
Limited in the commercial vehicle segment and inherent cyclicality
associated with commercial vehicle segment. The rating is further
constrained by pricing constraint and margin pressure.

The aforesaid constraints are partially offset by the strength
derived from the established track record of group in providing
integrated services in auto dealership segment and long standing
experience of promoters.

The ability of the company to achieve the envisaged sales in light
of the current downturn in the economy is the key rating
sensitivity.

Incorporated in the year 2012, Excel Vehicles Private Limited
belongs to the Bhopal-based 'My Car' Group. The group has
established presence in automobile dealership segment with
authorized dealership of Maruti Suzuki India Limited and Hero
Motocorp Limited in cities like Bhopal, Indore and Kanpur. Besides
automobile segment the group also has distributorship of
Nokia and HCL cell phones for Bhopal and nearby areas. The company
has recently entered in dealership agreement with Tata Motors
Limited (TML; rated 'CARE AA') commenced commercial operation from
March 2013. EVPL will operate in Bhopal and nearby region as an
authorized dealer of TML for its commercial vehicle (CV) segment.
As per dealership agreement, EVPL will deal in all models of TML
in the CV segment. The catchment area for EVPL will be Bhopal,
Itarsi, Vidisha, Raisen and Hoshanganad. The company has taken the
showroom on lease at Bhopal for tenure of 15 years and has
developed workshop with 18 service bays and one stock yard of 5
acres in the same premises.


HYQUIP SYSTEMS: CARE Reaffirms 'D' Ratings on INR35.75cr Loans
--------------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Hyquip Systems Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      8.75       CARE D Reaffirmed
   Short-term Bank Facilities    27.00       CARE D Reaffirmed

Rating Rationale

The ratings continue to take into account the delays in servicing
of debt obligations.

Hyquip Systems Limited was incorporated in 1984, and it is the
flagship company of the Hyderabad-based Hyquip group. HSL is
primarily engaged in the designing and manufacturing of
material handling system and also has interests in flow control
equipments and industrial automation.

The company achieved PAT of INR0.77 crore on a total income of
INR45.50 crore in FY13 (Provisional). In FY12, the company
achieved PAT of INR1.36 crore on a total income of INR70.56 crore.


KUMAR BROTHERS: CARE Reaffirms 'BB' Rating on INR24cr Loans
-----------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Kumar Brothers Chemists Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        24       CARE BB Reaffirmed
   Short-term Bank Facilities        1       CARE A4 Reaffirmed

Rating Rationale

The ratings of Kumar Brothers Chemists Private Limited continue to
be constrained by working capital intensive nature of business
operations, lower profitability margins, high gearing
levels and high competitive intensity of the business.

The ratings, however, continued to favorably take into account the
experience of the promoters in trading of pharmaceutical products,
advantage of strategic location and long association with reputed
pharmaceutical companies. The rating also takes cognizance of the
moderate growth in scale of operations in the recent past.

Going forward, the ability of the company to achieve the envisaged
revenue and profitability, improve liquidity position and capital
structure shall be the key rating sensitivities.

Kumar Brothers (Chemists) Private Limited was originally
constituted as a partnership firm named as M/s Kumar Brothers in
the year 1980, and was later converted into private limited
company in the year 1998. KBPL is engaged in retail and wholesale
trading of pharmaceutical products such as medicines, surgical
equipments, cosmetics and other related items. Apart from
over-the-counter sales (retail), the company also supplies
medicines to private as well as government institutions, namely
Post Graduation Institute of Education & Research (PGI), various
government hospitals and command hospitals. Currently, KBPL
operates through two establishments including one unit at
Chandigarh and another one at Delhi respectively. The unit at
Delhi is exclusively for dealing with Army Hospital.

KBC had reported a net profit of INR0.63 crore on a total
operating income of INR55.56 crore in FY12 (refers to the period
April 1 to March 31). Furthermore, the company had a net profit of
INR0.95 crore on a total operating income of INR63.57 crore in
FY13 (based on unaudited results).


LAND MARK: CARE Reaffirms 'B+' Rating on INR10cr LT Bank Loans
--------------------------------------------------------------
CARE reaffirms the rating assigned to the bank facilities of Land
Mark Developers.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        10       CARE B+ Reaffirmed

The rating assigned by CARE is based on the capital deployed by
the partners and the financial strength of the firm at present.
The rating may undergo a change in case of the withdrawal of
capital or the unsecured loans brought by the partners in addition
to the financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Land Mark Developers
continues to be constrained on account of the modest booking
status, project implementation risk associated with the ongoing
project which is further intensified by time overrun in the
project owing to change in scope and inherent risk associated with
the cyclical nature of the real estate industry.

The rating, however, favorably factors in the experience of the
partners in the construction business, although not in the real
estate business.

The successful completion of the ongoing project, timely sale of
units at envisaged prices and any future projects and its funding
pattern are the key rating sensitivities.

LMD is a Rajkot-based partnership firm formed in October 2010 to
carry out real estate business. LMD was formed by Mr. Dharmesh
Khoont and Mr. Bhavesh Khoont apart from six other partners.
The key partners possess more than a decade long experience of
construction activities through other group concerns. At present,
LMD is executing its first project named High Street (HS) which
is a residential project consisting of 48 (4 BHK; two towers of 12
storeys each with two flats per floor) flats at Rajkot.


LANDMARK ENGINEER: CARE Rates INR3cr LT Bank Loans at 'B+'
----------------------------------------------------------
CARE assigns 'CARE B+' and 'CARE A4' rating to the bank facilities
of Landmark Engineer.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        3        CARE B+ Assigned
   Short-term Bank Facilities      10        CARE A4 Assigned

The ratings assigned by CARE are based on the capital deployed by
the proprietor and the financial strength of the entity at
present. The ratings may undergo a change in case of the
withdrawal of capital or the unsecured loans brought in by the
proprietor in addition to the financial performance and other
relevant factors.

Rating Rationale

The ratings assigned to the bank facilities of Landmark Engineer
are constrained by small scale of operation with moderate order
book position, delay in project execution being its presence in
the naxalite affected area, working capital intensive nature of
operations, leveraged capital structure and weak debt coverage
indicators. The ratings are further constrained by sectoral and
geographical concentration risk coupled with vulnerability of
changes in the budget allocation policies and proprietorship
nature of constitution.

The aforesaid constraints are partially offset by the strengths
derived from the experienced proprietor.

The ability of LE to increase its scale of operations and achieve
the projected sales and profitability along with efficient
management of operating cycle, regular and timely execution of the
contract without any cost overrun are the key rating
sensitivities.

Established in 2005, Landmark Engineer is engaged in civil
construction services (road works involving construction, up-
gradation, widening of roads and other miscellaneous works) under
Pradhan Mantri Gram Sadak Yojana (PMGSY) in the state of Madhya
Pradesh & Chhattisgarh and Public Works Department (PWD),
Chhattisgarh through bidding process.

In FY12 LE has posted total income of INR11.37 crore (vis--vis
INR14.44 crore in FY11) and PAT of INR0.33 crore (vis--vis
INR0.41 crore in FY11). As per provisional FY13 results LE has
registered total income of INR17.10 crore and PAT of INR0.55
crore, Furthermore, till August 31, 2013 LE has posted total
income of INR9.25 crore and PBT of INR0.31crore.


LVJ PROJECTS: CARE Assigns 'BB-' Rating to INR1.5cr LT Loans
------------------------------------------------------------
CARE assigns 'CARE BB-' and 'CARE A4' ratings to the bank
facilities of LVJ Projects Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       1.50      CARE BB- Assigned
   Long-term/Short-term Bank       5.00      CARE BB-/CARE A4
   Facilities                                Assigned

Rating Rationale

The ratings assigned to the bank facilities of LVJ Projects
Private Limited are primarily constrained on account of its modest
scale of operations coupled with modest profitability margins and
order book position. The ratings are also constrained on account
of its presence in a highly competitive and fragmented
infrastructure industry, geographical concentration risk and
limited revenue diversity.

The ratings, however, derive benefits from the established
operational track record and vast experience of the promoters in
the civil construction industry, moderate capital structure and
moderate debt coverage and liquidity indicators.

The ability of LPPL to increase its scale of operations along with
an improvement in profit margins and its ability to diversify its
revenue stream and also diversify its geographical presence would
be the key rating sensitivities.

LPPL was initially established as a partnership firm in 1984 as
La-V-Jay & Associates promoted byMr.Navin Patel and was converted
in a private limited company in 1990. Later in year 2005, the
company changed its name to the present one. The company in
engaged in civil construction and predominantly undertakes
contracts received from the government and railway department.
LPPL is registered as "AA class contractor" (on the rating scale
of AA to E) with the Government of Gujarat (GoG), which enables it
to bid for any size of project within the state of Gujarat floated
by government agencies. LPPL secures all the contracts through
open bidding process. Water Resources Department and Irrigation
Department of GOG and Indian Railways are the major
clients of LPPL.

As per the provisional results for FY13 (refers to the period
April 1 to March 31), LPPL reported a total operating income of
INR15.59 crore (FY12: INR13.71 crore) and a Profit after
Tax of INR0.24 crore (FY12: INR0.29 crore).


MARCK BIOSCIENCES: CARE Cuts Rating on INR58.59cr Loan to 'BB+'
---------------------------------------------------------------
CARE revises the ratings assigned to the bank facilities of
Marck Biosciences Limited.

                                Amount
   Facilities                 (INR crore)   Ratings
   -----------                -----------   -------
   Long-term Bank Facilities     58.59      CARE BB+ Revised from
                                            CARE BB-

   Short-term Bank Facilities     7.50      CARE A4+ Revised from
                                             CARE A4

Rating Rationale

The revision in the ratings of Marck Biosciences Limited takes
into account the consistent growth of its Intravenous Fluids (IVF)
business along with the improvement in profitability and
cash accruals leading to improvement in liquidity position and
debt coverage indicators.

The ratings of MBL, however, continue to be constrained by the
vulnerability of its profit margins to volatility in raw material
prices and foreign exchange rate fluctuations along with project
implementation risk associated with the large-sized expansion
project and the risk associated with quality assurance and storage
of IVF.

The ratings, however, favorably take into the vast experience of
the promoters, established and long track record of operations,
healthy profitability margins and moderate leverage. The ratings
also take into account the fund infusion in the form of Optionally
Convertible Preference Shares (OCPSs) by Tata Capital Ltd (TCL).

MBL's ability to manage risks associated with volatile raw
material prices, successful completion of the ongoing large-sized
expansion project within envisaged time and cost parameters and
any future expansion projects and its funding profile would remain
the key rating sensitivities.

MBL is a closely-held public limited company promoted by
Mr. Rohit J. Patel, Mr. Bhavesh G. Patel and other family members
in 1995. MBL is engaged in the manufacturing of sterile liquid
parenterals using Aseptic Blow-Fill-Seal (BFS) technology at its
two ISO-certified and cGMPcompliant manufacturing facilities; one
at Kheda, Gujarat, and another at District North Goa,
Goa. MBL's product portfolio comprises both Large Volume
Parenteral (LVP) and Small Volume Parenteral (SVP) mainly
Dextrose, Diuretics, Anti-biotics and other injectables. As on
March 31, 2013, MBL had an installed capacity of 796 lakh bottles
and 2,525 lakh bottles per annum of LVP and SVP respectively.

MBL reported a PAT of INR14.63 crore on a total operating income
of INR155.01 crore in FY13 (refers to the period April 1 to
March 31) as against a PAT of INR8.04 crore on a total operating
income of INR112.50 crore in FY12. Further, as per provisional
results for Q1FY14, MBL has earned total operating income of
INR41.22 crore with PAT of INR5.23 crore.


RMG ALLOY: CARE Reaffirms 'D' Ratings on INR412.63cr Loans
----------------------------------------------------------
CARE reaffirms the ratings assigned to bank facilities of
RMG Alloy Steel Ltd. (Erstwhile Remi Metal Gujarat Ltd.)

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-Term Bank Facilities       83.67     'CARE D' Reaffirmed
   (Fund Based)

   Long-Term Bank Facilities       161.35    'CARE D' Reaffirmed
   (Term Loan)

   Short-Term Bank Facilities      167.61    'CARE D' Reaffirmed
   (NonFund Based)

Rating Rationale

The ratings continue to factor in the ongoing delays in servicing
of debt obligations by the company on account of its weak
liquidity position as a result of continuing net losses.

Promoted by Mr. V.C. Saraf and Mr. R.C. Saraf, RMGL is engaged in
manufacturing of carbon and alloy steel seamless pipes/tubes with
captive facilities for steel melting and continuous bloom/ingot
casting at Jhagadia, Gujarat. RMGL's produced steel is mainly used
for auto-manufacturing/auto components, earth-moving equipment and
bearing applications, while seamless pipes and tubes find
application mainly in boilers, which are required in the power
sector. Due to inefficiencies in the plant on account of lack of
critical equipment, the operations of the company were
unprofitable.

Subsequently, the company became a sick unit in August 1999 and
has been under the purview of the Board for Industrial and
Financial Reconstruction (BIFR) since then. In 2009, the Welspun
group, having experience in steel industry and clientele in oil &
gas and petroleum industry, was inducted as a strategic partner of
RMGL for revival of the company.

During FY13 (refers to the period from April 1 to March 31), RMGL
incurred a net loss of INR93.3 crore on a total income of
INR355.95 crore as against a net loss of INR57 crore on a total
income of INR586 crore during FY12.


SHREE RAM: CARE Reaffirms 'B+' Rating on INR28.61cr Loans
---------------------------------------------------------
CARE reaffirms the ratings assigned to the bank facilities of
Shree Ram Proteins Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       28.61     CARE B+ Reaffirmed
   Short-term Bank Facilities       0.50     CARE A4 Reaffirmed

Rating Rationale

The ratings continue to remain constrained on account of weak
financial risk profile of Shree Ram Proteins Private Limited
marked by leveraged capital structure, weak debt coverage
indicators and stressed liquidity position. The ratings are
further constrained by SRPPL's vulnerability of profitability to
the fluctuation in the raw material prices, which are related to
seasonality and crop harvest and its presence in working capital
intensive and the fragmented edible oil industry with limited
bargaining power against buyers.

The ratings, however, continue to draw strength from the
experience of the promoters in the cotton seed industry, SRPPL's
comparative advantage over traditional oil seed processing units
and favourable location which provides easy access to high quality
raw material.

The ability of SRPPL to improve its capital structure and
liquidity position in addition to improving
profit margins in light of volatile raw material costs would
remain the key rating sensitivities.

SRPPL was incorporated in 2008 by Mr. Lalit Vasoya and Mr. Sudhir
Vasoya. SRPPL has set up a cotton seed processing facility at
Gondal in Gujarat, to produce cotton seed oil (washed cotton seed
oil - WCS), de-oiled cake (DOC), cotton linters and hulls. It
started commercial production from February 2010. SRPPL supplies
WCS to refiners in Gujarat as it does not have any captive
refining capacity. SRPPL has an installed capacity of 450 MT/day
for de-linting and 500 MT/day for solvent extraction as on March
31, 2013. During FY13, SRPPL derived 18% of its total income from
sale of WCS, 51% from sale of DOC, 25% from sale of hulls while
rest was being derived from sale of cotton linters.

As per the audited results for FY13, SRPPL reported PAT of INR0.03
crore (INR0.88 crore in FY12) on a total operating income of
INR116.56 crore (INR80.84 crore in FY12).


SHRIYA OVERSEAS: CARE Rates INR10.5cr LT Bank Loans at 'BB-'
------------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of Shriya
Overseas Pvt Ltd.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities       10.50     CARE BB- Assigned

Rating Rationale

The rating assigned to the bank facilities of Shriya Overseas Pvt
Ltd is constrained primarily on account of its financial risk
profile marked by low & fluctuating profitability margins,
working capital intensive nature of operations and leveraged
capital structure. The rating is further constrained due to
intense competition in the automobile dealership industry, weak
industry outlook with volatile interest rate scenario and rising
fuel cost which is likely to adversely affect the demand for
passenger vehicles in the near term.

The above constraints outweigh the benefits derived from the
experience of the promoters in the automobile dealership business,
support of experienced second-tier management and established
presence in passenger vehicle market as well as longstanding
association with its principal, General Motors India Pvt Ltd (GM).

The ability of SOPL to improve its overall financial risk profile
with improvement in profitability and capital structure coupled
with its ability to increase sales volume in a highly competitive
automobile dealership business would be the key rating
sensitivity.

SOPL was incorporated in May 1991 by Mr. P.K.Jain and Mr. Bhagat
Ram Goyal, having its registered office in Delhi. In 1997, there
was a change in the promoters with Mr. Rajan Mehra and his family
taking over the management of the company.

Since inception SOPL is engaged in the business of car dealership.
Initially the company had dealership of Daewoo Motors India Ltd
and Hindustan Motors Ltd in Noida. Postexit of DMIL from India and
decline in the presence of HML in the Indian passenger vehicle
market, the promoters got an opportunity with General Motors India
Pvt Ltd for their 'Chevrolet' brand of cars and in October 2003
they commenced with dealership operations in Jaipur under the
brand 'Triumph Motors'. In 2005, SOPL opened dealership of
'Chevrolet' brand cars in Connaught Place, Delhi which was
subsequently closed in FY12 (refers to period April 1 to March 31)
due to unsustainable operating margins. As on date, SOPL has four
3S facilities, two 2S facilities and three 1S facilities across
Rajasthan.

Furthermore, the promoters also have dealerships of Renault India
Pvt Ltd and Hyosung Motor Bikes through other sister concerns.

During FY12, SOPL reported a total operating income of INR151.87
crore (FY11: INR111.82 crore) with a PAT of INR0.66 crore (FY11:
INR0.56 crore). As per provisional results for FY13, the company
reported a total operating income of INR136.45 crore and a PAT of
INR1.13 crore.


TATA CHEMICALS: Fitch Affirms 'BB+' IDR; Outlook Stable
-------------------------------------------------------
Fitch Ratings has affirmed India-based Tata Chemicals Limited's
(TCL) Long-Term Issuer Default Rating (IDR) at 'BB+'. The Outlook
remains Stable.

Key Rating Drivers

Leading Market Position - TCL is the second-largest soda ash
producer globally, and the largest in India with diversified
geography, customer base and product offerings. TCL's access to
trona mines at its US and Kenyan operations support its leading
position in the soda ash industry. TCL also benefits from its
position as one of the leading players in branded salt, and
fertiliser and urea products in India. The ratings also factors in
the integrated nature of TCL's Indian operations, the widening
demand-supply gap for fertilisers in India and TCL's position as
one of the most efficient urea producers.

Delay in Subsidies Driving Higher Debt - TCL's working capital
requirements have been increasing over the last two years
resulting in its higher debt levels. During FY13, the company's
working capital requirement increased by INR13.5bn and its net
debt rose to INR65.4bn (FY12: INR53.8bn). The rise in working
capital requirement was primarily due to a delay in the receipt of
fertiliser subsidies from the government of India. As of end-March
2013, the subsidy receivable from the government was INR17.5bn.

While the subsidy receivable reduced to INR11.6bn as of end-June
2013, Fitch expects the amount of subsidy TCL has yet to receive
from the government to remain high during FY14. This is because
although the government's budgetary allocation for fertiliser
subsidies remains at INR660bn for FY14, part of it has been used
to clear dues from the previous fiscal year, which is likely to
result in not enough being left to pay the current-year subsidies.
In addition, the Indian rupee may spur an increase in the subsidy
requirements. Fitch notes that TCL may continue to be exposed to
regulatory changes in its fertiliser business.

Moderate Financial Profile - The increase in TCL's debt levels
along with a fall in profitability has resulted in marginal
weakening of TCL's credit profile during FY13. This is reflected
in TCL's net leverage (adjusted net debt/operating EBITDAR)
increasing to 3.02x in FY13 (FY12: 2.34) while its EBITDA interest
cover fell to 4.66x (FY12: 5.40x). TCL's EBITDA margin fell to
14.7% during FY13 (FY12: 16.7%) due to its weaker European
operations, pricing pressure on soda ash, rising costs and
operational issues.

Fitch expects TCL's profitability to remain under pressure and
high debt levels to continue due to delays in the receipt of
fertiliser subsidies in the near term. However, the credit metrics
of TCL haven't yet crossed thresholds (net leverage of 3.5x) that
could trigger negative rating action

Comfortable Liquidity - TCL has a cash balance of INR10bn and
unutilised bank limits of INR5.6bn as of end-June 2013. While the
cash balance is not sufficient to meet all its debt maturities of
INR22.8bn during FY14, Fitch expects TCL to refinance part of its
debt maturities. TCL has during H1FY14 refinanced most of the debt
facilities at its US subsidiary, resulting in extended maturity
and also lower interest cost. Fitch expects TCL's liquidity to
remain comfortable with its high financial flexibility driven by
its strong access to the capital and loan market mainly in India.

Linkage with Tata Group - The company benefits from being part of
the Tata Group. TCL has, in the past, received liquidity and
equity support from the group. The agency believes that TCL is
likely to continue to receive such support in the future.

Rating Sensitivities

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

-- Strong performance of TCL leading to net leverage (adjusted
   net debt/operating EBITDAR) of below 2x on a sustained basis
   (FY13: 3.02x).

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

-- Any adverse change in the fertiliser subsidy policy or a large
   debt-led capex or acquisition that leads to net financial
   leverage exceeding 3.5x on a sustained basis would be negative
   for the ratings.

-- Any weakening of linkages with the Tata group may also impact
   the ratings negatively


THREE BROTHER: CARE Rates INR5cr LT Bank Loans at 'BB-'
-------------------------------------------------------
CARE assigns 'CARE BB-' rating to the bank facilities of Three
Brother Flour and General Mills.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities        5.00     CARE BB- Assigned

The ratings assigned by CARE are based on the capital deployed by
the partners and the financial strength of the firm at present.
The ratings may undergo change in case of withdrawal of capital or
the unsecured loans brought in by the partners in addition to the
financial performance and other relevant factors.

Rating Rationale

The rating assigned to the bank facilities of Three Brothers Flour
and General Mills is primarily constrained by its small scale of
operations, low profitability margins and susceptibility
of its margins to fluctuation in raw material prices. The rating
is further constrained by constitution of the entity as a
partnership firm and fragmented nature of industry coupled with
intense competition.

The rating however draws comfort from the experienced partners,
long track record with growing scale of operations, its moderate
capital structure and comfortable operating cycle.  Going forward,
the ability of the firm to increase its scale of operation while
improving its profitability margin and management of volatility in
raw material prices would be the key rating sensitivities.

TBGM was established as a partnership firm in June 1985 by Mr.
Balbir Singh, Mr. Ajaib Singh along with 3 other family members as
partners. The partnership was reconstituted in 2000 and
currently has 5 partners. TBGM is engaged in the processing of
food grains mainly wheat with manufacturing of products viz wheat
flour, maida, sooji, etc. The manufacturing facility of TBGM is
located at Narayanpur (Uttrakhand) with an installed capacity of
36,500 MTPA (Metric Tonnes Per Annum). The main raw material for
TBGM is wheat which is procured from commission agents
and farmers. The firm is selling its products through commission
agents and dealers mainly in  Uttrakhand.

During FY13 (refers to the period April 1 to March 31), TGBM has
achieved total operating income of INR19.87 crore with a PAT of
INR0.66 crore. During FY12 TBGM achieved a total operating income
of INR15.40 crore with a PAT of INR0.11 crore.


TRITON INTERNATIONAL: CARE Puts 'BB' Ratings on INR45cr Loans
-------------------------------------------------------------
CARE assigns 'CARE BB' rating to the bank facilities of Triton
International Private Limited.

                                 Amount
   Facilities                  (INR crore)   Ratings
   -----------                 -----------   -------
   Long-term Bank Facilities      25.00      CARE BB Assigned
   Proposed Long-term Bank        20.00      CARE BB Assigned
   Facilities

Rating Rationale

The rating assigned to the bank facilities of Triton International
Private Limited is constrained by very short track record of
operations, working capital intensive nature of operations, low
profitability, customer & supplier concentration and foreign
exchange fluctuation risk.

The aforesaid constraints are partially offset by the strength
derived from the experience of promoters in the paper trading
business, their established relationship with customers &
suppliers, comfortable capital structure and debt coverage
indicators.

TIPL's ability to achieve the projected sales & profitability
amidst increasing competition and forex fluctuation along with
efficient management of working capital cycle are the key rating
sensitivities.

Incorporated in February 2011, Triton International Private
Limited commenced operations in February 2012 for trading of
various types of papers and paper products. TIPL has a whollyowned
subsidiary, Triton Global FZE (TG, 100% subsidiary based in Dubai
and started operations in February 2012) engaged in the same line
of business. FY13 (refers to period April 1 to March 31) was the
first year of full operations of TIPL on standalone and
consolidated levels.

The company procures traded papers majorly from paper mills based
in India and subsequently sells in Kenya, UAE, Ghana, Iran and
Europe. The company has tie ups with various paper mills in
India for the supply of paper. TIPL's warehouse is located in
Bhiwandi, Thane. CARE has considered consolidated financials of
TIPL for credit risk assessment.

On a standalone basis, TIPL reported a total income of INR66.46
crore and PAT of INR1.62 crore in FY13 (first full year of
operations). TIPL on a consolidated basis has reported total
income of INR229.45 crore and PAT of INR9.94 crore during FY13.
During 5MFY14, TIPL (on consolidated basis) reported a total
operating income of around INR130.94 crore.


* INDIA: Corporate Defaults Rise to Decadal High of 4.5%
--------------------------------------------------------
The Hindu Business Line reports that India Ratings said annual
defaults by India Inc reached a decadal high of 4.5 per cent last
fiscal, up from 3.5 per cent in the year-ago period, with as many
as 32 issuers defaulting on their credit obligations.

"Credit quality of issuers deteriorated due to the slow pace of
both domestic as well as global demand growth, high cost of
borrowing and leveraging of corporate balance sheet," India
Ratings said in a report cited by Hindu Business Line.

The note said the default rate was 3.5 per cent and 32 issuers
defaulted in FY'13 to push up the rate of default to a decadal
high, the Hindu Business Line relates.

According to Hindu Business Line, the absolute amount which got
defaulted is not known and the ratings agency said the default
rates are computed on an issuer-basis and not on the amount.

GDP growth had plummeted to a decadal low of 5 per cent during the
last fiscal, while the same stood at 6.7 per cent in the earlier
fiscal, the report adds.



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


ORSO FUNDING: S&P Withdraws BB+ Rating on Class E Notes
-------------------------------------------------------
Standard & Poor's Ratings Services said that it has withdrawn its
'BB+ (sf)' rating on the class E notes issued under the Orso
Funding CMBS 8 Ltd. transaction in November 2007 at the arranger's
request.

Orso Funding CMBS 8 is a single-borrower commercial mortgage-
backed securities (CMBS) transaction.  One loan and one specified
bond (the loan assets) extended to/issued by one special-purpose
company (SPC) initially secured the notes, and 184 properties
originally backed the loan assets.  Bear Stearns (Japan) Ltd.,
Tokyo Branch (currently, JPMorgan Securities Japan Co. Ltd.)
arranged the transaction, and Premier Asset Management Co. acts as
the servicer.

          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 Rule applies to in-scope securities initially
rated (including preliminary ratings) on or after Sept. 26, 2011.

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

            http://standardandpoorsdisclosure-17g7.com.

RATING WITHDRAWN

Orso Funding CMBS 8 Ltd.
JPY151.6 billion notes due June 2022
Class        To        From            Initial issue amount
E            NR        BB+ (sf)        JPY8.0 bil.



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


ANNIES: Company May Be Saved, Receiver Says
-------------------------------------------
Shani Annand-Baron at NewstalkZB reports that Annies, a Blenheim
company facing liquidation, may yet be saved.

Annies was put into receivership due to a customer returning four
million bars that it thought were incorrectly labeled, according
to NewstalkZB.

The report relates that partner of PricewaterhouseCoopers John
Fisk said the company's continuing to trade, with the hope new
owners can be found.

"We've had a significant amount of interest from potential
purchasers for the business.  There's a lot of respect for the
product that Annies has," the report quoted Mr. Fisk as saying.

The report discloses that Mr. Fisk said if a buyer can be found
there's a chance some, or all, of the 30 staff made redundant may
be re-employed.

Annies sells and exports fruit leathers and dried fruit.  The
company's products are also stocked in a number of kiwi
supermarket chains.


RESTAURANT LTD: Phoenix Forex-Linked Restaurant in Liquidation
--------------------------------------------------------------
Hamish Fletcher at The New Zealand Herald reports that an Auckland
restaurant with links to Phoenix Forex -- a company that sold
controversial currency trading software -- has been put into
liquidation owing almost NZ$5 million.

Restaurant Ltd, now in liquidation, operated the Brownstone
Restaurant and Cocktail Lounge on Auckland's Ponsonby Road. The
restaurant was previously known as Nostalgia and before that
Prohibition, opening its doors in August 2008 after running up
NZ$2.9 million of costs during an 18-month refurbishment, the
Herald discloses.

Company director Colin Gardner told liquidators that Prohibition
began trading as a "premium fine dining restaurant" but the
business was hampered by "various unfavourable rumours, in
particular that it was owned by the Russian mafia or that it was a
gentleman's club", the Herald relays.

The liquidators, Christopher McCullagh --
chris.mccullagh@pkfcr.co.nz -- and Stephen Lawrence --
steve.lawrence@pkfcr.co.nz  -- of PKF, revealed this and other
reasons Mr. Gardner gave for the company's failure in a report
released October 1, according to the Herald.

The Herald relates that Mr. Gardner, who said he contributed
NZ$4.8 million to financing the business, the Rugby World Cup also
had a bad impact on the restaurant as it was not in, or close to,
the tournament's fanzone.

The downturn continued for 11 months after the event and its
"legacy" continued to cause cash flow problems, the report relays.

The report says that the company's shareholders then sought to get
finance by selling shares or other arrangements and were
unsuccessful until February this year when Phoenix Group Ventures
came on board.

Phoenix Group Ventures is the shareholder of Phoenix Forex, which
the Financial Markets Authority issued a warning about in August.

Phoenix Forex was selling licenses, costing up to NZ$25,000, for
the OakFX currency trading software, the report adds.


SOLID ENERGY: To be Partially Privatized as Banks Take Shares
-------------------------------------------------------------
Adam Bennett at The New Zealand Herald reports that after having
its "for sale" sign removed when it almost collapsed this year,
state-owned coalminer Solid Energy will be partially privatised in
a restructuring deal revealed on October 1 that could cost the
taxpayer as much as NZ$155 million.

The Herald relates that after months of negotiations between the
company, its banks, the Treasury and the Government, Finance
Minister Bill English and Minister for State Owned Enterprises
Tony Ryall revealed the rescue package for the company, which is
struggling under a NZ$380 million debt pile and has shed 700 jobs
in the past year.

Most of its debt -- $286 million -- is owed to the company's
banks, which will exchange $75 million of that debt for shares in
the company, says the Herald.  While that effectively makes them
part-owners of the stricken company, the deal does not require the
law change needed for the partial sale of state assets under the
Government's "mixed ownership model," the report relays.

That is because the State Owned Enterprises Act allows the
Government to issue non-voting redeemable preference shares of the
type the banks will receive, according to the Herald.

The Herald notes that the shares are redeemable because the
company can buy them back if it wants to.

They are called preference shares because holders would have a
greater claim over the company's assets in a liquidation than the
Government does as holder of Solid Energy's ordinary shares, the
report notes.

However, the Government is also buying NZ$25 million of new
redeemable preference shares itself and is extending two
NZ$50 million loans to the company, the Herald relates.  It will
also make a NZ$30 million "standby" facility available to Solid
Energy.

The Herald relates that a Solid Energy spokeswoman said the deal,
if approved, would reduce Solid Energy's debt by NZ$75 million
immediately.

But debt levels would increase again as the company withdrew money
from the loans provided by the Government, the report notes.

Solid Energy New Zealand Ltd is New Zealand's largest coal mining
company and an investor in research and commercialisation of
sustainable forms of energy that use coal, coal seam gas, biomass,
biodiesel and solar. Solid Energy's core mining business
includes hard coking coal, primarily for export to steel mills
throughout Asia, and thermal coal for the Huntly power station
and other domestic customers in the steel, dairy and cement
industries.



====================
S O U T H  K O R E A
====================


TONGYANG GROUP: Chairman Likely to Lose Control of Group
--------------------------------------------------------
Choi Kyong-ae at The Korea Times reports that Tongyang Group
Chairman Hyun Jae-hyun is likely to lose his control of the
company as five affiliates have filed for court protection to
avoid bankruptcy.

As he failed to guide Tongyang through the continued economic
slowdown, economists urged Mr. Hyun to step down as chairman
taking responsibility for the current dire situation at the
conglomerate, according to the report.

"Under his leadership, Tongyang affiliates have continued to raise
the funds they needed in operating their businesses by selling
corporate bonds and commercial papers to individual investors,"
Lee Phil-sang, invited professor at the economics department of
Seoul National University, told The Korea Times by telephone. "It
is nothing other than a moral hazard."

According to the report, the professor said Tongyang should have
heightened its efforts to restructure, or streamline, its
affiliates to survive a prolonged slump in the construction and
securities industry hit hard by the 2008 financial crisis.

Earlier in a belated effort, the Korea Times recalls, Tongyang
announced its wider restructuring plan to raise funds worth
KRW2 trillion ($1.9 billion) in the first half of 2013 through the
sale of its assets.  Back then, the group said it would be
rearranging its business portfolio, focusing on the cement,
finance and energy businesses, by the end of this year.

Under the plan, the cement-to-brokerage conglomerate has sold some
assets such as heat-recovery plants, ready-mixed concrete plants
and warehouses since late last year, the report relays. But major
deals to sell Tongyang Magic, the oven-making unit, and Tongyang
Power, the coal-fired power plant operator, collapsed early this
week, coincidentally with the receivership filed for by the five
companies, the Korea Times relates.

As of the end of August, Tongyang Group owes KRW900 billion to
financial firms, including KRW450 billion to the state-run Korea
Development Bank, and KRW2 trillion in the form of corporate bonds
and commercial papers to retail investors, the report discloses.

According to the report, Tongyang Group confirmed that in only two
days from September 30 through October 1, five Tongyang affiliates
-- Tongyang Inc., Tongyang Leisure, Tongyang International,
Tongyang Networks and Tongyang Cement & Energy -- all filed for
the court-led debt rescheduling program after they failed to pay
maturing debts valued at 110 billion won.

Following the receivership applications, the Seoul Central
District Court will decide on whether to give the go-ahead to the
protection request by Tongyang affiliates or to let them go belly
up and liquidate, the report notes.

Tong Yang Group is a South Korean conglomerate founded in 1957 as
a cement manufacturer.  The company through its subsidiaries,
engages in constructing houses, and roads and harbors.  Its
products include ready mixed concrete, PHC piles, admixture, low
heat cement, low-heat portland cement, portland cement, and blast
furnace slag cement.



                             *********

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., 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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