TCRAP_Public/140917.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

         Wednesday, September 17, 2014, Vol. 17, No. 184


                            Headlines


A U S T R A L I A

BLUESTONE GLOBAL: Workers Urged to Files Entitlements Claim
VAN EYK: Placed Into Voluntary Administration
WORKFORCE DESIGN: Hall Chadwick Appointed as Administrators


C H I N A

CHINA SHANSHUI: S&P Lowers CCR to 'B+'; Outlook Stable
GUANGZHOU R&F: S&P Lowers CCR to 'BB-' on Rising Leverage


H O N G  K O N G

CHINA FISHERY: Seeks to Amend Covenants on Copeinca's 2017 Notes
CHONG HING: Moody's Rates USD-Denom. Securities Issuance Ba2(hyb)
R&F PROPERTIES: S&P Lowers CCR to 'BB-'; Outlook Stable


I N D I A

AASHIRBAD AGRO: CRISIL Suspends B Rating on INR29MM Cash Credit
BASANTH WIND: CRISIL Cuts Rating on INR150MM Term Loan to 'B'
BHANU INTERNATIONAL: CRISIL Reaffirms B- Rating on INR200MM Loan
CORAL TELECOM: CRISIL Suspends D Rating on INR203.5MM Bank Loan
EURO SAFETY: CRISIL Suspends B+ Rating on INR80MM Term Loan

HI-ROCK CONSTRUCTION: ICRA Reaffirms B+ Rating on INR20cr FB Loan
ISHWAR VENTURES: CRISIL Suspends B Rating on INR50MM Cash Credit
JAYSHREE TOOLS: ICRA Assigns 'D' Rating to INR3cr Cash Credit
MAHABIR INDUSTRIES: ICRA Reaffirms B+ Rating on INR9cr LT Loan
MAURYA PRINTERS: CRISIL Suspends B Rating on INR50MM Term Loan

MOUJI SILK: ICRA Assigns 'B+' Rating to INR5.90cr Fund-Based Loan
NARAYAN COTTON: CRISIL Assigns 'B' Rating to INR160MM Cash Credit
NAVKAR BUILDCON: ICRA Assigns B- Rating to INR12.50cr LT Loan
NETWING TECHNOLOGIES: CRISIL Suspends B+ INR192M Cash Loan Rating
PEPSU ROAD: ICRA Reaffirms B+ Rating on INR40cr Overdraft Limits

PRATIK HOSIERY: CRISIL Reaffirms D Rating on INR50M Packing Loan
PRESIDENCY IMPEX: ICRA Reaffirms 'B' Rating on INR3cr Cash Credit
RONIX POLYMERS: CRISIL Suspends B Rating on INR67.5MM Bank Loan
SEPAL CERAMIC: ICRA Reaffirms B+ Rating on INR4.40cr Cash Credit
SHANKER COILS: CRISIL Cuts Rating on INR27MM Term Loan to 'D'

SHREE SITA: ICRA Reaffirms B Rating on INR7cr Fund Based Limits
SRI SAI: CRISIL Suspends 'D' Rating on INR200MM Term Loan
VICTORIA MOTORS: CRISIL Suspends D Rating on INR65MM Cash Credit
VJTF INFRASTRUCTURE: CRISIL Suspends B- Rating on INR250MM Loan
ZUBERI FIBRES: CRISIL Suspends D Rating on INR375MM Term Loan


I N D O N E S I A

* OJK Declares 5 Indonesian Insurance Firms Insolvent


J A P A N

PIONEER CORP: To Cut 2,000 Jobs in Bid To Restructure


M A L A Y S I A

MALAYSIA AIRLINES: Embarks on 5th Recovery Plan in a Decade


N E W  Z E A L A N D

FELTEX CARPET: Shareholders Lose NZ$185 Million Claim


                            - - - - -


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A U S T R A L I A
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BLUESTONE GLOBAL: Workers Urged to Files Entitlements Claim
-----------------------------------------------------------
Jenny Rogers at Gold Coast Bulletin reports that hundreds of
former Queensland employees of Bluestone Global are being urged to
claim millions of dollars of entitlements they are owed.

Bluestone workers are owed a total of about AUD12.3 million in
entitlements, the Bulletin says.

According to the report, liquidators KordaMentha Restructuring
said more than 3,000 former workers had so far failed to file
entitlement claims.

The Bulletin relates that partner Craig Shephard said only 868 of
Bluestone's 4,000 employees and labour hire staff had filed
claims, despite advice about how to make the claims being sent to
all employees and labour hire staff four weeks ago.

More than 30 per cent of Bluestone employees were based in
Queensland, including a number from the Gold Coast, and
KordaMentha believes hundreds have yet to claim their entitlements
following the collapse of the company in early August, the report
notes.

The Bulletin adds that Mr. Shepard said the funds were being paid
under the Commonwealth's Fair Entitlement Guarantee Scheme (FEG),
which provides entitlements when companies in liquidation have no
cash to cover them.

The report says the money is paid to KordaMentha Restructuring who
pass it on to the former employees. But the money does not flow
until the employees make a claim to the Federal Government.

According to the Bulletin, Mr. Shepard said less than
25 per cent of Bluestone's workers had made a claim in the four
weeks since they were advised to do so on August 15.

The FEG scheme pays all basic entitlements, including unpaid
wages, regular allowances, annual leave, long service leave, pay
in lieu of notice and redundancy, the report notes.

FEG does not cover unpaid superannuation contributions, says the
Bulletin.

"The FEG has been very quick to respond to the claims. Sometimes
the process takes months but in this case the money for the first
99 workers is already flowing after only five weeks and this will
be paid to the workers in the next few days," the report quotes
Mr. Spehard as saying.  "KordaMentha Restructuring cannot make the
applications on behalf of the workers -- it must be done
themselves."

According to the report, four thousand workers lost their jobs
when Bluestone Global went into administration and its
subsidiaries into liquidation on August 4.

More than 90 per cent of the workers were offered jobs in other
companies within two days of the company being placed in
administration, the report relates.

The Bulletin relates that while the Hunter Valley was the hardest
hit by job losses, more than 30 per cent of the contract sites
operated by the Melbourne-based company were in Queensland,
including on the Gold Coast.

The company also had sites in Rocklea, Virginia, Mackay,
Townsville and Cairns, the Bulletin adds.

Bluestone, based in Melbourne, was an Australian-owned global
company specialising in labour hire, mining services and
professional recruitment.  Bluestone's ResCo subsidiaries are a
major provider of mining services in the Hunter Valley.

Craig Shepard and Mark Uebergang of KordaMentha Restructuring were
appointed Voluntary Administrators of Bluestone Global Limited and
Liquidators of the majority of its Australian subsidiary companies
on Aug. 4, 2014.


VAN EYK: Placed Into Voluntary Administration
---------------------------------------------
Eloise Keating at SmartCompany reports that an Australian
investment research, advice and funds management company founded
in 1989 has collapsed.

SmartCompany relates that after weeks of speculation, van Eyk
Research called in voluntary administrator Trent Hancock --
thancock@moorestephens.com.au -- of Moore Stephens Sydney
Corporate Recovery Group on September 15.

According to the report, van Eyk Research has four business arms -
- investment research through van Eyk Research, consulting through
van Eyk Consulting, financial advisory through van Eyk Advice and
funds management through van Eyk Blueprint Series -- and the
administrators said in a statement it entered administration
because of the "recent and sudden closure of the Blueprint Series
of managed funds".

"This has presented short-term financial challenges as it is
currently structured to the parent company, van Eyk Research Pty
Ltd and the company determined that the prudent course of action
was to enter voluntary administration," said Moore Stephens.

SmartCompany relates that Moore Stephens said the administration
process will allow for the quarantine and preservation of van
Eyk's investment research, consulting and financial advisory arms,
while options for capital restructuring are investigated.

SmartCompany, citing Fairfax, says Macquarie Group, which is the
entity responsible for the Blueprint Series of funds, forced the
closure of 13 of the 14 funds, which contributed approximately 65%
of van Eyk's revenues, after a AUD31 million investment made by
British hedge fund Artefact was alleged to have breached a van Eyk
investment mandate.

However, Moore Stephens said unit holders in the Blueprint Series
funds are not involved in the administration, with Macquarie Group
still responsible for those funds, the report notes.

According to SmartCompany, Fairfax reported the Blueprint Series
of funds at one point managed "close to [AUD]1 billion" but recent
events are said to have damaged the value of the remaining van Eyk
business. One investor told Fairfax the van Eyk research arm was
previously worth AUD20 million but could now be valued at
AUD5 million or below, SmartCompany relays.

SmartCompany adds that Van Eyk chief executive Mark Thomas
labelled the administration process as "regrettable" but said it
is a necessary step.

"We will work actively and constructively with the administrator
and all our stakeholders to facilitate a more sustainable
corporate platform to ensure certainty and growth for our core
business," said Mr. Thomas in the same statement, notes the
report.  "We remain absolutely committed to providing our clients
with a seamless quality research and consulting service and it
will remain business as usual for van Eyk in delivering on this
commitment while the voluntary administration process is
underway."


WORKFORCE DESIGN: Hall Chadwick Appointed as Administrators
-----------------------------------------------------------
Richard Albarran and Brent Kijurina of Hall Chadwick were
appointed as administrators of Workforce Design on Sept. 15, 2014.

A first meeting of the creditors of the Company will be held at
Hall Chadwick, Level 40, 2 Park Street, in Sydney, on Sept. 24,
2014, at 11:00 a.m.



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CHINA SHANSHUI: S&P Lowers CCR to 'B+'; Outlook Stable
------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on China-based cement producer
China Shanshui Cement Group Ltd. (Shanshui) to 'B+' from 'BB-'.
The outlook is stable.

S&P also lowered its long-term issue rating on the company's
outstanding senior unsecured notes to 'B' from 'B+'.  At the same
time, S&P affirmed its long-term Greater China regional scale
rating on Shanshui at 'cnBB' and on the notes at 'cnBB-'.  S&P
removed all the ratings from CreditWatch, where they were placed
with negative implications on April 17, 2014.

"We downgraded Shanshui because we believe the company faces
higher refinancing risks than we previously expected," said
Standard & Poor's credit analyst Huma Shi.

S&P estimates that Shanshui's liquidity sources will cover less
than 1.0x of its liquidity needs over the next 12 months.  The
company lacks a concrete plan to manage its weakening debt
maturity profile, in S&P's opinion.  S&P therefore assess
Shanshui's liquidity as "less than adequate," as its criteria
define the term.

Shanshui continues to rely on short-term bank loans to repay its
financial obligations and could not extend the maturity profile
when market conditions were more favorable.  Access to credit has
worsened for cement companies because lenders are more cautious in
lending to companies operating in competitive industries that are
facing overcapacity.

S&P expects operating conditions for Shanshui to stabilize over
the next 12 months, but a recovery is uncertain.  S&P anticipates
that cement prices will stabilize owing to increased
infrastructure projects in northeast China, but weaker property
demand will temper the benefits.

Shanshui is likely to maintain its leading 40% market share in its
core Shangdong region, in S&P's opinion.  Shanshui's acquisitions
of cement companies in nearby regions over the past two years have
enhanced its competitive position.  However, the company's
profitability has softened and S&P expects it remain so because of
higher costs as a result of the government's tighter pollution
control rules than before.

S&P expects limited improvement in Shanshui's cash flow over the
next 12 months from its acquisitions because of subdued cement
demand owing to the slowdown in China's economic growth and
overcapacity in the cement sector.  The company's cash flow has
weakened in past two years due to aggressive debt-funded
expansion.  S&P anticipates that Shanshui will control its capital
expenditure and not materially increase its total debt.  In S&P's
base case, it expects the ratio of funds from operations (FFO) to
debt will be about 12% in 2014 and 13% in 2015, a modest
improvement from 2013. Shanshui's debt-to-EBITDA ratio will also
stay flat in 2014 at the 2013 level of about 4.5x, but improve
modestly in 2015.

"The stable outlook reflects our expectation that Shanshui's
continued access to funding from the domestic capital market and
banks will temper the refinancing risk over the next 12 months,"
said Ms. Shi. "We anticipate that Shanshui's operating performance
and profit margin will stabilize and its debt leverage will not
increase over the period."

S&P may lower the ratings if Shanshui's access to domestic capital
markets and banking facilities weaken or its debt maturity profile
deteriorates to less than two years from 2.3 years now.  This
would lead the company's liquidity to become "weak," as defined in
S&P's criteria.

S&P may also downgrade Shanshui if the company's sales volumes or
average selling prices are worse than its base-case assumptions,
such that the ratio of FFO to debt falls below 12% on a sustained
basis.

S&P may upgrade Shanshui if the company manages its debt
maturities and obtains long-term refinancing, such that its
liquidity sources are at least 1.2x uses over the next 12 months.
We believe such scenario is unlikely over the next 12 months.

S&P may also raise the ratings if Shanshui's cement demand rises
more than 10% and the company can sustain its profit margins, such
that the ratio of FFO to debt improves to more than 15% on a
sustained basis.


GUANGZHOU R&F: S&P Lowers CCR to 'BB-' on Rising Leverage
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on China-based property developer Guangzhou R&F
Properties Co. Ltd. to 'BB-' from 'BB'.  The outlook is stable.
At the same time, S&P lowered its long-term Greater China regional
scale ratings on the company to 'cnBB+' from 'cnBBB-'.

S&P lowered the rating on R&F because it anticipates that the
company's leverage will remain high over the next 12 months, given
its aggressive debt-funded expansion.  Weak market demand and a
tightened credit environment should also continue to weigh on
R&F's sales performance, which has been lower than S&P expected
this year.  S&P has therefore revised its assessment of the
company's financial risk profile to "highly leveraged" from
"aggressive."

In S&P's view, R&F's aggressive growth aspirations and expansion,
particularly in 2013, have significantly weakened its financial
strength.  Attributable land premiums amounted to Chinese renminbi
(RMB) 43 billion, or 103% of its contracted sales in 2013, much
higher than the industry average of 40%-50%.  S&P expects leverage
to remain high over the next 12-18 months, because of large
construction costs and outstanding land costs.

"R&F will need to achieve strong sales performances in order to
absorb its large land premium payments and alleviate the
heightened financial burden of its high land costs," said Standard
& Poor's credit analyst Matthew Kong.  "Lower-than-expected sales
would result in a material rise in leverage due to weakened cash
flow generation.  R&F's contracted sales have been below our
expectation this year, and the company has lowered its annual
target to RMB60 billion from RMB70 billion."

R&F's sales are likely to recover moderately in the rest of this
year because the company has considerable saleable resources and
governments are gradually loosening their measures to stabilize
the property market.  However, S&P believes it will be challenging
for R&F to achieve its RMB60 billion sales target, given the
oversupply in the market.

"The company needs to achieve sales of RMB6.7 billion in each of
the remaining months of this year.  This is much higher than an
average of about RMB4 billion each month so far this year," Mr.
Kong said.

S&P anticipates that R&F will maintain good profitability over the
next two years, despite a modest decline in margins due to rising
land and construction costs.  R&F is attempting to balance
moderate asset turnover and satisfactory selling prices.  The
company has a relatively long asset turnover cycle and a lower
sell-through ratio than its peers because it has a greater focus
on commercial property development.  In addition, R&F's profit-
driven business model makes the company reluctant to boost sales
through aggressive price cuts.

S&P expects R&F's total debt to continue to rise over the next 12
months but at a slower pace than last year due to a slowdown in
land purchases.  S&P treats the company's perpetual bonds as debt
because of their short effective tenor.  The bonds, issued by
R&F's onshore project companies, contain a call option and have
steep interest rate step-up features.

The outlook is stable, reflecting S&P's expectation that R&F will
improve its property sales and maintain above-average profit
margins over the next 12 months.  S&P anticipates that the company
will be less aggressive in its debt-funded expansion and its high
leverage will not further deteriorate over the same period.

S&P could lower the rating if: (1) R&F's property sales are
significantly lower than RMB54 billion for 2014 and its EBITDA
margins are materially weaker than 33%-35%; (2) the company
continues to pursue debt-funded expansion more aggressively than
we anticipate, such that its EBITDA interest coverage falls below
2x; or (3) R&F's liquidity and funding flexibility materially
weaken and the company faces increasing refinancing risk because
of high short-term debt maturities.

S&P could raise the rating if R&F improves sales, maintains good
profitability, and controls leverage, such that the ratio of total
debt to EBITDA is less than 5x on a sustained basis.

RATINGS SCORE SNAPSHOT

Corporate Credit Rating: BB-/Stable/--

Business risk: Satisfactory
     Country risk: Moderately high
     Industry risk: Moderately high
     Competitive position: Satisfactory

Financial risk: Highly leveraged
Cash flow/Leverage: Highly leveraged

Anchor: b+

Modifiers
     Diversification/Portfolio effect: Neutral (no impact)
     Capital structure: Neutral (no impact)
     Liquidity: Adequate (no impact)
     Financial policy: Neutral (no impact)
     Management and governance: Fair (no impact)
     Comparable rating analysis: Positive (+1 notch)



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CHINA FISHERY: Seeks to Amend Covenants on Copeinca's 2017 Notes
----------------------------------------------------------------
David Yong and Christine Jenkins, writing for Bloomberg News,
reported that bondholders of Corporacion Pesquera Inca SAC
bondholders are calling upon its parent, Singapore-listed China
Fishery Group Ltd. (CFG), to redeem its bonds as it pushes ahead
to relax the notes' terms and conditions.

The report said China Fishery is trying for a third time to get
noteholders of Lima, Peru-based unit Copeinca to agree to a deal
whereby the business in Peru would guarantee as much as $1.2
billion of debt at the parent level.  The new deadline is 5 p.m.
New York time on Sept. 18 after two earlier ones -- on July 30 and
Aug. 21 -- passed without bondholders granting the majority
approval required.

Bloomberg recounted that China Fishery is seeking to amend
covenants on Copeinca's $250 million of 9% notes due February 2017
so that the world's third-largest fishmeal producer and holder of
the biggest anchovy quota permit in Peru can guarantee parent-
level debt, including $650 million of credit lines, $300 million
of other bonds due July 2019 and future borrowings, according to a
July 17 consent solicitation document.  China Fishery is offering
$10 for every $1,000 in face value of bonds held, or 1 cent on the
dollar as a consent fee.

"They're trying to give us less than what we already have and
nobody cuts off one's own nose," Patrik Kauffmann, a money manager
in Zurich at Aquila & Co., said by e-mail on Sept. 10, the
Bloomberg report said.  His firm manages about $10.7 billion of
assets, including Copeinca notes. "They should call the bond. The
consent process is likely to be a futile exercise."

Bloomberg said a third failure to win over bondholders could renew
pressure on China Fishery's credit ratings. Standard & Poor's cut
China Fishery and Copeinca by one level to B, or five notches
below investment grade, in August, citing refinancing risks.
Moody's Investors Service said in July it will review its B2
rating if the consent process fails.

China Fishery is headquartered in Hong Kong.  It spent more than
$782 million taking over Copeinca in 2013, according to Bloomberg.

Copeinca has $2.5 billion of assets as at the end of March 2014.

According to Bloomberg, S&P has indicated that China Fishery
funded the acquisition in part with loans that banks say must now
be guaranteed by Copeinca.  China Fishery got a four-year $650
million credit facility in March from China Citic Bank
International Ltd., Rabobank International, DBS Bank Ltd.,
Standard Chartered Plc and HSBC Holdings Plc, according to a March
24 statement. The proceeds were meant to help redeem the Copeinca
notes, among other things. That buyback plan however was scrapped
in May in favor of the consent solicitation process.


CHONG HING: Moody's Rates USD-Denom. Securities Issuance Ba2(hyb)
----------------------------------------------------------------
Moody's Investors Service, has assigned Ba2(hyb) rating to Chong
Hing Bank's proposed issuance of USD-denominated non-cumulative,
subordinated, undated Additional Tier 1 capital securities. The
outlook on the rating is negative, in line with the negative
outlook for the bank's existing ratings.

The terms and conditions of the capital securities incorporate
Basel III-compliant non-viability language in accordance with Hong
Kong capital rules, and will qualify as regulatory Additional Tier
1 capital.

The rating is subject to receipt of final documentation, the terms
and conditions of which are not expected to change in any material
way from the draft documents that Moody's has reviewed.

Ratings Rationale

The rating is positioned three notches below the bank's baa2
baseline credit assessment (BCA)/Adjusted BCA, in line with
Moody's standard notching guidance for preferred securities with
loss triggered at the point of non-viability on a contractual
basis.

The three-notch difference from the Adjusted BCA reflects the
probability of impairment associated with non-cumulative coupon
suspension, as well as the likelihood of high loss severity when
the bank reaches the point of non-viability.

Under the terms and conditions, the principal and any accrued but
unpaid distribution on these capital securities would be written
down, partially or in full, in the event that the HKMA notifies
the bank that without such write-off, the bank would become non-
viable, or if the relevant government body, government officer or
regulatory body decide to make a public sector injection of
capital without which the bank would become non-viable. The amount
of write-off has to be sufficient to ensure that the non-viability
event ceases to continue.

In addition, for classification as Additional Tier 1 capital,
Chong Hing Bank as a going concern may choose not to pay
distributions on a non-cumulative basis. As such, the
distributions on these capital securities are fully discretionary
though a common share dividend stopper applies if a distribution
is missed.

These securities are senior to common shareholders, but junior to
all depositors, general creditors, senior debt and subordinated
debt holders.

The bank has long-term deposit ratings at Baa2, in line with its
standalone BCA. The bank's standalone credit assessment takes into
account its sound capitalization position, liquid balance sheet,
and outstanding asset quality metrics. It also takes into account
the bank's small franchise and modest profitability.

The bank's ratings are on negative outlook, after Yue Xiu
Enterprises (Holdings) Limited's (Yuexiu, unrated) acquisition of
75% of the bank's issued shares was completed on 14 February 2014.
The negative outlook reflects Moody's concern that the takeover
could lead to a weakening in the bank's credit profile over the
next 1-2 years. Management will likely pursue higher profitability
and transition its asset mix from low-risk and low-yielding assets
to higher-yielding assets which are potentially riskier.

Chong Hing Bank's other ratings are:

- Long-term/short-term deposits: Baa2/P-2

- Foreign currency subordinated debt: Baa3

The outlook on all ratings is negative.

What could change the ratings up/down

Since the rating outlook is negative, upward rating action is
relatively unlikely. The outlook may revert to stable if it
becomes clear that the bank can maintain its conservative risk
appetite after the ownership change, and maintain good asset
quality and capital adequacy, while increasing its franchise and
market position.

Chong Hing Bank's ratings could be downgraded if the change in
ownership results in more aggressive balance sheet growth and
risk-taking.

The bank's standalone assessment could be adjusted lower if the
bank cannot maintain sound asset quality and capital adequacy
while it expands. A downward adjustment could occur if the bank's
common equity Tier 1 ratio falls below 9%, or its impaired loans
rise above 2% of gross loans.

In addition, a material increase in its Mainland exposures will
render the bank more vulnerable to adverse economic developments
in China, and could trigger a downward adjustment in its
standalone assessment. However, evidence that Yuexiu group has the
willingness and capacity to support Chong Hing Bank could result
in the deposit rating being affirmed even if the baseline credit
assessment is lowered in such circumstances.

The principal methodology used in this rating was Global Banks
published in July 2014.

Chong Hing Bank, headquartered in Hong Kong, had total assets of
HKD86.8 billion as of 30 June 2014.


R&F PROPERTIES: S&P Lowers CCR to 'BB-'; Outlook Stable
-------------------------------------------------------
Standard & Poor's Ratings Services lowered its long-term corporate
credit rating on R&F Properties (HK) Co. Ltd. (R&F HK) to 'BB-'
from 'BB'.  The outlook is stable.  At the same time, S&P lowered
its issue rating on the company's outstanding guaranteed senior
unsecured notes to 'B+' from 'BB-'.

S&P also lowered its long-term Greater China regional scale
ratings on the company to 'cnBB+' from 'cnBBB-' and on the notes
to 'cnBB' from 'cnBB+'.  R&F HK is a Hong Kong-based offshore
investment holding company.

S&P lowered the rating on R&F HK to reflect its downgrade earlier
of the company's parent, Guangzhou R&F Properties Co. Ltd. (BB-
/Stable/--; cnBB+/--).  S&P downgraded the parent because of its
increasing leverage and weaker property sales than it expected.
The rating on R&F HK is linked to that on Guangzhou R&F.

S&P continues to assess R&F HK as a "core" subsidiary of the
parent and apply a top-down approach to derive the rating on R&F
HK.  The company's operations are fully integrated with those of
Guangzhou R&F.

"We expect Guangzhou R&F to continue to fully own R&F HK, and
extend strong and consistent support to R&F HK," said Standard &
Poor's credit analyst Matthew Kong.  "R&F HK holds key group
investment properties, including the group's headquarters,
Guangzhou R&F Center.  R&F HK also co-owns some of Guangzhou R&F's
projects.  Therefore, the rating on R&F HK is equalized with the
rating on Guangzhou R&F."

S&P believes Guangzhou R&F's weakened financial risk profile will
have a direct impact on R&F HK's credit profile, given the
subsidiary's reliance on parental support.  Although the company
has some income from property investment and hotels operations,
R&F HK's contribution to the parent company in terms of revenue
and cash flow remains small.  S&P expects R&F HK to remain
Guangzhou R&F's sole offshore financing platform.  S&P anticipates
that R&F HK's financial risk profile will remain "highly
leveraged" because its generation of operating cash flows is weak
and it could continue to incur considerable new debt for the
group.

The issue rating is one notch lower than the corporate credit
rating on R&F HK, reflecting structural subordination.

The outlook is stable, reflecting the outlook on the parent,
Guangzhou R&F, and S&P's assessment that R&F HK will maintain its
position as a "core" subsidiary of Guangzhou R&F over the next 12
months.  The stable outlook on Guangzhou R&F reflects S&P's
expectation that the company will improve its property sales and
maintain above-average profit margins over the next 12 months.
S&P anticipates that the company will be less aggressive in its
debt-funded expansion and its leverage will not further
deteriorate at the same period.

S&P could lower the rating on R&F HK if it downgrades Guangzhou
R&F.  S&P could also lower the rating if: (1) it believes that R&F
HK's strategic importance to Guangzhou R&F has weakened because of
a change in the parent's strategy; or (2) Guangzhou R&F's control
and supervision of R&F HK weakens.

S&P could upgrade R&F HK if it upgrades Guangzhou R&F.

Ratings Score Snapshot
Corporate Credit Rating: BB-/Stable/--

Business risk: Weak

     Country risk: Moderately high
     Industry risk: Moderately high
     Competitive position: Weak

Financial risk: Highly leveraged
Cash flow/Leverage: Highly leveraged

Anchor: b

Modifiers
     Diversification/Portfolio effect: Neutral (no impact)
     Capital structure: Neutral (no impact)
     Liquidity: Adequate (no impact)
     Financial policy: Neutral (no impact)
     Management and governance: Fair (no impact)
     Comparable rating analysis:  Neutral (no impact)

Stand-alone credit profile: b
Group credit profile: bb-
Entity status within group: Core (+2 notches from SACP)



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AASHIRBAD AGRO: CRISIL Suspends B Rating on INR29MM Cash Credit
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Aashirbad Agro Industries.

                       Amount
   Facilities         (INR Mln)       Ratings
   ----------         ---------       -------
   Bank Guarantee         2.2         CRISIL A4 Suspended
   Cash Credit           29.0         CRISIL B/Stable Suspended
   Proposed Long Term
   Bank Loan Facility     1.8         CRISIL B/Stable Suspended
   Term Loan             22.4         CRISIL B/Stable Suspended

The suspension of ratings is on account of non-cooperation by AAI
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, AAI is yet to
provide adequate information to enable CRISIL to assess AAI's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

AAI was established in 2009 as a partnership firm by the Burdwan
(West Bengal)-based Neogi and Banerjee families. The firm is in
the business of milling non-basmati parboiled rice. Its
manufacturing facility is at Burdwan. AAI's day-to-day operations
are looked after by its partner, Mr. Probin Neogi.


BASANTH WIND: CRISIL Cuts Rating on INR150MM Term Loan to 'B'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facility of
Basanth Wind Farm (BWF; part of the Basanth group) to 'CRISIL
B/Stable' from 'CRISIL B+/Stable'.

                          Amount
   Facilities           (INR Mln)    Ratings
   ----------           ---------    -------
   Drop Line Overdraft     80        CRISIL B/Stable (Downgraded
   Facility                          from 'CRISIL B+/Stable')

   Long Term Loan         150        CRISIL B/Stable B/Stable
                                     (Downgraded from
                                     'CRISIL B+/Stable')

The rating downgrade reflects weakening of the Basanth group's
liquidity, marked by insufficient cash accruals to meet its debt
obligations. The group is expected to generate cash accruals of
around INR41 million compared to repayment obligations of INR50
million. However, the liquidity will be supported by continuous
support from its promoters in the form of unsecured loans.

The rating reflects the susceptibility of the Basanth group's
operations to regulatory environment, its small scale of
operations, and segmental concentration in its revenue profile.
The group also has a below-average financial risk profile, marked
by high gearing and modest debt protection metrics. These rating
weaknesses are partially offset by the extensive experience of the
Basanth group's promoters in the wind energy business.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of BWF, Kshema Builders & Developers
(KBD), Kairaly Securities (KS), Kshema Windfarm Services (KWS),
and Mayoori Towers (MT). This is because all the entities,
together referred to as the Basanth group, are in a similar line
of business and are managed by the same proprietor. Furthermore,
there is fungible cash flow among these entities, and the
management has indicated that the entities will support one
another financially as and when required.

Outlook: Stable

CRISIL believes that the Basanth group's credit risk profile will
remain stable, backed by its promoters' extensive industry
experience, over the medium term. The outlook may be revised to
'Positive' if the group diversifies its business risk profile, and
achieves substantial and sustained growth in revenue, leading to
higher-than-expected cash accruals and improvement in capital
structure. Conversely, the outlook may be revised to 'Negative' in
case the group's profitability deteriorates and there is pressure
on its revenue, or larger-than-expected working capital
borrowings, leading to pressure on its liquidity.

The Basanth group, which comprises Tamil Nadu-based entities BWF,
KBD, KS, MT and KWS, is in the windmill power project business.
The group is promoted and managed by Mr. Satish Basant.


BHANU INTERNATIONAL: CRISIL Reaffirms B- Rating on INR200MM Loan
----------------------------------------------------------------
CRISIL's rating on the long-term bank facilities of Bhanu
International Resorts and Hotels Pvt Ltd continue to reflect
Bhanu's exposure to risk related to the commercialization of its
on-going hotel project, and the vulnerability to cyclicality in
the hospitality industry. These rating weaknesses are partially
offset by the benefits Bhanu derives from its promoters' extensive
industry experience and funding support, and the favorable
location of its hotel.

                        Amount
   Facilities          (INR Mln)    Ratings
   ----------          ---------    -------
   Long Term Loan         200       CRISIL B-/Stable (Reaffirmed)
   Proposed Term Loan      60       CRISIL B-/Stable (Reaffirmed)

Outlook: Stable

CRISIL believes that Bhanu will continue to benefit over the
medium term from its promoters' extensive industry experience and
the funding support. The outlook may be revised to 'Positive' in
case of higher than expected cash accruals or equity infusion in
the initial phase of operations resulting in significant
improvement in the company's liquidity. Conversely, the outlook
may be revised to 'Negative' in case of further pressure on its
liquidity, most-likely because of further time overrun in the
project, or pressure on the occupancy levels, or any downturn in
the economy resulting in slowdown in the hospitality sector.

Incorporated in 2008, Bhanu has developed a 68-room three star
hotel in Porur (Tamil Nadu). The construction of the hotel started
in December 2010 and is expected to commence operations from
September 2014. Bhanu's overall operations are managed by Mr.
Suman Voora.


CORAL TELECOM: CRISIL Suspends D Rating on INR203.5MM Bank Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Coral
Telecom Ltd.

                          Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Bank Guarantee          30         CRISIL D Suspended
   Cash Credit            120         CRISIL D Suspended
   Letter of Credit        60         CRISIL D Suspended
   Proposed Long Term
   Bank Loan Facility     203.5       CRISIL D Suspended
   Term Loan               15         CRISIL D Suspended

The suspension of ratings is on account of non-cooperation by CTL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, CTL is yet to
provide adequate information to enable CRISIL to assess CTL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'

CTL was set up in 1996 by a group of professionals from the
telecommunication and information technology sectors. The company
was set up as Usha Infomatics Pvt Ltd in 1991 to market EPBAX
systems in India. It procured its products from Usha Electronics
Ltd and marketed them under the UE brand. In 1996, CTL integrated
backward by manufacturing and supplying integrated switch EPBAX
systems for enterprise applications; it was also reconstituted as
a limited company and renamed as CTL. The company enhanced its
product portfolio by introducing innovative switching products for
voice video and data delivery that support wireline as well as
mobility applications.


EURO SAFETY: CRISIL Suspends B+ Rating on INR80MM Term Loan
-----------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Euro Safety Footwear (India) Pvt Ltd.

                         Amount
   Facilities           (INR Mln)     Ratings
   ----------           ---------     -------
   Cash Credit              20        CRISIL B+/Stable Suspended
   Letter of credit &
   Bank Guarantee           30        CRISIL A4 Suspended
   Packing Credit           65        CRISIL A4 Suspended
   Post Shipment Credit     85        CRISIL A4 Suspended
   Term Loan                80        CRISIL B+/Stable Suspended

The suspension of ratings is on account of non-cooperation by ESFL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, ESFL is yet to
provide adequate information to enable CRISIL to assess ESFL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

ESFL was set up in 2004 by Mr. Kulbir Singh. The company
manufactures safety footwear at its facilities in Agra (Uttar
Pradesh), with capacity of around 1.2 million pairs per annum. It
mainly exports its products to Europe.


HI-ROCK CONSTRUCTION: ICRA Reaffirms B+ Rating on INR20cr FB Loan
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to INR20
crore fund based facilities of Hi-Rock Construction Private
Limited.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term fund        20.00       [ICRA]B+; Reaffirmed
   based facility

The rating reaffirmation takes into consideration significant
market risks that Hi-Rock Construction Pvt Ltd (HCPL) is exposed
to. There is also stiff competition from several completed and
ongoing projects in the vicinity leading to low inventory sales of
just 32% till date as well as execution risks associated with the
ongoing project as the pending cost needs to be funded through
unsecured loans from promoters and customer advances. These, in
turn, are dependent on regular flat bookings and high collection
efficiency of the management. The assigned ratings also takes into
consideration the debt repayment schedule of the company which
will be initiated much before the expected completion date of
project, leading to refinancing risk and tight liquidity position
for the company. ICRA also takes note of the stretched capital
structure of the company though a significant portion of the debt
consists of unsecured loans as quasi capital from promoters and
its group companies, which leads to moderately stretched capital
structure to an extent.

The rating, however, favorably factors in the established
experience of the promoters in the real estate and construction
business along with the operational support it receives from its
group companies in the similar line of business. The rating also
considers the locational advantage and low regulatory risks since
most of the approvals for its ongoing residential redevelopment
project are in place.

Hi-Rock Construction Private Limited was incorporated in 2003 with
the objective of engaging into residential redevelopment projects
in South Mumbai. The company has a registered office in Dadar,
Mumbai. Mr. Heeralal Doshi who has experience of around two
decades in the industry is the key management personnel of the
company.

Recent updates
As per FY14 provisional figures shared by the company, the company
has achieved an operating profit of ~Rs. 0.54 crore against a
turnover of ~Rs. 0.77 crore.


ISHWAR VENTURES: CRISIL Suspends B Rating on INR50MM Cash Credit
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Ishwar
Ventures Pvt Ltd.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Cash Credit            50         CRISIL B/Stable Suspended

The suspension of ratings is on account of non-cooperation by IVPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, IVPLis yet to
provide adequate information to enable CRISIL to assess IVPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'

IVPL, incorporated in 2000 and promoted by Kolkata-based Gupta
family, is engaged in the saree wholesaling business. It has a
shop in Park Street (Kolkata). Although the company was
incorporated in 2000, it commenced commercial operations in 2010-
11 (refers to financial year, April 1 to March 31). Its promoters,
the Gupta family, have been in the same line of business for the
past three decades through a group entity.


JAYSHREE TOOLS: ICRA Assigns 'D' Rating to INR3cr Cash Credit
-------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]D to the INR3.00
crore cash credit facility and INR2.00 crore working capital term
loan of Jayshree Tools and Assemblies Private Limited.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Fund Based Limit-      3.00        [ICRAD assigned
   Cash Credit

   Fund Based Limit-      2.00        [ICRA]D assigned
   Working Capital
   Term Loan

The assigned rating primarily takes into account JTAPL's
unsatisfactory track record in timely servicing of debt
obligations, leading to overdue principal and interest on term
loan as well as constant overutilization of the working capital
limits. The rating also factors in JTAPL's small scale of current
operations with de-growth in the top-line over the last two
fiscals and high client concentration risk as a major portion of
the sales are being made to Tata Motors Limited (TML) and its
group companies. The financial risk profile of the company is
characterized by an aggressive capital structure, depressed level
of coverage indicators and high working capital intensity of
operations, adversely impacting liquidity. The rating, however,
favourably considers the experience of the promoters in the auto
component manufacturing business and strategic location of the
company's manufacturing unit in close proximity to key customers
and suppliers.

JTAPL was incorporated in April 2013 by Mr. Sanjay Kumar Palsania,
which took over the operations of Jayshree Enterprises (JE), as a
partnership firm. The company is engaged in manufacturing of
automobile and fabricated components for Tata Motors Limited
(TML), and its group companies, and Indian railways. The company
has an installed capacity to manufacture 950 tonnes per annum
(TPA) of components. The manufacturing facility is located at
Rahargora, Jamshedpur.

Recent Results
In 2013-14, the company reported a profit before tax of INR0.12
crore (provisional) on an operating income of INR5.71 crore
(provisional), as compared to a net profit of INR0.30 crore on an
operating income of INR6.53 crore in 2012-13.


MAHABIR INDUSTRIES: ICRA Reaffirms B+ Rating on INR9cr LT Loan
--------------------------------------------------------------
ICRA has reaffirmed its [ICRA]B+ rating on the INR9 crore long-
term, fund-based facilities of Mahabir Industries.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Fund Based, Long-      9.00        [ICRA]B+ reaffirmed
   Term Facility

The rating reaffirmation takes into account the modest growth
(~12%) in the operating income of the firm during 2013-14 and the
favourable demand outlook for rice bran oil in the domestic
market. The revenue growth in 2013-14 was driven primarily by
increase in realizations of rice bran oil as well as sunflower oil
on account of rise in raw material costs owing to a relatively
weak crop season in Oil Year (OY) 2014. The rating continues to be
constrained by the small scale and low value-added nature of the
entity's operations; the highly fragmented nature of edible oils
industry characterized by the presence of a large number of
unorganized players, which results in intense competitive
pressures and thin profitability margins. The rating also
incorporates the exposure of the firm's profitability to agro-
climatic risks and global edible oil price movements as well as
the risks inherent in the partnership form of business. The rating
also takes into account the highly leveraged capital structure and
stretched coverage indicators of the firm. The rating, however,
continues to favourably factor in the extensive experience of the
promoters in the edible oils industry; the entity's competitive
advantage in raw material procurement on account of its presence
in the rice producing belt of Haryana and the favourable demand
outlook for rice bran oil in the domestic market. The ability of
the firm to protect its margins and improve its capital structure,
thereby leading to an improvement in the debt coverage metrics
will be the key rating sensitivities going forward.

Incorporated in 1992, Mahabir Industries is primarily engaged in
extraction of crude rice bran oil and de-oiled rice bran from rice
bran and occasionally undertakes processing of sunflower seeds as
well. The firm operates from its production unit located in
Karnal, Haryana with an installed capacity to process 200 metric
tonnes (MT) of rice bran and 250 MT of sunflower seeds per day.
The firm is promoted by Khurana family who has an experience of
around two decades in extraction of rice bran oil by virtue of
their group companies namely Mahabir Vegetable Oils Pvt Ltd
(Karnal, Haryana) and B.D. International (Karnal, Haryana) which
are engaged in the same line of business.

In 2013-14, as per the unaudited provisional financials the
company reported a net profit of INR0.10 crore on an operating
income of INR42.85 crore as against a net profit of INR0.09 crore
on an operating income of INR38.30 crore in 2012-13.


MAURYA PRINTERS: CRISIL Suspends B Rating on INR50MM Term Loan
--------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Maurya
Printers Pvt Ltd.

                       Amount
   Facilities         (INR Mln)       Ratings
   ----------         ---------       -------
   Cash Credit            25          CRISIL B/Stable Suspended
   Term Loan              50          CRISIL B/Stable Suspended

The suspension of ratings is on account of non-cooperation by MPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, MPPL is yet to
provide adequate information to enable CRISIL to assess MPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

MPPL was set up in 2003 by Mr. Raghav Ram Maurya to take over the
business of the promoter's proprietorship firm, AR Printers. MPPL
manufactures printed packaging cartons and corrugated boxes.


MOUJI SILK: ICRA Assigns 'B+' Rating to INR5.90cr Fund-Based Loan
-----------------------------------------------------------------
ICRA has assigned a long term rating of [ICRA]B+ and a short term
rating of [ICRA]A4 to INR6.00 crore bank facilities of Mouji Silk
Mills Private Limited.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Long-term fund-        5.90       [ICRA]B+; Assigned
   based facility

   Unallocated limited    0.10       [ICRA]B+/[ICRA]A4 ; Assigned

The assigned rating takes into consideration the weak financial
profile of Mouji Silk Mills Private Limited (MSPL) as is evident
from the low profitability levels, stretched capital structure,
moderate coverage ratios and tight liquidity position resulting in
the higher utilizations of bank sanctioned limits. The ratings are
further constrained by the company's moderate scale of operations
with susceptibility to volatility in raw material prices. ICRA
also takes note of competitive pressure due to the presence of a
large number of players in the domestic as well as international
markets leading to weak profit margins.

However, the assigned ratings favourably factor in the promoters'
experience in the textile industry and significant improvement in
the scale of operations over the last few years. ICRA also takes
note of the established relationship with its customer and
supplier base.

Mouji Silk Mills Private Limited (MSMPL) was established in year
1996 by Mr. Arun Shah and this family members as a private limited
company with a key objective of undertaking weaving operations of
textile products particularly grey fabrics used for manufacturing
of Suitings. The company has its registered office located in
Kalbadevi, Mumbai and its weaving facilities located at Tarapur,
Boisar district of Maharashtra.

Recent updates
MSMPL has achieved a net profit of INR0.20 crore on an operating
income of ~INR34.20 crore as on 31st March 2014 as per provisional
numbers.


NARAYAN COTTON: CRISIL Assigns 'B' Rating to INR160MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its 'CRISIL B/Stable' rating to the bank
facilities of Narayan Cotton Industries.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Cash Credit            160        CRISIL B/Stable
   Term Loan               22        CRISIL B/Stable

The rating reflects NCI's nascent stage and modest scale of
operations in the highly competitive cotton industry, its large
working capital requirements, and expected average financial risk
profile marked by high gearing and average debt protection
metrics. These rating weaknesses are partially offset by the
extensive experience of NCI's promoters in the cotton industry,
and the benefits expected from the proximity of the firm's
upcoming unit to the cotton-growing belt in Gujarat.

Outlook: Stable

CRISIL believes that NCI will benefit over the medium term from
its promoters' extensive industry experience. The outlook may be
revised to 'Positive' if the firm stabilises its operations
earlier than expected while improving its capital structure,
leading to strong financial risk profile. Conversely, the outlook
may be revised to 'Negative' in case of low operating margin, or
substantial debt-funded expansion, or weak working capital
management, resulting in weak financial risk profile.

Set up in 2009, NCI is a partnership firm promoted by Mr. Paresh
Patel and others. NCI undertakes cotton ginning and pressing
operations at its production facility in Kadi (Gujarat).


NAVKAR BUILDCON: ICRA Assigns B- Rating to INR12.50cr LT Loan
-------------------------------------------------------------
ICRA has assigned a long-term rating of [ICRA]B- to the INR12.50
crore long-term fund based bank facility of Navkar Buildcon.

                         Amount
   Facilities         (INR crore)      Ratings
   ----------         -----------      -------
   Long-Term Fund         12.50        [ICRA]B- Assigned
   Based Limits (CC)

The rating is constrained by significant market risks, as the firm
has received bookings for only 7% of the saleable area under its
ongoing project, Navkar Plaza, which is predominantly commercial
in nature and hence sales are mainly expected to be back-ended.
The rating also factors in the high execution risk for the
project, as nearly 65% of project costs remained to be incurred as
on June 30, 2014, coupled with the high funding risk for the
project as around 35% of the project cost is proposed to be funded
by way of advances from customers, which remain contingent upon
healthy sales and timely collection of advances. Nevertheless, the
rating draws comfort from the long track record and experience of
the promoter groups in executing real estate projects in the past,
particularly at Ratnagiri in Maharashtra. The project being
located in the central business district (CBD) of Ratnagiri, makes
it attractive for commercial buyers.

Incorporated in 2011, Navkar Buildcon (NB) is a partnership firm
engaged in the development of a residential-cum-commercial real
estate project -- Navkar Plaza -- in Ratnagiri, Maharashtra. The
firm is a joint venture between the Ratnagiri-based Padmavatee
Group and the Panvel-based Neel Group. The firm is currently
developing a commercial-cum-residential real estate project at
Ratnagiri, Maharashtra, with a saleable area of 1.47 lakh sq. ft.,
comprising six wings that would offer 52 shops, 170 office
premises, 21 residential apartments, a hotel building, and a
restaurant. The construction of the commercial portion of the
project started in May 2013, while the remaining portion is
expected to commence from September 2014. The entire project is
expected to be completed by September 2016.


NETWING TECHNOLOGIES: CRISIL Suspends B+ INR192M Cash Loan Rating
-----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Netwing
Technologies Pvt. Ltd.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Cash Credit           192         CRISIL B+/Stable Suspended
   Term Loan               8         CRISIL B+/Stable Suspended

The suspension of ratings is on account of non-cooperation by NTPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, NTPL is yet to
provide adequate information to enable CRISIL to assess NTPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

Incorporated in the 2005 by the Mumbai based Rai family, Netwing
Technologies Private Limited (NTPL) is engaged in providing
services such as radio frequency optimisation services, managed
services, electromagnetic field (EMF) testing and benchmarking of
networks to the telecommunication industry. Recently in 2011, NTPL
also started working on e-governance contracts being awarded by
Government of India (GoI). These contracts typically involve
conducting surveys and interviews on a mass scale. Mr. Lalit Rai
oversees the day-to-day operations of the company. The company has
its registered office at Thane.


PEPSU ROAD: ICRA Reaffirms B+ Rating on INR40cr Overdraft Limits
----------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B+ rating assigned to the INR40.00
crore fund-based bank facilities of Pepsu Road Transport
Corporation.

                       Amount
   Facilities        (INR crore)      Ratings
   ----------        -----------      -------
   Fund-Based Limits     40.00        [ICRA]B+; reaffirmed
   (Overdraft)

Rationale
The rating takes into consideration PRTC's strategic importance to
the Government of Punjab (GoP) as a provider of passenger
transport services in the southern region of the State of Punjab
and fare revisions at regular intervals in the past, however the
same requires the approval of the State Government, which could
lead to delays. The extent of fare hike in recent years has not
kept pace with the rise in operating costs as reflected by the
losses reported by PRTC. The rating is, however, constrained by
PRTC's weak financial profile as reflected by losses and depressed
coverage indicators, PRTC's negative networth, which deteriorated
sharply during 2013-14 on account of a significant increase in the
losses suffered during the year, deterioration in the operational
performance during 2013-14 and the current year, leading to
losses, and large payables by PRTC to the retired employees which,
if funded by fresh debt, would impacts its capital structure and
liquidity position adversely. The assigned rating also factors in
PRTC's large receivables for the concessional travel provided by
it, impacting its liquidity position adversely. ICRA notes that
PRTC is in the process of selling a plot of its land, income from
which would be utilised partly to purchase new buses and partly
for repayment of its liabilities. However, considering the
slowdown in the real estate market at present, the proposed sale
of land at the estimated value may remain a challenge.

Pepsu Road Transport Corporation, Patiala was set-up in October,
1956 under the provision of the Road Transport Corporations (RTC)
Act, 1950 with a view to provide efficient, adequate, economic and
properly co-ordinated operation system of Road Transport Services
in the southern region (erstwhile PEPSU - Patiala and East Punjab
States Union) of Punjab. The Corporation operates around 1,000
buses daily through 10 depots and around 3,750 personnel.

Recent Results
As per the provisional financial statements, PRTC reported an
operating income of INR356.47 crore and a net loss of INR35.75
crore in 2013-14 as compared to an operating income of INR328.66
crore and a net loss of INR4.94 crore in 2012-13.


PRATIK HOSIERY: CRISIL Reaffirms D Rating on INR50M Packing Loan
----------------------------------------------------------------
CRISIL's ratings on the bank loan facilities of Pratik Hosiery
Pvt. Ltd. (PHPL; part of the Pratik group) continue to reflect
instances of delay by the Pratik group in servicing its term debt;
the delays have been caused by the group's weak liquidity.

                           Amount
   Facilities            (INR Mln)      Ratings
   ----------            ---------      -------
   Cash Credit               20          CRISIL D (Reaffirmed)
   Export Packing Credit     50          CRISIL D (Reaffirmed)
   Letter of Credit          10          CRISIL D (Reaffirmed)

The Pratik group also has a small scale of operations and large
working capital requirements. However, the group benefits from its
promoters' extensive experience in the ready-made garments
industry.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of PHPL and Dravid Knits Pvt Ltd (DKPL).
This is because both these entities, together referred to as the
Pratik group, are managed by the same promoters and have
significant financial linkages with each other.

Update
The Pratik group's revenues remained stagnant at around INR260
million in 2013-14 (refers to financial year, April 1 to March 31)
as compared to INR258 million in 2012-13. In 2013-14, the group's
operating margin was moderate at 12.2 per cent, in line with its
operating margin of 11.8 per cent in 2012-13. The group generated
cash accruals of around INR15 million in 2013-14. Its scale of
operations is expected to remain small over the medium term, given
the fragmented nature of the ready-made garments industry.

The Pratik group's financial risk profile remains average, marked
by a net worth of about INR90 million and gearing of INR1.33 times
as on March 31, 2014. The group's debt protection metrics continue
to be moderate with net cash accruals to total debt and interest
coverage ratios of 13 per cent and 1.95 times respectively in
2013-14.

The Pratik group's liquidity remains weak as reflected from
continued delays in servicing its term debt. Its cash accruals are
expected to be in the range of INR10 million to INR15 million per
annum over the medium term and hence will be tightly matched
against its term debt obligation of INR10 million for the
corresponding period. Further its bank limits were fully utilised
during the 12 months through June 2014 due to working capital
intensive operation, as reflected from gross current asset (GCA)
of more than 300 days as on March 31, 2014. CRISIL believes that
the Pratik group's liquidity will remain weak over the medium
term.

PHPL, incorporated in 1995, manufactures ready-made garments.
DKPL, incorporated in 2001, leases out its warehouse to PHPL. The
day-to-day operations of the group are managed by Mr. A R R
Venkatachalam.


PRESIDENCY IMPEX: ICRA Reaffirms 'B' Rating on INR3cr Cash Credit
-----------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B assigned to
the INR2.40 crore term loan and INR3.00 crore cash credit
facilities of Presidency Impex Private Limited.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Term Loan              2.40       [ICRA]B reaffirmed
   Cash Credit            3.00       [ICRA]B reaffirmed

The rating reaffirmation takes into account the continued low
capacity utilization levels of the plant at present, on the back
of lower availability of sesame seeds during the year. The rating
is also constrained by the worsening of the financial risk profile
of the company as indicated by a steep decline in operating
profitability, deterioration in the gearing and coverage
indicators. ICRA also notes that in the absence of long term
contracts with suppliers, the company remains exposed to
fluctuations in raw material prices which may adversely impact the
company's profitability. The rating however, derives comfort from
the experience of the promoters in the agro based commodity
trading business and the proximity to sources of raw material
supplies, with West Bengal being the second largest sesame
producing state in India. Going forward, the ability of the
company to scale up its operations, while improving its
profitability and managing its capital structure will remain key
rating sensitivities.

PIPL was incorporated in 2008, with the objective of manufacturing
and marketing sesame oil, sesame seeds and sesame oil cake. The
company is promoted by the Modi and Agarwal families of Kolkata.
The promoters have been engaged in trading of mustard oil, palm
oil and sunflower oil since the last 10 years. The company has set
up a manufacturing facility in Uluberia, West Bengal with an
installed capacity of 24 metric tonnes (MT) of sesame oil per day.
The facility commenced commercial operations in July 2012.

Recent Results
PIPL reported a loss after tax of INR0.57 crore in 2013-14 on the
back of an operating income (OI) of INR12.71 crore as against a
profit after tax of INR0.11 crore on an OI of INR9.84 crore in
2012-13.


RONIX POLYMERS: CRISIL Suspends B Rating on INR67.5MM Bank Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Ronix
Polymers Private Limited.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Proposed Cash         32.5        CRISIL B/Stable Suspended
   Credit Limit

   Proposed Long Term
   Bank Loan Facility    67.5        CRISIL B/Stable Suspended

The suspension of ratings is on account of non-cooperation by RPPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, RPPL is yet to
provide adequate information to enable CRISIL to assess RPPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

RPPL, incorporated in 1990, is based in Kolkata (West Bengal). The
company is primarily engaged in the manufacturing of PVC and HDPE
pipes. Its day-to-day operations are being managed by Mr. Rajendra
Kumar Saraogi along with his son, Mr. Kunal Saraogi.


SEPAL CERAMIC: ICRA Reaffirms B+ Rating on INR4.40cr Cash Credit
----------------------------------------------------------------
ICRA has reaffirmed the long term rating of [ICRA]B+ to the
INR4.40 crore fund based cash credit facility and the INR3.03
crore term loan facility of Sepal Ceramic. ICRA has also
reaffirmed the [ICRA]A4 rating to INR0.70 crore bank guarantee
limits of SC.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Cash Credit Limit     4.40        [ICRA]B+; Reaffirmed
   Term Loans            3.03        [ICRA]B+; Reaffirmed
   Bank Guarantee        0.70        [ICRA]A4; Reaffirmed

The ratings continue to remain constrained by SC's small scale of
operations and weak financial profile characterized by low
profitability, stretched capital structure and weak coverage
indicators. The ratings also factors in the firm's dependence on
the performance of real estate industry which is the main
consuming sector, intense competition with the presence of large
established organized tile manufacturers and unorganized players,
vulnerability to increasing gas and power prices as well as
stretched liquidity on account of increase slowdown in debtor's
realizations. ICRA also takes a note that SC being a partnership
firm, any substantial withdrawal from the capital account would
adversely impact the net worth and thereby the capital structure.
The ratings, however, favorably consider the experience of the key
promoters in the ceramic industry, location advantage enjoyed by
SC giving it easy access to raw material, its presence in digital
printed segment, which is expected to result better realization as
well as the geographically diversified customer base.

Sepal Ceramic is a digitally printed ceramic wall tiles
manufacturer with its plant situated at Morbi, Gujarat. The firm
was established in the year 2007 with the commencement of
commercial production in April 2008. The firm is managed by Mr.
Paresh Vilpara and other family members. The plant has an
installed capacity to produce 16, 50,000 boxes of wall tiles per
annum.

Recent Results
For the year ended 31st March, 2014, the firm reported an
operating income of INR12.56 crore with profit after tax of
INR0.10 crore.


SHANKER COILS: CRISIL Cuts Rating on INR27MM Term Loan to 'D'
-------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Shanker Coils Pvt Ltd to 'CRISIL D/CRISIL D' from 'CRISIL BB-
/Stable/CRISIL A4+'. The rating downgrade reflects the delay by
SCPL in repayment of its term loans; the delay has been caused by
the company's weak liquidity.

                       Amount
   Facilities         (INR Mln)      Ratings
   ----------         ---------      -------
   Bank Guarantee         20         CRISIL D (Downgraded from
                                     'CRISIL A4+')

   Cash Credit            25         CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

   Letter of Credit       20         CRISIL D (Downgraded from
                                     'CRISIL A4+')

   Term Loan              27         CRISIL D (Downgraded from
                                     'CRISIL BB-/Stable')

SCPL is also vulnerable to cyclical downturns due to its small
scale of operations. However, the company benefits from the
extensive experience of its promoters in the electrical coils
industry.

Established in 1999 by the Kolkata-based Mr. Nirmal Bagaria, SCPL
manufactures armature and stator coils of different
specifications, based on customers' requirements. The company also
undertakes contracts for repairing and overhauling of traction
motors. Its day-to-day operations are looked after by Mr. Bagaria,
who is its promoter-director.


SHREE SITA: ICRA Reaffirms B Rating on INR7cr Fund Based Limits
---------------------------------------------------------------
ICRA has reaffirmed the [ICRA]B rating assigned to the INR3.00
crore term loan (reduced from INR4.00 crore) and INR7.00 crore
fund based limits (enhanced from INR6.00 crore) of Shree Sita Rice
Mill.

                       Amount
   Facilities        (INR crore)     Ratings
   ----------        -----------     -------
   Fund based limits     7.00        [ICRA]B reaffirmed
   Term Loan             3.00        [ICRA]B reaffirmed

The reaffirmation of the rating takes into consideration SSRM's
small scale of current operations in a highly competitive industry
characterised by presence of number of small players, which
adversely impacts the profitability and the adverse capital
structure of the firm as reflected by a high gearing of around
9.68 times as on 31st March, 2014 and depressed coverage
indicators. However, ICRA notes, that a major portion of debt was
primarily on account of interest bearing unsecured loans from
partners and related parties. The operation of the firm remains
highly working capital intensive with purchase of paddy, the major
raw material being made mostly on cash basis coupled with
maintenance of large inventory levels and debtors, thus adversely
impacting liquidity. The rating also factors in the agro climatic
risks, which can impact the availability of the paddy in adverse
weather conditions and the risk associated with the status of the
entity as partnership firm, including the risk of capital
withdrawal. The rating, however, also takes into account the
experience of the promoters in the rice milling business, its
presence in the major paddy growing area viz. Chhattisgarh
resulting in easy availability of paddy and wide spread
distribution of rice on a pan India basis through a network of
dealers, retailers etc.

SSRM is a part of the Shree Sita Group in Chhattisgarh. The firm
has paddy milling unit at Durg District, Chhattisgarh having paddy
milling capacity of 36000 MTPA. The firm produces only parboiled
variety of rice.

Recent Results
As per provisional numbers, SSRM recorded an operating income of
INR44.02 crore and profit before tax of INR0.19 crore in 2013-14
as against an operating income of INR25.50 crore and profit before
tax of INR0.13 crore in 2012-13.


SRI SAI: CRISIL Suspends 'D' Rating on INR200MM Term Loan
---------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Sri Sai
College of Engineering and Technology.

                         Amount
   Facilities          (INR Mln)      Ratings
   ----------          ---------      -------
   Overdraft Facility      90         CRISIL D Suspended

   Proposed Long Term
   Bank Loan Facility     140         CRISIL D Suspended

   Term Loan              200         CRISIL D Suspended

The suspension of ratings is on account of non-cooperation by
SSCET with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, SSCET is yet to
provide adequate information to enable CRISIL to assess SSCET's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

SSCET was founded in 1996 by Mr. Babu Ram Iqbal Bhardwaj and his
relatives with an objective to provide education services. The
group has 19 institutions in its two campuses in Pathankot and
Amritsar. It also runs a university in Devbhoomi, Himachal
Pradesh.


VICTORIA MOTORS: CRISIL Suspends D Rating on INR65MM Cash Credit
----------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of
Victoria Motors Pvt Ltd.

                       Amount
   Facilities         (INR Mln)     Ratings
   ----------         ---------     -------
   Cash Credit            65        CRISIL D Suspended

The suspension of ratings is on account of non-cooperation by VMPL
with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, VMPL is yet to
provide adequate information to enable CRISIL to assess VMPL's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'.

Incorporated in 2006-07 (refers to financial year, April 1 to
March 31), VMPL is currently promoted by Mr. Ashok Jajodia who
took over the company in April 2011. VMPL operated as a dealer of
Ford vehicles in Kolkata; the dealership was cancelled by Ford
Motors in November 2011, and currently the company operates a
workshop for servicing Maruti Suzuki India Ltd (rated 'CRISIL
AAA/Stable/CRISIL A1+') vehicles.


VJTF INFRASTRUCTURE: CRISIL Suspends B- Rating on INR250MM Loan
---------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of VJTF
Infrastructure Pvt Ltd (VJTF Infrastructure; part of the VJTF
group).

                       Amount
   Facilities         (INR Mln)       Ratings
   ----------         ---------       -------
   Term Loan             250          CRISIL B-/Stable Suspended

The suspension of ratings is on account of non-cooperation by VJTF
Infrastructure with CRISIL's efforts to undertake a review of the
ratings outstanding. Despite repeated requests by CRISIL, VJTF
Infrastructure is yet to provide adequate information to enable
CRISIL to assess VJTF Infrastructure's ability to service its
debt. The suspension reflects CRISIL's inability to maintain a
valid rating in the absence of adequate information. CRISIL
considers information availability risk as a key credit factor in
its rating process and non-sharing of information as a first
signal of possible credit distress, as outlined in its criteria
'Information Availability Risk in Credit Ratings'.

CRISIL has combined the business and financial risk profiles of
VJTF Infrastructure and its parent company, VJTF Pvt Ltd (VJTFPL).
This is because both these entities, together referred to as the
VJTF group, have a common management. Moreover, VJTF
Infrastructure is constructing a new school building which will be
used by VJTFL on payment of franchisee fees, resulting in material
business synergies and fungible cash flows.

VJTF Infrastructure was incorporated in September 2010 by Dr.
Vinay Jain and Dr. Raina Jain who are also the promoters of
VJTFPL. VJTFPL is a currently running a school named Witty
International School (WIS) in Malad (West), Mumbai. VJTF
Infrastructure is undertaking a project to construct a new school
building for VJTFPL.


ZUBERI FIBRES: CRISIL Suspends D Rating on INR375MM Term Loan
-------------------------------------------------------------
CRISIL has suspended its ratings on the bank facilities of Zuberi
Fibres Pvt Ltd.

                         Amount
   Facilities           (INR Mln)       Ratings
   ----------           ---------       -------
   Cash Credit            212.5         CRISIL D Suspended
   Letter of Credit       150.0         CRISIL D Suspended
   Proposed Long Term
   Bank Loan Facility      22.5         CRISIL D Suspended
   Rupee Term Loan        375.0         CRISIL D Suspended

The suspension of ratings is on account of non-cooperation by
Zuberi with CRISIL's efforts to undertake a review of the ratings
outstanding. Despite repeated requests by CRISIL, Zuberi is yet to
provide adequate information to enable CRISIL to assess Zuberi's
ability to service its debt. The suspension reflects CRISIL's
inability to maintain a valid rating in the absence of adequate
information. CRISIL considers information availability risk as a
key credit factor in its rating process and non-sharing of
information as a first signal of possible credit distress, as
outlined in its criteria 'Information Availability Risk in Credit
Ratings'

Incorporated in May 2003 and promoted by Mr. Rafat Ullah Khan
Zuberi, Zuberi manufactures and trades in industrial paper and
boards.


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

* OJK Declares 5 Indonesian Insurance Firms Insolvent
-----------------------------------------------------
Indonesia Investments reports that the Financial Services
Authority (Otoritas Jasa Keuangan, OJK) of Indonesia has declared
five Indonesian insurance companies insolvent as they do not meet
capital requirements.

The report relates that OJK official Dumoly Freddy Pardede said
that Bakrie Life, Asuransi Jiwa Tugu Mandiri and MAA General
Assurance are three of the five insolvent companies. He refrained
from mentioning the names of the other two insurance companies.
The OJK will continue to monitor the five companies and force them
to meet all capital requirements, the report says.

If a company fails to meet the OJK's capital requirements then
there will be a total of three warnings. After the third and final
warning the company's business operations can be limited. If there
is still no improvement hereafter then the company's permits can
be revoked, according to Indonesia Investments.

Asuransi Jiwa Tugu Mandiri received its third warning from the OJK
on September 3, the report notes. Two of the five have already
been warned three times and now may face sanctions that limit
their business operations, Indonesia Investments relates. Two
others are in serious risk of receiving the third warning as they
show problems in their internal management. The OJK has given
these two companies three months to improve their internal
management.

The report says the case of Asuransi Jiwa Bakrie (Bakrie Life) is
well known. The company offered an insurance-based product named
Diamond Investa to clients in 2005. According to the prospectus of
this product, 90 percent of investors' funds would be invested in
bonds. Clients were guaranteed returns of up to 13 percent
annually. However, after the global financial crisis from 2008
onward, the company stopped interest payments and was unable to
return the initial investment to its +600 clients, Indonesia
Investments discloses. Later it became known that most of the
money was in fact invested in equities, including stocks of
companies within the Bakrie Group, the report adds.



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


PIONEER CORP: To Cut 2,000 Jobs in Bid To Restructure
-----------------------------------------------------
The Japan Times reports that Pioneer Corp. said on September 16 it
will cut more than 2,000 jobs -- 10 percent of its group workforce
-- through voluntary retirement by employees and sales of noncore
businesses to promote its rehabilitation.

The Japan Times relates that Pioneer also said it will sell its DJ
equipment business for use in dance music to U.S. investment fund
Kohlberg Kravis Roberts & Co. for JPY59 billion, completing the
transfer by March.

As part of its corporate restructuring, Pioneer is focusing its
resources on equipment for automobiles with steady demand, such as
navigation systems, the report relays.

The report relates that Pioneer has said it plans to integrate its
audiovisual business and some other operations with Onkyo Corp.
around March as part of a tie-up.

"We will re-establish a solid foundation for our business, and
we're determined to come out a winner through the competition in
devices for autos," the report quotes President Susumu Kotani as
saying.

Pioneer Corporation (TYO:6773) -- http://www.pioneer.jp/-- is a
Japan-based company engaged in the manufacturing and sale of
electronic products.  The Company operates in three business
segments.  The Car Electronics segment offers navigation systems,
stereos, audio systems, speakers and peripheral products for
automobile uses. The Home Electronics segment offers plasma
televisions, digital versatile disc players/recorders/drives, blu-
ray disc players/drives, audio systems, telephones, cable
television-related machines and peripheral equipment.  The Others
segment offers electroluminescence (EL) displays, factory
automation (FA) equipment, electronic components and commercial
audio and visual (AV) systems.


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


MALAYSIA AIRLINES: Embarks on 5th Recovery Plan in a Decade
-----------------------------------------------------------
Kate Mayberry at Al Jazeera reports that Malaysians have long held
a soft spot for their national carrier, but as Malaysia Airlines
embarks on its fifth recovery plan in a decade, it will need more
than goodwill to survive. Not only will it have to properly
execute the revamp, it also will have to rebuild a reputation for
safety that's been virtually destroyed with the disappearance of
MH370 in March and the downing of MH17 in July.

According to Al Jazeera, Dutch investigators released their
preliminary report into what happened to MH17 on September 9, six
weeks after the Boeing-777 was shot down over eastern Ukraine,
killing all 298 people on board. Al Jazeera relates that the
report said a large number of high-speed objects hit the cockpit
area of MH17, leaving multiple holes and leading to the plane's
destruction.

But six months since MH370 disappeared on a night flight from
Kuala Lumpur to Beijing, families are still waiting anxiously for
answers. Search teams are scouring the seabed -- some of it up to
6,000 metres in depth -- in the remote southern reaches of the
Indian Ocean in a hunt that is expected to take a year, Al Jazeera
states.

Meanwhile, Al Jazeera says the twin tragedies have made Malaysia
Airlines' already precarious financial position even worse.

"We operate in a harsh business environment," Chief Executive
Ahmad Jauhari Yahya said in a statement as the company announced
losses of $96.5 million in the three months ending June, as
revenue fell, Al Jazeera relays. "Coupled with the impact of the
two tragedies which have damaged our brand, the need to
restructure our company was accelerated. The full financial impact
is expected to hit Malaysia Airlines in the second half of the
year."

Al Jazeera notes that major shareholder Khazanah Nasional, the
state investment fund, plans to remove the company from the stock
exchange by the end of this year in order to move ahead with its
12-point "MAS Recovery Plan".

"The government of Malaysia first took over Malaysia Airlines in
2001 in the wake of the Asian financial crisis," Al Jazeera quotes
Khazanah managing director Azman Mokhtar as saying after he
unveiled the proposals. "There were several restructuring
attempts; some were successful but they could not be sustained.
Where it is different this time is that it is attempting to start
with a clean slate."

Al Jazeera says Khazanah aims to create a completely new company
and the search has begun for a new chief executive to replace
incumbent Ahmad Jauhari, who will remain in the job until June
2015.

The new operation will have fewer staff -- about 6,000 people are
expected to lose their jobs -- and a pared down flight network,
focusing on the Asian region, says Al Jazeera.

It's also expected to benefit from a review of existing supplier
contracts and stands to receive as much as $1 billion from the
state investment fund providing it meets various unspecified
conditions. It's expected to turn a profit as early as the end of
2017, Al Jazeera adds.

"This time, it's a bit different because Khazanah is tackling the
problem that the market has long highlighted, directing their
attention at the cost structure," said Jerry Lee, an aviation
analyst at RHB Research in Kuala Lumpur, Al Jazeera relays.

"Of course, all these are just plans. On paper, it looks great
-- cut capacity, slash the workforce, improve productivity -- but
whether it can be implemented effectively, that's still a question
mark."

Al Jazeera notes that getting the support of the carrier's eight
fractious unions and staff associations will be crucial. According
to Al Jazeera, the biggest and most powerful -- the Malaysia
Airlines System Employees Union -- successfully lobbied against a
previous revamp, which involved a share swap with low cost rival
AirAsia.

Meanwhile, Al Jazeera reports that the National Union of Flight
Attendants Malaysia, which represents about 1,500 cabin crew, has
found itself in a court battle with management over recognition,
even though a government-backed secret ballot found sufficient
support for the union. Its president, Ismail Nasaruddin, was fired
from his job as chief steward towards the end of last year, Al
Jazeera says.

According to Al Jazeera, Mr. Ismail said the tragedies of MH17 and
MH370 had affected morale among those still flying. Many have
turned out to pay their respects as the remains of their
colleagues and friends -- insiders often talk of Malaysia Airlines
as a "family" -- have arrived back in Malaysia. "It's the crews
who've been most affected by all of this," Al Jazeera quotes Mr.
Ismael as saying. "We're still on the front line."

For some, it's been too much, Al Jazeera says.  Malaysia Airlines
has admitted that in the first seven months of the year nearly 200
cabin crew left the company. Two recent recruitment exercises have
been cancelled at the last minute, Al Jazeera notes.

Al Jazeera says the company is attempting to boost flagging morale
with regular briefings and discussions with staff. Al Jazeera
relates that Khazanah insisted it is "committed to ensuring that
the process of transfer, migration and separation is conducted
with the utmost care, fairness and due process". Those leaving the
company will get financial compensation, and two outsourcing
companies have agreed to provide training and employment for as
many as 3,500 former Malaysia Airlines staff, according to Al
Jazeera.

It's also attempting to win back passenger confidence with
aggressive marketing campaigns, service enhancements and cheap
fares, Al Jazeera relates. A social media campaign with the
hashtag #flyinghigh and a video featuring US-based Malaysian
singer and MAS social media ambassador Yuna has had nearly 400,000
hits on YouTube. A voluntary safety audit with the International
Air Travel Association is also planned, adds Al Jazeera.

                         *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
September 1 2014, The Associated Press said Malaysia Airlines will
cut 6,000 workers as part of a $1.9 billion overhaul announced on
August 29 to revive its damaged brand after being hit by double
passenger jet disasters.

Investigators continue to scour the southern Indian Ocean for
Malaysia Airlines Flight 370, which veered far off course while en
route from Kuala Lumpur to Beijing on March 8 with 239 people on
board, said the report.  In July, 298 people were killed
when Flight 17 was blasted out of the sky as it flew over an area
of eastern Ukraine controlled by pro-Russian separatists.

These tragedies have scarred the airline's brand, once associated
with high-quality service, AP added.

Headquartered in Selangor, Malaysia, state-owned Malaysia Airlines
-- http://www.malaysiaairlines.com/-- engages in the business of
air transportation and the provision of related services.

Last year, Malaysia Airlines reported a net loss of MYR1.17
billion ($359 million), its third consecutive year of
net losses, according to The Wall Street Journal. In the three
months that ended June 30, its net loss widened to MYR307 million
from MYR176 million in the year-earlier period, the Journal
disclosed.


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


FELTEX CARPET: Shareholders Lose NZ$185 Million Claim
------------------------------------------------------
Marta Steeman at Stuff.co.nz reports that an appeal is likely
against the decision of the High Court in dismissing a
NZ$185 million claim by former shareholders of failed carpet maker
Feltex.

According to the report, Justice Robert Dobson in the High Court
on September 19 released his judgment dismissing a claim that
investors who bought shares in a mid-2004 initial public offering
(IPO) in Feltex were misled by the prospectus in what it said and
omitted to say about Feltex.

Shareholders paid NZ$1.70 a share for Feltex, which went bust in
late 2006, the report recalls.

The claim was lead by shareholder Eric Houghton on behalf of about
3,600 others, says Stuff.co.nz.

According to the report, senior counsel for the investor
representative action, Austin Forbes, QC, said "Naturally, we are
disappointed especially for the investors involved."

The report relates that the court action has been funded by a
litigation funder based in London.

"It is likely an appeal will be filed," the report quotes
Mr. Forbes as saying.  He had not spoken to the London funder yet,
Stuff.co.nz says.  "We have already had a preliminary look (at the
judgment) such that I'm justified in saying it is likely an appeal
will be filed," he said.

Stuff.co.nz says the action was taken against the directors,
owners and promoters of shares in Feltex. The directors were Tim
Saunders, Sam Magill, John Feeney, Craig Horrocks, Peter Hunter,
Peter Thomas and Joan Withers.

The report notes that the owners of Feltex were Credit Suisse
First Boston Asian Merchant Partners LP. The joint lead managers
of the IPO were First New Zealand Capital and Forsyth Barr who the
plaintiffs alleged were promoters of the shares, the report
discloses.

Meanwhile, Stuff.co.nz reports that five of the former directors
of failed carpet maker Feltex claim the representative court
action against them was profit-driven and speculative.

According to Stuff.co.nz, directors Tim Saunders, Peter Thomas,
Michael Feeney, David Hunter and Sam Magill released a statement
saying they welcomed the court judgment that found the company's
prospectus was not misleading and rejected the plaintiffs' claim
in its entirety.

They regretted shareholders lost money when the company was forced
into receivership in 2006 "due to circumstances not foreseeable at
the time the prospectus was prepared," the report relays.

"We are disappointed that having already lost their investment,
the false hope of recovering it was held out to the shareholders
by a speculative and profit-driven court action."

The report states that the action was brought despite the
Securities Commission reviewing the prospectus and concluding it
was not misleading.

The case was 'protracted, costly and unnecessary', the former
directors, as cited by Stuff.co.nz, said.

Headquartered in Auckland, New Zealand, and established more than
50 years ago, Feltex Carpets Limited -- http://www.feltex.com/--
is a manufacturer of superior-quality carpet.  The Feltex
operation included a wool scouring plant, six spinning mills,
three tufted carpet mills, a woven carpet mill and offices in New
Zealand, Australia and the United States.

ANZ Bank placed the company in receivership on Sept. 22, 2006,
and named Colin Nicol, Peter Anderson and Kerryn Downey, of
McGrathNicol+Partners, as receivers and managers.

The TCR-AP reported on Oct. 4, 2006, that Godfrey Hirst acquired
Feltex as a going concern, including its assets and undertakings
in New Zealand, Australia, and the United States.  Proceeds of
the sale will be used to ease the company's NZ$128-million debt
to ANZ Bank.

On Dec. 13, 2006, the High Court in Auckland ruled in favor of an
Application by the Shareholders Association against Feltex
Carpets putting the carpet maker into liquidation.  John Vague
was appointed as liquidator.



                             *********

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, and Peter A. Chapman,
Editors.

Copyright 2014.  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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