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        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, February 2, 2011, Vol. 14, No. 23

                            Headlines



A U S T R A L I A

FORD MOTOR: Fitch Ups Aussie Units' Issuer Default Rating to 'BB'
RIVERCITY MOTORWAY: Lenders to Decide on Firm's Future on Feb. 15
WESTPOINT GROUP: Investors to Recoup AU$67.45MM in Settlement


C H I N A

CHINA LUMENA: Moody's Confirms 'B2' Corporate Family Rating
CHINA SCE: Moody's Assigns 'B2' Rating to Senior Unsec. Bonds


H O N G  K O N G

ASIAN WAY: Creditors' Proofs of Debt Due February 24
BUILD SKY: Members' and Creditors' Meetings Set for February 28
BRIGHT TOWN: Members' and Creditors' Meetings Set for February 28
CAPITAL ASIA: Members' Final Meeting Set for February 28
COLOUR PAINT: Members' and Creditors' Meetings Set for February 28

DICKSON (CHINA): Members' and Creditors' Meetings Set for Feb. 28
GOLDLUXE ENTERPRISES: Creditors' Proofs of Debt Due March 11
HOLYFIELD PROPERTIES: Placed Under Voluntary Wind-Up Proceedings
HORIZON21 (HK): Members' Final Meeting Set for March 1
HOYIP LIMITED: Creditors' Proofs of Debt Due March 1

NETWORK CN: Posts $416,500 Net Loss in September 30 Quarter


I N D I A

A SHAMA: CRISIL Rates INR247.50 Million Rupee Term Loan at 'BB+'
AIR INDIA: CAG Says New Aircraft Purchases May Hurt Financials
ALLAHABAD BANK: Fitch Affirms 'C/D' Individual Rating
ANDHRA BANK: Fitch Affirms Individual Rating at 'C/D'
DIVINE ALLOYS: ICRA Assigns 'LBB+' Rating to INR190.92cr Loan

HEALTHCARE ENERGY: ICRA Puts 'LBB+' Rating on INR49cr Bank Limit
KEDARNATH COTTONS: CRISIL Cuts Rating on INR39.3MM LT Loan to 'D'
NILGIRI FOOD: ICRA Assigns 'LBB+' Rating to INR22cr Bank Limits
PRATHYUSHA ASSOCIATES: CRISIL Rates INR400MM Facility at 'B'
PV SPINNING: CRISIL Reaffirms 'D' Rating on INR86.1MM LT Loan

RAN INDIA: CRISIL Assigns 'B+' Rating to INR169.5MM LT Loan
RANTUS PHARMA: CRISIL Assigns 'C' Rating to INR40MM Cash Credit
RISING HOTEL: CRISIL Assigns 'D' Rating to INR97.6MM Term Loan
SEVEN INDIA: ICRA Revises Rating on INR12cr Term Loan to 'LBB-'
SHRI SAI STEEL: CRISIL Assigns 'B' Rating to INR40MM Cash Credit

SHRI VENKETESHWARA: CRISIL Assigns 'D' Rating to INR137MM Loan
SRI VENKATA: CRISIL Assigns 'D' Rating to INR80MM Cash Credit
SUMANGLAM FOOTWEAR: CRISIL Assigns 'BB+' Rating to INR3MM Loan
V3 ENGINEERS: CRISIL Upgrades Rating on INR17.8MM LT Loan to 'C'
VISHAL MALLEABLES: CRISIL Reaffirms 'B+' Rating on Cash Credit
WAVE DISTILLERIES: ICRA Places 'LBB' Rating on INR114cr Limits


N E W  Z E A L A N D

PIKE RIVER: No Possible Payout for Mine Contractors
* NEW ZEALAND: Trustee Approves Wind-up of Two Funds


T H A I L A N D

PICNIC CORP: Creditors Approve Debt Restructuring Plan


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars




                            - - - - -


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A U S T R A L I A
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FORD MOTOR: Fitch Ups Aussie Units' Issuer Default Rating to 'BB'
-----------------------------------------------------------------
Fitch Ratings upgraded the Issuer Default Ratings for Ford Motor
Company and its Ford Motor Credit Company LLC captive finance
subsidiary to 'BB' from 'BB-'.  The Rating Outlook for both Ford
and Ford Credit is Positive.

Ford's ratings reflect its continued strong financial performance
and the substantial debt reduction accomplished in the fourth
quarter, both of which outperformed Fitch's previous expectations.
Although U.S. industry sales of 11.6 million units in 2010 was
relatively low compared to what was seen prior to the recession,
increased pricing and an improved cost structure have allowed Ford
to produce strong automotive cash flow.  This has been used, in
turn, to substantially reduce the company's debt load, which
declined by $7.3 billion in the fourth quarter.  In 2011, Fitch
expects Ford's competitive product portfolio and increased global
automotive demand to drive free cash flow higher, supporting
liquidity growth and providing additional opportunities to further
de-lever the company's balance sheet.

Challenges remain, however, including continued weakness in the
European auto market, aggressive industry competition, continued
global manufacturing overcapacity, rising oil prices and upcoming
labor negotiations in the U.S.  In addition, the potential remains
for the recovery in the U.S. and European economies to slow or
reverse, which could negatively affect industry auto demand.  In
general, though, Fitch expects Ford to be well positioned to meet
most of these challenges over the medium term.

Previously, Fitch has cited the following factors as rationale for
a potential upgrade of Ford's ratings:

  -- U.S. industry sales seasonally adjusted annual rate (SAAR)
     rebounds to an annualized level of 13 million-13.5 million
     units, which Fitch expects to be achieved later this year;

  -- Ford's products continue to hold or gain market share;

  -- Inventory management at both Ford, and within the U.S.
     industry, allows Ford to hold or improve product prices,
     supporting margin performance;

  -- Positive free cash flow is achieved and continues on an
     upward trajectory;

  -- The pace of balance sheet strengthening through debt
     reduction accelerates;

  -- Ford Credit maintains or improves competitive access to
     capital.

Fitch's industry forecast for 2011 calls for full-year U.S. auto
sales of 12.5 million, up 8.2% from the 11.6 million level seen in
2010.  U.S. SAAR could hit the 13 million level over the course of
the year, however, and rise further in 2012 and beyond.   Ford's
product portfolio performed well in 2010, gaining U.S. market
share for the second year in a row, and the company's product
line-up for 2011, which includes completely new versions of the
Focus compact and Explorer sport utility vehicle, is likely to
help support the share position this year.  These new products,
along with refreshed versions of the Edge crossover and F-150
pickup, also are expected to support continued net pricing and
margin strength in 2011.

Strong net pricing and a lower cost base contributed to a Fitch-
calculated automotive EBITDA margin of over 10% in 2010, and Fitch
expects that figure could grow slightly in 2011.  Increased
margins led to free cash flow that improved significantly in 2010,
with Fitch's calculation of free cash flow rising to an estimated
$3.2 billion for the full year, up from negative free cash flow of
($454) million in 2009.  In 2011, Fitch expects free cash flow to
remain positive, but it could decline somewhat from 2010's level
as capital spending grows to support new product development.
Ford Credit is expected to continue enjoying the relatively good
access to capital that it had in 2010. Last year, the financing
unit saw increased access to the unsecured bond market, and Fitch
does not see its access to this market waning in the intermediate
term. Overall, Fitch expects Ford to continue making progress in
2011 on each of the items noted above.

Over the course of 2010, Ford reduced its automotive debt by
$14.5 billion to a total of $19 billion at year-end 2010 from
$34 billion at Dec. 31, 2009, largely through a combination of
prepayments and equity conversions on the company's convertible
notes.  During the fourth quarter, Ford repaid the remaining
$3.6 billion of its note obligation to the United Auto Workers'
Voluntary Employee Beneficiary Association retiree healthcare
trust.  The company also repaid $1.7 billion of the remaining
$2.5 billion outstanding on its revolving credit facility, and
it reduced the amount outstanding on its term loan by about
$800 million.  In addition, during the quarter it paid
$534 million in cash premiums to induce holders of its convertible
notes due in 2016 and 2036 to convert a portion of their holdings
to equity, resulting in a further debt reduction of $1.9 billion.

Looking ahead, Fitch expects the company to continue seeking
opportunities to reduce its outstanding debt over the
intermediate term, although the rate of debt reduction likely
will slow as opportunities for prepayments and debt-to-equity
conversions will be more limited.  Fitch expects the most likely
opportunities for further debt reduction, beyond upcoming debt
maturities, would involve pre-paying the remaining bank debt
outstanding and, perhaps, seeking conversion of a portion of the
company's $3 billion in convertible subordinated debentures.
Potentially offsetting a portion of the debt reduction would be
any additional borrowings from the U.S. Department of Energy's
Advanced Technology Vehicle Manufacturing Program.  Ford has been
approved for up to $5.9 billion in borrowings from the program,
but as of year-end 2010, it had borrowed only about $3 billion,
suggesting that borrowings could rise by up to $2 billion over the
next several years if the company chooses to utilize the full
amount approved.

The improved market environment, increased competitiveness of
Ford's products, lower cost structure and reduced debt load have
all resulted in a substantial strengthening of the company's
credit profile over the past year. Fitch calculates that Ford
ended 2010 with EBITDA leverage of 1.8 times (x) and fixed charge
coverage of 9.0x.  As noted earlier, free cash flow for the year
was a Fitch-estimated $3.2 billion after capital spending of
$4 billion.  In addition, Ford received $2.7 billion in dividends
and other proceeds from Ford Credit.  Ford ended the year with a
cash balance of over $20 billion, down from about $25 billion at
year-end 2009, but total liquidity, including availability on the
company's primary revolving credit facility, increased to nearly
$28 billion from about $26 billion at year-end 2009.  Notably,
Ford ended 2010 with a cash balance that exceeded its debt
outstanding by $1.4 billion.

Fitch currently expects Ford's credit profile to strengthen
further during 2011 due to a continuation of many of the same
factors that contributed to the improvement in 2010, including
additional debt reduction.  Leverage is likely to decline further
over the course of 2011, while coverage is expected to rise.  The
pace of change is expected to slow from 2010's level, however, as
the rate of improvement in global auto market conditions
stabilize.  Total liquidity is expected to remain at or above the
year-end 2010 level, and Fitch expects the company will produce
positive free cash flow once again, even with an increase in
capital spending to the company-projected range of $5 billion to
$5.5 billion.

Despite the dramatic positive change seen in Ford's credit profile
over the past year, significant risks remain.  These risks include
a still-high debt load, as well as significant pension and OPEB
obligations, although the latter was reduced heavily with the 2009
VEBA agreement.  As of year-end 2010, Ford's global pension plans
were underfunded by $11.5 billion, with $6.7 billion of that in
the U.S.  The company was not required to make any contributions
to its U.S. pension plans in 2010, but it contributed a total of
$1.4 billion to its global plans during the year, including about
$400 million in contributions to unfunded plans outside of the
U.S. Pension contribution requirements could rise materially in
the future if asset returns or market interest rates are
unfavorable, although Fitch expects that Ford's liquidity will be
sufficient to cover any increased contributions in the
intermediate term.

Ford's ratings also incorporate the continued uncertainty
regarding the strength and pace of the global economic recovery.
Although Fitch expects the U.S. economic recovery to continue
through the next several years, high unemployment and ongoing
housing weakness will constrain the rate of growth.  Conditions in
Europe are more uncertain, as increased fiscal tightening could
weaken auto demand.  The highly competitive European auto market
has been characterized by very aggressive pricing following the
end of government-sponsored scrappage programs, and additional
fiscal tightening could further challenge the profitability of
Ford's operations there.

Also pressuring Ford's ratings in the near term is the upcoming
labor negotiations between Ford and the UAW. Ford's contract with
the UAW expires in September of this year.  The union already has
stated publicly its desire to claw back some of the concessions it
agreed to when the industry was on the brink of collapse.
Although Fitch expects all three Detroit automakers will seek to
tie compensation more closely with profitability, the negotiations
are likely to be difficult, and labor costs could rise with the
ratification of a new agreement.  It also is important to note
that Ford's current labor agreement does not include the 'no
strike' provisions contained in the UAW's agreements with GM and
Chrysler, which could become an issue for Ford if negotiations
with the union deteriorate later this year.

Ford's senior secured credit facility and term loan ratings
are rated two notches above the IDR at 'BBB-' to reflect the
substantial collateral coverage backing those facilities.  The
senior unsecured rating is one notch below the IDR at 'BB-' to
reflect the substantial portion of the company's debt structure
that is secured and therefore has priority over the unsecured
debt.  The rating on the subordinated convertible debentures is
two notches below the IDR at 'B+', reflecting the subordinated
convertible debentures' lowest priority position in the company's
debt structure.

Ford's ratings could be upgraded in the intermediate term if the
company continues to make progress on leverage reduction while
maintaining a strong liquidity position.  This most likely would
be accomplished by continued improvement in external market
conditions, combined with an ability to at least maintain both
market share and net pricing strength.  On the other hand, Ford's
ratings could be downgraded if external market conditions weaken
significantly, resulting in weakened free cash flow, a decline in
liquidity and an increase in leverage.  This situation would
require a significant reversal of current market trends, and is
unlikely in the medium term unless triggered by an unexpected
event.  Fitch also could take a negative rating action if a
prolonged strike were to occur following a breakdown in labor
negotiations.

The upgrade of Ford Credit and its related subsidiaries reflects
the strong linkage between the ratings of Ford Credit and Ford.
In addition, the ratings also reflect Ford Credit's improved
funding access to secured and unsecured markets, consistent
operating performance, solid asset quality in the underlying loans
and lease portfolio, and improved capital and liquidity position.
The one notch differential between the long-term IDR and the
senior unsecured debt rating of Ford Credit reflects Fitch's view
that securitized debt currently comprises a higher portion of
total debt compared to historical levels, which results in
relatively lower level of unencumbered assets available to
unsecured bondholders.  Fitch does recognize the company's efforts
to improve the funding mix from secured versus unsecured and notes
that the ratings could be equalized over the longer term as the
funding mix shifts more towards unsecured funding.

Fitch has taken the following rating actions:

Ford Motor Company

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Senior secured credit facility upgraded to 'BBB-' from 'BB+';
  -- Senior secured term loan upgraded to 'BBB-' from 'BB+';
  -- Senior unsecured upgraded to 'BB-' from 'B'.

Ford Motor Co. Capital Trust II

  -- Subordinated convertible debentures upgraded to 'B+' from
     'B-'.

Ford Motor Co. of Australia

  -- Long-term IDR upgraded to 'BB' from 'BB-'.

Ford Motor Credit Company LLC

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Short-term IDR affirmed at 'B';
  -- Senior unsecured affirmed at 'BB-';
  -- Commercial paper (CP) affirmed at 'B'.

Ford Credit Europe Bank Plc

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Short-term IDR affirmed at 'B';
  -- Senior unsecured affirmed at 'BB-';
  -- CP affirmed at 'B';
  -- Short-term deposits affirmed at 'B'.

Ford Capital B.V.

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Senior unsecured affirmed at 'BB-'.

Ford Credit Canada Ltd.

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Short-term IDR affirmed at 'B';
  -- Senior unsecured affirmed at 'BB-';
  -- CP affirmed at 'B'.

Ford Credit Australia Ltd.

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Short-term IDR affirmed at 'B';
  -- CP affirmed at 'B'.

Ford Credit de Mexico, S.A. de C.V.

  -- Long-term IDR upgraded to 'BB' from 'BB-'.

Ford Credit Co. S.A. de C.V.

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Senior unsecured affirmed at 'BB-'.

Ford Motor Credit Co. of New Zealand Ltd.

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Short-term IDR affirmed at 'B';
  -- Senior unsecured affirmed at 'BB-';
  -- CP affirmed at 'B'.

Ford Motor Credit Co. of Puerto Rico, Inc.

  -- Short-term IDR affirmed at 'B'.

Ford Holdings, Inc.

  -- Long-term IDR upgraded to 'BB' from 'BB-';
  -- Senior unsecured upgraded to 'BB-' from 'B'.


RIVERCITY MOTORWAY: Lenders to Decide on Firm's Future on Feb. 15
-----------------------------------------------------------------
The Sydney Morning Herald reports that motorists have two weeks to
learn whether RiverCity Motorway, the builder of Clem7 tunnel,
will be given a two-year reprieve or if the tunnel company heads
to the receivers.

SMH relates that a RiverCity Motorway spokesman confirmed Monday
that its banking syndicate's decision would be made clearer at a
RCM board meeting on February 15, 2011.

"They have a board meeting in mid-February and I think that the
banking syndicate's information is due at that time," SMH quoted
the spokesman as saying.  "I dare say that by the end of that
week, we will know one way or another."  He said he had "just met"
with RCM senior management and the company believed the decision
"could go either way," SMH adds.

SMH recalls that RCM chairman Robert Morris announced at the
November AGM that it was seeking a "standstill arrangement" with
the syndicate of 24 banks.  Mr. Morris said that would mean RCM
effectively "paid what it could" towards interest repayments, SMH
says.

RCM wants the syndicate -- including many overseas banks -- to let
it operate the 6.8 kilometre tunnel until the Airport Link tunnel
opens in 2012, according to SMH.

The spokesman told SMH that there will be no changes to Clem7's
toll before the February 15 board meeting.

The report relates that RACQ's executive director of public policy
Michael Ross said it was up to RiverCity Motorway to convince
their bankers to back the Clem7 tunnel project, but said the RACQ
still opposed toll roads.

"If they can convince their banks, good on them," Mr. Ross was
quoted by SMH as saying.  "It will give them another period of
time, but we don't think they are going to survive long time
because the tolls are just cutting down the numbers of cars going
through the tunnel."

RiverCity in November last year re-confirmed that the group had
cash reserves of AU$106 million as at August 31, 2010, to support
its operations and interest payments until at least September this
year.

"The ability for the group to continue beyond this period will
depend on future traffic levels, toll pricing and/or suitable
arrangements with its banks," RiverCity said in its audited final
financial report for the year ended June 30, 2010.

                      About RiverCity Motorway

RiverCity Motorway Group -- http://www.rivercitymotorway.com.au/
-- is a Queensland, Australia-based toll road company.  The
company has been awarded a 45-year concession by the Brisbane City
Council to finance, design, construct and operate Clem Jones
Tunnel (CLEM7), the city's first private toll road.  CLEM7,
scheduled to open in 2010, will connect major traffic arteries on
the south and north of the Brisbane CBD.


WESTPOINT GROUP: Investors to Recoup AU$67.45MM in Settlement
-------------------------------------------------------------
The Australian Securities and Investments Commission said it has
reached agreements to settle the actions it has conducted on
behalf of the Westpoint Group of companies against certain
directors of the companies and KPMG.

The investors in Westpoint-related financial products had total
capital invested of AU$388 million outstanding as at January 2006
when the group collapsed.  The settlement of these actions will
result in an additional recovery for the benefit of investors
through the liquidation process of up to an additional AU$67.45
million.

The settlement will involve an amount of AU$57 million being made
available in the next 30 days with the balance available to the
liquidators of the relevant companies subject to a number of
conditions which are confidential.

This follows the settlements announced previously as a result of
ASIC's actions against State Trustees Limited and a number of
financial planners which produced settlements in excess of AU$25.5
million.  Another AU$49.2 million obtained through the liquidation
process has also been distributed, a figure that is expected to
reach AU$56 million.  Returns from Westpoint companies not in
liquidation are expected to reach AU$22.5 million.

"In all, investors are expected to see a return of around AU$160
to AU$170 million of the AU$388 million in losses following
today's settlement," ASIC said.

ASIC's Chairman, Tony D'Aloisio, said "This settlement will avoid
the delays associated with conducting the proceedings through to a
trial in September 2011 and provides an additional return for
investors in the plaintiff mezzanine companies who lost money as a
result of the collapse of the group in 2005."

"A confidential commercial resolution is, because of the age and
circumstances of the investors, the preferred resolution in a case
such as this where litigation can take years. This view has been
shared by parties involved who have engaged in constructive and
bona fide discussions to resolve these issues," Mr. D'Aloisio
added.

The settlement will bring to an end the current Federal Court
proceedings which are being conducted by ASIC in the names of nine
of the Westpoint mezzanine companies.  The nine Westpoint
mezzanine companies are:

          * Ann Street Mezzanine Pty Ltd
          * Bayshore Mezzanine Pty Ltd
          * Bayview Heritage Mezzanine Pty Ltd
          * Market Street Mezzanine Ltd
          * Market Street Mezzanine No. 2 Pty Ltd
          * Mount Street Mezzanine Pty Ltd
          * North Sydney Finance Limited
          * York Street Mezzanine Pty Ltd
          * Cinema City Mezzanine Pty Ltd

The settlement arises from further mediation of the proceedings
during 2010.

The settlement funds will be paid to the liquidators of the
plaintiff mezzanine companies and will be apportioned among those
companies.  It is likely that the liquidators of the plaintiff
mezzanine companies will apply to the Federal Court for directions
as to the manner in which the settlement funds are to be
apportioned between the plaintiff companies.  That court
application will be made by the liquidators in the first quarter
of this year.

The sums which are mentioned above are gross sums and some costs,
such as liquidators' costs, will need to be deducted.  Ultimately,
the settlement will provide the liquidators with funds which will
be paid to investors in those companies.

                        About Westpoint Group

Headquartered in Perth, Western Australia, the Westpoint Group
-- http://westpoint.com.au/-- is engaged in property development
and owns or manages retail and commercial properties with a total
value of over AU$300 million.  The Group's troubles began in 2005
when the Australian Securities and Investments Commission
commenced investigations on 160 companies within the Westpoint
Group.  The ASIC's investigation led to ASIC initiating action in
late 2005 in the Federal Court of Australia against a number of
mezzanine companies in the Westpoint Group, including winding up
proceedings.  The ASIC contends that Westpoint projects are
suffering from significant shortfall of assets over liabilities so
that hundreds of investors are at serious risk of not receiving
repayment of their investments.  The ASIC also sought wind-up
orders after the Westpoint companies failed to comply with its
requirement to lodge accounts for certain financial years.  These
wind-up actions are still continuing.

In February 2006, the Federal Court in Perth issued a wind-up
order against Westpoint Corporation Pty Ltd.  The ASIC had applied
to wind up the company on grounds of insolvency.  The ASIC
believes that Westpoint Corporation is responsible for arranging,
managing and coordinating Westpoint Group's property projects as
well as holding money for other group companies.  The ASIC was
concerned that Westpoint Corporation was unable to pay its debts,
including its obligations under the guarantees given to the
mezzanine companies to make good expected shortfalls in the
repayment of amounts owed to investors.

The Westpoint Group's collapse is considered by many as the
largest of its type in recent years, with small investors being
the biggest group affected.  Investors are currently joining
forces to commence a class action against Westpoint and its
advisors.


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C H I N A
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CHINA LUMENA: Moody's Confirms 'B2' Corporate Family Rating
-----------------------------------------------------------
Moody's Investors Service has confirmed the B2 corporate family
rating of China Lumena New Materials Corp and its B2 senior
unsecured bond rating.

The outlook is negative.

This concludes the rating review for possible downgrade, which was
initiated on November 8, 2010.

This confirmation follows China Lumena's completion of its
acquisition of Sino Polymer in January 2011 with the fulfillment
of conditions, including the removal of asset charges.

"The acquisition has only a limited impact on China Lumena's
financial profile due to the fact that 90% of its US$1.5 billion
price was paid through share considerations, while the remaining
10% will be settled in cash from the proceeds of the equity
offering currently in progress," says Jiming Zou, a Moody's
Analyst.

"In addition, China Lumena's assumption of about RMB1.4 billion in
debt from Sino Polymer is not expected to negatively affect the
combined group's capital structure, given a total of RMB8 billion
in shareholders' equity after the acquisition," adds Zou.

"While the expansion into the downstream business -- through the
acquisition -- could improve China Lumena's business diversity,
Sino Polymer's significant size does pose execution risk," says
Zou, adding, "It will take time for the group to develop and
produce purified sodium sulfide in the volumes and quality
required for the production of PPS.  Few synergies are expected at
this stage."

"At the same time, the acquisition could increase the financing
needs of China Lumena as Sino Polymer expects to double its PPS
production capacity in the next two years," says Zou.

The negative outlook reflects China Lumena's aggressive expansion
and the execution risks from the Sino Polymer acquisition.  The
outlook also reflects Moody's view that China Lumena still needs
to demonstrate a more transparent and consistent long-term
corporate strategy and to improve its corporate governance under
the influence of its major shareholder.

The ratings could be downgraded, if a) there is a material decline
in profitability and cash flow generation; b) it carries out
material debt-funded investments and capex; c) there is cash
leakage to major shareholders, or related parties; and d) its
liquidity profile weakens, including a material reduction in its
cash balance.

Credit metrics that Moody's would consider for a rating downgrade
include Debt/EBITDA exceeding 4.0-4.5x and EBITDA interest
coverage falling below 4.0x.

An upgrade in the rating in the near term is unlikely, given the
company's negative outlook.

The rating outlook could be changed to stable, if a) the business
integration of Sino Polymer is smoothly executed and without any
material deterioration of China Lumena's liquidity and credit
metrics -- Debt/EBITDA below 3.0-3.5x & EBITDA/interest expense
above 5.0x (actual 6.0x as of June 2010); b) the company shows
prudence in managing its cash flow for future growth; c) it
improves in transparency and consistency of its long-term
corporate strategy and d) establishes a track record of discipline
in its acquisitions.

Moody's last rating action on the company was the review of its B2
ratings for possible downgrade on 8 November 2010.

China Lumena New Materials Corp has two business segments --
mining, processing and manufacturing of natural thenardit; and
production of Polyphenylene Sulfide.  The company was listed on
the Hong Kong Stock Exchange in June 2009.  Mr. Suo Lang Duo Ji
has a 34.45% stake in the company.


CHINA SCE: Moody's Assigns 'B2' Rating to Senior Unsec. Bonds
-------------------------------------------------------------
Moody's Investors Service has assigned a definitive B2 senior
unsecured bond rating to the RMB2 billion 10.5% notes due 2016
issued by China SCE Property Holdings Limited.

                         Ratings Rationale

Moody's definitive rating on this debt obligation confirms the
provisional rating assigned on January 5, 2011.  Moody's rating
rationale was set out in a press release and explored more fully
in a Credit Opinion published on January 5, 2011.

The proceeds from the proposed bonds will be used to fund new land
acquisitions and general corporate purposes.

Founded in 1996 and listed on the Hong Kong Stock Exchange in
February 2010, China SCE Property Holdings Limited is a leading
property developer in Fujian Province, China.  The Chairman,
Mr. Wong Chiu Yeung, holds a 57.5% of shareholding.


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


ASIAN WAY: Creditors' Proofs of Debt Due February 24
----------------------------------------------------
Creditors of Asian Way International Investments Limited, which is
in members' voluntary liquidation, are required to file their
proofs of debt by February 24, 2011, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on January 24, 2011.

The company's liquidators are:

         Cheng Kwok Wai David
         Chan Yuen Bik Jane
         31/F., Gloucester Tower
         The Landmark, 11 Pedder Street
         Central, Hong Kong


BUILD SKY: Members' and Creditors' Meetings Set for February 28
---------------------------------------------------------------
Members and creditors of Build Sky Development Consultancy Limited
will hold their annual meetings on February 28, 2011, at
10:00 a.m., and 10:30 a.m., respectively at 62/F, One Island East,
18 Westlands Road, Island East, in Hong Kong.

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


BRIGHT TOWN: Members' and Creditors' Meetings Set for February 28
-----------------------------------------------------------------
Members and creditors of Bright Town Investment Limited will hold
their annual meetings on February 28, 2011, at 9:00 a.m., and
9:30 a.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.

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


CAPITAL ASIA: Members' Final Meeting Set for February 28
--------------------------------------------------------
Members of Capital Asia Investments Limited will hold their final
meeting on February 28, 2011, at 11:00 a.m., at Units 3401-2, 34th
Floor, AIA Tower, 183 Electric Road, North Point, in Hong Kong.

At the meeting, Leong Ting Kwok David and Mok Mun Lan Linda, the
company's liquidators, will give a report on the company's wind-up
proceedings and property disposal.


COLOUR PAINT: Members' and Creditors' Meetings Set for February 28
------------------------------------------------------------------
Members and creditors of Colour Paint Limited will hold their
annual meetings on February 28, 2011, at 12:00 noon and
12:30 p.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.

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


DICKSON (CHINA): Members' and Creditors' Meetings Set for Feb. 28
-----------------------------------------------------------------
Members and creditors of Dickson (China) Enterprises Limited will
hold their annual meetings on February 28, 2011, at 2:00 p.m. and
2:30 p.m., respectively at 62/F, One Island East, 18 Westlands
Road, Island East, in Hong Kong.

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


GOLDLUXE ENTERPRISES: Creditors' Proofs of Debt Due March 11
------------------------------------------------------------
Creditors of Goldluxe Enterprises Limited, which is in members'
voluntary liquidation, are required to file their proofs of debt
by March 11, 2011, to be included in the company's dividend
distribution.

The company commenced wind-up proceedings on January 19, 2011.

The company's liquidators are:

         Dr. Terence Ho Yuen Wan
         Mr. Henry Fung
         Rooms 1001-1003, 10/F
         Manulife Provident Funds
         345 Nathan Road
         Kowloon, Hong Kong


HOLYFIELD PROPERTIES: Placed Under Voluntary Wind-Up Proceedings
----------------------------------------------------------------
At an extraordinary general meeting held on January 21, 2011,
creditors of Holyfield Properties Limited resolved to voluntarily
wind up the company's operations.

The company's liquidators are:

         Mr. Poon Chi Woo
         Mr. Poon Chin Chung Philip
         Room 1307-8, Dominion Centre
         43-59 Queen's Road East
         Wanchai, Hong Kong


HORIZON21 (HK): Members' Final Meeting Set for March 1
------------------------------------------------------
Members of Horizon21 (Hong Kong) Limited will hold their final
meeting on March 1, 2011, at 11:00 a.m., at 7th Floor, Alexandra
House, 18 Chater Road, Central, in Hong Kong.

At the meeting, Philip Brendan Gilligan, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


HOYIP LIMITED: Creditors' Proofs of Debt Due March 1
----------------------------------------------------
Creditors of Hoyip Limited, which is in members' voluntary
liquidation, are required to file their proofs of debt by March 1,
2011, to be included in the company's dividend distribution.

The company commenced wind-up proceedings on January 28, 2011.

The company's liquidator is:

         Wong Lai Fong
         21/F., Fee Tat Commercial Centre
         No. 613 Nathan Road
         Kowloon, Hong Kong


NETWORK CN: Posts $416,500 Net Loss in September 30 Quarter
-----------------------------------------------------------
Network CN Inc. filed its quarterly report on Form 10-Q, reporting
a net loss of US$416,489 on US$733,440 of revenues for the three
months ended September 30, 2010, compared with a net loss of
US$1.1 million on US$293,706 of revenues for the same period of
2009.

The Company's balance sheet at September 30, 2010, showed
US$2.5 million in total assets, US$5.9 million in total
liabilities, and a stockholders' deficit of US$3.4 million.

Baker Tilly Hong Kong Limited, in Hong Kong, expressed substantial
doubt about Network CN Inc.'s ability to continue as a going
concern, following the Company's results for 2009.  The
independent auditors noted that the Company has incurred net
losses of US$37,359,188 for the year ended December 31, 2009.
Additionally, during the year ended December 31, 2009, the Company
has used cash flow in operations of US$5,428,273, and as of
December 31, 2009, recorded a stockholders' deficit of
US$1,491,206.

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

               http://researcharchives.com/t/s?72a7

On January 28, 2011, the Company filed Amendment No. 1 to its
quarterly report for the quarterly period ended September 30,
2010, solely to amend the Company's disclosures under Part I -
Item 2 "Management's Discussion and Analysis of Financial
Condition and Results of Operations."

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

               http://researcharchives.com/t/s?72a8

Also on January 28, 2011, the Company filed Amendment No. 1 to its
annual report on Form 10-K for the fiscal year ended December 31,
2009, originally filed with the U.S. Securities and Exchange
Commission on March 31, 2010, solely to amend the Company's
disclosures throughout the Original Report, including under Item
1. "Business," Item 1A. "Risk Factors," Item 5 "Market for the
Registrant's Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities," Item 7 "Management's Discussion
and Analysis of Financial Condition and Results of Operations,"
Item 10 "Directors, Executive Officers and Corporate Governance,"
Item 11 "Executive Compensation," Item 12 "Security Ownership of
Certain Beneficial Owners and Management and Related Stockholder
Matters," Item 13 "Certain Relationships and Related Transactions,
and Director Independence," and Item 15 "Exhibits, Financial
Statement Schedules."

Full-text copies of the Form 10-K/A and the original Form 10-K
report are available for free at:

      http://researcharchives.com/t/s?72a9
      http://researcharchives.com/t/s?72a9

      http://researcharchives.com/t/s?72aa

Network CN Inc. (OTC BB: NWCN) -- http://www.ncnmedia.com/--
together with its subsidiaries, provides out of home advertising
services.  Network CN Inc. was incorporated in the State of
Delaware in 1993 and is headquartered in Causeway Bay, Hong Kong.


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


A SHAMA: CRISIL Rates INR247.50 Million Rupee Term Loan at 'BB+'
----------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the bank facility
of A Shama Rao Foundation, which is part of the Mangalore-based
Srinivas group of educational institutes.

   Facilities                            Ratings
   ----------                            -------
   INR247.50 Million Rupee Term Loan     BB+/Stable (Assigned)

The ratings reflect susceptibility of the Srinivas group's
revenues and earnings to adverse regulatory changes, and its
exposure to implementation and funding-related risks in its
ongoing projects.  These rating weaknesses are partially offset by
the group's diversified revenue profile, supported by the wide
spectrum of educational courses it offers, and its healthy
financial risk profile marked by a robust capital structure.

For arriving at its ratings, CRISIL has combined the business and
financial risk profiles of ASRF and all other eleven trusts under
the Srinivas group.  The group operates 11 educational institutes
in Mangalore (Karnataka), including Srinivas Institute of
Technology, Srinivas College of Physiotherapy, Srinivas Institute
of Nursing Sciences, Srinivas College of Hotel Management,
Srinivas Education Trust, Srinivas Institute of Health Science,
Srinivas Institute of Technology Trust, and Srinivas School of
Engineering.  ASRF acts as an umbrella trust; all major borrowings
for capital expenditure (capex) of all the aforementioned
institutes will be carried out by ASRF and development fees
charged by these institutes are recognised as part of ASRF's
revenues.

Outlook: Stable

CRISIL believes that the Srinivas group will continue to benefit
over the medium term from diversified profile of educational
courses offered by its institutes.  The group's financial risk
profile is expected to remain healthy, marked by a robust capital
structure.  The outlook may be revised to 'Positive' if there is a
significant growth in the group's operating revenues and surplus,
while it maintains its debt protection metrics.  Conversely, the
outlook may be revised to 'Negative' if there is significant
deterioration in the group's capital structure or debt protection
metrics, because of any significant time or cost overrun in its
capex programmes.

The Srinivas group was set up in 1988 by CA. A Raghavendra Rao, an
educationist. The group operates institutions that offer education
from the pre-primary to post-graduation levels; it also offers
professional and vocational courses. ASRF started an integrated
campus in Mangalore in 2009, offering engineering and management
courses under Srinivas School of Engineering, Srinivas School of
Business, and Srinivas School of Management.  The group is
currently setting up Srinivas Institute of Medical Science,
comprising a 1000-bed, multi-specialty hospital and an associated
medical college. The total student strength across all the
education institutes of the Srinivas group is about 5,200.

ASRF reported a surplus (excess of income over expenditure) of
INR91.9 million on revenues of INR128.2 million for 2009-10,
against a surplus of INR90.4 million on revenues of INR104.7
million for 2008-09.


AIR INDIA: CAG Says New Aircraft Purchases May Hurt Financials
--------------------------------------------------------------
The Economic Times reports that the Comptroller and Auditor
General (CAG) is likely to strongly criticize a decision by Air
India to spend INR50,000 crore to buy 111 new aircraft, as they
are unlikely to generate enough revenues to service the national
carrier's colossal debts.  The Economic Times, citing a draft
report from the national auditor, says this would badly impact the
airline's financials from 2011 onwards.

The Economic Times relates that the erstwhile Indian Airlines had
ordered the purchase of 68 Boeing aircraft in 2005 at a price of
33,000 crore.  "The debt service of this deal is estimated to be
3,300 crore per year.   The revenue generated by the induction of
these aircraft will not be sufficient to service the debt," a top
CAG official, told ET.

The Economic Times notes that the draft report, which will be
tabled in Parliament during the Budget session, also slams Air
India for opting for what it describes as an "expensive" loan to
purchase its 43 Airbus aircraft though it could have opted for a
cheaper loan.  CAG audits the finances of public sector
undertaking, including Air India.

"As per the agreement between Air India and Airbus, the latter
will make provision for funding the purchase of 43 aircraft at
LIBOR rate (London Interbank Offered Rate).  However Air India did
not utilize this clause and had to avail loan at higher rate of
11%, which will result in a payment of INR2,700 crore as interest
premium," the CAG official said, according to the Economic Times.

The Economic Times says the civil aviation ministry has defended
the purchase by saying that it had to send bids for obtaining
sovereign guarantees against the loan to the finance ministry and
the approval process would have taken a lot of time.

"So to avoid the delay in financing, we just went to the market
and raised money at the prevalent rate as we needed new aircraft
at that time to replace the ageing fleet," the Economic Times
quoted a ministry official as saying.

With respect to the airline not generating enough revenues to
service debts, the report notes, the official said revenues and
profits are difficult to predict.  However, he pointed out that
CAG officials were present in the oversight committee that cleared
the deals to buy the aircraft.  "Post facto when things have gone
wrong the airline cannot very well be blamed."

According to the Economic Times, aviation industry experts said
the observation by the national auditor that the airline's
financial stability may get affected from 2011 is a cause of
concern especially when Air India made an operational profit of
INR22 crore for the first time in four years in November 2010.

A senior Air India official told ET that the airline's current
problems has been inherited by the present management headed by
CMD Arvind Jadhav.  "These decisions were taken much before the
present management came into the picture by the then government.
AI has had no role to play in this and now the management is
focusing on turning around the airline and making it profitable,"
the official said.

                          About Air India

Air India -- http://www.airindia.com/-- transports passengers
throughout India and to more than 40 destinations throughout the
world.  Affiliate Air India Express operates as a low-fare
carrier, mainly between India and destinations in the Middle East,
and Air India Cargo provides freight transportation.  The
government of India has merged Air India with another state-
controlled carrier, Indian Airlines, which has focused on domestic
routes.  The combined airline, part of a new holding company
called National Aviation Company of India, uses the Air India
brand.  The new Air India and its affiliates have a fleet of more
than 110 aircraft altogether.

                           *     *     *

The Troubled Company Reporter-Asia Pacific, citing the Hindustan
Times, reported on June 19, 2009, that Air India has been bleeding
cash due to excess capacity, lower yield, a drop in passenger
numbers, an increase in fuel prices and the effects of the global
slowdown.  The carrier incurred net losses of INR2,226.16 crore in
2007-08 and INR5,548 crore in 2008-09.  Air India is estimated to
have lost INR54 billion in the fiscal year ended March 31, 2010,
according to The Wall Street Journal.

The TCR-AP, citing livemint.com, reported on July 27, 2010, that
Air India unveiled a turnaround plan that envisages the airline
reaching operational break-even and wiping out the INR14,000 crore
of accumulated losses and INR18,000 crore of debt on its balance
sheet by 2014-15.  The plan includes raising the company's fleet
strength to as many as 275 planes from 148 in five years.  Air
India Chairman and Managing Director Arvind Jadhav said the new
100-page turnaround plan for 2010-14, which ruled out any job cuts
or wage reductions, was approved by the board and would be adopted
after incorporating suggestions by representatives of the
airline's 33,500 employees.


ALLAHABAD BANK: Fitch Affirms 'C/D' Individual Rating
-----------------------------------------------------
Fitch Ratings has affirmed Allahabad Bank's National Long-term
rating and the rating of its INR5.2 billion long-term subordinated
lower tier 2 debt programme at 'AA(ind)'.  The Outlook on the
National Long-term rating remains Positive.  In addition, the
agency has affirmed Allahabad's Individual Rating at 'C/D' and
Support Rating at '3'.

Allahabad's National Long-term rating is driven by its Individual
rating, reflecting its sustained and solid financial performance
and its strong funding profile.  Nevertheless, if the need arose,
Fitch would expect moderate-to-strong propensity of support by
Allahabad's principal shareholder - The Government of India (GOI).
The Positive Outlook on Allahabad's National Long-term rating
reflects Fitch expectation of further and sustainable improvement
in Allahabad's asset quality and franchise over the near to medium
term amidst its expansion beyond traditional markets.

Allahabad's profitability has been marginally better than most
domestic peers on account of its very efficient operating margins
and strong fee income profile.  Allahabad's cost-to-income ratio
as at end-September 2011 (1HFY11) stood at 39.66% (vs. an average
of 44.5% for India's banking sector).  Fee income contributed
15.58% to the bank's total operating income in 1HFY11, which is
significantly better than peers'.  Profitability continued to show
an improving trend in 1HFY11 on the back of higher-than-system
loan growth, along with low deposit costs and a new base rate
regime.  This allowed the bank to improve its net interest margins
(NIM) on average assets in 1HFY11 (1HFY11 NIM at 2.97% vs. 2.4%
for FY10) by ensuring comparatively better re-pricing of loans
compared to deposits.  However, Allahabad's profitability is
likely to moderate in FY11 as the cost of funding rises and loan
growth moderates.

Allahabad's gross non-performing loan ratio rose marginally to
1.77% as at end-1HFY11 (FY10: 1.69%), due mainly to incremental
NPLs from the agriculture sector in which the government sponsored
a debt waiver scheme for farmers that expired in June 2010.  The
NPL ratio in FY10 has been partly suppressed by high write-offs.
Allahabad is moving towards system generated NPLs.  The bank
mainly caters to mid corporates, and deterioration in asset
quality, though likely in FY11, is expected to be in line with the
banking system.  The NPL coverage ratio (including technical
write-offs) stood at 81% as at end-1HFY11, which is sufficiently
above the regulatory minimum of 70%.

Allahabad's capital adequacy ratio (CAR for FY10: 13.62%) is
marginally lower than the banking system's (FY10: 14.5%).  This is
primarily due to its limited ability to raise common equity from
the market in light of government shareholding (55.23%) which is
close to the minimum statutory holding of 51%.  The bank has
around INR20bn of headroom to raise tier 2 capital, and is
expected to receive tier 1 capital in 2011 that would increase the
government's shareholding in the bank to 58%.  Thus, Allahabad's
tier 1 ratio and CAR are likely to remain above 8% and 13%,
respectively, over the near-term.

The bank's funding profile is driven largely by retail deposits.
Low-cost current and savings deposits contributed 35% to total
deposits as at end-1HFY11, which is superior to the systemic
average of around 34%.  In addition, retail deposits contributed
72% of total funding as at end-1HFY11.  There are no significant
asset liability maturity gaps over the short-term, those over
longer-term are somewhat mitigated by over INR60bn of liquid
securities above the statutory minimum requirement.

The Outlook on Allahabad's National Long-term rating is Positive.
An upgrade in Allahabad's National ratings would depend on further
meaningful improvement in - and sustainability of - its
financials, greater expansion in franchise and stabilization in
its asset quality, as the bank widens its presence in sectors like
mortgage loans.  On the other hand, a negative rating action would
be considered if Allahabad's growth strategy heightened the risk
of significant deterioration in asset quality, while a downgrade
would also stem from similar action on India's sovereign Long-term
Issuer Default Rating.

Allahabad is amongst the 15 largest banks in India with a branch
network of over 2,364 branches spread mainly in northern and
eastern part of India.


ANDHRA BANK: Fitch Affirms Individual Rating at 'C/D'
-----------------------------------------------------
Fitch Ratings has affirmed Andhra Bank's National Long-term rating
at 'AA+(ind)' with a Stable Outlook, and National Short-term
rating at 'F1+(ind)'.  The agency has also affirmed AB's
Individual rating at 'C/D' and Support rating at '3'.  Additional
rating actions are included at the end of the release.

AB's LT ratings reflect its established regional franchise, sound
asset quality metrics and solid profitability, which are partly
offset by its relatively weaker funding profile and Tier 1
capitalization having declined below 8% as at H1FY11, although
Fitch expects the latter to be restored to above 8% in 2011.
Dependence on South India, although high (64% of advances; 58% of
deposits), is partly mitigated via continued diversification
efforts (250 branches in last two years, mainly in northern and
western India).  AB's Support rating was upgraded to '3' in July
2010 following the government's recapitalization initiatives,
which in Fitch's opinion, would result in a higher incidence of
capital support for the bank if required, given its strong
regional importance.

The rating on AB's lower tier 2 subordinated bonds is consistent
with the approach taken for other similar performing securities
based on Fitch's criteria.

A sharp rise in AB's NPLs in H1FY11 (+93%) -- a result of expiry
of agriculture debt waiver relief scheme and gradual phasing of
special dispensation on restructured loans -- had a relatively
muted impact on its earnings.  Existing low levels of NPLs (gross
NPL ratio: 0.86% as at FY10) coupled with a strong provisioning
coverage ratio (specific coverage consistently above 80% for the
last five years) were able to absorb the impact to a large extent.
While gross NPL ratio as a whole and specific to restructured
loans increased to 1.26% and 5% at end-H1FY11, respectively, the
figures compared better than most peers'.  AB's specific provision
coverage although declined to 61% at end-H1FY11; but including
technical write-offs it increased to a comfortable 79%.

AB's earnings did take a hit during H1FY11 (return on assets for
H1FY11: 1.36%; H1FY10: 1.5%; FY10: 1.32%) on account of higher NPL
provisioning (+40%) and increase in costs - due to provisioning
for changed gratuity norms and second pension option to employees.
However, the impact was mitigated to a large extent supported by
strong growth in net interest income (NII at end-H1FY11: +59%) and
continued improvement in its net interest margins (NIM for H1FY11:
3.7%; H1FY10: 2.8%; FY10: 3.1%).  A better yielding asset mix has
made asset yields more resilient compared to funding costs,
allowing NIM to improve even during benign interest rate
environment in FY09-FY10.  Fitch believes that AB could manage NIM
above 3% even under rising interest rates - given better pricing
power under base rate, which should partly offset funding cost
pressures.  However, stable asset quality - given growing
proportion of riskier asset classes - would be pivotal to
profitability over the mid- to long-term.

Funding remains a relatively weaker point for AB with its
significant dependence on term deposits (end-FY10: 71% of total
deposits).  Although AB has been opening branches to improve its
low-cost current-savings account deposit base, improvements have
been relatively slow to come (CASA share for H1FY11: 30.4%; FY10:
29.4%).  However, Fitch draws comfort from AB's low deposit
concentration (top 20 deposits: 8.4% of total deposits) and from
larger share of retail term deposits (around 70% of term deposits)
in the overall share.

The bank's reported Tier 1 ratio of 7.3% (H1FY11) will likely
improve by end-FY11 to over 9% post inclusion of full year net
earnings (RBI guidelines allow inclusion of only full year
earnings for Tier 1 capital calculation) and following INR10bn of
capital support expected from the government.  That said, the
agency also draws comfort from the bank's strong internal
accruals, sufficient headroom to raise Tier 1 and Tier 2 capital
and relatively strong capital quality.

An upgrade to the Individual rating is considered unlikely in the
short-term, as it would be largely contingent on AB successfully
managing growth while ensuring stable asset quality, given
increasing share of riskier asset classes and new regions.
However, AB's inability to check asset quality during this growth
phase could eventually manifest into losses and erosion of
capital, which could lead to a downgrade of its National long-term
rating, albeit Fitch views this as unlikely in the near future.

Andhra Bank:

  - INR15 billion lower Tier 2 bonds: affirmed at 'AA+(ind)'; and

  - INR40 billion certificate of deposits programme: affirmed at
    'F1+(ind)'.


DIVINE ALLOYS: ICRA Assigns 'LBB+' Rating to INR190.92cr Loan
-------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR190.92 crore term
loan of Divine Alloys & Power Company Limited.  The outlook on the
long term rating is stable.

The assigned rating takes into account the experience of the
promoters and the senior management of DAPCL in the steel
industry, availability of raw materials in the vicinity of its
plant leading to low freight costs and its conservative gearing
level at present.  ICRA also notes that the company has embarked
upon a vertically integrated project including a captive power
plant, which would reduce operating costs to a certain extent,
post commissioning.  The rating also factors in DAPCL's
achievement of debt tie-up for the on-going projects which
mitigates funding risks significantly.  However, the rating is
constrained by the weak operating profitability and declining
level of return on capital employed from the current operations
and the project risks associated with the on-going large capital
expenditure plan of the company.  ICRA also believes that, given
the current operating profile of DAPCL in its manufacturing
activities, the company could face challenges in stabilizing the
manufacturing operations of the various facilities of the projects
post implementation.  The rating also factors in the inherent
cyclicality in the steel industry and volatility of raw material
and finished goods (steel) prices, which are likely to keep the
company's cash flows volatile, the highly working capital
intensive nature of its operations, which adversely impacts the
liquidity position and its sales concentration risks, with the top
ten clients accounting for over 60% of sales in 2009-10.

                        About Divine Alloys

Incorporated in 2004, Divine Alloys & Power Company Limited
(DAPCL) is engaged in the production of M.S. Ingots and pig iron
at its manufacturing facilities in Kaushalgarh, Jharkhand. DAPCL
has a MS ingot production facility of 90,000 TPA and pig iron
production facility of 21,000 TPA.  The company started commercial
production from its plant in 2006-07.  The company is currently
setting up an integrated steel plant with a capacity of 206,000
TPA of finished products (structural items, TMT bars, and wire rod
coil).

Recent Results

The company reported a net profit of INR 1.76 crore in 2009-10 on
an operating income of INR 138.76 crore; as compared to a net
profit of INR 1.52 crore on an operating income of INR 66.14 crore
during 2008-09.


HEALTHCARE ENERGY: ICRA Puts 'LBB+' Rating on INR49cr Bank Limit
----------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR 49 crores fund based
limits of Healthcare Energy Foods Private Limited.  The outlook on
the long term rating is stable.  ICRA has also assigned an 'A4+'
rating to the INR 2 crores non-fund based limits of Healthcare.

The inadequate credit quality ratings takes into account the
vulnerability of the profitability of Healthcare's core business
of manufacturing of health food to variations in the prices of its
key raw materials (mainly grains) given the fixed price nature of
the selling  price  of  its  final  product.  ICRA's rating action
also factors in the client concentration risks and credit risks
arising out of its exposure to a single client, namely the GoUP.
Further, the company faces competition from other players and as
the capital requirements in the business are moderate, this may
result in entry of newer players in the future.  This may affect
Healthcare's ability to retain its market share once the current
contract period expires in 2012.  However ICRA derives comfort
from its long track record of supplying food products to
UP govt.  ICRA also draws comfort from the satisfactory financial
profile of the company characterized by profitable operations and
healthy coverage indicators as on March 31, 2010.  Going forward
the key success factor for the firm would be to supply the orders
at the requisite quality and maintain the adequate margins given
the fact that commodity prices are volatile and contracts are of
fixed price nature

Recent results

As per the audited results, Healthcare reported a net profit of
INR 16.62 crore on an operating income of INR 151.48 crore for the
year ended March 31, 2010.

                      About Healthcare Energy

Healthcare Energy Foods Private Limited started its operations in
July 2009 to supply the health nutrition foods to the GoUP. It is
engaged in the manufacturing of Weaning Food and Amalyse Rich
Energy Foods Private Limited which is largely supplied only to
government for their nutrition programmes. The finished product of
the firm is a multivitamin health food comprising  of wheat,
soyabean, sugar, ragi malted flour, vitamins and minerals premix.
The production capacity of the unit is approximately 1 lakhs MT
per annum.


KEDARNATH COTTONS: CRISIL Cuts Rating on INR39.3MM LT Loan to 'D'
-----------------------------------------------------------------
CRISIL has downgraded its rating on the bank facilities of
Kedarnath Cottons Pvt Ltd to 'D' from 'B/Stable'.  The downgrade
reflects instances of delay by KCPL in servicing its debt; the
delays have been caused by KCPL's weak liquidity.

   Facilities                         Ratings
   ----------                         -------
   INR39.30 Million Long-Term Loan    D (Downgraded from
                                         'B/Stable')

   INR170.00 Million Cash Credit      D (Downgraded from
                                         'B/Stable')

KCPL also has working-capital-intensive operations.  These rating
weaknesses are partially offset by the extensive experience of
KCPL's promoters in the cotton ginning business.

Set up in 2009 by Mr. Kedarnath Padigela, Adilabad (Andhra
Pradesh)-based KCPL gins cotton.  It has capacity of 108 double-
rolling gins.  The company has strong relationships with local
farmers, and procures 60 per cent of its total cotton requirement
directly from them.

KCPL reported a profit after tax (PAT) of INR1.4 million on net
sales of INR739.1 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR2.8 million on net sales
of INR292.0 million for 2008-09.


NILGIRI FOOD: ICRA Assigns 'LBB+' Rating to INR22cr Bank Limits
---------------------------------------------------------------
ICRA has assigned an 'LBB+' rating to the INR22 crores fund based
limits of Nilgiri Food Products Private Limited.  The outlook on
the long term rating is stable.  ICRA has also assigned an 'A4+'
rating to the INR1 crores non-fund based limits of Nilgiri.

The inadequate credit quality ratings takes into account the
vulnerability of  the profitability of Nilgiri's core business of
manufacturing of health food to variations in the prices of its
key raw materials (mainly grains) given the fixed price nature of
the selling price of its final product.  ICRA's rating action
also factors in the client concentration risks and credit risks
arising out of its exposure to a single client, namely the GoUP.
Further, the company faces competition from other players and as
the capital requirements in the business are moderate, this may
result in entry of newer players in the future.  This may affect
Nligiri's ability to retain its market share once the current
contract period expires in 2012.  However ICRA derives comfort
from its long track record of supplying food products to UP govt.
ICRA also draws comfort from the satisfactory financial profile of
the company characterized by profitable operations and moderate
gearing of less than 0.5 times as on March 31, 2010. Going forward
the key success factor for the firm would be to supply the orders
at the requisite quality and maintain the adequate margins given
the fact that commodity prices are volatile and contracts are of
fixed price nature

Recent results

As per the audited results, Nilgiri reported a net profit of
INR11.01 crore on an operating income of INR80.59 crore for the
year ended March 31, 2010.

                         About Nilgiri Food

Nilgiri Food Products Private Limited started its operations in
July 2009 to supply the health nutrition foods to the GoUP.  It is
engaged in the manufacturing of Weaning Food which is largely
supplied only to government for their nutrition programmes.  The
finished product of the firm is a multivitamin health food
comprising of wheat, soyabean, sugar, ragi malted flour, vitamins
and minerals premix.  The production capacity of the unit is 96
thousand MT per annum.


PRATHYUSHA ASSOCIATES: CRISIL Rates INR400MM Facility at 'B'
------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Prathyusha Associates Shipping Pvt Ltd.

   Facilities                             Ratings
   ----------                             -------
   INR400 Million Overdraft Facility      B/Stable (Assigned)
   INR 250 Million Foreign Bill Purchase  P4 (Assigned)
   INR600 Million Packing Credit          P4 (Assigned)
   INR150 Million Letter of Credit        P4 (Assigned)
   INR100 Million Bank Guarantee          P4 (Assigned)

The ratings reflect PASPL's weak liquidity owing to large working
capital requirements and the financial support it extends to
associate companies. The ratings also factor in the company's
exposure to demand and price risks, and to adverse regulations
relating to iron ore and slag exports. These weaknesses are
partially offset by PASPL's diverse revenue stream, experienced
management, and healthy operating efficiencies and capital
structure.

Outlook: Stable

CRISIL believes that PASPL will continue to benefit over the
medium term from its experienced management and financial support
from its promoters.  The outlook may be revised to 'Positive' if
the company's cash accruals increase, most likely because of a
reversal of the iron ore export ban by the government, leading to
an improvement in its liquidity and financial risk profile.
Conversely, the outlook may be revised to 'Negative' if PASPL's
turnover decreases, most likely because of adverse industry
regulations or weak demand conditions in the iron ore and slag
trading business, it extends significant financial support to
group companies, or it undertakes a large, debt-funded capital
expenditure programme.

                     About Prathyusha Associates

PASPL was originally established in 1989 as a partnership firm,
Prathyusha Associates, in Visakhapatnam (Andhra Pradesh); the firm
was reconstituted as a private limited company and renamed in
2002. PASPL had started operations as a stevedoring company
(loading and unloading cargo at ports), but has now diversified
into cargo handling (clearing and forwarding), mining and
construction services, and trading (predominantly exports) in iron
ore and slag (coal and agricultural products in small quantities).
Trading contributed about 78 per cent of the company's turnover in
2009-10, while the remainder was contributed by other business
streams. PASPL is promoted by Mr. P Raja Rao and Mr. Ganti
Srinivasa Rao and their families.

PASPL is part of the Prathyusha group, which is engaged in power
generation, international trade, mining, and education. The other
entities of the group include Prathyusha Educational Trust (rated
'D' by CRISIL) and Prathyusha Power Gen Pvt Ltd ('D').

PASPL reported a profit after tax (PAT) of INR156.0 million on net
sales of INR4.79 billion for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR68.6 million on net
sales of INR2.04 billion for 2008-09.


PV SPINNING: CRISIL Reaffirms 'D' Rating on INR86.1MM LT Loan
-------------------------------------------------------------
CRISIL ratings on the bank facilities of P.V. Spinning Mill India
Pvt Ltd continue to reflect the instances of delay by PV Spinning
in servicing its debt; the delays have been caused by PV
Spinning's weak liquidity.

   Facilities                                Ratings
   ----------                                -------
   INR86.10 Million Long-Term Loan           D (Reaffirmed)
   INR26.50 Million Cash Credit Limit        D (Reaffirmed)
   INR15.00 Million Letter of Credit Limit   P5 (Reaffirmed)
   INR17.50 Million Bank Guarantee Limit     P5 (Reaffirmed)

Update

For 2009-10 (refers to financial year, April 1 to March 31), PV
Spinning's revenues increased by around 22 per cent over that in
the previous year, driven by an increase in capacity to 13,200
spindles from 8,400 spindles.  Furthermore, the company started
making profits because of the favorable industry scenario. PV
Spinning incurred a capital expenditure (capex) of around INR20
million in 2009-10 and INR30 million in 2010-11 for expansion of
its spindle capacity and addition of automatic cone winding
machines, including a total debt funding of INR45 million.  Also,
the company's liquidity continues to be constrained by full bank
limit utilization for the 12 months through December 2010,
resulting in delays in servicing of debt.

                        About P.V. Spinning

Set up in 2005 by Mr. K P Balasubramaniam in Tamil Nadu, PV
Spinning commenced commercial production in 2007.  It manufactures
cotton yarn and outsources the production of cotton hosiery cloth.
The company currently has a production capacity of 13,200
spindles.  PV Spinning derives around 80 per cent of its revenues
from sales of cotton hosiery cloth, and the rest from sales of
cotton yarn.

PV Spinning reported a net profit of INR0.2 million on net sales
of INR131 million for 2009-10, against a net loss of INR0.8
million on net sales of INR107 million for 2008-09.


RAN INDIA: CRISIL Assigns 'B+' Rating to INR169.5MM LT Loan
-----------------------------------------------------------
CRISIL has assigned its 'B+/Stable/P4' ratings to the bank
facilities of Ran India Steels Pvt Ltd.

   Facilities                           Ratings
   ----------                           -------
   INR169.50 Million Long-Term Loan     B+/Stable (Assigned)
   INR225.00 Million Cash Credit        B+/Stable (Assigned)
   INR300.00 Million Letter of Credit   P4 (Assigned)

The ratings reflect RISPL's below-average financial risk profile,
marked by high gearing and weak debt protection metrics, its
susceptibility to volatility in raw material prices and foreign
exchange rates, and exposure to risks related to intense
competition and fragmentation in the steel industry. These
weaknesses are partially offset by RISPL's established market
position and integrated operations.

Outlook: Stable

CRISIL believes that RISPL will continue to benefit from its
established market position over the medium term. The outlook may
be revised to 'Positive' if the company increases its scale of
operations while improving its capital structure. Conversely, the
outlook may be revised to 'Negative' if the company's capacity
utilisation levels drop, its operating margin decline, or if it
undertakes a larger-than-expected debt-funded capital expenditure
programme.

                         About Ran India

Incorporated in 1995, RISPL is promoted by Mr. R Radha and
Mr. R Nagarajan.  The company manufacturers cold twisted deformed
bars and thermo-mechanically treated (TMT) bars and has integrated
operations with a melting furnace for the manufacture of ingots.
RISPL's rolling mill has a capacity of 37,700 tonnes per annum
(tpa).  The melting furnace has a capacity of 43,800 tpa and its
windmill has a capacity of 7.5 megawatt.  The company sells TMT
steel bars under the Ran India brand in Tamil Nadu and Kerala.

RISPL reported a profit after tax (PAT) of INR29.5 million on net
sales of INR904.3 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR24.2 million on net
sales of INR1.06 billion for 2008-09.


RANTUS PHARMA: CRISIL Assigns 'C' Rating to INR40MM Cash Credit
---------------------------------------------------------------
CRISIL has assigned its 'C' rating to the bank facilities of
Rantus Pharma Pvt Ltd, which is part of the Rantus group.

   Facilities                      Ratings
   ----------                      -------
   INR40.00 Million Cash Credit    C (Assigned)
   INR20.00 Million Proposed LT    C (Assigned)
             Bank Loan Facility

The rating reflects the Rantus group's weak liquidity with
instances of devolvement of letter of credit facilities, and delay
in debt servicing by group company, Alekhya Drugs Pvt Ltd.  The
rating also factors in the expected deterioration in the Rantus
group's financial risk profile on account of large capital
expenditure plans and high working capital requirements; and its
small scale of operations, with a limited track record, in the
fragmented bulk drugs pharmaceutical industry.  These rating
weaknesses are partially offset by the group's established
relationships with customers, and benefits expected from the
healthy growth prospects for the pharmaceutical exports segment.

For arriving at the rating, CRISIL has combined the business and
financial risk profiles of RPPL and ADPL, together referred to as
the Rantus group. This is because ADPL is a 99-per-cent subsidiary
of RPPL. Moreover, the two companies are in the same line of
business, under the same management, and have fungible cash flows.

                          About the Group

RPPL and its subsidiary, ADPL, are both Hyderabad-based
pharmaceutical companies manufacturing active pharmaceutical
ingredients (APIs) and API intermediates.  The present promoters
acquired RPPL as a sick unit from the Debt Recovery Tribunal in
2003. As RPPL's plant was old and could not be modified as per
certification requirements, the promoters set up ADPL in 2005-06
(refers to financial year, April 1 to March 31) as a 99-per-cent
subsidiary of RPPL. ADPL commenced commercial operations in April
2008.  The group also has plans to set up a new unit under RPPL at
Chouttuppal, near Hyderabad.  Also ADPL is in a process to
increase the Metformine-HCl capacity to 500 Tones per Month (TPM)
from present level of 120 TPM.

The Rantus group reported a profit after tax (PAT) of INR20.76
million on net sales of INR439.81 million for 2009-10, against a
PAT of INR14.02 million on net sales of INR348.53 million for
2008-09.


RISING HOTEL: CRISIL Assigns 'D' Rating to INR97.6MM Term Loan
--------------------------------------------------------------
CRISIL has assigned its 'D' rating to Rising Hotel Ltd's bank
facilities. The rating reflects delay by RHL in servicing its term
loan; the delay has been caused by RHL's weak liquidity.

   Facilities                     Ratings
   ----------                     -------
   INR4.0 Million Cash Credit     D (Assigned)
   INR97.6 Million Term Loan      D (Assigned)

RHL has a weak financial risk profile, marked by small net worth
and accumulated losses, and is susceptible to cyclicality in the
hotel industry. However, the company benefits from the established
track record of its promoters in the hospitality industry.

RHL, incorporated in 1999, is promoted by the Galani and Somani
families.  The company operates a four-star hotel at Ahmedabad,
Gujarat, under the Country Inn and Suites brand (which is owned by
Carlson Inc) and has a 68-room hotel with facilities such as
restaurant, banquet hall, and gymnasium.  The property was earlier
a guesthouse.

RHL reported a net loss of INR12.69 million on net sales of
INR60.04 million for 2009-10 (refers to financial year, April 1 to
March 31), against a net loss of INR8.08 million on net sales of
INR1.08 million for 2008-09.


SEVEN INDIA: ICRA Revises Rating on INR12cr Term Loan to 'LBB-'
---------------------------------------------------------------
ICRA has revised the long term rating to the INR12.0 crore term
loan facility of Seven India Hospitality Pvt. Ltd to 'LBB-' from
'LBB.'  The outlook on the rating is stable.

The rating revision takes into account the deterioration in
SIHPL's financial risk profile as reflected by negative free cash
flows led by high interest cost and stressed interest coverage
indicators.  Additionally, the rating revision factors in the
competitive pressures in Bangalore hospitality markets as
reflected in low  Average Room Revenues impacting the
profitability and debt protection indicators  for SIHPL.  The
rating continues to factor in the limited experience of the
promoters in the development and operation of hotels.  However,
the rating derives comfort from good location of the hotel and its
proximity to Information Technology corridor of ORR-Sarjapur
stretch in Bangalore.  The rating also takes into account the
equity infusion by the promoters in the past.

                   About Seven India Hospitality

SIHPL was incorporated in 2006 to develop, operate and maintain a
Business Hotel, located at the ORR, under a consortium between UKN
Group, a Bangalore based real estate developer, and Seven
Partner SAS, France.  This 47 room hotel named as 'Seven Hotel'
commenced its operations from February 2009.  The hotel property
is developed on land for which UKN has entered into Joint
Development Agreement (JDA) with the landowner. By virtue of the
JDA, the landowner holds 43% of the total super built up area and
remaining by UKN. SIHPL bought the 57% share of UKN and entered
into lease of 25 years with the landowner for its 43% share.

Recent Results
During FY 2009-10, SIHPL generated a net loss of INR 4.1 crore on
an operating income of INR 3.9 crore.


SHRI SAI STEEL: CRISIL Assigns 'B' Rating to INR40MM Cash Credit
----------------------------------------------------------------
CRISIL has assigned its 'B/Stable/P4' ratings to the bank
facilities of Shri Sai Steel Traders.

   Facilities                          Ratings
   ----------                          -------
   INR40.00 Million Cash Credit        B/Stable (Assigned)
   INR20.00 Million Letter of Credit   P4 (Assigned)

The ratings reflect SSST's weak financial risk profile, marked by
a highly leveraged capital structure and weak debt protection
measures.  The ratings also factor in SSST's small scale of
operations and exposure to intense competition in the steel
trading business.  These rating weaknesses are partially offset by
the extensive experience of SSST's promoter in the steel trading
business.

Outlook: Stable

CRISIL believes that SSST will continue to benefit over the medium
term from its promoter's experience in the steel trading business.
The outlook may be revised to 'Positive' if SSST's financial risk
profile improves, most likely because of improvement in capital
structure and significant increase in revenues and profitability.
Conversely, the outlook may be revised to 'Negative' if SSST's
profitability declines, most likely because of continued
volatility in steel prices and sharp decline in sales, or if SSST
undertakes a significant debt-funded capital expenditure
programme, resulting in the weakening of its capital structure
over the medium term.

                           About Shri Sai

Set up as partnership firm in 1972 and based in Hyderabad, SSST
trades in various steel products, including angles, plates,
channels, and structures.  The firm's promoter-director, Mr. Vivek
Bansal, has been in the firm since 1984 and has more than 26 years
of experience in the steel trading business.

SSST reported a profit after tax (PAT) of INR1.02 million on net
sales of INR529 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR0.40 million on net
sales of INR642 million for 2008-09.


SHRI VENKETESHWARA: CRISIL Assigns 'D' Rating to INR137MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'D' rating to the bank facilities of Shri
Venketeshwara Biorefineries and Biofuels Pvt Ltd.  The rating
reflects delay by Shri Venketeshwara in servicing its term loan;
the delay has been caused by weak liquidity.

   Facilities                         Ratings
   ----------                         -------
   INR137 Million Rupee Term Loan     D (Assigned)
   INR12.5 Million Cash Credit        D (Assigned)

Shri Venketeshwara's capacity utilisation is susceptible to raw
material scarcity and adverse regulatory changes. However, the
company benefits from its promoters' extensive experience in the
brewing industry and the healthy demand outlook for the brewing
industry over medium term.

Incorporated in 2004, Shri Venkateshwara has set up a plant for
manufacturing neutral grain spirit, extra-neutral alcohol (ENA)
and rectified spirit in Kolhapur, Maharashtra. The manufacturing
capacity of the plant is at 25,000 litres per day of ENA. The
company is promoted by Mr. Sharad Shete, Mr. Pradip Desai, Mr.
Dadaso Patil, and their associates.


SRI VENKATA: CRISIL Assigns 'D' Rating to INR80MM Cash Credit
-------------------------------------------------------------
CRISIL has assigned its 'D/P5' ratings to the bank facilities of
Sri Venkata Sai Constructions & Co.

   Facilities                         Ratings
   ----------                         -------
   INR80.00 Million Cash Credit       D (Assigned)
   INR10.00 Million Bank Guarantee    P5 (Assigned)

The ratings reflect the fact that SVSCC has been continuously
overdrawing its cash credit limits because of liquidity problems
arising out of stretched receivables level and working-capital-
intensive operations.

The rating also takes into account the small scale of operations
and exposure to risks relating to tender based nature of business.
However, the firm benefits from the long standing experience of
promoters in the civil construction business.

SVSCC is a partnership firm engaged in civil construction.  The
firm mainly undertakes subcontracting work for excavation,
construction, and lining of irrigation canals and bridges for the
public works departments (PWDs) of Andhra Pradesh, Maharashtra,
and Madhya Pradesh. The firm currently has an unexecuted order
book position of around INR1.45 billion.

For 2009-10 (refers to financial year, April 1 to March 31), SVSCC
reported a profit after tax (PAT) of INR19.3 million on net sales
of INR667.9 million, against a PAT of INR15.6 million on net sales
of INR576.4 million for 2008-09.


SUMANGLAM FOOTWEAR: CRISIL Assigns 'BB+' Rating to INR3MM Loan
--------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable/P4+' ratings to the bank
facilities of Sumanglam Footwear Pvt Ltd.

   Facilities                          Ratings
   ----------                          -------
   INR3.00 Million Long-Term Loan      BB+/Stable (Assigned)
   INR48.50 Million Packing Credit     P4+ (Assigned)
   INR18.00 Million Letter of Credit   P4+ (Assigned)
   INR0.50 Million Bank Guarantee      P4+ (Assigned)

The ratings reflect SFPL's small scale of operations in the
intensely competitive leather footwear industry, average operating
efficiency, and exposure to risks related to geographic and
customer concentration in revenue profile.  These rating
weaknesses are partially offset by SFPL's healthy financial risk
profile, marked by a low gearing and above-average debt protection
metrics, and long track record in the leather shoe industry.

Outlook: Stable

CRISIL believes that SFPL will continue to benefit over the medium
term from its long presence in the leather shoe industry and its
established relationships with its customers.  The outlook may be
revised to 'Positive' if the company's significantly scales up its
operations and improves its profitability.  Conversely, the
outlook may be revised to 'Negative' if SFPL undertakes a larger-
than-expected, debt-funded capital expenditure programme, leading
to deterioration in its financial risk profile, reports decline in
profitability, or faces adverse regulatory changes.

                      About Sumanglam Footwear

SFPL, promoted by Mr. Narendra Aggarwal and Mr. Rajiv Bansal,
manufactures leather footwear. It generates most of its revenues
from exports, which are mainly to Europe.  The company's
production facilities in Bahadurgarh (Haryana) have total capacity
of 864,000 pairs per annum. SFPL sells its products to traders and
modern format retailers mainly in Europe.  The company
manufactures shoes for all age groups; however, it derives around
70 per cent of its revenues from its sales of men's shoes.

SFPL reported a profit after tax (PAT) of INR14.1 million on net
sales of INR233.4 million for 2009-10 (refers to financial year,
April 1 to March 31), against a PAT of INR12.6 million on net
sales of INR219.7 million for 2008-09.


V3 ENGINEERS: CRISIL Upgrades Rating on INR17.8MM LT Loan to 'C'
----------------------------------------------------------------
CRISIL has upgraded its ratings on the bank facilities of V3
Engineers Pvt Ltd to 'C/P4' from 'D/P5'.

   Facilities                             Ratings
   ----------                             -------
   INR17.80 Million Long-Term Loan        C (Upgraded from 'D')
   Rs .115.00 Million Cash Credit Limit   C (Upgraded from 'D')
   INR30.00 Mil. Letter of Credit Limit   P4 (Upgraded from 'P5')
   INR40.00 Million Bank Guarantee Limit  P4 (Upgraded from 'P5')

The upgrade reflects the rescheduling of V3's debt obligations in
February 2010, leading to a slight improvement in the liquidity;
there is no current overdue in V3's term loan account and neither
has the company overdrawn its cash credit limits.  Also, the
company has a sizeable order book, which is to be executed in
2010-11 (refers to financial year, April 1 to March 31).

The ratings continue to reflect V3's weak financial risk profile,
marked by high gearing and weak debt protection measures.  The
ratings also factor in its exposure to risks related to volatility
in raw material prices, and large working-capital-intensive
operations.  These rating weaknesses are partially offset by V3's
established regional presence in the furniture industry, supported
by a diversified customer base.

                         About V3 Engineers

Set up as a partnership firm in 1990 by Mr. R Guruprasad, Mr. N
Vasu, and Mr. S Sampath Raghavan, V3 was reconstituted as a
private limited company in 2000.  Based in Bengaluru (Karnataka),
V3 manufactures and installs modular furniture for corporate use;
it diversified into the home segment and complete interior
solutions segment in 2006-07 (refers to financial year, April 1 to
March 31).

V3 reported a net loss of INR72.4 million on net sales of INR195.2
million for 2009-10, against a net loss of INR53 million on net
sales of INR461.3 million for 2008-09.


VISHAL MALLEABLES: CRISIL Reaffirms 'B+' Rating on Cash Credit
--------------------------------------------------------------
CRISIL's ratings on the bank facilities of Vishal Malleables Ltd
continue to reflect VML's weak financial risk profile, constrained
by limited financial flexibility, and small scale of operations.
These rating weaknesses are partially offset by the benefits that
the company derives from its established track record of
operations, its strong customer relationships, and the buoyancy in
the end-user industry.

   Facilities                            Ratings
   ----------                            -------
   INR17.50 Million Cash Credit          B+/ Negative (Reaffirmed)
   INR15.00 Million Cash Credit--Book    B+/ Negative (Reaffirmed)
                                Debt
   INR8.00 Million Long-Term Loan        B+/ Negative (Reaffirmed)
   INR34.70 Million Proposed Long-Term   B+/ Negative (Reaffirmed)
                    Bank Loan Facility
   INR15.00 Million Letter of Credit     P4 (Assigned)
   INR7.50 Million Bank Guarantee       P4 (Assigned)

Outlook: Negative

CRISIL believes that VML's credit risk profile will remain
constrained over the medium term by the significantly large, debt-
funded capital expenditure (capex) programme undertaken by the
company, and the highly working-capital-intensive operations that
restrict its liquidity.  The ratings may be downgraded if VML
reports decline in profitability or stretch in its cash cycle
impacting its debt-servicing ability.  Conversely, the outlook may
be revised to 'Stable' if the liquidity improves and if the
ongoing project stabilizes in time, thereby improving the cash-
generation capacity of the company.

                       About Vishal Malleables

Incorporated in 1974 by Mr. L N Bhagwati and Mr. R D Patel as a
private limited company, VML manufactures ferrous castings. In
1977, the company was reconstituted as public limited company. In
1982, the company was acquired by Mr. L R Mewani (retired from the
company's board in 2010) and Mr. O P Khetan, (the current chairman
and chief executive officer).  VML has three business divisions:
foundry (ferrous casting and non-ferrous casting), insulator, and
wind power. VML derives around 80 per cent of its revenues from
its foundry division and the rest from its insulator division; the
wind power division caters to the company's in-house power needs.
VML, located in Ankleshwar (Gujarat), has a diversified customer
base, in the automobile and power segments, across India. The
company is setting up an automatic moulding line in the foundry
division with a capex of about INR110 million, which is being
funded in a debt-to-equity ratio of 3 times.

For 2009-10 (refers to financial year, April 1 to March 31), VML
reported a net profit of INR4.5 million on operating income of
INR600 million, against a net profit of INR3 million on operating
income of about INR700 million for the preceding year. For the six
months ended September 30, 2010, VML reported, on a provisional
basis, net profit of about INR3 million on operating income of
INR360 million.


WAVE DISTILLERIES: ICRA Places 'LBB' Rating on INR114cr Limits
--------------------------------------------------------------
ICRA has assigned an 'LBB' rating to the INR 114 crores fund based
limits of Wave Distilleries and Breweries Limited (erstwhile UBIO
Chemicals Limited).  The outlook on the long term rating is
stable.

ICRA's inadequate credit quality ratings factor in the company's
limited track record of operations, high regulatory risks given
that the alcohol industry is highly regulated by the government
and the vulnerability of the company's profitability to molasses
price movement.  The ratings also factors in the high financial
risks arising out of significantly debt funded capex, which has
resulted in high gearing of  1.95 times as on  FY10. Further the
company has significant project risks arising out of its plans for
setting up a brewery plant.   However, ICRA derives comfort from
the experience of the promoters in the  liquor business and
limited offtake risk as Wave Distillereis has an offtake agreement
with Flora and Fauna Land Developers Private Limited which has a
license to supply country liquor (CL) in UP . The rating also
derives some comfort from the managerial and financial support
arising out of being a part of the Chadha group of companies.

Recent results

As per the audited results, Wave Distilleries reported a net
profit of INR 8.05 crore on an operating income of INR 169.40
crore for the year ended March 31, 2010.

                      About Wave Distilleries

Wave Distilleries and Breweries Limited was incorporated as UBIO
Chemicals Limited (UBIO) in 2008.  The company was acquired by
Chadha group in 2009 from the erstwhile promoters of UBIO for a
consideration of around INR93 crores.  The manufacturing unit,
which is located in the Aligarh district of UP, has a production
capacity of 2.5 crores litres of ENA (which is used in
manufacturing of CL) and 45 lakhs litre of Industrial alcohol.
The company received production license in June 2009 and started
its production in June 2009 itself.


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


PIKE RIVER: No Possible Payout for Mine Contractors
---------------------------------------------------
Amelia Langford of the New Zealand Press Association reports that
Pike River Coal receivers said there's a "strong possibility" Pike
River Coal mine contractors will never receive money owed to them.

Around 80 West Coast contractors and suppliers are owed more than
NZ$8 million dating back to October, NZPA says.

NZPA notes that companies with more than 200 employees were
contracted to Pike River Coal at the time of the explosion at the
mine that killed 29 men, including 13 contractors.

Receiverships were usually quite complex but the Pike River Coal
mine situation was one of a kind, receiver John Fisk, of
PricewaterhouseCoopers, told NZPA.

"The extra dimension that's created with the loss of 29 men in the
mine and the circumstances make it quite unique and present
different challenges to us," NZPA quoted Mr. Fisk as saying.

When asked if there was a chance the contractors would never get
paid, Mr. Fisk told NZPA, "That's a strong possibility still,
yes."

According to NZPA, Mr. Fisk said the contractors understood they
were unsecured creditors, under receivership law, and could not be
paid before secured creditors.

PricewaterhouseCoopers announced last month work would continue
for up to eight weeks to try to ensure stability of the mine's
environment, NZPA reports.

If the receiver could get the mine running again, then the chances
of contractors being paid were far higher, NZPA notes.

"We're positive about the plan that's been put in place . . . but
it's not over yet," Mr. Fist told NZPA.  Otherwise, contractors
could only be paid if there was still some value in the mine that
could be "realized."

NZPA relates that Mr. Fisk said the receivers were finalising the
handover of management of the mine with police, who had ended
their recovery operation, and it should be completed in the next
few days.

As reported in the Troubled Company Reporter-Asia Pacific on
December 14, 2010, Bloomberg News said that Pike River Coal Ltd,
the New Zealand company that operates the coal mine where 29
miners died in a series of explosions in November 2010, has been
placed into receivership.  Bloomberg related that Pike River
Chairman John Dow said its largest shareholder, NZ Oil & Gas,
appointed accountants PricewaterhouseCoopers as receivers.

The company owed NZ$80 million to secured creditors BNZ and
New Zealand Oil and Gas.  Pike River also owed another estimated
NZ$10 million to NZ$15 million to contractors, including some of
the men who lost their lives in the disaster.

                         About Pike River

Pike River Coal Limited (NZE:PRC) -- http://www.pike.co.nz/-- is
a New Zealand-based coal mining company.  The Company, along with
its subsidiaries, is primarily engaged in the exploration,
evaluation, development and production of coal.  It operates a
coal mine that lies under the Paparoa Ranges.


* NEW ZEALAND: Trustee Approves Wind-up of Two Funds
----------------------------------------------------
Sunday Star Times reports that the final wind-up of the two
"structured credit" funds sold by ANZ bank, which caused so much
controversy in 2009 and 2010, has been approved by the trustee.

According to the report, the closure of the Diversified Yield and
Regular Income funds, which invested in complicated CDOs
(collateralised debt obligations) and CLOs (collateralised loan
obligations), was approved at a meeting just before Christmas.

Sunday Star Times relates that the funds, which ANZ customers
claimed were sold to them as an alternative to safe term deposits,
collapsed in value by more than 80% when the credit crunch hit in
late 2007 and 2008.

Though the manager of the funds ING (now called Onepath) insisted
the funds would recover, Sunday Star Times notes, the collapse
lead to the creation of the Frozen Funds protest group, a Commerce
Commission inquiry into whether the funds were mis-sold, and the
bank buying back investors' units in the funds.

Sunday Star Times states that along with tax breaks on losses,
top-up awards made by the Banking Ombudsman and a NZ$45 million
settlement ANZ agreed to avoid prosecution by the Commerce
Commission, investors ultimately ended getting around 96 cents
back in each dollar they invested, according to the Commerce
Commission.  Some got back 100% of their money, the report adds.

Ultimately ANZ and ING paid some NZ$545 million to investors in
the funds, which were so popular that at one stage they contained
more than NZ$750 million, Sunday Star Times relates.

Because of that, according to Sunday Star Times, the outcome for
investors was far better than that of many who sunk their money
into the plethora of failed finance companies.

Sunday Star Times adds that ANZ said the wind-up would commence
30 days after the date of the letter to unitholders, which letter
was sent late December.


===============
T H A I L A N D
===============


PICNIC CORP: Creditors Approve Debt Restructuring Plan
------------------------------------------------------
Bangkok Post reports that property tycoon Pimol Srivikorn and
other investors will take an 85% stake in Picnic Corp. after
creditors approved the company's debt restructuring plan.

Bangkok Post relates that creditors holding THB7.396 billion in
debt, including Krung Thai Bank and United Overseas Bank (Thai),
voted 79.56% to keep the cooking gas distributor afloat.

Under the plan, says Bangkok Post, creditors will accept a haircut
of more than 75% of their obligations, to THB1.8 billion.
Shareholders will also accept a capital writedown to help clear
losses of THB11 billion, Bangkok Post adds.

According to Bangkok Post, Pimol Srivikorn, a former director of
Thaksin Shinawatra's Thai Rak Thai party and whose family controls
Gaysorn Plaza, will purchase THB1.7 billion in new shares, with
another 100 million in shares offered to creditors in a debt-
equity swap.

Creditors will hold 5% of the restructured company, with former
shareholders, who include 10,000 retail investors as well as the
founding Lapvisuthisin family, holding the remaining 10%, Bangkok
Post discloses.

Bangkok Post relates that Teerawat Pangviroongrug, an adviser to
the restructuring team, said the planner hoped to complete the
process in 120 to 150 days after formal court approval.

Teerawat, as cited by Bangkok Post, said Picnic hoped to resume
trading on the SET within 15 months.  The shares have been
suspended since early 2008.

According to the report, details of the company's debt
restructuring plan include:

   -- Debtors agree to cut debt obligations from THB7.4 billion
      to THB1.8 billion.

   -- Picnic reduces capital to clear retained losses of
      THB11 billion.

   -- Company increases capital by THB1.8 billion:

       * THB1.7 billion in new shares sold to group led
         by Pimol Srivikorn at THB1 par.

       * THB100 million in shares swapped for debt with
         creditors.

   -- Paid-up capital after restructuring and retained losses
      are cleared will be around THB2 billion (paid-up capital
      as of rehabilitation date was THB2.9 billion).

   -- New shareholding structure:

      * Pimol Srivikorn and allies: 85%

      * Existing shareholders: 10%

      * Creditors: 5%

                            About Picnic

Picnic Corporation Public Company Limited is a Thailand-based
company engaged in the distribution of liquefied petroleum gas
(LPG) under the name Picnic Gas.  It also provides installation
services for electrical systems, water supplies and air
conditioners.

Picnic Corp entered into court-supervised restructuring in
December 2009.

Picnic's last reported result was a loss of THB946.3 million for
the first half of 2009.  Its LPG market share has fallen by half
to just 4-5% in recent years.

According to Bangkok Post, the company has been the subject of
numerous investigations since 2004.  The SEC accused Picnic and
members of the Lapvisuthisin family of accounting fraud in 2005,
but the case was dismissed in 2007 for lack of evidence.
Regulators filed a new complaint in 2009 against Suriya
Lapvisuthisin, a deputy commerce minister in the Thaksin
government, for colluding to defraud Picnic in the transfer of
holdings in World Gas to another company prior to entering
rehabilitation.


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


* Upcoming Meetings, Conferences and Seminars
---------------------------------------------

Feb. 3-5, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Caribbean Insolvency Symposium
        Westin Casuarina Resort & Spa, Grand Cayman Island
           Contact: 1-703-739-0800; http://www.abiworld.org/

Feb. 24-25, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Valcon
        Four Seasons Las Vegas, Las Vegas, Nev.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 4, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Bankruptcy Battleground West
        Hyatt Regency Century Plaza, Los Angeles, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 7-9, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Conrad Duberstein Moot Court Competition
        Duberstein U.S. Courthouse, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Nuts and Bolts - Florida
        Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 10-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     SUCL/ Alexander L. Paskay Seminar on
     Bankruptcy Law and Practice
        Marriott Tampa Waterside, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 17-19, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Byrne Judicial Clerkship Institute
        Pepperdine University School of Law, Malibu, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Mar. 31-Apr. 3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 27-29, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott, Chicago, IL
           Contact: http://www.turnaround.org/

May 5, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Nuts and Bolts - New York City
        Association of the Bar of the City of New York,
        New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

May 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     New York City Bankruptcy Conference
        Hilton New York, New York, N.Y.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Canadian-American Cross-Border Insolvency Symposium
        Fairmont Royal York, Toronto, Ont.
           Contact: 1-703-739-0800; http://www.abiworld.org/

June 9-12, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Central States Bankruptcy Workshop
        Grand Traverse Resort and Spa, Traverse City, Mich.
              Contact: http://www.abiworld.org/

July 21-24, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Northeast Bankruptcy Conference
        Hyatt Regency Newport, Newport, R.I.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 27-30, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Sanctuary at Kiawah Island, Kiawah Island, S.C.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 4-6, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hotel Hershey, Hershey, Pa.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 14, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     NCBJ/ABI Educational Program
        Tampa Convention Center, Tampa, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. __, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     International Insolvency Symposium
        Dublin, Ireland
           Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 25-27, 2011
  TURNAROUND MANAGEMENT ASSOCIATION
     Hilton San Diego Bayfront, San Diego, CA
        Contact: http://www.turnaround.org/

Dec. 1-3, 2011
  AMERICAN BANKRUPTCY INSTITUTE
     23rd Annual Winter Leadership Conference
        La Quinta Resort & Spa, La Quinta, Calif.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 3-5, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        Grand Hyatt Atlanta, Atlanta, Ga.
           Contact: http://www.turnaround.org/

Apr. 19-22, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Annual Spring Meeting
        Gaylord National Resort & Convention Center,
        National Harbor, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Southeast Bankruptcy Workshop
        The Ritz-Carlton Amelia Island, Amelia Island, Fla.
           Contact: 1-703-739-0800; http://www.abiworld.org/

Aug. 2-4, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Mid-Atlantic Bankruptcy Workshop
        Hyatt Regency Chesapeake Bay, Cambridge, Md.
           Contact: 1-703-739-0800; http://www.abiworld.org/

November 1-3, 2012
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Westin Copley Place, Boston, Mass.
           Contact: http://www.turnaround.org/

Nov. 29 - Dec. 2, 2012
  AMERICAN BANKRUPTCY INSTITUTE
     Winter Leadership Conference
        JW Marriott Starr Pass Resort & Spa, Tucson, Ariz.
           Contact: 1-703-739-0800; http://www.abiworld.org/

April 10-12, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Spring Conference
        JW Marriott Chicago, Chicago, Ill.
           Contact: http://www.turnaround.org/

October 3-5, 2013
  TURNAROUND MANAGEMENT ASSOCIATION
     TMA Annual Convention
        Marriott Wardman Park, Washington, D.C.
           Contact: http://www.turnaround.org/


                             *********

Tuesday's edition of the TCR-AP delivers a list of indicative
prices for bond issues that reportedly trade well below par.
Prices are obtained by TCR-AP editors from a variety of outside
sources during the prior week we think are reliable.   Those
sources may not, however, be complete or accurate.  The Tuesday
Bond Pricing table is compiled on the Friday prior to
publication.  Prices reported are not intended to reflect actual
trades.  Prices for actual trades are probably different.  Our
objective is to share information, not make markets in publicly
traded securities.  Nothing in the TCR-AP constitutes an offer
or solicitation to buy or sell any security of any kind.  It is
likely that some entity affiliated with a TCR-AP editor holds
some position in the issuers' public debt and equity securities
about which we report.

A list of Meetings, Conferences and Seminars appears in each
Wednesday's edition of the TCR-AP. Submissions about insolvency-
related conferences are encouraged.  Send announcements to
conferences@bankrupt.com

Friday's edition of the TCR-AP features a list of companies with
insolvent balance sheets obtained by our editors based on the
latest balance sheets publicly available a day prior to
publication.  At first glance, this list may look like the
definitive compilation of stocks that are ideal to sell short.
Don't be fooled.  Assets, for example, reported at historical
cost net of depreciation may understate the true value of a
firm's assets.  A company may establish reserves on its balance
sheet for liabilities that may never materialize.  The prices at
which equity securities trade in public market are determined by
more than a balance sheet solvency test.


                            *********


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

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

Copyright 2011.  All rights reserved.  ISSN: 1520-9482.

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

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





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