---

        T R O U B L E D   C O M P A N Y   R E P O R T E R

                      A S I A   P A C I F I C

           Monday, October 22, 2012, Vol. 15, No. 210

                            Headlines


A U S T R A L I A

CITIGROUP PTY: Moody's Affirms 'C-' Standalone Assessment
FMG RESOURCES: Moody's Assigns 'Ba1' Rating to Sr. Sec. Facility
GROUT PRO: 11 Franchisees Ink Deal With New Owners
GUNNS LTD: Receivers Put Two Sawmills Up For Sale
URBAN CONTRACTORS: Goes Into Administration; 60 Jobs in Limbo

* AUSTRALIA: Moody's Mortgage Deliquencies Expected to Stabilize


C H I N A

CHINA EXECUTIVE: Kaien Liang Discloses 69.6% Equity Stake
CHINA GUANGDONG: Moody's Says Issuer Rating Reflects 'Ba2' BCA
FRANSHION PROPERTIES: S&P Gives 'BB' Rating on USD Fixed Notes
HAWKER BEECHCRAFT: Sale to Chinese Firm Unravels


H O N G  K O N G

CIJ CREATION: Creditors Get 100% Recovery on Claims
COMPACT CONSTRUCTION: Creditors' Proofs of Debt Due Nov. 9
FINESTYLE MARITIME: Stephen Liu Steps Down as Liquidator
FINE WEALTHY: Court to Hear Wind-Up Petition on Dec. 5
HENCH (CHINA): Court to Hear Wind-Up Petition on Nov. 14

INC OWNERS OF 100: Court to Hear Wind-Up Petition on Nov. 21
INC OWNERS OF WAH: Court to Hear Wind-Up Petition on Nov. 21
MARK UNIVERSAL: Court to Hear Wind-Up Petition on Nov. 28
NETWORK CN: Inks Separate Agreements with Lek Pak and Windcom
SIMS (H.K.): Court to Hear Wind-Up Petition on Nov. 28

SINO PEAK: Creditors Get 0.440% Recovery on Claims
SNE ENGINEERING: Court to Hear Wind-Up Petition on Oct. 31
SOUTH CHINA: Court to Hear Wind-Up Petition on Nov. 14
TECHWELL ENGINEERING: Court to Hear Wind-Up Petition on Nov. 21
TUNGDA INNOVATIVE: Court to Hear Wind-Up Petition on Nov. 7

UNIVERSAL BUILDING: Court to Hear Wind-Up Petition on Dec. 5


I N D I A

AASCAR FILM: ICRA Rates INR10cr Fund Based Loan at '[ICRA]B'
ACCELERATED FREEZE: ICRA Upgrades Rating on INR3.67cr Loan to 'C'
AL-RKAYAN APPARELS: ICRA Puts 'B+' Rating on INR14.5cr Loans
H.P. MADHUKAR: ICRA Rates INR5.5cr Overdraft '[ICRA]B'
K. K. HOMES: ICRA Cuts Rating on INR10cr Loan to '[ICRA]D'

KINGFISHER AIRLINES: Fails to Persuade Workers to Return to Work
KUMARAGIRI TEXTILES: ICRA Cuts Rating on INR10.62cr Loans to 'C'
MANIAM PROPERTIES: ICRA Cuts Rating on INR100cr Loan to 'D'
RAMNIKLAL & SONS: ICRA Cuts Rating on INR8cr Loan to '[ICRA]B'
SARTHAK ISPAT: ICRA Assigns '[ICRA]B' Rating to INR29.5cr Loans

SAUMYA DSM: ICRA Cuts Rating on INR98.65cr Loans to '[ICRA]D'
SHRI RAM: ICRA Reaffirms '[ICRA]B' Rating on INR13.07cr Loans
SRI LAKSHMI: ICRA Cuts Rating on INR20cr Loan to '[ICRA]D'
ULTRACAB (INDIA): ICRA Assigns 'B' Rating to INR11.32cr Loans
VASHU YARN: Delay in Loan Payment Cues ICRA Junk Ratings

VINEETAZ EXPORTS: Delay in Loan Payment Cues ICRA Junk Ratings


I N D O N E S I A

ENERGI MEGA: Moody's Assigns '(P)B2' Corporate Family Rating
ENERGI MEGA: S&P Gives 'B' Corp. Credit Rating; Outlook Positive


J A P A N

CITIBANK JAPAN: Moody's Affirms 'D+' BFSR; Outlook Negative
ELPIDA MEMORY: Creditors Seek to Unseal Technology Sale Documents


K O R E A

* KOREA: Moody's Says Banks Resilient to Household Debt Defaults


P H I L I P P I N E S

AMAN FUTURES: SEC Upholds Cease and Desist Order Over Scam
EXPORT & INDUSTRY: PDIC Declares Failed Bidding for Rehab


S I N G A P O R E

EXCEL ADVANCED: Creditors' Meetings Set for Nov. 9
EXCEL PRECISION: Creditors' Meetings Set for Nov. 9
GUAN BEE: Creditors' Meetings Set for Nov. 2
GUAN BEE: Creditors' Proofs of Debt Due Oct. 31
HENG FU: Creditors' Proofs of Debt Due Nov. 16


                            - - - - -


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


CITIGROUP PTY: Moody's Affirms 'C-' Standalone Assessment
---------------------------------------------------------
Moody's Investors Service affirms all its ratings on Citigroup
Pty Limited ("Citigroup P/L") and Citibank Korea Inc. but changed
those rating outlooks to negative from stable.

The announcement follows the revision of parent Citibank N.A.'s
rating outlooks that were previously stable to negative. The
outlook change on Citibank N.A was driven by the resignation of
Citigroup's Chief Executive Officer and Chief Operating Officer
and the risk that this change will negatively affect Citigroup's
ongoing efforts to install improved risk management practices
throughout the firm.

RATINGS RATIONALE - Citigroup Pty Limited

The negative outlook on Citigroup P/L is a direct result of the
outlook change on its parent, Citibank N.A and reflects Moody's
concerns regarding the impact that weakness at the parent might
have on the Australian subsidiary, given the interconnectedness
between the two entities.

Citigroup P/L has a strong dependence on its parent, given the
level of related party funding the bank receives from Citibank
N.A. There is also some degree of contagion risk because of
shared branding.

RATINGS RATIONALE - Citibank Korea

Similar to Citigroup P/L, Citibank Korea also does receive
funding from Citibank N.A. and its affiliates (9% of its total
funding at June 2012), in addition to shared reputational risk.

Given the interlinkages between the two subsidiaries and Citibank
N.A, any negative rating action on the parent will place downward
pressure on these subsidiaries. Conversely, the outlook on the
subsidiaries is likely to return to stable if the outlook on
Citibank N.A is revised to stable.

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology published in
June 2012.

Citigroup Pty Limited, headquartered in Sydney Australia had
assets of AUD18.2billion (approximately USD17.8 billion) at end-
2011.

Citibank Korea, headquartered in Seoul Korea, had assets of
KRW62 trillion (USD54 billion) at the end of June 2012.

The resultant ratings and actions are listed below:

Citigroup P/L -- All the ratings were affirmed: long-term local
currency senior unsecured debt rating of Baa1, short-term local
and foreign currency ratings of Prime-2, and standalone
assessment of C-/baa1. All the ratings carry negative outlooks.

Citibank Korea -- All the ratings were affirmed: global local and
foreign currency deposits of A2, short-term of Prime-1, and
standalone assessment of C-/baa2. All the ratings carry negative
outlooks.


FMG RESOURCES: Moody's Assigns 'Ba1' Rating to Sr. Sec. Facility
----------------------------------------------------------------
Moody's Investors Service has assigned a definitive Ba1 rating to
US$5 billion Senior Secured Syndicated Facility ('Term Loans')
entered into by FMG Resources (August 2006) Pty Ltd and FMG
America Finance Inc. The outlook is negative.

The loans rated are:

US$5.0 billion Senior Secured Facility due 2017.

The proceeds of the loans shall be used to refinance the existing
indebtedness, which includes all existing bank debt facilities
and Leucadia Notes, to pay related fees and expenses and for
general corporate purposes.

Ratings Rationale

FMG Resources (August 2006) Pty Ltd and FMG America Finance Inc,
both wholly owned subsidiaries of Fortescue Metals Group Limited
are the borrowers under the loans. The loans are guaranteed by
Fortescue Metals Group Limited and certain of its subsidiaries.
The loans are secured by essentially all assets of Fortescue and
certain subsidiaries and rank at least equally with all
indebtedness of the issuers and guarantors.

The definitive rating on this debt obligation confirms the
provisional rating assigned on October 2, 2012.

The principal methodology used in rating Fortescue Metals Group
Ltd and FMG Resources (August 2006) Pty Ltd was the Global Mining
Industry Methodology published in May 2009.

Fortescue Metals Group, based in Perth, is an iron ore producer
engaged in the exploration and mining of iron ore for export,
mainly to China.


GROUT PRO: 11 Franchisees Ink Deal With New Owners
--------------------------------------------------
SmartCompany reports that the new owners of the Grout Pro
Australia business have signed contracts with 11 existing
franchisees after taking over the business in June 2012 following
its liquidation.

According to the report, Geoff Biddle and Wayne Burns spent "less
than AUD1 million" buying the rights to operate the Australian
tile and grout restoration business with Biddle holding 75% of
the company and Burns the remaining 25%.

Mr. Biddle told SmartCompany the purchase by the pair saved Grout
Pro from liquidation and provided security to the existing
franchisees.

Grout Pro was established in New Zealand three-and-a-half years
ago and the New Zealand owners brought it to Australia in late
2010 using a master franchisee model, with one master franchise
in Perth and one in Brisbane.

SmartCompany relates that Mr. Biddle said the New Zealand owners
successfully operated the business for about 12 months, with the
master franchises signing up 22 franchisees "until it all fell
apart".

Mr. Biddle said he is limited in what he can say about the
downfall of the business due to pending legal proceedings between
the master franchisees and the former owners.

"Unfortunately, the owners actually liquidated the franchisor
company they had set up to limit their exposure," SmartCompany
quotes Mr. Biddle as saying.  "What that meant was that all the
existing 22 franchisees ended up with no agreement."


GUNNS LTD: Receivers Put Two Sawmills Up For Sale
-------------------------------------------------
ABC News reports that two Gunns Ltd sawmills in Tasmania and
South Australia are being put up for sale by the company's
receivers.

ABC News says receivers are planning to put another South
Australian sawmill on the market.  The sale of another timber
treatment plant near Mount Gambier was expected to be finalized
on Friday, the report relates.

According to ABC News, the Bell Bay sawmill in northern Tasmania
employs about 150 people and will be advertised nationally and
internationally.  Spokesman for receiver KordaMentha, Michael
Smith, is confident a buyer for the Bell Bay mill can be found,
the report notes.

The receivers have warned it could take a long time to determine
the future of the proposed Tamar Valley pulp mill project, the
report notes.  Mr. Smith said receivers are still discussing what
to do with the pulp mill, ABC News adds.

                        About Gunns Limited

Based in Launceston, Australia, Gunns Limited (ASX:GNS) --
http://www.gunns.com.au/-- is an hardwood and softwood forest
products company. It operates within three segments: Forest
products, Timber products and Other activities.  Gunns has about
645 employees in Tasmania, Victoria, South Australia and Western
Australia. Gunns Plantations Limited (GPL) is a Responsible
Entity that manages 21 registered agricultural Managed Investment
Schemes (MIS) on behalf of investors (growers).

On Sept. 25, 2012, the directors of Gunns Limited and its 35
entities, and the responsible entity of Gunns Plantations Limited
appointed Ian Carson, Daniel Bryant and Craig Crosbie of PPB
Advisory as Voluntary Administrators.

KordaMentha has also been appointed Receivers and Managers.


URBAN CONTRACTORS: Goes Into Administration; 60 Jobs in Limbo
-------------------------------------------------------------
ABC News reports that Urban Contractors, a major ACT contractor
working on the new ASIO building, has gone into administration
with more than 60 jobs in doubt.

The company went into voluntary administration after a legal
dispute with the lead contractor of the ASIO site, Lend Lease,
ABC News says.

According to the report, Urban Contractors managing director
Mick Burgess said the owners want to trade their way through the
financial difficulties.

"If it didn't go into administration then one of the creditors
might have got tired of not being paid and closed the company
up," the report quotes Mr. Burgess as saying.  "There was no
chance to fight the cause or keep going further on and trying to
work the company out, so it keeps going."

Urban Contractors has been operating as a landscaping and
earthworks company in Canberra for 30 years.


* AUSTRALIA: Moody's Mortgage Deliquencies Expected to Stabilize
----------------------------------------------------------------
Moody's Investors Service says Australian mortgage delinquencies
are expected to stabilize, after a slight decline over the last
12 months.

"In Australia, 30-plus day delinquencies have not fallen as much
as had been expected from a 100-basis point cut in the Reserve
Bank of Australia's (RBA) official cash rate between November and
May this year, because the banks have not passed onto home owners
the full extent of the rate reductions," says Arthur Karabatsos,
a Moody's Vice President and Senior Analyst.

"Nevertheless, over the next 12 months, residential mortgage
delinquencies in Australia will hold steady because we expect the
country's unemployment rate to remain in the low to mid-5% range.
Also any reductions in the cash rate will have limited benefits
for mortgage holders, if lenders do not reflect the full extent
of the reductions in their own home loan rates," adds
Mr. Karabatsos.

Karabatsos was speaking at the release of a new Moody's report
titled, "Australian Residential Mortgage Delinquencies to
Stabilize after a Slight Decline, but Regional Disparity
Persists".

Moody's has also released a second report titled, "Australian
Mortgage Delinquencies by Postcode -- 2012", which supplements
the first report.

"At the same time, disparity between the regions persists with
higher delinquencies in regions with higher exposures to tourism,
manufacturing and construction," says Mr. Karabatsos.

"Those with lower delinquencies have relatively more professional
and government workers, as well as workers in education."

In terms of the five major capital cities (those with populations
of more than one million), Brisbane and Sydney had the highest
30-plus day delinquencies of 2%, as of May. Perth was in third
place, with 1.7%. Melbourne and Adelaide had the lowest
delinquencies of 1.5%. These compare to the national average of
1.8%.

"Moody's analysis also shows that borrower equity is a stronger
driver of delinquencies than house price decreases," says
Karabatsos.

House prices in Lower Northern Sydney, for example, have suffered
the largest fall in Sydney of 14%, yet the area has the lowest
delinquencies in the city because of relatively high equity
levels.

The biggest threats to the Australian economy and mortgage
delinquencies are a deterioration in the euro area financial
crisis or a sudden and large contraction in growth in China.

Nonetheless, in comparison with other advanced economies,
Australia is well placed to react to such scenarios, as the RBA
can lower the official interest rate of 3.25%, which is high by
G20 standards. The government also has room to introduce fiscal
stimulus, as Australia has a low level of debt compared with
other developed economies.



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


CHINA EXECUTIVE: Kaien Liang Discloses 69.6% Equity Stake
---------------------------------------------------------
In a Schedule 13D filing with the U.S. Securities and Exchange
Commission, Kaien Liang, Pokai Hsu, Tingyuan Chen, et al.,
disclosed on Oct. 16, 2012, that they beneficially own 15,895,500
shares of common stock of China Executive Education Corp.
representing 69.61% of the shares outstanding.

On Oct. 16, 2012, the Reporting Persons and Beyond Extreme
Training Corp., a Nevada corporation recently formed by the
Reporting Persons, filed a Schedule 13E-3 with the SEC announcing
their intention to cause BETC to merge with the Company in a
"short-form" merger under Section 92A.180 of the Nevada Revised
Statute.  Pursuant to a Contribution Agreement by and between the
Reporting Persons and BETC dated as of Oct. 16, 2012, the
Reporting Persons agreed to contribute their shares of Common
Stock to BETC immediately prior to the Merger, upon the
completion of which BETC will hold approximately 90.06% of the
outstanding shares of Common Stock.  Upon the effective date of
the Merger, each share of Common Stock (other than shares held by
BETC and shares with respect to which dissenters' rights have
been properly exercised and not withdrawn or lost) will be
cancelled and automatically converted into the right to receive
$0.324 in cash, without interest.  The total amount of funds
expected to be required by BETC to pay the aggregate merger
consideration for the outstanding shares of Common Stock, and to
pay related fees and expenses, is estimated to be approximately
$896,000.  The Reporting Persons will provide the necessary
funding to BETC with cash on hand.  Because the Reporting Persons
intend to provide the necessary funding for the Merger, BETC has
not arranged for any alternative financing arrangements.  The
Merger will not be subject to any financing conditions.

A copy of the filing is available at:

                       http://is.gd/4CC1nC

                      About China Executive

Hangzhou, China-based China Executive Education Corp. is an
executive education company with operations in Hangzhou and
Shanghai, China.  It operates comprehensive business training
programs that are designed to fit the needs of Chinese
entrepreneurs and to improve their leadership, management and
marketing skills, as well as bottom-line results.

Albert Wong & Co, in Hong Kong, China, issued a "going concern"
qualification on the financial statements for the year ended
Dec. 31, 2011.  The independent auditors noted that the Company
has accumulated deficits as at Dec. 31, 2011, of $17,466,892
including net losses of $5,478,202 for the year ended Dec. 31,
2011, which raised substantial doubt about the Company's ability
to continue as a going concern.

The Company reported a net loss of US$5.47 million in 2011,
compared with a net loss of US$8.54 million in 2010.

The Company's balance sheet at March 31, 2012, showed US$10.14
million in total assets, US$27.32 million in total liabilities
and a US$17.17 million total stockholders' deficiency.


CHINA GUANGDONG: Moody's Says Issuer Rating Reflects 'Ba2' BCA
--------------------------------------------------------------
Moody's Investors Service has assigned an issuer rating and
senior unsecured bond rating of A3 to China Guangdong Nuclear
Power Holding Co. Ltd. The rating outlook is stable.

This is the first time Moody's has assigned a rating to CGNPC.

Ratings Rationale

CGNPC's A3 rating reflects it baseline credit assessment (BCA) of
ba2, and a five-notch uplift, given the likelihood of very high
support from the Chinese government (Aa3 positive), under Moody's
joint-default analysis approach for government-related issuers.

Moody's expectation of very high support is based on: 1) the
complete ownership of CGNPC by the government; 2) CGNPC's
strategic importance to China's economic development, including
the advancement of clean energy; and 3) the government's strong
history of support.

"CGNPC's BCA of ba2 is underpinned by its dominant position in
China's nuclear power industry, its large-scale and relatively
low-cost power-generation assets, stable cash flow, as well as
its good access to capital markets and banking credit. It will
also benefit from China's growing economy and strong demand for
power," says Ray Tay, Moody's Assistant Vice President and
Analyst.

"The success of the nuclear power programme is important to the
Chinese government because of the reputational and political
risks, and importance to the country's energy strategy. The
government has great incentive to ensure support for CGNPC, which
is leading the civilian nuclear power expansion programme," adds
Mr. Tay, who is also the Lead Analyst for CGNPC.

Under the country's current regulatory framework, CGNPC enjoys
operation under a favourable tariff regime, in tandem with
CGNPC's fuel security through ownership of mines and CGNPC's
base-load dispatch -- translate into strong profitability. CGNPC
also benefits from China's robust nuclear power sector regulatory
framework, that has adopted international safety standards and
closely monitors general operations and expansion progress to
ensure adherence to standards.

Despite these advantages, CGNPC faces certain challenges.

The company is currently expanding very aggressively, with
installed nuclear capacity set to more than quadruple by year
2015 to 24 gigawatts (GW) from 6 GW currently. This level of
expansion requires a significant amount of capex, which Moody's
expects would result in high debt/book capitalization in excess
of 70% and low RCF/debt of below 5% for the next few years.

In the absence of additional equity financing, Moody's expects
FFO/debt will be under further stress and decline to around 4% in
the next few years, while debt/capitalization will reach 75% in
2014.

As a nuclear power plant operator, CGNPC also faces inherent
liabilities in relation to the disposal of spent fuel,
decommissioning, and potential incidents.

In addition, the extent of its financial responsibility for these
matters has been defined by the current policy framework, which
provides a degree of predictability. The Chinese government will
also ultimately bear contingent liabilities, given its 100%
ownership of CGNPC.

The standalone ba2 rating also reflects structural subordination
at the holding company, as more debt is held at the operating
subsidiaries.

CGNPC has a sound liquidity profile, supported by its RMB25.3
billion in cash holdings and RMB12.6 billion in cash flow from
operations in 2011, as well as its easy access to the domestic
bond market and bank credit.

The rating outlook is stable, reflecting Moody's expectation
that: 1) CGNPC's capacity expansion will progress without delay
or significant cost overruns; 2) the policy and regulatory
environment will remain stable; and 3) the company will not
undertake aggressive overseas acquisitions.

Upward rating pressure is limited in the near term, as CGNPC will
continue to generate negative cash flow and face increased
leverage in the near term. However, successful commissioning of
the 15 reactors by 2015 and the resultant cashflow will benefit
the financial metrics and lend weight to an upgrade at that
point.

Its standalone rating would be downgraded if CGNPC: 1) incurs
material cost overruns or delays in its projects; 2) is unable to
obtain sufficient external funding to support capex or refinance
maturing debt; 3) faces operational problems that lead to
significant liabilities; or 4) sees erosion in profitability and
cash flow because of changes in government policy.

The credit metrics that Moody's would consider for a downgrade
include: adjusted debt/capitalization above 75%; FFO interest
cover below 2.2x; and/or RCF/debt below 3.4% on a sustained
basis.

The principal methodology used in rating China Guangdong Nuclear
Power Holding Co. Ltd. was the Regulated Electric and Gas
Utilities Industry Methodology published in August 2009.

China Guangdong Nuclear Power Holding Co. Ltd (CGNPC),
established in 1994, is one of China's two nuclear power plant
operators. It is the largest nuclear power company in China by
capacity, with 6 GW in operation and 18 GW under construction. As
of June 2012, it has an installed nuclear generation capacity of
6.12 gigawatts (GW) and non-nuclear capacity of 5.28 GW.
Including units approved and under construction, CGNPC is
projected to account for 58.55% of domestic nuclear capacity. For
the non-nuclear generating capacity, wind power accounts for
around 2.46 GW. In 2010, the company acquired Meiya Power Company
Ltd, an independent power producer in Asia.

CGNPC is wholly owned (81% direct and 19% indirectly) by the
State-owned Assets Supervision and Administration Commission
(SASAC) under China's State Council. It is directly supervised by
SASAC and is regulated by multiple government entities,
including: the National Development and Reform Commission (NDRC);
the State Electricity Regulatory Commission (SERC); the Ministry
of Environmental Protection (MEP); the National Nuclear Safety
Administration (NNSA); the National Nuclear Administration (NNA);
and the National Electricity Dispatch Center.


FRANSHION PROPERTIES: S&P Gives 'BB' Rating on USD Fixed Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'BB' issue rating
and 'cnBBB' Greater China regional scale rating to a proposed
issue of U.S.-dollar fixed-rate senior unsecured notes by
Franshion Investment Ltd. and guaranteed by Franshion Properties
(China) Ltd. (BB+/Stable/--; cnBBB+/--). "The ratings are subject
to our review of the final issuance documentation. The company
will mainly use the net proceeds from the proposed issuance for
refinancing," S&P said.

"The issue rating on the proposed notes is one notch lower than
the corporate credit rating to reflect our opinion that offshore
noteholders would be materially disadvantaged, compared with
onshore creditors, in the event of default. In our view, the
company's ratio of priority borrowings to total assets will
remain above our notching threshold of 15% for speculative-grade
debt," S&P said.

"The corporate credit rating on Franshion reflects the company's
'bb+' stand-alone credit profile (SACP) and our expectation that
Franshion will benefit from extraordinary government support for
its parent, Sinochem Hong Kong (Group) Co. Ltd. (BBB/Stable/--;
cnA/--). In our view, Franshion's property business is a
strategically important, but not core, business of its parent. We
expect Franshion to remain a significant profit contributor to
its parent over the next two to three years," S&P said.

"Franshion's SACP reflects the company's high project
concentration, limited geographic diversification, substantial
capital spending needs, and volatile financial performances. The
company's recurring income from property leasing and hotel
operations, the high quality of its leasing and development
assets, and good execution record temper these weaknesses. We
assess Franshion's business risk profile to be 'fair' and its
financial risk profile as 'significant,' as our criteria define
these terms," S&P said.

"The stable outlook reflects our expectation that Franshion's
liquidity will be 'adequate,' as defined in our criteria, and the
company will maintain good financial flexibility. We anticipate
the company will modestly improve its capital structure in the
next year due to satisfactory property sales. Nevertheless, its
leverage will likely remain high compared with similarly rated
peers'. We believe Franshion's SACP has no headroom for
additional debt. The SACP also has limited margin for weaker
property sales, property delivery, and profit margin than we
expect," S&P said.

"Franshion's results for the first half of 2012 were weak due to
the timing of project deliveries and revenue recognition. We
expect the company's results to improve as it recognizes more
property sales in the second half of the year. Full-year revenue
could reach Hong Kong dollar (HK$) 14 billion in our base case
for 2012, compared with HK$6.6 billion in 2011. We estimate debt-
to-EBITDA ratio to improve to 5.0x-6.0x from more than 7.0x in
2011, and EBITDA interest coverage to rise to above 3.0x from
2.5x in 2011," S&P said.


HAWKER BEECHCRAFT: Sale to Chinese Firm Unravels
------------------------------------------------
The Wall Street Journal's Mike Spector and Anna Prior report that
people familiar with the discussions said negotiations for
China's Superior Aviation Beijing Co. to buy the bulk of Hawker
Beechcraft Inc. collapsed amid concerns the deal wouldn't pass
muster with a U.S. government panel and other cross-cultural
complications.

Superior has offered to buy Hawker's corporate jet and propeller
plane operations out of bankruptcy for $1.79 billion.  According
to WSJ, the sources said Superior encountered difficulties
separating Hawker's defense business from those units in a way
that would make both sides comfortable the deal would get U.S.
government clearance.  The sources told WJS the the defense
operations were integrated in various ways with Hawker's civilian
businesses, especially the propeller plane unit, in ways that
proved difficult to untangle.  At one point, the sources said,
Hawker suggested Superior delay taking ownership of certain
assets that had ties to the defense business while they were
"cleansed," but Superior didn't get comfortable with the
proposal.

According to the report, people familiar with the matter also
said advisers in the U.S. had trouble negotiating with Chinese
representatives unfamiliar with U.S. finance and bankruptcy law,
and translating documents also made discussions more difficult.
Hawker also wanted an additional deposit of funds from Superior
to help it run its struggling corporate jet business if talks
were going to continue for several more weeks or months, the
people said.  Hawker received a nonrefundable $50 million deposit
from Superior earlier this year as insurance against deal
discussions collapsing, so Superior faced the prospect of having
to spend more to keep talks going.

Hawker disclosed the failed sale talks on Thursday and said it
planned to emerge from bankruptcy-court protection as an
independent company.

"We made the decision to proceed with the standalone plan of
reorganization after determining that, despite our best efforts,
the proposed transaction with Superior could not be completed on
terms acceptable to the company," Hawker Chief Executive Robert
S. Miller said in a statement on Thursday without elaborating on
the specific difficulties the two sides encountered, according to
WSJ.

He added the company was "disappointed" the two sides didn't
reach a deal, but emphasized the $50 million Hawker received from
Superior and said the firm would be in a "strong operational and
financial position."

WSJ notes a sale to Superior would have required approval from
the Committee on Foreign Investment in the U.S., a government
panel that reviews foreign purchases of American businesses.
Superior planned to avoid buying Hawker's defense business, which
houses military technology and sells military training and attack
aircraft to U.S. and foreign governments.

                      About Hawker Beechcraft

Hawker Beechcraft Acquisition Company, LLC, headquartered in
Wichita, Kansas, manufactures business jets, turboprops and
piston aircraft for corporations, governments and individuals
worldwide.

Hawker Beechcraft reported a net loss of $631.90 million on
$2.43 billion of sales in 2011, compared with a net loss of
$304.30 million on $2.80 billion of sales in 2010.

Hawker Beechcraft Inc. and 17 affiliates filed for Chapter 11
reorganization (Bankr. S.D.N.Y. Lead Case No. 12-11873) on May 3,
2012, having already negotiated a plan that eliminates $2.5
billion in debt and $125 million of annual cash interest expense.

The plan will give 81.9% of the new stock to holders of $1.83
billion of secured debt, while 18.9% of the new shares are for
unsecured creditors.  The proposal has support from 68% of
secured creditors and holders of 72.5% of the senior unsecured
notes.

Hawker is 49%-owned by affiliates of Goldman Sachs Group Inc. and
49%-owned by Onex Corp.  The Company's balance sheet at Dec. 31,
2011, showed $2.77 billion in total assets, $3.73 billion in
total liabilities and a $956.90 million total deficit.  Other
claims include pensions underfunded by $493 million.

Hawker's legal representative is Kirkland & Ellis LLP, its
financial advisor is Perella Weinberg Partners LP and its
restructuring advisor is Alvarez & Marsal.  Epiq Bankruptcy
Solutions LLC is the claims and notice agent.

Sidley Austin LLP serves as legal counsel and Houlihan Lokey
Howard & Zukin Capital Inc. serves as financial advisor to the
DIP Agent and the Prepetition Agent.

Wachtell, Lipton, Rosen & Katz represents an ad hoc committee of
senior secured prepetition lenders holding 70% of the loans.

Milbank, Tweed, Hadley & McCloy LLP represents an ad hoc
committee of holders of the 8.500% Senior Fixed Rate Notes due
2015 and 8.875%/9.625% Senior PIK Election Notes due 2015 issued
by Hawker Beechcraft Acquisition Company LLC and Hawker
Beechcraft Notes Company.  The members of the Ad Hoc Committee --
GSO Capital Partners, L.P. and Tennenbaum Capital Partners, LLC -
- hold claims or manage accounts that hold claims against the
Debtors' estates arising from the purchase of the Senior Notes.
Deutsche Bank National Trust Company, the indenture trustee for
senior fixed rate notes and the senior PIK-election notes, is
represented by Foley & Lardner LLP.

An Official Committee of Unsecured Creditors appointed in the
case has selected Daniel H. Golden, Esq., and the law firm of
Akin Gump Strauss Hauer & Feld LLP as legal counsel.



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


CIJ CREATION: Creditors Get 100% Recovery on Claims
---------------------------------------------------
CIJ Creation Industries Limited declared the first and final
preferential dividend to its creditors on or after Nov. 2, 2012.

The company paid 100% for preferential claims.

The company's liquidators are:

         Tai Hay Yuen
         Leung Man Kay
         21/F, Chinachem Tower
         34-37, Connaught Road
         Central, Hong Kong


COMPACT CONSTRUCTION: Creditors' Proofs of Debt Due Nov. 9
----------------------------------------------------------
Creditors of Compact Construction Engineering Company Limited,
which is in members' voluntary liquidation, are required to file
their proofs of debt by Nov. 9, 2012, to be included in the
company's dividend distribution.

The company's liquidator is:

          Leung King Wai William
          Unit 1, 11th Floor
          Beautiful Group Tower
          77 Connaught Road
          Central, Hong Kong


FINESTYLE MARITIME: Stephen Liu Steps Down as Liquidator
--------------------------------------------------------
Stephen Liu Yiu Keung stepped down as liquidator of Finestyle
Maritime Services Limited on Oct. 9, 2012.


FINE WEALTHY: Court to Hear Wind-Up Petition on Dec. 5
------------------------------------------------------
A petition to wind up the operations of Fine Wealthy Limited will
be heard before the High Court of Hong Kong on Dec. 5, 2012, at
9:30 a.m.

Lam Yu Sing filed the petition against the company on Sept. 27,
2012.

The Petitioner's solicitors are:

          Rowland Chow, Chan & Co
          Unit 2101, 21st Floor
          Malaysia Building
          No. 50 Gloucester Road
          Wanchai, Hong Kong


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

York International (Northern Asia) Limited filed the petition
against the company on Sept. 11, 2012.

The Petitioner's solicitors are:

          W.K. To & Co.
          11th & 12th Floors, Wheelock House
          20 Pedder Street
          Central, Hong Kong


INC OWNERS OF 100: Court to Hear Wind-Up Petition on Nov. 21
------------------------------------------------------------
A petition to wind up the operations of The Incorporated Owners
of 100, Caine Road, Hong Kong will be heard before the High Court
of Hong Kong on Nov. 21, 2012, at 9:30 a.m.

Wonder Cruise Group Limited filed the petition against the
company on Sept. 19, 2012.

The Petitioner's solicitors are:

          Mayer Brown JSM
          18th Floor, Prince's Building
          10 Chater Road, Central
          Hong Kong


INC OWNERS OF WAH: Court to Hear Wind-Up Petition on Nov. 21
------------------------------------------------------------
A petition to wind up the operations of The Incorporated Owners
of Wah Yuen Building, Hoi Wan Street will be heard before the
High Court of Hong Kong on Nov. 21, 2012, at 9:30 a.m.

Novel Ray Limited filed the petition against the company on
Sept. 19, 2012.

The Petitioner's solicitors are:

          Mayer Brown JSM
          18th Floor, Prince's Building
          10 Chater Road, Central
          Hong Kong


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

Li Lok Ki filed the petition against the company on Sept. 24,
2012.


NETWORK CN: Inks Separate Agreements with Lek Pak and Windcom
-------------------------------------------------------------
Yi Gao Shanghai Advertising Limited, a wholly owned subsidiary of
Network CN Inc., on Oct. 16, 2012, entered into a co-operation
agreement with Lek Pak Company Limited.  The agreement grants Yi
Gao the exclusive right to operate the 276 square meter
advertising area located on the first floor of the Union Building
at the entrance of Zhuhai sub-zone of Zhuhai-Macau Cross Border
Industrial Zone for a 34-month period ending July 31, 2015.  The
Company agreed to pay to Lek Pak a fixed annual fee of
RMB3,974,400 (approximately US$624,000) together with a variable
fee of 80% of after-tax revenue, net of the fixed annual fee.

On same date, Yi Gao entered an agreement with Windcom
Advertising and Trading, pursuant to which Yi Gao agreed for
Windcom to operate the Area for the same 34 month period ending
July 31, 2015.  Windcom agreed to pay to Yi Gao an amount equal
to the fixed fee Yi Gao owes under the Lek Pak agreement, or
RMB3,974,400, together with a variable fee at 90% of after-tax
revenue, net of the fixed annual fee.  The Company anticipates
that it will begin to generate advertising revenues immediately.

The Company is actively exploring new media projects such as the
Lek Pak and Windcom agreements in order to provide a wider range
of media and advertising services, rather than focusing primarily
on LED media.  The Company has identified several such potential
projects which it intends to aggressively pursue in the coming
year.

The agreements are subject to the laws of the People's Republic
of China and the ability of Yi Gao and Windcom to publish
advertisements is subject to applicable rules and regulations in
China regarding advertising generally, and public out-of-home
advertisements in particular.

                         About Network CN

Causeway, Hong Kong-based Network CN Inc. operates in one single
business segment: Media Network, providing out-of home
advertising services.

As reported in the TCR on April 18, 2012, Baker Tilly Hong Kong
Limited, in Hong Kong SAR, expressed substantial doubt about
Network CN's ability to continue as a going concern, following
the Company's results for the fiscal year ended Dec. 31, 2011.
The independent auditors noted that the Company has incurred net
losses of $2,102,548, $2,603,384 and $37,383,361 for the years
ended Dec. 31, 2011, 2010, and 2009, respectively.  Additionally,
the Company used net cash in operating activities of $388,278,
$1,552,403 and $5,428,273 for the years ended Dec. 31, 2011,
2010, and 2009, respectively.  As of Dec. 31, 2011, and 2010, the
Company recorded stockholders' deficit of $5,056,418 and
$3,524,536 respectively.

The Company's balance sheet at June 30, 2012, showed $1.03
million in total assets, $3.72 million in total liabilities, and
a $2.69 million total stockholders deficit.


SIMS (H.K.): Court to Hear Wind-Up Petition on Nov. 28
------------------------------------------------------
A petition to wind up the operations of Sims (H.K.) Limited will
be heard before the High Court of Hong Kong on Nov. 28, 2012, at
9:30 a.m.

Bank of India filed the petition against the company on Sept. 25,
2012.

The Petitioner's solicitors are:

          Wilkinson & Grist
          6th Floor, Prince's Building
          10 Chater Road
          Central, Hong Kong


SINO PEAK: Creditors Get 0.440% Recovery on Claims
--------------------------------------------------
Sino Peak Finance Limited declared the supplementary dividend to
its creditors on or after Oct. 19, 2012.

The company paid 0.440% for supplementary claims.

The company's liquidator is:

         Alan K F Fong
         10th Floor, Queensway Government Offices
         66 Queensway
         Hong Kong


SNE ENGINEERING: Court to Hear Wind-Up Petition on Oct. 31
----------------------------------------------------------
A petition to wind up the operations of SNE Engineering Company
Limited will be heard before the High Court of Hong Kong on
Oct. 31, 2012, at 9:30 a.m.

Chim Kee Machinery Company Limited filed the petition against the
company on Aug. 24, 2012.

The Petitioner's solicitors are:

          Tsui & Co
          Unit 2001-3, 20/F, Kwan Chart Tower
          6 Tonnochy Road, Wanchai
          Hong Kong


SOUTH CHINA: Court to Hear Wind-Up Petition on Nov. 14
------------------------------------------------------
A petition to wind up the operations of South China Cosmetics
(HK) Limited (formerly known as Paua Management Limited and
Harvest Moon Trading Limited) will be heard before the High Court
of Hong Kong on Nov. 14, 2012, at 9:30 a.m.

Cosmetics Limited filed the petition against the company on
Sept. 11, 2012.

The Petitioner's solicitors are:

          Brandt Chan & Partners
          Suite 3201, Jardine House
          1 Connaught Place
          Central, Hong Kong


TECHWELL ENGINEERING: Court to Hear Wind-Up Petition on Nov. 21
---------------------------------------------------------------
A petition to wind up the operations of Techwell Engineering
Limited will be heard before the High Court of Hong Kong on
Nov. 21, 2012, at 9:30 a.m.

Royal Bank of Scotland N.V., Hong Kong Branch (formerly known as
ABN Amro Bank N.V., Hong Kong Branch) filed the petition against
the company on Sept. 18, 2012.

The Petitioner's solicitors are:

          King & Wood Mallesons
          13/F, Gloucester Tower
          The Landmark
          15 Queen's Road
          Central, Hong Kong


TUNGDA INNOVATIVE: Court to Hear Wind-Up Petition on Nov. 7
-----------------------------------------------------------
A petition to wind up the operations of Tungda Innovative
Lighting Holdings Limited will be heard before the High Court of
Hong Kong on Nov. 7, 2012, at 9:30 a.m.

Steadfast Mountain Limited filed the petition against the company
on Sept. 4, 2012.

The Petitioner's solicitors are:

          W.K. To & Co.
          11th & 12th Floors, Wheelock House
          20 Pedder Street
          Central, Hong Kong


UNIVERSAL BUILDING: Court to Hear Wind-Up Petition on Dec. 5
------------------------------------------------------------
A petition to wind up the operations of Universal Building
Materials Supply Limited will be heard before the High Court of
Hong Kong on Dec. 5, 2012, at 9:30 a.m.

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

The Petitioner's solicitors are:

          Gallant Y. T. Ho & Co.
          5th Floor, Jardine House
          No. 1 Connaught Place
          Central, Hong Kong



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


AASCAR FILM: ICRA Rates INR10cr Fund Based Loan at '[ICRA]B'
------------------------------------------------------------
ICRA has assigned a long-term rating of '[ICRA]B' to the INR10.00
crore fund based facilities of Aascar Film Private Limited.

                            Amount
   Facilities              (INR Cr)       Ratings
   ----------              ---------      -------
   Fund based facilities     10.00        [ICRA]B assigned

The assigned rating factors in the three decade long experience
of the promoters in the field of movie content production,
distribution and exhibition, the healthy track record of AFPL in
delivering successful box office hits in the past and the
association of the production house with some of the leading
south India based artists/directors which provides comfort on the
viability of the business. The ratings are, however, constrained
by the Company's present weak financial profile characterized by
aggressive capital structure on account of debt availed to fund
movies, and by stretched coverage indicators owing to its
relatively volatile and thin profitability. The profitability of
AFPL's operations is contingent on the vagaries of box-office
performance which in turn is dependent on the content and mood
risks involved. The lumpiness associated with the industry's cash
flows further impacts the Company's cash flows in the event of
delays in movie releases owing to various external factors.
Furthermore, the industry is exposed to the persistent problem of
piracy and other event based risks which have an adverse impact
on the financial profile of players including AFPL, although on-
going industry wide efforts to minimize the same have aided in
the mitigation of these risks to an extent.

Aascar Film Private Limited is engaged in the business of
producing, distributing and exhibiting varied movie content. The
Company is promoted by Mr. V Ravichandran who is a leading
producer in the Tamil Nadu movie industry. The Company produced
its first movie in the year 2000 and since then, has produced 24
movies and distributed over 200 movies. AFPL also owns five
theatres and operates an additional fifteen leased theatres in
Tamil Nadu.

Recent Results

For the financial year 2011-12, the Company reported a net profit
of INR1.7 crore on an operating income of INR61.4 crore as
against a net profit of INR0.1 crore on an operating income of
INR7.6 crore during 2010-11.


ACCELERATED FREEZE: ICRA Upgrades Rating on INR3.67cr Loan to 'C'
----------------------------------------------------------------
ICRA has revised the long term rating from '[ICRA]D' to '[ICRA]C'
for INR 3.67 crore term loan facility of Accelerated Freeze
Drying Company Limited.  ICRA has also revised (assigned for
enhanced facilities) the short term rating of [ICRA]D to [ICRA]A4
for the short term fund based facilities of INR 28.93 crore and
USD 4.5 million (enhanced from INR 26.50 crore) and INR 1.90
crore short term non fund based facilities of AFDC.

                             Amount
   Facilities               (INR Cr)     Ratings
   ----------               ---------    -------
   Term Loans                  3.67      Revised from [ICRA]D
                                         to [ICRA]C

   Short Term Fund based      28.93      Revised from '[ICRA]D'
   facilities                            to '[ICRA]A4' (assigned
                                         for enhanced facilities)

   Short Term Non-fund         1.90      Revised from [ICRA]D to
   based facilities                      [ICRA]A4

The rating revision is on the back of regularization of debt
servicing by the Company. However, the ratings remain constrained
owing to company's stretched capital structure due to continued
high working capital intensity of its operations, susceptibility
of margins to steep fluctuations in raw material prices and
exchange rate movements and the Company's small scale of
operations restricting benefits from scale economics.

The ratings also consider the experience of promoters in food
processing business and presence of foreign collaborators like
Nissin Foods and Itochu Corporation, who consume ~60-70% of
AFDC's output, as shareholders in the Company (~48% stake).
Additionally, ICRA also takes note of the company's efforts to
increase sales to existing and new customers, launch new
products, lower procurement costs and rationalize its collection
cycle. However, the translation of these efforts into actual
improvement in margin and working capital intensity remains to be
seen and will be critical to improve the Company's credit
profile.

                     About Accelerated Freeze

Accelerated Freeze Drying Company Limited was incorporated in
1986 in Cochin, Kerala. The Company is promoted by Amalgam Foods
Limited, Cochin (52% shareholding) in collaboration with Nissin
Foods, Hong Kong (38% shareholding) and Itochu Corporation, Japan
(10% shareholding). AFDC processes and exports freeze-dried
seafood and spices. The Company has two plants in Cochin and
Bangalore with the former mainly processing seafood and partly
pepper, whereas the Bangalore plant processes herbs, spices and
vegetables.

Recent Results

For fiscal 2011-12, AFDC has reported profit after tax (PAT) of
INR1.8 cr on an operating income (OI) of INR65.4 cr compared to
PAT and OI of INR1.5 cr and INR62.9 cr respectively in preceding
fiscal.


AL-RKAYAN APPARELS: ICRA Puts 'B+' Rating on INR14.5cr Loans
------------------------------------------------------------
ICRA has assigned a long term rating of '[ICRA]B+' for INR 14.50
Crore1 long term fund based facilities of Al-Rkayan apparels &
Exports Private Limited.

                         Amount
   Facilities           (INR Cr)      Ratings
   ----------           ---------     -------
   Cash Credit            10.00       [ICRA]B+ assigned
   Term Loan               4.50       [ICRA]B+ assigned

The assigned rating takes into account the long experience of
promoters in the denim manufacturing industry and strong growth
in revenues driven by its own brand sales. The rating also
favorably factors in the strong tie-ups of Al-Rkayan with its key
customers, which include established denim brands, as their
contract manufacturer.

The rating is, however, constrained by the highly competitive
apparel industry, leveraged capital structure and modest
profitability. The company has witnessed modest to negative cash
flows from operations in the past owing to low margins and
increased working capital requirement to support high growth. The
company's tight liquidity position is further illustrated by its
almost-full utilisation (95%-100%) of the fund based working
capital limits during the last twelve months, which along with
term loans availed for capital expenditures have resulted in a
leveraged capital structure and increasing borrowing costs. The
company's scale of operations remains small, limiting economies
of scale. The rating is also constrained by the high volatility
in cotton yarn prices which exert further pressure on margins,
since Al-Rkayan primarily caters to a price sensitive semi-
urban/rural segment through its in-house brand. Sales and
inventory remain exposed to macro-economic slowdown and inherent
industry risk of obsolescence owing to constantly changing
fashion trends.

                          About Al-Rkayan

Al-Rkayan was incorporated in 2004 by Mr. Prabhakar Shetty,
Mr.Shahid Rafi and Mr. Abdul Rahman S Al-Rkayan. The promoters
commenced the business with contract manufacturing for major
denim brands in the domestic market. Towards the end of 2008-09,
Al-Rkayan launched its own denim brand Leonidas, aimed at the
price-sensitive and fashion conscious youth segment (16 to 40
years age group). . Al-Rkayan has also in the current year
launched two more brands- Leslie (for capris and three-fourths)
and LD Active (bottom wear for women).


H.P. MADHUKAR: ICRA Rates INR5.5cr Overdraft '[ICRA]B'
------------------------------------------------------
ICRA has assigned '[ICRA]B' rating to the INR5.50 crore of fund
based limits of H.P. Madhukar & Co.  ICRA has also assigned
'[ICRA]A4' rating to the INR 4.55 crore non fund based limits of
the Company.

                         Amount
   Facilities           (INR Cr)      Ratings
   ----------          ---------      -------
   Overdraft             5.50         [ICRA]B
   Bank guarantee        4.55         [ICRA]A4

The assigned ratings take into account HPM's long track record of
over 25 years in construction industry, its established clientele
and repeat business from its customers. However, the ratings are
constrained by the entity's modest scale of operations, its high
geographical concentration with operations primarily in Hubli,
Karnataka, its exposure to raw material price fluctuation risk
and the intensely competitive nature of the industry. The
assigned ratings also reflect the entity's weak profitability and
its legal status as a proprietorship concern which exposes it to
several risk including limited ability to raise capital and risk
of dissolution upon the death/retirement/insolvency of the
proprietor. Further, the recent restriction of Government of
Karnataka on operations of crushing units in unsafe zone has
disrupted HPM's operation to certain extent leading to an
increase in its cost structure and elongation of working capital
cycle. Due to this, the company is also facing strained liquidity
condition as also reflected by the overutilization of its working
capital limits during past few months,

                      About H.P. Madhukar

H.P. Madhukar, a proprietorship concern in Hubli, Karnataka, was
promoted by Mr. Madhukar in 1986. HPM is engaged in civil
construction and undertakes government projects for road
development, irrigation, beautification of small towns etc in
Karnataka region.

Mr. Madhukar is a civil engineer and was registered as a Class-
III contractor in 1986. In 1990, he was registered as Class- I
contractor, within four years from inception of HPM. The major
clients of the firm include Krishna Bhagya Jala Nigam Ltd,
National Highway Department, Hubli Dharwad Municipal Corporation,
Public work department.

Recent Results

The Company registered an operating income (OI) of INR 24.5 crore
and a net profit of INR 0.65 crore in FY12 (Unaudited). During
FY11, the OI and PAT of the firm stood at INR32.4 crore and
INR0.59 crore, respectively.


K. K. HOMES: ICRA Cuts Rating on INR10cr Loan to '[ICRA]D'
----------------------------------------------------------
ICRA has revised downward the long term rating assigned to the
INR10.00 crore term loan facilities of K. K. Homes from
'[ICRA]BB' to '[ICRA]D'.

                            Amount
   Facilities              (INR Cr)      Ratings
   ----------              ---------     -------
   Fund Based Limits-        10.00       [ICRA]D downgraded
   Term Loans

The rating action factors in the delays by KKH in meeting its
debt service obligations in a timely manner.

KKH was established as a partnership firm in 2005. The current
partners of the firm are Mr. J. N. Kumar, Mr. Deepak Kapoor,
Mr. Keshab Kumar Dalmia and Mr. Madhab Kumar Dalmia. The
promoters have long experience in the field of commercial and
industrial constructions. KKH is in the process of building a
commercial complex containing shopping mall, multiplex,
restaurant, food court and gaming zone under the name of "City
Centre, Sambalpur" at the Sambalpur city in Orissa. This is the
first and only project taken up by the firm.  A portion of the
leasable space in the shopping mall has already been occupied by
tenants.


KINGFISHER AIRLINES: Fails to Persuade Workers to Return to Work
----------------------------------------------------------------
Anirban Chowdhury at Dow Jones' DBR Small Cap reports that
Kingfisher Airlines Ltd.'s operations will remain suspended
beyond Oct. 20, Chief Executive Sanjay Aggarwal said Wednesday,
in an indication that renewed talks between senior management and
striking employees have failed to find a breakthrough.

                    About Kingfisher Airlines

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd., serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops.  It maintains bases in major cities such as Delhi and
Mumbai.

                           *     *     *

Kingfisher Airlines lost money six years in a row, accumulating
net debt of INR77.2 billion (US$1.74 billion) as of March 2010,
according to data compiled by Bloomberg.

As reported in the Troubled Company Reporter-Asia Pacific on
Sept. 5, 2012, The Times of India said Kingfisher Airlines has
now been given a reality check by its auditors in the company's
annual report 2011-12.  The company had current liabilities,
including borrowings and trade payables of INR8,436 crore,
against current assets of INR1,618.8 crore at the end of
March 2012.  According to TOI, the Vijay Mallya-promoted company
has defaulted in repayment of loans to banks and financial
institutions, for which several lenders have had to take a hit by
setting aside more funds, with overdues estimated at nearly
INR800 crore at the end of March 2012.


KUMARAGIRI TEXTILES: ICRA Cuts Rating on INR10.62cr Loans to 'C'
----------------------------------------------------------------
ICRA has revised the long-term rating outstanding on the INR6.62
crore1 term loan facilities and INR4.00 crore fund based
facilities of Kumaragiri Textiles Limited to '[ICRA]C' from
'[ICRA]B.'  The short-term rating on the INR4.26 crore non fund
based facilities has been re-affirmed at '[ICRA]A4'.

                              Amount
   Facilities                (INR Cr)     Ratings
   ----------                ---------    -------
   Term loan facilities         6.62      [ICRA]C/downgraded from
                                          [ICRA]B

   Fund based facilities        4.00      [ICRA]C/downgraded from
                                          [ICRA]B

   Non-fund based facilities    4.26      [ICRA]A4/re-affirmed

The revision in KTL's long term rating is on account of the sharp
deterioration in the Company's financial profile (lower than
anticipated) following huge losses reported during 2011-12, owing
to sluggish demand for yarn, steep fall in yarn realisations and
escalation in operating costs driven by persistent power issues
in Tamil Nadu (TN). On account of these factors, the Company's
financial profile is presently characterised by accumulated
losses, weak coverage indicators and stretched debt protection
metrics. The ratings further consider KTL's small scale of
operations, which restrict scale economies and the intense
competition prevalent in the spinning industry which restricts
the Company's pricing flexibility to an extent. The ratings,
however, continue to factor in the experience of promoters in the
industry spanning over three decades and the recent improvement
witnessed in cotton yarn demand and realisations, which is
expected to aid the Company in improving its financial profile
over the medium term. Any sharp volatility in input prices or
further deterioration of the power situation in TN, however, pose
key downside risks.

Kumaragiri Textiles Limited, incorporated in the year 1980, is
engaged in the production of cotton yarn primarily in 66s to 82s
count range. The Company has an installed capacity of 28,224
spindles and 600 rotors with its manufacturing facility located
at Dharmapuri, Tamil Nadu. KTL had installed an 800 KW windmill
in Tamil Nadu for captive power consumption during 2006-07. KTL
is closely held by the promoter (Mr.P. Palaniappan) and their
relatives / friends.

Recent Results

For the financial year 2011-12, the entity reported net loss of
INR 7.6 crore on an operating income of INR 32.7 crore as against
a net profit of INR 2.4 crore on an operating income of INR 41.2
crore for the financial year 2010-11.


MANIAM PROPERTIES: ICRA Cuts Rating on INR100cr Loan to 'D'
-----------------------------------------------------------
ICRA has revised the long-term rating of '[ICRA]B+' assigned to
the INR 100 crore fund based limits of Maniam Properties Private
Limited to '[ICRA]D'.

The rating revision factors in instances of delays in debt
servicing due to slower-than-expected monetization through sale
of space at the company's Pink Square mall at Jaipur.

MPPL is a joint venture (JV) between Kshitij Venture Capital
Fund, Mani Square Pvt. Ltd. and Salarpuria Properties Pvt Ltd
whose shareholdings in the project are 40%, 35% and 25%
respectively. KVCF is a domestic retail-focused real estate fund
whose corpus is being invested in developing eleven malls across
India. MPPL owns and operates the Pink Square Mall at Govind
Marg, Jaipur.


RAMNIKLAL & SONS: ICRA Cuts Rating on INR8cr Loan to '[ICRA]B'
--------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR 07.75 Crore
long-term fund based facilities of Ramniklal & Sons.  ICRA has
also assigned an '[ICRA]A4' rating to INR 2.00 Crore short term
fund based facilities of Ramniklal & Sons. The unallocated amount
of INR 0.75 crore has been rated by ICRA on both the scales at
[ICRA]B and [ICRA]A4.

                                  Amount
   Facilities                    (INR Cr)    Ratings
   ----------                    ---------   -------
   LT Scale Fund Based Limits      7.75      [ICRA]B assigned

   ST Scale Fund Based Limits      2.00      [ICRA]A4 assigned

   Unallocated Amount              0.75      [ICRA]B/ICRA]A4
                                              assigned

The ratings are constrained by the firm's small scale of
operations; weak financial profile characterised by leveraged
capital structure; stretched liquidity position due to
sluggishness in realization of receivables; susceptibility of
profit margins to exchange rate risks; risks of capital
withdrawals inherent in partnership firms and intense competitive
pressure in the fragmented gems & jewellery industry from players
in the organized and unorganized sector. However the ratings
favourably factor in the significant experience of the promoters
in the gold and diamond jewellery business and established
association with various customers.

Incorporated in 1998, Ramniklal & Sons is a partnership firm
involved in manufacturing of gold, silver and diamond studded
jewellery. The firm deals in 14 to 18 carat diamond studded and
up to 24 carat gold jewellery. The company has a registered
office within the showroom based in Mumbai from where the overall
business operations and sales activities are controlled.

Recent Results

R&S recorded a net profit of INR0.26 crore on an operating income
of INR25.42 crore for the year ending March 31, 2011 and a net
profit of INR0.39 crore on an operating income of INR34.54 crore
for the year ending March 31, 2012 (as per the provisional
figures disclosed by the management).


SARTHAK ISPAT: ICRA Assigns '[ICRA]B' Rating to INR29.5cr Loans
---------------------------------------------------------------
ICRA has assigned an '[ICRA]B' rating to the INR 12.50 crore term
loan and INR 17.00 crore fund-based bank facilities of
Sarthak Ispat Private Limited.  ICRA has also assigned an
'[ICRA]A4'A four) rating to the INR 0.50 crore non-fund based
bank facilities of SIPL.

                            Amount
   Facilities              (INR Cr)      Ratings
   ----------              ---------     -------
   Term Loan                 12.50       [ICRA]B; assigned

   Fund-Based Limits
   (Cash Credit)             17.00       [ICRA]B; assigned

   Non-Fund Based Limits      0.50       [ICRA]A4; assigned

The assigned ratings take into consideration the successful
commissioning of the steel rolling mill (SRM) by the company, and
its profitable operations in the first year post commissioning.
However, the ratings are constraint by the ongoing weakness and
the cyclicality associated with the steel industry, which is
likely to keep SIPL's profitability and cash flows volatile; its
lack of operating track record across cycles, relatively small
scale of operations; a high gearing and high working capital
intensity of SIPL's operations, which could impact its liquidity
position.

The plant of the company is located at the Urla Industrial Area
of Raipur (Chattisgarh). The company manufactures medium and
heavy steel structural products such as angles, beams, channels,
joists and H-beams. Subsequent to the commissioning of its
rolling mill in December 2011, the SRM of the company produced
8,707 MT of steel products till the end of March 2012. During the
first three month in 2012-13, the company produced 11,001 MT of
steel products.

The company reported an operating income of INR 28.86 crore
during the period Dec 2011 to Mar 2012. The capital structure of
the company has remained aggressive as reflected by a gearing of
2.11 time as on 31 March 2012 on account of the term loan availed
for the SRM. Consequently, the debt coverage indicators have
remained at depressed levels as reflected by an interest coverage
of 2.09 times, total debt relative to OPBDIT of 4.77 times and
net cash accruals relative to total debt of 10.03% in 2011-12.

SIPL was incorporated in 2007 by the Raipur based Mr. Vijay Kumar
Garg. The plant of the company is located at Raipur (Chattisgarh)
and has a rolling mill, with an annual production capacity of
75,000 MT. The company manufactures medium and heavy steel
structural products such as angles, beams, channels, joists and
H-beams.

Recent Results

In 2011-12, as per the audited financial statements, SIPL
reported an operating income of INR28.86 crore and a net profit
of INR0.21 crore.


SAUMYA DSM: ICRA Cuts Rating on INR98.65cr Loans to '[ICRA]D'
-------------------------------------------------------------
ICRA has revised the rating assigned to the INR98.65 crore term
loans of Saumya DSM Infratech Limited from '[ICRA]B' to
'[ICRA]D'.

                         Amount
   Facilities           (INR Cr)      Ratings
   ----------           ---------     -------
   Term Loans             98.65       Revised from [ICRA]B
                                      to [ICRA]D

The rating revision reflects the recent delays in debt servicing
by the company owing to strained liquidity position resulting
from the banks making further drawdown of term loans contingent
upon the joint venture partners (Saumya Mining Limited and DSM
Infracon Private Limited) infusing more equity in SDIL. However
as both the joint venture partners are facing liquidity
constraints of their own, the equity infusion has not
materialised. Besides the cash flows from the existing gas sales
remain low due to low gas off take owing to delays in project
implementation.

The project of City Gas Distribution (CGD) in Mathura was awarded
to JV of DSM Infratech Pvt. Ltd (a group company of DSM Real
Estate Pvt Ltd (now called DSM Infracon Pvt. Ltd.) & Saumya
Mining Private Limited (now called Saumya Mining Limited) in June
2009 in the first round of bidding for 6 cities by PNGRB. The JV
partners decided to implement the project in DSM Infratech Pvt
Ltd. Accordingly, DSM Infratech Pvt Ltd got renamed as "Saumya
DSM Infratech Pvt. Ltd", being the Special Purpose Vehicle
Company to execute the project. The JV partners, viz. DSM Real
Estate Pvt Ltd and Saumya Mining Pvt Ltd had signed an MOU in
February, 2009 for bidding for the CGD project. Subsequently in
September 2009 the two sponsor companies i.e. DSM Real Estate
Private Limited and Saumya Mining Private Limited signed a
shareholding agreement for forming the SPV company DSM Infratech
Private Limited. DSM Infratech Private Limited was converted into
a public limited company in December 2009 and is now called
Saumya DSM Infratech Limited.

Saumya Mining Limited is engaged in open cast mining and
transportation of Coal, Iron Ore, Zinc, Limestone and Uranium.
DSM Infracon Private Limited is working with Arshiya Group for
execution of Free Trade Warehousing Zone project at Khurja in the
state of Uttar Pradesh.


SHRI RAM: ICRA Reaffirms '[ICRA]B' Rating on INR13.07cr Loans
-------------------------------------------------------------
ICRA has reaffirmed the long-term rating of '[ICRA]B' to the INR
11.25 crore1 Cash Credit facility and INR 1.82 crore Term Loan
facility of Shri Ram Rice Mills.  ICRA has also reaffirmed the
short term rating of '[ICRA]A4' to the INR 0.70 crore Letter of
Credit facility of SRRM.

                            Amount
   Facilities              (INR Cr)      Ratings
   ----------              ---------     -------
   Cash Credit               11.25       [ICRA]B reaffirmed
   Term Loan                  1.82       [ICRA]B reaffirmed
   Letter of Credit           0.70       [ICRA]A4 reaffirmed

The ratings of SRRM continue to take into consideration its
moderate scale of operations, its low profitability metrics, high
gearing levels and weak debt protection indicators. The ratings
also continue to factor in the firm's high working capital
intensity and the intensely competitive nature of industry which
exerts pressure on operating margins. However, the ratings
favorably take into account the significant increase in SRRM's
operating income in FY 2012, its experienced management and its
concentration on export of basmati rice. Further, ICRA continues
to factor in the favorable demand prospects of the rice industry
with India being the second largest producer and consumer of rice
in the world.

Shri Ram Rice Mills is a partnership firm established in 2004,
and is primarily engaged in milling of basmati rice. SRRM's
milling unit is based out of Karnal, Haryana, in close proximity
to the local grain market. The firm has two registered brands,
and sells rice in various states in India including Gujarat,
Madhya Pradesh, Maharashtra and Delhi mainly through external
dealers. The firm is also involved in the export of basmati rice.
In FY 2012, the company reported an operating income of INR 71.89
crore and a net profit before tax of INR 0.14 crore.


SRI LAKSHMI: ICRA Cuts Rating on INR20cr Loan to '[ICRA]D'
----------------------------------------------------------
ICRA has downgraded the short-term rating outstanding on the
INR20.00 crore short-term fund based facilities of Sri Lakshmi
Prasanna Agencies from '[ICRA]A4' to '[ICRA]D'.

                            Amount
   Facilities              (INR Cr)      Ratings
   ----------              ---------     -------
   Fund based facilities     20.00       [ICRA]D downgraded

SLPA, promoted in 1998 by Mr. C V Narasimha Rayal, is a sole
proprietorship concern which is primarily engaged in trading in
agricultural commodities like onion, chilies, groundnuts and
maize. SLPA sells these commodities in the markets of Malaysia,
Indonesia, Hong Kong, Singapore and Philippines. Group entities
include C V Narasimha Rayal & Sons, which is engaged in trading
in agricultural commodities, and Laxmi Prasanna Cold Storage
Private Limited, which has a cold storage unit in Guntur (Andhra
Pradesh).


ULTRACAB (INDIA): ICRA Assigns 'B' Rating to INR11.32cr Loans
-------------------------------------------------------------
A rating of '[ICRA]B' has been assigned to INR 1.32 crore term
loan and INR 10.00 crore cash credit facility of Ultracab (India)
Private Limited.

                            Amount
   Facilities              (INR Cr)      Ratings
   ----------              ---------     -------
   Cash Credit Limit         10.00       [ICRA]B assigned
   Term Loan                  1.32       [ICRA]B assigned
   Proposed Limit             2.00       [ICRA]A4 assigned

A rating of '[ICRA]A4' has also been assigned to INR 2.00 crore
non-fund based proposed facilities of UIPL. The ratings take into
consideration the modest scale of operation of UIPL and weak
financial profile characterised by high gearing and stretched
liquidity. Also, ICRA notes that the company's margins are
vulnerable to raw material price fluctuations; however company in
the past has been able to pass on the fluctuations in raw
material prices to the end consumers to some extent.

However, the ratings derive comfort from the experience of
promoters in the cable manufacturing business and company's
diverse product profile and a wide distribution cum marketing
network across India.

Ultracab (India) Private Limited was incorporated in December
2007 by Mr. Nitesh Vaghasiya to manufacture wires & cables.
UIPL's plant is located at Shapar Veraval, District-
Rajkot,Gujarat. The company is engaged in manufacturing of
PVC/XLPE power & control cables, multi core flexible wires, flat
cables, house wires and aerial bunched cables. The product
profile finds application as household wires, panel boards in
industrial machines, heavy cables in industries and flat cables
for industrial pumps.


VASHU YARN: Delay in Loan Payment Cues ICRA Junk Ratings
--------------------------------------------------------
ICRA has assigned long-term rating of '[ICRA]D' to the INR7.52
crore term loan facilities, the INR6.03 fund based facilities and
INR0.40 crore non-fund based facilities of Vashu Yarn Mills India
Private Limited.  ICRA has also assigned short-term rating of
'[ICRA]D' to the INR 1.05 crore non-fund based facilities of the
Company.

                               Amount
   Facilities                 (INR Cr)     Ratings
   ----------                 ---------    -------
   Term loan facilities         7.52       [ICRA]D/ assigned
   (long-term)

   Fund based facilities        6.03       [ICRA]D/ assigned
   (long-term)

   Non-fund based facilities    0.40       [ICRA]D/ assigned
   (long-term)

   Non-fund based facilities    1.05       [ICRA]D/ assigned
    (short-term)

The assigned ratings factor the delays in timely servicing of
debt by the Company owing to its stretched liquidity position.
The Company's financial profile was adversely impacted during
2011-12 following huge losses on account of sluggish demand for
yarn coupled with steep fall in yarn realisations and escalation
in operating costs driven by persistent power issues in Tamil
Nadu (TN). The Company's capital structure, coverage indicators
and debt protection metrics are highly stretched as consequence.
The ratings further consider VYMIPL's small scale of operations,
which restrict scale economies and the intense competition
prevalent in the spinning industry which restricts the Company's
pricing flexibility to an extent. The ratings, however, consider
the experience of promoters in the industry.

Vashu Yarn Mills India Private Limited, incorporated in the year
2003, is engaged in the production of cotton yarn primarily in
30s to 40s count range. The Company has an installed capacity of
16,464 spindles with its manufacturing facility is located at
Erode, Tamil Nadu. VYMIPL also has a 250 KW windmill in Tamil
Nadu for captive power consumption. VYMIPL is closely held by the
promoter (Mr. K.S. Vasudevan) and his relatives/friends.

Recent Results

For the financial year 2011-12 the Company reported net loss of
INR4.7 crore on an operating income of INR28.5 crore as against a
net profit of INR1.5 crore on an operating income of INR29.9
crore during the financial year 2010-11.


VINEETAZ EXPORTS: Delay in Loan Payment Cues ICRA Junk Ratings
--------------------------------------------------------------
The rating assigned to the INR 2 crore term loans of Vineetaz
Exports Private Limited has been downgraded to '[ICRA]D' from
'[ICRA]BB-'.  The rating assigned to the INR 65 crore fund-based
limits and INR 3 crore non-fund based limits of VEPL has also
been downgraded to '[ICRA]D' from '[ICRA]A4'.

                            Amount
   Facilities              (INR Cr)     Ratings
   ----------              ---------    -------
   Term Loans                 2         Revised to [ICRA]D from
                                        [ICRA]BB-(Stable)

   Fund-Based Limits         65         Revised to [ICRA]D from
                                        [ICRA]A4

   Non-Fund Based Limits      3         Revised to [ICRA]D from
                                        [ICRA]A4

The rating revision follows significant deterioration in the
liquidity position of the company leading to delay in debt
servicing.

Vineetaz Exports Private Limited was incorporated in 1991. VEPL
is a closely held company with 100% shareholding held by Mr.
Vinay Mawandia and his two brothers along with their family
members. The company is mainly into exports of garment
accessories viz. scarves, stoles, shawls, pashmina, and wrap
around. VEPL has manufacturing units at Gurgaon. These units are
involved in finishing of accessories (scarves, stoles, shawls
etc.), stitching ladies and kids garments along with quality
control measures.

During 2011-12, VEPL reported net sales and profit after tax of
INR 87.36 crore and INR 0.98 crore respectively (as per unaudited
results); while the company reported net sales and profit after
tax of INR 103.37 crore and INR 1.60 crore respectively in 2010-
11.



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


ENERGI MEGA: Moody's Assigns '(P)B2' Corporate Family Rating
------------------------------------------------------------
Moody's Investors Service has assigned a provisional (P)B2
corporate family rating to PT Energi Mega Persada Tbk (EMP), an
upstream oil & gas company based in Indonesia.

The rating outlook is stable.

Moody's has also assigned a provisional (P)B2 rating with a
stable outlook to the proposed USD notes to be issued by EMP
International Holdings Pte. Ltd. The notes are unconditionally
guaranteed by EMP and some of its subsidiaries.

The company will use the proceeds from the notes to refinance
some of its existing debt and fund working capital.

The provisional status of the ratings will be removed upon the
completion of the bond issue and a satisfactory review of the
final documents.

If the transaction is not completed or if the amount of the bond
issue differs materially from Moody's expectations, then the
ratings will be pressured in view of the tight liquidity profile
and the current breach of a financial covenant of one of the
company's major financing facilities.

Ratings Rationale

"The (P)B2 rating is supported by EMP's increasing proportion of
relatively stable gas revenues, underpinned by medium- to long-
term take-or-pay contracts, and its plan to further ramp up gas
production," says Simon Wong, a Moody's Vice President and Senior
Analyst.

Moody's expects the proportion of gas revenues to increase to 40%
in 2012 from 20% in 2011 and range between 50% and 60% in the
medium term.

EMP's production and the size of its proved developed reserves as
of mid-2012 were more than double the levels in 2010, as a result
of the acquisition of ONWJ PSC, offshore North West Java, and the
commercial operation of the Terang gas field (Kangean block
located in East Java).

It continues to benefit from a low production cost base, given
the onshore nature of most of its producing blocks. It reported
proved developed reserves of 73.5 million barrels of oil
equivalent (mmboe) and daily production volume of 29.7 thousand
barrels of oil equivalent per day (mboepd) as at June 30.

"However, these strengths are tempered by EMP's history of high
financial leverage. The company's plans to lower its leverage are
subject to the continued ramp up of production, including in its
Kangean and Bentu blocks," says Mr. Wong, also the Lead Analyst
for EMP.

"EMP also has limited financial flexibility to fund the
development of large oil & gas fields and is highly reliant on
its partners for funding," he adds.

The acquisition of ONWJ was wholly debt-funded, while the
development of the Terang gas field (Kangean block) was fully
funded by EMP's partners: Mitsubishi Corporation (A1 stable) and
Japan Petroleum Exploration Co. Ltd (Japex, A2 stable). EMP's
RCF/debt was 12.9%, and the ratio of total debt to proved
developed reserves was US$12.2/boe at end-2011.

Moody's expects debt to proved developed reserves to remain
between 11x and 12x in the medium term, and which will strain its
current rating. EMP also has a history of delays in the
commercialization of its reserves. For instance, the Kangean
development was delayed by almost four years.

"Moody's is also concerned about the high proportion of
undeveloped proved reserves of 74%, as this indicates that
despite its good long-term growth prospects, EMP will have to
invest a substantial amount of capex to develop these reserves,"
Mr. Wong adds.

EMP aims to spend US$700 million between 2012 and 2014 to ramp up
its production and commercialize its gas reserves and which will
limit its ability to generate free cash flow.

Furthermore, EMP has high production concentration risk -- with
ONWJ and Kangean accounting for 70% of its revenues in the medium
term -- even though it has strong partners, such as Pertamina
(Baa3 stable), Mitsubishi and Japex which operate these blocks.

EMP's liquidity profile is not adequate. It has been in breach of
a financial covenant in a major borrowing facility since 2008,
although this situation should improve materially with
refinancing from the issuance of the proposed bonds.

The stable outlook incorporates Moody's expectation that EMP will
achieve its production growth within its budget and the planned
time frame, while reducing leverage such that its RCF/debt
exceeds 25% in 2013.

Upward rating pressure is limited, but may evolve if the company:
1) succeeds in implementing its expansion plans and ramping up
its production, with a consistent track record of production at
the Kangean and Bentu blocks; and 2) demonstrates consistent
positive free cash flow and successfully lowers leverage.

Financial indicators that Moody's would consider for an upgrade
are: adjusted debt/proved developed reserves of less than
USD9/boe or RCF/debt of more than 30% to 35% on a sustained
basis.

The ratings will be under pressure if EMP fails to lower its
leverage and achieve its production targets within the projected
costs and time frame. Cyclical movements in oil and gas prices or
aggressive debt-funded acquisitions will also pressure the
rating.

Adjusted debt/proved developed reserves of more than USD12/boe or
RCF/debt of less than 20% on a consistent basis would be
indicative of downward pressure on the rating.

The principal methodology used in rating PT Energi Mega Persada
Tbk (EMP) was the Global Independent Exploration and Production
Industry published in December 2011.

EMP is an independent oil & gas exploration and production
company and was established in 2001. It had total proved reserves
of approximately 286.2 mmboe. It holds working interests in
twelve blocks.

As at June 30, approximately 92.8% of its proved reserves
consisted of natural gas. Listed on the Indonesia Stock Exchange,
EMP is 8.01%-directly-owned by PT Bakrie and Brothers Tbk (BNBR).
However, the Bakrie family has significant influence on EMP
through additional shares owned in their personal capacity and
through corporate affiliates of BNBR.


ENERGI MEGA: S&P Gives 'B' Corp. Credit Rating; Outlook Positive
----------------------------------------------------------------
Standard & Poor's Ratings Services assigned its 'B' long-term
corporate credit rating to Indonesian exploration and production
(E&P) company PT Energi Mega Persada Tbk.  The outlook is
positive. "At the same time, we assigned our 'B' issue rating to
a proposed issue of senior secured notes that EMP and its
subsidiaries guarantee. EMP's subsidiary, EMP International
Holdings Pte. Ltd., will issue the notes. Our rating on the
proposed notes is subject to our review of the final issuance
documentation. EMP is a holding company that has interests in
production sharing contracts in various oil and gas blocks," S&P
said.

"The rating on EMP reflects the company's large capital
expenditure requirements relative to its free cash flow
generation," said Standard & Poor's credit analyst Vishal
Kulkarni. "The rating also reflects the limited track record of
EMP's development blocks, and the company's exposure to volatile
oil prices and asset concentration in Indonesia. EMP's good
growth potential in its blocks, long-term fixed-price gas sales
contracts, and the favorable outlook for energy demand in
Indonesia, particularly for gas, temper the above weaknesses. The
rating is based on the assumption that the company will refinance
its debt with the proposed notes."

"The rating considers PT Bakrie & Bro. Tbk.'s 15% stake in EMP.
EMP, an affiliate of Bakrie & Bro., and an unrelated third party
jointly own 36% stake in Offshore North West Jawa (ONWJ) oil
block. The shareholder agreement among these entities gives the
unrelated third party control over business and cash flow related
decisions at ONWJ. We believe the agreement mitigates potential
related-party transaction risks at ONWJ at the current rating
level," S&P said.

"EMP has limited cash flows at the holding company level, after
accounting for debt servicing and capital expenditure at the
operating subsidiary level, in our opinion. All of the company's
major blocks are undergoing sizable capital expenditure programs
that EMP can fund internally, but only with a small cushion.
However, the company has some flexibility in its capital
expenditure plans," S&P said.

"We believe that EMP has limited operating diversity. In
addition, the company's cash flow generation from the oil segment
is exposed to volatile oil prices. Moreover, all of EMP's assets
are concentrated in Indonesia. This exposes it to Indonesia's
country and macroeconomic risk and geological risks. EMP's blocks
have a favorable reserve life and the company sells to counter
parties with good credit profiles," S&P said.

"Debt servicing on the proposed notes will be subordinated to the
payment of interest on, and amortizing principal payments for, a
US$300 million debt at the Kangean block, which is non-recourse
to EMP. Dividends paid from ONWJ's cash flows to its other
shareholders will also cause some cash leakage, even though such
payments are optional," S&P said.

"We view the bullet maturity of the notes in 2017 as causing
refinancing risk, particularly because there will be no sweep of
excess cash or dividend restrictions in the years when the notes
are outstanding," said Mr. Kulkarni.

"The positive outlook reflects our expectation that the increase
in EMP's gas production will boost its cash flows," S&P said.

"We could upgrade EMP if: (1) the company is on track to produce
about 7.5 million barrels of oil and 115 billion cubic feet of
gas in 2013; and (2) the company generates free cash flow of more
than US$250 million annually (after dividends at ONWJ, and debt
servicing and amortization at Kangean but before capital
expenditure). We assume that EMP will not increase its already
sizable capital spending and that it won't make any debt-funded
acquisitions," S&P said.

"We could revise the outlook to stable if production slips or oil
prices fall such that EMP's free cash flow (after dividends at
ONWJ, and debt servicing and amortization at Kangean but before
capital expenditure) is less than US$200 million in 2013. Such a
scenario will reduce the company's financial flexibility and
lower its capital expenditure, thus jeopardizing future growth in
production and cash flow generation. Negative rating action is
also likely if: (1) EMP fails to refinance its debt through the
proposed notes; or (2) the company engages in any new or
additional related-party transactions related to ONWJ or any
other asset that could hurt its cash flow or weaken its financial
profile," S&P said.



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


CITIBANK JAPAN: Moody's Affirms 'D+' BFSR; Outlook Negative
-----------------------------------------------------------
Moody's Japan K.K. has affirmed Citibank Japan Ltd.'s Baa1/Prime-
2 bank deposit ratings and D+ bank financial strength rating
(BFSR), which maps into a baseline credit assessment of baa3.

However, Moody's has changed the ratings outlook to negative from
stable.

These actions follow Moody's affirmation of all the ratings of
Citibank N.A. on 16 October, when it also changed their outlooks
to negative from stable.

Ratings Rationale

Citibank Japan's standalone credit assessment is strongly aligned
with that of its parent, Citibank N.A., due to their close
integration. Therefore, any changes in its parent's ratings will
be reflected in the ratings of Citibank Japan.

As Citibank Japan is a strategically important subsidiary of
Citibank N.A., Moody's also incorporates a very high probability
of support for the bank from its parent, in case of need.

Upward pressure on Citibank Japan's rating would emerge if: (1)
Moody's upgrades Citibank N.A.'s deposit ratings; or (2) Moody's
assessment of Citibank N.A.'s standalone credit profile improves.

Citibank Japan's rating would be downgraded if: (1) Moody's
downgrades Citibank N.A.'s rating; (2) Citibank Japan's business
deteriorates, or there are changes in its operating integration
with Citibank N.A.; or (3) the strategic importance of Citibank
Japan to Citibank N.A. decreases.

Moody's added that the typical rating outlook horizon is twelve-
to-eighteen-months. However, the rating outlook could return to
stable in a shorter timeframe.

The principal methodology used in this rating was Moody's
Consolidated Global Bank Rating Methodology, published on July 6,
2012.

Citibank Japan Ltd, headquartered in Tokyo, is Citibank N.A.'s
wholly-owned subsidiary.


ELPIDA MEMORY: Creditors Seek to Unseal Technology Sale Documents
-----------------------------------------------------------------
Bill Rochelle, the bankruptcy columnist for Bloomberg News,
reports that Japan's Elpida Memory Inc. made its argument for
preventing the Massachusetts Institute of Technology and the
University of Maryland from suing for patent infringement and
seeking what the patent holders call "significant damages."

According to the report, the company's official creditors'
committee filed papers opposing efforts by Elpida to make a
secret out of information about technology sales.  Elpida says
the two universities didn't file claims on time in the company's
Japanese bankruptcy.  Now that they have been allowed to file
late claims, pursuing lawsuits in the U.S. would be "needlessly
duplicative and wasteful," Elpida said in a court filing.

The report relates that with regard to commercial transactions
being kept secret, the committee argues that the U.S. court isn't
bound to maintain secrecy simply because that's the procedure in
Japan.  In the U.S., the committee says, there is a "strong
presumption" against secrecy.  The committee contends that
"almost none" of the redacted information is "trade secret or
confidential research."  Among other things, the committee wants
to know the terms of transactions, the amounts being paid, and
the identity of the technology being transferred.

The report notes the next major hearing in Elpida's Chapter 15
bankruptcy will take place Oct. 24.  The universities' patent
pertains to use of lasers to cut links between electrical
circuits.  The patent is part of the technology that Micron
Technology Inc. would acquire in purchasing Elpida through the
primary bankruptcy in Japan.  In addition to damages, the
universities want to sue for an injunction to prevent future
infringement.

The Bloomberg report discloses that as a result, creditor actions
in the U.S. were halted and the court in Japan was recognized as
having the power to sell the business and administer
distributions to creditors, receiving assistance from the U.S.
court if necessary.  Some U.S. bondholders have argued that the
proposed sale to Boise, Idaho-based Micron for an estimated $1.8
billion at present value is for substantially less than Elpida's
liquidation value.

                        About Elpida Memory

Elpida Memory Inc. (TYO:6665) -- http://www.elpida.com/ja/-- is
a Japan-based company principally engaged in the development,
design, manufacture and sale of semiconductor products, with a
focus on dynamic random access memory (DRAM) silicon chips.  The
main products are DDR3 SDRAM, DDR2 SDRAM, DDR SDRAM, SDRAM,
Mobile RAM and XDR DRAM, among others.  The Company distributes
its products to both domestic and overseas markets, including the
United States, Europe, Singapore, Taiwan, Hong Kong and others.
The company has eight subsidiaries and two associated companies.

After semiconductor prices plunged, Japan's largest maker of DRAM
chips filed for bankruptcy in February with liabilities of 448
billion yen ($5.6 billion) after losing money for five quarters.
Elpida Memory and its subsidiary, Akita Elpida Memory, Inc.,
filed for corporate reorganization proceedings in Tokyo District
Court on Feb. 27, 2012.  The Tokyo District Court immediately
rendered a temporary restraining order to restrain creditors from
demanding repayment of debt or exercising their rights with
respect to the company's assets absent prior court order.
Atsushi Toki, Attorney-at-Law, has been appointed by the Tokyo
Court as Supervisor and Examiner in the case.

Elpida Memory Inc. sought the U.S. bankruptcy court's recognition
of its reorganization proceedings currently pending in Tokyo
District Court, Eight Civil Division.  Yuko Sakamoto, as foreign
representative, filed a Chapter 15 petition (Bankr. D. Del. Case
No. 12-10947) for Elpida on March 19, 2012.



=========
K O R E A
=========


* KOREA: Moody's Says Banks Resilient to Household Debt Defaults
----------------------------------------------------------------
Moody's Investors Service says that while high household leverage
is a systemic concern for Korea, its banks have a solid capital
buffer against a scenario of rising household debt defaults.

"One reason for this resilience is that the loan portfolios of
Korean banks, which account for about half of the household
credit in the system, have structurally superior asset quality
compared with non-bank lenders," says Hyun Hee Park, a Moody's
Analyst.

"Their mortgage portfolios have lower loan-to-value ratios, and
they tend to lend only to households with above-average income
and credit quality," adds Park.

Park was speaking on the release of the special comment titled
"Assessing Korean Banks' Exposure to Potential Rise in Household
Debt Delinquencies."

Moody's conducted stress tests on 16-rated banks which assumes
that over a two-year period, the banks' household credit
portfolio would experience impairments, in terms of the
probability of default and loss given default, at levels above
those experienced during the 2003 Korean credit card crisis.

The test also makes the assumption that in the same period, the
banks' corporate portfolios would experience distress similar to
what they experienced during the 2008-2009 global financial
crisis.

The results have suggested that despite these assumptions of two
simultaneous credit crises, Moody's could expect the Tier 1
ratios of the 16-rated banks to decline to around 9.3% from
11.1%.

"Although the decline is significant, the banks' Tier 1 ratios
would remain well above the regulatory limit and probably
sufficiently strong to maintain market confidence," adds Park.

But Moody's has concerns regarding the structural challenges
posed by the high levels of household debt, which creates the
potential for shocks that may not be entirely captured by
stresses based on Korea's historical experience.

The first is the high proportion of non-amortizing, short-dated
mortgages, which increases the risk of refinancing shocks as the
loans mature.

The second is that Korea's rapidly aging demographics is a new
phenomenon creating the risk that housing prices could be set for
a material decline in coming years.

"We continue to view Korea's high household debt as a credit
negative. While we do not anticipate a trigger in the next 12 to
18 months that would pressure the banks' asset quality, Korea's
household debt levels will pose significant tail risks for the
financial system," says Park.

The special comment "Assessing Korean Banks' Exposure to
Potential Rise in Household Debt Delinquencies".



=====================
P H I L I P P I N E S
=====================


AMAN FUTURES: SEC Upholds Cease and Desist Order Over Scam
--------------------------------------------------------------
BusinessWorld Online reports that the Securities and Exchange
Commission has upheld its recent cease and desist order (CDO)
against Aman Futures Group Philippines, Inc., warning the public
against e-mail and text messages claiming that the securities
firm has already been cleared to operate for six months.

"Reports have reached the SEC that news through e-mail and text
messages have been circulating in Pagadian City, stating that
Aman Futures Group has already been issued a secondary license by
the SEC and that the company has been given clearance good for
six months which will allow it to operate. The commission wishes
to clarify that it has not issued any secondary license to Aman
Futures," an SEC statement, obtained by BusinessWorld, stated.

"The CDO issued by the commission Oct. 8 still stands. This being
the case, Aman Futures, its officers, directors, agents,
representatives, conduits, assigns, and any and all persons
claiming and acting for and in behalf and under their authority
are still prohibited, under pain of contempt, from offering,
soliciting, or otherwise offering or selling unregistered
securities to the public, such as, but not limited to, investment
contracts, pooling of funds, investment trusts, or similar forms,
and, in connection therewith, soliciting, accepting or receiving
from others, money for the purpose of trading in any futures
contract," the statement added, BusinessWorld relays.

In an Oct. 8 order, BusinessWorld recounts, the SEC had ordered
Aman Futures to stop offering unregistered securities to the
public after the agency had found the company guilty of these
violations:

   -- non-registration of securities sold to the public;

   -- non-registration as broker or dealer despite acting
      as such;

   -- engaging in commodity futures contracts contrary to
      law; and

   -- undertaking businesses contrary to its primary purpose
      as a general trading company.

Under its current scheme, investors entrusted money placements
with Aman Futures with a pledge by the firm to return, via post-
dated checks, the entire sum with as much as 40% in profits,
siphoning PHP244 million from its investors in the process,
BusinessWorld discloses.


EXPORT & INDUSTRY: PDIC Declares Failed Bidding for Rehab
---------------------------------------------------------
The Bidding Committee constituted by the Philippine Deposit
Insurance Corporation (PDIC) to oversee the bidding for the
rehabilitation of closed Export and Industry Bank (EIB) declared
last week's auction for Tranche 1 of the rehabilitation of the
bank a failed bidding after no bids were received during the
bidding.

Upon conclusion of the bidding, PDIC disclosed that it received a
copy of a 72-hour temporary restraining order (TRO) issued by the
Makati City Regional Trial Court enjoining defendants PDIC,
Bangko Sentral ng Pilipinas and EIB and their officers, agents
and representatives from proceeding with the sale of EIB's
assets, branches and commercial bank license on October 18, 2012.

The TRO was in relation to Civil Case No. 12-1010, entitled,
"Forum Holdings Corporation, East Asia Oil Company, Inc., Pacific
Rehouse Corporation, Pacific Concorde Corporation and Mizpah
Holdings, Inc. v. Philippine Deposit Insurance Corporation,
Bangko Sentral ng Pilipinas and Export and Industry Bank, Inc.

The PDIC said that it will file today an Urgent Motion to
Dissolve and/or Lift the TRO and Opposition to Application for
Preliminary Injunction filed by Forum Holdings Corporation et al.
arguing that the RTC had no jurisdiction to issue the TRO and
preliminary injunction and that the court was patently in
violation of the Rules of Court and jurisprudence. PDIC further
cited that the plaintiffs have no clear and unmistakable right
over EIB's assets, branches and commercial bank license to be
entitled to injunctive relief and that there was no extreme
urgency in the ex parte issuance of the TRO.

The PDIC added that after a successful bidding for the
rehabilitation of EIB, consents of stockholders, depositors and
creditors have to be obtained. After which the requisite PDIC and
Monetary Board approvals should be obtained. The PDIC earlier set
a deadline of November 9, 2012 for the submission of depositors',
creditors' and stockholders' consents.

Meanwhile, the PDIC said that it will continue to pursue options
for the rehabilitation of EIB for the benefit of depositors and
ordinary creditors.

Tranche 1 was intended for the sale of the assets and liabilities
of EIB, as well as its 50 branches and additional 30 branches,
all in restricted areas. The bids would have represented the
amount the qualified bidder will pay for the uninsured deposits
and other ordinary credits of EIB.

After a successful bidding, the consent of majority of
stockholders; consent of all creditors and uninsured depositors;
and approval of the PDIC and BSP have to be obtained to complete
the rehabilitation of EIB.

PDIC said that the implementation of Tranche 1 is a requisite for
Tranche 2 to proceed. Tranche 2 of the rehabilitation will be for
the sale of EIB's commercial banking license.

Headquartered in Makati City, Manila, Export & Industry Bank
-- http://exportbank.com.ph/-- has 50 branches and has revived
former Urban Bank unit under new names.  Its principal activity
is the provision of commercial banking services such as deposit
taking, loans and trade finance, domestic and foreign fund
transfers, treasury, foreign exchange and trust services.

As reported in the Troubled Company Reporter-Asia Pacific on
April 27, 2012, ABS-CBNnews.com said Bangko Sentral ng Pilipinas
placed EIB under receivership on April 26, 2012.  The Monetary
Board cited the bank's "inability to meet obligations as they
becomes due, insufficient realizable assets to meets its
liabilities and its inability to continue its business without
involving probable losses to its depositors and creditors."

The Philippine Deposit Insurance Corporation (PDIC) took over the
Export & Industry Bank on April 27, 2012, to implement Monetary
Board Resolution No. 686 dated April 26, 2012.  As Receiver, PDIC
will gather all the assets of the closed bank and verify and
validate all bank records.



=================
S I N G A P O R E
=================


EXCEL ADVANCED: Creditors' Meetings Set for Nov. 9
--------------------------------------------------
Excel Advanced Technology Pte Ltd, which is in creditors'
voluntary liquidation, will hold a meeting for its creditors on
Nov. 9, 2012, at 11:30 a.m., at 19 Keppel Road, #03-10 Jit Poh
Building, in Singapore 089058.

Agenda of the meeting include:

   a. to lay before the meeting a report of the liquidators
      showing how the winding-up was conducted;

   b. to approve the remuneration of the liquidators; and

   c. discuss other business.


The company's liquidator is:

         Loke Poh Keun
         C/o 19 Keppel Road
         #03-10 Jit Poh Building
         Singapore 048424


EXCEL PRECISION: Creditors' Meetings Set for Nov. 9
---------------------------------------------------
Excel Precision (Singapore) Pte Ltd, which is in creditors'
voluntary liquidation, will hold a meeting for its creditors on
Nov. 9, 2012, at 11:00 a.m., at 19 Keppel Road, #03-10 Jit Poh
Building, in Singapore 089058.

Agenda of the meeting include:

   a. to lay before the meeting a report of the liquidators
      showing how the winding-up was conducted;

   b. to approve the remuneration of the liquidators; and

   c. discuss other business.


The company's liquidator is:

         Loke Poh Keun
         C/o 19 Keppel Road
         #03-10 Jit Poh Building
         Singapore 048424


GUAN BEE: Creditors' Meetings Set for Nov. 2
--------------------------------------------
Guan Bee Construction Pte Ltd, which is in liquidation, will hold
a meeting for its creditors on Nov. 2, 2012, at 10:00 a.m., at 8
Shenton Way, #17-02A, in Singapore 068811.

Agenda of the meeting include:

   a. to appoint a Committee of Inspection;

   b. to nominate a maximum of five members by person or by proxy
      to form a committee; and

   c. to approve Liquidator's fees, should the Committee of;
      Inspection not be formed;

The company's liquidator is:

         Yit Chee Wah
         c/o FTI Consulting (Singapore) Pte Ltd,
         #17-02A, 8 Shenton Way
         Singapore 068811


GUAN BEE: Creditors' Proofs of Debt Due Oct. 31
-----------------------------------------------
Creditors of Guan Bee Construction Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by
Oct. 31, 2012, to be included in the company's dividend
distribution.

The company's liquidators are:

         Yit Chee Wah
         c/o FTI Consulting (Singapore) Pte Ltd,
         #17-02A, 8 Shenton Way
         Singapore 068811


HENG FU: Creditors' Proofs of Debt Due Nov. 16
----------------------------------------------
Creditors of Heng Fu Kot Agencies Pte Ltd, which is in voluntary
liquidation, are required to file their proofs of debt by Nov.
16, 2012, to be included in the company's dividend distribution.

The company commenced wind-up proceedings on Oct. 15, 2012.

The company's liquidator is:

          Chia Lay Beng
          1 Scotts Road
          #21-08 Shaw Centre
          Singapore 228208



                             *********

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, Ivy B. Magdadaro, Frauline S.
Abangan, and Peter A. Chapman, Editors.

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

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

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





                 *** End of Transmission ***