TCRAP_Public/090326.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Thursday, March 26, 2009, Vol. 12, No. 60

                            Headlines

A U S T R A L I A

BABCOCK & BROWN: Administrators Can't Guarantee Any Returns
PMP LTD: S&P Affirms Long-Term Corporate Credit Rating to 'BB+'
RIO TINTO: ACCC Won't Oppose Firm's US$19.5BB Deal With Chinalco


C H I N A

CHINA PROPERTIES: S&P Affirms 'B' Corporate Credit Rating
SHANGHAI AIRLINES: Incurs CNY1.25 Bil. Net Loss in 2008
SHIMAO PROPERTY: Obtains CNY15 Bil. Credit Line From ABC


H O N G  K O N G

APPSTREET TECHNOLOGIES: Placed Under Voluntary Wind-Up
AROSA FUNDING: S&P Downgrades Rating on 2006-9 Notes to 'D'
BEP CORPORATE: Creditors' Meeting Set for March 30
BEST CONCORD: Creditors' Proofs of Debt Due on April 23
BETTER ELECTRICAL: Creditors' Meeting Set for March 30

BOTHFAIR LIMITED: Creditors' Proofs of Debt Due on April 20
BRIDISCO (HONG KONG): Creditors' Proofs of Debt Due on April 3
CSI SPORTS: Members to Hold Meeting on April 22
GROWTH LINK: Placed Under Voluntary Wind-Up
INSTANT RICH: Creditors' Proofs of Debt Due on April 21

INTEL CHINA: Creditors' Proofs of Debt Due on April 20
NETWORK MULTIMEDIA: Members and Creditors to Meet on April 21
SAPHIR FINANCE: Likelihood of Loss Cues S&P's Junk Rating
SPL WORLDGROUP: Members to Hold Meeting on April 21
VICTORY DYEING: Creditors' Meeting Set for March 27

WADER ENGINEERING: Members to Hold Annual Meeting on April 2
WHS HONG KONG: Gilligan Steps Down as Liquidator


I N D I A

AANJANEYA BIOTECH: Strained Liquidity Prompts CRISIL 'B+' Ratings
DEV EDUCATIONAL: CRISIL Rates Rs.55.0 Mln Term Loan at 'BB'
MESHCO STEELS: CRISIL Rates Rs.45 Million Cash Credit at 'BB'
NEXT RETAIL: Fitch Assigns National Long-Term Rating to 'BB+'
RT STAR: CRISIL Assigns 'P4' Ratings on Various Bank Facilities

SAHASTRA PROPERTIES: CRISIL Puts 'BB+' Rating on Rs.342.5MM Loan
SHRI HARIKRISHNA: Weak Liquidity Cues CRISIL 'B+' Ratings
SPICTEX COTON: CRISIL Places 'B+' Rating on  Rs.139.7MM LT Loan
SUDALAGUNTA SUGARS: Weak Liquidity Prompts CRISIL 'C' Ratings
UNIJULES LIFE: CRISIL Rates Rs.425 Million Cash Credit at 'BB+'


J A P A N

CSC SERIES: Moody's Changes Ratings on Various Classes of Notes
SFCG CO: To Start Bankruptcy Proceedings Soon
YAMATO LIFE: To Resume Operations Under New Name in June


K O R E A

SAMSUN LOGIX: Chapter 15 Petition Hearing Set for April 15


M A L A Y S I A

RANHILL BERHAD: Fitch Affirms IDR at 'B' on Weak Liquidity


N E W  Z E A L A N D

AUSTRAL PACIFIC: Operates Under Loan Default Waivers by Investec
LOMBARD GROUP: Appoints Auditors on London as New Auditor
TRITEC MANUFACTURING: Sells Mountain Buggy to Phil & Teds


P H I L I P P I N E S

LEGACY GROUP: SEC Adds Former Treasurer in Criminal Complaint


S I N G A P O R E

TEAM ENERGY: Creditors' & Contributories' Meeting Set for March 31
TRANSBILT ENGINEERING: Creditors' Proofs of Debt Due on April 17


T A I W A N

TAIWAN CORPORATION: Moody's Downgrades Ratings on 2007-1 Certs.


X X X X X X X X

* IATA Sees US$4.7BB Losses in 2009 for Global Airline Industry
* S&P Downgrades Ratings on 38 on 37 Asia-Pacific Synthetic CDOs


                         - - - - -



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

BABCOCK & BROWN: Administrators Can't Guarantee Any Returns
-----------------------------------------------------------
At the first creditors meeting held March 25, administrators for
Babcock & Brown Ltd said it's too early to determine if investors
will see any return on their money, the Herald Sun reports.

According to the report, administrator David Lombe of Deloitte
Touche Tohmatsu said he is unable to guarantee any returns for
creditors at this stage.  "I am not prepared to pre-empt any sort
of distribution or cents in the dollar," the Herald Sun quoted Mr.
Lombe as saying.  "It's too early, our investigations are
extremely preliminary and ounce we have fished the waters, once we
have done those sorts of things, we will be able to report back to
noteholders."

The report says a committee of 10 creditors was formed at the
meeting to work with the administrators as they look into Babcock
& Brown's finances.

As reported in the Troubled Company Reporter-Asia Pacific on
March 13, 2009, Babcock & Brown appointed voluntary administrators
after investors in the company's subordinated notes listed in New
Zealand voted on March 13 against the special resolution to
restructure the terms of the notes.  Under the special resolution,
the company's equity and subordinated note holders won't receive
any return.  Babcock & Brown appointed David Lombe and Simon
Cathro of Deloitte Touche Tohmatsu as Voluntary Administrators.

                      About Babcock & Brown

Headquartered in Sydney, Australia, Babcock & Brown Limited
(ASX:BNB) -- http://www.babcockbrown.com/-- creates, syndicates
and manages investment products for itself, as a principal, and
its investor clients; management of specialised listed and
unlisted funds, and advising and arranging leasing, project
financing and structured finance transactions.  It has five
segments: real estate, which engages in principal investment and
investment management activities in the real estate sector;
infrastructure, which engages in financial advisory, principal
finance and funds management activities in the infrastructure and
project finance sector; corporate and structured finance, which is
engaged in the origination, structuring and participation in and
management of equity and debt investments, and operating leasing,
which is engaged in asset acquisition and syndication, and ongoing
management of portfolios of aircraft, railcars and semi-conductor
equipment.  In October 2007, it acquired Bluewater.
In November 2007, it acquired Coinmach Service Corp.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
November 25, 2008, Standard & Poor's Ratings Services lowered its
long-term issuer credit rating on Australia-based Babcock & Brown
International Pty Ltd. to 'CC' from 'CCC+', following disclosure
of a dispute relating to the release of a deposit with a bank.
The short-term rating remains on 'C', and the long-term and the
short-term ratings remain on CreditWatch with negative
implications, where they were initially placed on Nov. 10, 2008.
The CreditWatch negative reflects that the rating on BBIPL is
expected to be lowered to 'D' if the worsening liquidity problems
lead to a default.  The rating is also likely to be lowered to 'D'
if BBIPL fails to meet its AU$3.1 billion corporate facilities'
financial covenants and the banks accelerate payments under the
facilities, or if a facility is restructured in such a way that is
deemed by Standard & Poor's as a distressed exchange.  For
example, a restructure could result in lenders not receiving
appropriate compensation.  S&P notes that Babcock & Brown intends
to negotiate with its lenders for amendments in the corporate bank
facilities.

Babcock & Brown International Pty Ltd. is the holding company of
Babcock & Brown Limited.


PMP LTD: S&P Affirms Long-Term Corporate Credit Rating to 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB+' long-term corporate credit rating on PMP Ltd. and revised
the outlook on the rating to negative from stable.  The outlook
revision reflects S&P's view of the increasingly challenging
market conditions for the company and the Australian printing
sector.  At the same time, the 'BB+' rating on PMP's senior
unsecured bank facilities were affirmed.

"The size of PMP's first-half earnings decline reflects the
intense competitive pressure in the print market and PMP's
vulnerability to adverse economic conditions," Standard & Poor's
credit analyst May Zhong said.  "Ongoing moderation in earnings,
together with a bleak outlook for the print sector and potential
weakening in PMP's market position, could challenge PMP's ability
to maintain a financial profile supportive of the 'BB+' rating."

The ratings may be lowered if there were a misstep in PMP's
refocused strategy or further deterioration in PMP's operating
performance to such an extent that its financial metrics continue
to weaken (in particular lease-adjusted funds from operations to
debt falling below 25%).  In addition, loss of any major print or
delivery contracts would also put immediate downward pressure on
the ratings.  Upward rating movement is unlikely in the short
term, given the company's high exposure to the cyclical and highly
competitive print market.


RIO TINTO: ACCC Won't Oppose Firm's US$19.5BB Deal With Chinalco
----------------------------------------------------------------
The Australian Competition and Consumer Commission will not oppose
Chinalco's US$19.5 billion deal with Rio Tinto, The Australian
reports.

According to the report, the ACCC said the deal wasn't likely to
affect the iron ore pricing or would result in a substantial
lessening of competition.  "The ACCC examined whether such
vertical integration could provide Chinalco with the ability to
control or influence Rio Tinto to decrease global iron ore prices
below competitive levels to the benefit of Chinese steelmakers,"
the Australian cited the ACCC in a statement.  "On the basis of
information provided to the ACCC during this review and the ACCC's
recent detailed investigation of the proposed acquisition of Rio
Tinto by BHP Billiton, the ACCC concluded that Chinalco and Rio
Tinto would be unlikely to have the ability to unilaterally
decrease global iron ore prices below competitive levels."

The report states that clearing the ACCC hurdle came as Rio said
it was appointing Deloitte to review the package.

Citing a previous report from The Australian, the Troubled Company
Reporter-Asia Pacific said the Foreign Investment Review Board
would take another 90 days to evaluate the deal Rio Tinto and
Chinalco.  The board's initial 30-day evaluation period ended on
March 16 but it had been widely expected the body would exercise a
routine 90-day extension, given the complexity of the deal.

As reported by the Troubled Company Reporter-Asia Pacific on
Feb. 17, 2009, Rio Tinto disclosed that it would form a
US$19.5 billion strategic partnership with Chinalco.  Rio Tinto
said the transaction will forge a pioneering strategic partnership
through the creation of joint ventures in aluminium, copper, and
iron ore as well as the issue of convertible bonds to Chinalco,
which would, if converted, allow Chinalco to increase its existing
shareholding in Rio Tinto.  The transaction is subject to approval
by the shareholders of Rio Tinto, governments and other
regulators.

            Missed Asset-Sale Targets, May Sell Shares

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 30, 2009, Bloomberg News said Rio Tinto failed to meet its
asset-sale targets due to the global recession, and may sell
shares to help cut debts.

According to a TCR-Europe report on Dec. 11,2008, Rio Tinto plans
to further reduce its net debt by US$10 billion by the end of 2009
through expanding the scope of assets targeted for divestment to
include significant assets not previously highlighted for sale.

The group's net debt as of October 31, 2008 stood at US$38.9
billion.

                         About Rio Tinto

Rio Tinto -- http://www.riotinto.com/-- is an international
mining group headquartered in the UK, combining Rio Tinto plc, a
London and NYSE listed public company, and Rio Tinto Limited,
which is a public company listed on the Australian Securities
Exchange.

Rio Tinto's business is finding, mining, and processing mineral
resources.  Major products are aluminium, copper, diamonds, energy
(coal and uranium), gold, industrial minerals (borax, titanium
dioxide, salt, talc) and iron ore.  Activities span the world but
are strongly represented in Australia and North America with
significant businesses in South America, Asia, Europe and southern
Africa.



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

CHINA PROPERTIES: S&P Affirms 'B' Corporate Credit Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'B' long-term corporate credit rating on China-based real estate
developer China Properties Group Ltd. and the 'B' issue rating on
the company's US$300 million 9.125% senior unsecured notes due
2014.  Both ratings remain on CreditWatch, where they were placed
with negative implications on Sept. 24, 2008.

The ratings remain on CreditWatch and have been affirmed due to
continued uncertainty over the company's liquidity position.

"We understand that China Properties' Chinese renminbi
[RMB] 520 million bank loan matured in the past few days, but have
not received an update from the company regarding the status of
refinancing.  If the refinancing is unsuccessful, the company
faces imminent repayment needs that its current cash position may
not be able to service," said Standard & Poor's credit analyst
Bei Fu.

The original CreditWatch placement reflected China Properties'
weak liquidity and the high refinancing risk surrounding the loan.

In S&P's view, China Properties' liquidity is vulnerable.
According to the company, it had unrestricted cash of less than
Hong Kong dollar 600 million and no undrawn bank lines as at the
end of November 2008.  S&P expects its cash sales to have been
limited since November 2008 due to the sluggish market conditions
in Shanghai, its home market, and the fact that only its Shanghai
Cannes project has units for sale.  S&P understands that China
Properties has not obtained a construction loan for its projects,
and is therefore using internal cash to carry out construction or
other projects or for corporate overheads.  These activities will
further deplete cash.  China Properties has limited financial
flexibility.  In addition to the RMB520 million bank loan due in
March, the company has one material debt issue (a US$300 million
bond due 2014).

S&P should be able to resolve the CreditWatch as soon as S&P
obtain sufficient information from China Properties' management.
If the company can roll over its RMB520 million loan for the full
amount at largely unchanged terms, S&P is likely to affirm China
Properties' rating with a negative outlook.  That's because of the
continued uncertainty over the company's ability to obtain bank
financing for construction and over the likely sales performance
in its new market, Chongqing.

If the loan is rolled over for the full amount but at tightened
terms, S&P will review the new terms.  The rating may be revised
down by one or more notches if the new terms set high performance
triggers or other restrictions that limit the company's headroom
to operate.

If the company is only able to roll over portion of the loan, S&P
will review the company's liquidity position as well as the new
terms.  The rating may be lowered by one or more notches.

If the company fails to refinance the bank loan and does not have
other refinancing arrangements to maintain its liquidity, the
rating is likely to be lowered by multiple notches.


SHANGHAI AIRLINES: Incurs CNY1.25 Bil. Net Loss in 2008
-------------------------------------------------------
Shanghai Airlines Co. Limited reported a net loss for the second
straight year in 2008, with its shares facing special trading
limits effective March 26, Reuters reports.

The report, citing Shanghai Airlines' statement, said the carrier
posted a CNY1.25 billion net loss in 2008, more than double from
CNY435.12 million net loss it incurred in 2007.  Reuters says the
company attributed the losses to plunging air travel demand and a
significant rise in operating costs due to higher fuel prices for
most of the year.

According to China's securities trading rules, Reuters relates,
Shanghai Airlines' shares, traded in Shanghai, will be subject to
a daily trading cap of 5 percent and will be delisted if it is
unable to make a turnaround in 2009.

As reported in the Troubled Company Reporter-Asia Pacific on
March 2, 2009, China Daily said Shanghai Airlines plans to raise
CNY1 billion (US$146 million) through the issuance of non-public
shares to Jin Jiang International Holdings Co Ltd.  The airline,
as cited by the Daily, said it would issue 200 million additional
shares to Jin Jiang International, currently its third largest
shareholder, in a swap deal.  "This money would help lower
Shanghai Airlines' debt-to-equity ratio by 5.9 percent, to 85.45
percent, and shore up its operational cash flow," the report
quoted Li Lei, an analyst with CITIC China Securities, as saying.

Shanghai Airlines Co., Limited -- http://www.shanghai-air.com/
-- is a China-based commercial airline company.  The company
mainly provides air passenger and air cargo transportation
services and air mail services domestically and internationally.
The company also develops traveling, import and export trading
and advertising businesses.  As of December 31, 2007, the
company had 58 airplanes.  In 2007, the company develops 10 new
national airlines and three new international airlines.  During
the year ended December 31, 2007, the company transported
approximately 9.45 million passengers and 327,400 metric tons of
cargos.  As of December 31, 2007, the company had 15 major
subsidiaries and associates.


SHIMAO PROPERTY: Obtains CNY15 Bil. Credit Line From ABC
--------------------------------------------------------
Shimao Property Holdings Ltd. has received a CNY15 billion (US$2.2
billion) credit line from Agricultural Bank of China to fund
projects and acquisitions, Bloomberg News reports.

"The market is warming up, which will speed up our cash returns,"
Xu Rongmao, founder and chairman of Shimao Property, was quoted by
Bloomberg News as saying.  "Acquisitions are likely in the second
half of this year as well, as some of the smaller builders face
problems.  We will also consider buying land."

Bloomberg News says the credit line is equal to almost 90 percent
of the market value of Shimao, which had its debt rating cut to
junk last year.

According to the report, Jason Hui, vice president of Shimao, said
the bank is charging Shimao the "basic" lending rate for the
credit facility, with a discount of as much as 10 percent for some
projects.  Shimao will use the facility for as many as 20 of its
projects, Bloomberg News notes.  Mr. Hui, as cited by the report,
said Shimao also has credit agreements with the Industrial &
Commercial Bank of China Ltd., Bank of China Ltd. and China
Construction Bank Corp., with most facilities lasting up to three
years and with a borrowing cost at the benchmark rate of above 5
percent.

The developer's $350 million 8% bonds maturing in 2016 have risen
to 50.5 cents on the dollar Monday, March 23, from a record low of
28.5 cents on Nov. 3, according to data compiled by Bloomberg.

                       About Shimao Property

Shimao Property Holdings Limited -- http://www.shimaogroup.com/
-- is a large-scale developer of real estate projects in China,
specializing in high-end developments in prime locations.  The
company's business portfolio comprises the development of
residential properties, retail properties, offices and hotels.
The company has 15 projects at various stages of development
located in Shanghai, Beijing, Harbin, Wuhan, Nanjing, Fuzhou,
Kunshan, Changshu, Shaoxing and Wuhu.

                          *     *     *

As reported in Troubled Company Reporter-Asia Pacific on Dec. 19,
2008, Standard & Poor's Rating Services said that it had revised
the outlook on China-based property developer Shimao Property
Holdings Ltd. to negative from stable.  At the same time, it
affirmed the 'BB' long-term corporate credit rating on Shimao and
the 'BB-' issuer rating on the company's US$350 million 8% senior
unsecured notes due 2016 and on its US$250 million floating rate
note due 2010.

Moody's Investors Service, according to a TCR-AP report on
Dec. 17, 2008, also downgraded the corporate family rating of
Shimao Property Holdings to Ba3 from Ba2.  At the same time,
Moody's downgraded the company's senior unsecured bond rating to
B1 from Ba2 due to subordination risk.  The outlook on all ratings
is negative.



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

APPSTREET TECHNOLOGIES: Placed Under Voluntary Wind-Up
------------------------------------------------------
On March 13, 2009, the sole member of Appstreet Technologies
Limited resolved to voluntarily wind up the company's operations.

The company's liquidators are:

          Messrs. Alan CW Tang
          Wong Kwok Man
          Grant Thornton Specialist Services Limited
          Gloucester Tower, 13th Floor
          The Landmark
          15 Queen's Road Central
          Hong Kong


AROSA FUNDING: S&P Downgrades Rating on 2006-9 Notes to 'D'
-----------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on Series
2006-9 US$50 million secured variable rate credit-linked notes
issued by Arosa Funding Ltd. to 'D' from 'CC'.

The downgrade reflects a loss incurred by the noteholders. The
portfolio in the transaction had suffered several credit events,
which resulted in an aggregate loss that exceeded the available
subordination and reduced the principal amount of the notes.  As a
result of a reduction in the principal, noteholders experienced a
loss of interest due on the interest payment date.

The rating action on the affected transaction is:

Rating lowered:

       Name                       Rating To    Rating From
       ----                       ---------    -----------
       Arosa Funding Ltd.         D            CC
       Series 2006-9


BEP CORPORATE: Creditors' Meeting Set for March 30
--------------------------------------------------
The creditors of BEP Corporate Management Limited will hold their
meeting on March 30, 2009, at 2:30 p.m., for the purposes set out
in Sections 241, 242, 243, 244, 251 (1)(a), 255A(2) and 283 of the
Companies Ordinance.

The meeting will be held at Room 202 of Duke of Windsor Social
Service Building, No. 15 Hennessy Road, in Wanchai, Hong Kong.


BEST CONCORD: Creditors' Proofs of Debt Due on April 23
-------------------------------------------------------
The creditors of Best Concord Limited are required to file their
proofs of debt by April 23, 2009, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on March 16, 2009.

The company's liquidator is:

          Ng Kam Chiu
          13A, Tak Lee Commercial Building
          113-117 Wanchai Road
          Wanchai, Hong Kong


BETTER ELECTRICAL: Creditors' Meeting Set for March 30
------------------------------------------------------
The creditors of Better Electrical Products (HK) Company Limited
will hold their meeting on March 30, 2009, at 3:30 p.m., for the
purposes set out in Sections 241, 242, 243, 244, 251 (1)(a),
255A(2) and 283 of the Companies Ordinance.

The meeting will be held at Room 202 of Duke of Windsor Social
Service Building, No. 15 Hennessy Road, in Wanchai, Hong Kong.


BOTHFAIR LIMITED: Creditors' Proofs of Debt Due on April 20
-----------------------------------------------------------
The creditors of Bothfair Limited are required to file their
proofs of debt by April 20, 2009, to be included in the company's
dividend distribution.

The company commenced liquidation proceedings on March 13, 2009.

The company's liquidator is:

          Ho Wai Ip
          c/o Alliance & Associates, CPA's
          World-Wide House
          19th Floor, Room 1903
          19 Des Voeux Road Central
          Hong Kong


BRIDISCO (HONG KONG): Creditors' Proofs of Debt Due on April 3
--------------------------------------------------------------
The creditors of Bridisco (Hong Kong) Limited are required to file
their proofs of debt by April 3, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

          Roderick John Sutton
          Ferrier Hodgson Limited
          The Hong Kong Club Building, 14th Floor
          3A Chater Road
          Central, Hong Kong


CSI SPORTS: Members to Hold Meeting on April 22
-----------------------------------------------
The members of CSI Sports Limited will hold their meeting on
April 22, 2009, at 11:00 a.m., at the 20th Floor of Prince's
Building, in Central, Hong Kong.

At the meeting, Rainier Hok Chung Lam, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


GROWTH LINK: Placed Under Voluntary Wind-Up
-------------------------------------------
At an extraordinary general meeting held on March 13, 2009, the
members of Growth Link Limited resolved to voluntarily wind up the
company's operations.

The company's liquidators are:

          Simon Middleton
          Patrick Cowley
          KPMG
          Prince's Building, 8th Floor
          10 Chater Road
          Central, Hong Kong


INSTANT RICH: Creditors' Proofs of Debt Due on April 21
-------------------------------------------------------
The creditors of Instant Rich Company Limited are required to file
their proofs of debt by April 21, 2009, to be included in the
company's dividend distribution.

The company commenced liquidation proceedings on March 12, 2009.

The company's liquidator is:

          Au Kwok On
          Kwun Tien Mansion, Flat C, 8th Floor
          Taikoo Shing
          Hong Kong


INTEL CHINA: Creditors' Proofs of Debt Due on April 20
------------------------------------------------------
The creditors of Intel China One Technology Limited are required
to file their proofs of debt by April 20, 2009, to be included in
the company's dividend distribution.

The company commenced liquidation proceedings on March 18, 2009.

The company's liquidator is:

          Elizabeth Lynne Eby
          Two Pacific Place, 32nd Floor
          88 Queensway, Central
          Hong Kong


NETWORK MULTIMEDIA: Members and Creditors to Meet on April 21
-------------------------------------------------------------
The members and creditors of Network Multimedia Enterprises
Limited will hold their annual meetings on April 21, 2009, at
3:00 p.m. and 3:30 p.m., respectively, at Room 1601-1602, 16th
Floor of One Hysan Acenue, in Causeway Bay, Hong Kong.

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


SAPHIR FINANCE: Likelihood of Loss Cues S&P's Junk Rating
---------------------------------------------------------
Standard & Poor's Ratings Services said that it has lowered its
rating to 'CCC-', from 'BBB+', on Saphir Finance PLC Series 2008-
11.  The rating remains on CreditWatch with negative implications,
where it was initially placed on Sept. 17, 2008.

The downgrade reflects S&P's view on the likelihood of a loss
being incurred by the transaction. The transaction has Lehman
Brothers Special Financing Inc. as a swap counterparty and Lehman
Brothers Holdings Inc. as a swap guarantor.

S&P understands from the swap documents that the bankruptcy
filings of LBHI and LBSF constitute events of default and
termination in each case; however, the swap is not automatically
terminated.  In the Saphir Finance PLC Series 2008-11 transaction,
the swap counterparty should have posted collateral to cover one
period's premium in advance.  Therefore, the timing of the
termination of the credit default swap, the next payment date, and
the value of the collateral are important factors in the analysis
of this transaction and the timing of any rating action.  Once S&P
receive final payment reports, S&P expects to take further action.
If the notes experience a loss, S&P expects to downgrade the
rating to 'D'; however, if the notes are repaid in full, S&P will
withdraw the rating.

The rating actions taken on the affected transactions are:

  Transaction                        Rating To       Rating From
  -----------                        ---------       -----------
Saphir Finance PLC Series 2008-11  CCC-/Watch Neg  BBB+/Watch Neg


SPL WORLDGROUP: Members to Hold Meeting on April 21
---------------------------------------------------
The members of SPL Worldgroup Hong Kong Limited will hold their
meeting on April 21, 2009, at 11:30 a.m., at the 20th Floor of
Prince's Building, in Central, Hong Kong.

At the meeting, Rainier Hok Chung Lam, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


VICTORY DYEING: Creditors' Meeting Set for March 27
---------------------------------------------------
The creditors of Victory Dyeing Factory Limited will hold their
meeting on March 27, 2009, at 2:30 p.m., for the purposes set out
in Sections 241, 242, 243, 244, 251 (1)(a), 255A(2) and 283 of yje
Companies Ordinance.


WADER ENGINEERING: Members to Hold Annual Meeting on April 2
------------------------------------------------------------
The members of Wader Engineering Company Limited will hold their
annual meeting on April 2, 2009, at 12:00 p.m., at Room 904, 9th
Floor of Chinachem Tower, 34-37 Connaught Road, in Central,
Hong Kong.

At the meeting, Wong Siu Yee, the company's liquidator, will give
a report on the company's wind-up proceedings and property
disposal.


WHS HONG KONG: Gilligan Steps Down as Liquidator
------------------------------------------------
On March 11, 2009, Philip Brendan Gilligan stepped down as
liquidator of WHS Hong Kong Limited.



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AANJANEYA BIOTECH: Strained Liquidity Prompts CRISIL 'B+' Ratings
-----------------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to the bank
facilities of Aanjaneya Biotech Pvt Ltd (Aanjaneya).

   Rs.244 Million Cash Credit      B+/Stable (Assigned)
   Rs.117 Million Long-Term Loan   B+/Stable (Assigned)

The rating reflects Aanjaneya's weak financial risk profile,
strained liquidity, and exposure to revenue concentration.  These
weaknesses are partially offset by the company's strong presence
in the quinine active pharmaceutical ingredient (API) segment.

Outlook: Stable

CRISIL believes that Aanjaneya will continue to benefit from the
favourable changes in the World Health Organisation's regulations,
which have led to a rise in quinine demand, and consequently the
company's growth. The outlook may be revised to 'Positive' if the
company generates higher-than–expected revenues. Conversely, the
outlook may be revised to 'Negative' if Aanjaneya undertakes more
debt to fund capacity expansions, thus weakening its financial
risk profile.

                     About Aanjaneya Biotech

Aanjaneya was set up in 2006, by Mr. K V Vishwanathan and his son
Mr. Kannan Vishwanath for manufacturing anti-malarial APIs from
natural extracts.  The company commenced commercial production at
its facility at Mahad (Maharashtra) in October 2008.  Aanjaneya
extracts anti-malarial APIs such as quinine sulphate and quinine
hydrochloride from the bark of cinchona ledgeriana trees.  The
promoters' had earlier set up Benzo Chemical Industries (Benzochem
LifeSciences Pvt Ltd ) in 1978 for manufacturing basic chemicals
and bulk drugs, which they sold to Arch Pharmalabs Ltd in 2008.


DEV EDUCATIONAL: CRISIL Rates Rs.55.0 Mln Term Loan at 'BB'
-----------------------------------------------------------
CRISIL has assigned its rating of 'BB/Stable' to the term loan
facility of Dev Educational Society.

   Rs.55.0 Million Term Loan      BB/Stable (Assigned)

The rating reflects the society's initial phase of operations,
with no previous track record, and the regulated nature of the
educational sector and the fee structure.  These weaknesses are
mitigated by the healthy demand prospects of the sector.

Outlook: Stable

CRISIL expects Dev Educational Society to complete its polytechnic
college within the budgeted time and cost.  The outlook may be
revised to 'Positive' if the society is able to establish a track
record of healthy cash accruals backed by its ability to attract
students from the surrounding areas.  Conversely, the outlook may
be revised to 'Negative' if there are delays in completion of the
project, adversely impacting the society's ability to service the
debt taken on for the project.

                      About Dev Educational

Dev Educational Society is in the process of setting up its Dev
Polytechnic College in Ambala, Punjab.  The college would offer
diploma courses in civil engineering, computer engineering,
electrical engineering, mechanical engineering, and E.C.E, with 60
seats for each course.  The society's managing committee comprises
nine members, including Mr. Vijay Kumar, Ms. Gurmeet Kaur, Mr.
Jagjeet Singh, and Mr. Jang Bahadur Dahia, who run their own
schools in the Yamuna Nagar and Ambala region.  The project is
expected to be completed in 2009-10 (refers to financial year,
April 1 to March 31) at an estimated cost of Rs.97.4 million.  The
campus is expected to be spread across an area of 125,000 square
feet.  The education sector in Haryana is marked by high level of
competition with the presence of around 125 polytechnic colleges
across the state. Dev Polytechnic College is the society's first
venture into the higher education sector.


MESHCO STEELS: CRISIL Rates Rs.45 Million Cash Credit at 'BB'
-------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4' to the various
bank facilities of Meshco Steels.

   Rs.45 Million Cash Credit          BB/Stable (Assigned)
   Rs.600 Million Letter of Credit    P4 (Assigned)
          / Bank Guarantee

The ratings reflect Meshco Steels' exposure to revenue uncertainty
risks on account of change in business model — from a trader in
steel plates to an intermediary in steel procurement, and the
firm's weak financial flexibility driven by low net worth.
However, these weaknesses are partially offset by the firm's
conservative financial risk profile, and the benefits that it
derives from the promoters' experience and established business
relationships.

Outlook: Stable

CRISIL expects Meshco Steels to maintain an average financial risk
profile over the medium term.  The outlook may be revised to
'Positive' if the firm's business risk profile improves
considerably. Conversely, the outlook may be revised to 'Negative'
if withdrawals by partners result in erosion in net worth for the
firm, or if the firm's exposure to debtors' risk increases
substantially on account of change in business model.

                     About Meshco Steels

Set up in 1991, Meshco Steels currently operates as an
intermediary in the steel market.  Earlier, the firm was a trader
in mild steel plates.  Owing to the prevailing unfavourable
conditions in the steel industry, the firm has hived off its
trading business to its group company, Shah Brothers Ispat Pvt
Ltd.  The firm's operations as an intermediary are handled by Mr.
Dharmesh Shah, a chemical engineer with nearly 20 years of
experience in the industry.

For 2007-08 (refers to financial year, April 1 to March 31),
Meshco Steels reported a profit after tax (PAT) of Rs.49.9 million
on net sales of Rs.1688.3 million, as against a PAT of Rs.56.9
million on net sales of Rs.1406.1 million for 2006-07.


NEXT RETAIL: Fitch Assigns National Long-Term Rating to 'BB+'
-------------------------------------------------------------
Fitch Ratings has assigned NEXT Retail India a National Long-term
rating of 'BB+(ind)'.  The Outlook is Stable.  Fitch has also
assigned a rating of 'BB+(ind)' to NEXT's fund based cash credit
limits of INR2112.5 million.

The ratings take into account NEXT's position as the market leader
in organized electronics retailing.  NEXT with more than 384
outlets across 16 states is India's largest electronics retail
chain.  Fitch notes that NEXT has been able to enjoy favorable
terms with vendors mainly driven by its size and scale.  The
ratings also reflect the substantial increase in the company's
sales over the past few years, as well as the improvements in key
store-level operating metrics, higher average sales per square
foot per annum and higher gross margins.  The ratings also factor
in NEXT's moderate business and strategic linkages to Videocon
Industries Limited (VIL, 'A-(ind)' (A minus(ind))/Negative
Outlook); however in the event of significant deterioration in
VIL's credit profile, this could act as a negative trigger for
NEXT's ratings.

The ratings are constrained by the low margins and the working
capital intensive nature of the business, which have put pressure
on the company's cash flow from operations.  However the working
capital risk is somewhat mitigated by the Franchisee model
(contributing 33% of revenue), wherein some part of working
capital risks are covered by the minimum guarantee contracts.  The
company's level of negative free cash flow was substantial at 46%
of its revenue for FY08, leading to further liquidity pressure.
Additionally, the ratings are constrained by lower interest cover
and higher leverage levels, with EBIT/interest at 1.2x and
adjusted debt/EBITDAR at 8.2x in FY08.  Fitch notes there has been
significant increase in debt largely to fund the working capital
requirement.  The leverage levels are expected to remain high
given the significant inventory requirement and expected capex
plans.  The agency would be monitoring the company's leverage
levels and any material deterioration in interest coverage and
adjusted debt/EBITDA could act as a negative trigger for the
rating.

The ratings are also constrained by a lack of track record, with
only four years of operating history.  Concerns remain regarding
the weaker economic outlook and its impact on the consumer
electronics business.  The company has benefited from the
relatively benign consumer environment; however with macroeconomic
conditions in India deteriorating, this would impact the retailer
putting pressure on its growth and profitability.  Any material
deterioration in NEXT's operating metrics would put further
pressure on ratings.

NEXT is a multi-brand, multi-product electronics goods chain.  For
the year ending March 2008, NEXT had a net revenue of INR6644.4
million (FY07: 2860.1 million), with an EBITDAR margin of 7.2%
(FY07: 4.6%) and a net income of INR21.1 million (FY07: INR7
million).  For the nine months ending December 2008, NEXT had net
revenue of INR6303 million, with an EBITDAR margin of 6.8% and a
net income of INR21 million.


RT STAR: CRISIL Assigns 'P4' Ratings on Various Bank Facilities
---------------------------------------------------------------
CRISIL has assigned its ratings of 'P4' to the various bank
facilities of M/s RT Star Solitaires (RT Star), which is part of
the RT Star group.

   Rs.65.0 Million Export Packing Credit    P4 (Assigned)
   Rs.195.0 Million Post Shipment Credit    P4 (Assigned)
   Rs.47.0 Million Line of Credit           P4 (Assigned)
   Rs.93.0 Million Proposed Short Term      P4 (Assigned)
                   Bank Loan Facility

The ratings reflect the group's weak financial risk profile,
expected deterioration in operating profitability and losses from
cancellation of foreign exchange contracts, which are likely to
result in probable loss at net level in 2008-09 (refers to
financial year, April 1 to March 31).  The ratings also factor the
expected pressure on RT Star's revenues and profitability owing
due to the slowdown in global demand of diamonds and diamond
jewellery.  These weaknesses are, however, partially offset by the
benefits that the firm derives from its promoter's significant
experience in the diamond and jewellery business.

For arriving at the ratings, CRISIL has combined the business and
financial risk profile of M/s RT Star Solitaires, RT Star
Jewellery Pvt. Ltd., and M/s RT Star Diamonds, together known as
the RT Star group.  This is because the entities derive
significant business and operational synergies from each other,
including fungibility of cash flows and common set of promoters.

                      About the RT Star Group
Promoted by Mr. Nitin Shah in 1970, the RT Star group primarily
exports polished diamonds (solitaires) and high-end jewellery.

For 2007-08, (refers to financial year, April 1 to March 31), RT
Star group reported a profit after tax (PAT) of Rs. 63.64 million
on net sales of Rs. 2048.7 million, as against a PAT of Rs. 66.53
million on net sales of Rs. 1263.18 million for 2006-07.

                    About M/s RT Star Solitaires

M/s RT Star Solitaires was started by Mr. Nitin Shah in 2003 with
Mr. Rupesh Shah joining as the partner.  M/s RT Star Solitaires
manufactures large size diamonds/solitaires from 0.5 carats to 3
carats from its manufacturing facility at Surat.  The company is
the wholesale exporter of solitaires to markets in Israel, Hong
Kong, Japan and Europe.

For 2007-08, (refers to financial year, April 1 to March 31), M/s
RT Solitaires reported a profit after tax (PAT) of Rs.9.37 million
on net sales of Rs.1068.32 million, as against a PAT of Rs.7.89
million on net sales of Rs. 536.86 million for 2006-07.


SAHASTRA PROPERTIES: CRISIL Puts 'BB+' Rating on Rs.342.5MM Loan
----------------------------------------------------------------
CRISIL has assigned its rating of 'BB+/Stable' to the term loan
facility of Sahastra Properties Pvt Ltd (Sahastra).

    Rs 342.5 Million Term Loan     BB+/Stable (Assigned)

The rating reflects Sahastra's exposure to risks inherent to the
real estate business, and its small scale of operations.  These
rating weaknesses are partially mitigated by the company's
comfortable operating efficiencies supported by revenues from the
high profit yielding windmill power generation business.

Outlook: Stable

CRISIL expects Sahastra to maintain its stable credit profile on
the back of healthy profitability supported by revenues from the
power business.  The outlook may be revised to 'Positive' in case
of a significant improvement in the company's capital structure.
Conversely, the outlook may be revised to 'Negative' in case of
steep deterioration in its financial risk profile, because of
significant weakening in the capital structure or decline in
operating margins.

                      About Sahastra Properties

Sahastra, which commenced operations in 2000, is mainly engaged in
the real estate business, and wind mill power generation.  The
company has two properties, one each in Mumbai and Pune; the Pune
property has been leased to Tech Mahindra Ltd, whereas the Mumbai
property is put for sale.  Sahastra is planning more commercial
and residential projects over the medium term.  The company has
three wind mills, each of 1.25-megawatts capacity - two in Sangli,
Maharashtra, and one in Jaisalmer, Rajasthan.

For 2007-08 (refers to financial year, April 1 to March 31),
Sahastra posted a profit after tax (PAT) of Rs.20.0 million on net
revenues of Rs.90.0 million, as against Rs. 10.0 million and
Rs.60.0 million respectively in the previous year.


SHRI HARIKRISHNA: Weak Liquidity Cues CRISIL 'B+' Ratings
---------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Negative/P4' to the bank
facilities of Shri Harikrishna Cotton Mills Pvt Ltd (Shri
Harikrishna), a Spictex group company.

   Rs.285.5 Million Long Term Loan        B+/Negative (Assigned)
   Rs.77.5 Million Cash Credit Limits     B+/Negative (Assigned)
   Rs.65.0 Million Letter of Credit       P4 (Assigned)
                   Limits
   Rs.15.5 Million Bank Guarantee Limits  P4 (Assigned)

The ratings reflect the group's weak financial risk profile marked
by weak liquidity, and vulnerability of its margins to
fluctuations in cotton prices.  These weaknesses are mitigated by
the group's established market presence and good customer
relationships.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Shri Harikrishna and Spictex Coton
Mills Pvt Ltd (SCMPL), together referred to as the Spictex group;
this is because both the companies are in the same line of
business (cotton yarn manufacture) under a common management, and
have need-based fungible cash flows.

Outlook: Negative

CRISIL believes that Spictex group's financial risk profile will
remain constrained because of its weak liquidity and highly-
leveraged capital structure.  The ratings may be downgraded if the
liquidity deteriorates further, or if the company incurs higher-
than-expected debt-funded capital expenditure. Conversely, the
outlook may be revised to 'Stable' if there is an equity infusion,
or if sustainable improvement in realisations results in higher
cash accruals and liquidity.

                       About the Group

The Spictex group, promoted by Mr. V Muthusamy, is engaged in the
business of manufacturing cotton yarn with a spindlage of 44,160
nos. Shri Harikrishna, incorporated in 2008, has 19,200 spindles,
while SCMPL, the flagship company, has 24,960 spindles.  The group
also has six knitting machines for garment manufacturing, which it
undertakes on job work basis.  For 2007-08 (refers to financial
year, April 1 to March 31), the group reported a profit after tax
(PAT) of Rs.22.83 million on net sales of Rs.720.59 million, as
against a PAT of Rs.30.18 million on net sales of Rs.631.08
million in the previous year.


SPICTEX COTON: CRISIL Places 'B+' Rating on  Rs.139.7MM LT Loan
---------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Negative/P4' to the bank
facilities of Spictex Coton Mills Pvt Ltd (SCMPL), a Spictex group
company.

   Rs.139.7 Million Long Term Loan       B+/Negative (Assigned)
   Rs.170.0 Million Cash Credit          B+/Negative (Assigned)
                    Limits
   Rs.60.0 Million Letter of Credit      P4 (Assigned)
                   Limits
   Rs.6.0 Million Bank Guarantee         P4 (Assigned)
                  Limits

The ratings reflect the group's weak financial risk profile marked
by weak liquidity, and vulnerability of its margins to
fluctuations in cotton prices.  These weaknesses are mitigated by
the group's established market presence and good customer
relationships.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SCMPL and Shri Harikrishna Cotton Mills
Pvt Ltd (Shri Harikrishna), together referred to as Spictex group;
this is because both the companies are engaged in the same line of
business (cotton yarn manufacture) under a common management, and
have need-based fungible cash flows.

Outlook: Negative

CRISIL believes that Spictex group's financial risk profile will
remain constrained because of its weak liquidity and highly-
leveraged capital structure.  The ratings may be downgraded if the
liquidity deteriorates further, or if the company incurs higher-
than-expected debt-funded capital expenditure.  Conversely, the
outlook may be revised to 'Stable' if there is an equity infusion
into the companies, or if a sustainable improvement in their
realisations results in higher cash accruals and liquidity.

                        About Spictex

The Spictex group, promoted by Mr. V Muthusamy, is engaged in the
business of manufacturing cotton yarn with a spindlage of 44,160
nos. SCMPL, the flagship company, has 24,960 spindles while Shri
Harikrishna, incorporated in 2008, has 19,200 spindles. The group
also has six knitting machines for garment manufacturing, which it
undertakes on job work basis.  For 2007-08 (refers to financial
year, April 1 to March 31), the group reported a profit after tax
(PAT) of Rs.22.83 million on net sales of Rs.720.59 million, as
against a PAT of Rs.30.18 million on net sales of Rs.631.08
million in the previous year.


SUDALAGUNTA SUGARS: Weak Liquidity Prompts CRISIL 'C' Ratings
-------------------------------------------------------------
CRISIL has assigned its ratings of 'C/P4' to the working capital
facilities of Sudalagunta Sugars Ltd (SSL).

   Rs.569.8 Million Cash Credit         C (Assigned)
   Rs.55.2 Million Working Capital      C (Assigned)
                   Demand Loan
   Rs.84.7 Million Letter of Credit/    P4 (Assigned)
                   Bank Guarantee*

   * Includes proposed limit of Rs.67.2 million.

The ratings reflect SSL's weak liquidity.  The company recently
cleared its term loan overdues.

                     About Sudalagunta Sugars

Set up in 1994 by Mr. S Jayaram Chowdary, SSL manufactures white
sugar, and has a cane crushing capacity of 4000 tonnes per day.
The unit is based near Tirupathi in Andhra Pradesh. For 2007-08
(refers to financial year, April 1 to March 31), SSL reported a
profit after tax (PAT) of Rs.18 million on net sales of Rs.0.9
billion, as against a PAT of Rs.27 million on net sales of Rs.1.03
billion in the preceding year.


UNIJULES LIFE: CRISIL Rates Rs.425 Million Cash Credit at 'BB+'
---------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various
bank facilities of Unijules Life Sciences Ltd (Unijules), which is
a part of the Unijules group.

   Rs.425 Million Cash Credit       BB+/Stable (Assigned)
   Rs.80 Million Long Term Loans    BB+/Stable (Assigned)
   Rs.690 Million Proposed Long     BB+/Stable (Assigned)
        Term Bank Loan Facility
   Rs.37.5 Million Bank Guarantee   P4 (Assigned)
          / Letter of Credit

The ratings reflect the group's highly-leveraged capital
structure, and limited financial flexibility.  However, these
weaknesses are partially offset by its well-diversified revenue
profile, strong brand equity in herbals division, and healthy
growth in revenues, driven by capacity expansions.

As part of this rating exercise, CRISIL has combined the business
and financial risk profiles of Unijules and Unijules' majority-
owned subsidiary, ZIM Laboratories Ltd (ZIM Labs). This is because
both companies, together referred to herein as the Unijules group,
have common promoters and management, and are in similar lines of
business.

Outlook: Stable

CRISIL believes that the Unijules group will maintain healthy
growth in revenues and cash accruals on the back of capacity
expansions.  The outlook may be revised to 'Positive' if the group
enhances its capital base by infusing additional equity.
Conversely, the outlook may be revised to 'Negative' if the
Unijules group's expansions are funded largely out of debt,
leading to further deterioration in the capital structure.

                      About Unijules group

The Unijules group has a presence in manufacturing, distribution
and marketing of allopathic and herbal drugs for human and
veterinary consumption.  Its product line includes all dosage
forms (solids, liquids, semisolids, powder and parenterals).  The
group is also involved in organic cultivation of phytochemicals
and extraction facility.

                      About Unijules Life

Unijules was set up in 2006 by transferring the business of
H Jules & Company Ltd (H Jules), and acquiring all the assets of
Universal Medicaments Pvt Ltd (UMPL).  In 2007-08 (refers to
financial year, April 1 to March 31), the company acquired a
50.2 per cent stake in ZIM Labs, which was earlier held directly
by the group's promoters.

For 2007-08, Unijules group reported a profit after tax (PAT) of
Rs.111 million on net sales of Rs.1.6 billion, as against a PAT of
Rs.78.9 million on net sales of Rs.0.88 billion for 2006-07.



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

CSC SERIES: Moody's Changes Ratings on Various Classes of Notes
---------------------------------------------------------------
Moody's Investors Service has changed the ratings of Class A-2
through G-3 and X Bonds issued by CSC Series 1 GK.  The Bonds will
mature in November 2012.  The rating actions follow:

  -- Class A-2 and Class A-3 bonds: Placed under review for
     possible downgrade; previously, Aaa assigned on December 28,
     2006

  -- Class B-2 and Class B-3 bonds: Placed under review for
     possible downgrade; previously, Aa2 assigned on December 28,
     2006

  -- Class C-2 bond: Placed under review for possible downgrade;
     previously, A2 assigned on December 28, 2006 (initial
     issuance date) and on March 1, 2007 (additional issuance
     date)

  -- Class D-2 bond: Placed under review for possible downgrade;
     previously, Baa2 assigned on December 28, 2006 (initial
     issuance date) and on March 1, 2007 (additional issuance
     date)

  -- Class E-2 bond: Placed under review for possible downgrade;
     previously, Baa3 assigned on March 20, 2007

  -- Class E-3 bond: Placed under review for possible downgrade;
     previously, Baa3 assigned on December 28, 2006

  -- Class F-3 bond: Placed under review for possible downgrade;
     previously, Ba2 assigned on December 28, 2006

  -- Class G-3 bond: Placed under review for possible downgrade;
     previously, B2 assigned on December 28, 2006

  -- Class X bond: Placed under review for possible downgrade;
     previously, Aaa assigned on December 28, 2006

The rating action was prompted by an important notice dated March
12, 2009 that Moody's received from the Servicer, and reflects
Moody's strong concerns about the transaction's collateral
recovery, which may depend on the resolution of issues raised in
the notice.

Moody's will monitor the resolution of the issues raised in the
notice as well as overall credit quality of the entire portfolio
to decide whether to confirm or downgrade the ratings.

CSC Series 1 GK, effected in December 2006 and March 2007,
represents the securitization of 11 non-recourse loans originated
by Credit Suisse Securities (Japan) Limited.  Two of the non-
recourse loans have been paid in full, and the transaction is
currently secured by nine non-recourse loans backed by 68
properties.

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.
This release is not a solicitation or a recommendation to buy,
hold, or sell securities.


SFCG CO: To Start Bankruptcy Proceedings Soon
---------------------------------------------
The Tokyo District Court has told SFCG Co Ltd to pursue bankruptcy
proceedings after reports came out it had offered to sell the same
loans to multiple buyers, various reports say.

According to The Japan Times, the lender had hoped to find a
sponsor for its rehabilitation but the court ordered it to scrap
its rehabilitation effort.

"(SFCG) fell behind in its taxes and had its deposits seized, and
on top of those, it was found that the firm (sold) the same large
amount of loans (to different financial institutions)," the Times
cited Hideo Seto, a lawyer tasked as a preservation administrator,
told reporters in Tokyo.  "(SFCG) is expected to have its
moneylender license revoked in the near future."  Mr. Seto said
the amount of loans SFCG sold to different financial institutions,
including Incubator Bank of Japan, totaled around JPY70 billion,
the Times relates.

Given the court decision, the Times says, SFCG is expected to
enter bankruptcy proceedings in about a month.

The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported on Feb. 24, 2009, that SFCG filed for court protection
from creditors with liabilities totaling about JPY338 billion
(US$3.6 billion).  "We can't get funding from almost any financial
firm," Bloomberg News quoted SFCG Chairman Kenshin Ohshima as
saying during a press briefing in Tokyo.

Prior to filing for creditor protection, data compiled by
Bloomberg showed SFCG had a market value of JPY15.8 billion.  SFCG
owed Citigroup Inc. JPY71 billion as of July 31, Bloomberg News
related citing a company filing on Oct. 27.

Japan-based SFCG Co Ltd (TYO:8597) is principally engaged in the
finance and investment business.  The Company has four business
segments.  The Finance and Investment segment is engaged in the
corporate finance business, flooring plan business, investment
business, venture capital and servicer business, among others.
The Real Estate segment is involved in the sale, brokerage and
management of real estate, the provision of real estate-related
information, as well as the provision of real estate evaluation
services.  The Sports Product and Food segment manufactures and
sells golf products, foods and others.  The Others segment is
engaged in the sale of computer components, the development of
systems and the provision of system support, among others.  The
Company has 67 subsidiaries and four associated companies.


YAMATO LIFE: To Resume Operations Under New Name in June
--------------------------------------------------------
Yamato Life Insurance Co. Ltd has submitted a rehabilitation plan
to the Tokyo District Court with the aim of resuming operations
under the aegis of U.S.-based Prudential Financial Inc, The Japan
Times reports citing Kyodo News.

According to a report posted on TMCnet.com, Gibraltar Life
Insurance Co. Ltd., a Japanese subsidiary of Prudential Financial,
is set to take over Yamato Life Insurance in June.  TMCnet.com
notes that as a wholly owned subsidiary of Gibraltar Life, Yamato
Life will be renamed Prudential Financial Japan Life Insurance Co
after approval from the Tokyo court.  Gibraltar Life will then
inject JPY6.99 billion (US$71.2 million) into the new operation,
which will focus on bancassurance, according to TMCnet.com.

The Times relates that to help cover Yamato's negative net worth
of JPY64.3 billion, Gibraltar Life will pay JPY3.2 billion to
acquire the business rights of Yamato while Life Insurance
Policyholders Protection Corp. of Japan, a safety net body of life
insurers, will provide JPY27.8 billion.  The remaining JPY33.3
billion will be covered by the insurer's liability reserves set
aside for insurance payments, TMCnet.com relates citing Yamato
Life in a statement.

Under the rehabilitation plan, the Times discloses, Yamato will
carry out a 10 percent cut in its legal reserves set aside for
future policy benefits and lower the average rate of guaranteed
yields to individual policyholders to 1 percent.  The Times says
Yamato will also apply a surrender charge of up to 20 percent over
the next 10 years to reduce returns in the case of a contract
being canceled before its full expiration.  Yamato hopes to have
its rehabilitation plan approved by the court by April 30, the
Times notes.

As reported in the Troubled Company Reporter-Asia Pacific on
March 4, 2009, Reuters said Prudential Financial agreed to acquire
Yamato Life Insurance Co.

Citing bankruptcy administrator Hideo Seto in a statement posted
on Yamato's Web site, the Times related that the Prudential unit
Gibraltar Life agreed to become the sponsor of Yamato.  The
administrator, the Times noted, did not disclose the terms of the
deal.

On October 13, 2008, the TCR-AP, citing Bloomberg News, reported
that Yamato Life filed for court protection from creditors with
debts exceeding assets by JPY11.5 billion (US$116 million).  The
company went bust with debts of US$2.7 billion, becoming the first
Japanese insurer to go bankrupt in seven years.  According to TCR-
AP, citing Kyodo News, Yamato's financial profile was hurt by
losses from investing in subprime mortgage-backed bonds and other
securities like stocks, whose prices have plunged amid the global
financial crisis.

                        About Yamato Life

Based in Tokyo, Japan, Yamato Life Insurance Co. Ltd., formerly
known as Yamato Mutual Life Insurance Co., provides life insurance
services.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
October 15, 2008, Japan Credit Rating Agency, Ltd., downgraded the
rating on ability to pay insurance claims of Yamato Life from B+p
to Dp and then withdrew the Dp rating.  Yamato Life reported to
Financial Services Agency that it can no longer stay in business
and filed with the Tokyo District Court for protection under the
court-guided rehabilitation law.



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

SAMSUN LOGIX: Chapter 15 Petition Hearing Set for April 15
----------------------------------------------------------
The U.S. Bankruptcy Court for the Southern District of New York
(Manhattan) has scheduled a hearing on April 14, 2009, to consider
Samsun Logix Corporation's Chapter 15 petition.

The hearing will commence 10:00 a.m. before the Honorable Stuart
M. Bernstein at Room 723 of the Bankruptcy Court, One Bowling
Green, in New York City.

Any objection or response to the petition must be submitted no
later than 4:00 p.m. (New York time) on April 7, 2009.

For further information, contact Samsun Logix's special U.S.
counsel:

                 Alston & Bird LLP
                 Attn: Martin G. Bunin Esq.
                       Catherine R. Fenoglio, Esq.
                 90 Park Avenue
                 New York, NY 10016
                 Tel: (212) 210-9492
                 Fax: (212) 922-3892

Samsun Logix filed a Chapter 15 petition on March 11, 2009 in the
Manhattan Court after the company was placed under rehabilitation
proceeding in the Republic of Korea.  Hyun-Chul Hur was appointed
as receiver.

The company's Chapter 15 petition listed estimated assets of more
than US$1 billion and estimated debts of more than US$1 billion.

Based in Seoul, Korea, Samsun Logix Corporation ---
http://www.samsunlogix.com/--- is one of South Korea's largest
bulker operators.  It owns 15 bulkers and has another four new
buildings on order.  The company's fleet comprises capesize,
panamax and handysize vessels built in the 1980s and 1990s.  The
oldest vessel is the 1982-built, 21,289 dwt Ataraxia, while the
youngest is the 1999-built, 69,406 dwt Clio.



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

RANHILL BERHAD: Fitch Affirms IDR at 'B' on Weak Liquidity
----------------------------------------------------------
Fitch Ratings has affirmed Ranhill Berhad's Long-term foreign
currency Issuer Default rating at 'B'.  The Outlook is Stable.  At
the same time, the agency has affirmed the 'B-' (B minus) senior
unsecured rating on the US$220m notes due 2011 issued by Ranhill
(L) Limited and guaranteed by Ranhill and its subsidiaries.

Ranhill's rating reflects the volatile cash flows and risks
associated with fixed-price engineering and construction contracts
which accounted for almost 59% of its total revenues in FY08.  The
company's financial performance was negatively affected by cost
overruns and project delays over the last three years.  While some
of these projects are nearing completion, Ranhill's contract
backlog is quite large, currently standing at around MYR5.5
billion.  A housing project in Libya is the largest with a
contract value of around MYR5 billion; this project too has been
affected by delays and cost overruns.  However, the company is in
the process of renegotiating the terms to reflect increased costs.

Ranhill's liquidity has been weak due to the lackluster
performance of its E&C division, and poor access to cash generated
by its power and water utilities businesses.  However, the
federalization of water assets of Ranhill's 70%-subsidiary, SAJ
Holdings Bhd, is currently underway and is expected to be
completed by Q3 of CY2009.  This would result in SAJH realizing
MYR500 million – MYR800 million from the sale of assets.
Furthermore, following the federalization, Ranhill will have
unrestricted access to cash generated by SAJH improving its
liquidity.

However, in the near-term Ranhill will have to infuse further
equity to construct its second power generation plant, as well as
address cash needs of some of its E&C companies.  While this would
be demanding on Ranhill's liquidity, Fitch believes the situation
is manageable given the federalization of SAJH's water assets is
now underway.

Following the losses suffered by Ranhill in the E&C space, Fitch
expects the company to be more selective and exercise more
discipline when selecting E&C projects in the future.

The Stable Outlook on Ranhill's rating reflects the above factors.
That said, it is important that Ranhill renegotiate the terms of
the Libyan housing project and execute the same to ensure the
project is not a drag on the company's earnings or liquidity.  Its
ratings can be negatively affected if the company's liquidity
position does not improve; this will arise if the company
continues to generate negative cash flows from E&C contracts
and/or the federalizatio of its water assets does not yield the
desired results.

The Recovery Rating of RR5 on the senior unsecured US$ notes
reflects the weak recovery prospects in the event of a default
given the subordination of unsecured creditors.  The recovery
rating and the rating on the US$ notes could be downgraded should
Ranhill's group debt with recourse to Ranhill increase.

Ranhill reported consolidated revenues of MYR1,909 million and
EBITDA of MYR382 million (pre one-off provisions for E&C losses
relating to the Melut Basin project in Sudan) in the financial
year ended June 30, 2008.



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

AUSTRAL PACIFIC: Operates Under Loan Default Waivers by Investec
----------------------------------------------------------------
Austral Pacific Energy Ltd. chief executive officer, Thom Jewell,
said that "Austral has been unable to meet certain
requirements in its loan agreement with Investec Bank, and has
continued to operate under a series of 'default waivers' from
Investec.”

According to Mr. Jewell, the initial $23 million loan from
Investec was paid off during 2008, but further borrowings to
close-out oil sales contracts in May and settling a gas prepayment
liability in December has left the company with a debt of $16.79
million at year-end.

Mr. Jewell says the company has accounted for the debt as a
current liability.  This was a major contributor to the
'significant uncertainty' comment in the accounts, he says.

Mr. Jewell says, "Although the financial statements note, as they
did last year, that there is a 'significant uncertainty' in
relation to the Group's ability to continue as a going concern,
the directors have expressed confidence that the company will be
able to conclude a longer-term plan with its bankers and continue
in operation.

On March 25, 2009, Austral Pacific filed its annual audited
financial statements for the year ended December 31, 2008.  The
company reported continuing liquidity issues, but with the ongoing
support of its lender, has embarked upon a plan to reduce its cost
base and refocus its activities around the producing Cheal field.
The reported loss for 2008 of $43.78 million was driven in large
part by:

   -- write down of the Cheal asset book value (due to reduced
      reserves);

   -- expensing the 2007 Cardiff acquisition and workover costs;
      and

   -- realized losses from settling forward oil sales contracts
      in May 2008.

The reduction in Cheal reserves was driven by lower oil volumes
due to the reduced thickness of the oil bearing reservoir
encountered in the Cheal A6 well and a conservative recovery
factor based on the existing well performance over the past twelve
months.

According to Mr. Jewell, "The valuation of the Cheal field asset
has been calculated on the basis of a zero forward capital spend.
We expect to be able to perform well optimization from cash flow.
Given a stable production operation, we will seek additional
investment for a well drilling program to expand the field and
produce additional resources that are not currently recognised in
our independent reserves report."

Oil sales increased to $11.77 million from $7.34 million in 2007,
due to higher oil prices together with increased production
volumes from a full year's permanent production at Cheal.  The
Cheal A7 well, drilled in July 2008, was brought into production
in August through a temporary connection, and construction of
permanent tie-in facilities is currently underway.

Based in Wellington, New Zealand, Austral Pacific Energy Ltd.
(CA:APX) is an oil exploration and production company.  Austral
Pacific shares are traded in the New Zealand and Toronto stock
exchanges.


LOMBARD GROUP: Appoints Auditors on London as New Auditor
---------------------------------------------------------
Lombard Group has finally managed to appoint a Hamilton-based
firm, Auditors on London, as its new auditor -- six months after
the firm's annual meeting at which it would normally have voted on
the appointment, The National Business Review reports.

The firm's previous auditors, KPMG, resigned last year during a
turbulent time for the company, the report recounts.

                       About Lombard Group

Headquartered in Wellington, New Zealand, Lombard Group Limited
(NZE:LOM) -- http://www.lombardgroup.co.nz/-- is primarily
engaged in the business of investment in a portfolio of
mortgage-secured loan advances and other advances.  This is
carried out through the Company's principal subsidiary, Lombard
Finance & Investments Limited.  Lombard Finance provides
property finance to selected customers.  Lombard Group's lending
within the property sector is secured by property and includes
lending for residential and commercial property investment,
property development, bridging loans and mezzanine finance.  The
company's subsidiary, Lombard Asset Finance Limited, provides
loans to business customers, including hire purchase, lease
finance and general business funding.  In March 2008, the
company's wholly owned subsidiary, Lombard Mortgages Limited,
acquired the remaining 30% interest in Tasman Mortgages Limited.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2008, Lombard Group said that its financial performance
for the year ended March 31, 2008, has been dramatically affected
by the receivership of the Group's significant subsidiary, Lombard
Finance & Investments Limited, which occurred on April 10, 2008.
While the audited Group result is a loss of NZ$3.26 million, the
Board recognizes that does not reflect the full impact of the
receivership.


TRITEC MANUFACTURING: Sells Mountain Buggy to Phil & Teds
---------------------------------------------------------
Tritec Manufacturing has sold its subsidiary, Mountain Buggy New
Zealand, to New Zealand firm Phil&teds, The National Business
Review reports.

"We're incredibly excited about adding value and building the
business even further," the news agency quoted Phil&teds Chief
Executive Campbell Gower as saying.  "Basically it will be
business as usual to ensure that we maintain market confidence in
the high quality Mountain Buggy brand and product," Mr. Gower
adds.

According to the report, Mountain Buggy has 89 staff and a factory
out in Lower Hutt, which will continue to operate in the short
term.

Citing The National Business Review, the Troubled Company
Reporter-Asia Pacific reported on January 20, 2009, that Tritec
Manufacturing has gone into receivership, as a result of the
international downturn.

Tritec Manufacturing Ltd is the producer of the Mountain Buggy
pram.



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

LEGACY GROUP: SEC Adds Former Treasurer in Criminal Complaint
-------------------------------------------------------------
The Philippine Securities and Exchange Commission has named a
former treasurer of Legacy Group, Namnama D. Pasetes, as one of
the respondents in a criminal complaint filed by SEC against the
group, Business World reports.

Ms. Pasetes had claimed before the Senate Committee on Trade and
Commerce that Parañaque Rep. Eduardo C. Zialcita was one of those
who protected Legacy Group Chairman Celso G. de los Angeles, Jr.,
the report recounts.

The report also noted that Ms. Pasetes and another former Legacy
executive, Caronila G. Hiñola, had also claimed that Mr. De los
Angeles used Legacy funds for his personal use, including his bid
for the mayorship of Sto. Domingo, Albay in 2007.

                            House Probe

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 27, 2009, the Philippine Daily Inquirer said the Legacy Group
allegedly amassed between PHP15 billion and PHP25 billion in
deposits over the last three years due to an aggressive marketing
scheme, which promised depositors 20 percent in annual returns.
To address risk concerns, the Inquirer stated, the cash deposits
are spread out through the Legacy chain of banks to keep each
deposit within the maximum limit of the PDIC.  According to the
Inquirer, Mr. De los Angeles is the owner of 13 banks with 29
branches nationwide under the Legacy banner.

In 2008, the Inquirer recalled, the BSP shuttered the Rural Bank
of Parañaque; Rural Bank of Bais (in Negros Oriental province);
Pilipino Rural Bank (in Cebu); Rural Bank of San Jose (in
Batangas); Philippine Countryside Bank (in Cebu); Dynamic Bank
(Rural Bank of Calatagan, in Batangas); San Pablo City Development
Bank; Nation Bank (in Bacolod City) and the Bank of East Asia (in
Cebu) due to insolvency.

                       About Legacy Group

Headquartered in Quezon City, Philippines, The Legacy Group --
http://www.legacy.com.ph/thelegacy.html-- is a conglomerate of
banks and pre-need companies.  The banks offer various financial
products and pre-need firms have pension, education and memorial
plans.  Other members of The Group are companies that provide
credit cards, micro-lending and automotive financing services.



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

TEAM ENERGY: Creditors' & Contributories' Meeting Set for March 31
------------------------------------------------------------------
The creditors and contributories and Team Energy Asia-Pacific
Singapore Pte. Limited will hold their meeting on March 31, 2009,
at 2:00 p.m.

The company's liquidator is:

         Ee Meng Yen Angela
         c/o Ernst & Young Solutions LLP
         One Raffles Quay
         North Tower, Level 18
         Singapore 048583


TRANSBILT ENGINEERING: Creditors' Proofs of Debt Due on April 17
----------------------------------------------------------------
The creditors of Transbilt Engineering Pte Ltd are required to
file their proofs of debt by April 17, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

         Goh Ngiap Suan
         c/o Goh Ngiap Suan & Co
         336 Smith Street
         #06-308 New Bridge Centre
         Singapore 050336



===========
T A I W A N
===========

TAIWAN CORPORATION: Moody's Downgrades Ratings on 2007-1 Certs.
---------------------------------------------------------------
Moody's Taiwan Corporation announced it has downgraded its
national scale ratings of three classes of beneficiary
certificates issued by E.Sun Bank 2007-1 Collateralized Bond
Obligations Special Purpose Trust.

The rating actions taken are the result of the downgrade to C from
Caa2 of US$ 149,375,000 Class C Mezzanine Floating Rate Deferrable
Interest Notes Due 2047 issued by Triaxx Funding High Grade I,
Ltd.  The US$ notes currently contributes about 77% of the
underlying pool of CBO assets, following NTD 2.5 billion
amortizations of some of the NTD-denominated bonds since closing.
Additionally, as more underlying NTD asset matures, the impact on
the Class A1 certificates of the potential cross currency swap
breakage cost upon a potential US$ notes default will increase
over time.  The rating of the certificates will be more sensitive
to the NTD/US$ exchange rate and interest rate movement, which may
affect the ultimate repayment to the certificates as breakage
costs are senior in the payment waterfall to Class A1 beneficiary
certificates.

Moody's initially analyzed and continues to monitor this
transaction using primarily the methodology and its supplements
for Taiwanese CDOs as described in Moody's Special Reports below:

  -- Moody's Rating Approach to Taiwanese CDO Transactions
     (February 2006)

  -- Moody's Approach To Rating Corporate Collateralized Synthetic
     Obligations (March 2009)

The rating actions are:

E.Sun Bank 2007-1 Collateralized Bond Obligations (CBO) Special
Purpose Trust:

(1) NTD 4,000 million Class A1 Beneficiary Certificates

  -- Current Rating: Caa2.tw

  -- Prior Rating: Baa3.tw, on review for possible downgrade

  -- Prior Rating Date: 11 July 2008, downgraded from A2.tw with
     direction uncertain to Baa3.tw and placed under review for
     possible downgrade

(2) NTD 4,400 million Class B1 Beneficiary Certificates

  -- Current Rating: C.tw

  -- Prior Rating: Caa3.tw, on review for possible downgrade

  -- Prior Rating Date: 11 July 2008, Caa3.tw with direction
     uncertain changed to under review for possible downgrade

(3) NTD 560 million Class B2 Beneficiary Certificates

  -- Current Rating: C.tw

  -- Prior Rating: Caa3.tw, on review for possible downgrade

  -- Prior Rating Date: 11 July 2008, Caa3.tw with direction
     uncertain changed to under review for possible downgrade

Moody's National Scale Ratings are intended as relative measures
of creditworthiness among debt issues and issuers within a
country, enabling market participants to better differentiate
relative risks.  NSRs in Taiwan are designated by the ".tw"
suffix.  NSRs differ from global scale ratings in that they are
not globally comparable to the full universe of Moody's rated
entities, but only with other rated entities within the same
country.



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

* IATA Sees US$4.7BB Losses in 2009 for Global Airline Industry
---------------------------------------------------------------
The International Air Transport Association (IATA) disclosed a
revised outlook for the global air transport industry with losses
of US$4.7 billion in 2009.  This is significantly worse than
IATA's December forecast for a US$2.5 billion loss in 2009,
reflecting the rapid deterioration of the global economic
conditions.

Industry revenues are expected to fall by 11.7% (US$62 billion) to
US$467 billion.  By comparison, the previous revenue decline,
after the events of September 11, 2001, saw industry revenues fall
by US$23 billion over the period of 2000 to 2002 (approximately
7.0%).

"The state of the airline industry today is grim.  Demand has
deteriorated much more rapidly with the economic slowdown than
could have been anticipated even a few months ago.  Our loss
forecast for 2009 is now US$4.7 billion.  Combined with an
industry debt of US$170 billion, the pressure on the industry
balance sheet is extreme," said Giovanni Bisignani, IATA's
Director General and CEO.

Demand is projected to fall sharply with passenger traffic
expected to contract by 5.7% over the year.  Revenue implications
of this fall will be exaggerated by an even sharper fall in
premium traffic.  Cargo demand is expected to decline by 13.0%.
Both are significantly worse than the December forecast of a 3.0%
drop in passenger demand and a 5.0% fall in cargo demand.  Yields
are expected to drop by 4.3%.

Falling fuel prices are helping to curb even larger losses.  With
an expected fuel price of US$50 per barrel (Brent oil), the
industry's fuel bill is expected to drop to 25% of operating costs
(compared to 32% in 2008 when oil averaged US$99 per barrel).
Combined with lower demand, total expenditure on fuel will fall to
US$116 billion (compared to US$168 billion in 2008).

"Fuel is the only good news.  But the relief of lower fuel prices
is overshadowed by falling demand and plummeting revenues.  The
industry is in intensive care.  Airlines face two immediate
fundamental challenges: conserving cash and carefully matching
capacity to demand," said Mr. Bisignani.

IATA also revised its forecast losses for 2008 from US$5.0 billion
to US$8.5 billion.  The fourth quarter of 2008 was particularly
difficult as carriers reported large hedging-related losses and a
very sharp fall in premium travel and cargo traffic.

Regional differences remain significant:

Asia Pacific: Carriers in this region continue to be hardest hit
by the current economic turmoil and are expected to post losses of
US$1.7 billion (significantly worse than the previous loss
forecast of US$1.1 billion).  Japan, the region's largest market
is expected to see GDP drop by 5.5% in 2009 with exports already
in freefall.  China has been successful in stimulating demand in
domestic markets with pricing adjustments.  International demand
to and from China is expected to contract by between 5% and 10%
over the year.  India, whose market for international air services
tripled in size between 2000 and 2008, is expected to see capacity
increase by 0.7% in 2009, while demand drops between 2% and 3%.
Overall, the region is expected to see a 6.8% fall in demand but
only a 4.0% drop in capacity.

North America: Carriers in this region are expected to deliver the
best performance for 2009 with a combined US$100 million profit. A
7.5% fall in demand is expected to be matched by a 7.5% cut in
capacity.  Despite the worsening economic conditions, this is
relatively unchanged from the earlier forecast of a US$300 million
profit.  Carriers are benefiting from careful capacity management
and lower spot prices for fuel.

Europe: Europe's carriers are expected to lose US$1 billion in
2009.  A forecast 2.9% fall in the continent's GDP is expected to
result in a drop in demand of 6.5%. Capacity cuts of 5.3% will not
keep pace with the fall in demand, driving yields and
profitability down.

Latin America: While Latin America is forecast to maintain
positive GDP growth in 2009, the collapse in demand for commodity
products is expected to see traffic plunge by 7.8%.  Carriers are
only expected to be able to drop capacity by 3.8% resulting in
losses of US$600 million.

Africa: African carriers are expected to produce 2009 losses of
US$600 million.  This is six times the US$100 million lost in
2008.  The continent's carriers are losing market share on long-
haul routes. Demand is expected to drop by 7.8% with only a 6.0%
fall in capacity.

Middle East: Middle East will be the only region with demand
growth in 2009 (+1.2%).  But this will be overshadowed by the
impact of a 3.8% increase in capacity.  While this is
significantly below the double-digit growth of previous years, the
region continues to add capacity ahead of demand.  The result is
expected to be a loss of US$900 million (a slight deterioration
from the US$800 million loss recorded in 2008).

Looking ahead:

Much of the deterioration forecast for 2009 had already happened
by January.  As manufacturers end their de-stocking there should
be a modest bounce in air freight as component shipping rises a
little.  But weak consumer and business confidence is expected to
keep spending and demand for air transport low.

"The prospects for airlines are dependant on economic recovery.
There is little to indicate an early end to the downturn. It will
be a grim 2009.  And while prospects may improve towards the end
of the year, expecting a significant recovery in 2010 would
require more optimism than realism," said Mr. Bisignani.

Mr. Bisignani also cautioned that this crisis must bring change.
"Recovery will not come without change.  There is no doubt that
this is a resilient industry capable of catalysing economic
growth. But we are structurally sick.  The historical margin of
this hyper-fragmented industry is 0.3%.  Bail-outs are not the
prescription to return to health.  Access to global capital, the
ability to merge and consolidate and the freedom to access markets
are needed to run this industry as normal profitable business.
This is IATA's Agenda for Freedom - and a very cost effective
solution for governments desperate to stimulate their economies,"
said Mr. Bisignani.


* S&P Downgrades Ratings on 38 on 37 Asia-Pacific Synthetic CDOs
----------------------------------------------------------------
Standard & Poor's Ratings Services lowered 38 ratings on 37 Asia-
Pacific (excluding Japan) synthetic collateralized debt
obligations.  Fifteen ratings on these CDOs remain on CreditWatch
with negative implications, while 23 ratings were removed from
CreditWatch negative.  In addition, the ratings on three other
CDOs were affirmed and taken off CreditWatch negative.

The downgrades listed in Table 1 below reflect the increased
credit risk of underlying portfolios in the respective
transactions.  The synthetic rated overcollateralization levels
for tranches that have been downgraded fell below 100% at their
current rating levels during the SROC analysis for the month of
February.  This indicates that the available credit enhancement
for each of the tranches is lower than the minimum level to
maintain its current rating.  Where the SROC is less than 100%,
scenarios that project the current portfolio 90 days into the
future are run, assuming no asset rating migration.  Where this
projection indicates that the SROC would return to a level above
100%, the rating is maintained, but placed on CreditWatch
negative.  If the projection indicates that the SROC would remain
below 100%, the rating is immediately lowered.  If the rating on
the tranche is lowered to 'CCC-' and the SROC at 'CCC-' continues
to be less than 100%, the rating is not placed on CreditWatch
negative if in S&P's assessment, the aggregate loss is lower than
the available subordination in the respective portfolios.  The
SROC remains lower than 100% because of the implicit negative bias
within the 'CCC-' rating.

                            Table 1

                   Aphex Pacific Capital Ltd.

Deal Name              Rating To            Rating From          SROC %
---------              ---------            -----------          ------
Series 5 DESIGN 2006   B/Watch Neg          BB-/Watch Neg        99.3278

                        ARLO IX Ltd. 2007

  Deal Name              Rating To            Rating From          SROC %
  ---------              ---------            -----------          ------
(Pascal SCO A-1)      BB-                  BB+/Watch Neg        100.0230
Athenee CDO PLC
Series 2007-4         BB+                  BBB/Watch Neg        100.0947
Athenee CDO PLC
Series 2007-5         BBB-                 BBB/Watch Neg        100.1152
Athenee CDO PLC
Series 2007-6         BB+                  BBB/Watch Neg        100.0947
Athenee CDO PLC
Series 2007-7         BB+                  BBB/Watch Neg        100.0947
Athenee CDO PLC
Series 2007-12        BBB-                 BBB/Watch Neg        100.1152
Athenee CDO PLC
Series 2007-14        BB+                  BBB/Watch Neg        100.0947
ARLO Ltd.
Series 2006 (OCL-1)   CCC                  CCC+/Watch Neg       100.1273
Beryl Finance Ltd.
Series 2008-4         BBB+pNRi/Watch Neg   ApNRi/Watch Neg      100.0216
Beryl Finance Ltd.
Series 2008-6         CCC+pNRi/Watch Neg   BpNRi/Watch Neg      100.7404
Beryl Finance Ltd.
Series 2008-14        B-pNRi/Watch Neg     BB-pNRi/Watch Neg    100.1797
Chess II Ltd.
Series 2004-7         AA                   AAA/Watch Neg        100.1699
Chess II Ltd.
Series 2004-8         A-/Watch Neg         AA-/Watch Neg        99.6897
Corsair (Jersey) No. 2 Ltd.
Series 68             B+                   BB/Watch Neg         100.0057
Corsair (Jersey) No. 2 Ltd.
Series 89             CCC-                 CCC/Watch Neg        100.1775
Corsair (Jersey) No. 2 Ltd.
Series 91             CCC-                 CCC/Watch Neg        100.1796
Dragon A (CDS BNP)     BBBsrp/Watch Neg     BBB+srp/Watch Neg    99.6733
Dragon AA (CDS BNP)    A+srp/Watch Neg      AA-srp/Watch Neg     99.5537
Echo Funding Pty Ltd.
Series 18             B/Watch Neg          BB-/Watch Neg        99.9425
Eirles Two Ltd.
Series 241            B                    B+/Watch Neg         100.0129
Magnolia Finance I PLC
Series 2006-21        B-                   B+/Watch Neg         100.0049
Magnolia Finance I PLC
Series 2006-22        B-                   B+/Watch Neg         100.0049
Mahogany Capital Ltd.
Series II             CCC+pNRi/Watch Neg   B-pNRi/Watch Neg     N/A
Morgan Stanley Managed
ACES SPC Series 2006-12
Class IIA             CCC-                 CCC+/Watch Neg       99.8226
Morgan Stanley ACES SPC
Series 2006-31        BB-                  BB+/Watch Neg        100.0850
Morgan Stanley Managed
ACES SPC Series 2006-7
Class IA              CCC+                 B/Watch Neg          100.0104
Morgan Stanley ACES SPC
2007-9 Class III
(Principal)           B-p/Watch Neg        Bp/Watch Neg         99.7092
Morgan Stanley ACES SPC
2007-9 Class III
(Interest)            CCC-i                CCC+i/Watch Neg      101.9748
Morgan Stanley ACES SPC
2007-21 Class I       B+/Watch Neg         BB-/Watch Neg        99.9784
Morgan Stanley ACES SPC
2007-29               BB-                  BB/Watch Neg         100.3900
Obelisk Trust 2005-1   BBB-/Watch Neg       BBB+/Watch Neg       99.3173
Rembrandt Australia
Trust 2004-2          BBB+/Watch Neg       AA/Watch Neg         98.6877
Saphir Finance PLC
Series 2006-5         CCC+pNRi/Watch Neg   B-pNRi/Watch Neg     100.3330
Signum Platinum I Ltd.
Series 2006-1         CCC-                 CCC+/Watch Neg       100.4990
STARTS (Cayman) Ltd.
Series 2007-35        CCC-                 CCC+/Watch Neg       100.1568
XELO PLC Series 2006
(Spinnaker III Asia
Mezz) Tranche A        BB                   BBB-/Watch Neg       100.0487
XELO PLC Series 2007
(Spinnaker III Asia
Mezzanine 2) Tranche C BB/Watch Neg         BB+/Watch Neg        99.9736

The rating on DBS Bank Ltd. SG$100 million portfolio credit-linked
notes (Table 2) was taken off CreditWatch negative and affirmed,
following a restructuring of the portfolio, which resulted in an
improvement in its credit quality.

                               Table 2

  Deal Name                   Rating To     Rating From     SROC %
  ---------                   ---------     -----------     ------
DBS Bank Ltd. SG$100 mil.
portfolio credit-linked
notes                       AA-           AA-/Watch Neg   103.9364

The ratings on ELM B.V. Series 99 and ELM B.V. Series 112 (Table
3) were removed from CreditWatch negative and the ratings
affirmed, as in S&P's assessment, the aggregate loss is lower than
the available subordination in the respective portfolios.  The
SROC remains lower than 100% because of the implicit negative bias
within the 'CCC-' rating.

                             Table 3

     Deal Name             Rating To   Rating From      SROC %
     ---------             ---------   -----------      ------
     ELM B.V. Series 99    CCC-        CCC-/Watch Neg   99.3709
     ELM B.V. Series 112   CCC-        CCC-/Watch Neg   98.5622



                         *********

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.  Pius Xerxes V. Tovilla, Valerie C. Udtuhan,
Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante,
Marie Therese V. Profetana, Frauline S. Abangan, and Peter A.
Chapman, Editors.

Copyright 2009.  All rights reserved.  ISSN: 1520-9482.

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

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





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