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

                     A S I A   P A C I F I C

           Wednesday, May 13, 2009, Vol. 12, No. 93

                            Headlines

A U S T R A L I A

ADMIRALTY RESOURCES: Settles Legal Actions With Wyndham
GREAT SOUTHERN: Shares Remain Suspended
KLEENMAID: Administrators Close to Selling EDIS Service Unit
RIVIERA: Receivers May Not Sell Firm
TRONOX INC: Sues Anadarko, Kerr-McGee for Fraudulent Conveyance


H O N G  K O N G

ALUMINUM ASSOCIATION: Chan Lok Sang Steps Down as Liquidator
BESTWAY TRANSPORTATION: Members' Final Meeting Set for June 10
CHIU WING: Commences Wind-Up Proceedings
CONCORD CAMERA: Placed Under Voluntary Wind-Up
FONNEX ENTERPRISES: Placed Under Members' Wind-Up

HENKEL ASIA-PACIFIC: Creditors' Proofs of Debt Due on June 8
HOI PING: Placed Under Voluntary Wind-Up
KAR SHING: Creditors' Proofs of Debt Due on May 29
MEMEC ELECTRONIC: Commences Wind-Up Proceedings
THE TRAVEL AND TOURISM: Creditors' Proofs of Debt Due on May 22


I N D I A

H.P. MADHUKAR: Low Net Worth Cues CRISIL 'BB' Ratings
JAWANDSONS: CRISIL Assigns 'BB' Rating on Rs.7.40 Mln Term Loan
SHAH ALLOYS: CARE Assigns 'CARE D' Rating on LT Bank Facilities
SHILPA RE-ROLLERS: CRISIL Rates INR96.0MM Long Term Loan at 'BB+'
TATA MOTORS: May Opt for Overseas Bond Issue to Repay JLR Loan

TATA MOTORS: To Raise GBP1 Bln; Seeks Banks to Underwrite EIB Loan
TATA STEEL: Selling Bonds Worth US$101 Million to Pay Debts
TATA TELESERVICES: Fourth Quarter Loss Widens to Rs 159.60cr


I N D O N E S I A

BANK DANAMON: May Acquire Additional 20% in Adira in July
DAVOMAS ABADI: Share Trading Suspended
PT INCO: Seeks Gov't. OK for Another 2Yrs to Review Nickel Project
TELEKOMUNIKASI: 1st Qtr. Net Profit Down 23.4% to IDR2.5 Trillion


J A P A N

AMERICAN INT'L: To Sell Prime Tokyo Real Estate to Nippon Life
BEARINGPOINT INC: Committee Objects to Deal on Japan Sale Proceeds
BRIDGESTONE CORP: Expects Wider Half Year 2009 Net Loss
COSMO SECURITIES: JCR Withdraws '#B+' Senior Debts Rating
ISUZU MOTORS: Posts JPY26.86 Billion Net Loss in FY2008

JAPAN AIRLINES: Must Cut More Costs to Get Gov't Aid


N E W  Z E A L A N D

AIR NEW ZEALAND: Could Be in Merger Talks By End of Year
LANE WALKER: Receivers Seeking Buyers for Entire Business
LOMBARD FINANCE: Receivers Unveil Delay in Investors Payout
WIDESPREAD ENERGY: Posts NZ$516,000 Loss in Year Ended March 2009


P A P U A  N E W  G U I N E A

BANK OF SOUTH: S&P Assigns Issuer Rating on Subordinated Notes


P H I L I P P I N E S

PRUDENTIALIFE: Assures to Continue Payment Despite License Revoke
* LEGAGY GROUP: PDIC Taps P&A to Conduct Forensic Investigation


S I N G A P O R E

ALL BUILDING: Creditors' Proofs of Debt Due on May 22
ASIA PULP: Agrees to a Debt Revamp Plan With Gramercy Advisors
FINA FAR: Creditors' Proofs of Debt Due on June 8
LARES PERMARINI: Creditors' Proofs of Debt Due on June 8
MPF-01 PTE: Court to Hear Wind-Up Petition on May 22

SAW SPECIALIST: Creditors' Proofs of Debt Due on May 29
SIEMENS ENERGY: Creditors' Proofs of Debt Due on June 8


S O U T H  A F R I C A

SAPPI LTD: S&P Downgrades Issuer Credit Ratings to 'BB-'


U N I T E D  A R AB  E M I R A T E S

NATIONAL BANK: Fitch Affirms Individual Rating at 'C/D'


X X X X X X X X

* Upcoming Meetings, Conferences and Seminars


                         - - - - -


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

ADMIRALTY RESOURCES: Settles Legal Actions With Wyndham
-------------------------------------------------------
Admiralty Resources NL said it has reached a comprehensive
settlement with Wyndham Explorations SA, ending all legal suits in
Chile and Australia.

In a statement to the Australian Securities Exchange, Admiralty
Resources said it would acquire from Wyndham the remaining 40
percent of the shares in its 60 percent owned subsidiary, Vallenar
Iron Company.

The terms of the settlement agreement are:

   -- The company and Wyndham, agree to desist in the current
      legal actions that they have taken against each other
      as a result of disputes between the parties and have
      agreed to not take any further legal action against
      each other in the future in relations to these disputes.

   -- The parties provide each other with mutual releases with
      the exception of the royalty agreements.

   -- Admiralty Resources acquires 100 percent control of S.B.
      Graneles, S.A. for a consideration equivalent to
      US$44,000 payable by no later than July 10, 2009.
      S.B. Graneles S.A. has cash on deposit equivalent
      to US$507,000.

   -- Vallenar Iron and Wyndham agree to the division of
      the stockpile yard at the Port of Punta Caleta equally
      between them.

   -- Vallenar Iron agrees to pay mining royalties to an
      associate of Wyndham of US$250,000 per annum for a
      period of 20 years.  Any other agreement for the
      royalties ceases.  The company will have the rights
      to purchase these royalties at anytime on or after
      January 1, 2014, for US$2,000,000.

   -- The Japonesa Master Agreement, which previously
      regulated the relationship between the parties, is
      terminated.  As a result, Wyndham will no longer be
      entitled to appoint any directors to the board of
      directors of Vallenar Iron.

   -- The company acquires the remaining 40 percent of
      the shares in Vallenar Iron from Wyndham for a
      consideration of US$1,500,000 payable by no later
      than July 10, 2009.

   -- Vallenar Iron receives a payment of US$100,000 from
      Wyndham.  None of the parties will seek any additional
      financial compensation from each other.

   -- Each party bears their own legal costs.

"This agreement between the parties give the company 100 percent
control of Vallenar Iron and its mineral concessions," the company
said.

Admiralty Resources will also cease its actions to require
Vallenar Iron to repay amounts previously advanced by the company
now that Vallenar Iron becomes a wholly-owned subsidiary.

                   About Admiralty Resources

Admiralty Resources NL (ASX:ADY) -- http://www.ady.com.au/-- is
an Australia-based company that is engaged in the exploration and
development of economic mineral deposits, including minerals
occurring in brine lake deposits.  The Company is involved in four
main projects: the Rincon Salar, Argentina, lithium carbonate,
lithium hydroxide, lithium chloride, and potash project; the Cia
Minera Santa Barbara, Chile, iron ore joint venture, through its
60% interest therein; the Pyke Hill, Australia, nickel and cobalt
joint venture, through its 50% interest therein, and the Bulman,
Australia, zinc and lead project.  On July 26, 2007, the Company
acquired an extra 10% stake in Cia Minera Santa Barbara (CMSB).
The Company's subsidiaries include Rincon Lithium Ltd, Bulman
Resources Pty Ltd, Pyke Hill Resources Pty Ltd and ADY Investments
Pty Ltd.  The Company acquired the Rio Grande sodium sulphate
deposit during the fiscal year ended June 30, 2008 (fiscal 2008).

                        *     *     *

Admiralty Resources NL reported three consecutive net losses of
AU$32.75 million, AU$8.56 million and AU$7.47 million for the
financial years ended June 30, 2008, 2007 and 2006, respectively.


GREAT SOUTHERN: Shares Remain Suspended
---------------------------------------
Great Southern Limited has requested its shares be placed in
voluntary suspension for another week, ABC Rural reports.

The report, citing Great Southern in a statement with the
Australian Securities Exchange, says the company is preparing its
2009 managed investment sales program.

According to the report, the company has until October to find a
way to repay or renegotiate more than AU$100 million in debt.

Great Southern has more than 40,000 investors and 180,000 hectares
of forest plantations, the report discloses.  It incurred AU$63.80
million net loss for the year ended September 30, 2008.

Great Southern Limited (ASX:GTP) -- http://www.great-
southern.com.au/ -- is engaged in the development, marketing,
establishment and management of agribusiness-based projects. The
Company provides finance, directly and through third party
financiers, to approved investors who wish to invest in the
Company's projects.  The Company also acquires and manages
farmland and other agribusiness related properties which are held
for long term investment.  It operates an agricultural investment
services business offering two key products: agricultural managed
investment schemes, which is provision of MIS products in the
forestry and agribusiness sector, and agricultural funds
management, which are agricultural investment funds providing
investors exposure to a portfolio of agricultural assets.


KLEENMAID: Administrators Close to Selling EDIS Service Unit
------------------------------------------------------------
The administrators of Kleenmaid are hopeful in finding a buyer for
the company's spare parts and repairs section in the next week or
two, The Sydney Morning Herald reports citing AAP.

According to the report, EDIS Service Logistics has remained
operating, despite Kleenmaid being placed in the hands of
administrators Deloitte, owing AU$76 million to creditors.

Work was progressing on finding a buyer for EDIS, a spokesman told
AAP on Tuesday.  "In the next week or two we will be going to
final offers," the spokesman said as cited in the report.

The report relates that expressions of interest have been sought
to buy any or all of the Kleenmaid group's 14 businesses.

Citing various reports, the Troubled Company Reporter-Asia Pacific
reported on April 13, 2009, that Kleenmaid has been placed into
administration.  The company appointed Deloitte partners John
Greig, Richard Hughes and David Lombe as voluntary administrators.

Founded in 1985, Kleenmaid -- http://www.kleenmaid.com.au/--
sells kitchen and laundry appliances.


RIVIERA: Receivers May Not Sell Firm
------------------------------------
The receivers of luxury boat builder Riviera said that the company
may not be sold as first thought, The Sydney Morning Herald
reports citing AAP.

The report, citing Deloitte receiver Chris Campbell, said
expressions of interest have been received for Riviera, which
employs about 550 workers, but that was not the only option for
the company's future.

"Given the current economic climate it is likely that the best
return to creditors is likely to come from a restructure and
turnaround of the operations of the business, rather than an
immediate sale," the report quoted Mr. Campbell as saying in a
statement on Tuesday.  "The first priority of receivers and
managers has been to turn the supply chain back on, reassure
employees and customers... that the network of Australia's largest
luxury boat building company is still up and running."

According to the report, Mr. Campbell said receivers would have a
better idea of Riviera's financial situation - and future
employment - within about two weeks.

As reported in the Troubled Company Reporter-Asia Pacific on
May 12, 2009, Brisbane Times said Riviera has been placed in
voluntary receivership.  Deloitte partners Chris Campbell,
Vaughan Strawbridge and Richard Hughes have been appointed
receivers and managers of Riviera.  According to the Brisbane
Times, Mr. Campbell said the company's sales over the past 12
months had been "significantly impacted" by the global financial
crisis.  It was proposed to sell Riviera as a going concern after
a restructuring of the company, he said.  The Brisbane Times said
Riviera shed 117 of its Gold Coast staff in January and cut more
than 300 staff from its Coomera headquarters in 2008.  The company
also closed its production line for three weeks, from April 10 to
May 5, in a bid to clear stock held by international dealers, the
Brisbane Times added.

Riviera --http://www.riviera.com.au/--is a luxury boat builder
based in Australia.


TRONOX INC: Sues Anadarko, Kerr-McGee for Fraudulent Conveyance
---------------------------------------------------------------
Tronox Incorporated yesterday filed an adversary complaint against
Kerr-McGee Corporation and its successor, Anadarko Petroleum
Corporation, in its Chapter 11 cases in the United States
Bankruptcy Court for the Southern District of New York.  The
complaint asserts that Kerr-McGee defrauded Tronox's creditors
through its separation and spin-off of its former chemical
subsidiary in 2006.


Tronox seeks recovery for fraudulent transfers involving valuable
oil and gas assets and massive actual and contingent
environmental, tort, retiree and other liabilities.  The complaint
asserts that Tronox was doomed to fail at the time of the spin
off, having been grossly undercapitalized, stripped of its most
valuable assets and essential cash, and overburdened with legacy
environmental, tort and retiree liabilities.  Less than three
years after the spin-off, Tronox filed for chapter 11 bankruptcy
protection on January 12, 2009.

Anadarko acquired New Kerr-McGee less than five months after the
Spinoff was completed and the Legacy Liabilities severed.  New
Kerr-McGee's shareholders approved on August 10, 2006, Anadarko's
offer of $16.4 billion in cash and assumption of $1.6 billion in
debt.  New Kerr-McGee became and remains a wholly owned subsidiary
of Anadarko.

According to TRONOX BANKRUPTCY NEWS, since acquiring New Kerr-
McGee, Anadarko has admitted that it could be financially
responsible for the Legacy Liabilities should Tronox fail.  In
both its 2006 and 2007 Annual Reports, Anadarko stated "Kerr-McGee
could be subject to joint and several liability for certain costs
of cleaning up hazardous substance contamination attributable to
the facilities and operations conveyed to Tronox if Tronox becomes
insolvent or otherwise unable to pay for certain remediation
costs.  As a result of the merger, we will be responsible to
provide reimbursements to Tronox pursuant to the MSA, and we may
be subject to potential joint and several liability, as the
successor to Kerr-McGee, if Tronox is unable to perform certain
remediation obligations."

At the time Tronox filed for bankruptcy, John Christiansen, a
spokesman for Anadarko, said in an e-mailed statement to The
Houston Chronicle that a reserve of $100 million, the company's
maximum obligation to reimburse Tronox, already has been recorded
on its balance sheet.  "The filing of a bankruptcy petition by
Tronox does not alter our liability," the newspaper said quoting
Mr. Christiansen as saying.

                     Legacy Liabilities

According to TRONOX BANKRUPTCY NEWS, pursuant to the Spinoff
Agreements, New Kerr-McGee forced Tronox to assume the Legacy
Liabilities, including unknown, implied and contingent Legacy
Liabilities and obligations.  The Legacy Liabilities are almost
entirely unrelated to the operation of Tronox's core titanium
dioxide businesses.  The most significant of the Legacy
Liabilities relate to:

  (a) environmental remediation and cleanup at allegedly
      contaminated sites of the Legacy Businesses;

  (b) defense of tort suits brought by third parties arising
      from alleged hazardous releases and contamination related
      to the Legacy Businesses; and

  (c) welfare, benefit and pension obligations for former Old
      Kerr-McGee employees who once worked for the Legacy
      Businesses.

Since the Spinoff, Tronox has spent more than $118 million to
satisfy the residual Legacy Liability obligations.  A nominal
amount of that figure relates to titanium dioxide operations,
Mr. Barton says.  As a result of these Legacy Liabilities, Tronox
is required to maintain a large environmental remediation group
that is responsible for remediation and other activities on
approximately 100 sites related to the Legacy Businesses.

As of January 12, 2009, Tronox has spent a total of approximately
$148 million on environmental remediation costs.  Over time,
Tronox has been reimbursed for approximately $75 million of this
amount from various third parties.  New Kerr-McGee, however, has
only contributed approximately $4 million through the indemnity
provisions of the MSA.

On the petition date, Tronox was defending approximately 120 tort
suits related to a variety of hazardous materials that were
allegedly released by the Legacy Businesses, including but not
limited to creosote, benzene, low-level radioactive substances and
asbestos.  These suits involve thousands of plaintiffs and have
cost Tronox at least $26.9 million (net of reimbursements) to
manage since the Spinoff.  Significant suits include, among
others, claims related to former wood-treatment plants located in
Columbus, Mississippi, Avoca, Pennsylvania, and Texarkana, Texas,
including a group of 238 federal court suits with more than 2,000
plaintiffs and a group of 35 state court suits with more than
4,000 plaintiffs.

In conjunction with the Spinoff, New Kerr-McGee also required
Tronox to assume responsibility for retirement and other employee
benefit liabilities for current and former employees of the
Chemicals Business and the Legacy Businesses pursuant to the
terms of an Employee Benefits Agreement.  Tronox Inc. was
required to sponsor specific employee and retiree benefit plans
for the employees and retirees allocated to it during the
Spinoff.  These programs included defined benefit and retiree
medical and life insurance plans.  These benefit programs were
not competitive but Tronox was required to maintain the programs,
and could not modify them, for three years after the completion
of the Spinoff.  The cost of these benefit programs was more than
$6 million per year.

                         About Tronox Inc.

Headquartered in Oklahoma City, Tronox Incorporated (Pink Sheets:
TRXAQ, TRXBQ) is the world's fourth-largest producer and marketer
of titanium dioxide pigment, with an annual production capacity of
535,000 tonnes.  Titanium dioxide pigment is an inorganic white
pigment used in paint, coatings, plastics, paper and many other
everyday products.  The company's four pigment plants, which are
located in the United States, Australia and the Netherlands,
supply high-performance products to approximately 1,100 customers
in 100 countries.  In addition, Tronox produces electrolytic
products, including sodium chlorate, electrolytic manganese
dioxide, boron trichloride, elemental boron and lithium manganese
oxide.

Tronox has $1.6 billion in total assets, including $646.9 million
in current assets, as at September 30, 2008.  The company has
$881.6 million in current debts and $355.9 million in total
noncurrent debts.

Tronox Inc., aka New-Co Chemical, Inc., and 14 other affiliates
filed for Chapter 11 protection on January 13, 2009 (Bankr. S.D.
N.Y. Case No. 09-10156).  The case is before Hon. Allan L.
Gropper. Richard M. Cieri, Esq., Jonathan S. Henes, Esq., and
Colin M. Adams, Esq., at Kirkland & Ellis LLP in New York,
represent the Debtors.  The Debtors also tapped Togut, Segal &
Segal LLP as conflicts counsel; Rothschild Inc. as investment
bankers; Alvarez & Marsal North America LLC, as restructuring
consultants; and Kurtzman Carson Consultants serves as notice and
claims agent.

An official committee of unsecured creditors and an official
committee of equity security holders have been appointed in the
cases.  The Creditors Committee has retained Paul, Weiss, Rifkind,
Wharton & Garrison LLP as counsel.

Until September 30, 2008, Tronox Inc. was publicly traded on the
New York Stock Exchange under the symbols TRX and TRX.B.  Since
then, Tronox Inc. has traded on the Over the Counter Bulletin
Board under the symbols TROX.A.PK and TROX.B.PK.  As of
December 31, 2008, Tronox Inc. had 19,107,367 outstanding shares
of class A common stock and 22,889,431 outstanding shares of
class B common stock.

Bankruptcy Creditors' Service, Inc., publishes Tronox Bankruptcy
News.  The newsletter tracks the chapter 11 proceeding undertaken
by Tronox Inc. and its 14 affiliates.

(http://bankrupt.com/newsstand/or 215/945-7000)



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

ALUMINUM ASSOCIATION: Chan Lok Sang Steps Down as Liquidator
------------------------------------------------------------
On April 30, 2009, Chan Lok Sang stepped down as liquidator of
Aluminum Association Limited.


BESTWAY TRANSPORTATION: Members' Final Meeting Set for June 10
--------------------------------------------------------------
The members of Bestway Transportation Limited will hold their
final general meeting on June 10, 2009, at 10:00 a.m., at Room
1802 Harbour Centre, 25 Habour Road, in Wanchai, Hong Kong.

At the meeting, Cheng Seng Chong Edward, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


CHIU WING: Commences Wind-Up Proceedings
----------------------------------------
On April 23, 2009, Chiu Wing Enterprise Company Limited commenced
wind-up proceedings.

The company's liquidators are:

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


CONCORD CAMERA: Placed Under Voluntary Wind-Up
----------------------------------------------
On April 30, 2009, the sole shareholder of Concord Camera HK
Limited passed a resolution that voluntarily winds up the
company's operations.

The company's liquidators are:

          Wong Kim Fai Paul
          Ira Lampert
          Jardine House, Suite 4120
          1 Connaught Place, Central
          Hong Kong


FONNEX ENTERPRISES: Placed Under Members' Wind-Up
-------------------------------------------------
At an extraordinary general meeting held on April 27, 2009, the
members of Fonnex Enterprises Limited resolved to voluntarily wind
up the company's operations.

The company's liquidator is:

          Lau Mui Sum
          Sun Hung Kai Centre
          Rooms 1621-33, 16th Floor
          30 Harbour Road
          Hong Kong


HENKEL ASIA-PACIFIC: Creditors' Proofs of Debt Due on June 8
------------------------------------------------------------
The creditors of Henkel Asia-Pacific Limited are required to file
their proofs of debt by June 8, 2009, to be included in the
company's dividen distribution.

The company's liquidators  are:

          Thomas Andrew Corkhill
          Iain Ferguson Bruce
          Gloucester Tower, 8th Floor
          The Landmark
          15 Queen's Road
          Central, Hong Kong


HOI PING: Placed Under Voluntary Wind-Up
----------------------------------------
At an extraordinary general meeting held on April 30, 2009, the
members of Hoi Ping Cheung Kiu Village Clansmen's Association
Limited resolved to voluntarily wind up the company's operations.

The company's liquidator is:

          Wu Wallen
          Tesbury Centre, 16th Floor
          28 Queen's Road East, Admiralty
          Hong Kong


KAR SHING: Creditors' Proofs of Debt Due on May 29
--------------------------------------------------
The creditors of Kar Shing Restaurant, Limited are required to
file their proofs of debt by May 29, 2009, to be included in the
company's dividend distribution.

The company's liquidator is:

          Lin Lai Har Wendy
          1301 Eton Tower, 8 Hysan Avenue
          Causeway Bay
          Hong Kong


MEMEC ELECTRONIC: Commences Wind-Up Proceedings
-----------------------------------------------
On April 27, 2009, a resolution was passed that voluntarily winds
up Memec Electronic Components (AP) Limited's operations.

The company's liquidators are:

          Rainier Hok Chung Lam
          John James Toohey
          Prince's Building, 22nd Floor
          Central, Hong Kong


THE TRAVEL AND TOURISM: Creditors' Proofs of Debt Due on May 22
---------------------------------------------------------------
The creditors of The Travel and Tourism Education Programme (H.K.)
Limited are required to file their proofs of debt by May 22, 2009,
to be included in the company's dividend distribution.

The company's liquidators are:

          Edward Simon Middleton
          Patrick Cowley
          Alexandra House, 27th Floor
          18 Chater Road
          Central, Hong Kong



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

H.P. MADHUKAR: Low Net Worth Cues CRISIL 'BB' Ratings
-----------------------------------------------------
CRISIL has assigned its ratings of 'BB/Negative/P4' to the bank
facilities of HP Madhukar (HP).

   INR44.5 Million Bank Overdraft      BB/Negative (Assigned)
   INR17.5 Million Long Term Loan      BB/Negative (Assigned)
   INR2.5 Million Cheque Discounting   P4 (Assigned)
   INR125.5 Million Bank Guarantee     P4 (Assigned)

The ratings reflect HP's moderate financial risk profile marked by
high gearing and low net worth.  This weakness is partially offset
by HP's established presence in the infrastructure segment in
Northern Karnataka, its healthy operating efficiencies, and the
benefits it derives from the experience of its promoters.

Outlook: Negative

CRISIL believes that HP's liquidity is constrained over the short
term by the working capital intensive nature of the business,
which results in intermittent overutilization of bank lines.  The
rating may be downgraded if the strain on liquidity results into
consistent overutilization of bank limits or significant delays in
execution of its projects.  Conversely, the outlook may be revised
to 'Stable' if HP demonstrates consistent and successful
management of its liquidity.

                        About HP Madhukar

HP is a proprietorship concern of Mr. H P Madhukar, established in
1988.  It undertakes engineering and civil contracts for
government and semi-government projects.  The firm is mainly
engaged in road development and water supply projects.  HP
reported a profit after tax (PAT) of INR10.7 million on net sales
of INR157 million for 2007-08 (refers to financial year, April 1
to March 31), as against a PAT of INR9.1 million on net sales of
INR148 million for 2006-07.


JAWANDSONS: CRISIL Assigns 'BB' Rating on Rs.7.40 Mln Term Loan
---------------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank
facilities of Jawandsons.

   INR7.40 Million Term Loan            BB/Stable (Assigned)
   INR180.00 Million Export Packing     P4 (Assigned)
               Credit  
   INR15.00 Million Overdraft           P4 (Assigned)
   INR12.70 Million Letter Of Credit    P4 (Assigned)

The ratings reflect Jawandsons' small scale of operations in the
fragmented and competitive home textiles business, working
capital-intensive operations, revenue concentration (a single
customer accounts for 80 per cent of its revenues), and the
vulnerability of its margins to volatility in raw material prices.
These weaknesses are mitigated by Jawandsons' moderate financial
risk profile and established relationship with its main customer.

Outlook: Stable

CRISIL expects Jawandsons' operations to remain small, and its
financial risk profile moderate.  The outlook may be revised to
'Positive' in case of a substantial improvement in the firm's
scale of operations and capital structure.  Conversely, the
outlook may be revised to 'Negative' in case of aggressive capital
expenditure, resulting in deterioration in the capital structure,
or significant withdrawal of capital by the partners.

                        About Jawandsons

Jawandsons is a partnership firm, set up by Mr. S Jagmohan Singh
and his family members in 2000.  The firm manufactures and exports
home furnishing and hosiery products.  Jawandsons's single largest
customer, Ikea India Trading Pvt Ltd, accounts for more than 80
per cents of its sales.  Jawandsons reported a profit after tax
(PAT) of INR39.8 million on net sales of INR869 million in
2007-08 (refers to financial year, April 1 to March 31), against
INR36 million and INR675 million, respectively, in 2006-07.


SHAH ALLOYS: CARE Assigns 'CARE D' Rating on LT Bank Facilities
---------------------------------------------------------------
CARE has assigned a 'CARE D' (Single D) rating to the Long-term
Bank Facilities of Shah Alloys Ltd. (SAL).  Facilities with 'CARE
D' rating are of the lowest category.  Such facilities are either
in default or are likely to be in default soon.  Also, CARE
assigned a 'PR 5' [PR Five] rating to the Short-term Bank
Facilities of SAL.  Facilities with 'PR 5' rating are in default
or are likely to be in default on maturity.

                                Amount
   Instrument                 (Rs.crore)        Rating
   ----------                 ----------        ------
   Long-term Bank Facilities    446.93         'CARE D'
   Short-term Bank Facilities   111.07         'PR 5'

The ratings factor in SAL's recent availment of CDR (Corporate
Debt Restructuring) package, weakened financial profile as
reflected by the operating losses incurred in Q1FY09, significant
erosion in networth, high gearing levels and poor debt protection
ratios indicating susceptibility to further defaults.  Ratings
also factor in its presence in a cyclical industry, lack of
captive mines for key raw materials and low capacity utilisation.
Further the statutory auditors have suggested that the internal
audit system of the company is to be strengthened.  These
constraints far outweigh SAL's track record in the domestic
stainless steel industry.

                        About Shah Alloys

SAL, promoted by Shri Rajendra Shah in 1990, is engaged in the
manufacturing of wide range of Stainless Steel (SS) products viz.
flats, rounds, black/bright bars, slabs, plates, billets, Hot
Rolled Coil (HRC) and Cold Rolled Coil (CRC).  It has also
implemented a backward integration project through its group
company, SAL Steel Limited (SSL), which is engaged in
manufacturing of Sponge Iron and Ferro Alloys.  Due to heavy
losses suffered by SAL in FY08, it faced severe liquidity crisis
which resulted in the company defaulting in repayment of its
principal and interest obligations to banks/financial
institutions and also defaulted in the payment of interest to
debenture holders.  There was L/C devolvement to the extent of
Rs.200 crore.  Considering the financial difficulties faced by the
company, it approached the Corporate Debt Restructuring (CDR) Cell
which has sanctioned a comprehensive debt restructuring scheme in
Jan'2008.

SAL registered a negative growth of 27.68% in its total income in
FY08 because of decline in sales quantity of SS flats, SS slabs
and SS HR/CR coils.  Also, its export realisations were adversely
impacted by the appreciation of the INR against the USD in
FY08. During FY08, PBILDT and PAT margins of SAL turned negative.
The long-term debt equity ratio deteriorated from 1.04 times as on
March 31, 2007 to 3.94 times as on March 31, 2008 because of
significant erosion of its networth on account of losses incurred
by it as well as due to increase in working capital term loan and
funded interest term loan as part of the restructuring scheme
sanctioned by the CDR cell.  Consequently, its overall gearing
also increased from 1.74 times as on March 31, 2007 to times as on
March 31, 2008.

Because of losses incurred by it in FY08, SAL's interest coverage
as well as cash interest coverage turned negative.

The prospects of the company in the short to medium term would be
governed by its ability to ensure optimum utilisation of its
existing capacity for higher value added products.  Lack of
captive mines for key raw materials will continue to result in
volatility in its operating margins.


SHILPA RE-ROLLERS: CRISIL Rates INR96.0MM Long Term Loan at 'BB+'
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the various
bank facilities of Shilpa Re-Rollers Pvt Ltd (SRPL).

   INR350.0 Million Cash Credit        BB+/Stable (Assigned)
   INR96.0 Million Long Term Loan      BB+/Stable (Assigned)
   INR35.0 Million Standby Line of     BB+/Stable (Assigned)
                   Credit
   INR29.0 Million Proposed Long Term  BB+/Stable (Assigned)
                   Bank Loan Facility

   INR30.0 Million Bank Guarantee      P4 (Assigned)

The ratings reflect SRPL's established market presence in the
angles and TMT bars segment, moderate financial risk profile, and
the benefits that the company derives from the promoters'
experience.  These strengths are, however, partially offset by
SRPL's exposure to risks relating to limited visibility on payoffs
from proposed transmission tower initiative.

Outlook: Stable

CRISIL believes that SRPL will maintain a stable business risk
profile on the back of experienced promoters and established
relations with existing customers.  The outlook may be revised to
'Positive' if the company's profitability margins and debt
protection metrics improve considerably.  Conversely, the outlook
may be revised to 'Negative' if company's profitability margins
and debt protection indicators deteriorate.

                     About Shilpa Re-Rollers

SRPL, set up in 1989 by Mr. K K Bagaria, manufactures angles and
TMT bars.  The company has manufacturing units in Nagpur
(Maharashtra), with an installed capacity of 100,000 tonnes per
annum. SRPL reported a profit after tax (PAT) of INR117.4 million
on net sales of INR2149.6 million for 2007-08 (refers to financial
year, April 1 to March 31), as against a PAT of INR107.3 million
on net sales of INR1600.3 million for 2006-07.


TATA MOTORS: May Opt for Overseas Bond Issue to Repay JLR Loan
--------------------------------------------------------------
The Economic Times reports that Tata Motors Ltd may opt for an
overseas bond issue to partly repay a US$2-billion bridge loan due
in June.

Citing people familiar with the auto major's preparations, the
report discloses the company may also sell part of its
shareholding in various groups of companies.

"So the group may be looking at a bond issue tenor of more than
five years," the report quoted one person familiar with the
working of the plan as saying.  "Also, such a bond issue would
have to be backed by a Tata group asset, either in India or
overseas."

Tata, the report recalls, had raised about US$3 billion in bridge
loans to acquire luxury carmaker Jaguar Land Rover (JLR) in 2008.
The report states while about US$1 billion was repaid through a
rights issue, the remaining US$2 billion has to be repaid by June.

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Mar. 27, 2009, Standard & Poor's Ratings Services lowered its
corporate credit rating on India-based automaker Tata Motors Ltd.
to 'B+' from 'BB-'.  The rating remains on CreditWatch with
negative implications, where it was placed on Dec. 12, 2008.  At
the same time, S&P lowered its issue rating on the company's
senior unsecured notes to 'B+' from 'BB-' and also kept the rating
on CreditWatch with negative implications.

S&P said the rating action follows material deterioration in Tata
Motors' cash flows and related metrics on a consolidated basis,
derived from an adverse operating environment, which, combined
with significantly high debt levels, will affect its credit
protection measures beyond those consistent with a 'BB' rating
category.


TATA MOTORS: To Raise GBP1 Bln; Seeks Banks to Underwrite EIB Loan
------------------------------------------------------------------
Jaguar Land Rover, owned by India's Tata Motors, is planning to
raise up to GBP1 billion by September to keep the cash-starved
company afloat without the British government's help, The Times of
India reports citing British publication The Guardian.

The report relates according to the Guardian, the Tatas have
mandated financial adviser Citigroup to find banks with solid
credit rating, prepared to underwrite some of the GBP340 million
loan pledged by the European Investment Bank (EIB).  The report
discloses the newspaper added the Tatas are also seeking to tap
the debt-markets to help secure the GBP500 million to GBP1 billion
short-term financing package needed.  However, the report notes
the Guardian said "Even if Tata can raise more debt and find banks
willing to underwrite part of the EIB loans, the cost of the
financing will be very high."

The report recalls the Tatas have rejected the British
government's conditions for underwriting some of the EIB loan to
secure immediate and short-term help, arguing "it can secure
better terms independently".  The Guardian, meanwhile, said talks
are continuing about putting together a longer-term financing
package involving a consortium of banks, led by state-controlled
Lloyds Banking Group, the report states.

As reported in the Troubled Company Reporter-Europe on May 8,
2009, Telegraph.co.uk, citing sources close the negotiations,
disclosed the terms of the loan set by the government for
underwriting the EIB loan, which is intended for the development
of green technology, include the right to demand a veto over all
decisions taken by the company, the ability to choose the
chairman, a permanent seat on the board, extra investment into JLR
of GBP300 million by Tata, and guarantees of no further job cuts
among the 15,000 UK employees.  Telegraph.co.uk noted the
government has also said it will only guarantee GBP175 million of
the loan and that, if it is taken up, it will charge JLR 15pc of
the total to provide it.

India's largest automobile company, Tata Motors Limited --
http://www.tatamotors.com/-- is mainly engaged in the business
of automobile products consisting of all types of commercial and
passenger vehicles, including financing of the vehicles sold by
the company.  The company's operating segments consists of
Automotive and Others.  In addition to its automotive products,
it offers construction equipment, engineering solutions and
software operations.  TML is listed on the Bombay Stock
Exchange, the National Stock Exchange of India and New York
Stock Exchange.  It was ultimately 33.4% owned by the Tata Group
as of December 2007.

Tata Motors has operations in Russia and the United Kingdom.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Mar. 27, 2009, Standard & Poor's Ratings Services lowered its
corporate credit rating on India-based automaker Tata Motors Ltd.
to 'B+' from 'BB-'.  The rating remains on CreditWatch with
negative implications, where it was placed on Dec. 12, 2008.  At
the same time, S&P lowered its issue rating on the company's
senior unsecured notes to 'B+' from 'BB-' and also kept the rating
on CreditWatch with negative implications.

S&P said the rating action follows material deterioration in Tata
Motors' cash flows and related metrics on a consolidated basis,
derived from an adverse operating environment, which, combined
with significantly high debt levels, will affect its credit
protection measures beyond those consistent with a 'BB' rating
category.


TATA STEEL: Selling Bonds Worth US$101 Million to Pay Debts
-----------------------------------------------------------
Tata Steel is raising INR5 billion (US$101 million) by selling
10-year bonds, Reuters reports citing a term sheet.

Reuters relates that the company is selling 10-year unsecured
bonds with an annual coupon of 10.40 percent.  The issue is due to
close on Friday, May 15, with settlement on the same day, the term
sheet said as cited in the report.  Standard Chartered Bank is the
sole arranger.

According to Reuters, the bonds are part of planned INR20 billion
debt sales by Tata Steel.  The report discloses that the bond
programme has been rated 'AA' by Fitch, which has said the funds
will partly be used for additional equity infusion in Tata Steel
UK to prepay some of its debt.

                    About Tata Steel Limited

Headquartered in Mumbai, India, Tata Steel Limited --
http://www.tatasteel.com/--  is a diversified steel producer.
It has operations in 24 countries and commercial presence in
over 50 countries.  Its operations predominantly relate to
manufacture of steel and ferro alloys and minerals business.
Other business segments comprises of tubes and bearings.  Tata
Metaliks Limited, which is engaged in the business of
manufacturing and selling pig iron, became a subsidiary of the
Company with effect from Feb. 1, 2008.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
April 7, 2009, Fitch Ratings downgraded Tata Steel Limited's Long-
term foreign currency Issuer Default Rating to 'BB+' from 'BBB-'
(BBB minus), and its National Long-term rating to 'AA(ind)' from
'AAA(ind)'.  Simultaneously, Fitch also downgraded Tata Steel
U.K. Ltd's Long-term foreign currency IDR to 'B+' from 'BB'.  The
Outlook on all the ratings continues to be Negative.

The TCR-AP reported on March 6, 2009, that Moody's Investors
Service downgraded the corporate family rating of Tata Steel Ltd
to Ba2 from Ba1.  The rating remains on review for possible
further downgrade.


TATA TELESERVICES: Fourth Quarter Loss Widens to Rs 159.60cr
------------------------------------------------------------
The Economic Times reports that Tata Teleservices (Maharashtra)
Limited ("TTML") said its net loss for the fourth quarter ended
March 31, 2009 widened to Rs 159.60 crore, from Rs 125.73 crore in
the corresponding period a year ago.

The report, citing TTML in a filing to the Bombay Stock Exchange,
says the company's total income rose 14.77 per cent to Rs 2,053.96
crore for the March quarter, from Rs 1,789.60 crore in the
corresponding period a year ago.

On a consolidated basis, the report discloses, TTML posted a net
loss of Rs 169.94 crore in FY'09 and the total income stood at
Rs 2,058.06 crore.

Tata Teleservices (Maharashtra) Limited is an Indian company
engaged in the business of providing telecommunication services,
which include basic services, cellular services and broadband
services for retail and enterprise. The Company provides
services in about 357 towns and cities in the States of
Maharashtra and Goa through its telephone exchanges located at
Turbhe (Navi Mumbai), Nariman Point (Mumbai), Marol (Mumbai),
Andheri (Mumbai), Pune, Nasik, Panaji, Nagpur and Kolhapur.
During the fiscal year ended March 31, 2007, the Company rolled
out code division multiple access (CDMA) wireless services in
186 towns in Maharashtra and Goa.  The Company holds two Unified
Access (basic and cellular) Services Licences (UASLs), one for
Mumbai Metro area and another for rest of Maharashtra and Goa.
The Company also holds the National Internet Service provider –
Internet Telephony license.  The Company is a subsidiary of Tata
Sons Limited.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
June 3, 2008, Tata Teleservices (Maharashtra) Limited incurred two
consecutive annual net losses -- INR1.26 billion in fiscal year
ended March 31, 2008, and INR3.15 billion in fiscal year ended
March 31, 2007.



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

BANK DANAMON: May Acquire Additional 20% in Adira in July
---------------------------------------------------------
The Jakarta Post reports that PT Bank Danamon Indonesia Tbk Bank
aims to complete the acquisition of a 20 percent stake in local
financing firm PT Adira Finance in July.  The bank currently owns
75 percent stake in Adira, the report says.

According to the report, Chief Financial Officer Vera Eve Lim said
the company would first seek approval from shareholders in a
meeting on May 25.

"After that, we hope that we can seal the deal by the end of
July," Ms. Lim was quoted by the Post as saying.  The deal had a
value of IDR1.4 trillion (US$135.8 million), or equal to IDR8,000
a share, she added.

The report relates Ms. Lim said that the company would finance the
acquisition from internal funds.

                        About Bank Danamon

Headquartered in Jakarta, Indonesia, PT Bank Danamon Indonesia
Tbk provides a range of products and services, including
Consumer Banking, Small to Medium-Sized Enterprise and
Commercial, Trade Finance, Treasury Product, Cash Management,
Other Services, Financial Planning and e-Banking.  Danamon
Syariah is the Bank's business unit that provides its customers
with syariah banking products and services.  The bank also
operates Danamon Simpan Pinjam, which caters to micro banking
customers.  DSP is divided into two groups: DSP to serve and
help enterprises in micro and small-scale banking, and DSP for
individual customers with fixed income.  Bank Danamon is
supported by 86 domestic branch offices, 325 domestic supporting
branch offices, 25 domestic cash office, 739 supporting branches
for DSP, six personal banking branch offices, 10 syariah branch
offices and one overseas branch.

                          *     *     *

As reported by the Troubled Company Reporter - Asia Pacific on
July 28, 2008, Fitch Ratings affirmed the ratings of PT Bank
Danamon Indonesia Tbk as: Long-term foreign currency Issuer
Default Rating at 'BB' with a Stable Outlook, Short-term foreign
currency IDR at 'B', National Long-term Rating at 'AA(idn)' with
a Stable Outlook, Individual Rating at 'C/D', Support Rating at
'3', Support Rating Floor at 'BB-'.


DAVOMAS ABADI: Share Trading Suspended
--------------------------------------
Trading in PT Davomas Abadi' shares was suspended on Tuesday,
May 12, by the Indonesia Stock Exchange, The Jakarta Post reports.

The report, citing IDX in a statement issued Tuesday, says the
suspension was due to the company's failure to pay 11 percent of
interest for its Guaranteed Senior Secured Notes, worth US$238
million.

The IDX has asked the company for an explanation, the report says.

Headquartered in Jakarta, Indonesia, PT Davomas Abadi Tbk
processes cocoa beans into cocoa butter and cocoa powder.

The Troubled Company Reporter-Asia Pacific reported on March 5,
2009, that Standard & Poor's Ratings Services placed its 'B+'
long-term corporate credit rating on Indonesia-based PT Davomas
Abadi Tbk. on CreditWatch with negative implications.  At the same
time, S&P also placed the 'B+' issue rating on the senior secured
notes due 2011 on CreditWatch with negative implications.  The
notes were issued by Davomas International Finance Co. Ltd., a
special purpose financing vehicle wholly owned by PT Davomas
Abadi.

On April 17, 2009, the TCR-AP reported that Moody's Investors
Service downgraded to Caa1 from B2 the corporate family rating of
PT Davomas Abadi Tbk and senior secured bond rating of Davomas
International Finance Company Pte Ltd, which is guaranteed by
Davomas.  This rating action concludes the review for possible
downgrade initiated on March 27, 2009.  The outlook on the ratings
is negative.


PT INCO: Seeks Gov't. OK for Another 2Yrs to Review Nickel Project
------------------------------------------------------------------
PT International Nickel Indonesia (Inco) has asked the government
for another two years to review once more the feasibility of a
US$1.8 billion nickel smelter project in Pomalaa, Southeast
Sulawesi, The Jakarta Post reports.

The report, citing Inco president director Arif Siregar, says the
request was made after the company submitted to the government the
first feasibility study that concluded the smelter project was not
commercially feasible during the current slump in nickel prices.

"Therefore, we ask for another two years to come up with a more
comprehensive report about the project and we hope by that time,
the global nickel market will have recovered," the Post quoted
Arif as saying.

                          About PT Inco

Headquartered in Jakarta, Indonesia, PT International Nickel
Indonesia Tbk -- http://pt-inco.co.id-- is a nickel producer
with a production facility and mine are in Sorowako, Sulawesi,
where it has a contract agreement until 2025.  It produces
nickel matte, an intermediate product, from lateritic ores at
its integrated mining and processing facilities near Sorowako on
the island of Sulawesi.  Inco Limited of Canada holds a 60.8%
stake of the company and Sumitomo Metal Mining Co Ltd. holds a
20.1% stake.

                          *     *     *

As of May 12, 2009, the company carried Standard and Poor's
Ratings Service's "BB-" long-term foreign and local issuer
credit ratings; and Fitch Rating's "BB" LT Issuer Default
rating.


TELEKOMUNIKASI: 1st Qtr. Net Profit Down 23.4% to IDR2.5 Trillion
-----------------------------------------------------------------
PT Telekomunikasi Indonesia (Telkom) booked a lower net profit for
the first quarter of this year at IDR2.5 trillion (US$243 million)
from IDR3.2 trillion in the same period last year, Jakarta Post
reports.

For the first quarter, the company also reported lower revenue by
2.2% to IDR14.7 trillion, while its operational spending rose
10.9% to IDR9.4 trillion, The Post relates.

According to the report, the biggest fall in revenue came from the
company's fixed line services, which dropped by 17% to
IDR2.1 trillion, while interconnection revenue fell by 15% to
IDR 1.9 trillion.  Data and internet services also decreased by
6% to IDR3.7 trillion, the report adds.

                     About PT Telkom Indonesia

Based in Bandung, Indonesia, PT Telekomunikasi Indonesia Tbk
-- http://www.telkom-indonesia.com/-- provides local and long
distance telephone service in Indonesia.  Known as Telkom, the
company also offers fixed wireless service, leased lines, and
data transport through affiliates.

                          *     *     *

As reported by the Troubled Company Reporter–Asia Pacific on
November 17, 2008, Fitch Ratings affirmed P.T. Telekomunikasi
Indonesia Tbk's Long-term foreign and local currency Issuer
Default ratings at 'BB'.  The Outlook is Stable.



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

AMERICAN INT'L: To Sell Prime Tokyo Real Estate to Nippon Life
--------------------------------------------------------------
American International Group, Inc., has disclosed an agreement to
sell its prime real estate holding in Tokyo for approximately
$1.2 billion in cash to Nippon Life Insurance Company.  The
property consists of approximately one acre of land on which The
AIG Otemachi Building in Tokyo is situated.

The property's Marunouchi 1 chome address is one of the most
coveted in central Tokyo's downtown business district.
Marunouchi, Tokyo's business center, is the highest rent district
in Japan with demand for Class A space typically exceeding supply.
AIG's property is unique within the district because of its
location next to and overlooking the inner moat of the Imperial
Palace.

The transaction is expected to close during the second quarter.

Edward Liddy AIG's Chairman and Chief Executive Officer said,
"This is a significant transaction because of the prominence and
unique nature of the property and the highly attractive value that
both AIG and Nippon Life Insurance Company are realizing through
the transaction.  This transaction has been successfully
negotiated by AIG despite the difficult real estate market
environment in Japan and globally.  The sale generated substantial
interest from both Japanese and foreign investors, resulting in a
very competitive bidding process.  AIG is pleased to effectively
monetize this asset within the context of its restructuring
effort. We view this transaction as a win-win for all concerned,
with Nippon Life Insurance Company acquiring a premier real estate
asset.

"We have reached agreement or closed over a dozen deals in the
past several months, despite a very challenging economic
environment.  We presently are in various stages of discussions
with respect to other potential transactions, as we continue to
move forward with our asset disposition and restructuring efforts
in order to serve the best interests of AIG and its constituents,"
Mr. Liddy stated.

Merrill Lynch & Co. acted as financial advisor and Simpson Thacher
& Bartlett LLP and Anderson Mori & Tomotsune acted as legal
counsel to AIG on this transaction.  Blackstone Advisory Services
provided financial advice to AIG in connection with AIG's global
restructuring program.

         CEO to Fight Back Criticism of Employees

Meena Thiruvengadam at The Wall Street Journal reports that
Mr. Liddy plans to fight back against criticism of his employees.
According to WSJ, Mr. Liddy will tell a U.S. House oversight
committee on Wednesday while pleading for a better partnership
with the government, "Rampant, unwarranted criticism of AIG serves
only to diminish the value of our businesses around the world."

WSJ relates that Mr. Liddy wrote in a prepared testimony submitted
to the House Committee on Oversight and Government Reform, saying,
"We need your help.  It is critical that we not lose sight of the
fact that we are partners."

WSJ states that the House Oversight and Government Reform
Committee have prepared to grill Mr. Liddy and trustees charged
with managing the government's AIG shares, intending to raise
questions about transparency and accountability.  WSJ notes that
AIG had been the subject of strong criticism from the public and
Congress due to employee bonuses paid despite the Company's
collection of billions in government aid.

According to WSJ, Mr. Liddy said in a prepared testimony, "Our
plan contemplates that AIG's best businesses will establish
separate identities from the parent holding company.  The major
insurance companies will emerge with diverse products, strong
management and clear growth strategies worthy of investor
confidence."

Mr. Liddy also said that AIG has already reduced the level of
systemic risk it presents to the global financial system and will
detail how AIG has reduced notional exposure in its complex
derivatives portfolio to $1.5 trillion from a peak of
$2.7 trillion, WSJ relates.  Mr. Liddy admitted that any systemic
risks posed by AIG to the global financial system have not been
eliminated, WSJ reports.

Liam Pleven at WSJ relates that AIG's turnaround was once hoped to
be a quick process, but a new internal memo shows that the Company
and the government expect that it would take years to restructure
the Company.

WSJ states that an initiative code-named Project Destiny involved
a 45-day review of AIG's businesses that is supposed to lead to
the multiyear plan.  According to WSJ, Project Destiny may be
discussed at a congressional hearing about AIG scheduled for
Wednesday.

                 About American International

Based in New York, American International Group, Inc. (AIG), is
the leading international insurance organization with operation in
more than 130 countries and jurisdictions.  AIG companies serve
commercial, institutional and individual customers through the
most extensive worldwide property-casualty and life insurance
networks of any insurer.  In addition, AIG companies are leading
providers of retirement services, financial services and asset
management around the world.  AIG's common stock is listed on the
New York Stock Exchange, as well as the stock exchanges in Ireland
and Tokyo.

During the third quarter of 2008, requirements to post collateral
in connection with AIG Financial Products Corp.'s credit default
swap portfolio and other AIGFP transactions and to fund returns of
securities lending collateral placed stress on AIG's liquidity.
AIG's stock price declined from $22.76 on September 8, 2008, to
$4.76 on September 15, 2008.  On that date, AIG's long-term debt
ratings were downgraded by Standard & Poor's, a division of The
McGraw-Hill Companies, Inc., Moody's Investors Service and Fitch
Ratings, which triggered additional requirements for liquidity.
These and other events severely limited AIG's access to debt and
equity markets.

On September 22, 2008, AIG entered into an $85 billion revolving
credit agreement with the Federal Reserve Bank of New York and,
pursuant to the Fed Credit Agreement, AIG agreed to issue 100,000
shares of Series C Perpetual, Convertible, Participating Preferred
Stock to a trust for the benefit of the United States Treasury.
At September 30, 2008, amounts owed under the facility created
pursuant to the Fed Credit Agreement totaled $63 billion,
including accrued fees and interest.

Since September 30, AIG has borrowed additional amounts under the
Fed Facility and has announced plans to sell assets and businesses
to repay amounts owed in connection with the Fed Credit Agreement.
In addition, subsequent to September 30, 2008, certain of AIG's
domestic life insurance subsidiaries entered into an agreement
with the NY Fed pursuant to which the NY Fed has borrowed, in
return for cash collateral, investment grade fixed maturity
securities from the insurance subsidiaries.

On November 10, 2008, the U.S. Treasury agreed to purchase,
through its Troubled Asset Relief Program, $40 billion of newly
issued AIG perpetual preferred shares and warrants to purchase a
number of shares of common stock of AIG equal to 2% of the issued
and outstanding shares as of the purchase date.  All of the
proceeds will be used to pay down a portion of the Federal Reserve
Bank of New York credit facility.  The perpetual preferred shares
will carry a 10% coupon with cumulative dividends.

AIG and the Fed also agreed to revise the existing FRBNY credit
facility.  The loan terms were extended from two to five years to
give AIG time to complete its planned asset sales in an orderly
manner.  The equity interest that taxpayers will hold in AIG,
coupled with the warrants, will total 79.9%.

At September 30, 2008, AIG had $1.022 trillion in total
consolidated assets and $950.9 billion in total debts.
Shareholders' equity was $71.18 billion, including the addition of
$23 billion of consideration received for preferred stock not yet
issued.

The Troubled Company Reporter reported on March 4, 2009, that
Moody's Investors Service confirmed the A3 senior unsecured debt
and Prime-1 short-term debt ratings of American International
Group, Inc.  AIG's subordinated debt rating has been downgraded to
Ba2 from Baa1.  The rating outlook for AIG is negative.  This
rating action follows AIG's announcement of net losses of
$62 billion for the fourth quarter and $99 billion for the full
year of 2008, along with a revised restructuring plan supported by
the U.S. Treasury and the Federal Reserve.  This concludes a
review for possible downgrade that was initiated on September 15,
2008.


BEARINGPOINT INC: Committee Objects to Deal on Japan Sale Proceeds
------------------------------------------------------------------
The official committee of unsecured creditors of BearingPoint Inc.
and its debtor-affiliates filed with the U.S. Bankruptcy Court for
the Southern District of New York an objection to an agreement
regarding the sale of Japan business reached by BearingPoint and
the senior lenders and their agent, according to
BankruptcyData.com.

The Committee supports the sale proposal that PwC Advisory Co.
acquire the Debtors' stock for roughly $38.4 million, the report
says.

The Committee, BankruptcyData relates, objects to the structure by
which the sale proceeds would be repatriated, which "erects a sham
intercompany obligation for the purpose of converting the proceeds
to collateral of the prepetition senior lenders.  The proposed
repatriation involves a restructuring of certain foreign non-
debtor affiliates of the Debtors that is intended to minimize the
tax consequences of the sale."

A hearing on the matter is scheduled for May 12, 2009, source
notes.

On April 2, 2009, BearingPoint International Bermuda Holdings
Limited, BearingPoint's indirect subsidiary, entered into a Share
Sale Agreement with PwC Advisory Co., Ltd., the Japanese member
firm of the PricewaterhouseCoopers global network of firms, for
the sale of BearingPoint's consulting business in Japan to PwC
Japan for roughly $45 million.

On April 17, 2009, BearingPoint and certain of its subsidiaries
entered into a definitive agreement with PricewaterhouseCoopers
LLP pursuant to which BearingPoint agreed to sell a substantial
portion of its assets related to its Commercial Services business
unit, including Financial Services, to PwC.  In addition, an
affiliate of PwC also entered into a definitive agreement to
purchase the equity interests of BearingPoint Information
Technologies (Shanghai) Limited, a subsidiary of BearingPoint that
operates a global development center in China, and certain assets
of a separate global development center in India.  The aggregate
purchase price for these three transactions is roughly
$25 million.

BearingPoint, Inc. -- http://www.BearingPoint.com/-- is currently
one of the world's largest providers of management and technology
consulting services to Global 2000 companies and government
organizations in more than 60 countries worldwide.  Based in
McLean, Va., BearingPoint -- a former consulting arm of KPMG LLP
-- has approximately 15,000 employees focusing on the Public
Services, Commercial Services and Financial Services industries.
BearingPoint professionals have built a reputation for knowing
what it takes to help clients achieve their goals, and working
closely with them to get the job done.  The Company's service
offerings are designed to help clients generate revenue, increase
cost-effectiveness, manage regulatory compliance, integrate
information and transition to "next-generation" technology.

BearingPoint, Inc., fka KPMG Consulting, Inc., together with its
units, filed for Chapter 11 on February 18, 2009 (Bankr. S.D.
N.Y., Case No. 09-10691).  Alfredo R. Perez, Esq., at Weil Gotshal
& Manges LLP, has been tapped as counsel.  Greenhill & Co., LLC,
and AP Services LLC, have also been tapped as advisors.  Davis
Polk & Wardell is special corporate counsel.  BearingPoint
disclosed total assets of $1,762,689,000, and debts of
$2,231,839,000 as of September 30, 2008.

Contemporaneous with their bankruptcy petitions, the Debtors filed
a pre-packaged Joint Plan of Reorganization under Chapter to
implement the terms of their agreement with the secured lenders.
Under the Plan, the Debtors propose to exchange general unsecured
claims for equity in the reorganized company.  Existing
shareholders are out of the money.  The Plan and the explanatory
disclosure statement remain subject to approval by the Bankruptcy
Court.


BRIDGESTONE CORP: Expects Wider Half Year 2009 Net Loss
-------------------------------------------------------
Makiko Kitamura at Bloomberg News reports Bridgestone Corp widened
its loss forecast for the first half of this fiscal year.

According to the report, the company said it may post a JPY62
billion (US$629 million) net loss, compared with an earlier
forecast of a JPY21 billion loss for the six months ending June
30, citing an increase in fixed costs and currency-exchange
losses.

In February, Japan Times reported that Bridgestone projected
profit for the fiscal year ending next Dec. 31, 2009 to decline
71 percent to JPY3 billion, as sales decline 22 percent to
JPY2.53 trillion.

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 24, 2009, Japan Times, citing The Associated Press, said
Bridgestone reported a 92 percent plunge in annual profit due to
the sharply declining global demand for tires.  Bridgestone, The
Japan Times said, reported a JPY10.41 billion net profit for the
year ending Dec. 31, down from JPY131.63 billion the previous
year.  Net sales for the year dropped 5 percent to JPY3.23
trillion due in part to the exchange impact of the stronger
Japanese yen and a decline in unit sales.  The company posted an
operating income JPY131.5 billion, down 47 percent while ordinary
income decreased 66 percent to JPY74.4 billion.  According to
Japan Times, the main cause for the poor results was sliding
demand for tires caused by stagnating auto markets around the
world crippled by the U.S. financial crisis and its fallout.

Bridgestone Corporation (TYO:5108) --
http://www.bridgestone.co.jp/-- is a Japan-based manufacturing
company.  The Company has two business segments.  The Tire segment
is engaged in the manufacture and sale of reclaimed material,
tires and tubes for passenger automobiles, trucks, buses,
industrial vehicles, agricultural machinery, aircrafts and
motorcycles, as well as the sale of tire-related products.  This
segment also provides automotive maintenance and repair services.
The Diversified Product segment provides automobile-related parts,
urethane foams, electronic precision parts, industrial material-
related products, construction-related products, sports products,
such as golf balls and golf clubs, bicycles, as well as financial
services.  Headquartered in Tokyo, Bridgestone has 449
subsidiaries and 182 associated companies.


COSMO SECURITIES: JCR Withdraws '#B+' Senior Debts Rating
---------------------------------------------------------
Japan Credit Rating Agency Ltd. (JCR) has withdrawn the
#B+/Negative and the NJ rating on senior debts and CP program of
Cosmo Securities Co. Ltd. at the request of the company.

Senior debts: #B+/Negative
CP: NJ
Maximum: JPY10 billion
Backup Line: 0%


ISUZU MOTORS: Posts JPY26.86 Billion Net Loss in FY2008
-------------------------------------------------------
Isuzu Motors Ltd has reported a group net loss of JPY26.86 billion
for fiscal 2008 ended March 31, its first such loss in six years,
Kyodo News International reports.

According to the report, Isuzu Motors also said the group will
remain in the red in the current business year to next March with
a net loss of JPY20 billion as business environments would stay
grim due to the continued deterioration of the economic slump and
the worsening of the global financial crisis.

"Based on the expected business environment, sales at home and
abroad are expected to remain sluggish," Kyodo News quoted Isuzu
Motors President Susumu Hosoi as saying in a news conference at a
Tokyo hotel.

Isuzu's domestic sales for fiscal 2008 were about 58,000 units,
down 22 percent from the previous year, while overseas sales for
were roughly 343,000 units, down 21.2 percent.  In the current
business year, the company expected domestic sales to fall to
around 49,000 units while overseas sales is expected to fall
further to about 226,000 units.

The company said it has decided not to pay a year-end dividend,
making the annual dividend for fiscal 2008 to JPY3 per share which
it already paid as midyear dividend.

Headquartered in Tokyo, Japan, Isuzu Motors Limited --
http://www.isuzu.co.jp/-- is engaged in the manufacture and
sale of automobile, automobile parts, as well as industrial
engines.  The company carries products such as light commercial
vehicles (LCVs) and commercial vehicles, which include large-
size trucks and buses, small-size trucks and pickup trucks,
among others.  It also manufactures and sells engines and
components.  Through its subsidiaries, the company is also
engaged in the provision of logistics services and other
services.  The company has offices in Japan, the United States,
Mexico, Belgium, and Thailand, among others.


JAPAN AIRLINES: Must Cut More Costs to Get Gov't Aid
----------------------------------------------------
The head of Japan's ruling Liberal Democratic Party's aviation
panel said Japan Airlines Corp must cut more costs to receive
emergency funding from the government, Chris Cooper and Kiyotaka
Matsuda at Bloomberg News report.

The carrier needs to consider more job cuts and reduce costs by
more than the JPY50 billion (US$509 million) it aims to slash this
fiscal year, Seiichi Ota, an LDP aviation committee chairman, told
Bloomberg News in an interview.  "A reduction in costs will be a
condition of financial aid and will affect the amount it gets,"
Mr. Ota said in the interview.

Bloomberg News relates Japan Air, which has applied for a JPY200
billion loan from state-owned Development Bank of Japan, is
offering unpaid leave and eliminating jobs to slash costs after
reporting its biggest drop in international travel since 2003.
The report recalls Japan Air said earlier this year it will cut 13
percent of its staff at its largest subsidiary, Japan Airlines
International Co., by the end of March 2011, reducing the unit's
headcount to 14,100 from 16,240 at the end of December.

                   Annual Loss Forecast Doubled

As reported in the Troubled Company Reporter-Asia Pacific on
April 30, 2009, Japan Air revised its consolidated financial
forecast for FY2008, the year ending March 31, 2009.  The Group
said that due to the volatility of the economy in the last quarter
of FY2008, the JAL Group has had to re-evaluate its financial
forecast that was last revised on February 6, 2009.

The airline said it would post a net loss of JPY63 billion for the
fiscal year, which ended March 31, almost double than the
previously forecasted annual net loss of JPY34 billion.  The Group
also expects an operating loss of JPY51 billion for the year,
against a previous forecast of a JPY37 billion operating loss.

The Group said the decrease in air transport demand on a global
scale has been relentless and has taken a toll on the JAL Group's
international and domestic passenger revenue as well as
international cargo revenue.  Premium travel out from Japan slid
against the backdrop of continuous cost-cutting measures by
companies in this economic situation.  Despite the pick up in
outbound leisure demand from Japan as an effect of the decreased
fuel surcharge and strong yen, the latter eroded both business and
leisure demand from overseas, resulting in an overall drop in the
operating revenue from international passengers.

On the domestic front, JAL faced a decrease in the yield of
individual travelers and in group passenger volume when the
current recession started to affect spending in Japan.  All in
all, operating revenue was adjusted to JPY1.950 trillion, down
JPY27 billion from the earlier forecast amidst declining passenger
demands and the slump in export and import of cargo.

Fervently trying to reduce cost within the company, JAL brought
forward the implementation of cost-cutting measures that were
originally planned to start at the beginning of FY2009.  This
urgency to cut costs has effectively led to a further decrease in
operating expenses by JPY13 billion, cushioning to a degree, the
decrease in overall operating income that is now estimated to be a
loss of JPY51 billion.

Deteriorating market conditions have also weakened the values of
stocks held by the JAL Group.  The ordinary income is revised down
by a further JPY19 billion after taking into account the
impairment loss on these stocks.  In addition, extraordinary
income from the planned sale of certain assets was included in the
previous calculation of the net income estimates.  However, due to
the depreciation in value, sale of these assets will now not
proceed as planned.  Consequently, the JAL Group now expects to
post an ordinary loss of JPY82 billion and a net loss of JPY63
billion.

                      About Japan Airlines

Japan Airlines Corporation -- http://www.jal.co.jp/-- is a Japan-
based holding company that is active in five business segments
through its 225 subsidiaries and 82 associated companies.  The Air
Transportation segment is engaged in the operation of passenger
and cargo planes.  The Air Transportation-Related segment is
engaged in the transportation of passengers and cargoes, the
preparation of in-flight food catering, the maintenance of
aircraft and land equipment, as well as the fueling business.  The
Travel Planning and Marketing segment is involved in the planning
and sale of travel packages.  The Card and Leasing segment is
engaged in the provision of finance, cards and leasing services.
The Others segment is involved in businesses related to hotels,
resorts, logistics, wholesale, retail, real estate, printing,
construction, manpower dispatch, as well as information and
communication.  The Company has numerous global operating
locations.

JAL International Co. Ltd. is a wholly owned operating subsidiary
of Japan Airlines Corporation.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
February 11, 2009, Moody's Investors Service changed the outlook
on the Ba3 long-term debt rating and issuer rating of Japan
Airlines International Co. Ltd. to negative from positive.  The
outlook change reflects Moody's view that JALI's profitability is
likely to remain pressured amid the recent sharp decline in
airline passenger demand.

Japan Airlines Corporation continues to carry Standard & Poor's
Ratings 'B+' LT Foreign & Local Issuer Credit.  The outlook is
positive.



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

AIR NEW ZEALAND: Could Be in Merger Talks By End of Year
--------------------------------------------------------
Air New Zealand could be in merger talks with another airline by
the end of the year as the recession and increased competition
threatens its long-term viability, The Dominion Post reports
citing a leading industry think tank.

The report, citing Centre for Asia Pacific Aviation, says the
national carrier's dominant position in its key markets is coming
under "relentless pressure" from Australian rivals Jetstar and
Pacific Blue and long-haul giants such as Emirates Airline.

According to the report, Air New Zealand is following many other
airlines by reducing capacity to match falling demand and protect
profits.  The report says Air New Zealand will cut long-haul
capacity by 14 per cent in the June quarter.

The Post relates that CAPA said whether that strategy will allow
Air New Zealand to survive longer term depends on the depth and
duration of the current recession.  "The risk is that Air New
Zealand will become so marginalized in the current downturn and
competitive upheavals that its returns and value will steadily
diminish over time.  And if fuel prices begin an upward march
again, the survival equation could dissolve," the Post cited CAPA
in its 2009 Asia Pacific Aviation Outlook report.

"Unless there are more positive new developments for Air New
Zealand, and with the current consensus that recovery is unlikely
before 2010, it seems likely merger talks will again be on the
table by the end of this year," the CAPA report stated.

Based in Auckland, New Zealand, Air New Zealand Ltd --
http://www.airnewzealand.com/--is the country's flag air carrier,
with domestic and international passenger and freight operations,
and an aviation engineering business.  Air New Zealand flies to
the United States, United Kingdom, Canada, Europe and other Asian
cities.

                          *     *     *

As of May 11, 2009, Air New Zealand Ltd continues to carry Moody's
Investor's Service "Ba1" Senior Unsecured Issuer rating with
stable outlook.


LANE WALKER: Receivers Seeking Buyers for Entire Business
---------------------------------------------------------
The receivers of Lane Walker Rudkin Industries are calling for
expressions of interest from people wanting to buy the company's
entire business or its assets, Tina Law at The Press reports.

According to the report, an advertisement in The Weekend Press
newspaper detailed key parts of the business up for sale including
the hosiery, underwear and sports clothing manufacturing and
distribution businesses and a screenprinting operation.

The report relates that the advertisement said the receivers, BDO
Spicers, were running a tender process for the sale of assets of
the business, closing on May 22.

The Press meanwhile reports that LWR Staff were asked to sign new
employment contracts on May 11.  According to The Press, BDO
Spicers partner and co-receiver Stephen Tubbs said it was a
technical change.  All the terms and conditions of the new
employment contracts were the same as the existing one.

As reported in the Troubled Company Reporter-Asia Pacific on
April 30, 2009, hundreds of staff are facing uncertain future as
Lane Walker Rudkin Industries ("LWR") went into receivership with
debt of more than $50 million.

In a press statement released on April 28, BDO Spicers disclosed
that Brian Mayo-Smith and Stephen Tubbs, partners at the firm,
have been appointed joint receivers and managers of LWR.  The
appointment was made by LWR's bankers to protect the financial
position of LWR and its subsidiary Pod while issues facing the
group are resolved.  The LWR operations are currently unprofitable
and have incurred a substantial increase in bank debt.

Lane Walker Rudkin Industries Limited (LWR) --
http://www.lwr.co.nz/history.htm-- is a diversified manufacturer
of clothing and textiles with operations in several locations in
New Zealand and Australia.  Approximately 470 people are employed
in textile, hosiery, underwear and garment factories in
Christchurch; garment manufacture in Greytown and Pahiatua; a sock
factory in Timaru; and a sports apparel factory in Brisbane.  Its
subsidiary Pod comprises fabric maker Designer Textiles
International, clothing designer and manufacturer Michele Ann and
Mollers Homewares, all located in  Auckland.  The group is owned
by Christchurch businessman Ken Anderson, who purchased LWR in
2001 and Pod in 2007.


LOMBARD FINANCE: Receivers Unveil Delay in Investors Payout
-----------------------------------------------------------
David Hargreaves at BusinessDay reports that secured debenture
holders with Lombard Finance & Investments been given a double
dose of bad news.

The report, citing receivers John Fisk and Colin McCloy of
PricewaterhouseCoopers in their latest letter to investors,
relates that the payment the receivers hoped to make to investors
in March has been delayed.  The estimate of the final payout has
also been dropped, the report adds.

According to the report, the receivers said the delay in payment
was because the Inland Revenue Department was still auditing the
affairs of LF&I.  The receivers had therefore yet to get IRD's
confirmation of final claims in the receivership.  Any money
claimed by IRD as outstanding has priority over claims of secured
debenture holders.

The Troubled Company Reporter-Asia Pacific reported on Sept. 10,
2008, that Lombard Finance & Investments Limited's receivers
John Waller and John Fisk of PricewaterhouseCoopers said they have
revised the estimate of recoveries to secured debenture investors
to a range of 19 percent to percent of their original investment.

In their last report to investors issued on Dec. 15, 2008, the
receivers estimated range of recoveries to secured debenture
investors remains unchanged at 19% to 40% of their original
investment.  However, BusinessDay relates, the receivers now say
the estimated range is 17 percent to 29 percent.

                        About Lombard Finance

Lombard Finance & Investments Limited is a wholly owned
subsidiary of Lombard Group, a diversified company specialising in
the financial services sector offering a number of lending options
and providing investment opportunities for its shareholders and
investors.

On April 10, 2008, Lombard Finance was placed into receivership
by its trustee, Perpetual Trust Limited.  PricewaterhouseCoopers
partners John Fisk and John Waller have been appointed receivers
of the company.  The receivership also applies to three other
subsidiaries of Lombard Group, being Lombard Asset Finance
Limited, Lombard Property Holdings Limited and Lombard Asset
Finance No 2 Limited.  The receivership does not impact on
Lombard Group Limited.


WIDESPREAD ENERGY: Posts NZ$516,000 Loss in Year Ended March 2009
-----------------------------------------------------------------
Widespread Energy Limited, on May 11, 2009, reported its audited
financial results for the year ended March 31, 2009.

Widespread Energy reported a net loss after tax of NZ$516,000 for
the year ended March 31, 2009, compared with a NZ$85,000 net loss
reported in the prior year.

For the year ended March 31, 2009, the company's income was
NZ$35,000 as compared to NZ$94,000 income reported in 2008.

The reported result for the year reflected lower income (due to
reduced cash reserves and lower interest rates), a partial write-
down of our investment in Green Gate Limited, and exploration
costs written off consequent to a decision to relinquish a non-
prospective portion of our offshore West Coast exploration
license.  Operating costs were slightly reduced.

Based in Wellington, New Zealand, Widespread Energy Limited
(NZE:WEN) -- http://www.widespread.co.nz --  is a venture capital
investor in the energy sector, directly and indirectly investing
in oil and gas exploration opportunities.  The Company derives
income from interest and dividends.  The Company has two business
segments being investment in exploration (oil and gas) companies
and exploration in oil and gas.



=============================
P A P U A  N E W  G U I N E A
=============================

BANK OF SOUTH: S&P Assigns Issuer Rating on Subordinated Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services said that it had assigned its
'B-' long-term issue rating on the proposed Papua New Guinea Kina
100 million subordinated notes to be issued by Bank of South
Pacific Ltd. (counterparty credit rating B+/Stable/B).  The
proposed issue has a right to accept oversubscriptions of up to
another K100 million and is the first subordinated debt issue by a
rated listed company in Papua New Guinea.

The proposed subordinated notes issue is a standard vanilla 10-
year debt issue that does not qualify for any equity credit.
Under Standard & Poor's rating methodology for rating subordinated
debt issued by banks, any bank subordinate debt is usually rated
two notches lower when the counterparty credit rating is
speculative grade.  The primary reason for the two-notch
difference reflects the weaker recovery prospects for subordinated
debt in a bank failure, and a speculative-grade bank's inherent
greater vulnerability to default, even if the bank remains a
going, although weak, concern.

The 'B+/B' counterparty credit ratings on Papua New Guinea-based
BSP reflect the bank's strong market position, good capitalization
and profitability, and adequate asset quality in a domestic
context.  Moderating factors include the bank's higher credit-risk
loan and investment portfolios, concentrated funding profile, high
but potentially restricted liquidity position, and limited
business and geographical diversification.  The stable rating
outlook on BSP reflects the bank's ability to maintain strong loan
growth, its capacity to absorb a minor deterioration in asset
quality and profitability, and its strong operating efficiency.



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

PRUDENTIALIFE: Assures to Continue Payment Despite License Revoke
-----------------------------------------------------------------
Prudentialife Plans Inc assured planholders that the company will
pay their benefits this year despite the cancellation of the
company's license by the Securities and Exchange Commission (SEC),
Manila Standard Today reports.

The report, citing Prudentialife Plans President Jose Alberto
Alba, says that the benefit payments could reach PHP2 billion this
year.

According to the Philippine Daily Inquirer, Prudentialife lost its
dealership license because the SEC did not approve of certain
assets—such as idle real estate and company shares—that were
supposed to be put in the trust fund.

Prudentialife Plans started in 1978, as a pre-need company.  It
has diversified into financial services, non-life isurance,
memorialization, real estate and travel and leisure.

ABS-CBN News, citing SEC records in September 2008, says that
Prudentialife has PHP14.16 billion in "trust funds", which was
more than PHP5 billion short of the SEC-required PHP19.5 billion
"reserve funds" or the amount that pre-need companies should be
aiming for after they have invested their clients' money over a
period of time.


* LEGAGY GROUP: PDIC Taps P&A to Conduct Forensic Investigation
---------------------------------------------------------------
The Philippine Deposit Insurance Corporation (PDIC) said it has
tapped audit firm Punongbayan & Araullo, affiliated with Grant
Thornton International PA, to conduct forensic fraud investigation
of 13 Legacy-affiliated banks.

PDIC President Jose C. Nograles said this kind of investigation is
geared towards uncovering transactions intentionally hidden in a
maze of paper trail and deleted computer files.  It aims to
identify and document possible fraud schemes, irregularities and
anomalies that may have been perpetrated against the banks and
which may be used as basis for the filing of criminal, civil
and/or administrative cases.  It is also expected to establish a
case management system to preserve evidence gathered during the
investigation.  Asset recovery and tracing will also be conducted
to enable the PDIC to lay claim to the properties of Legacy owner
Celso delos Angeles and other persons found to have committed
fraud.  Forensic fraud investigation is being used by other
countries such as the United States.  The Federal Bureau of
Investigation's Racketeering Records Analysis Unit uses forensic
fraud investigation in cases covered by the Racketeering Influence
and Corrupt Organization (RICO Law).

Mr. Nograles said that the agency's own ongoing investigations
that entailed combing through 2,000 boxes of voluminous documents,
had resulted in the filing of several cases including syndicated
estafa directly against Mr. delos Angeles as well as a collection
case with request for writ of attachment of Mr. delos Angeles'
properties.  In the course of said investigations, they have
uncovered schemes of a different level of sophistication,
requiring more expertise and in-depth investigations to unravel.

"We are dealing not just with individual banks, but with a group
of companies composed of several banks and pre-need companies
controlled by certain persons through dummy ownerships, enmeshed
in a criss-crossing labyrinth of transactions.  The endless
combinations and permutations of these transactions have created a
veritable empire of smoke and mirrors meant to cover up fraud and
confuse regulators and the public alike," Mr. Nograles said.
"However, we are determined to closely scrutinize these
transactions to unravel the web of deception that has been foisted
on us all. Therefore, we have called in the experts to assist," he
added.

Punongbayan & Araullo is a member firm of Grant Thornton
International, PA and is a leading professional services provider
with a proven track record of high quality work in forensic
investigation, tax advisory and compliance, and auditing.
Moreover, Punongbayan & Araullo is affiliated with the Association
of Certified Fraud Examiners (ACFE).  The ACFE is an international
organization that certifies fraud examiners.  Two partners heading
Punongbayan and Araullo's Business Risk Services Group which is
in-charge of forensic audit investigation, are ACFE members.  Four
of the five senior managers leading the 60 personnel assigned to
PDIC are ACFE members.  The investigations on the Legacy Banks
will be conducted by these topnotch examiners in accordance with
international standards.

Punongbayan and Araullo is currently working on 26 leads involving
tangled deals that had rendered the transactions opaque.
Untangling these deals could possibly result to findings of fraud
and the filing of additional cases.

The initial coverage of the investigation will focus on bank
transactions that are suspected as fraud schemes, irregularities
and anomalies for the past five years for all banks, except Rural
Bank of Parañaque, Inc., which will cover transactions for the
past 10 years.

The fraud investigation will be conducted in the Rural Bank of
Parañaque, Pilipino Rural Bank, Rural Bank of Bais (Negros
Oriental), Rural Bank of San Jose (Batangas), Bank of East Asia,
First Interstate Bank, Philippine Countryside Rural Bank, Dynamic
Rural Bank, Nation Bank, Rural Bank of Carmen (Cebu), Rural Bank
of DARBCI, San Pablo City Development Bank, and The Center Rural
Bank.  All banks except The Center RB were placed under
receivership by the Monetary Board in December 2008.  The Center
RB is a Legacy-affiliated bank placed under receivership in
February 2006.

                      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
=================

ALL BUILDING: Creditors' Proofs of Debt Due on May 22
-----------------------------------------------------
All Building Supply Pte Ltd, which is in voluntary wind-up,
requires its creditors to file their proofs of debt by May 22,
2009, to be included in the company's dividend distribution.

The company's liquidators are:

          Mick Aw Cheok Huat
          Neo Keng Jin
          c/o 10 Anson Road
          #29-15 International Plaza
          Singapore 079903


ASIA PULP: Agrees to a Debt Revamp Plan With Gramercy Advisors
--------------------------------------------------------------
PT Asia Pulp & Paper agreed to a debt revamp plan with Gramercy
Advisors, one of its creditors, Jakarta Globe reports.

The report, citing Asia Pulp, said that Gramercy sold the debt to
a "third party" and stopped all legal proceedings against the
company and its units.

Asia Pulp has been wrangling with its creditors since freezing
payments on the record US$14 billion of debt in 2001, the report
said.

                         About Asia Pulp

Asia Pulp & Paper, based in Singapore, can produce about two
million tons of pulp and more than five million tons of paper and
packaging materials per year.  Part of the Sinar Mas Group, it
operates plants in Indonesia and sells to clients in more than 60
countries around the world, though their record of consistent
breaches of environmental laws and agreements has lead many
companies to terminate contracts with them.

The company is also well known for defaulting on debt repayments
in 2001, leading to a collapse in confidence of South Asian
assets.

In 1994, the company moved its headquarters from Indonesia to
Singapore and began to borrow money to expand aggressively.  It
was soon heavily leveraged; from 1996 to 1998, it only produced
1.5 times as much cash flow as its interest costs.


FINA FAR: Creditors' Proofs of Debt Due on June 8
-------------------------------------------------
Fina Far East Pte Ltd, which is in members' voluntary wind-up,
requires its creditors to file their proofs of debt by June 8,
2009, to be included in the company's dividend distribution.

The company's liquidators are:

          Kon Yin Tong
          Wong Kian Kok
          Aw Eng Hai
          c/o 47 Hill Street #05-01
          Singapore Chinese Chamber of Commerce &
          Industry Building
          Singapore 179365


LARES PERMARINI: Creditors' Proofs of Debt Due on June 8
--------------------------------------------------------
Lares Permarini Shipping Pte Ltd, which is in members' voluntary
wind-up, requires its creditors to file their proofs of debt by
June 8, 2009, to be included in the company's dividend
distribution.

The company's liquidator is:

          Lau Chin Huat
          c/o 6 Shenton Way #32-00
          DBS Building Tower Two
          Singapore 068809


MPF-01 PTE: Court to Hear Wind-Up Petition on May 22
----------------------------------------------------
A petition to have MPF-01 Pte Ltd's operations wound up will be
heard before the High Court of Singapore on May 22, 2009, at
10:00 a.m.

The applicant's solicitors are:

         Messrs. Allen & Gledhill LLP
         One Marina Boulevard #28-00
         Singapore 018989


SAW SPECIALIST: Creditors' Proofs of Debt Due on May 29
-------------------------------------------------------
Saw Specialist & Machinery Pte Ltd, which is in compulsory
liquidation, requires its creditors to file their proofs of debt
by May 29, 2009, to be included in the company's dividend
distribution.

The company's liquidator is:

          Lien Fain Sze
          809 French Road
          #05-168 Kitchener Complex
          Singapore 200809


SIEMENS ENERGY: Creditors' Proofs of Debt Due on June 8
-------------------------------------------------------
Siemens Energy Management & Information Systems (Pte) Ltd, which
is in members' voluntary wind-up, requires its creditors to file
their proofs of debt by June 8, 2009, to be included in the
company's dividend distribution.

The company's liquidators are:

          Kon Yin Tong
          Wong Kian Kok
          Aw Eng Hai
          c/o 47 Hill Street #05-01
          Singapore Chinese Chamber of Commerce & Industry
          Building
          Singapore 179365



======================
S O U T H  A F R I C A
======================

SAPPI LTD: S&P Downgrades Issuer Credit Ratings to 'BB-'
--------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term issuer credit ratings on South Africa-based forest-
product company Sappi Ltd. to 'BB-' from 'BB'.  At the same time,
the 'B' short-term rating was affirmed.  The outlook is stable.

"The rating action reflects Sappi's weak operating and financial
performance caused primarily by a very challenging operating
environment with falling demand for key products.  As a result,
Sappi's credit measures have fallen to levels which were not
adequate for the previous 'BB' rating," said Standard & Poor's
credit analyst Jacob Zachrison.

In addition, S&P expects the currently challenging conditions to
prevail over the near term due to the global economic downturn,
with weak demand and pricing prospects as a consequence.  Despite
Sappi's measures to improve profitability and cash flow
generation, S&P sees further downside risk unless market
conditions improve.

Demand for coated fine paper (coated woodfree) in Europe and
North America has fallen considerably as a result of the economic
downturn.  Inventory management throughout the downstream value
chain has most likely accelerated the drop in volumes, although it
is difficult to gauge the magnitude of this effect.  Moreover,
lower demand and selling prices for chemical cellulose have
contributed to Sappi's weaker performance since the beginning of
2009.

For the twelve months ended March 31, 2009, Sappi's operating
margin weakened to about 9.4% compared with 14% in the previous
corresponding period.  Funds from operations to adjusted debt
declined to about 11.8% (16.2%).  At the 'BB-' rating level, S&P
expects Sappi to achieve a ratio of about 15% over the near term.

S&P expects Sappi's operating and financial performance to remain
under pressure for the remainder of 2009, owing to lower demand
and pressure on prices in North America and Europe.  A weaker U.S.
dollar and/or a stronger South African rand could also exert
additional pressure on Sappi's earnings and cash flows.  Prospects
for improvement exist, although they are currently impaired by
market conditions.  Nevertheless, scaled down capital expenditures
and lower input costs and dividend payments should, in S&P's view,
mitigate the negative effects of lower demand, allowing for
positive free operating and discretionary cash flow generation, a
key supportive rating factor.  In addition, synergy realization
from the acquisition of assets from M-real Corp. (CCC+/Negative/C)
assets appears to be progressing according to plan.

The stable outlook reflects S&P's expectations that, although
remaining under pressure throughout fiscal 2009, Sappi's
performance will gradually improve in line with the rating
requirements.  This means that Sappi should achieve a sustainable
ratio of FFO to adjusted debt of about 15% over the near term.
Free operating cash flow should remain clearly positive, allowing
for adjusted debt reductions.  The stable outlook also assumes
that Sappi will refinance its RCF and 2010 debt maturities well
ahead of maturity.



====================================
U N I T E D  A R AB  E M I R A T E S
====================================

NATIONAL BANK: Fitch Affirms Individual Rating at 'C/D'
-------------------------------------------------------
Fitch Ratings has affirmed National Bank of Umm Al-Qaiwain's
ratings at Long-term Issuer Default 'BBB+', Short-term IDR 'F2',
Individual 'C/D' and Support '2'.  The Support Rating Floor is
affirmed at 'BBB+'.  The Outlook for the Long-term IDR is Stable.

NBQ's IDRs are driven by expected support from the UAE
authorities.  As the LT IDR is currently at the Support Rating
Floor, downside risk is limited.  Upside on the Individual rating
is limited.  Downside pressure on the Individual rating could
arise from significant deterioration in asset quality resulting in
lower profitability and capital ratios and/or further material
decline in liquidity.

NBQ's operating profits increased 13% yoy in Q109.  Revenue growth
is, however, likely to slow in 2009 as the UAE economy,
particularly Dubai, weakens leading to lower business volumes.
Additionally, higher expected loan impairment charges will
pressure profitability.  Lower valuations on equity investments -
if markets do not pick up - will also negatively affect
performance.  Cost efficiency, however, remains satisfactory.

While the biggest risk is asset quality, impaired loans stood at a
sound 1.5% of end-Q109 gross loans.  The loan portfolio, however,
is somewhat concentrated and 60% of the bank's business is in
Dubai.  The seasoning of loans, following dramatic loan growth in
the last three years, particularly in 2008 when the loan portfolio
almost doubled, could result in problem loans as the credit cycle
changes.  Market risks mainly arise from the bank's equity
investments.

Funding is mainly from customer deposits (63% of end-2008 total
liabilities) and Fitch gains comfort from government support to
alleviate pressure on liquidity.  The total regulatory capital
adequacy ratio stood at a satisfactory 18.1% at end-Q109, almost
entirely Tier 1.  Additionally, the bank has exercised the option
to convert deposits received from the Ministry of Finance to Tier
II capital.  The MoF will advise the bank on the date of
conversion.

NBQ was established in 1982 by the ruler of Umm Al-Qaiwain and
remains 30% owned by that emirate's government.  The bank focuses
on wholesale banking but is placing greater emphasis on retail
banking activity.  It held around 1% of UAE banking system assets
at end-2008.  In August 2008, Global Investment House (Global,
rated LT IDR 'D'), a Kuwaiti investment company, announced that it
had agreed in principle to acquire a 20% stake in NBQ.  However
the acquisition did not proceed.  There are currently legal
proceedings between both companies with NBQ holding the
US$250 million transferred by Global as an advance payment to a
proposed convertible bond issue.



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

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

May 12-15, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Litigation Skills Symposium
       Tulane University, New Orleans, La.
          Contact: http://www.abiworld.org/

May 14-16, 2009
ALI-ABA
    Chapter 11 Business Reorganizations
       Langham Hotel, Boston, Massachusetts
          Contact: http://www.ali-aba.org

June 10-13, 2009
ASSOCIATION OF INSOLVENCY & RESTRUCTURING ADVISORS
    25th Annual Bankruptcy & Restructuring Conference
       The Ritz-Carlton Orlando Grande Lakes
          Orlando, Florida
             Contact: http://www.aria.org/

June 11-14, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa
          Traverse City, Michigan
             Contact: http://www.abiworld.org/

June 21-24, 2009
INTERNATIONAL ASSOCIATION OF RESTRUCTURING, INSOLVENCY &
    BANKRUPTCY PROFESSIONALS
       8th International World Congress
          TBA
             Contact: http://www.insol.org/

July 16-19, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Mt. Washington Inn
          Bretton Woods, New Hampshire
             Contact: http://www.abiworld.org/

July 29-Aug. 1, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Westin Hilton Head Island Resort & Spa,
       Hilton Head Island, S.C.
          Contact: http://www.abiworld.org/

Aug. 6-8, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Conference
       Hotel Hershey, Hershey, Pa.
          Contact: http://www.abiworld.org/

Sept. 10-11, 2009
AMERICAN BANKRUPTCY INSTITUTE
    Complex Financial Restructuring Program
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Sept. 10-12, 2009
AMERICAN BANKRUPTCY INSTITUTE
    17th Annual Southwest Bankruptcy Conference
       Hyatt Regency Lake Tahoe, Incline Village, Nevada
          Contact: http://www.abiworld.org/

Oct. 2, 2009
AMERICAN BANKRUPTCY INSTITUTE
    ABI/GULC "Views from the Bench"
       Georgetown University Law Center, Washington, D.C.
          Contact: http://www.abiworld.org/

Oct. 5-9, 2009
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       Marriott Desert Ridge, Phoenix, Arizona
          Contact: 312-578-6900; http://www.turnaround.org/

Oct. 20, 2009
AMERICAN BANKRUPTCY INSTITUTE
    NCBJ/ABI Educational Program
       Paris Las Vegas, Las Vegas, Nev.
          Contact: http://www.abiworld.org/

Dec. 3-5, 2009
AMERICAN BANKRUPTCY INSTITUTE
    21st Annual Winter Leadership Conference
       La Quinta Resort & Spa, La Quinta, California
          Contact: 1-703-739-0800; http://www.abiworld.org/

Apr. 29-May 2, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Annual Spring Meeting
       Gaylord National Resort & Convention Center, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

June 17-20, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Central States Bankruptcy Workshop
       Grand Traverse Resort and Spa, Traverse City, Michigan
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 7-10, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Northeast Bankruptcy Conference
       Ocean Edge Resort, Brewster, Massachusetts
          Contact: 1-703-739-0800; http://www.abiworld.org/

July 14-17, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Southeast Bankruptcy Conference
       The Ritz-Carlton Amelia Island, Amelia, Fla.
          Contact: http://www.abiworld.org/

Aug. 5-7, 2010
AMERICAN BANKRUPTCY INSTITUTE
    Mid-Atlantic Bankruptcy Workshop
       Hyatt Regency Chesapeake Bay, Cambridge, Maryland
          Contact: 1-703-739-0800; http://www.abiworld.org/

Oct. 4-8, 2010
TURNAROUND MANAGEMENT ASSOCIATION
    TMA Annual Convention
       JW Marriott Grande Lakes, Orlando, Florida
          Contact: http://www.turnaround.org/

Dec. 2-4, 2010
AMERICAN BANKRUPTCY INSTITUTE
    22nd Annual Winter Leadership Conference
       Camelback Inn, Scottsdale, Arizona
          Contact: 1-703-739-0800; http://www.abiworld.org/

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

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

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



                         *********

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

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

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


                            *********


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

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  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.





                 *** End of Transmission ***