TCRAP_Public/090528.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Thursday, May 28, 2009, Vol. 12, No. 104

                            Headlines

A U S T R A L I A

GPT GROUP: Sells Perth Shopping Center for AU$100 Million
GREAT SOUTHERN: Investors Express Concern Over Investment
GREAT SOUTHERN: Investor Class Action Lawsuit Could Include KMPG


H O N G  K O N G

BASIC LIFE: Placed Under Voluntary Wind-Up
BECHTEL ENTERPRISES: Members' Final Meeting Set for June 29
CASTLE FINANCE: Fitch Downgrades Ratings on Two Notes to 'D'
CHINA MUSLIM: Members' Final Meeting Set for June 30
CHINA PHOENIX: Members' Final Meeting Set for June 30

CLOVER SECURITIES: Members' Final Meeting Set for June 26
EAST METRO: Members' Final Meeting Set for June 26
EIRLES TWO: Fitch Downgrades Ratings on US$30 Mil. Notes to 'D'
HAPPY HONOUR: Members' Final Meeting Set for June 22
HASSELL (ASIA PACIFIC): Member to Hear Wind-Up Report on June 29

JACOBS & TURNER: Placed Under Voluntary Wind-Up
JEWELLIANI LIMITED: Members' Final Meeting Set for June 30
SEKAI ENTERPRISES: Members' Final Meeting Set for June 23
SMURFIT ASIA: Placed Under Voluntary Wind-Up
STANDARD CAPITAL: Placed Under Voluntary Wind-Up

UNIVERSAL BRIGHT: Members' Final Meeting Set for June 23
YUN MEN: Members' Final Meeting Set for June 23


I N D I A

ALAM TANNERY: CRISIL Assigns 'BB-' Rating on INR37.8 Mln Term Loan
CATHOLIC SYRIAN: Fitch Affirms Individual Rating at 'D/E'
CHANAKYA KOTILYA: CARE Rates INR6.00cr LT Bank Facilties at 'BB'
MANAV NESVI: CRISIL Places 'B' Rating on INR750.0 Mln Term Loan
MITTAL HOSPITAL: Fitch Assigns National Long-Term Rating at 'BB-'

MYSORE PAPER: CRISIL Revises Rating Outlook on LT Bank Facilities
PASUPATI SPINNING: Loan Repayment Default Cues CRISIL 'D' Rating
REMI METALS: CARE Assigns 'CARE BB' Rating on LT Bank Facilities
RR ENERGY: CRISIL Puts 'BB+' Rating on INR269.60 Million Term Loan
TATA STEEL: Lenders Have Until Tomorrow to Approve Covenant Reset

UNITECH LIMITED: Sells Hotel in Gurgaon for INR200 crore


I N D O N E S I A

INTERNATIONAL NICKEL: Revises 2009 Capex Budget to US$166.4 Mil.
PT INCO: Fitch Upgrades Ratings to 'BB+' From 'BB'
PT LIPPO: S&P Downgrades Long-Term Corporate Credit Rating to 'B'


J A P A N

HITACHI LTD: Faces US$214 Million in Damages Due to Turbine Defect
JLOC 36: Fitch Downgrades Ratings on Class D Notes to 'B'
* JAPAN: 102 Firms Face Possible Bad Debts if GM Files Bankruptcy


K O R E A

* SOUTH KOREA: Banks to Ink Restructuring Deal with 9 Major Firms


M A L A Y S I A

ENERGREEN CORP: Seeks Extension of Time to File Financial Results
KOSMO TECHNOLOGY: Inks Proposed Subscription Deal With Al Rahba
OCI BERHAD: Posts MYR1.45 Mil. Profit in 3rd Qtr Ended March 31
PANGLOBAL: Bourse to De-list Securities on June 4
PECD BERHAD: To Hold Sixth Annual General Meeting on June 15

TALAM CORP: Bourse Okays Proposed Transfer of Kumpulan Securities


P H I L I P P I N E S

NATIONAL POWER: May Issue More Bonds to Refinance Maturing Debt


S I N G A P O R E

CHENG POH: Creditors' Meeting Set for June 3
INDEX EDUCATIONAL: Court Enters Wind-Up Order
PACIFIC INTERNATIONAL: S&P Cuts Corporate Credit Rating to 'BB'
WORLDWIDE CONVENTION: Court Enters Wind-Up Order


S O U T H  A F R I C A

IKHAYA RMBS: Fitch Affirms Ratings on 11 Tranches After Review
* SOUTH AFRICA: Falls Into First Recession Since 1992


T A I W A N

TA CHONG: Fitch Downgrades Ratings on Tree Notes to 'D'
WAN HAI: S&P Affirms Long-Term Corporate Credit Rating at 'BB+'


                         - - - - -


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

GPT GROUP: Sells Perth Shopping Center for AU$100 Million
---------------------------------------------------------
GPT Group has sold the Floreat Forum shopping centre in Perth's
western suburbs to Australasian Property Investments for AU$100
million, The Age reports.

According to the report, GPT chief executive Michael Cameron said
the sale was consistent with the group's AU$1.7 billion non-core
asset divestment program.

The report says the sales were flagged in October and the proceeds
will be used to strengthen GPT's balance sheet and liquidity
position.

"We continue to make progress on our sale program, with this
transaction bringing the total of asset sales close to AU$560
million over the last six months," the report quoted Mr. Cameron
as saying in a statement.

Conditions of the sale include the GPT Wholesale Shopping Centre
Fund waiving its right to acquire the asset, the report notes.

The report discloses that GPT had AU$3 billion in debt at the end
of 2008 and announced early this month that it would raise as much
as AU$1.69 billion in new equity to retire debt.

As reported in the Troubled Company Reporter-Asia Pacific on
March 4, 2009, GPT Group reported a net loss of AU$3.25 billion
for the year ended December 31, 2008, compared with a net profit
of AU$1.18 billion in the prior year.

The company's revenue dropped 75 percent to AU$470.2 million from
AU$1.85 billion it reported in 2007.

As at December 31, 2008, the company's balance sheet showed total
assets of AU$13.03 billion, total liabilities of AU$6.22 billion
and total stockholders' equity of AU$6.81 billion.  The company's
balance sheet at December 31, 2008, also showed strained liquidity
with AU$1.74 billion in total current assets available to pay
AU$1.75 billion in total current liabilities.

                      About GPT Group

Listed on the Australian Stock Exchange since 1971, the GPT Group
-- http://www.gpt.com.au-- is one of Australia's largest
diversified listed property groups, with total assets of AU$13.9
billion.  The Group has a substantial investor base, with
approximately 50,000 investors and is one of the top 100 stocks by
market capitalisation.


GREAT SOUTHERN: Investors Express Concern Over Investment
---------------------------------------------------------
The Sydney Morning Herald reports that investors in Great Southern
Ltd fear they may be left with nothing as the company's bankers
seek to recover money owed to them.

The report says that at the first meeting of about 400 creditors
and investors in Great Southern on Wednesday, investors in the
group's managed investments schemes (MIS) expressed concerns they
may not be ultimately designated as creditors.

According to the report, the concerned investors said Great
Southern's secured creditors, which includes a group of banks, had
appointed receivers - who would act in the interests of the banks,
not the interests of investors in the managed investments schemes.

The receivers have precedence over the administrators in the
control of the Great Southern assets in which it holds security,
the report notes.

Lead administrator Martin Jones of Ferrier Hodgson, according to
the Herald, told the meeting that Great Southern may be insolvent
but investigations may show that some of the MIS might still be
viable.

As reported in the Troubled Company Reporter-Asia Pacific on
May 19, 2009, the directors of Great Southern Limited and Great
Southern Managers Australia Limited have appointed Martin Jones,
Andrew Saker, Darren Weaver and James Stewart of Ferrier Hodgson
as joint and several administrators of the two companies and the
majority of their subsidiaries.

On May 20, 2009, the TCR-AP, citing the Sydney Morning Herald,
reported that McGrathNicol had been appointed receivers to the
company and certain of its subsidiaries by a security trustee on
behalf of a group of secured creditors.

Citing figures released by the administrators, the Herald
discloses that as of April 30, 2009, Great Southern had total
liabilities of AU$996.4 million, including loans and borrowings of
AU$833.9 million.  The loans and borrowings included AU$375
million from the groups banks.  The secured creditors include ANZ,
Commonwealth Bank and BankWest.

Great Southern manages about 43,000 investors through 45 managed
investment schemes.  The group owns and leases approximately
240,000 hectares of land.  It also owns more than 150,000 cattle
across approximately 1.5 million hectares of owned and leased
land.


GREAT SOUTHERN: Investor Class Action Lawsuit Could Include KMPG
----------------------------------------------------------------
The lawyer leading a class action against Great Southern Limited
said the case could be expanded to include accountancy firm KPMG,
ABC Rural reports.

According to the report, Dennis & Company principal Bruce Dennis
said KPMG offered advice to investors, that it was safe to convert
cattle assets into shares that are now worthless.

Mr. Dennis said the number of investors joining the class action
has passed a thousand.

The Troubled Company Reporter-Asia Pacific, citing a report posted
at farmonline, previously reported that Great Southern's investors
will likely launch a AU$30 million class-action lawsuit against
the failed managed investment scheme company.

Citing The Australian Financial Review, farmonline said law firm
Dennis & Company is representing 600 investors who invested an
average of AU$50,000 in one of Great Southern's cattle schemes
between 2006 and 2007.

According to farmonline, Dennis & Company principal Bruce Dennis
said the investors had had their interests compulsorily acquired
and transferred into shares.  At the same time loans, many of
which were provided by Great Southern Finance, were called in.

Farmonline related that Mr. Dennis said the potential lawsuit
revolved around representations by Great Southern, which told
investors it had the "financial wherewithal to keep the projects
going" but at the same time knew it had to convert the project
into shares to stay in business.

As reported in the Troubled Company Reporter-Asia Pacific on
May 19, 2009, the directors of Great Southern Limited and Great
Southern Managers Australia Limited have appointed Martin Jones,
Andrew Saker, Darren Weaver and James Stewart of Ferrier Hodgson
as joint and several administrators of the two companies and the
majority of their subsidiaries.

On May 20, 2009, the TCR-AP, citing the Sydney Morning Herald
reported that McGrathNicol had been appointed receivers to the
company and certain of its subsidiaries by a security trustee on
behalf of a group of secured creditors.

Citing figures released by the administrators, the Sydney Morning
Herald discloses that as of April 30, 2009, Great Southern had
total liabilities of AU$996.4 million, including loans and
borrowings of AU$833.9 million.  The loans and borrowings included
AU$375 million from the groups banks.  The secured creditors
include ANZ, Commonwealth Bank and BankWest.

Great Southern manages about 43,000 investors through 45 managed
investment schemes.  The group owns and leases approximately
240,000 hectares of land.  It also owns more than 150,000 cattle
across approximately 1.5 million hectares of owned and leased
land.

                      About Great Southern

Based in West Perth, Australia, 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.



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

BASIC LIFE: Placed Under Voluntary Wind-Up
------------------------------------------
On May 11, 2009, the members of Basic Life Charitable Fund Limited
passed a written resolution that voluntarily winds up the
company's operations.

The company's liquidator is:

          Ku Ngan Ming
          Hing Yip Commercial Centre
          Unit 501, 5th Floor
          272-284 Des Voeux Road
          Central, Hong Kong


BECHTEL ENTERPRISES: Members' Final Meeting Set for June 29
-----------------------------------------------------------
The members of Bechtel Enterprises (Hong Kong), Limited will hold
their final meeting on June 29, 2009, at 10:00 a.m., at 11 Pilgrim
Street, in London, England.

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


CASTLE FINANCE: Fitch Downgrades Ratings on Two Notes to 'D'
------------------------------------------------------------
Fitch Ratings has downgraded two notes issued by Castle Finance
III Limited:

  -- US$76 million Castle Finance III Series 1 note due 2012:
     downgraded to 'D' from 'C'/ 'RR6',

  -- US$54.75 million Castle Finance III Series 2 note due 2012:
     downgraded to 'D' from 'C'/ 'RR6'.

Both static synthetic corporate CDO notes have been fully written
down to zero as a result of the cumulative losses from the seven
credit events experienced by the reference portfolio, namely:
Lehman Brothers Holdings Inc., Washington Mutual, Inc., Freddie
Mac, Fannie Mae, Landsbanki Islands hf, Glitnir Banki hf and
Kaupthing Bank hf.  This rating action follows receipt by the
issuer of the loss calculation notices from the calculation agent,
ABN AMRO Bank N.V.


CHINA MUSLIM: Members' Final Meeting Set for June 30
----------------------------------------------------
The members of China Muslim Charitable Foundation Limited will
hold their final meeting on June 30, 2009, at 11:30 a.m., at 16B,
Yam Tze Commercial Building, 23 Thomson Road, in Wanchai,
Hong Kong.

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


CHINA PHOENIX: Members' Final Meeting Set for June 30
-----------------------------------------------------
The members of China Phoenix Charitable Foundation Limited will
hold their final meeting on June 30, 2009, at 11:00 a.m., at 16B,
Yam Tze Commercial Building, 23 Thomson Road, in Wanchai,
Hong Kong.

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


CLOVER SECURITIES: Members' Final Meeting Set for June 26
---------------------------------------------------------
The members of Clover Securities Company Limited will hold their
final meeting on June 26, 2009, at 10:00 a.m., at Room 1701 of
Shui On Centre, 6-8 Harbour Road, in Wanchai, Hong Kong.

At the meeting, Kam Chi Chiu Anthony, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


EAST METRO: Members' Final Meeting Set for June 26
--------------------------------------------------
The members of East Metro Limited will hold their final meeting on
June 26, 2009, at 10:00 a.m., at the 1st Floor, 104 Jervois St.,
in Sheung Wan, H.K.

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


EIRLES TWO: Fitch Downgrades Ratings on US$30 Mil. Notes to 'D'
---------------------------------------------------------------
Fitch Ratings has downgraded Eirles Two Limited Series 323's
US$30 million notes due 2014 to 'D' from 'C'/ 'RR6'.

This self-managed synthetic corporate CDO note will be fully
written down to zero as a result of the cumulative losses from the
five credit events in the reference portfolio, namely: Lehman
Brothers Holdings Inc., Washington Mutual, Inc., Landsbanki
Islands hf, Glitnir Banki hf and Kaupthing Bank hf.  This rating
action follows receipt by the issuer of the valuation notices from
the calculation agent, Deutsche Bank AG.


HAPPY HONOUR: Members' Final Meeting Set for June 22
----------------------------------------------------
The members of Happy Honour Limited will hold their final meeting
on June 22, 2009, at 12:30 p.m., at the 15th Floor of Enpire Land
Commercial Centre, 81-85 Lockhart Road, in Wanchai, Hong Kong.

At the meeting, Wu Shek Chun Wilfred and Yu Tak Yee Beryl, the
company's liquidator, will give a report on the company's wind-up
proceedings and property disposal.


HASSELL (ASIA PACIFIC): Member to Hear Wind-Up Report on June 29
----------------------------------------------------------------
The sole member of Hassell (Asia Pacific) Limited will hear the
liquidator's report on the company's wind-up proceedings and
property disposal on June 29, 2009, at 10:00 a.m.

The meeting will be held at Level 2 of the People's Daily
Building, 777 Century Avenue, Pudong, in Shanghai, China.


JACOBS & TURNER: Placed Under Voluntary Wind-Up
-----------------------------------------------
At an extraordinary general meeting held on May 8, 2009, the
members of Jacobs & Turner (Far East) Limited resolved to
voluntarily wind up the company's operations.

The company's liquidators are:

          Natalia K M Seng
          Susan Y H Lo
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


JEWELLIANI LIMITED: Members' Final Meeting Set for June 30
----------------------------------------------------------
The members of Jewelliani Limited will hold their final meeting on
June 30, 2009, at 4:00 p.m., at the 12th Floor of Lucky Building,
39 Wellington Street, in Central, Hong Kong.

At the meeting, Yeung Chi Wai Edwin, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


SEKAI ENTERPRISES: Members' Final Meeting Set for June 23
---------------------------------------------------------
The members of Sekai Enterprises Limited will hold their final
meeting on June 23, 2009, at 11:00 a.m., at the 20th Floor of Tung
Wai Commercial Building, 109-111 Gloucester Road in Wanchai,
Hong Kong.

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


SMURFIT ASIA: Placed Under Voluntary Wind-Up
--------------------------------------------
At an extraordinary general meeting held on May 8, 2009, the
members of Smurfit Asia Pacific Sales (HK) Limited resolved to
voluntarily wind up the company's operations.

The company's liquidators are:

          Natalia K M Seng
          Susan Y H Lo
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


STANDARD CAPITAL: Placed Under Voluntary Wind-Up
------------------------------------------------
At an extraordinary general meeting held on May 8, 2009, the
members of Standard Capital Finance Limited resolved to
voluntarily wind up the company's operations.

The company's liquidators are:

          Natalia K M Seng
          Susan Y H Lo
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


UNIVERSAL BRIGHT: Members' Final Meeting Set for June 23
--------------------------------------------------------
The members of Universal Bright Limited will hold their final
meeting on June 23, 2009, at the 17th Floor of Hing Yip Commercial
Centre, 272-284 Des Voeux Road, in Central, Hong Kong.

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


YUN MEN: Members' Final Meeting Set for June 23
-----------------------------------------------
The members of Yun Men Monastery Education Fund Limited will hold
their final meeting on June 23, 2009, at 3:00 p.m., at Room 1212
of Bank Centre, 636 Nathan Road, Mongkok, in Kowloon, Hong Kong.

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



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

ALAM TANNERY: CRISIL Assigns 'BB-' Rating on INR37.8 Mln Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'BB-/Negative/P4' to the
various bank facilities of Alam Tannery Pvt Ltd (Alam Tannery).

   INR85 Million FBP/FBD            BB-/Negative (Assigned)
   INR180 Million Packing Credit    BB-/Negative (Assigned)
   INR85 Million Export Bill        BB-/Negative (Assigned)
                Negotiation
   INR7.2 Million Proposed Long     BB-/Negative (Assigned)
                 Term Facility
   INR37.8 Million Term Loan        BB-/Negative (Assigned)
   INR25 Million Letter of Credit   P4 (Assigned)

The ratings reflect Alam Tannery's exposure to risks relating to
the highly working capital intensive nature of the leather
industry, small scale of operations, and intense competition.
These weaknesses are, however, partially offset by the company's
stable business risk profile, supported by the experience of its
promoters in the leather industry.

Outlook: Negative

CRISIL expects Alam Tannery's credit profile to be constrained by
the current slowdown in the European markets, which contribute
substantially to the company's revenues.  The outlook may be
revised to 'Stable' if Alam Tannery's revenues and profitability
increase more than expected.  Conversely, the outlook may be
downgraded if the company's capital structure deteriorates
significantly on account of debt-funded capital expenditure, or if
the working capital requirements increase considerably.

                        About Alam Tannery

Alam Tannery traces its origins to the early 1920s when
Mr. Mohammed Hanif set up a raw hide and skin trading centre in
North Bihar.  The promoter family set up a firm, Maqbul Alam & Co
in 1962.  The firm began operations by exporting dry salted skin
and wet blue leather to the European markets. In 1970, the
promoters shifted to Kolkata.  Alam Tannery was set up by Mr.
Maqbul Alam (son of Mr. Hanif).  The company has two tannery
units, and currently manufactures leather sofas and chair covers.
It markets its products in UK, South Africa, Germany, Poland,
Hungary and Australia.  For 2007-08 (refers to financial year,
April 1 to March 31), Alam Tannery reported a profit after tax
(PAT) of INR15 million on net sales of INR455million, as against a
PAT of INR15 million on net sales of INR458 million for 2006-07.


CATHOLIC SYRIAN: Fitch Affirms Individual Rating at 'D/E'
---------------------------------------------------------
Fitch Ratings has downgraded Catholic Syrian Bank Ltd's National
Long-term rating to 'BBB(ind)' from 'BBB+(ind)' and that of its
INR400 million subordinated debt programme to 'BBB(ind)' from
'BBB+(ind)'.  At the same time, the agency affirmed CSB's
Individual rating at 'D/E' and Support rating at '5'.  The Outlook
is Negative.

The downgrade and Negative Outlook of CSB's rating reflects
Fitch's expectation of a further deterioration in its financial
profile, given the bank's regional concentration, small franchise
and high exposure to vulnerable sectors such as textiles.  In
addition, its improved capitalization following the balance call
money (79% of the rights issue) could get impaired if credit
losses mount in an adverse credit environment.  The rating does
not factor in the unconfirmed reports in the media of CSB getting
merged with another Indian bank, the implications of which can
only be known after the terms of the proposed merger are
announced.

CSB's gross NPL ratio increased to 4.6% in March 2009 from 3.9% in
FY08 due to increasing delinquencies in the retail and SME
segments.  While restructured loans comprise 3.5% of total loans,
further deterioration of asset quality cannot be ruled out if
economic conditions take longer to stabilise - given that Indian
corporates' repayment capabilities have been impacted by the
economic slowdown.

The bank's loan growth has been less than 15% since FY07 due to
constraints on capital.  Fitch notes that CSB's capital increased
in FY09 as the bank raised equity through rights issue which was
fully subscribed; although only the application money of
INR256 million (21% of the rights issue) has been called, with the
balance expected to be called in FY10.  As CSB's internal capital
generation is low due to weak profitability, the enhanced equity
is essential for CSB to help increase its loan growth.
Historically, CSB's return on assets have been lower on account of
higher costs (cost to income ratios increased to 70% in FY09 from
67% in FY08), even though its net interest margins are higher than
the system on account of high yielding loans to small and medium
enterprises.  Hence, Fitch expects that return on assets will
remain very low if the management is unable to control its
operating costs and increases in credit costs.

CSB is an "old private" bank set up in 1920 in Kerala by members
of the local community.  The bank lends primarily to SMEs and
consumers through its 375 branches.  Over 80% of CSB's branches as
well as the bulk of its deposits and loans are concentrated in the
two southern states of Kerala and Tamil Nadu.


CHANAKYA KOTILYA: CARE Rates INR6.00cr LT Bank Facilties at 'BB'
----------------------------------------------------------------
CARE assigned 'CARE BB' (Double B) rating to the term bank
facilities of Chanakya Kotilya Shikshan Sansthan Samiti (CKSSS)
aggregating INR6.00 crore.  This rating is applicable for
facilities having tenure of more than one year.  Facilities with
this rating are considered to offer inadequate safety for timely
servicing of debt obligations. Such facilities carry high credit
risk. CARE assigns '+' or '-' signs to be shown after the assigned
rating (wherever necessary) to indicate the relative position of
the company within the band covered by the rating symbol.

The rating takes into account the experience of the society's
promoters in education field and AICTE approved institutes.
However, the rating is constrained by poor financial risk profile,
lack of track record as FY08 being its first year of operation,
and regulatory risk.

                     About Chanakya Koutilya

Chanakya Koutilya Shikshan Sansthan Samiti (CKSSS) was
incorporated by Indore based Mr Ashish Sojatia and his family in
December, 2006 under Madhya Pradesh Society Registration Act, 1973
at Indore. CKSSS operates two education institutes viz. Acropolis
Institute of Technology & Research (AITR) and Acropolis Institute
of Pharmacy (AIP) at Bhopal.  The financial profile was poor
during its first year of operation i.e. FY08.  CKSSS reported the
total operating income of INR75.62 lakh during FY08.  The society
incurred net loss during FY08.  During FY09, till the period ended
March 16, 2009, CKSSS has received fees of INR2.39 crore from its
two institutes.


MANAV NESVI: CRISIL Places 'B' Rating on INR750.0 Mln Term Loan
---------------------------------------------------------------
CRISIL has assigned its rating of 'B/Negative' to the bank
facilities of Manav Nesvi Infrastructure Pvt Ltd (MNIPL).

   INR750.0 Million Term Loan       B/Negative (Assigned)
   INR250.0 Million Proposed Long  B/Negative (Assigned)
         Term Bank Loan Facility

The rating reflects MNIPL's exposure to risks relating to
implementation and saleability of its project.  These weaknesses
are partially offset by MNIPL's established presence under Shree
Balaji Construction in the real estate sector in Ahmedabad region.

Outlook: Negative

CRISIL believes that current challenging environment in the real
estate sector will continue to constrain the credit profile of
Manav Nesvi Infrastructure Pvt Ltd's (MNIPL's).  The rating may be
downgraded if the project faces time and cost overruns, or there
is more than expected slowdown in collection of advance receipts
from customers. Conversely, the outlook may be revised to 'Stable'
in case of timely completion of project and prudent funding of
projects with debt, customer advances and equity infusion from
promoters.

                        About Manav Nesvi

Formed under the Shree Balaji group in 2007, MNIPL is currently
engaged in developing it very first project, a residential-cum-
commercial project, in Sughad, in the outskirts of Ahmedabad,
Gujarat.


MITTAL HOSPITAL: Fitch Assigns National Long-Term Rating at 'BB-'
-----------------------------------------------------------------
Fitch Ratings has assigned India's Mittal Hospitals Limited a
National Long-term rating of 'BB-(ind)'.  The Outlook is Stable.
The agency has also assigned these ratings to MHL's bank loans:

  -- Fund based limits aggregating INR17.7 million: 'F4(ind)';
  -- Cash credit limits aggregating INR6.5 million: 'BB-(ind)';
     and
  -- Long term loans aggregating INR108.5 million: 'BB-(ind)'.

The ratings reflect MHL's lack of track record, given its
relatively short operational history, and its stretched financial
profile owing to initial debt-funded capital expenditure.
Furthermore, MHL's semi-urban clientele, who prefer low-cost
heathcare solutions, limits the scope of growth into high-end
services, and restricts the size of operations.  The occupancy
rates remain low with only 55%-60% of the beds used daily; the
hospital faces competition from nursery homes which are able to
provide healthcare solutions at a lower price.  However, as
operations pick up, MHL management expects the number of referral
cases for specialized treatments to increase, thereby benefiting
utilization levels.

The ratings draw comfort from MHL's ability to tie-up with various
entities for empanelments; under these contracts the hospital is
authorized to treat employees of the entity, with payments made by
the employer.  In FY09, tie-ups with the Central Government Health
Scheme and Rajasthan Diary, along with the setting up of the
Cardiac department in December led to a 48% increase in revenues.
MHL is also in the process of finalizing a few more empanelments
which, if successful, will add to the predictability of revenues
and provide further growth to existing revenues.

MHL initiated a hospital project in 2004 to set up a multi-
speciality hospital to provide healthcare services, and commenced
providing health services in November 2005 with 150 beds.  The
total capital cost incurred on the hospital is INR158.2 million,
with the promoter's contribution amounting to INR68.2m.  To part-
finance the project, a term loan of INR72 million was taken up.
Later, an additional loan of INR18 million was taken in December
2007 to convert the hospital from multi-specialty to super-
specialty.  A demonstration of the envisaged company plan with
operations picking up to the desired levels and an increase in the
occupancy rates leading to a stabilization of the EBITDA margins
and cash flow from operations would act as a positive rating
trigger.  However, slower than anticipated growth and/or continued
losses at the PAT level coupled with a erosion of its networth
could act as a negative rating trigger.

MHL started operations in November 2005.  A substantial portion of
its expenditures is of a fixed nature, and the company was not
profitable at the EBITDA level until 2007.  Hospital revenues
increased to INR141 million in FY09 (FY06: INR14 million), while
EBITDA margin improved to 4.2% in FY08 and 17.2% in FY09 (from
negative EBITDA levels in FY06 and FY07).  The net debt at FY09E
reduced to INR72 million as fresh capital in terms of loans from
promoters and equity infusion took place.


MYSORE PAPER: CRISIL Revises Rating Outlook on LT Bank Facilities
-----------------------------------------------------------------
CRISIL has revised its rating outlook on the long-term bank
facilities of The Mysore Paper Mills Ltd (MPM) to 'Stable' from
'Positive'; the rating has been reaffirmed at 'BB+'. CRISIL has
also reaffirmed its rating on MPM's short-term rating at 'P4'.

   INR450 Million Cash Credit Limit  BB+/Stable (Outlook revised
                                                 from 'Positive')
   INR550 Million Letter of Credit   P4 (Reaffirmed)
   INR10 Million Bank Guarantee      P4 (Reaffirmed)

The outlook revision reflects CRISIL's belief that MPM's revenues
and profitability will remain under pressure over the near to
medium term, given the steep decline in newsprint (NP) prices
since December 2008, and expectations that newsprint prices will
continue to remain sluggish due to subdued demand from the media
sector.  The ratings continue to reflect MPM's presence in the
extremely competitive and commoditised NP, writing and printing
paper (WPP), and sugar sectors, and the susceptibility of these
sectors to cyclicality.  The ratings are also constrained by MPM's
below-average operating efficiency because of its modest WPP and
sugar operations, old facilities, large employee costs, and weak
financial profile marked by high gearing levels and low debt
protection ratios.

The ratings are supported by steady demand prospects in the
domestic WPP, the company's access to low-cost captive wood
plantations for manufacture of WPP and NP, and financial support
from the Government of Karnataka (GoK), the company's largest
shareholder.

Outlook: Stable

CRISIL believes that MPM will maintain its credit risk profile
over the medium term on the back of steady WPP prices and
improving sugar realisations, despite moderate pressure on its
overall revenue and profitability because of the weak NP prices.
Also, CRISIL expects the GoK to support the company in case of
financial exigencies.  The outlook may be revised to 'Positive' in
case of higher-than-expected end product prices, leading to
better-than-expected business performance. Conversely, the outlook
may be revised to 'Negative' in case of weaker-than-expected WPP
and NP prices, larger-than-expected debt funded capital
expenditure, or delayed support from GoK during exigencies.

                             About MPM

MPM was founded in May 1936 by the Maharaja of the erstwhile State
of Mysore. MPM became a government company in November 1977, when
GoK acquired a controlling interest in the company.  As on
March 31, 2009, GoK held a 64.7 per cent stake in MPM; the
remainder was held by financial institutions and the general
public.

MPM is an ISO-14001-certified company, producing NP, WPP, and
sugar at its plant at Bhadravati in Shimoga district, Karnataka.
The company has installed capacity to produce 75,000 tonnes per
annum (tpa) of NP and 30,000 tpa of WPP, and sugar crushing
capacity of 2500 tonnes per day.  MPM is the only company in India
to have a sugar factory as an integrated part of a paper mill,
wherein bagasse, a sugar by-product, is used as raw material for
WPP. The company also has a 41-mega watt captive power plant.

For the year ended March 31, 2009, MPM reported a net profit of
INR 221.3 million (INR 50.6 million in 2007-08) on net sales of
INR 4.11 billion (INR 3.78 billion).


PASUPATI SPINNING: Loan Repayment Default Cues CRISIL 'D' Rating
----------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to the various bank
facilities of Pasupati Spinning & Weaving Mills Ltd (Pasupati).

   INR50.2 Million Cash Credit Limit       D (Assigned)
   INR43.8 Million Working Capital         D (Assigned)
                    Demand Loan
   INR1.8 Million Term Loan                D (Assigned)
   INR112.4 Million Packing Credit         P5 (Assigned)
   INR71.1 Million Bill Purchase/          P5 (Assigned)
                    Discounting
   INR40.4 Million Foreign Bill Purchase   P5 (Assigned)
                    / Discounting
   INR47.3 Million Letter of Credit        P5 (Assigned)
   INR33.0 Million Bank Guarantee          P5 (Assigned)

The ratings reflect the continued default by Pasupati in its
repayment of term loan obligations with IDBI Bank, owing to weak
liquidity and continued losses since 2001.

                     About Pasupati Spinning

Pasupati, incorporated in 1979 by Mr. Ramesh Kumar Jain
manufactures 100 per cent cotton yarn, polyester grey and dyed
sewing thread and knitted fabric.  For 2007-08 (refers to
financial year, April 1 to March 31), Pasupati reported a profit
after tax (PAT) of INR19.7 million on net sales of INR1379.6
million, as against a PAT of INR110.2 million on net sales of
INR1574.4 million for 2006-07.


REMI METALS: CARE Assigns 'CARE BB' Rating on LT Bank Facilities
----------------------------------------------------------------
CARE has assigned 'CARE BB' (Double B) rating to the Long-term
Bank Facilities of Remi Metals Gujarat Limited (RMGL). Facilities
with this rating are considered to offer inadequate safety for
timely servicing of debt obligations.  Such facilities carry high
credit risk.  Also, CARE assigned, 'PR4' [PR Four] rating
to the Short-term Bank Facilities of RMGL. Facilities with this
rating would have inadequate capacity for timely payment of short-
term debt obligations and carry very high credit risk.  Such
facilities are susceptible to default.

                                Amount
   Instrument                 (INR Crore)      Rating
   ----------                 -----------      ------

   Long-term Bank Facilities     175.00        'CARE BB'
   Short-term Bank Facilities    100.00        'PR4'

Rating Rationale

The ratings are constrained by the small size of operations of
RMGL with limited product offerings, past operational
inefficiencies with operating losses, exposure to volatility in
raw material prices, project execution risk and the fact that the
company is under the purview of the Board for Industrial and
Financial Reconstruction (BIFR).  The ratings are supported by
infusion of equity funds from strategic investors (Welspun group)
for revival and the increasing operating efficiency, expected
benefits arising out of acquisition of strategic stake by the
Welspun group, raw material sourcing and marketing arrangements.
The ability of the company to exit from BIFR and successful
implementation of the expansion/modernisation project are the key
rating sensitivities.

Company Profile
Remi Metals Gujarat Ltd. (RMGL) was promoted in 1992 by Shri V.C.
Saraf and Shri. R.C. Saraf to manufacture seamless steel
tubes/pipes along with facilities for steel melting, continuous
billet casting and manufacturing of rolled products at
Jhagadia (Gujarat).  However, since its inception the plant could
not be operated at optimum levels.  Thus, the operations of the
company were unviable and it became a sick unit in August 1999 and
came under the preview of BIFR.

RMGL's rehabilitation scheme was accepted by the BIFR on
September 23, 2008.  The salient points of the scheme were One
Time Settlement (OTS) at 52.5% of the principal loan outstanding,
aggregating INR197.50 crore, waiver of entire funded interest term
loan including unpaid interest as on January 1, 2009, settlement
of the remaining dues of the lenders to be financed by way of
induction of funds by strategic investors/promoters and writing
down the company's existing share capital of INR75.62 crore by
90%.  The scheme is being implemented and all the outstanding
loans as per the scheme except for INR5.23 crore owed to
Industrial Investment Bank of India (IIBI) were settled by
December 31, 2008.  The remaining amount of INR5.23 crore has been
repaid by March 31, 2009.  The Welspun group (consisting of
Welspun Power and Steel Ltd (WPSL) and Widescreen Holding Pvt Ltd)
was inducted as a strategic partner and INR57.50 crore has been
infused as equity/preference shares by the strategic partner.

The Welspun group has drawn up an enhanced capex programme of
INR125.67 crore for modernisation and de-bottlenecking to enable
RMGL to produce valueadded products, viz seamless pipes.  The
project is proposed to be funded at a debt:equity ratio of 1.75:1.
The term loan for the project was not sanctioned till January 2009
and the funds infused by the strategic investors have been used
for implementation of the project. Once the project is completed,
the operating efficiency of the company is expected to improve.
Though machinery has been ordered, the implementation risk remains
due to delay in tying up the loan amount and also the possible
delay in delivery of machinery.

The executives of the Welspun group have been inducted on the
Board and reorganisation of the senior management is under
progress.  The net sales of RMGL grew by 65% to INR334.18 in FY08
as compared to FY07 driven by 55% growth in quantity of steel
products (rolled/cast) sold along with the increase in sales
realisation due to the favourable industry scenario.  RMGL's
operating PAT was, however, negative in the past four years. RMGL
earned non-recurring income of INR288 crore in FY08 mainly
comprising principal/interest waived by banks/Financial
Institutions (FIs) as per the rehabilitation scheme and excess
depreciation written back due to change in the method of
calculation.  Consequently, reported PAT for FY08 was INR260
crore.


RR ENERGY: CRISIL Puts 'BB+' Rating on INR269.60 Million Term Loan
------------------------------------------------------------------
CRISIL has assigned its rating of 'BB+/Stable' to the bank
facilities of RR Energy Pvt Ltd (RREPL).

   INR21.00 Million Cash Credit     BB+/Stable (Assigned)
   INR269.60 Million Term Loan      BB+/Stable (Assigned)

The rating reflects RREPL's exposure to risks relating to absence
of long-term power purchase agreement (PPA) and agreements for
fuel supply.  The rating also factors in limited financial
flexibility retained by the company due to its small cash credit
limit (INR21 million) and high average utilisation of the same
(average utilization in the past 12 months has been more than 90
per cent).  These weaknesses are, however, partially offset by
RREPL's healthy financial risk profile marked by low gearing and
healthy cash accruals, and the benefits that RREPL derives from
its high proportion of sale of power under open access.

Outlook: Stable

CRISIL believes that RREPL will maintain its stable credit risk
profile, backed by healthy net cash accruals and moderate debt
repayment obligations.  The outlook may be revised to 'Positive'
if the company enters into a long-term agreement for fuel
procurement or if there is more certainty to its revenue profile
through long-term tie ups. Conversely, the outlook may be revised
to 'Negative' if the company generates lower-than-expected
profitability or if the exposure to group companies increases from
the current levels, leading to deterioration in its financial risk
profile.

                         About RR Energy

RREPL, incorporated in 2004, initially manufactured biomass power
and had entered into a PPA with Chhattisgarh State Electricity
Board (CSEB) to supply electricity (biomass) for a period of 10
years at the rate of INR3.14 per unit.  However, due to lower
prices and delays in receipt of payments, the company terminated
the contract with the state board in November 2008.  It converted
from a complete biomass plant to a mix of biomass and thermal
power plant.  The company has increased their load from 33 Kilo
Volts (KV) to 132 KV in November 2008. Post this, the company was
also awarded open access license for supplying power.  The company
currently sells both to CSEB as well as to power traders under
open access.  RREPL reported a profit after tax (PAT) of INR50
million on net sales of INR380 million for 2007-08 (refers to
financial year, April 1 to March 31), as against a PAT of INR3.7
million on net sales of INR61.4 million for 2006-07.


TATA STEEL: Lenders Have Until Tomorrow to Approve Covenant Reset
-----------------------------------------------------------------
Tata Steel U.K.'s lending syndicate, led by Citigroup Inc., Royal
Bank of Scotland Group PLC and Standard Chartered Bank PLC, has
until tomorrow, May 29, to approve the covenant reset on the
GBP3.67 billion (US$5.84 billion) in loans the company took out to
buy Anglo-Dutch steel producer Corus Group PLC, Ainsley Thomson at
the Wall Street Journal reports citing people familiar with the
matter.

The deadline for banks to approve the request, which centers on
giving the lenders a 0.75 percentage point consent fee in return
for waiving the testing of the company's leverage-cover and
interest-cover covenants for the remainder of the year, had
originally expired May 22, the report says.

"Banks are taking longer than had been hoped because it is a
complex request," the report quoted one person familiar with the
matter as saying.

Sanjay Choudhry, spokesman for India-based Tata Steel Ltd., the
parent company of Tata Steel U.K., as cited in the report, said
the covenant amendment had been deferred as "negotiations are
still underway."

On May 15, 2009, the Troubled Company Reporter-Europe, citing
Times of India, reported Tata Steel UK, which bought Corus for
GBP6.7 billion in 2006, sought an easing on the terms of the loans
as the economic slowdown could hit its earnings, straining its
ability to service the loan.

Times of India disclosed Tata Steel UK said it will pre-pay over
GBP200 million of debt as part of the covenant reset package to
de-leverage its European operations.  According to Times of India,
Tata Steel UK intends to repay GBP200 million through additional
support from its Indian parent.

                    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.

                   About Tata Steel UK Limited

Tata Steel UK Limited is the 100% subsidiary of Tata Steel Ltd,
and is the holding company for its European steel operations,
which principally consists of the Corus group.

                          *     *     *

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.


UNITECH LIMITED: Sells Hotel in Gurgaon for INR200 crore
--------------------------------------------------------
Unitech Limited has sold a hotel in Gurgaon for INR200 crore and
is close to selling another hospitality project by June-end for a
similar amount, The Times of India reports.

The report, citing a source close to the development, says the
company has already signed an agreement to sell its 190-room
budget hotel located at NH-8 in Gurgaon.  The source said Unitech
has signed a memorandum of understanding with a high networth
individual (HNI) to sell its Gurgaon hotel for INR200 crore.

According to the report, the sale of the Gurgaon hotel comes on
the heels of the company selling its prime office complex in South
Delhi for over INR500 crore.  The sale is part of the company's
effort in raising funds to pay off debts, the report notes.

Unitech Limited (BOM:507878) -- http://www.unitechgroup.com/-- is
a real estate developer in India.  The company operates in three
segments: real estate, construction and telecom, while there are
some other smaller related businesses like consultancy,
hospitality and electrical transmission.  The company has a
diverse portfolio within the real estate segment that includes
residential, commercial, retail, entertainment, hospitality and
special economic zones' developments.  The Company's operations
started initially as provider of consultancy services and then it
entered into the business of third-party construction work.  The
project portfolio mainly covers highways, including roads and
bridges and industrial projects, including civil structures, power
plant chimneys and transmission towers.  In February 2008, Unitech
was allotted by the Department of Telecommunication, Government of
India, Unified Access Services Licenses (UASL) for all 22 telecom
circles across India.

                       *     *     *

The Troubled Company Reporter-Asia Pacific reported on Jan. 16,
2009, that Fitch Ratings downgraded Unitech Limited's National
Long-term rating to 'B(ind)' from 'BBB(ind)'.  The agency also
downgraded the ratings of its debt instruments,:

  - INR5,000 million, INR20,000 million and INR19,000 million
    long-term debt programmes downgraded to 'B(ind)' from
    'BBB(ind)';

  - INR5,000 million and INR6,000 million short-term debt
    programmes downgraded to 'F4(ind)' from 'F3(ind)';

  - INR1,000 million short-term bank loan programme downgraded
    to 'F4(ind)' from 'F3(ind)'; and

  - INR3,000 million non-fund based bank limits downgraded to
    'F4(ind)' from 'F3(ind)'.

All of ratings have been placed on Rating Watch Negative.



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

INTERNATIONAL NICKEL: Revises 2009 Capex Budget to US$166.4 Mil.
----------------------------------------------------------------
PT International Nickel Indonesia Tbk (PT Inco) has revised its
capital expenditure (Capex) budget for 2009 to US$166.4 million
from US$228.8 million previously, Antara News reports.

According to the report, the revised Capex consists of
US$83.3 million allocation for growth capital, while the other
US$83.1 million will be allocated for sustaining capital.

                          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.


PT INCO: Fitch Upgrades Ratings to 'BB+' From 'BB'
--------------------------------------------------
Fitch Ratings has upgraded the ratings of Companhia Vale do Rio
Doce and related issuances:

  -- Foreign currency and local currency Issuer Default Rating to
     'BBB' from 'BBB-';

  -- Unsecured debt of Vale and its subsidiary Vale Inco to 'BBB'
     from 'BBB-';

  -- National scale rating to 'AAA (bra)' from 'AA+ (bra)';

  -- Unsecured Brazilian real denominated debentures of Vale to
     'AAA (bra)' from 'AA+ (bra)';

  -- Ratings of PT Inco to 'BB+' from 'BB'

The Rating Outlook for Vale is Stable.  The rating of PT Inco,
which is 60% owned by Vale's subsidiary Vale Inco, has been capped
at the 'BB+' Indonesian country ceiling.  PT Inco has no financial
debt and its rating is being withdrawn.

The credit rating upgrades are due to Vale's solid business
profile and extremely strong financial profile.  The former factor
allows the company to generate healthy cash flow from operations
in the midst of the severe downturn in commodity prices and
demand; the latter factor enables the company to make selective
acquisitions and to continue to develop its mining reserves during
a time period in which many of its competitors will be preserving
cash in an effort to build liquidity.

Vale ended 2008 with $17.7 billion of total adjusted debt, as
calculated by Fitch, and $12.6 billion of cash and marketable
securities.  The company generated $17.6 billion of EBITDA and
$17.1 billion of CFO, as calculated by Fitch. With capital
expenditures of $9.0 billion and dividends of $2.9 billion, the
company had a free cash flow before debt service of $5.3 billion
in 2008.  Vale's high cash balance is a result of the
$12.2 billion equity issue it completed during 2008.

Due to the negative market for many of Vale's products,
particularly nickel, Fitch expects Vale to generate EBITDA and CFO
during 2009 at levels substantially below 2008, and possibly lower
than half of last year's figures.  With capital expenditures,
dividends, and acquisitions expected to total more than
$13 billion, Fitch believes the company's net debt position could
increase to about $11 billion from $5.1 billion at the end of
2008.  As a result, Vale's net debt/EBITDA ratio could be in a
range of 1.2 times (x) to 1.4x, and its CFO / net debt ratio could
be around 70%.  These ratios remain comfortable within the rating
categories given the very difficult market the company faces.

Vale has a very manageable debt amortization schedule.  The
company faces debt amortizations of $328 million in 2009,
$2.304 billion in 2010, $2.618 billion in 2011 and $1.137 billion
in 2012.  The majority of the 2010 - 2012 debt amortizations are
trade finance lines with BNDES, Japan Bank for International
Cooperation and Nippon Export and Investment Insurance.  The
company also has Brazilian real denominated non-convertible
debentures that mature during this time period.  In addition to
having a substantial cash position, Vale has $1.9 billion of
undrawn revolving credit lines that it could use to enhance its
liquidity.  They consist of $1.150 billion at Vale International
and a $750 million credit facility at Vale Inco.

The company has some of the largest iron ore, nickel and bauxite
reserves in the world.  Vale recently adjusted its 2009 capital
expenditure program to $9 billion from $14.2 billion to reflect
market conditions.  The projects being pursued by the company will
dramatically increase its presence in nickel, iron ore, aluminum
and copper within the next five years. Vale is augmenting these
projects with acquisitions.  Key acquisitions made during 2009
include some potash and iron ore assets owned by Rio Tinto, some
coal assets in Colombia, and a copper joint venture in Africa.

Vale released its first quarter 2009 results on May 6, 2009.
During the quarter, the company generated $5.4 billion of sales
revenues, a 27% decline from the last quarter of 2008.  The
decline in revenues was due to lower volumes ($843 million) and
prices ($1.178 billion).  Fitch calculated EBITDA was
$2.244 billion for the quarter, a decline from $2.581 billion
during the fourth quarter of 2008 and $3.671 billion during the
first quarter of 2008.  Iron ore sales for the first quarter were
made at a discount of 20%. If Vale settles its agreements for 2009
at lower levels, these sales will be adjusted downward in the
future.

The company's has made major significant efforts to reduce its
overhead costs.  Sales, general and administrative expenses
declined to $233 million from $708 million during the last quarter
of 2008, while research and development, and other expenses fell
to $506 million from $1.014 billion.  Vale's debt and cash
positions were relatively unchanged from Dec. 31, 2008.  As of
March 31, 2009, the company had $12.214 billion of cash and
$19.237 billion of debt. These figures compare with $12.639
billion of cash and $17.734 billion of debt at the end of 2008.
The change in net debt that did occur was due to a payment by Vale
of $850 million to Rio Tinto for its potash assets.


PT LIPPO: S&P Downgrades Long-Term Corporate Credit Rating to 'B'
-----------------------------------------------------------------
Standard & Poor's Ratings Services said that it had lowered its
long-term corporate credit rating on Indonesia-based property
developer PT Lippo Karawaci Tbk. to 'B' from 'B+'.  The outlook is
negative.  Standard & Poor's also lowered the rating on senior
unsecured notes due March 9, 2011, that Lippo Karawaci guarantees
to 'B' from 'B+'.  These notes were issued by Lippo Karawaci
Finance B.V.

"We lowered the ratings because Lippo Karawaci's financial metrics
have weakened to a level that is no longer supportive of S&P's
benchmark ratios for a 'B+' rating.  The deterioration is
attributable to falling operating margins, which have weakened the
company's cash flow measures.  Standard & Poor expects this
declining trend to continue as strong competition and rising
construction costs have increasingly challenged Lippo Karawaci's
business strategy, despite some early signs of economic recovery
in Indonesia," said Standard & Poor's credit analyst Wee Khim Loy.

Lippo Karawaci's largely debt-funded capital expenditure program
continues to weigh on the company's financial metrics.  Its gross
profit margin declined to 48% in 2008 from 53% in 2007.  In the
first quarter of 2009 (ended March 31), the margin fell further to
46%.  Lippo Karawaci's operating income dropped 2% to
IDR135 billion in the first quarter of 2009, compared with the
same period in 2008.  The company's revenue improved, however, in
the fiscal year ended December 2008, at Indonesian
rupiah 2.55 trillion, up from IDR2.09 trillion in fiscal 2007.
Net income also rose to IDR370 billion (fiscal 2007:
IDR353 billion).

The company's leverage position has come under increasing pressure
partly due to the depreciation of the Indonesian rupiah against
the U.S. dollar.  Its lease-adjusted ratio of debt to EBITDA was
7x as at March 31, 2009 (after hedging, the ratio was about 6.4x),
compared with a three-year average (2006-2008) of 6.3x.  The
deterioration is attributable to increased pressure on Lippo
Karawaci's operating margins from its property development
business, but this was tempered by the fairly stable revenue and
margins generated from its healthcare, hospitality, and
infrastructure operations.  The company's lease-adjusted ratio of
EBITDA to interest has been less than 2x for the past three years
and, in S&P's view, will likely remain at this level in the short
to medium term.  S&P does not expect Lippo Karawaci's cash flow
measures to significantly improve over the same periods as the
company completes its property development projects.

The rating on Lippo Karawaci continues to reflect the company's
leading position in the domestic property development market and
the stable recurring revenue from its healthcare, hospitality, and
infrastructure business segments.

"The negative outlook reflects our expectation that Lippo
Karawaci's highly leveraged financial profile could weaken further
in the near term, due to ongoing margin pressure that could affect
its future cash flows," said Ms. Loy.



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

HITACHI LTD: Faces US$214 Million in Damages Due to Turbine Defect
------------------------------------------------------------------
Hitachi Ltd may face a JPY20.2 billion (US$214 million) damages
claim from Hokuriku Electric Power Co after a turbine at a nuclear
power plant failed in 2006, Reuters reports.

According to Reuters, Hokuriku Electric said on Monday the Hitachi
turbine caused a shutdown at a nuclear power unit, forcing it to
run its thermal plants harder at higher costs for nearly two years
and hurting its earnings.

The report discloses that in the United States and Europe, utility
firms and their suppliers typically sign agreements that exempts
suppliers from indirect damages that might arise from equipment
failure.  However, the report notes, Japanese utilities and their
suppliers rarely include such a clause in their agreements,
leaving the legal situation hazy.

Reuters, citing Hokuriku spokesman Hideki Nakano, relates that
Hokuriku Electric will argue that Hitachi is responsible under a
defect liability clause in Japanese civil law, which defines
manufacturers' obligations more broadly.

Reuters says that along with a similar suit by Chubu Electric
Power Co., Hitachi faces a total of JPY62 billion in potential
damages, plus late payment charges.

Hitachi has not included the potential impact in its earnings
forecast for the financial year to next March, the report adds.

As reported in the Troubled Company Reporter-Asia Pacific, citing
Bloomberg News, Hitachi Ltd said its net loss will narrow this
fiscal year after the company booked tax writedowns in the
previous period.

Bloomberg News said that according to the Tokyo-based company,
net loss will contract to JPY270 billion (US$2.78 billion) in the
12 months ending March 31, 2010, from a record JPY787.3 billion
deficit a year earlier, while operating profit will probably fall
76 percent to JPY30 billion as sales decline 11 percent to JPY8.9
trillion.

Bloomberg News related Hitachi said it had JPY390 billion in tax-
related writedowns last fiscal year, disposing of all such
obligations.  The company will probably book a charge of
JPY200 billion, including JPY100 billion for reorganization and
JPY50 billion to reflect losses at the semiconductor unit, Renesas
Technology Corp., Bloomberg News cited Takashi Miyoshi, an
executive vice president at Hitachi, as saying.

According to Bloomberg News, the company in March said it's
cutting jobs and separating its automotive systems and consumer
units to trim costs by JPY500 billion this fiscal year and weather
the global recession.

                       About Hitachi Ltd

Hitachi Ltd. (NYSE:HIT) -- http://www.hitachi.co.jp/-- is engaged
in developing a diversified product mix ranging from electricity
generation systems to consumer products and electronic devices.
The Company has seven segments: Information & Telecommunication
Systems, Electronic Devices, Power & Industrial Systems, Digital
Media & Consumer Products, High Functional Materials & Components,
Logistics, Services & Others and financial services.  In April
2008, Hitachi acquired a majority ownership interest in M-Tech
Information Technology, Inc.  In April 2008, Hitachi, Ltd.
established a wholly owned subsidiary, Hitachi Information &
Telecommunication Systems Global Holding Corporation. In March
2008, Hitachi Consulting, the global consulting company of
Hitachi, acquired JMN Associates.  On March 16, 2009, the Company
made Hitachi Koki Co., Ltd. a subsidiary via share purchase.  On
March 18, 2009, the Company made Hitachi Kokusai Electronic Inc. a
subsidiary via share purchase.


JLOC 36: Fitch Downgrades Ratings on Class D Notes to 'B'
---------------------------------------------------------
Fitch Ratings has downgraded Class D of JLOC 36 LLC notes due
February 2016 and maintained Rating Watch Negative on this class.
Classes C1 and C2 have also been placed on RWN.  The remaining
Classes of notes have been affirmed, with Outlook on Class B notes
revised to Negative from Stable.

  -- JPY20,384,385,000* Class A1 notes affirmed at 'AAA'; Outlook
     Stable;

  -- EUR45,815,812.12* Class A2 notes affirmed at 'AAA'; Outlook
     Stable;

  -- US$5,612,963.20* Class A3 notes affirmed at 'AAA'; Outlook
     Stable;

  -- JPY5,029,960,000* Class B notes affirmed at 'AA'; Outlook
     revised to Negative from Stable;

  -- JPY2,662,920,000* Class C1 notes 'A'; placed on RWN;

  -- EUR17,936,109.95* Class C2 notes 'A'; placed on RWN;

  -- JPY3,180,710,000* Class D notes downgraded to 'B' from 'BBB';
     remain on RWN; and

  -- Class X notes (interest-only) affirmed at 'AAA'; Outlook
     Stable.

  * as of May 25, 2009

The rating actions reflect Fitch's view of the expected
recoverable amounts from recently defaulted loans which have been
revised lower from initial expectations, based on the current real
estate market and the quality of the property portfolio.  Fitch
has downgraded Class D notes to 'B' on its view that the material
default risk on the notes is present, but a limited margin of
safety remains considering collateral properties' characteristics.

Five loans in the underlying portfolio have defaulted to date,
accounting for 13.7% of the total amount of securitized loans.
The servicer has implemented the recovery plan for one loan backed
by an office building in Tokyo, while another loan backed by a
nursing house in Greater Tokyo is in the phase of workout by the
junior note holders.  In the case of the other three recently
defaulted loans, which are backed by mainly residential properties
in regional cities, the servicer has begun the process of loan
workout.

Fitch will resolve the RWN status after it has reviewed additional
information regarding such loans, including the latest property
sales activities from the servicer.

The remaining underlying loans are performing in line with Fitch
expectations.  Therefore, the agency has affirmed the ratings on
Classes A1 through B and Class X notes, but revised the Outlook of
Class B notes to Negative to reflect its concern over the future
condition of the real estate market and the general financing
environment.

Six loans have been fully repaid and the transaction is currently
secured by 28 loans backed by a total of 78 real estate and
beneficial interests and repayment of the loan in cash amount.

Rating Outlooks have been published for all newly issued Asia
Pacific Structured Finance tranches since June 2008, and
concurrently with rating actions for tranches issued prior to June
2008.  Unlike a Rating Watch which notifies investors that there
is a reasonable probability of a rating change in the short term
as a result of a specific event, rating Outlooks indicate the
likely direction of any rating change over a one- to two-year
period.


* JAPAN: 102 Firms Face Possible Bad Debts if GM Files Bankruptcy
-----------------------------------------------------------------
A leading credit research agency said that 102 Japanese companies,
including auto parts makers and suppliers, may not be able to
recover accounts receivable from General Motors Corp. if the
automotive giant files for bankruptcy, Kyodo News reports.

The report, citing Teikoku Databank, says although many of the
firms filed applications requesting that the U.S. government
guarantee the receivables with a US$5 billion Treasury Department
program, not all of them qualified for the federal assistance.

The research agency said "The potential risk of a bankruptcy
filing triggering turbulence (among corporate creditors) is in
place," Kyodo News states.

GM has business ties with a total of 133 Japanese companies,
including Mitsubishi Electric Corp., Aisin Seiki Co. and
Bridgestone Corp, the report notes.



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

* SOUTH KOREA: Banks to Ink Restructuring Deal with 9 Major Firms
-----------------------------------------------------------------
Creditor banks will sign this month a restructuring agreement with
nine major South Korean business groups suffering from liquidity
problems, The Korea Herald reports.

These companies, according to the report, last month failed to
qualify as financially healthy companies in creditor banks'
assessment of 45 major business groups, which was based on their
fiscal 2008 financial statements.

According to the report, some of the companies involved have been
openly opposing to the deal since the agreement would ask related
conglomerates to sell off non-core assets and affiliates,
especially those obtained through M&A deals before the financial
crisis broke.

The report relates that the creditors have decided to take a
tougher stance on companies if they refuse to sign the agreement,
demanding they pay back debts on time and not take out any new
loans.

In addition, the Herald says, the creditors are also investigating
the financial conditions of 430 large corporations out of 1,422
with liabilities over KRW50 billion (US$39.7 million).  The
creditor banks plan to finalize a list of firms subject to either
liquidation or a workout by the end of this month, the report
notes.



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

ENERGREEN CORP: Seeks Extension of Time to File Financial Results
-----------------------------------------------------------------
Energreen Corporation Berhad disclosed in a regulatory filing that
it won't be able to submit its financial results for the
third quarter ended March 31, 2009 by May 31, 2009.

The company has applied to Bursa Malaysia Securities Berhad for an
extension of time until June 30, 2009 to submit the financial
results.  However, Bursa Securities rejected the Company's
extension application.

Energreen Corporation said it will be appealing to Bursa
Securities for the extension of time as the company is negotiating
with the external auditors to start their audit review early to
avoid deviations since this is the last quarter of the financial
year ended March 31, 2009.

Energreen Corporation Berhad  formerly known as Welli Multi
Corporation Berhad, is Malaysia-based nvestment holding company
engaged in the provision of management services.  Its subsidiaries
include: Fourseason Foodstuff Industries (M) Sdn. Bhd., which is
engaged in the manufacture and distribution of all kinds of
foodstuff; Fourseason Trading Sdn. Bhd., which is involved in the
trading and distribution of foodstuff and toys; Welli Edible Oil
Sdn. Bhd., which is engaged in the processing of copra and palm
kernel, and trading of palm kernel oil, coconut oil, palm kernel
cake and copra cake; Welli Business Ventures Sdn. Bhd., which is
engaged in the importing, exporting, distribution and general
trading of flexible packaging, plastic sheet products, plastic
lighting diffuser, consumer products and health-related food, and
Welli Bio-Tech Sdn. Bhd., which is dormant.

                          *     *     *

Moore Stephens Chartered Accountants raised substantial doubt
about the ability of Welli Multi Corporation Berhad to continue as
a going concern after auditing the company's financial statements
for the year ended March 31, 2008.  The auditors cited these
factors:

   a) The plant and machinery of the group with a carrying amount
      of MYR33,001,438 was last revalued in 2004 using the "open
      market value on existing use" basis.  During the financial
      year, all of the group's oil mills discontinued their
      operations.  This is an indication that the plant and
      machinery could have been impaired ad may not realize its
      carrying amount.  In view of the tight cash flow of the
      group, no recent independent valuation of the plant and
      machinery was performed.  The auditors were unable to obtain
      sufficient appropriate  audit evidence to satisfy ourselves
      as to whether an impairment loss need to be made in the
      financial statements of the group.

   b) The group and the company incurred net losses of
      MYR51,386,733 and MYR8,322,366 respectively for the
      financial year ended March 31, 2008.  As at that date,
      the group's and the company's current liabilities
      exceeded their current assets by MYR175,640,659 and
      MYR8,575,952 respectively.  The group and the company
      had a deficit in shareholders' equity of MYR99,366,945
      and MYR7,673,479, respectively.


KOSMO TECHNOLOGY: Inks Proposed Subscription Deal With Al Rahba
---------------------------------------------------------------
Kosmo Technology Industrial Bhd has signed a Letter of Intent with
Al Rahba Commercial Holding & Trust Companies L.L.C. – Dubai,
United Arab Emirates (“Al Rahba”) for the proposed subscription of
new ordinary shares in Kosmo in relation to the proposed
restructuring exercise to be undertaken by Kosmo.

Al Rahba is a company incorporated under the laws of Dubai United
Arab Emirates with commercial license No. 618425, and a commercial
register No. 1037099 of Radisson SAS Hotel – Dubai Deira Creek,
Plaza Apartment 11H, 17E, P.O. Box 27928, Dubai, United Arab
Emirates.

Kosmo Technology Industrial Bhd., formerly known as Orion Unggul
Sdn. Bhd., is a Malaysia-based investment holding company.  The
company operates through two business segments: investment
holding and car accessories, which is engaged in the manufacture
and sale of plastic injection mould car accessories.  The
company operates through its subsidiaries Kosmo Motor Company
Sdn. Bhd. and Hexariang Sdn. Bhd. Kosmo Motor Company Sdn. Bhd.
is engaged in importing, assembling, distributing and
maintaining commercial vehicles.  Hexariang Sdn. Bhd. is an
investment holding company.  Nagatrend Sdn. Bhd., which is a
subsidiary of Hexariang Sdn. Bhd. is engaged in the manufacture
and sale of car accessories.  The company also has a 30% equity
interest in M Dot Mobile Sdn. Bhd.

                         *     *      *

As reported by the Troubled Company Reporter-Asia Pacific on
May 14, 2008, Kosmo Technology Industrial Berhad has been
considered as an Affected Listed Issuer under Practice Note No.
17/2005 of the Bursa Malaysia Securities Berhad as the company
was unable to provide a solvency declaration.


OCI BERHAD: Posts MYR1.45 Mil. Profit in 3rd Qtr Ended March 31
---------------------------------------------------------------
OCI Bhd reported a net profit of MYR1.54 million on
MYR1.45 million of revenues in the third quarter ended
March 31, 2009, compared with a net loss of MYR1.49 on
MYR1.39 million of revenues in the same quarter in 2008.

As of March 31, 2009, the company's unaudited balance sheet
reflected strained liquidity with current assets of
MYR4.91 million available to pay current liabilities of
MYR67.89 million.

The company's balance sheet as of end-March also showed
MYR26.98 million in total assets and MYR67.89 million in total
liabilities, resulting in a MYR40.91 million shareholders'
deficit.

OCI Berhad manufactures adhesives used in the production of
shoes for the footwear, toy making, building and construction,
automotive, furniture and packaging industries.  OCI
manufactures and markets a range of sealants and adhesives for
various consumer and industrial purposes in 70 countries around
the world.  On January 24, 2006, the Company disposed off its
entire 51% equity interest in Tongyong Resin Chemical Industry
Co. Ltd.

                          *     *     *

The company is an affected listed issuer as Ernst & Young
expressed substantial doubt regarding the company's ability to
continue as a going concern after having audited the company's
financial statements for the year ended June 30, 2007.  The
auditor pointed to the company's losses and, together with its
subsidiaries, the default on the repayment of various financial
obligations.


PANGLOBAL: Bourse to De-list Securities on June 4
-------------------------------------------------
PanGlobal Berhad's securities will be removed from the Official
List of Bursa Securities on June 4, 2009, unless an appeal is made
to Bursa Securities by June 1, 2009.

After due consideration of all facts and circumstances of the
matter, Bursa Malaysia Securities Berhad has decided to de-list
the securities of PanGlobal from the Official List of Bursa
Securities as the company does not have an adequate level of
financial condition to warrant continued listing on the Official
List of Bursa Securities.

On April 10, 2009, Bursa Securities commenced de-listing
procedures against PanGlobal as the company has failed to
implement its regularization plan within the timeframe stipulated
by the relevant authorities.

Headquartered in Kuala Lumpur, Malaysia, PanGlobal Berhad --
http://home.panglobal.com.my/-- is engaged in underwriting all
classes of general insurance business, extracting of logs,
sawmilling, manufacturing of veneer and extraction of coal.
Other activities include property investment and development and
leasing of real estate, investment holding, business management,
building and fitness club management.

PanGlobal is listed under Practice Note 4/2001.  The Bursa
Malaysia Securities has required the company to regularize its
financial condition, curb huge losses and settle debts in order
to continue operating.  The company has already submitted a
Proposed Restructuring Scheme to the Securities Commission on
Sept. 9, 2005.  On April 6, 2006, the Securities Commission
approved PanGlobal Berhad's proposed restructuring scheme for
implementation.


PECD BERHAD: To Hold Sixth Annual General Meeting on June 15
------------------------------------------------------------
PECD Berhad will hold its sixth annual general meeting at
10:00 a.m. on June 15, 2009, at Warga Hikmat Kejuruteraan Sdn.
Bhd., 46/48 Lorong Senawang 2/2, Kawasan Perusahaan Senawang,
70460 Seremban, in Negeri Sembilan.

At the meeting, the members will be asked to:

   -- receive the audited financial statements for the financial
      year ended December 31, 2008, together with the Reports of
      the Directors and the Auditors thereon;

   -- re-elect Dato' Dr. Sheikh Awab Bin Sheikh Abod as Director
      who is retiring pursuant to Article 78 of the Company’s
      Articles of Association and being eligible, has offered
      himself for re-election;

   -- re-elect (i) Dato' Hj. Abdul Rahman Bin Hj. Mohd Noor and
      (ii) Encik Wan Nor Azman Bin Wan Salleh as Directors, who
      are retiring pursuant to Article 85 of the Company’s
      Articles of Association, and being eligible, have offered
      themselves for re-election;

   -- approve the payment of Directors’ Fees for the financial
      year ended December 31, 2008;

   -- re-appoint Messrs. Ernst & Young as Auditors of the
      Company until the conclusion of the next Annual General
      Meeting and to authorise the Directors to fix their
      remuneration; and

As Special Business:

   -- consider and if thought fit, to pass the following Ordinary
     Resolution in accordance with Section 132D of the Companies
     Act, 1965:

   "That subject to Section 132D of the Companies Act, 1965
    and approvals of the relevant governmental/regulatory
    authorities, the Directors be and are hereby empowered
    to issue and allot shares in the Company, at any time to
    such persons and upon such terms and conditions and for
    such purposes as the Directors may, in their absolute
    discretion, deem fit, provided that the aggregate number
    of shares issued pursuant to this Resolution does not
    exceed ten per centum (10%) of the issued and paid-up
    share capital of the Company for the time being and the
    Directors be and are also empowered to obtain the approval
    for the listing of and quotation for the additional shares
    so issued on Bursa Malaysia Securities Berhad; and that
    such authority shall commence immediately upon the passing
    of this resolution and continue to be in force until the
    conclusion of the next Annual General Meeting of the
    Company."

                        About PECD Berhad

PECD Berhad is engaged in investment holding and provision of
management services.  The company operates in four business
segments: construction, EPCC oil and gas, property development
and others.  Its wholly owned subsidiaries include Peremba
Construction Sdn. Bhd., which is engaged in general construction
and investment holding and Wong Heng Engineering Sdn. Bhd.,
which is engaged in investment holding and engineering,
procurement, construction and commissioning emphasizing in the
oil and gas, as well as the power sectors.  PECD Berhad's 70%-
owned subsidiary is Peremba Jaya Holdings Sdn. Bhd., which is
engaged in property development, construction and investment
holding.

                          *     *     *

The Troubled Company Reporter-Asia Pacific reported on
March 7, 2008, that the company was classified as an Affected
Listed Issuer under Practice Note No. 17/2005 of the Listing
Requirements of Bursa Malaysia Securities Berhad, since the
company's shareholders' equity deficit reached MYR914.9 million
as at December 31, 2007.


TALAM CORP: Bourse Okays Proposed Transfer of Kumpulan Securities
-----------------------------------------------------------------
RHB Investment Bank Berhad, on behalf of Talam Corporation Berhad,
disclosed that Bursa Malaysia Depository Sdn Bhd has approved the
proposed transfer of the redeemable convertible preference shares
and redeemable convertible secured loan stocks to be issued
pursuant to the Proposed Revised Regularisation Plan (collectively
known as "Securities") from Kumpulan Darul Ehsan Berhad to 100
holders each holding 100 units of the Securities respectively to
meet the public spread requirement of Bursa Malaysia Securities
Berhad via bulk transfer method.

Headquartered in Kuala Lumpur, Malaysia, Talam Corporation
Berhad -- http://www.talam.com.my/-- is principally engaged in
property development.  Its other activities include trading
building materials, manufacturing of ready mixed concrete,
provision for higher educational programs, development and
management of hotel, golf and country club horticulturists,
agriculturists and landscaping designers and contractors and
investment holding.  Operations of the group are carried out in
Malaysia and China.

The Troubled Company Reporter-Asia Pacific reported on
Sept. 11, 2006, that based on the Audited Financial Statements
of Talam Corporation for the financial year ended Jan. 31, 2006,
the Auditors Ernst & Young were unable to express their opinion
on the Company's Audited Accounts.  As such, the company is an
affected listed issuer of the Amended Practice Note 17 category.
In accordance with PN 17, the company is required to submit and
implement a plan to regularize its financial condition.



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

NATIONAL POWER: May Issue More Bonds to Refinance Maturing Debt
---------------------------------------------------------------
The Power Sector Assets and Liabilities Management Corp. (PSALM),
which manages the assets and debt of National Power Corp.
(Napocor), may issue more bonds in the next two years to refinance
the latter's maturing debt, BusinessWorld reports citing a senior
official.

"It's possible because we're looking at how to manage our
liabilities.  There’s no size yet, it's still under study",
Lourdes Alzona, vice president for finance at PSALM was quoted by
the report as saying.

The report, citing Ms. Alzona, says that Napocor has
US$1.4 billion in debt due this year, around US$1.7-US$1.8 billion
in 2010 and another US$1 billion in 2011.

Napocor has also scheduled to prepay US$5.2 million of its debts
in mid-June, the report adds.

On the other hand, the entire US$1 billion raised by PSALM from
the sale of bonds last week will go to refinancing Napocor's debt,
the report recounts citing PSALM President Joze Ibazeta as saying.

Headquartered in Quezon City, Philippines, National Power
Corporation -- http://www.napocor.gov.ph/-- is a state-owned
utility that builds and operates nuclear, hydroelectric,
thermal, and alternative power generating facilities.  It works
with independent producers under a build-operate-transfer
program.  With a generating capacity of more than 11,500
megawatts, Napocor sells electricity to distributors and
industrial companies.  To comply with the privatization bill
approved by the Philippine Congress, the company has begun
selling off its generation assets to help pay for its estimated
debt of PHP600 billion.  It also separated its transmission
operations into a new subsidiary, the National Transmission
Corporation.

                         *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
Sept. 5, 2008, Fitch Ratings affirmed the rating of 'BB' to the
US$500 million floating rate notes issued by National Power
Corporation in 2006.

The TCR-AP reported on January 29, 2008, that Moody's Investors
Service changed the outlook of National Power Corporation's B1
senior unsecured debt rating to positive from stable.  This
rating action follows Moody's decision to change the outlook of
Philippines' B1 long-term government foreign currency rating to
positive from stable.



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

CHENG POH: Creditors' Meeting Set for June 3
--------------------------------------------
Cheng Poh Building Construction Pte Ltd, which is in liquidation,
will hold a meeting for its creditors on June 3, 2009, at
3:00 p.m., at Keppel Room, #02-13B, Tower 4, in 167 Jalan Bukit
Merah, Singapore 150167.

At the meeting, the creditors will be asked to:

   -- receive an update on the progress of the liquidation;
   -- approve the liquidator’s fees and disbursements; and
   -- approve that a first & final dividend of approximately
      51% be paid to those preferential creditors whose proof of
      debt claims have been admitted by the liquidator.


INDEX EDUCATIONAL: Court Enters Wind-Up Order
---------------------------------------------
On May 15, 2009, the High Court of Singapore entered an order to
wind up the operations of Index Educational Pte Ltd.

United Overseas Bank Limited filed the petition against the
company.

The company's liquidator is:

          Official Receiver
          Insolvency & Public Trustee’s Office
          The URA Centre (East Wing)
          45 Maxwell Road, #05-11 & #06-11
          Singapore 069118


PACIFIC INTERNATIONAL: S&P Cuts Corporate Credit Rating to 'BB'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered to 'BB'
from 'BBB-' its long-term corporate credit rating on Singapore-
based container shipping operator, Pacific International Lines
(Pte.) Ltd., and placed the rating on CreditWatch with negative
implications.

"The downgrade and CreditWatch placement were prompted by the
ongoing global economic downturn, which continues to depress
freight rates and shipping operators' earnings," said Standard &
Poor's credit analyst Anita Yadav.

Due to the significant global order book for new container
vessels, S&P believes that capacity supply will continue to
increase over the next few years and that the downturn in the
container markets could be deeper and longer than S&P previously
anticipated.  As a result, S&P believes that continued depressed
freight rates and volumes may further weaken PIL's profitability
and leverage measures.

"The CreditWatch review will enable us to assess the impact that
the adverse industry conditions and PIL's mitigating actions are
likely to have in S&P's opinion on the group's business and
financial risk profiles," said Ms. Yadav.

S&P aims to resolve the CreditWatch within the next three months.
S&P could lower the rating further if challenging industry
conditions put enough pressure on profit margins and cash flows to
weaken the financial profile to below S&P's benchmark ratios for
the rating.  At the current rating level, besides maintaining
adequate liquidity, S&P expects the ratio of operating lease-
adjusted funds from operations to adjusted debt to average 25% and
adjusted debt to EBITDA to remain below 4.0x.  S&P will review
these ratios quarterly.  Given the weak industry conditions, S&P
consider a positive rating action unlikely in the near term.


WORLDWIDE CONVENTION: Court Enters Wind-Up Order
------------------------------------------------
On May 8, 2009, the High Court of Singapore entered an order to
wind up the operations of Worldwide Convention Planners Pte Ltd.

S.A.M. Allied Monte-Carlo filed the petition against the company.

The company's liquidators are:

         Tay Swee Sze
         Wong Joo Wan
         Messrs. Tay Swee Sze & Associates
         137 Telok Ayer Street, #04-01
         Singapore 068602



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

IKHAYA RMBS: Fitch Affirms Ratings on 11 Tranches After Review
--------------------------------------------------------------
Fitch Ratings has affirmed 11 tranches and downgraded one tranche
of two Ikhaya RMBS (Pty) Ltd transactions following a performance
review.  The agency has simultaneously revised the Outlooks of
three tranches to Negative from Stable, and assigned Loss Severity
Ratings to all tranches.

The Ikhaya 1 RMBS (Pty) Ltd (Ikhaya 1) and the Ikhaya 2 RMBS (Pty)
Ltd (Ikhaya 2) transactions are backed by mortgage loans
originated by FNB Home Loans, a division of FirstRand Bank Limited
('AA(zaf)'/'F1+'/Negative), and have similar structures.

Ikhaya 1, issued in April 2007, has displayed increasing arrears
across all arrears buckets since closing, with arrears of more
than three months increasing to 6.18% as of March 2009 from 4.26%
in December 2008.  The arrears levels in Ikhaya 1 are higher than
in other South African RMBS transactions and the trend appears to
be accelerating.  Therefore despite the arrears reserve continuing
to be funded at its required amount, Fitch has become concerned
about the high levels of arrears which are higher than initial
expectations.  This has led the agency to revise the Outlook on
the class D notes to Negative from Stable.

Ikhaya 2, issued in August 2007, has also displayed increasing
arrears across all arrears buckets since closing, with arrears of
more than three months increasing to 6.88% as of March 2009 from
4.80% in December 2008.  The arrears reserve continues to be
funded via excess spread at its required amount.  However, the
high arrears levels have raised Fitch's concern, in similarity
with Ikhaya 1.  The class E notes have limited credit enhancement
(0.39%) and are therefore sensitive to the high arrears rate
flowing through into defaults and losses.  Fitch has therefore
downgraded the class E note to 'BB(zaf)' from 'BB+(zaf)' and
revised its Outlook to Negative from Stable.  In addition, the
Outlook for the class D notes has also been revised to Negative
from Stable for similar reasons.

The transaction's ratings are:

Ikhaya 1 RMBS (Pty) Ltd:

  -- Class A3: affirmed at 'AAA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-1'

  -- Class A4: affirmed at 'AAA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-1'

  -- Class A5: affirmed at 'AAA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-1'

  -- Class B: affirmed at 'AA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-2'

  -- Class C: affirmed at 'A(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-3'

  -- Class D: affirmed at 'BBB(zaf)'; Outlook revised to Negative
     from Stable; assigned a Loss Severity Rating of 'LS-3'

Ikhaya 2 RMBS (Pty) Ltd:

  -- Class A2: affirmed at 'AAA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-1'

  -- Class A3 : affirmed at 'AAA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-1'

  -- Class B: affirmed at 'AA(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-2'

  -- Class C: affirmed at 'A(zaf)'; Outlook Stable; assigned a
     Loss Severity Rating of 'LS-2'

  -- Class D: affirmed at 'BBB(zaf)'; Outlook revised to Negative
     from Stable; assigned a Loss Severity Rating of 'LS-3'

  -- Class E: downgraded to 'BB(zaf)' from 'BB+(zaf)'; Outlook
     revised to Negative from Stable; assigned a Loss Severity
     Rating of 'LS-3'


* SOUTH AFRICA: Falls Into First Recession Since 1992
-----------------------------------------------------
The South African economy has gone into recession for the first
time since 1992, following a sharp slowdown in the manufacturing
and mining sectors, BBC News reports.

BBC News says Africa's biggest economy contracted at an annualized
rate of 6.4 percent between January and March, compared with the
same period a year earlier.  The decline, BBC notes, was the
biggest since 1984 and followed an annualized 1.8 percent fall in
last three months of 2008.

"It's far worse than we expected," BBC News cited Elna Moolman,
economist at Barnard Jacobs Mellet as saying.  "It confirms the
recession in the economy and certainly increases concerns about
overall growth for 2009, given such a bad start for the year."

A recession is generally defined as being two quarters of negative
growth, BBC News notes.



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

TA CHONG: Fitch Downgrades Ratings on Tree Notes to 'D'
-------------------------------------------------------
Fitch Ratings has downgraded Ta Chong Bank 2006-1 Collateralized
Bond Obligation Special Purpose Trust 1's three outstanding New
Taiwan Dollar denominated tranches:

  -- NT$2,143 million Class A-2 CP downgraded to 'D(twn)' from
     'C(twn)';

  -- NT$320 million Class B CP downgraded to 'D(twn)' from
     'C(twn)'; and

  -- NT$80 million subordinated term note due February 2013
     downgraded to 'D(twn)' from 'C(twn)'.

The transaction was established in 2006 to make a one-time
purchase of NTD corporate bonds and a US$ single tranche synthetic
CDO, Castle Finance III Limited Series 1, through the issuance of
three classes of CP and one subordinated term note.  The most
senior Class A-1 CP has been paid in full.

The rating actions follow the write-down of the US$76 million
principal amount of Castle Finance to zero.  The Class A-2, Class
B and the subordinated note principal repayments rely on the
principal repayment of Castle Finance (for more information,
please refer to the rating action commentary, "Fitch Downgrades
Castle Finance III Series 1 & 2 to D", published on 26 May 2009).

Following the Stop Issuance Event arising from the non-payment of
US$ coupon by Castle Finance to SPT1 in December 2008, the
remaining NTD assets were liquidated.  Proceeds from this
liquidation, minus the cross-currency swap termination costs
payable to the CCS counterparty, were used to pay down Class A-1
in full in January 2009.  However, the remaining proceeds were not
sufficient to pay down Class A-2, Class B and the subordinated
note.  Following default, Class A-2's recovery amount is expected
to be negligible while Class B and the subordinated note are
expected to suffer 100% principal losses.


WAN HAI: S&P Affirms Long-Term Corporate Credit Rating at 'BB+'
---------------------------------------------------------------
Standard & Poor's Ratings Services said that it had affirmed its
'BB+' long-term corporate credit rating on Wan Hai Lines Ltd. and
its 'BB' issue rating on the company's unsecured corporate bonds.
The outlook remains negative.

"We expect that Wan Hai's leading market position in the
relatively stable intra-Asia market and its rapid reduction in
long-haul operations will enable the company to gradually recover
its profitability and cash flow over the next three to four
quarters, despite the current gloomy global economy," said credit
analyst Raymond Hsu.

Wan Hai's lease-adjusted debt to capital decreased to 49% at the
end of March 2009 from 54% at the end of 2008 and is likely to
decrease further, enabling the company to maintain its lease-
adjusted ratio of funds from operations to total debt above 20% in
2009, despite limited improvement in its profitability.

"Wan Hai's low capital expenditures and charter hire expenses
following its swift business restructuring will enable the company
to reduce its lease-adjusted debt over the next three to four
quarters and maintain adequate cash flow protection measures
commensurate with the current ratings," said Mr. Hsu.

The ratings continue to reflect the company's good operating
efficiency brought by its extensive service network in the intra-
Asia market, its fleet of small-to-medium size vessels, which
allows Wan Hai more flexibility to redeploy its vessels, and the
short tenor of its charter hire contracts. Counterbalancing
factors include the industry's highly cyclical nature, Wan
Hai's large, albeit lighter-than-industry-average order book, and
the company's somewhat weak and limited presence in the long-haul
markets.

The company is not immune from the current industry downturn and
incurred Taiwan dollar 1.2 billion in pre-adjusted operating
losses in the first quarter of 2009, mainly due to its exposure to
very challenging conditions in long-haul markets.  However, the
company has sharply reduced its long-haul capacity and plans to
reduce its lifting volume from long-haul markets to below 10% of
its total volume in 2009, down from 27% in 2008.  Cost savings
from Wan Hai's capacity reductions and support from the relatively
stable intra-Asia market may help the company to break even in its
pre-adjusted operating income in two to three quarters.

The negative outlook reflects the material risk that poor market
conditions could continue to weaken Wan Hai's profitability and
credit metrics.



                         *********

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

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

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


                            *********


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

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Pius Xerxes V. Tovilla, Valerie C. Udtuhan,
Marites O. Claro, Rousel Elaine C. Tumanda, Joy A. Agravante,
Marie Therese V. Profetana, Frauline S. Abangan, and Peter A.
Chapman, Editors.

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

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

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





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