TCRAP_Public/090618.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, June 18, 2009, Vol. 12, No. 119

                            Headlines

A U S T R A L I A

BRISCONNECTIONS: BTR to Contest Firm's Claim Against Defaulters
MARINER FINANCIAL: Chairman Bill Ireland Quits Post
TIMBERCORP LIMITED: Seeks Court Okay to Sell Forestry Schemes


C H I N A

CHINA EASTERN: Shanghai Airlines Merger May Spur Further Bailouts
CHINA EASTERN: To Buy 20 Airbus A320 Aircraft
KIWA BIO-TECH: Auditor Resigns due to Unsettled 2008 Service Fee
SHENZHEN DEVELOPMENT: Moody's Gives Positive Outlook on 'D' BFSR


H O N G  K O N G

CHAODA MODERN: Raises HK$1.74 Billion; Trading of Shares Resumes
EQUESTRIAN EVENTS: Commences Wind-Up Proceedings
GAMBRO CHINA: Creditors' Proofs of Debt Due on July 12
JOIN EAST: Member to Hear Wind-Up Report on July 13
KINGWAY INDUSTRIAL: Creditors' Meeting Set for June 23

MAXCON ENTERPRISES: Members' Meeting Set for July 10
PRIMARICA LIMITED: Members to Receive Wind-Up Report on July 13
SALISBURY INTERNATIONAL: Moody's Withdraws 'Ca' Rating on Notes
SHANGHAI METROADS: Placed Under Members' Voluntary Liquidation
THE TRAVEL AND TOURISM: Members' Meeting Set for July 17

TECH FORTUNE: Placed Under Voluntary Wind-Up
ZHU ZHOU: Placed Under Voluntary Wind-Up


I N D I A

AIR INDIA: Employees to Launch Indefinite Strike from July 1
BINANDA KALITA: CRISIL Places 'BB+' Rating on INR20MM Cash Credit
GUJARAT POLYFILMS: CARE Rates INR79.53cr LT Loans at 'CARE BB+'
JET AIRWAYS: Hikes Fuel Surcharge by INR400 on Domestic Sectors
SARGAM METALS: CRISIL Rates INR137.5 Million Cash Credit at 'B-'

SHREE RAJESHWARANAND: CARE Rates Long-Term Bank Loans at 'CARE BB'
SRC UDYOG: CRISIL Puts 'B+' Rating on INR180MM Cash Credit Limits
TATA MOTORS: Plans to Use Nano to Build Electric and Hybrid Cars
TIKAULA SUGAR: CARE Assigns 'CARE BB' Rating on LT Bank Facilities
UNITECH LIMITED: Raises INR10 Billion From Asset Sales This Year

VINEETAZ EXPORTS: ICRA Assigns "LBB+" Rating on INR80MM Term Loans


J A P A N

ARSENAL ASSET: Moody's Downgrades Ratings on Specified Bonds 1 & 2
JAPAN AIRLINES: Inks Parts Repair Agreement With Pratt & Whitney
JMAC4 TRUST: Moody's Changes Ratings on Various Trust Certificates
L-JAC THREE: Moody's Changes Ratings on Various Trust Certificates
METALDYNE CORP: Signs US$100MM Deal to Sell Powertrain Biz to RHJ

ORSO FUNDING: Moody's Changes Ratings on Various Trust Certs.


K O R E A

HYUNDAI MOTOR: Worker's Union Leader Quits Post
* SOUTH KOREA: Insurance Firms' Default Ratio Up 3.82% in March


N E W  Z E A L A N D

AIR NEW ZEALAND: Number of Passengers Down 9.9% in May
BRIDGECORP: Court to Align Charges Against Former Directors
PARKSIDE DEVELOPMENTS: Court Places Unit in Liquidation
SAPPHIRE II: S&P Raises Ratings on All Rated Classes of Notes


S I N G A P O R E

CARCRAFT INTERNATIONAL: Pays First and Final Dividend
HON KHENG: Court to Hear Wind-Up Petition on June 26
SOUTHERN STAR: Court Enters Wind-Up Order
VIRTUAL INNOVATIONS: Court Enters Wind-Up Order


X X X X X X X X

* ADB Okays US$3.4-Bln Funds for Developing Countries in Crisis


                         - - - - -


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A U S T R A L I A
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BRISCONNECTIONS: BTR to Contest Firm's Claim Against Defaulters
---------------------------------------------------------------
Brisbane Toll Road Link (BTR) is planning to contest
BrisConnections Management Company Limited's claim for the second
installment payment, after the toll-road company launched 140
similar claims around the country to defaulting unitholders, The
Australian reports citing BTR representative Jim Byrnes.

The Australian relates that BTR, according to Mr. Byrnes, would
defend BrisCon's AU$60 million debt claim in the Supreme Court of
NSW, and launch its own cross-claim, the report relates.

Mr. Byrnes offers free legal representation to investors seeking
to challenge BrisConnections claims, the report says.  Mr. Byrnes
said he would organise pro bono legal representation for other
BrisCon investors in a similar position, the report relates.

The Troubled Company Reporter-Asia Pacific, citing a previous
report from The Australian, said on June 12, 2009, that
BrisConnections has started its debt recovery process by launching
a flood of legal claims against 140 investors who defaulted on the
second installment payment on their partly paid securities.

The litigation phase of the debt recovery process, led by
specialist Queensland law firm Results Legal Solutions, began on
June 9 for individuals, and on June 2, for corporations, trusts
and superannuation funds, the Australian said.

Meanwhile, the Australian reports that Mr. Byrnes vowed to
resubmit his class action against BrisCon in the next few weeks.
The action was already dismissed by the court twice, the
Australian notes.

As reported in the Troubled Company Reporter-Asia Pacific on
April 27, 2009, the Australian Associated Press said that a major
shareholder in BrisConnections has launched a AU$1.3 billion class
against the company and Macquarie Bank.

The AAP said that the claim was filed in the Federal Court in
Sydney on April 24, by lawyers for Brisbane Toll Road Link
("BTR")- owned by US-based New Hampton Distressed Asset Fund and
represented by Sydney businessman Jim Byrnes - which owns 15.2% of
BrisConnections.  According to the AAP, Mr. Byrnes said the class
action was launched on behalf of all past and present unit
holders.  The action alleged misleading statements and errors in
the product disclosure statement.  The AAP said lawyer Raymond
Whitten of Whittens confirmed the court had accepted the statement
of claims seeking AU$1.3 billion.

                           Wind Up Bid

As reported in the TCR-AP on April 15, 2009, The Australian said
a vote to wind up BrisConnections failed after renegade investor
Nicholas Bolton sold his voting rights to Leighton Holdings Ltd.

The Australian, citing Leighton Holdings in a filing to the
Australian stock exchange, said the company has agreed to pay
AU$4.5 million for the voting rights associated with Mr. Bolton's
19.8 percent stake in BrisConnections.

The Australian said Mr. Bolton voted against his own motion to
wind up BrisConnections.  The motion to wind the company up failed
with 63.34% of votes against the motion and 35.66% of votes in
favor, The Australian noted.

                           Background

BrisConnections was awarded a 45-year concession to design,
construct, operate, maintain and finance the AU$4.8 billion
Airport Link toll road in Brisbane, according to a report posted
at Core Economics Web site by Sam Wylie.

The Core Economics related the equity financing component of the
AU$4.8 billion project is raised by issuing 390 million units at
AU$3 each, AU$1 is paid in July and additional payments of AU$1
must be met by the unit holders on April 20, 2009 and January 29,
2010.

According to the Core Economics, BrisConnections has promised a
payment of 5.95c to unit holders in 2009 before the first AU$1
installment is due.  However, the units fall in price to 41c on
their first day of listing on the ASX.  The issue was
undersubscribed, as evidenced by the large number of shares held
by the underwriters after the listing.

The units continue to fall in price, falling below 5c per unit in
mid September and reaching 0.1c per unit, the lowest possible
price for a listing on the ASX, in November 2008.

BrisConnections had announced that the first distribution to unit
holders will not take place until after the receipt of the first
AU$1 installment in April 2009.

                      About BrisConnections

BrisConnections Management Company Limited (ASX:BCSCA) --
http://www.brisconnections.com.au/-- is an Australia-based
company.  The company is engaged in designing, constructing,
operating, maintaining and financing Airport Link in Australia.
Airport Link is a 6.7 kilometer toll road, mainly underground,
connecting the North-South Bypass Tunnel, Inner City Bypass and
local road network at Bowen Hills, to the northern arterials of
Gympie Road and Stafford Road at Kedron, Sandgate Road and the
East West Arterial leading to the airport.


MARINER FINANCIAL: Chairman Bill Ireland Quits Post
---------------------------------------------------
Bridget Carter at The Australian reports that Mariner Financial
Limited Chairman Bill Ireland has resigned and appointed Ian
Winlaw and Denis Pidcock as directors.

Mr. Winlaw, who will be non-executive chairman, runs his own
accountancy firm, while Mr. Pidcock is a former Leighton Holdings
finance director, the report says.  Mr. Ireland, on the other
hand, will remain on the board as managing director, the report
notes.

The Australian says that Mariner Financial has flagged a full-year
loss as it exits the retail investment funds management business
and focus on investment structures with wealthy investors.

According to the report, the company said most of its bank debt
had been retired, with just AU$600,000 outstanding.  The main
remaining assets, the report says, were an equity investment in a
AU$42 million portfolio of commercial operating leases through the
Solutions Investment Group Trust and a half-share in the Southern
Hub Project near Goulburn, NSW, involving a major industrial hub.

Mariner, as cited by the report, said its remaining liabilities
were convertible notes and bank debt, with most notes repayable
next March.

The company was looking for new corporate activities and would
change its name to Mariner Corp, the Australian adds.

The Troubled Company Reporter-Asia Pacific reported on June 10,
2009, that Mariner Securities Limited has agreed to sell the
management rights of its property trusts, Mariner Property Trust
No. 1 (MPT1), the Powercor building located in Melbourne's CBD, to
Entrust Funds Management Limited (Entrust).  Subject to unit
holder approval, Entrust will become the responsible entity of
MPT1.

The company said it has also agreed to transfer the management
rights of the Mariner Coastal Land Fund, which includes the Yamba
residential development.

Approval for both proposals will be sought at unit holder meetings
to be held on June 30, 2009.

As reported in the Troubled Company Reporter-Asia Pacific on
Nov. 28, 2008, the Australian said Mariner Financial has been
under considerable financial distress.  Its share price plunged
91 percent from AU$2.15 in February 2007 to just 19c on Nov. 26,
2008.  Mariner's shares closed at 1c on Feb. 27.

The company has slashed two-thirds of its staff and has been
conducting a fire sale of assets and management rights this year.

Mariner Financial, according to a TCR-AP report on October 9,
2008, appointed receivers and managers to its wholly owned
subsidiary, Mariner Treasury Limited.

                     About Mariner Financial

Based in Australia, Mariner Financial Limited --
http://www.marinerfunds.com.au/-- focuses on originating,
structuring and distributing investment products for Australian
investors.  During the fiscal year ended June 30, 2008, its
activities included property investment and development;
retirement and superannuation investment, and infrastructure
investment.  The company predominantly distributes its investment
products through independent advisory intermediaries.  In April
2008, Mariner Financial Limited announced the sale to APA Group of
its remaining units in the Mariner Pipeline Income Fund.


TIMBERCORP LIMITED: Seeks Court Okay to Sell Forestry Schemes
-------------------------------------------------------------
The administrators of Timbercorp Ltd are expected to apply to the
courts this week for approval to wind up and sell the assets of
the group's managed forestry schemes, Rachel Donkin at The West
Australian reports.  The report says the administrators believed
this would be the best option for grower investors to recoup their
investment after uncovering a AU$170 million funding shortfall
across the 11 projects.

The report, citing Timbercorp administrator in a letter to
investors, says although there was a potential for the schemes to
become cash-flow positive, it had decided winding up projects and
selling the land, trees and industrial equipment was in growers'
"best interests".

The grower investors were told that due to the "hopelessly
insolvent" nature of Timbercorp Securities Ltd (TSL), the company
responsible for running the schemes, it would be unable to meet
its legal obligations to growers, and no prospective replacements
had been willing to cover the cash flow shortfall, the West
Australian says.

"Unlike the horticultural schemes, growers in the forestry schemes
own the trees which have an intrinsic value," lead administrator
Mark Korda was quoted by the report as saying in its letter to
investors.  "Accordingly, (we) intend to apply to the court to
seek an early termination of the forestry schemes (and) if
successful we can commence the asset sale process."

The report says administrators had already received "significant
expressions of interest" in the forestry assets.

Financial Services and Corporate Law Minister Chris Bowen,
according to the West Australian, has reportedly agreed to meet a
committee of Timbercorp investors who are trying to preserve their
holdings in the horticultural projects.

As reported in the Troubled Company Reporter-Asia Pacific on
April 24, 2009, Timbercorp Limited called in voluntary
administrators to the company and its subsidiaries.  The company
appointed Mark Korda and Leanne Chesser of KordaMentha as
voluntary administrators.  "The company had been hurt by the
combined impact of declining global asset values, tightening
credit, the economic downturn and drought," according to a
statement issued by Kordamentha.

The administrators would implement this three-point plan:

  1. suspend forestry and horticulture operations while funding
     options are determined;

  2. develop a strategy for each forestry and horticulture
     product, project by project, then execute; and

  3. attend to statutory reporting, investigation, creditor
     and shareholder liaison.

Timbercorp had previously announced that the company's business
model was no longer appropriate in the current environment due to
the capital intensity of the projects and was in the process of
transforming the business into an integrated agribusiness company.
Unfortunately these plans, which included asset sales, could not
be executed in the timeframe to meet the company's debt
obligations.

In the full year accounts issued in November 2008, Timbercorp
reported current debt of AU$568 million, net debt of AU$903.1
million and net assets of AU$595 million.

                        About Timbercorp

Based in Melbourne, Australia, Timbercorp Limited (ASX:TIM) --
http://www.timbercorp.com.au/-- is engaged in the establishment,
development, marketing and management of primary industry-based
projects, the acquisition of land, water rights and infrastructure
to support these projects, and the provision of finance to growers
in these projects.  The company is also involved in eucalypt and
olive oil processing operations, asset development, asset
management, the sale of agricultural assets and holding
investments in agricultural-related enterprises.  The company is
organized in four business segments: Horticulture, Forestry,
Finance and Asset development.  Horticulture segment is engaged in
orchard / vineyard establishment, including securing access to
land, water rights and other infrastructure.  Forestry segment is
engaged in land acquisition and management.  Finance segment is
engaged in the provision of loan finance to new and existing
project grower investors.  Asset development segment develops and
manages orchards and vineyards under contract to third parties.


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C H I N A
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CHINA EASTERN: Shanghai Airlines Merger May Spur Further Bailouts
-----------------------------------------------------------------
China Eastern Airlines Corp.'s planned merger with Shanghai
Airlines Co., designed to help the carriers wean off state aid,
may instead spur further bailouts as the combined company won't
shed staff, Bloomberg News reports.

According to Bloomberg, the government is backing a combination of
the two airlines after state-controlled companies agreed to buy
CNY8 billion (US$1.2 billion) of new equity in the carriers.
Still, China Eastern's pledge not to fire workers amid government
concerns about worsening unemployment may undermine profitability,
the report says.

"The merger of two problem airlines won't create a strong
carrier," Bloomberg quoted Corrine Png, a Singapore-based JPMorgan
Chase & Co. analyst, as saying.  "The only way to help them is if
the government injects more capital."

Bloomberg News relates that unless it sheds staff, the enlarged
China Eastern will have about twice as many employees per plane as
Air China Ltd., the nation's No. 2 carrier.  That may erode gains
from the new group's 50 percent share of flights in and out of
Shanghai, the country's commercial capital, and leave it
struggling to pare last year's combined losses of CNY16.5 billion,
the report notes.

As reported in the Troubled Company Reporter-Asia Pacific on
June 9, 2009, Bloomberg News said the Chinese government has
approved the consolidation of China Eastern Airlines Corp. and
Shanghai Airlines Co.

Bloomberg News said the government bailed out the two state-
controlled carriers after they incurred joint losses of CNY16.5
billion (US$2.4 billion) last year.

Currently, China Eastern reports a registered capital of
CNY2.6 billion (US$382.4 million) with 220 aircraft, while
Shanghai Airlines has a registered capital of CNY521 million
(US$76.6 million) with 70 aircraft, Xinhua News discloses.

                     About Shanghai Airlines

Shanghai Airlines Co., Limited -- http://www.shanghai-air.com/
-- is a China-based commercial airline company.  The company
mainly provides air passenger and air cargo transportation
services and air mail services domestically and internationally.
The company also develops traveling, import and export trading
and advertising businesses.  As of December 31, 2008, the company
had 66 airplanes, 14 major subsidiaries and one associate.

                       About China Eastern

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- provides civil
aviation services, including passenger transportation, cargo
transportation and mail delivery services.  The company operates
its businesses in domestic and overseas markets.  As of Dec. 31,
2008, the company operated 423 airlines, of which 332 were
domestic passenger transportation lines, one domestic cargo
transportation line, 75 international passenger transportation
lines, 14 international cargo transportation lines, 16 regional
passenger transportation lines and one regional cargo
transportation line.  The company also involves in operation of
five Taiwan chartered flight passenger transportation lines and
one cargo transportation line.  As of December 31, 2008, the
company operated approximately 240 aircrafts, including 214 jumbo
jets and 11 cargo jets.

                          *     *     *

China Eastern continues to carry Fitch Ratings' B+ foreign
currency and local currency issuer default ratings, and Xinhua Far
East China Ratings' BB+ issuer credit rating with a stable
outlook.


CHINA EASTERN: To Buy 20 Airbus A320 Aircraft
---------------------------------------------
China Eastern Airlines said on Thursday it has agreed to buy 20
Airbus A320 aircraft with a list price of CNY9.92 billion
(US$1.45 billion), Reuters reports.

Reuters says that the airline did not disclose the actual amount
it would pay for the order, which still needs regulatory approval,
but said it would be less than the list price.  According to the
report, China Eastern said the A320 aircraft, scheduled for
delivery between 2011 and 2013, will be used to meet domestic air
travel demand in the coming years and improve the carrier's
competitiveness.

China Eastern, as cited by Reuters, said that the deal, which will
be funded mostly by bank loans, will increase the carrier's debt
ratio in the short term but will not affect its daily cash flow or
operations.

Headquartered in Shanghai, China, China Eastern Airlines
Corporation Limited's -- http://www.ce-air.com-- provides civil
aviation services, including passenger transportation, cargo
transportation and mail delivery services.  The company operates
its businesses in domestic and overseas markets.  As of Dec. 31,
2008, the company operated 423 airlines, of which 332 were
domestic passenger transportation lines, one domestic cargo
transportation line, 75 international passenger transportation
lines, 14 international cargo transportation lines, 16 regional
passenger transportation lines and one regional cargo
transportation line.  The company also involves in operation of
five Taiwan chartered flight passenger transportation lines and
one cargo transportation line.  As of December 31, 2008, the
company operated approximately 240 aircrafts, including 214 jumbo
jets and 11 cargo jets.

                         *     *     *

China Eastern continues to carry Fitch Ratings' B+ foreign
currency and local currency issuer default ratings, and Xinhua Far
East China Ratings' BB+ issuer credit rating with a stable
outlook.


KIWA BIO-TECH: Auditor Resigns due to Unsettled 2008 Service Fee
----------------------------------------------------------------
Kiwa Bio-Tech Products Group Corporation disclosed in a filing
with the Securities and Exchange Commission that Mao & Company,
CPAs, Inc., would not stand for reappointment for 2009 audit
services unless 2008 audit service fee is settled.  Effective as
of June 2, 2009, the Company dismissed its independent registered
public accounting firm Mao & Company.  The decision to change
accountants was approved by the Company's board of directors.

Mao & Company reported on the Company's consolidated financial
statements for the years ended December 31, 2008, and 2007.  For
these periods and up to June 2, 2009, there were no disagreements
with Mao & Company on any matter of accounting principle or
practices, financial statement disclosure, or auditing scope or
procedure, which disagreement, if not resolved to the satisfaction
of Mao & Company, would have caused it to make reference thereto
in its report on the financial statements for these years.  During
these years, there were no reportable events within the meaning
set forth in Item 304(a)(1)(v) of Regulation S-K.

The reports of Mao & Company on the financial statements of the
Company for the fiscal years ended December 31, 2008, and 2007 did
not contain any adverse opinion or disclaimer of opinion and were
not qualified or modified as to uncertainty, audit scope or
accounting principles.

The Company has engaged AGCA, Inc., to assume the role of its new
principal independent accountants.  The decision to engage AGCA
was approved by the Board of Directors on June 2, 2009.  The
Company signed the AGCA engagement letter on June 2.

                     About Kiwa Bio-Tech

Headquartered in Claremont, California, Kiwa Bio-Tech Products
Group Corporation (OTC BB: KWBT.OB) -- http://www.kiwabiotech.com/
-- develops, manufactures, distributes and markets bio-
technological products for agricultural and natural resources and
environmental conservation.

The Company has established two subsidiaries in China: (1) Kiwa
Shandong in 2002, a wholly owned subsidiary, and (2) Kiwa Tianjin
in July 2006, of which the company holds 80% equity.

                       Going Concern Doubt

On March 6, 2009, Mao & Company, CPAs, Inc., in New York City
expressed substantial doubt about the Company's ability to
continue as a going concern after auditing the Company's financial
results for periods ended December 31, 2008, and 2007.  The
auditors pointed that the Company has suffered recurring losses
from operations, has debts maturing in 2009 and has a working
capital deficit and a net capital deficiency as of December 31,
2008.


SHENZHEN DEVELOPMENT: Moody's Gives Positive Outlook on 'D' BFSR
----------------------------------------------------------------
Moody's Investors Service changed the outlook on Shenzhen
Development Bank's D- bank financial strength rating and Ba2
foreign currency deposit rating to positive from stable.

This rating action follows Ping An Insurance (Group) Company of
China, Ltd.'s (unrated) announcement that it would increase its
shareholding in SZDB to as much as 30% by December 31, 2010.

"The change in the outlook on SZDB's ratings mainly reflects the
potential increase in its capital base through the issue of new
shares, as a result of the PA investment," says Leo Wah, a Vice
President / Senior Analyst in Moody's Hong Kong office, adding,
"Meanwhile, the benefit of having PA as its largest shareholder
would also strengthen its franchise".

PA will increase its stake in SZDB through two transactions.  The
company will acquire 520 million shares of SZDB from Newbridge for
RMB11.5 billion (US$1.7 billion) by the end of 2010 for cash or
through a share swap for its own shares, subject to the approvals
of the regulators and PA's shareholders.  In addition, Ping An
Life (unrated), which is 99%-owned by PA, will purchase
370 million to 585 million new shares from SZDB for
RMB6.7 billion to RMB10.7 billion (US$1 billion to
US$1.6 billion).  The completion will take place after the
conditions of the transaction, such as the receipts of the
approvals of the regulators and SZDB's shareholders, are
fulfilled.

SZDB's BFSR would benefit from these factors:

1) Its capital base will increase through the issue of new shares.
   SZDB's capital base was modest with a capital adequacy ratio of
   8.5% and a tier-1 ratio of 5.2% as of March 31, 2009.  The new
   shares would have increased the CAR to a range of 10.7% to
   12.1% and the tier-1 ratio to 7.4% to 8.8%, depending on the
   number of new shares issued eventually.  These estimates are
   based on the March 31, 2009 figures and exclude the
   RMB1.5 billion hybrid issued in May 2009.  The new capital
   would allow SZDB to satisfy its future expansion at a
   reasonable pace.

2) While Newbridge has contributed to the turnaround of SZDB and
   the clean-up of its balance sheet over the past few years, PA
   would offer SZDB the backing of a solid financial institution
   with strong long-term commitment.  PA had an asset size of
   RMB754.7 billion (US$110.4 billion) as of December 31, 2008,
   while it also boasts experience in bank management through its
   90% stake in Shenzhen Ping An Bank.  In the long run, cross-
   selling opportunities within the group following the
   enhancement of SZDB's product offering could boost SZDB's
   bottom line.

3) The status of having PA as the largest shareholder and possible
   merging or cooperation with Shenzhen Ping An Bank would enlarge
   the franchise.

4) Continued improvements of SZDB's financial fundamentals.

The increase in capital would also provide a cushion against an
expected deterioration in asset quality amid the more difficult
economic conditions.  In determining the BFSR, Moody's assesses a
bank's capital level after incorporating expected losses on its
risky assets using scenario analysis.  In the reports, the
recalibration of some weights and the relative importance of
rating factors within Moody's current bank rating methodologies
have resulted in capital adequacy being an important BFSR
consideration.

Moody's has not factored in any parental support for SZDB's
current foreign currency deposit rating.  However, with this
acquisition, SZDB will benefit from parental support in various
ways and Moody's would consider if notching uplift will be given
to the deposit rating.  In this context, Moody's would evaluate
factors such as the changes in shareholding, the extent of and the
limitations on support available, control, reputation and brand
risk, the financial strength of PA, etc.

A meaningful increase in the capital base such as a tier-1 ratio
reaching about 8%, after taking into account the scenario analysis
as described above, a significantly stronger franchise and
continued improvements in financial fundamentals could result in
upgrades of the ratings.  Meanwhile, evidences of parental
support, in terms of both capability and willingness, could also
lead to an upgrade of the bank's foreign currency deposit rating.

A failure to increase the capital base while all other things
being equal, after the adoption of scenario analysis, could result
in a change in the ratings outlook back to stable.

Moody's last rating action on SZDB was taken on August 29, 2008,
when the bank's BFSR was upgraded from E+ to D- and its long-term
foreign currency deposit rating from Ba3 to Ba2;

Shenzhen Development Bank is a nationally-licensed bank in China.
Its primary activities include deposits and lending, domestic and
international settlements, bills discounting, foreign exchange
dealing, trade financing and fixed-income securities trading.
These products and services are provided through a network of 282
outlets located across 18 cities in China.  As of December 31,
2008, SZDB had total assets of RMB 474 billion (US$ 69 billion).

The outlook of these ratings is changed to positive from stable:

  -- BFSR: D-
  -- Foreign current deposit rating: Ba2


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H O N G  K O N G
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CHAODA MODERN: Raises HK$1.74 Billion; Trading of Shares Resumes
----------------------------------------------------------------
Chaoda Modern Agriculture (Holdings) Ltd. stock trading will
resume today in Hong Kong after the company raised about HK$1.74
billion in net proceeds from a share sale, Bloomberg News reports
citing a company statement to the Hong Kong stock exchange.

Reuters relates that the company had said it planned to sell up to
US$228 million shares at a discount, raising capital to repay
outstanding debt.

According to Reuters, the Chinese agricultural products producer
and distributor said it would sell up to 388 million shares, or
12.8 percent of its enlarged share capital, to professional and
institutional investors at HK$4.60 each, raising HK$1.78 billion
(US$228 million).

Chaoda Modern Agriculture (Holdings) Limited --
http://www.chaoda.com.hk/-- is an investment holding company.
The company, through its subsidiaries is engaged in producing and
selling agricultural products.  The subsidiaries of the company
include Timor Enterprise Limited, Insight Decision Limited, Huge
Market Investments Limited, Worthy Year Investments Limited, Great
Challenge Developments Limited, Good Add Holdings Limited, Chaoda
Vegetable & Fruits Trading Limited, Fuzhou Chaoda Modern
Agriculture Development Company Limited, Fujian Chaoda Green
Agriculture Development Company Limited, Fujian Chaoda Livestock
Company Limited and Chaoda Vegetables & Fruits Limited.

On May 4, 2009, the Troubled Company Reporter-Asia Pacific
reported that Standard & Poor's Ratings Services affirmed the
'BB-' long-term corporate credit rating on Chaoda Modern
Agriculture (Holdings) Ltd.  The outlook is negative.  At the same
time, Standard & Poor's affirmed the 'BB-' issue rating on the
company's US$225 million senior notes due February 2010 and Hong
Kong 1.34 billion convertible bond due May 2011.  Both ratings
were removed from CreditWatch, where they were placed with
negative implications on March 3, 2009.

The TCR-AP also reported on May 4, 2009, that Moody's Investors
Service downgraded Chaoda Modern Agriculture (Holdings) Ltd's
corporate family and foreign currency debt ratings to B1 from Ba3.
The ratings are under review for further possible downgrade.


EQUESTRIAN EVENTS: Commences Wind-Up Proceedings
------------------------------------------------
On June 3, 2009, the members of Equestrian Events (Hong Kong) of
the Games of the XXIX Olympiad Company Limited passed a resolution
to voluntarily wind up the company's operations.

The company's liquidator is:

          Leung Wun Man Emba
          Room D, 32nd Floor
          Lippo Centre, Tower 1
          89 Queensway
          Hong Kong


GAMBRO CHINA: Creditors' Proofs of Debt Due on July 12
------------------------------------------------------
The creditors of Gambro China Limited are required to file their
proofs of debt by July 12, 2009, to be included in the company's
dividend distribution.

The company's liquidator is:

          Yu Kwong Man
          Tai Yau Building, 21st Floor
          181 Johnston Road
          Wanchai, Hong Kong


JOIN EAST: Member to Hear Wind-Up Report on July 13
---------------------------------------------------
The member of Join East Investment Limited will receive on
July 13, 2009, at 10:00 a.m., the liquidator's report on the
company's wind-up proceedings and property disposal.

The meeting will be held at Room 1601 of Wing On Centre, 111
Connaught Road, in Central, Hong Kong.


KINGWAY INDUSTRIAL: Creditors' Meeting Set for June 23
------------------------------------------------------
The creditors of Kingway Industrial Limited will hold their
meeting on June 23, 2009, at 4:00 p.m., for the purposes of
Sections 241, 242, 243, 244 and 245A of the Companies Ordinance.

The meeting will be held at Rooms 602-3 of Union Park Tower, 168
Electric Road, in North Point, Hong Kong.


MAXCON ENTERPRISES: Members' Meeting Set for July 10
----------------------------------------------------
The members of Maxcon Enterprises Limited will hold their meeting
on July 10, 2009, at 10:00 a.m., at Rooms 905-909 of Yu To Sang
Building, 37 Queen's Road in Central, Hong Kong.

At the meeting, Chu King Hei Victor, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


PRIMARICA LIMITED: Members to Receive Wind-Up Report on July 13
---------------------------------------------------------------
The members of Primarica Limited will receive on July 13, 2009, at
10:00 a.m., the liquidator's report on the company's wind-up
proceedings and property disposal.

The company's liquidator is:

           Yeh King Yeung Albrecht Carl
           Wing Hang Finance Centre, 23rd Floor
           60 Gloucester Road, Wanchai
           Hong Kong


SALISBURY INTERNATIONAL: Moody's Withdraws 'Ca' Rating on Notes
---------------------------------------------------------------
Moody's withdrew its rating of one class of notes issued by
Salisbury International Investments Limited.  These notes were
redeemed in full on June 10, 2009.

The rating action is:

Salisbury International Investments Ltd:

(1) Series 2005-9 US$15,000,000 Floating Rate Portfolio Credit
Linked Notes due 2012

  -- Current Rating: WR
  -- Prior Rating: Ca
  -- Prior Rating Date: March 2, 2009, downgraded to Ca from Ba3


SHANGHAI METROADS: Placed Under Members' Voluntary Liquidation
--------------------------------------------------------------
On June 4, 2009, the sole member of Shanghai Metroads Advertising
Company Limited passed a resolution that voluntarily liquidates
the company's business.

The company's liquidator is:

          Philip Brendan Gilligan
          Alexandra House, 7th Floor
          18 Chater Road
          Central, Hong Kong


THE TRAVEL AND TOURISM: Members' Meeting Set for July 17
--------------------------------------------------------
The members of The Travel and Tourism Education Programme (H.K.)
Limited will hold their meeting on July 17, 2009, at 11:00 a.m.,
at the 27th Floor of Alexandra House, 18 Chater Road, in Central,
Hong Kong.

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


TECH FORTUNE: Placed Under Voluntary Wind-Up
--------------------------------------------
At an extraordinary general meeting held on June 5, 2009, the
members of Tech Fortune Development Limited resolved to
voluntarily wind up the company's operations.

The company's liquidator is:

          Lai Wing Kin
          Wing On Centre, Room 1601
          111 Connaught Road Central
          Hong Kong


ZHU ZHOU: Placed Under Voluntary Wind-Up
----------------------------------------
At an extraordinary general meeting held on June 3, 2009, the
members of Zhu Zhou Agency Company Limited resolved to voluntarily
wind up the company's operations.

The company's liquidator is:

          Lau Shiu Wah
          Yu To Sang Building, Room 609
          37 Queen's Road Central
          Hong Kong


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

AIR INDIA: Employees to Launch Indefinite Strike from July 1
------------------------------------------------------------
Employees of Air India will go on an indefinite strike from July 1
if the management delays their salaries next month, The Economic
Times reports citing a workers' union leader.

"We have decided to go on an indefinite strike from July 1 if the
Air India management refuses to pay our salaries on time.  We are
chalking out strategies for our further course of action," J.B.
Kadian, general secretary of the Air Corporation Employees' Union
(ACEU), told IANS.

As reported in the Troubled Company Reporter-Asia Pacific on
June 16, 2009, The Financial Express said Air India Ltd will defer
the payment of salaries for the month of June of about 30,000
employees by 15 days.

"This has never happened in Air India.  We are not going to accept
this at any cost. If our salaries are delayed even by a day, we
will stop working from July 1," Mr. Kadian was quoted by the
Economic Times as saying.

The union has already submitted a memorandum to NACIL chairman and
managing director Arvind Jadhav, requesting him to roll back the
management decision to delay the salaries.

Citing a previous report by The Financial Express, the TCR-AP said
on June 10, 2009, that the National Aviation Company of India Ltd
(Nacil), the company that operates Air India, is seeking INR14,000
crore in equity infusion, soft loans and grants.

However, the Express related, the airline is unlikely to get the
amount that it is seeking, and may have to settle for around
US$1-1.5 billion (INR5,000-5,500 crore) as indicated by the
government.

"An equity infusion of up to INR1,500 crore, plus a soft loan of
INR3,000-3,500 crore will be considered on a priority basis.
There is no chance of the airline receiving a package of INR14,000
to 15,000-crore package," the Express quoted a very senior source
in the civil aviation ministry as saying.

The report disclosed that a hectic reworking of the capital
restructuring possibilities is underway and is expected to be
submitted by June 22.

Civil aviation minister Praful Patel, according to the Express,
had already said an initial public offering of shares in Air India
could be considered in the near future.  The Exress noted that any
decision in this regard, however, will be considered once the
market revive.

Though auditors are still vetting Nacil's 2008-09 accounts, the
airline's losses are in the range of INR5,000 crore instead of the
expected INR3,000 crore, the Express said.

                      About Air India

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

Air India and Indian Airlines posted a combined net loss of
INR688 crore for the financial year ended March 2007, according to
The Financial Express.


BINANDA KALITA: CRISIL Places 'BB+' Rating on INR20MM Cash Credit
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank
facilities of Binanda Kalita.

   INR20 Million Cash Credit        BB+/Stable (Assigned)
   INR120 Million Bank Guarantee    P4 (Assigned)

The ratings reflect the Bhagya Kalita group's limited geographical
and customer diversification, and the working-capital-intensive
nature of its operations.  These weaknesses are, however,
partially offset by the group's strong revenue visibility for the
medium term, backed by a healthy order book.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of Bhagya Kalita, Binanda Kalita and
Sweety Real Estate Pvt Ltd (SREPL).  This is because the three
entities (collectively referred to as the Bhagya Kalita group)
have a common management, and are in the same line of business.

Outlook: Stable

CRISIL expects the Bhagya Kalita group to benefit from the growth
prospects of the civil construction industry.  The outlook may be
revised to 'Positive' if the group strengthens its business
profile through greater revenue diversity while maintaining stable
operating margins; or to 'Negative' if any large, debt-funded
capital expenditure or acquisition leads to deterioration in the
group's financial risk profile.

                        About the Group

Bhagya Kalita was set up as a partnership concern in 1975, with
Mr. Bhagat Kalita and his three sons, Mr. Bhagya Kalita,
Mr. Keshav Kalita and Mr. Binanda Kalita as partners with equal
share in profits.  It became a proprietorship concern in 1984 with
Mr. Bhagya Kalita as the proprietor.  Bhagya Kalita is the
flagship concern of the group, which also comprises Binanda Kalita
and SREPL.  Binanda Kalita is a proprietorship concern set up in
1988 by Mr. Binanda Kalita, while SREPL is a closely-held company
set up in 1999 by Mr. Bhagya Kalita and his wife Mrs. Gitika
Kalita.  The group is engaged in civil engineering activities such
as construction of roads, and has executed several projects for
the Public Works Department, Assam and the National Highway
Authority of India in Assam and Mizoram.

The group reported a profit after tax (PAT) of INR61.1 million on
net sales of INR805 million for 2007-08 (refers to financial year,
April 1 to March 31), as against a PAT of INR24.3 million on net
sales of INR350 million for 2006-07.


GUJARAT POLYFILMS: CARE Rates INR79.53cr LT Loans at 'CARE BB+'
---------------------------------------------------------------
CARE has assigned a 'CARE BB+' (Double B Plus) rating to the Long-
term Bank Facilities of Gujarat Polyfilms Pvt. Ltd. (GPPL)
aggregating INR79.53 crore.  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 factors in GPPL's established position in the nylon
yarn market and the strength it derives from promoter groups, who
have strong presence in Surat textile market.  The rating is
however constrained by the risk associated with the delayed
ongoing projects which are highly debt funded plus GPPL's moderate
financial profile indicated by high gearing levels and relatively
stressed liquidity position.  Volatile nature of the industry with
global linkages and company's relatively small size with short
track record of operations further constrain the rating. GPPL's
ability to stabilise operations of new product and capacity on
commissioning the ongoing projects and any major deviations in the
financial profile are key rating sensitivities.

                     About Gujarat Polyfilms

The company is promoted by Pratibha Group (60% stake) and T.M.
Patel Group (40% stake) of Surat for manufacturing of nylon yarn
in 2006 at Surat.  GPPL has recently increased the installed
capacity of nylon yarn manufacturing to 5000 mtpa (metric tonnes
per annum) of nylon yarn and set-up manufacturing of nylon
chips with an installed capacity of 8750 mtpa.  GPPL has recently
started commercial production at its units.

During 2007-08, GPPL reported at PAT (Profit after tax) of
INR3.30 crore on a total income of INR73.50 crore as against a PAT
of INR3.17 crore registered on a total income of INR48.92 crore
during 2006-07.

Overall growth of the company is expected to be driven by the
overall growth of nylon market targeting the textile and
industrial sector, which is currently facing a slowdown in due to
negative economic scenario.  Growth will also be driven by the
company's ability to market the nylon chips to the clients in
engineering plastics and automobile industry.


JET AIRWAYS: Hikes Fuel Surcharge by INR400 on Domestic Sectors
--------------------------------------------------------------
Jet Airways has increased its fuel surcharge on tickets by INR400
on all domestic sectors effective immediately, The Times of India
reports.  The increase in fuel surcharge comes following an over
12 percent increase in aviation turbine fuel (ATF) prices by
state-run oil firms on June 15, the report says.

The Times, citing Jet Airways spokesperson, relates the increase
was necessitated by a sharp hike in aviation turbine fuel (ATF)
prices by 33 percent since March this year.

The spokesperson, as cited by the Times, said that the fuel
surcharge hike would be applicable on all flights of Jet Airways,
Jet Airways Konnect and Jet Lite.

Jet Airways posted a consolidated net loss of INR9614.10 million
for the year ended March 31, 2009, compared with consolidated net
loss of INR6538.70 million for the year ended March 31, 2008.
Consolidated total income increased from INR109907.20 million for
the year ended March 31, 2008 to INR134488.60 million for the year
ended March 31, 2009.

                        About Jet Airways

Jet Airways (India) Ltd (BOM:532617) -- http://www.jetairways.com/
-- is engaged in providing air transportation business.  The
geographic segments of the company are domestic (air
transportation within India) and international (air transportation
outside India).  The company has a frequent flyer programme named
Jet Privilege wherein the passengers who uses the services of the
airline become services of the airline become members of Jet
Privilege and accumulates miles to their credit.  The company's
subsidiaries include Jet Lite (India) Limited, Jetair Private
Limited, Jet Airways LLC, Trans Continental e Services Private
Limited, Jet Enterprises Private Limited, Jet Airways of India
Inc., India Jetairways Pty Limited and Jet Airways Europe Services
N.V.  On April 20, 2007, the company acquired Sahara Airlines
Limited.


SARGAM METALS: CRISIL Rates INR137.5 Million Cash Credit at 'B-'
----------------------------------------------------------------
CRISIL has assigned its ratings of 'B-/Negative/P4' to the bank
facilities of Sargam Metals Pvt Ltd (SMPL).

   INR137.5 Million Cash Credit *         B-/Negative (Assigned)
   INR55.0 Million Letter of Credit **    P4 (Assigned)

   * upto INR10 million interchangeable with Letter of Credit
   * upto INR 5 million interchangeable with Bank guarantee
   ** upto INR55 million interchangeable with Bank guarantee

The ratings reflect SMPL's weak financial risk profile and
operating profitability.  These weaknesses are mitigated by the
company's long-standing relationships with players in the
automobile segment in Chennai and Coimbatore.

For arriving at the ratings, CRISIL has combined the business and
financial risk profiles of SMPL with those of SMPL's associate -
Sargam Diecastings Pvt Ltd - and subsidiaries Sargam Laboratory
Pvt Ltd, and Cubroban Systems Singapore Pvt Ltd, in which SMPL has
stakes of 40 per cent, 99.5 per cent, and 60 per cent,
respectively.  This is because SMPL and its subsidiaries have
business synergies and inter-company cash flows.

Outlook: Negative

CRISIL believes that SMPL's financial risk profile will remain
under stress, and its liquidity position will remain poor, due to
high gearing and weak debt protection measures.  The rating may be
downgraded in case of further deterioration in SMPL's financial
risk profile owing to decline in operating profitability, leading
to further liquidity pressures and delays in meeting the interest
and principal repayment obligations.  Conversely, the outlook may
be revised to 'Stable' in case of material improvement in the
SMPL's profitability, along with equity infusion, leading to
improvement in the company's liquidity situation and financial
risk profile.

                      About Sargam Metals

SMPL was established as a partnership firm in 1968 by Mr. R P
Sarathy, and incorporated as a private limited company in 1970.
SMPL primarily supplies aluminium alloys in ingot form to various
automobile players in Chennai and Coimbatore.  In the 1990s, the
company diversified into laboratory testing services and also
started supplying cathodic protection metal alloys to ship-
building companies.  In 2003, SMPL also forward integrated into
aluminium die casting by associating with Srivatsav Die Casting.
For 2007-08 (refers to financial year, April 1 to March 31), SMPL
reported a profit after tax (PAT) of INR6 million on net sales of
INR961 million, as against a PAT of INR9 million on net sales of
INR851 million for the previous year. For 2008-09, the company has
provisionally reported net sales of INR913 million.


SHREE RAJESHWARANAND: CARE Rates Long-Term Bank Loans at 'CARE BB'
------------------------------------------------------------------
CARE has assigned a 'CARE BB' (double B) rating to the INR 18.25
crore long-term bank facilities of Shree Rajeshwaranand Paper
Mills Ltd. (SRPML).  Facilities with this rating are considered to
offer inadequate safety for timely servicing of debt obligations.
Such facilities carry high credit risk.

The rating takes into account SRPML's established operations in
newsprint manufacturing industry with reputed clientele providing
repeat business.  The rating is, however, constrained by its
relatively small size of operations in cyclical and working
capital intensive industry marked by low entry barriers and high
bargaining power of customers.  The rating is further constrained
by its relatively weak financial profile characterized by low
profitability, high overall gearing and stressed liquidity
position.  Company's ability to improve its financial risk profile
is the key rating sensitivity.

                    About Shree Rajeshwaranand

Established in 1995, the company's operations are looked after by
Mr. Prakash Vora, who took over the company in August 2006.  The
company is engaged in manufacturing of newsprint having its waste
paper based plant located at Bharuch district in Gujarat with an
installed capacity of 21,000 mtpa (metric tones per annum).  SRPML
is in the process of increasing its manufacturing capacity to
31,500 mtpa, which is likely to be operational from Q1FY10.

During FY08 the company registered a total income of INR38.11
crore with a PAT of INR0.32 crore as against total income
registered in FY07 of INR41.35 crore with a PAT of INR0.67 crore.
Long term debt equity and overall gearing ratio stood at 0.35
times and 2.14 times respectively as on March 31, 2008. Interest
coverage remained low at 1.29 times in FY08.

Overall growth of the company is expected to be driven by
initiatives taken by the print media industry to increase
readership across the country supported by the Government's
literacy promotion schemes.  Going forward, prospects of the
company are expected to be driven by its ability to diversify into
different grades of paper and position itself as a preferred
newsprint manufacturer and increasing its market share in a
competitive industry marked by low entry barriers.


SRC UDYOG: CRISIL Puts 'B+' Rating on INR180MM Cash Credit Limits
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of SRC Udyog Ltd (SRC).

   INR180 Million Cash Credit Limits   B+/Stable(Assigned)
   INR50 Million Bank Guarantee        P4(Assigned)

The ratings reflect SRC's weak financial risk profile marked by
high gearing, feeble liquidity and weak debt protection measures,
and exposure to risks relating to intense competition in the
fragmented steel industry.  These weaknesses are, however,
partially offset by the benefits that SRC derives from its
established relationships with suppliers and customers.

Outlook: Stable

CRISIL believes that although SRC will continue to benefit from
its established relationships with suppliers and customers,
company's credit profile will remain constrained by weak liquidity
as indicated by high bank limit utilization.  The outlook may be
revised to 'Positive' if liquidity eases as a result of better
working capital management along with sustained improvement in
financial profile.  Conversely, lower-than-expected profitability
and/or deterioration in financial profile on account of higher
than expected debt funded capital expenditure are among factors
that can drive a revision in outlook to 'Negative'.

                       About SRC Udyog

SRC, incorporated in 2002 cuts bulk hot-rolled (HR) and chequered
coils into plates and sheets.  Its facility at Howrah (West
Bengal) has capacity to cut 24,000 tonnes of HR and chequered
coils per annum.  Recently, the company set up a furnace with a
capacity 11 mega volt amperes (mva), to produce ferro and silico
manganese.

SRC reported a profit after tax (PAT) of INR11.18 million on net
sales of INR1474.0 million for 2008-09 (refers to financial year,
April 1 to March 31), as against a PAT of INR8.16 million on net
sales of INR1039.94 million for 2007-08.


TATA MOTORS: Plans to Use Nano to Build Electric and Hybrid Cars
----------------------------------------------------------------
Tata Motors has plans to use its Nano platform to build electric
and hybrid cars and to produce more high-end models, Times of
India reports.

"The Nano is just not a car for Tata Motors, it is also a platform
to create more high-end models that will sell for higher prices
and yield better margins", the report quoted the company as saying
in a statement.

Nano, which is expected to create a new distinct category in the
auto industry, was compared in its introduction to that of the
Ford Model T, the car that completely revolutionized the
automobile industry, the report says.

                       About Tata Motors

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

Tata Motors has operations in Russia and the United Kingdom.

                          *     *     *

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

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

On June 4, 2009, Moody's Investors Service affirmed the B3
corporate family rating of Tata Motors Ltd.  The outlook on the
rating is changed to stable from negative.


TIKAULA SUGAR: CARE Assigns 'CARE BB' Rating on LT Bank Facilities
------------------------------------------------------------------
CARE has assigned a 'CARE BB' (Double B) rating to the
long-term bank facilities of Tikaula Sugar Mills Ltd. (TSML)
aggregating INR 82.03 crore.  This rating is applicable for
facilities having tenure of over one year.  Facilities with this
rating are considered to offer inadequate safety for timely
servicing of debt obligations and carry high credit risk.

The rating reflects the weak financial profile indicated by net
losses in the last two years, high gearing levels as a result of
debt-funded expansion and relatively small size of operations.
The ratings also factor the working-capital intensive
nature of operations of the company, volatility in earnings in
light of dependency on Government policies and cyclical nature of
the sugar industry.  The ratings however draw comfort from the
experienced promoter group, reputed market image and
diversification into distillation and co-generation of power.

Going forward, the company's ability to sustain revenue growth &
profitability and its ability to manage liquidity and working-
capital requirements effectively would remain the key rating
sensitivities.

                       About Tikaula Sugar

TSML was incorporated on December 6, 1994 as a public limited
company.  It is promoted by Shri Sarva Shakti Swarup and his
family members.  TSML's operations consist of manufacturing of
sugar, industrial alcohol, rectified spirit, ethanol, absolute
alcohol and power, which are managed under three divisions
viz. sugar (installed capacity of 5,000 Tonnes Cane Crushed per
Day (TCD) as on March 31, 2008), distillery (installed capacity of
25,000 Litres Per Day as on March 31, 2008) and power co-
generation (installed capacity of 16 MW as on March 31, 2008).
The turnover from sugar production forms 80% of the total turnover
of the company while that from distillery forms around 15% and the
rest is contributed by power division.

For FY08, TSML recorded net sales of INR 81 cr as compared to
INR 94 cr in FY07.  TSML suffered net loss of INR0.16 cr in FY07
and INR 1.28 cr in FY08 mainly on account of downturn in sugar
industry.


UNITECH LIMITED: Raises INR10 Billion From Asset Sales This Year
----------------------------------------------------------------
Unitech Ltd has raised more than INR10 billion from asset sales
this year and is not under pressure to raise further capital, The
Financial Express reports citing Unitech Managing Director Sanjay
Chandra.

The report relates that Unitech shareholders approved on Tuesday,
June 16, issue of up to 1 billion shares to investors and 227.5
million convertible warrants to one of its founder group firms.

The company last month sold shares for US$325 million to
institutional investors to tide over tight liquidity, the Express
says.

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 June 4,
2009, that Fitch Ratings downgraded Unitech Limited's National
Long-term rating to 'D' from 'B(ind)' to reflect the agency's
assessment that the company has undergone a Coercive Debt
Exchange, in line with Fitch's criteria on such restructurings.
Simultaneously, the agency has re-assigned the rating at 'B-
(ind)', reflecting the post-restructuring credit profile of
Unitech.  As a result of these actions, the Rating Watch Negative
on the National Long-term rating has been resolved.  The Outlook
on the rating is Negative.  The issuer's other ratings affected by
these actions are listed at the end of the RAC.

The agency also downgraded and then re-assigned the ratings of
its debt instruments,

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

  -- INR5,000 million and INR6,000 million short-term debt
     programmes - downgraded to 'F5(ind)' from 'F4(ind)' and
     re-assigned at 'F4(ind)';

  -- INR1,000 million short-term bank loan programme downgraded
     to 'F5(ind)' from 'F4(ind)' and re-assigned at 'F4(ind)';

  -- INR3,000 million non-fund based bank limits - downgraded to
     'F5(ind)' from 'F4(ind)' and re-assigned at 'F4(ind)'.

The RWN has been removed from all ratings.


VINEETAZ EXPORTS: ICRA Assigns "LBB+" Rating on INR80MM Term Loans
------------------------------------------------------------------
ICRA has assigned an LBB+ (pronounced L double B plus) rating,
indicating inadequate-credit-quality, to the INR80 million term
loans of Vineetaz Exports Private Limited (Vineetaz).  ICRA has
also assigned a short term rating of A4+ (pronounced A four plus),
indicating risk-prone-credit-quality, to the INR420 million short
term fund based limits and the INR50 million short term non-fund
based limits of Vineetaz.

The ratings take into account small size of Vineetaz" operations in
comparison to the overall garment exports from India, competition
from cost competitive Chinese exports, moderately high client
concentration risk, and foreign currency fluctuation risk though
partly mitigated by foreign exchange hedging.

The ratings are also constrained by stretched liquidity of the
company as reflected in high utilisation of working capital
limits.  However, the ratings favourably factor in long and
established presence of Vineetaz in garment accessories,
established relationship with large international customers and
long experience of the promoters in the business.

                      About Vineetaz Exports

Vineetaz Exports Private Limited (Vineetaz) was incorporated in
1991.  Vineetaz is a closely held company with 100% shareholding
held by Mr. Vinay Mawandia and his two brothers along with their
family members.  The company is mainly into exports of garment
accessories viz. scarves, stoles, shawls, pashmina, and wrap
around. Vineetaz has manufacturing units at Gurgaon.  These units
are involved in finishing of accessories (scarves, stoles, shawls
etc.), stitching ladies and kids garments along with quality
control measures.  During 2007-08, the company reported net sales
and profit after tax of INR 402.4 million and INR 13.6 million
respectively.


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


ARSENAL ASSET: Moody's Downgrades Ratings on Specified Bonds 1 & 2
------------------------------------------------------------------
Moody's Investors Service has downgraded the Class B and E Trust
certificates issued by Arsenal Trust as well as the Specified Loan
B and Specified Bonds 1 and 2 issued by Arsenal Asset TMK.  The
final maturity for both will take place in August 2013.

The individual rating actions are listed below.

  -- Class B, downgraded to A1 from Aa2; previously, Aa2 placed
     under review for possible downgrade on April 14, 2009

  -- Class E, downgraded to Ba2 from Baa2; previously, Baa2 placed
     under review for possible downgrade on April 14, 2009

  -- Specified Loan B, downgraded to B2 from Ba2; previously, Ba2
     placed under review for possible downgrade on April 14, 2009

  -- Specified Bond 1, downgraded to Caa1 from B2; previously, B2
     placed under review for possible downgrade on April 14, 2009

  -- Specified Bond 2, downgraded to Caa3 from Caa2; previously,
     Caa2 placed under review for possible downgrade on April 14,
     2009

Arsenal Trust and Arsenal Asset TMK, effected in August 2006,
represents a liquidating securitization of 65 commercial real
estate properties.  Nine of the properties have been disposed of
since the closing of the deal.

Moody's has updated its key surveillance assumptions for the
monitoring of Japanese CMBS ratings and on April 14, 2009, started
reviewing for possible downgrade 228 tranches in 50 Japanese CMBS
deals.

As a result, the number of tranches on review for possible
downgrade comes to 339, in 57 deals -- including deals that had
already been on review for possible downgrade.  This is one of the
transactions that had been placed under review because of the
update.

In light of Japan's current liquidity crisis, Moody's is concerned
that refinancing possibilities for existing CMBS borrowers are
declining precipitously, and that real estate prices will remain
stressed.

Moody's is thus applying higher stress to its recovery assumptions
for those loans that are more likely to default than in normal
market conditions.  To incorporate this influence into its CMBS
ratings, Moody's has classified all CMBS loans into three
categories -- plus special servicing loans -- according to the
likelihood of refinancing.

Moody's has also re-evaluated recovery assumptions for other loans
that are not characterized as having a high likelihood of default,
depending on a necessity based on collateral performance such as
rents and occupancy rates.

                         Category 1 Loans

                        0% of the loan pool

Moody's considers these loans as having a high likelihood of
refinancing based on (1) the sponsor's characteristics, (2) the
quality of the collateral, and (3) the amount of leverage.

                         Category 2 Loans

                        0% of the loan pool

Moody's considers these loans as having a high likelihood of
default, based on the sponsor's characteristics and the short
period until maturity.

                         Category 3 Loans

                       100% of the loan pool

These are loans that do not fit the criteria for Categories 1 and
2.

                     Special Servicing Loans

                       0% of the loan pool

Moody's received asset performance data and the revised asset
disposal plan. Moody's also interviewed the asset adviser
regarding its disposition plan policies.  Accordingly, Moody's
estimated recovery stress in light of these factors.

1) Moody's initial assumptions about collateral recovery need to
be reconsidered, as does its scenario, since actual disposition is
slower, and disposition prices are lower, than originally assumed.

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.


JAPAN AIRLINES: Inks Parts Repair Agreement With Pratt & Whitney
----------------------------------------------------------------
Japan Airlines Corp. has signed a three-year parts repair
agreement with Pratt & Whitney valued at more than US$75 million.
Under the agreement, Pratt & Whitney Commercial Engines & Global
Services will provide Japan Airlines part repair services for its
JT9D and PW4000 engines.  Pratt & Whitney is a United Technologies
Corp. company.

"We are pleased to select Pratt & Whitney for our part repair
needs," said Japan Airlines Managing Director Masaaki Haga.

Pratt & Whitney Global Service Partners is a total service
provider for engines made by Pratt & Whitney, International Aero
Engines, General Electric, Rolls-Royce and CFMI.  In addition to
engine overhaul and repair services, GSP provides customers with
improved engine performance and increased asset value through a
portfolio of services including line maintenance, engine
monitoring and diagnostics, environmentally friendly on-wing water
washes, leased engines, custom engine service programs, and new
and repaired parts.

Pratt & Whitney designs, manufactures and services aircraft
engines, space propulsion systems and industrial gas turbines.
United Technologies, based in Hartford, Conn., is a diversified
company providing high technology products and services to the
global aerospace and commercial building industries.

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

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

                          *     *     *

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

On May 22, 2009, the TCR-AP reported that Standard & Poor's
Ratings Services revised to negative from stable the outlook on
its 'B+' long-term corporate credit ratings on Japan Airlines
Corp. and wholly owned subsidiary Japan Airlines International Co.
Ltd.  The outlook revision reflects the increasing uncertainty
over the company's future cash flow and funding plans due to a
deteriorating business environment, which has caused JAL's
business performance to stagnate.  At the same time, Standard &
Poor's affirmed its 'B+' long-term corporate credit and senior
unsecured debt ratings on the companies.


JMAC4 TRUST: Moody's Changes Ratings on Various Trust Certificates
------------------------------------------------------------------
Moody's Investors Service has changed the ratings for the Class B
through E trust certificates issued by JMAC4 Trust. The final
maturity of the trust certificates will take place in February
2013.

The individual rating actions are listed below.

  -- Class B, downgraded to Aa2 from Aa1; previously, Aa1 placed
     under review for possible downgrade on April 14, 2009

  -- Class C, downgraded to Ba2 from Baa2; previously, Baa2 placed
     under review for possible downgrade on March 17, 2009

  -- Class D, downgraded to Caa2 from Ba2; previously, Ba2 placed
     under review for possible downgrade on March 17, 2009

  -- Class E, downgraded to Caa3 from B3; previously, B3 placed
     under review for possible downgrade on March 17, 2009

JMAC4 Trust, effected in March 2006, represents the securitization
of 16 non-recourse loans backed by real estate.  Twelve of the
non-recourse loans have been paid in full, and the transaction is
currently secured by four non-recourse loans backed by 11
properties and prepaid principal in the trustee's account.

Moody's has updated its key surveillance assumptions for the
monitoring of Japanese CMBS ratings and on April 14, 2009, started
reviewing for possible downgrade 228 tranches in 50 Japanese CMBS
deals.

As a result, the number of tranches on review for possible
downgrade comes to 339, in 57 deals -- including deals that had
already been on review for possible downgrade.  This is one of the
transactions that had been placed under review because of the
update.

In light of Japan's current liquidity crisis, Moody's is concerned
that refinancing possibilities for existing CMBS borrowers are
declining precipitously, and that real estate prices will remain
stressed.

Moody's is thus applying higher stress to its recovery assumptions
for those loans that are more likely to default than in normal
market conditions.  To incorporate this influence into its CMBS
ratings, Moody's has classified all CMBS loans into three
categories -- plus special servicing loans -- according to the
likelihood of refinancing.

Moody's has also re-evaluated its recovery assumptions for other
loans that are not characterized as having a high likelihood of
default, based on collateral performance such as rents and
occupancy rates.

                         Category 1 Loans

                        0% of the loan pool

Moody's considers these loans as having a high likelihood of
refinancing based on (1) the sponsor's characteristics, (2) the
quality of the collateral, and (3) the amount of leverage.

                         Category 2 Loans

                       37% of the loan pool

Moody's considers these loans as having a high likelihood of
default, based on the sponsor's characteristics and the short
period until maturity.

                         Category 3 Loans

                       23% of the loan pool

These are loans that do not fit the criteria for Categories 1 and
2.

                     Special Servicing Loans

                       40% of the loan pool

Moody's received relevant information such as PM reports and rent
rolls. Moody's also interviewed the Special Servicer regarding its
asset business plan policies.  Accordingly, Moody's estimated
recovery stress in the range of 15% to 21% and 19% for the
weighted average (excluding the specially serviced loans), in
light of these factors.

1) Recovery of a specially serviced loan will likely be hampered
   by the stressed environment for the commercial real estate
   market.

2) 37% of the loan pool will mature in 2010.  Loans that will need
   to be refinanced in a stressed market account for a higher
   percentage of the loan pool.

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.


L-JAC THREE: Moody's Changes Ratings on Various Trust Certificates
------------------------------------------------------------------
Moody's Investors Service has changed the ratings for the Class A
through I and X-2 trust certificates issued by L-JAC Three Trust.
The final maturity of the trust certificates will take place in
April 2013.

The individual rating actions are listed below.

  -- Class A, Downgraded to Aa1 from Aaa; previously, Aaa Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class B, Downgraded to A1 from Aa2; previously, Aa2 Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class C, Downgraded to Baa2 from A2; previously, A2 Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class D-1, Downgraded to Ba2 from Baa2; previously, Baa2
     Placed Under Review for Possible Downgrade on April 14, 2009

  -- Class E-1, Downgraded to Ba3 from Baa3; previously, Baa3
     Placed Under Review for Possible Downgrade on April 14, 2009

  -- Class F-1, Downgraded to B1 from Ba1; previously, Ba1 Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class G-1, Downgraded to B2 from Ba2; previously, Ba2 Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class H-1, Downgraded to B3 from Ba3; previously, Ba3 Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class I, Downgraded to B3 from B1; previously, B1 Placed
     Under Review for Possible Downgrade on April 14, 2009

  -- Class X-2, Downgraded to Aa1 from Aaa; previously, Aaa Placed
     Under Review for Possible Downgrade on April 14, 2009

L-JAC Three Trust, effected in October 2006, represents the
securitization of non-recourse loans to seven borrowers.  The
transaction is currently secured by three non- recourse loans.

Moody's has updated its key surveillance assumptions for the
monitoring of Japanese CMBS ratings and on April 14, 2009, started
reviewing for possible downgrade 228 tranches in 50 Japanese CMBS
deals.

As a result, the number of tranches on review for possible
downgrade comes to 339, in 57 deals -- including deals that had
already been on review for possible downgrade.  This is one of the
transactions that had been placed under review because of the
update.

In light of Japan's current liquidity crisis, Moody's is concerned
that refinancing possibilities for existing CMBS borrowers are
declining precipitously, and that real estate prices will remain
stressed.

Moody's is thus applying higher stress to its recovery assumptions
for those loans that are more likely to default than in normal
market conditions.  To incorporate this influence into its CMBS
ratings, Moody's has classified all CMBS loans into three
categories -- plus special servicing loans -- according to the
likelihood of refinancing.

Moody's has also re-evaluated recovery assumptions for other loans
that are not characterized as having a high likelihood of default,
depending on a necessity based on collateral performance such as
rents and occupancy rates.

                         Category 1 Loans

                       0% of the loan pool

Moody's considers these loans as having a high likelihood of
refinancing based on (1) the sponsor's characteristics, (2) the
quality of the collateral, and (3) the amount of leverage.

                         Category 2 Loans

                       44% of the loan pool

Moody's considers these loans as having a high likelihood of
default, based on the sponsor's characteristics and the short
period until maturity.

                         Category 3 Loans

                       56% of the loan pool

These are loans that do not fit the criteria for Categories 1 and
2.

                     Special Servicing Loans

                       0% of the loan pool

Moody's received relevant information such as PM reports and rent
rolls. Accordingly, Moody's estimated recovery stress in the range
of 10% to 18% and 15% for the weighted average (excluding the
specially serviced loans), in light of these factors.

1) The rents and cash flows of the main tenants in tenant-
concentrated properties are likely to decline.

2) Given stressed environment for the commercial real estate
market, cash flow volatility is likely to make these properties
less attractive to potential buyers.

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.


METALDYNE CORP: Signs US$100MM Deal to Sell Powertrain Biz to RHJ
-----------------------------------------------------------------
Metaldyne Corporation has signed an agreement to sell certain
powertrain and other operating assets and the stock of certain of
its foreign subsidiaries as going concerns to RHJ International
under a court-supervised sale process pursuant to Section 363 of
the U.S. Bankruptcy Code.  The sale is subject to bankruptcy
approval procedures and customary closing conditions for a
transaction of this nature, including RHJI's finalization of due
diligence which will occur by July 2, 2009.

Under the agreement, a newly formed subsidiary of RHJI will
purchase certain North American and all of the European assets of
Metaldyne's Sintered Products, Vibration Control Products and
Powertrain Products business units, as well the European Forging
Products business unit and certain Asian operations.  The
transaction is valued at approximately US$100 million including up
to US$25 million in cash, a new US$50 million secured note and the
exchange of an existing EUR15 million demand note issued by
Metaldyne GmbH for a term loan to RHJI's newly formed acquisition
subsidiary.  In addition, RHJI has agreed to inject additional
cash into the newly formed entity to fund future working capital
needs.

As part of its May 27 Chapter 11 filing, Metaldyne entered into a
letter of intent with RHJI to sell certain portions of Metaldyne's
assets as ongoing concerns.

RHJI's other global automotive holdings include Asahi Tec
Corporation (Metaldyne's parent company), Honsel International
Technologies SA, Niles Co. Ltd., and U-Shin Ltd.

"RHJI is uniquely positioned given their global automotive
supplier holdings, commitment to the automotive industry, and
operating company expertise," said Thomas A. Amato, Metaldyne
chairman, president and CEO.  "We are pleased to bring this
transaction to the court for consideration."

"The Metaldyne operations being purchased have strong product
portfolios, advanced technologies and perform well operationally.
The new powertrain-focused company RHJI is creating will be a
solid supplier to the restructured global automotive industry,"
Mr. Amato said.

The company also secured additional funding from two original
equipment customers increased the availability of its debtor-in-
possession financing from US$18.50 million to US$19.85 million.
The DIP financing will be used to fund debtor operations as part
of the bankruptcy process.

                  About Metaldyne Corporation

Headquartered in Plymouth, Michigan, Metaldyne Corporation --
http://www.metaldyne.com/-- is a wholly owned subsidiary of Asahi
Tec, a Shizuoka, Japan-based chassis and powertrain component
supplier in the passenger car/light truck and medium/heavy truck
segments.  Asahi Tec is listed on the Tokyo Stock Exchange.
Metaldyne is a global designer and supplier of metal based
components, assemblies and modules for transportation related
powertrain and chassis applications including engine,
transmission/transfer case, wheel end, and suspension, axle and
driveline, and noise and vibration control products to the motor
vehicle industry.

On January 11, 2007, in connection with a plan of merger, Asahi
Tee Corporation in Japan acquired the shares of Metaldyne.  On the
same date, Asahi Tee contributed those shares to Metaldyne
Holdings, and Asahi Tee thereby became the indirect parent of
Metaldyne and its other units.  RHJ International S.A. of Belgium
now holds approximately 60.1% of the outstanding capital stock of
Asahi Tec.

The Company own 23 different properties, including 14 domestic
manufacturing facilities in six states, and more than 10
manufacturing facilities North America, Europe, South America and
Asia.

Metaldyne Corporation aka MascoTech, Inc., aka MascoTech Harbor,
Inc., Riverside Acquisition Corporation and Metaldyne Subsidiary
Inc. and its affiliates filed for Chapter 11 on May 27, 2009
(Bankr. S. D. NY Lead Case No. 09-13412).  The filing did not
include the company's non-U.S. entities or operations.  Richard H.
Engman, Esq., at Jones Day represents the Debtors in their
restructuring efforts.  Judy A. O'Neill, Esq., at Foley & Lardner
LLP serves as conflicts counsel; Lazard Freres & Co. LLC and
AlixPartners LLP as financial advisors; and BMC Group Inc. as
claims agent.  For the fiscal year ended March 29, 2009, the
company recorded annual revenues of approximately US$1.32 billion.
As of March 29, 2009, utilizing book values, the company had
assets of approximately US$977 million and liabilities of
US$927 million.


ORSO FUNDING: Moody's Changes Ratings on Various Trust Certs.
-------------------------------------------------------------
Moody's Investors Service has changed the ratings for the Class A
through F and X Trust Certificates issued by Orso Funding CMBS 5
Trust.  The final maturity of the trust certificates will take
place in February 2013.

The individual rating actions are:

  -- Class A, confirmed at Aaa; previously, Aaa placed under
     review for possible downgrade on April 14, 2009

  -- Class B, downgraded to Aa3 from Aa2; previously, Aa2 placed
     under review for possible downgrade on April 14, 2009

  -- Class C, downgraded to Baa1 from A2; previously, A2 placed
     under review for possible downgrade on April 14, 2009

  -- Class D, downgraded to Ba2 from Baa2; previously, Baa2 placed
     under review for possible downgrade on December 24, 2008

  -- Class E, downgraded to Caa1 from B2; previously, downgraded
     to B2 from Ba2 and placed under review for possible downgrade
     on December 24, 2008

  -- Class F, downgraded to Caa2 from B3; previously, downgraded
     to B3 from Ba3 and placed under review for possible downgrade
     on December 24, 2008

  -- Class X, confirmed at Aaa; previously, Aaa placed under
     review for possible downgrade on April 14, 2009

Orso Funding CMBS 5 Trust, effected in August 2006, represents the
securitization of seven non-recourse loans.  The transaction is
currently secured by five non-recourse loans.

Moody's has updated its key surveillance assumptions for the
monitoring of Japanese CMBS ratings and on April 14, 2009, started
reviewing for possible downgrade 228 tranches in 50 Japanese CMBS
deals.

As a result, the number of tranches on review for possible
downgrade comes to 339, in 57 deals -- including deals that had
already been on review for possible downgrade.  This is one of the
transactions that had been placed under review because of the
update.

In light of Japan's current liquidity crisis, Moody's is concerned
that refinancing possibilities for existing CMBS borrowers are
declining precipitously, and that real estate prices will remain
stressed.

Moody's is thus applying higher stress to its recovery assumptions
for those loans that are more likely to default than in normal
market conditions.  To incorporate this influence into its CMBS
ratings, Moody's has classified all CMBS loans into three
categories -- plus special servicing loans -- according to the
likelihood of refinancing.

Moody's has also re-evaluated recovery assumptions for other loans
that are not characterized as having a high likelihood of default,
depending on a necessity based on collateral performance such as
rents and occupancy rates.

                         Category 1 Loans

                       0% of the loan pool

Moody's considers these loans as having a high likelihood of
refinancing based on (1) the sponsor's characteristics, (2) the
quality of the collateral, and (3) the amount of leverage.

                        Category 2 Loans

                       0% of the loan pool

Moody's considers these loans as having a high likelihood of
default, based on the sponsor's characteristics and the short
period until maturity.

                        Category 3 Loans

                      71% of the loan pool

These are loans that do not fit the criteria for Categories 1 and
2.

                     Special Servicing Loans

                      29% of the loan pool

Moody's received relevant information such as PM reports and rent
rolls.  Accordingly, Moody's estimated recovery stress in the
range of 10% to 13% and 12% for the weighted average (excluding
the specially serviced loans), in light of these factors.

1) Two loans are now classified as "Specially Serviced Loans."
   Given the location and type of properties, recovery of these
   loans will likely be hampered by the stressed environment for
   the commercial real estate market.

2) With regard to the other loans, given the stressed environment
   for the commercial real estate market, the properties are
   likely to be less attractive to potential buyers in terms of
   type and location.

Moody's Investors Service is a publisher of rating opinions and
research.  It is not involved in the offering or sale of any
securities, nor is it acting on behalf of the offering party.


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


HYUNDAI MOTOR: Worker's Union Leader Quits Post
-----------------------------------------------
Hyundai Motor Co.'s union leader Yoon Hae-mo has resigned from his
post, Choi He-suk at The Korea Herald reports.

The report relates that union spokesman Chang Kyu-ho said that
Yoon's resignation was formalized at a meeting of union leaders.

Chang, however, said Yoon will hold the post for the time being
until important issues are resolved, the report relates.

According to the report, the important issues, among others,
include whether wage negotiations will be headed by the leader of
the Metal Workers Union, to which the Hyundai union belongs, or an
emergency leadership panel.

However, the report notes that observers said the carmaker's union
is likely to opt for electing new leaders to conclude the
negotiations.

Headquartered in Seoul, South Korea, Hyundai Motor Company
(SEO:005380) -- http://www.hyundai-motor.com/-- is an automobile
manufacturer.  The company markets the Genesis, Genesis Coupe,
Azera, Sonata, Elantra, Accent, Getz, i30, i30cw, i20 and i10
passenger cars; the Veracruz, Santa Fe, Tucson, Matrix, H-1
recreational vehicles, and commercial vehicles, which include
medium and heavy duty trucks, van trucks, tank lorries, bulk
cement carriers, bulk cement tractors and others.

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
Jan. 16, 2009, Fitch Ratings downgraded Hyundai Motor's long-term
foreign currency Issuer Default Ratings to 'BB+' from 'BBB-' (BBB
minus), and the Short-term ratings to 'B' from 'F3'.  The rating
agency revised the Outlook to Negative from Stable.


* SOUTH KOREA: Insurance Firms' Default Ratio Up 3.82% in March
---------------------------------------------------------------
The Korea Times reported that the loan delinquency ratio of
insurance companies in South Korea continued to rise in March.

The report, citing the Financial Supervisory Service (FSS), says
the delinquency ratio of loans given by insurance companies
recorded 3.82 percent as of March, up 0.09 percentage points from
a year earlier.

The ratio continued the year-on-year rise, but it has been slowing
since peaking at 3.94 percent in January and rising 3.9 percent,
the Times says.

According to the report, the increasing delinquency of corporate
loans, which stood at 5.27 percent in March from 4.87 percent a
year ago, was the main factor behind the rise.


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

AIR NEW ZEALAND: Number of Passengers Down 9.9% in May
------------------------------------------------------
Air New Zealand said it carried 850,000 passengers in May, down
9.9 percent on the same month last year.

The airline's capacity was reduced by 13.9 percent on the same
month last year and the Group's passenger load factor increased by
2.2 percentage points, Air New Zealand said in its monthly
investor update released Wednesday, June 17, 2009 .

The airline said short haul passenger numbers were down 9.3
percent compared to May last year.  However, Air New Zealand was
able to increase the passenger load factor by 3.4 percentage
points through proactive capacity management.  The Domestic
airline's load factor increased by 0.5 of a percentage point and
the Tasman / Pacific load factor increased by 5.0 percentage
points.

Capacity management also increased load factors in the long haul
airline.  Passenger numbers decreased by 13.7 percent and capacity
was reduced by 14.6 percent on the same month last year.

On North America/UK routes passenger numbers fell by 10.0 percent
and on Asia/Japan/UK routes by 18.5 percent.

Group-wide yields for the year-to-date were up 7.1 percent on the
comparable period last financial year.  Short haul and long haul
yields were up by 1.5 percent and 13.2 percent respectively.
Removing the impact of foreign exchange, Group-wide yields were up
1.7 percent.

                     About Air New Zealand

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

                        *     *     *

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


BRIDGECORP: Court to Align Charges Against Former Directors
-----------------------------------------------------------
Lucy Craymer at The National Business Review reports that former
Bridgecorp directors were back in court Tuesday as moves were to
be made to realign the charges they face.

According to the report, a Securities Commission spokesman said
the charges against Rod Petricevic and Rob Roest were to be
aligned with the charges against the other directors.

Messrs. Petricevic and Roest, Bridgecorp's chairman Bruce Davidson
and non-executive directors Gary Urwin and Peter Steigrad, now
face essentially the same Securities Act charges, the report
notes.

The report says that the former directors were remanded for a
callover on July 14 at the Auckland District Court.

As reported in the Troubled Company Reporter-Asia Pacific on
Dec. 29, 2008, the Securities Commission laid criminal charges
against the chairman of Bridgecorp Bruce Davidson and non-
executive directors Gary Urwin and Peter Steigrad.

Criminal charges were also laid by the Registrar of Companies
earlier last year against the executive directors, Rodney
Petricevic and Robert Roest.  These new charges follow further
investigations by the Commission.  The Commission has also issued
civil proceedings against all five directors.

Commission Chairman Jane Diplock said in a press release that all
the directors are responsible for Bridgecorp's offer documents.
The Commission believed that the offer documents misled investors
by misrepresenting the overall financial position of those
companies and the risk of investing in them.

                        About Bridgecorp

New Zealand-based Bridgecorp Ltd was placed in receivership on
July 2, 2007, after failing to pay principal due to debenture
holders.  John Waller and Colin McCloy, partners at
PricewaterhouseCoopers, were appointed as receivers.  The
company owes around 1,800 debenture holders, which liquidators
estimate hold approximately NZ$500 million.


PARKSIDE DEVELOPMENTS: Court Places Unit in Liquidation
-------------------------------------------------------
The High Court in Christchurch has placed Parkside Construction, a
company set up by bankrupt property developer Andrew O'Neil, into
liquidation, Tina Law at The Press reports.

The report relates that the collapse of Parkside Construction
leaves in doubt an agreement made with creditors of Mr. O'Neil's
Parkside Developments.

According to the Press, Parkside Construction co-liquidator Rhys
Cain, of PricewaterhouseCoopers, said it was too early to say how
much money was owed to creditors or what the financial outcome
would be.

The Press says that Mr. Cain was not sure what impact the
liquidation would have on the deed arrangement, but Parkside
Developments was a secured creditor, so it would benefit from the
proceeds of any assets.

Citing a previous report from The Press, the Troubled Company
Reporter-Asia Pacific on July 21, 2008, said that Parkside
Developments appointed Christchurch accountant Andrew Oorschoot as
administrator of the company, after a creditor filed proceedings
in the High Court.

According to stuff.co.nz, Parkside Developments nutted out an
agreement on a deed of company arrangement with creditors for
partial repayment over two years.  The income Parkside
Construction generates will be used to repay the creditors of
Parkside Developments, stuff.co.nz said.

Parkside Developments is a real estate development company based
in Christchurch, New Zealand.  It is involved in two
controversial developments involving historic homes --  the 99-
year-old Royden homestead in Royds Street in Fendalton and the
Danmark homestead overlooking Hagley Park.


SAPPHIRE II: S&P Raises Ratings on All Rated Classes of Notes
-------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on all rated
subordinated classes of notes issued by Sapphire II NZ Series
2005-1 and Sapphire VI Series 2004-2.  At the same time, Standard
& Poor's affirmed the 'AAA' ratings on the class A notes of both
transactions.  Each transaction is backed by a portfolio of fully
amortizing residential loans that are originated and serviced by
Bluestone Mortgages.

The rating upgrades reflect the significant build-up in credit
support to rated notes as the portfolio amortizes and excess
spread covers prior losses.  In S&P's opinion, due to this
accumulated credit support, the transactions are able to withstand
further deterioration in portfolio performance before impacting
any rated notes.  Furthermore, in both transactions, the
expiration of the interest-only and MER notes, which are entitled
to receive all deferred establishment fees, has meant excess
spread that was previously diverted to payments on these notes is
now available to cover future losses.

While credit support available to senior notes as a portion of the
portfolio balance is significant, S&P has factored into its
analysis significant further deterioration in portfolio
performance that could arise from negative economic conditions and
financially stressed borrowers remaining in the portfolio due to
refinancing difficulty.  Furthermore, S&P expects the arrears
levels to be volatile and future losses to be lumpy as the loan
pools reduce.

                          Ratings Raised

  Name                           Class   Rating to   Rating from
  ----                           -----   ---------   -----------
  Sapphire II NZ Series 2005-1   M       AA          A
  Sapphire II NZ Series 2005-1   BA      A           BBB
  Sapphire II NZ Series 2005-1   BZ      BBB         BB
  Sapphire II NZ Series 2005-1   CA      BB          B
  Sapphire VI Series 2004-2      M       AA          A
  Sapphire VI Series 2004-2      BA      A           BBB
  Sapphire VI Series 2004-2      BZ      BBB         BB

                         Ratings Affirmed

          Name                           Class   Rating
          ----                           -----   ------
          Sapphire II NZ Series 2005-1   A       AAA
          Sapphire VI Series 2004-2      AA      AAA
          Sapphire VI Series 2004-2      AM      AAA
          Sapphire VI Series 2004-2      AZ      AAA


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

CARCRAFT INTERNATIONAL: Pays First and Final Dividend
-----------------------------------------------------
Carcraft International Pte Ltd. paid the first and final dividend
on June 4, 2009.

The company paid 4.5383% to all received claims.

The company's liquidator is:

          The Official Receiver
          The URA Centre (East Wing)
          45 Maxwell Road #06-11
          Singapore 069118


HON KHENG: Court to Hear Wind-Up Petition on June 26
----------------------------------------------------
A petition to have Hon Kheng Hardware Pte Ltd's operations wound
up will be heard before the High Court of Singapore on June 26,
2009, at 10:00 a.m.

United Overseas Bank Limited filed the petition against the
company on June 1, 2009.

The Petitioner's solicitors are:

          Rajah & Tann LLP
          4 Battery Road, #26-01
          Bank of China Building
          Singapore 049908


SOUTHERN STAR: Court Enters Wind-Up Order
-----------------------------------------
On June 5, 2009, the High Court of Singapore entered an order to
have Southern Star Trading Pte Ltd's operations wound up.

Abterra Ltd filed the petition against the company.

The company's liquidator is:

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


VIRTUAL INNOVATIONS: Court Enters Wind-Up Order
-----------------------------------------------
On June 5, 2009, the High Court of Singapore entered an order to
have Virtual Innovations Private Limited's operations wound up.

Panju Zulfikarali filed the petition against the company.

The company's liquidator is:

          The Official Receiver
          45 Maxwell Road #06-11
          The URA Centre (East Wing)
          Singapore 069118


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


* ADB Okays US$3.4-Bln Funds for Developing Countries in Crisis
---------------------------------------------------------------
The Asian Development Bank (ADB) has approved the allocation of
US$3.4 billion in additional funds to help developing member
countries (DMCs) respond to the global economic crisis.

ADB said in a statement that it has established a US$3 billion
Countercyclical Support Facility (CSF) that will provide short-
term, fast-disbursing loans.  It will support DMCs aiming to ramp
up fiscal spending to counter the crisis, but who lack the
financial means to do so amid tight global credit conditions and a
sharp increase in funding costs.  The CSF, which will be available
to DMCs who qualify for loans from ADB's Ordinary Capital
Resources (OCR), will be capped at US$500 million per country.

ADB will also make available a further US$400 million to the Asian
Development Fund (ADF).  This will benefit countries with no
access to OCR.  ADF resources are provided in the form of
concessional loans and grants to low-income DMCs with limited debt
repayment capacity.

The additional ADF resources will be used to provide funds to
finance key development investments in low-income countries that
are among the most fiscally constrained in responding to the
crisis.

Conditions for accessing the CSF include a significant slowdown in
growth, exports and remittances; fiscal constraints; and
difficulty in sourcing finance from international capital markets
on favorable terms.  DMCs will also need to put in place a
specific countercyclical development program, to be supported by
CSF, which includes investment in public infrastructure, or a
social safety net scheme targeting the poor and vulnerable.

Loans under the new facility will have a five-year tenor, with a
three-year grace period, and will cost around 200 basis points
over ADB's financing cost, pricing that is lower than its special
program loans facility set up to help the region in the wake of
the 1997-1998 Asian financial crisis.

ADB plans to increase its lending assistance by more than US$10
billion in 2009-2010, bringing total ADB assistance for these two
years to about US$32 billion.  This compares with about US$22
billion in 2007-2008.  Of the proposed US$10 billion increase in
lending, US$1 billion is committed to support trade finance, US$3
billion to the CSF and US$6 billion to extending loans such as
those for infrastructure investment.  ADB will also expand its
crisis-related support through grants for policy analysis and
capacity building.


                         *********

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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