TCRAP_Public/090729.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

             Wednesday, July 29, 2009, Vol. 12, No. 148

                                  Headlines

A U S T R A L I A

ABC LEARNING: Founder Hands Over Passport to ASIC Amid Inquiry
DIORO EXPLORATION: Talks with Northgate Terminated
STORM FINANCIAL: Founders Face ASIC-Funded Public Investigation
* AUSTRALIA: Corporations Face AU$200-Bln Debt Refinancing


B A H R A I N

GULF INTERNATIONAL: Fitch Affirms Individual Rating at 'C/D'


C H I N A

VENETIAN MACAU: Bank Debt Trades at 9% Off in Secondary Market


H O N G  K O N G

AMA CONSULTANTS: Commences Wind-Up Proceedings
BESTFIT TRANSPORTATION: Creditors' Meeting Set for August 3
ETS TESTING: Members' and Creditors' Meeting Set for August 24
GOODFIELD LIMITED: Creditors' Proofs of Debt Due on August 18
GOODVALE LIMITED: Members to Receive Wind-Up Report on August 25

GRAPHIC PACKAGING: Members' Final Meeting Set for August 24
HELPFUL OFFSET: Appoints Chan Kin Hang as Liquidator
PACIFIC HARVEST: Members' Final Meeting Set for August 26
RENESAS SYSTEM: Placed Under Voluntary Wind-Up
YOGA PLUS: Members & Creditors' Annual Meeting Set for August 7


I N D I A

AGGARWAL TRADING: Low Net Worth Cues CRISIL to Assign 'B' Rating
AIR INDIA: Seeks INR10,000cr Government Bailout
ASIAN TEA: CRISIL Rates INR20 Million Cash Credit Limits at 'BB+'
BHAVYA CEMENTS: ICRA Assigns 'LBB+' Rating on INR2.06BB Term Loans
GOEL JEWELLERY: ICRA Rates INR120MM Fund Based Limits at 'LBB+'

INDIAN EXTRACTIONS: CARE Rates INR24.44cr LT Bank Loan at 'BB'
INDUSIND BANK: Fitch Gives Positive Outlook; Affirms 'D' Rating
JET AIRWAYS: To Merge Jet Konnect and JetLite Carriers
JET AIRWAYS: To Retire All Expat Pilots by End of Fiscal Year
KOTAK MAHINDRA: Fitch Affirms Individual Rating at 'C/D'

MAYTAS INFRA: Files Writ Petition Over Cancelled Metro Project
SOUTH INDIAN: Fitch Assigns Individual Rating at 'D'
TATA MOTORS: Q1 Stand-Alone Profit Up 57.5% to INR513.76cr
TATA MOTORS: Repays US$150 Million of Bridge Loan Facility


I N D O N E S I A

PT GAJAH: Moody's Assigns 'Caa1' Rating on US$435 Mil. Bonds


J A P A N

METALDYNE CORP: Court OKs Hephaestus, Revstone as Stalking Horse
MITSHUBISHI MOTORS: JCR Withdraws 'BB' Senior Debts Rating


K O R E A

HYUNDAI MOTOR: Second Qtr Net Income Widens to KRW811.8 Billion
MAGNACHIP SEMICONDUCTOR: Panel Taps Lowenstein Sandler as Counsel
MAGNACHIP SEMICONDUCTOR: Panel Taps MFC as Financial Advisors


N E W  Z E A L A N D

PUREDEPTH INC: Realigns R&D Operations in Auckland, New Zealand
* NEW ZEALAND: Exports Fell 5.4% in June 2009 Quarter


P H I L I P P I N E S

BAYAN TELECOM: SEC Approves Equity Restructuring Plan


S I N G A P O R E

ASIAPAC (I & E): Members' Final Meeting Set for August 20
BLACK ICE: Court to Hear Wind-Up Petition on August 7
EZY DIAL: Creditors' Proofs of Debt Due on August 17
HAACH PACIFIC: Creditors' Proofs of Debt Due on September 4
HOCEN INTERNATIONAL: Pays First and Final Dividend


V I E T N A M

DOT VN: Louisa Huynh Names Communications and Biz Dev't Director


X X X X X X X X

LEAR CORP: Canada Units Obtain CCAA Stay Order
* Last Week's 3 Defaults Raise S&P Tally to 184
* Weakest Links Ease to 285 as Defaults Mount, S&P Article Says
* Upcoming Meetings, Conferences and Seminars


                         - - - - -


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


ABC LEARNING: Founder Hands Over Passport to ASIC Amid Inquiry
--------------------------------------------------------------
Natasha Bita at The Australian reports that ABC Learning Center
Ltd founder Eddy Groves has agreed to let the corporate watchdog
keep his passport for nearly a year.

The report says Mr. Groves made an undertaking to the Federal
Court in Sydney to let the Australian Securities and Investments
Commission (ASIC) retain his passport until June 30, 2010.  The
deal, however, lets Mr. Groves seek court approval to use his
passport by giving three days' notice, the Australian relates.

Mr. Groves, says the Australian, also agreed not to sell any of
his assets before then.

According to the report, Justice Kevin Lindgren dismissed ASIC's
application to seize Mr. Groves' passport and freeze his assets,
on the grounds that Mr. Groves had volunteered to do so.

ASIC is investigating the circumstances around the collapse of
ABC, the report says.

Based in Australia, ABC Learning Centres Limited (ASX: ABS) --
http://www.childcare.com.au/-- provides childcare services and
education in more than 1,200 centres in Australia, New Zealand,
the United States and the United Kingdom.  The Company's
subsidiaries include A.B.C. Developmental Learning Centres Pty
Ltd, A.B.C. Early Childhood Training College Pty Ltd, Premier
Early Learning Centres Pty Ltd, A.B.C. Developmental Learning
Centres (NZ) Ltd, A.B.C. New Ideas Pty Ltd, A.B.C. Land Holdings
(NZ) Limited and Child Care Centres Australia Ltd.  On January 26,
2007, it acquired La Petite Holdings Inc.  On February 2, 2007, it
acquired Forward Steps Holdings Ltd. On March 23, 2007, it
acquired Children's Gardens LLP.  In September 2007, the Company
purchased the Nursery division (Leapfrog Nurseries) from Nord
Anglia Education PLC.  In June 2008, the Company completed the
sale of a 60% stake in its United States business to Morgan
Stanley Private Equity.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
November 6, 2008, ABC Learning Centres Limited appointed Peter
Walker and Greg Moloney of Ferrier Hodgson as voluntary
administrators of the company and a number of its subsidiaries.

Subsequent to the appointment of administrators, the company's
banking syndicate appointed Chris Honey, Murray Smith and John
Cronin of McGrathNicol as receivers.


DIORO EXPLORATION: Talks with Northgate Terminated
--------------------------------------------------
Northgate Minerals Corporation confirmed Tuesday that it has
terminated discussions with Dioro Exploration NL regarding a
potential material transaction.

Northgate said it continues to evaluate strategic opportunities
and targeted acquisitions for growth that will generate value for
its shareholders.

Shares in Dioro Exploration have been placed in a trading halt
pending the release of an announcement by the gold miner about a
Canadian company's proposal to buy Dioro's 49% stake in the Frog's
Leg mine near Kalgoorlie, Western Australia, The Sydney Morning
Herald reports.

Dioro shares are expected to commence normal trading today,
July 29.

Meanwhile, the Herald relates that Avoca Resources Limited has
extended its unconditional takeover offer for Dioro Exploration NL
for one week.  The $68.5 million all-scrip offer was scheduled to
close on July 28 but will now close on August 4, unless further
extended, the Herald says.

As reported in the Troubled Company Reporter-Asia Pacific on
April 16, 2009, Dioro Exploration received notification of an
intention to make a takeover offer from Avoca.

Avoca's all-scrip offer -- one of its shares for every 2.82 Dioro
shares held -- values the target at about 53c a share, a 34.2 per
cent premium to Dioro's closing price on April 9.

As outlined in the Third Supplementary Target's Statement, on
July 6, 2009, Avoca served notice on Dioro that it was amending
the terms of its offer by increasing the consideration from 1
Avoca Share for every 2.82 Dioro Shares to 1 Avoca Share for every
2.4 Dioro Shares (Amended Offer).  Avoca has now also declared its
Amended Offer unconditional.

The original offer valued Dioro at about $49 million while the
revised bid was worth about $68.5 million, at the time of their
respective announcements, according to WA Today.

                          About Northgate

Based in Canada, Northgate Minerals Corporation --
http://www.northgateminerals.com/-- is a gold and copper producer
with mining operations, development projects and exploration
properties in Canada and Australia.  The company is forecasting
record gold production of over 390,000 ounces in 2009 and is
targeting growth through further acquisition opportunities in
stable mining jurisdictions around the world.  Northgate is listed
on the TSX under the symbol NGX and on the NYSE Amex under the
symbol NXG.

                            About Dioro

Based in Australia, Dioro Exploration NL (ASX:DIO) --
http://www.dioro.com.au/-- is a gold mining and exploration
company.  The company owns the South Kalgoorlie mining operation
(South Kal operation) located 32 kilometers south of Kalgoorlie,
which includes 220,000 ounces of open pitable reserves, 1.675
million ounces of measured and indicated resources, the 1.2
million tonne per annum Jubilee processing facility and
approximately 1,100 square kilometers of exploration acreage.  In
addition, Dioro owns a 49% interest in the Frog's Leg gold project
located 20 kilometers west of Kalgoorlie, which includes 605,000
ounces of underground gold reserves.  Its subsidiaries include HBJ
Minerals Pty Ltd, Hampton Gold Mining Areas Limited and Lodestar
Minerals Limited.

                          *     *     *

Dioro Exploration reported a net loss of AU$15.99 million for the
year ended Aug. 31, 2008 -- its third consecutive annual loss.  In
2007, the company posted a AU$1.32 million net loss.  Dioro also
reported a AU$0.64 million net loss for 2006.


STORM FINANCIAL: Founders Face ASIC-Funded Public Investigation
---------------------------------------------------------------
Storm Financial Group founders Emmanuel and Julie Cassimatis faced
a public grilling from the group's liquidators, the Herald Sun
reports.

According to the report, the couple said the company's "directors
and officers have nothing to fear from an open and transparent"
inquiry.

Citing the Cassimatises in an e-mailed statement, the report says
the couple hoped the Commonwealth Bank would be questioned over
its Storm dealings.

The Troubled Company Reporter-Asia Pacific on July 28, 2009, said
the Australian Securities and Investments Commission will fund a
public investigation into Storm Financial.

Liquidators Raj Khatri and Ivor Worrell, of Worrells Solvency and
Forensic Accountants, said ASIC had provided AU$450,000 for a
public examination of Storm, expected to start in early September.
The examination would be on "possible breaches of duty and
corporate offences".  At least 40 potential witnesses have been
identified.

Mr. Khatri said the Cassimatises would be "part and parcel" of the
proceedings, the Herald Sun relates.

                       About Storm Financial

Storm Financial Limited -- http://www.stormfinancial.com.au/--
operates in the Australian wealth management industry.  The
company manages over one trillion dollars in investment fund
assets for over nine million investors, distributed through
investment administration providers and financial adviser.  The
funds are invested through different investment products and
structures, including superannuation, nonsuperannuation managed
funds and life insurance products.  Non-superannuation managed
funds, which form the majority of Storm's products, total
approximately 26.5% of total investment fund assets in Australia,
as of June 30, 2007.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Jan. 14, 2009, Storm Financial appointed Worrells as voluntary
administrators after the Commonwealth Bank of Australia Ltd (CBA)
demanded debt repayment of around AU$20 million.

Storm later closed its business and fired all of its 115 staff.
The closure, the company's administrators said, was due to the
significant reduction in Storm's income resulting in trading
losses being incurred "at a rate which the company could no longer
absorb."

The TCR-AP reported on Jan. 22, 2009, that the Commonwealth Bank
of Australia, Storm's largest creditor, lodged a AU$27.09 million
debt claim at a first meeting of the company's creditors on
January 20.  Administrators Worrells Solvency & Forensic
Accountants said the group's remaining creditors are owed AU$51
million, plus a provision for dividends of AU$10 million.

On March 27, 2009, the Troubled Company Reporter-Asia Pacific
reported that the Australian Securities and Investments Commission
won its bid to liquidate Storm Financial Group after the Federal
Court ruled that the Company be wound up.  Federal court Justice
John Logan appointed Ivor Worrell and Raj Khatri of Worrells
Solvency and Forensic Accountants as liquidators for the Company.


* AUSTRALIA: Corporations Face AU$200-Bln Debt Refinancing
----------------------------------------------------------
The Australian reported that corporate Australia is sitting on a
$200 billion debt bomb that needs to be refinanced over the next
three years, with analysts warning some infrastructure and small
companies will collapse under the mountain of debt.

According to the report, available information suggests companies
face AU$38.5 billion of debt maturities next year, another AU$97.3
billion maturing in 2011 and AU$64.7 billion in 2012.

The report says that real debt figure could be much higher than
AU$200 billion, since data on corporate debt in Australia is based
on publicly accessible databases and does not include private
deals companies do with banks.

The Australian notes that various business sectors that face debt
refinancing, include:

  -- infrastructure, with more than AU$31 billion in refinancing
     due at a time when asset prices are crashing amid funding
     pressures, tight credit markets and carbon tax uncertainties;

  -- property, with more than AU$26 billion of near-term debt due,
     and finance companies have AU$17 billion of debt due in two
     years and another AU$3.4 billion maturing in 2012;

  -- construction, with a total of AU$15 billion of debt coming
     up in the next three years; and

  -- telecommunications,  mining, and healthcare, which together
     have more than AU$31 billion of debt sitting on their
     balance sheets requiring a debt rollover within three years.

The Australian states that some companies are turning to private
equity refinancing, hoping for an equity market recovery allowing
an IPO in 2010 -- and to avoid the fate of companies like Great
Southern and Timbercorp, which went into receivership recently.

The report says that some companies will require bank co-operation
to roll over debt facilities, and those with questionable business
models will struggle.  In addition, hundreds of small to mid-sized
companies, yet to raise equity but close to tripping loan
covenants, will also battle.

The less fortunate face forced mergers, asset sales, or a future
as a zombie company, where banks effectively take control of the
company and force an orderly sell-off, the Australian relates.


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B A H R A I N
=============


GULF INTERNATIONAL: Fitch Affirms Individual Rating at 'C/D'
------------------------------------------------------------
Fitch Ratings has affirmed Bahrain-based Gulf International Bank's
Long-term Issuer Default Rating at 'A' with Stable Outlook, Short-
term IDR at 'F1', Individual Rating at 'C/D', Support Rating at
'1' and Support Rating Floor at 'A'.  GIB's dated subordinated
debt obligations are affirmed at 'A-'.

GIB's IDRs and Support Rating reflect Fitch's view that there is
an extremely high probability that the bank would be supported by
its shareholders, as shown by its Q109 US$4.8bn asset sale and its
Q108 US$1 billion capital injection.  The Kingdom of Saudi Arabia
(rated 'AA-'/Stable) increased its stake to a combined 97.22% from
55% in Q109, held through the Public Investment Fund of the
Kingdom of Saudi Arabia and the Saudi Arabia Monetary Agency.  The
balance is held by the governments of Bahrain (0.44%), Kuwait
(0.73%), Oman (0.44%), Qatar (0.73%) and the UAE (0.44%).

The Individual Rating reflects the sale of most of GIB's
investment securities in Q109 and the positive impact this has had
on its risk profile, capitalization and liquidity.  It also
reflects Fitch's concerns about its reliance on wholesale funding,
modest profitability and weakened prospects in the more
challenging operating environment.

On March 27, 2009, GIB sold US$4.8 billion of investment
securities to certain of its shareholders.  Following this, it has
no net exposure to CDOs or ABS; GIB also sold all its non-GCC
financial institutions' subordinated debt and certain financial
institutions' senior debt investments.  Remaining investments
(end-Q109: US$2.1 billion) consist mainly of highly rated bank
senior debt and government debt.  With the removal of significant
uncertainty over potential further losses from investments, Fitch
considers GIB's market risk profile to be moderate.  In 2007 and
2008, GIB suffered large cumulative impairment charges (US$1.3
billion, mainly for SIVs and CDOs), fair-value losses on
investments, and trading losses mainly from its UK subsidiary;
proprietary trading has now ceased.

The US$4.8 billion sale was the main driver for a major decline in
risk-weighted assets to US$16 billion at end-Q109 from US$25
billion at end-2007, which strengthened capitalization to adequate
levels.  GIB's US$4.8 billion sale was for cash, improving
liquidity to adequate levels.  The bank aims to further de-
leverage by reducing its loan book after rapid growth in H108.
Impaired loans remain low at 0.1% of end-Q109 gross loans,
although Fitch expects these to rise in 2009.

Prospects for its main business of GCC project and corporate
finance have been weakened by the global recession.  Modest
underlying profitability was reflected in operating profits
(before impairment charges and trading losses) of US$283 million
in 2008.  GIB suffers from a reliance on wholesale funding, much
of which is short-term, but it also has substantial long-term
funding.  It should be able to meet its next major maturity of
US$850 milion in 2010 through internal resources.

Established in 1975, Bahrain-based GIB provides wholesale banking
services to Gulf corporate and institutional clients.  It has
branches in the UK, US, and Saudi Arabia.

In Fitch's rating criteria, a bank's standalone risk is reflected
in Fitch's Individual Ratings and the prospect of external support
is reflected in Fitch's Support Ratings.  Collectively these
ratings drive Fitch's Long- and Short-term IDRs.


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


VENETIAN MACAU: Bank Debt Trades at 9% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Venetian Macau US
Finance Co. LLC is a borrower traded in the secondary market at
90.40 cents-on-the-dollar during the week ended Friday, July 24,
2009, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal.  This represents an increase
of 2.83 percentage points from the previous week, The Journal
relates.  The loan matures on May 25, 2013.  The Company pays 225
basis points above LIBOR to borrow under the facility.  The bank
debt carries Moody's B3 rating and Standard & Poor's B- rating.
The debt is one of the biggest gainers and losers among widely-
quoted syndicated loans in secondary trading in the week ended
July 24, among the 145 loans with five or more bids.

Meanwhile, participations in a syndicated loan under which Las
Vegas Sands is a borrower traded in the secondary market at 73.88
cents-on-the-dollar during the week ended Friday, July 24, 2009,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal.  This represents an increase of 2.94
percentage points from the previous week, The Journal relates.
The loan matures on May 1, 2014.  The Company pays 175 basis
points above LIBOR to borrow under the facility.  The bank debt
carries Moody's B3 rating and Standard & Poor's B- rating.  The
debt is one of the biggest gainers and losers among widely-quoted
syndicated loans in secondary trading in the week ended July 24,
among the 145 loans with five or more bids.

Venetian Macau is a wholly-owned subsidiary of Las Vegas Sands.
VML owns the Sands Macau in the People's Republic of China Special
Administrative Region of Macau and is also developing additional
casino hotel resort properties in Macau.

Based in Las Vegas, Nevada, Las Vegas Sands Corp. (NYSE: LVS)
--http://www.lasvegassands.com/-- owns and operates The Venetian
Resort Hotel Casino, The Palazzo Resort Hotel Casino, and an expo
and convention center.  The company also owns and operates the
Sands Macao, the first Las Vegas-style casino in Macao, China.

On March 10, 2009, Moody's Investors Service lowered the Company's
Corporate Family Rating to B3 from B2 and assigned a negative
rating outlook.


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


AMA CONSULTANTS: Commences Wind-Up Proceedings
----------------------------------------------
On July 10, 2009, the shareholders of AMA Consultants Limited
resolved to voluntarily wind up the company's operations.

The company's liquidators are:

          Man Mo Leung
          Kenneth Graeme Morrison
          Mazars CPA Limited
          The Lee Gardens, 34th Floor
          33 Hysan Avenue
          Causeway Bay, Hong Kong


BESTFIT TRANSPORTATION: Creditors' Meeting Set for August 3
-----------------------------------------------------------
The creditors of Bestfit Transportation Limited will hold a
meeting on August 3, 2009, at 2:00 p.m., at Room 801-803 of China
Merchants Building, 303-307 Des Voeux Road, in Central, Hong Kong.

At the meeting, the creditors will be asked to:

   -– receive the company's financial statement;
   -- appoint liquidator; and
   -- resolve that the liquidator's account need not be audited.


ETS TESTING: Members' and Creditors' Meeting Set for August 24
--------------------------------------------------------------
The members and creditors of ETS Testing Service Limited will hold
a meeting on August 24, 2009, at 11:00 a.m., at Room 1301-2, 13th
Floor of CRE Building, 303 Hennessy Road, in Wanchai, Hong Kong.

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


GOODFIELD LIMITED: Creditors' Proofs of Debt Due on August 18
-------------------------------------------------------------
The creditors of Goodfield Limited are required to file their
proofs of debt by August 18, 2009, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on July 16, 2009.

The company's liquidator is:

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


GOODVALE LIMITED: Members to Receive Wind-Up Report on August 25
----------------------------------------------------------------
The members of Goodvale Limited will hold a meeting on August 25,
2009, at 3:00 p.m., to receive the liquidator's report on the
company's wind-up proceedings and property disposal.

The Liquidator can be reached at:

          Ho Wai Chi
          Golden Centre, 20th Floor
          No. 188 Des Voeux Road Central
          Hong Kong


GRAPHIC PACKAGING: Members' Final Meeting Set for August 24
-----------------------------------------------------------
The members of Graphic Packaging International Asia Pacific
Limited will hold their final meeting on August 24, 2009, at
2:00 p.m., at the 29th Floor of Caroline Centre, Lee Gardens Two,
in 28 Yun Ping Road, Hong Kong.

At the meeting, Chen Yung Ngai Kenneth, the company's liquidator,
will give a report on the company's wind-up proceedings and
property disposal.


HELPFUL OFFSET: Appoints Chan Kin Hang as Liquidator
----------------------------------------------------
On July 17, 2009, the creditors of Helpful Offset Printing Company
Limited appointed Chan Kin Hang Danvil as the company's
liquidator.

The Liquidator can be reached at:

          Chan Kin Hang Danvil
          Ginza Square, Room 2301, 23rd Floor
          565-567 Nathan Road
          Yaumatei, Kowloon
          Hong Kong


PACIFIC HARVEST: Members' Final Meeting Set for August 26
---------------------------------------------------------
The members of Pacific Harvest Limited will hold their final
meeting on August 26, 2009, at 3:00 p.m., at 335 Bukit Timah Road
#19-03 Wing On Life Garden, Singapore 259718.

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


RENESAS SYSTEM: Placed Under Voluntary Wind-Up
----------------------------------------------
On July 13, 2009, the sole shareholder of Renesas System Solutions
Hong Kong Limited passed a resolution that voluntarily winds up
the company's operations.

The company's liquidators are:

          Ying Hing Chiu
          Chan Mi Har
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


YOGA PLUS: Members & Creditors' Annual Meeting Set for August 7
---------------------------------------------------------------
The members and creditors of Yoga Plus Limited will hold their
annual meetings on August 7, 2009, at 2:00 p.m. and 2:30 p.m.,
respectively, at Unit 2601, 26th Floor of China Insurance Group
Building, 141 Des Voeux Road, in Central, Hong Kong.

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


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I N D I A
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AGGARWAL TRADING: Low Net Worth Cues CRISIL to Assign 'B' Rating
----------------------------------------------------------------
CRISIL has assigned its rating of 'B/Stable' to the INR140.0
million cash credit facility of Aggarwal Trading Company.  The
rating reflects ATC's small scale of operations in the rice
industry, weak financial risk profile, marked by high gearing,
weak debt protection measures, and low net worth, and exposure to
risks relating to unfavorable changes in government policies.
However, these weaknesses are partially offset by the benefits
that the firm derives from the healthy growth prospects of the
rice industry.

Outlook: Stable

CRISIL expects ATC's financial risk profile to remain weak over
the medium term, due to working-capital-intensive operations, and
aggressive expansion plans.  The outlook may be revised to
'Positive' if the firm's profitability improves substantially,
after the commencement of the proposed sela plant.  Conversely,
the outlook may be revised to 'Negative' if large, debt-funded
capital expenditure leads to further deterioration in the firm's
capital structure.

                      About Aggarwal Trading

Set up in 1980, ATC mills, processes and sells basmati rice under
the brand, Sohni.  It produces polished as well as unpolished
rice. The firm's plant at Bakhtawarpur (New Delhi) has a milling
capacity of 200 tonnes per day.  The firm has plans to set up a
sela plant for parboiling in Haryana in 2009-10.

ATC reported a profit after tax (PAT) of INR1.2 million on net
sales of INR849 million for 2007-08, as against a PAT of
INR0.5 million on net sales of INR749 million for 2006-07.


AIR INDIA: Seeks INR10,000cr Government Bailout
-----------------------------------------------
Air India Ltd is seeking an urgent infusion of INR20,000 crore to
tide over its worst ever financial crisis, The Economic Times
reports citing AI' restructuring plan presented to the committee
of secretaries on Saturday.  The report notes the amount is up
five times from the amount it was seeking from the government in
October 2008.

The plan, which was made by SBI Caps, shows that the carrier is
seeking an equity infusion of INR10,000 crore from the government,
besides permission to raise a similar amount through a bond issue
or through a soft loan, a government official familiar with the
development told the ET.

The airline also presented its plan to reduce cost and ways to
increase revenue, the ET says.

The Cabinet secretary-headed committee of secretaries (CoS), who
heard AI CMD Arvind Jadhav's plan to turn around the airline,
asked AI to submit a timeline for its cost-cutting programme in
quarterly basis, according to The Times of India.

The Times relates sources said the CoS will meet again in three to
four weeks, depending on how fast AI is able to submit its
reworked plan.  After that meeting, says the ET, the CoS and
finance ministry's view on infusing funds and quantum, will be
sent to the Union Cabinet for approval.

Meanwhile, The Time of India reports that India's finance ministry
is setting up a special group of senior officials to decide
financial requirements of Air India.

The finance ministry panel will also examine the practicality of
AI's promises of cost-cutting and revenue enhancement being made
to get crucial financial support, the Times relates.

As reported in the Troubled Company Reporter-Asia Pacific on
June 10, 2009, the National Aviation Company of India Ltd., the
holding company for the carrier, was seeking INR14,000 crore in
equity infusion, soft loans and grants.  The TCR-AP reported on
June 19, 2009, that Air India has been bleeding due to excess
capacity, lower yield, a drop in passenger numbers, an increase in
fuel prices and the effects of the global slowdown.  Air India's
losses have almost doubled to over INR4,000 crore in 2008-09
(INR2,226 crore in 2007-08) and it does not have the money to foot
the INR350-crore monthly salary bill of its 31,500 employees,
according to the Hindustan Times.

The TCR-AP reported on July 10, 2009, that NACIL is working
overtime to prepare by the month-end a business plan and a
financial restructuring plan.  NACIL is also expected to come up
with plans for the next six months, 12 months and 18 months for
bringing in cost reduction and improving revenue generation.

                          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.


ASIAN TEA: CRISIL Rates INR20 Million Cash Credit Limits at 'BB+'
-----------------------------------------------------------------
CRISIL has assigned its ratings of 'BB+/Stable/P4' to the bank
facilities of Asian Tea & Exports Ltd.

   Facilities                          Ratings
   ----------                          -------
   INR20 Million Cash Credit Limits*   BB+/Stable (Assigned)
   INR80 Million EPC/PCFC@             P4 (Assigned)
   INR165 Million FBD/EBR#             P4 (Assigned)
   INR35 Million Standby Line of       P4 (Assigned)
                 Credit+
   INR100 Million Letter of Credit     P4 (Assigned)
   INR2.5 Million Bank Guarantee       P4 (Assigned)

   *One way 100% interchangeable from CC to EPC/PCFC;
   @100% interchangeable from EPC/PCFC to FBD/EBR and 50%
    interchangeable from FBD/EBR to EPC/PCFC;
   #100% interchangeable from EPC/PCFC to FBD/EBR and 50%
    interchangeable from FBD/EBR to EPC/PCFC;
   +may be availed as EPC/PCFC and/or FBD/EBR

The ratings reflect ATEL's constrained financial risk profile on
account of low net worth and increased competition on account of
fragmented nature of industry.  These weaknesses are, however,
partially offset by ATEL's average business risk profile.

Outlook: Stable

CRISIL believes that ATEL will maintain a stable business risk
profile over the medium term backed by the experience of its
promoters in the tea industry.  The outlook may be revised to
'Positive' if ATEL diversifies its product and customer base
successfully.  Conversely, the outlook may be revised to
'Negative' if the company undertakes large, debt-funded capital
expenditure.

                          About Asian Tea

Incorporated in 1994 as a public limited company for trading in
tea, ATEL is managed by Mr. Hariram Garg and his son, Mr. Sunil
Garg.  Export sales constituted around 95 per cent of ATEL's
revenues in the year ended March 31, 2008.  The company also
trades in products such as iron and steel bars, timber logs and
garments.

ATEL reported a profit after tax (PAT) of INR4 million on net
sales of INR723 million for the year ended March 31, 2008, as
against a PAT of INR 6 million on net sales of INR652 million in
the prior year.


BHAVYA CEMENTS: ICRA Assigns 'LBB+' Rating on INR2.06BB Term Loans
------------------------------------------------------------------
ICRA has assigned an LBB+ rating to INR2060 million Term loans of
Bhavya Cements Limited, indicating inadequate credit quality.

The assigned rating is constrained by the facts that this is the
first major project expenditure being incurred by the group and
that BCL is under project implementation stage.  BCL is located in
the Guntur district of Andhra Pradesh, a cement surplus region and
this region is expected to witness huge capacity additions in the
short to medium term.  Given the possibility of further increase
in current oversupply situation, the ability of BCL to generate
positive cash flows from operations would crucially depend on the
operating cost structure of its cement plant that is currently in
construction phase.

However, the rating favorably factors in the availability of large
limestone reserves, proximity to rail and road network thereby
providing cost-effective transportation and the fact that most key
project approvals are in place.  The rating also takes into
account debt financial closure and the fact that the project
implementation is currently ahead of schedule.

As BCL is in project implementation stage, the actual energy
efficiency, input consumption patterns and freight costs are yet
to be demonstrated.  Further, BCL is still in the process of
securing linkage for coal which is a critical input in cement
manufacturing.  Given this and considering that the promoters have
limited experience in independently running a cement plant, BCL’s
ability to attain the target operating parameters, the most
critical element for a cement company’s cost structure, remains to
be seen.  ICRA also notes that the final mining lease approval and
equity of INR570 million for the project are yet to come in.

As is characteristic of cement plants in the region, BCL plans to
sell more than majority of its output, around 60%, in Andhra
Pradesh‡ and the balance in adjoining states like Tamil Nadu,
Orissa and Karnataka.  The southern region, specifically Andhra
Pradesh, is expected to witness significant surplus capacity in
the short to medium term with most existing players planning
capacity expansions.  Moreover, BCL being a new entrant,
establishing its brand and an effective sales & distribution
network in the market that has excess supply of cement could take
time.

Going forward, ICRA expects the project to be completed by
December 2009 and achieve competitive cost structure.  The likely
project gearing after infusion of balance equity is 1.79 times.

                       About Bhavya Cements

Bhavya Cements Limited is a company incorporated in April 2007 to
set up a 1.2 million tonnes per annum cement manufacturing
facility in Guntur district of Andhra Pradesh. BCL is promoted by
Mr. V Ananda Prasad and his associates.  Mr. Prasad is a first
generation entrepreneur and started his business in the field of
construction and real estate in 1991 by incorporating Bhavya
Constructions Private Limited (BCPL).  BCPL operates mainly in
Hyderabad and has executed more than 65 residential and commercial
projects in Hyderabad and Visakhapatnam.  As on March 31, 2009,
BCPL had operating revenues of INR121 million, and net worth of
INR557 million.  At present Mr. Prasad along with his wife V.
Krishna Kumari and BCPL holds 48.8% in BCL and with the additional
total equity infusion of INR570 million they shall hold 56.6% in
BCL.

BCL has acquired 1000 acres of limestone mines, 150 acres of which
is being used for setting up of the cement plant.  The project
implementation started in September 2008 after land acquisition
was completed and environmental clearance was obtained.  The
project was initially proposed to be completed by March 2010.,
however as per current progress the project is likely to be
completed by December 2009.  The total project cost of INR3210
million is proposed to be funded by equity of INR1150 million and
debt of INR2060 million.  The company has appointed LNV Technology
Private Limited, Chennai on a turnkey basis for supply,
fabrication and erection of the plant and machinery.


GOEL JEWELLERY: ICRA Rates INR120MM Fund Based Limits at 'LBB+'
---------------------------------------------------------------
ICRA has assigned LBB+ rating to INR120 million fund based limits
of Goel Jewellery Overseas Corp.  The rating indicates inadequate-
credit-quality in the long term.  ICRA has also assigned A4+
rating to INR 50 million non-fund based limits of GJOC indicating
risk-prone-credit-quality in the short term.

The assigned ratings take into account intensely competitive and
fragmented nature of the industry; GJOC’s modest scale of
operations and its relatively high gearing levels which coupled
with low profitability has led to low debt coverage indicators.
While assigning the ratings, ICRA has also noted the slowdown in
jewellery demand in the international markets and its plausible
affect on the future sales and margins of the firm.  However the
ratings derive comfort from GJOC’s experienced promoters, their
long track record in the jewellery business and their established
relation with wholesalers and retailers.

                       About Goel Jewellery

Goel Jewellery Overseas Corp., a partnership firm promoted by
Mr. Hemant Goel, is engaged in the manufacturing, designing,
wholesale and retail sales of gold, diamond and precious stone
studded jewellery.  The Goel family has over seven decades of
experience in the jewellery business.  However GJOC, set up in
2006, is a relatively new firm in the Goel Group.  The firm
exports jewellery to countries like UAE, Singapore, USA and United
Kingdom.  In the domestic market the company primarily sells to
wholesale dealers. The firm also has two retail showrooms, one
each in Delhi and Gurgaon.

In FY09, the firm earned a Net Profit of INR5.1 million on an
operating income of INR769.5 million.


INDIAN EXTRACTIONS: CARE Rates INR24.44cr LT Bank Loan at 'BB'
--------------------------------------------------------------
CARE has assigned a "CARE BB" rating to the Long-term Bank
Facilities of Indian Extractions Ltd. aggregating INR24.44 crore.
This rating is applicable to facilities having a tenure of more
than one year.  Facilities with this rating are considered
to offer inadequate safety for timely servicing of debt
obligations.  Such facilities carry high credit risk.

Also, CARE assigned a "PR 4" rating to the Short-term Bank
Facilities of IEL aggregating INR5 crore.  This rating is
applicable to facilities having a tenure up to one year.
Facilities with this rating would have inadequate capacity for
timely payment of short-term debt obligations and carry very high
credit risk.  Such facilities are susceptible to default.

Rating Rationale

The ratings are constrained by seasonal nature of operations, the
liberal edible oil import policy of Government, easy availability
of close substitutes, volatility in foreign exchange movements
which affect exports, IEL’s continued high dependence on
borrowed funds, small size of operations and losses incurred in
the past. The ratings are further constrained by the debt-funded
expansion project undertaken in FY09.

The ratings also factor in significant experience of and financial
support by promoters, strategic location in terms of proximity to
the port, strong domestic demand for edible oil and favourable
global demand for de-oiled cakes.

                     About Indian Extractions

Indian Extractions Limited belongs to the Nanavati Group of
companies and was incorporated on February 6, 1956.  IEL is
managed by Mr. S.B. Jhaveri, promoter-CMD and Mr. Priyam S.
Jhaveri, Jt. MD.  Its manufacturing facility at Jamnagar has an
installed capacity of 90,000 MTPAof solvent oil extraction.

The company is engaged in the extraction of refined oil and
manufacturing of de-oiled cakes by processing groundnut / rapeseed
oil cakes.  IEL’s plant is located near Bedi Port which is well
connected by road as well as rail for distribution and export of
its finished products. It is also a recognized Export House.

IEL completed the upgradation of its Extractor in November 2008
and also undertook expansion of refining capacity in FY09, to be
commissioned by end of May 2009. The refining capacity expansion
involves building a new Bleaching & Deodoriser (Physical)
Refinery of 50 MT per day (MTPD), thus expanding its capacity to
80 MTPD. The expansion is expected to enable IEL to use solvent
extracted or unrefined oil either of groundnut, soyabean,
rapeseeds, cottonseeds and palm.

The aggregate cost of the two projects was INR6.25 crore, funded
by debt of INR5 crore and equity of INR1.25 crore.  The financial
closure has been achieved.  The promoters infused INR0.89 crore as
of March 31, 2009 by way of unsecured loans.  The balance
promoters’ contribution is also envisaged to be infused similarly.

Improved realisation of de-oiled cakes led to a y-o-y increase of
7% in net sales in FY08 and rise in PBILDT.  Consequently, for the
first time in the past four years, IEL posted positive net cash
accruals in FY08.  However, as the business is working-capital
intensive and IEL did not have significant reserves of its own, it
continued to rely on working capital borrowings to fund its
operations.  Consequently, interest cost remained high and IEL
posted a loss in FY08 too, albeit much lower than the loss in
FY07.  Insurance claim received in FY08 towards flood damages in
FY07 helped to reduce the loss. IEL’s current ratio was a low
1.03x at end-FY08.  The company’s liquidity position was under
strain on account of high inventory levels. Overall gearing
ratio continued to be high and interest coverage ratio continued
to be lower than unity.  IEL registered a loss in 9MFY09 at the
PBILDT level, reversing the gains of FY08, due to increase in sea
freight cost.


INDUSIND BANK: Fitch Gives Positive Outlook; Affirms 'D' Rating
---------------------------------------------------------------
Fitch Ratings has revised the Outlook on IndusInd Bank Limited's
National Long-term rating to Positive from Stable.  At the same
time, Fitch has affirmed IBL's National Long-term rating at
'A(ind)', National Short-term rating at 'F1(ind)', Individual
rating at 'D', Support rating at '5', INR4.851 billion
subordinated Lower Tier 2 bonds at 'A(ind)' and INR3.08 billion
Upper Tier 2 bonds at 'BBB+(ind)'.

The Outlook on IBL's rating has been revised to Positive to
reflect the bank's improving financials following new management's
initiatives (including reducing mismatch in its structural asset-
liability profile).  Aggressive growth of its corporate loan
portfolio has reduced the share of fixed-rate retail loans (Q110:
44.5%; FY08: 56%); furthermore IBL's vulnerability to interest
rate movements has fallen given its improving retail terms and
low-cost current and saving account deposit franchise.  The
Positive Outlook also takes into account IBL's revised capital
management strategy of maintaining higher Tier 1 capital; the bank
intends to raise equity capital before end-September 2009 to stay
adequately capitalized (to maintain Tier 1 around 8.5%) through
budgeted loan growth.  IBL expects its loan growth to be higher-
than-systemic credit growth on the back of its expanding branch
network.

IBL's profitability, in term of return on assets, has been
improving (FY09: 0.58%; FY08: 0.34%) due to gradual re-pricing of
fixed-rate vehicle loans as well as management's focus on
improving CASA and its fee income franchise.  ROA spiked to 1.3%
at Q110 as the cost of bulk deposits decreased significantly in
the current easy domestic liquidity scenario.  IBL's gross NPL
ratio improved considerably to 1.5% at Q110 (FY08: 3.0%) due to
the resolution of a large corporate NPL; the ratio now compares
well with systemic median (FY09: about 2.2%).  Fitch remains
concerned about delinquencies in the rapidly expanding corporate
loans book (FY09: 65%) as corporate cash flows remain under
pressure.

The ratings could be upgraded if IBL demonstrates an ability to
maintain the improvements and healthy net interest margin through
a period of volatile interest rate movements.  Notwithstanding the
improvements, the proportion of IBL's retail and CASA deposits
remains low and its cost of borrowing remains among the highest
for Indian banks.  Further improvements in its retail deposit
franchise would help IBL stabilize its cost of borrowings and
better match its asset-liability maturities.

IBL is one of nine 'new' private banks established in 1994; its
founders own 25.6% of the bank.  Its 180 branches are spread
throughout India.  Following the resignation of the Managing
Director and Joint MD in December 2007, IBL hired nine senior
bankers from ABN-AMRO to re-constitute its management team.


JET AIRWAYS: To Merge Jet Konnect and JetLite Carriers
------------------------------------------------------
The Economic Times reports that Jet Airways (India) Ltd is
considering a plan to merge its low-cost service Jet Konnect and
its budget airline JetLite, once the ongoing legal dispute with
Sahara Group is resolved.

"We will look at it (merger) once the time is right," Jet Airways
CEO Wolfgang Prock-Schauer told the ET.

The report relates that the Naresh Goyal-controlled Jet Airways
launched Jet Konnect in May to arrest the falling load factor on
its full service airline.  Jet was forced to start a new service,
as the ongoing legal dispute with Sahara prevented it from
transferring planes to JetLite, the ET recalls.

According to the report, Jet Airways plans to transfer two-thirds
of its domestic capacity into Jet Konnect by October.  After the
transfer, there will be 19 Boeing 737 planes and 10 ATR planes
under Jet Konnect.

The report, citing an analyst, says it makes sense to fly with a
single-brand rather two separate brands providing same facilities.

As reported in the Troubled Company Reporter-Asia Pacific on
April 6, 2009, The Hindu BusinessLine said Sahara India has moved
an application before the Bombay High Court against Jet Airways,
claiming the airline had defaulted in its payment commitments.

This is the second time that the two groups are involved in a
legal tussle, almost two years after Jet Airways acquired Sahara
Airlines.  The first being even before the deal was sealed in
April 2007, the Business Line said.

Jet Airways acquired Sahara Airlines, which was renamed Jet Lite,
in an all-cash deal for INR1,450 crore.  At the time the deal was
inked, the Business Line stated, Jet paid INR 900 crore,
committing to pay the remaining INR550 crore in four equal annual
and interest-free installments of INR137.50 crore in four years
beginning March 2008.

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 program 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.


JET AIRWAYS: To Retire All Expat Pilots by End of Fiscal Year
-------------------------------------------------------------
The Economic Times reported that Jet Airways (India) Ltd. will
complete the process of replacing expat pilots with Indian pilots
by the end of the current fiscal.

The contracts of nearly three dozen expat pilots will expire in
October while some more will run out in December with the rest by
March next year, the report says.

"We will gradually replace all foreign expats with local
experienced Indian pilots.  The airline has plans to upgrade the
Indian co-pilots at the commander level after giving proper
training," Jet Airways CEO Wolfgang Prock-Schauer told the ET.

The ET says the objective of this exercise is to control costs.

According to the report, the airline had earlier issued
termination notices to 43 cabin crew on probation.  It has also
terminated contracts of 110 employees, of which 60 had
superannuated and the rest were probationary cabin crew staff, the
report notes.

Jet Airways reported a first-quarter loss of INR2.25 billion
(US$47 million) in the first quarter ended June 30, 2009,
compared with a net income of INR1.43 billion a year ago.
For the quarter ended June 30, the carrier posted revenue of
INR24.28 billion (US$ 506.9 million), down by 16.2% from a year
ago.

                         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 and international.
The company has a frequent flyer program 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.

                           *     *     *

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.


KOTAK MAHINDRA: Fitch Affirms Individual Rating at 'C/D'
--------------------------------------------------------
Fitch Ratings has affirmed Kotak Mahindra Bank Limited's National
Long-term rating at 'AA+(ind)', National Short-term rating at 'F1+
(ind)', Individual rating at 'C/D', Support rating at '5', INR5.75
billion Lower Tier II debt at 'AA+(ind)' and its
INR0.5 billion Upper Tier II bonds at 'AA(ind)'.  The Outlook is
Stable.

The affirmations are premised on KMBL's strong capitalization and
management, above average financial performance along with the
robust franchise that its subsidiaries have in auto finance,
securities broking, investment banking and asset management
businesses in India.  The bank's relatively high dependence on
wholesale funding and limited franchise in commercial banking
constrain the ratings.  Fitch has taken a consolidated view of
KMBL and its subsidiaries to arrive at its credit profile.

KMBL's consolidated net income declined by 32% in FY09 due to
lower contribution from its capital market businesses.  Lending
businesses -- KMBL and Kotak Mahindra Prime Ltd. -- however remain
resilient despite negligible loan growth (2% for the consolidated
entity).  Net interest income grew (KMBL: 23%; KMPL: 54%) on the
back of net interest margin improvements (KMBL: 50 bp; KMPL: 200
bp) made possible by better pricing power in H209.  This coupled
with cost rationalization helped the consolidated entity attain a
return on assets of 1.61% in FY09, even though loan impairment
charges increased by 40%.  Despite a 76% increase in impairment
charges, its strong NIM (6%) and stable fee income enabled the
bank to achieve a standalone RoA of 0.97%, which is close to the
system median.  Over the next 12 months Fitch expects some NIM
moderation due to increasing focus on corporate lending and credit
costs are likely to remain elevated due to challenging business
conditions.  That said, KMBL's NIM is expected to remain above
peers and coupled with its fee income platform limits downside to
RoA.

A retail-asset focused bank (75% of loans are retail), KMBL faced
considerable asset quality pressure over the last 12 months as
repayment problems spread from the unsecured segment to other
retail and SME segments.  The NPL accretion rate (Additions to
gross NPL/Opening loans: 3.32%) was amongst the highest in the
system for FY09; Fitch has been informed that the trend has not
reversed in Q110.  The acquired stressed assets portfolio has
added to the pressure.  However unlike many other banks, KMBL's
loan restructuring has been low and it has enhanced provisioning
amid slowing loan growth.  In Fitch's opinion, these actions along
with KMBL's market knowledge are expected to keep it ahead of the
asset quality curve.

Nevertheless, KMBL's ability to absorb an asset quality shock
remains strong given its high capitalization (standalone CAR of
19.86% and Tier I of 16.83% are the highest in the Indian banking
system).  Consolidated common equity (more than INR65bn in FY09)
compares well with many large government banks. Dilution is
unlikely over the next 12-18 months as management has articulated
modest growth aspirations and ruled out capital infusion in
subsidiaries.  Fitch therefore expects KMBL's capitalization to
support it through the downturn.

While its low-cost deposit base grew to 32% of total deposits in
FY09 (FY08: 28%), customer deposits as a proportion of total
liabilities remains low at 53%, and its reliance on short-term
wholesale funding is high (50% of deposits).  Fitch notes that
focus on wholesale funding has been enhanced over the last few
months to take advantage of benign rates.  While the resultant
structural asset liability gaps are covered and the group has
established refinancing capabilities, KMBL's vulnerability in a
prolonged liquidity squeeze remains higher than its peers.

KMBL is a new private sector Indian bank whose subsidiaries (in
car finance, asset management, securities broking, investment
banking) occupy leading positions in their respective businesses.


MAYTAS INFRA: Files Writ Petition Over Cancelled Metro Project
--------------------------------------------------------------
The Times of India reports that Maytas Infra Ltd, a firm run by
the family of former Satyam Chairman B. Ramalinga Raju, on Monday
filed a writ petition in the Andhra Pradesh High Court challenging
the termination of the concession agreement by the state
government that the two had entered into for executing the
Hyderabad Metro project.

The report, citing Mayta's petition, says the company contended
that the action of the government was unreasonable and did not
take into account hindrances and hurdles which were beyond their
control.

According to the report, Maytas urged the court to declare the
action of the government as illegal and to stay all further
proceedings pursuant to the bid notice issued by Hyderabad Metro
Rail Corporation issued on July 16.  The petition, says the Times,
also mentioned that the Maytas-led consortium had submitted a bid
security amount of INR60 crore and bid offer amount of INR11
crores to the Metro Rail Corporation.

As reported in the Troubled Company Reporter-Asia Pacific on
July 10, 2009, the Andhra Pradesh government decided to cancel the
Hyderabad Metro rail project contract awarded to Maytas Infra as
the company failed to achieve financial closure by the March
deadline.

Maytas bagged the INR12,000-crore project by offering to give
about INR30,000 crore to the government over 30 years.

As reported in the TCR-AP on Feb. 20, 2009, the Financial Express
said the government called on the Company Law Board to supercede
the present boards of Maytas Infra Ltd and Maytas Properties Ltd.
"In order to prevent further acts of fraud against the said
companies (two Maytas companies) and to safeguard operations of
these companies in public interest, the government has moved the
CLB to remove the existing directors of these companies," the
Financial Express quoted Corporate Affairs Minister Prem Chand
Gupta as saying.

The Hindu Busines Line related that the application to the CLB was
based on the information given by the Serious Fraud Investigation
Office, which showed that the present management of the two
companies had worked with fraudulent intent, breached
stakeholders' trust, persistently neglected its obligations and
functions 'to the serious detriment of the business and operations
of these two companies and stakeholders'.  According to the Hindu
Business Line, the board of Maytas Infra comprises Dr. R. P. Raju
(Independent director), Mr. B. Teja Raju (Vice- Chairman and son
of Mr B. Ramalinga Raju), and Mr. B. Narasimha Rao (who was
inducted on January 30, 2009).

                     Receivership Application

As reported in the TCR-AP on Feb. 18, 2009, India Infoline, citing
a report, said the Bombay High Court rejected an application made
by IDBI Bank and ICICI Bank seeking appointment of a court
receiver to oversee the administration of Maytas Infra Limited.
According to Infoline, Maytas is carrying out 62 infrastructure
projects and has Rs40.45 billion debt outstanding, in term loans
and working capital facilities from various banks.  Infoline said
Maytas's financial health and its ability to complete the ongoing
projects is crucial for the banks.  On February 9, Infoline said a
High Court judge refused to grant ad-interim relief sought by the
two banks.

                       About Maytas Infra

Maytas Infra Limited -- http://www.maytasinfra.com/-- is an
India-based construction and infrastructure developer.  The
Company is primarily engaged in the business of construction of
roads, irrigation projects, buildings, industrial structures, oil
and gas infrastructure, railway infrastructure, power transmission
and distribution lines, including rural electrification, power
plants, and development of airports and seaports.  The Company's
construction business is classified into four sub-segments:
transportation, which includes roads and railways; water projects;
buildings and structures, and energy. Its infrastructure business
is also classified into four sub-segments: power, ports, roads and
airports.


SOUTH INDIAN: Fitch Assigns Individual Rating at 'D'
----------------------------------------------------
Fitch Ratings has assigned an 'A+(ind)' rating to The South Indian
Bank Limited's INR2bn subordinated Lower Tier 2 debt programme.
SIB's existing ratings are:

  -- 'A+(ind)' National Long-term rating;
  -- 'D' Individual rating;
  -- '5' Support rating; and
  -- 'A+(ind)' INR1.3 billion existing subordinated Lower Tier 2
      bond.

The Outlook is Stable.

SIB's ratings reflect its improved financials, relatively small
size and predominantly regional franchise.  The ratings also take
into account SIB's above-average capitalization ratios.

SIB is an 'old' private sector bank based in the state of Kerala.
The bank lends primarily to regional SMEs through its network of
539 branches; over 53% of its deposits and 33% of its advances are
sourced from its home state.


TATA MOTORS: Q1 Stand-Alone Profit Up 57.5% to INR513.76cr
----------------------------------------------------------
Tata Motors Limited reported revenues (net of excise) of
INR6404.63 crores on a stand-alone basis for the quarter ended
June 30, 2009, of the financial year 2009-10, a decline of 7.6%
compared to INR6928.44 crores in the corresponding quarter
previous year.

The company's continued focus on cost efficiencies, coupled with
reduction of raw material prices, inventory reduction and
improvement in sales realization, yielded considerable benefits
resulting in the operating margin to 11.4% (from 7.1% in the
previous year), with operating profits at INR728.00 crores, an
increase of 47.9% as compared to the corresponding period of the
previous year.

Profit before Tax for the quarter grew by 58.8% to INR548.04
crores (Q1 2008-09: INR345.09 crores) and Profit after Tax was
INR513.76 crores (Q1 2008-09: INR326.11 crores), an increase of
57.5%.  The interest cost (net) at INR253.45 crores for the
quarter increased by 125.6% due to increased debt taken by the
company during the previous year to support its product
programmes, investments and working capital requirements and
depreciation at INR229.12 crores was higher by 26.7% reflecting
the increased investments in new products and supporting
capabilities.  For the quarter ended June 30, 2009, there was an
exceptional notional foreign exchange valuation loss of INR5.54
crores (previous year loss of INR161.59 crores).

Improvement in liquidity, increased reach across the country and
introduction of new products and variants improved the company’s
sales, except in the case of the heavy truck segment.  The heavy
truck segment is recovering, albeit slowly, in response to
infrastructure development, Government stimulus packages for the
automobile industry and Jawaharlal Nehru National Urban Renewal
Mission initiatives.

The company’s domestic sales volume at 122,120 vehicles recorded a
marginal decrease of 1.4% over the corresponding quarter of the
previous year, whilst the exports at 5220 vehicles continued to be
severely impacted (negative 43%) in the wake of continuing
tumultuous global environment resulting in total sales volume at
127,340 vehicles, a decline of 4.3% as compared to the
corresponding quarter of the previous year.  The company gained
market share in commercial vehicles to 67.4% during the quarter
compared with 61% in the corresponding quarter of previous year on
the back of a marginal 1.1% growth in domestic sales to 72,216
units.  Tata passenger vehicles declined by 10% in the domestic
market to 45,846 units but have been growing sequentially every
month of the quarter breaking into positive growth in June.  The
market share for Tata passenger vehicles has sequentially improved
from April to June 2009 with the June exit market share at 12.5%,
and for the period being at 11.3%.  Along with Fiat, the company
has a joint market share of 12.3% in the industry.

The company continues to upgrade its resources to leverage
emerging opportunities.  In commercial vehicles, the company
unveiled its new range of world standard trucks in May 2009,
comprising multi-axle trucks, tractor-trailers, tippers, mixers
and special purpose vehicles which are being gradually launched in
India and also in select international markets over a period of
time. An all-new Starbus range of buses has also been introduced.
A new mileage enhancing automatic stop-start technology, developed
in-house, has been introduced in the Ace mini truck.  Tata Motors
has received a majority of the orders for buses released by
different State Governments under the JNNURM.

In passenger vehicles, the company has completed the process of
allotment of Tata Nanos, following the car’s launch in March 2009.
Deliveries to the allottees have since begun.  The company also
opened the first Jaguar Land Rover showroom in India at Mumbai.
Along with the Fiat Linea, Fiat 500 and the Palio, the company has
commenced the distribution of the Fiat Grande Punto in June 2009.

The consolidated financial results for the first quarter ended
June 30, 2009, would be voluntarily disclosed separately in due
course.

                         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.


TATA MOTORS: Repays US$150 Million of Bridge Loan Facility
----------------------------------------------------------
Tata Motors has repaid US$150 million of the outstanding US$1
billion bridge loan that was rolled over earlier this year, The
Economic Times reports citing Tata Motors vice chairman Ravi Kant.

The Times relates Mr. Ravi said the company used the proceeds from
the sale of a 1.5% stake in group firm Tata Steel last month.

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.


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


PT GAJAH: Moody's Assigns 'Caa1' Rating on US$435 Mil. Bonds
------------------------------------------------------------
Moody's Investors Service has assigned a Caa1 to PT Gajah Tunggal
Tbk's senior secured rating for the US$435 million bonds due in
2014, and has withdrawn the Ca senior unsecured for the US$420
million bonds due in 2010.  Both bonds are issued by GT 2005 Bonds
BV and guaranteed by GT.  The outlook for the rating is stable.

At the same time, Moody's has changed the outlook of GT's Caa1
corporate family rating to stable from negative.

"The outlook change to stable follows the completion of GT's
exchange offer and consent solicitation for its US$420 million
bonds due in July 2010," says Wonnie Chu, a Moody's Analyst.

"The successful completion of the exchange offer substantially
addresses GT's refinancing risk.  In addition, the lower interest
rates from the new bond also reduce financing costs, which helps
alleviate pressure on interest coverage," says Chu, also Moody's
lead analyst for the company.

The stable outlook also incorporates the expectation that GT will
prudently manage its cash outlays and capex and gradually reduce
its leverage over the medium term.

The Caa1 rating continues to reflect the fact that despite the
successful completion of the exchange offer, GT remains highly
leveraged.  Moody's notes that GT has obtained a waiver from the
bank providing the working capital facilities.

The rating also reflects the challenging operating environment the
company faces in the near to medium term.  The decline in sales,
volatile raw material prices, and adverse working capital
movements may likely to challenge the company's ability to
generate adequate cash flow and maintain profitability over the
short to medium term.

Upward pressure on GT's ratings remains limited in the near term,
given the weak outlook for the auto-parts sector.  However, a
positive rating trend could evolve over time if industry or
company fundamentals improve and lead to sustainable reduction in
its financial leverage.

GT's rating could be downgraded if its liquidity profile weakens,
which could be caused by weak cash flow generation or if it loses
support from its bankers who provide working capital facilities,
such that there is little or no buffer for its interest payments.

The last rating action was taken on Jun 15, 2009, when GT's senior
unsecured bond rating was downgraded to Ca from Caa1 following its
exchange offer and consent solicitation announcement.

PT Gajah Tunggal Tbk is Southeast Asia's largest integrated tire
manufacturer.  Its key products include tires for motorcycles,
passenger cars and commercial and heavy equipment vehicles.  Giti
Tire, a Chinese tire manufacturer, is a 27.9% shareholder in GT
through its subsidiary, Denham Pte Ltd.


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


METALDYNE CORP: Court OKs Hephaestus, Revstone as Stalking Horse
----------------------------------------------------------------
Metaldyne Corporation said the U.S. Bankruptcy Court for the
Southern District of New York has approved:

     -- Hephaestus Holdings, Inc. as the stalking horse bidder for
        most of its Powertrain operations; and

     -- Revstone Industries LLC as the stalking horse bidder for
        most of its Chassis operations.

The auctions will be held in early August.

Hephaestus Holdings, Inc., a portfolio company of KPS Capital
Partners LP with other automotive holdings, has submitted a
binding proposal for all of Metaldyne's Sintered Products,
European Forgings and Vibration Controls Products operations
located in Europe, Asia, Brazil, Mexico and the U.S.  In addition,
HHI, through an affiliate, has agreed to purchase the company's
Bluffton, Ind.; Litchfield, Mich., and, subject to certain
conditions, the Twinsburg, Ohio, plant.  KPS Capital Partners will
provide HHI with a significant additional cash investment to
support letters of credit and working capital needs of the
Powertrain businesses post closing.

HHI, through its Jernberg Holdings Inc., Impact Forge Group Inc.
and Kylos Bearing International Inc. subsidiaries, is an
independent manufacturer of forged parts and wheel bearings for
the North American automotive industry.

The final auction date for the Powertrain sale is August 5, 2009.
It will be held at the offices of Jones Day at 222 East 41st
Street, New York, N.Y.  Additional bids for the company's
Powertrain operations are due by August 3, 2009.

Revstone, a private equity company, is bidding on the purchase of
Metaldyne's chassis operations in Edon, Ohio; Greensboro, N.C.;
Barcelona, Spain, and Iztapalapa, Mexico.

The final auction date for the Chassis sale is August 3, 2009.  It
will also be held at the Jones Day offices at 222 East 41st
Street, New York, N.Y.  Additional bids for the Chassis business
are due by July 31, 2009.

A stalking horse bid is a binding proposal on a bankrupt company's
assets from an interested buyer chosen by the bankrupt company.
Once the stalking horse is approved by the court other potential
buyers may submit competing bids for the bankrupt company's
assets.

"I am very pleased we have identified stalking horse bidders for
most of our Powertrain and Chassis operations," said Thomas A.
Amato, chairman, president and CEO of Metaldyne.  "The industrial
logic between HHI and Metaldyne Powertrain as well as Revstone and
Metaldyne Chassis is sound.  The Metaldyne operations being
purchased have strong product portfolios, advanced technologies
and perform well operationally.  We believe they would be strong
additions to their businesses.

"It is our plan to sell Metaldyne's operations on a going concern
basis.  We believe this is the best way to preserve as many jobs
as possible, best serve our customers and will allow certain of
our operations to emerge from bankruptcy as quickly as possible,"
Mr. Amato said.

At the onset of Metaldyne's bankruptcy process, the company said
private equity firm RHJ International had submitted a non-binding
letter of intent to purchase certain portions of its Powertrain
assets while The Carlyle Group, also a private equity company, had
submitted a non-binding letter of intent to purchase portions of
the Chassis operations.  However, as part of the sale process
undertaken by Metaldyne's advisors, the bids submitted by HHI and
Revstone presented better alternatives than other bids.

"We are pleased to have so much interest in our operations from
such well-respected companies," Mr. Amato said.

Metaldyne is also seeking buyers for its Balance Shaft Module and
its Tubular Products businesses.

Metaldyne is a market leader in balance shaft modules.  It has
good technology, a diverse customer base and growth potential. It
currently supplies components for the fuel-efficient I-4 engine.
Balance shaft modules are produced at Metaldyne's plants in
Fremont, Ind., and Pyeongtaek, Korea.

The Tubular Products operations are housed at Metaldyne's Hamburg,
Mich., plant, which produces fabricated exhaust manifolds and
other tube-formed products.

Metaldyne's Balance Shaft Module and Tubular businesses are being
marketed by the investment banking firm Donnelly Penman &
Partners.  Metaldyne's Powertrain and Chassis operations are being
marketed by Lazard.

Metaldyne and its U.S. subsidiaries filed voluntary petitions in
the United States Bankruptcy Court for the Southern District of
New York under Chapter 11 of the U.S. Bankruptcy Code on May 27
primarily as a result of liquidity, excess leverage, and pension
and lease costs compounded by the unusually low production volumes
in the North American automotive industry.  The filing did not
include the company's non-U.S. entities or operations.  Metaldyne
has a $19.85 million debtor-in-possession (DIP) facility in place
with agent bank Deutsche Bank AG, New York, but funded by certain
of Metaldyne's OEM customers.

"Overall we remain on track both in financial performance and in
our divestiture process," Amato said. "I am confident Metaldyne's
better performing operations will emerge from bankruptcy quickly.
I am very proud of the hard work and commitment of our employees
to restructure the company and keep our costs down without
sacrificing safety, quality, and customer support."

                          About Metaldyne

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 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.
Metaldyne had revenues in 2008 of approximately $1.57 billion.
Metaldyne employs more than 4,400 employees at 33 facilities in 14
countries.

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.N.Y. 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.


MITSHUBISHI MOTORS: JCR Withdraws 'BB' Senior Debts Rating
----------------------------------------------------------
Japan Credit Rating Agency, Ltd. has withdrawn the "BB/Stable"
rating on Mitsubishi Motors Corporation's senior debts at the
request of the company.

Based in Japan, Mitsubishi Motors Corporation (TYO:7211) --
http://www.mitsubishi-motors.co.jp/-- manufactures automobile.
The Company, along with its subsidiaries and associated companies,
is engaged in the development, production, purchase, sale, import
and export of general and small-sized passenger vehicles, mini-
vehicles, sport utility vehicles (SUVs), vans, trucks and
automobile parts, as well as industrial machines.  It is also
engaged in the checking and maintenance of new vehicles, as well
as the provision of automobile sales financing and leasing
services.


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


HYUNDAI MOTOR: Second Qtr Net Income Widens to KRW811.8 Billion
---------------------------------------------------------------
Hyundai Motor Co. reported a net income of KRW811.8 billion in the
second quarter ended June 30, 2009, compared with a net income of
KRW546.9 billion in the same period last year.  Sales for the
three months ended June 30 totaled KRW8.08 trillion, down from
KRW9.1 trillion in the same period last year.  Operating profit
fell 0.8% to KRW657.2 billion.

Net income rose 10.4% to KRW1.04 trillion in the first six months
of the year from KRW939.6 billion a year earlier, Hyundai said in
a statement.  Sales declined 18.5% to KRW14.1 trillion from
KRW17.3 trillion a year earlier.  Operating profit fell 31.9% to
KRW811 billion as exports from domestic plants declined from a
year earlier.

Hyundai Motor sold 1,403,931 units (domestic & exports: 719,478
units, overseas plants: 684,453 units) worldwide in the first
half, a 5.8% decrease from a year earlier as demand for
automobiles in the global market fell.

The Company reached 5% of the global market share in the first
half of this year for the first time ever, amid a 15% decline in
global automobile demand compared to a year earlier. This result
was achieved by expanded share in developed countries including
U.S., China and in Europe as the automaker boosted efforts to
raise its brand image and continued to expand marketing activities
in local markets.  Especially in China, Hyundai sold 257,000 units
in the first half, a 56% rise from a year earlier, mainly helped
by its China-exclusive models.

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.


MAGNACHIP SEMICONDUCTOR: Panel Taps Lowenstein Sandler as Counsel
-----------------------------------------------------------------
The official committee of unsecured creditors of MagnaChip
Semiconductor LLC, et al., asks the U.S. Bankruptcy Court for the
District of Delaware for authorization to employ Lowenstein
Sandler PC as its counsel, effective as of June 29, 2009.

Lowenstein Sandler will:

  a) provide legal advice as necessary with respect to the
     Committee's powers and duties as an official committee
     appointed under Section 1102 of the Bankruptcy Code;

  b) assist the Committee in investigating the acts, conduct,
     assets, liabilities, and financial condition of the Debtors,
     the operation of the Debtors' businesses, potential claims,
     and any other matters relevant to the cases; and

  c) provide legal advice as necessary with respect to the
     disclosure statement and plan of liquidation filed in these
     cases and with respect to the process for approving or
     disapproving the plan.

Lowenstein Sandler's hourly rates are:

     Partners            US$410-US$765
     Counsel             US$320-US$520
     Associates          US$220-US$380
     Legal Assistants    US$120-US$215

John K. Sherwood, Esq., a member at Lowensten Sandler, assures the
Court that the firm does not hold or represent any interest
adverse to the Committee or the Debtors' unsecured creditors in
connection with the Debtors' bankruptcy cases, and that the firm
is a "disinterested person" as that term is defined in Section
101(14) of the Bankruptcy Code.

Headquartered in South Korea, MagnaChip Semiconductor LLC --
http://www.magnachip.com/-- is a leading, Asia-based designer and
manufacturer of analog and mixed-signal semiconductor products for
high volume consumer applications.  The Company has a broad range
of analog and mixed-signal semiconductor technology and
intellectual property, supported by its 29-year operating history,
large portfolio of registered and pending patents and extensive
engineering and manufacturing process expertise.  Citigroup
Venture Capital Equity Partners LP was part of the investor group
that acquired MagnaChip in 2004 from Hynix Semiconductor Inc.

MagnaChip Semiconductor S.A. and five other entities filed for
Chapter 11 on June 12, 2009, in the U.S. Bankruptcy Court for the
District of Delaware.  The Chapter 11 cases are jointly
administered under Case No. 09-12008, MagnaChip Semiconductor
Finance Company.  Judge Peter J. Walsh handles the case.  Curtis
A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones, Esq.,
and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP,
represent the Debtors as counsel.  Howard A. Cohen, Esq., at
Drinker Biddle & Reath serves as counsel for the official
committee of unsecured creditors.  Omni Management Group LLC is
the Debtors' claims agent.  In its petition, Magnachip
Semiconductor Finance Company listed assets below US$50,000 and
debts of more than US$1 billion.

In their formal schedules, MagnaChip Semiconductor S.A. disclosed
US$951,917,782 in assets against US$845,903,186 in debts while
MagnaChip Semiconductor B.V. disclosed assets of US$762,465,739
against debts of US$1,800,612,084.


MAGNACHIP SEMICONDUCTOR: Panel Taps MFC as Financial Advisors
-------------------------------------------------------------
The official committee of unsecured creditors of MagnaChip
Semiconductor LLC, et al., asks the U.S. Bankruptcy Court for the
District of Delaware for authorization to employ Mesirow Financial
Consulting LLC as its financial advisors, nunc pro tunc to
June 29, 2009.

Mesirow Financial will:

  a) assist in the review of reports or filings as required by the
     Bankruptcy Court or the Office of the United States Trustee,
     including, but not limited to, schedules of assets and
     liabilities, statement of financial affairs and monthly
     operating reports;

  b) review the Debtors' financial information, including, but
     not limited to, analyses of cash receipts and disbursements,
     financial statement items and proposed transactions for which
     Bankruptcy Court approval is sought; and

  c) review and analyze the reporting regarding cash collateral
     and any debtor-in-possession financing arrangements and
     budgets.

Mesirow Financial's current normal and customary hourly rates are:

     Senior Manager                US$700-US$750
     Managing Director             US$700-US$750
     Director                      US$700-US$750
     Senior Vice President         US$610-US$670
     Vice President                US$510-US$570
     Senior Associate              US$410-US$470
     Associate                     US$220-US$350
     Paraprofessional              US$100-US$195

Larry H. Lattig, a senior managing director at Mesirow Financial,
assures the Court that the firm does not hold or represent any
interest adverse to the Debtors or their estates, and that the
firm is a "disinterested person" as that term is defined in
Section 101(14) of the Bankruptcy Code.

Headquartered in South Korea, MagnaChip Semiconductor LLC --
http://www.magnachip.com/-- is a leading, Asia-based designer and
manufacturer of analog and mixed-signal semiconductor products for
high volume consumer applications.  The Company has a broad range
of analog and mixed-signal semiconductor technology and
intellectual property, supported by its 29-year operating history,
large portfolio of registered and pending patents and extensive
engineering and manufacturing process expertise.  Citigroup
Venture Capital Equity Partners LP was part of the investor group
that acquired MagnaChip in 2004 from Hynix Semiconductor Inc.

MagnaChip Semiconductor S.A. and five other entities filed for
Chapter 11 on June 12, 2009, in the U.S. Bankruptcy Court for the
District of Delaware.  The Chapter 11 cases are jointly
administered under Case No. 09-12008, MagnaChip Semiconductor
Finance Company.  Judge Peter J. Walsh handles the case.  Curtis
A. Hehn, Esq., James E. O'Neill, Esq., Laura Davis Jones, Esq.,
and Mark M. Billion, Esq., at Pachulski Stang Ziehl & Jones LLP,
represent the Debtors as counsel.  Howard A. Cohen, Esq., at
Drinker Biddle & Reath serves as counsel for the official
committee of unsecured creditors.  Omni Management Group LLC is
the Debtors' claims agent.  In its petition, Magnachip
Semiconductor Finance Company listed assets below US$50,000 and
debts of more than US$1 billion.

In their formal schedules, MagnaChip Semiconductor S.A. disclosed
US$951,917,782 in assets against US$845,903,186 in debts while
MagnaChip Semiconductor B.V. disclosed assets of US$762,465,739
against debts of US$1,800,612,084.


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


PUREDEPTH INC: Realigns R&D Operations in Auckland, New Zealand
---------------------------------------------------------------
PureDepth Inc. reports that on July 23, 2009, it implemented a
restructuring plan to better align resources with its strategic
plans.  The restructuring will result in a realignment and
reduction affecting personnel in its Auckland, New Zealand
offices.

PureDepth maintains three facilities, its U.S. corporate
headquarters in Redwood City, California, its research and
development center in Auckland Zealand and its country office in
Tokyo, Japan.  The facility lease in New Zealand expires on
October 31, 2011.  It has a provision for a second term which, if
exercised, will commence November 1, 2011 and expire October 31,
2014.

For the three months ended April 30, 2009, PureDepth reported net
losses of US$1.7 million which is consistent when compared to the
US$1.5 million reported in the three months ended April 30, 2008.
PureDepth's net losses are primarily derived from total operating
expenses and will continue to be so until its licensing revenues
become significant.  PureDepth's operations have not generated net
income to date and are not expected to do so in the year ending
2010.  In the three months ended April 30, 2009, the company
incurred non-recurring costs and expenses associated with measures
taken to reduce ongoing cost structure.  PureDepth expects total
costs and expenses to be lower in future quarters as a result.

At April 30, 2009, PureDepth had US$9,412,434 in total assets, and
US$16,845,453 in total liabilities, resulting in US$7,433,019 in
stockholders' deficit.

PureDepth, Inc., along with its wholly owned subsidiaries,
PureDepth Limited, PureDepth Incorporated Limited, PureDepth Japan
KK, and predecessor parent entity, Deep Video Imaging Limited,
develops, markets, licenses, and supports multi-layer display
technology.  The Company also sells prototype MLD-enabled display
devices and related components that it manufactures.  The
Company’s technology has application in industries and markets
where LCD monitors and displays are utilized including location
based entertainment, computer monitors, telecommunications, mobile
phones and other hand held devices.


* NEW ZEALAND: Exports Fell 5.4% in June 2009 Quarter
-----------------------------------------------------
The value of seasonally adjusted exports and imports both fell in
the June 2009 quarter, down 5.4% and 3.4%, respectively, the
country's statistics agency said Tuesday.  The falls followed
decreases of 5.0% for exports and 13.7% for imports in the March
2009 quarter, according to Statistics New Zealand.

The fall in seasonally adjusted exports was widespread, with seven
of the top 10 export commodity groupings recording falls in the
June 2009 quarter.  Casein and caseinates recorded the largest
decrease, down 21.9% (NZ$64 million), and milk powder, butter and
cheese also fell, despite significant rises in the quantities
being exported for both these commodity groups.

The fall in seasonally adjusted imports was led by intermediate
goods, down 12.6% (NZ$634 million), followed by consumption goods.
These decreases were partly offset by increases in capital goods,
passenger cars, and petrol and avgas.

The June 2009 quarter included the one-off importation of several
large aircraft valued at NZ$571 million, associated with Jetstar
commencing domestic air services in New Zealand.  Without this
one-off import there would have been a 8.7% decrease in the
seasonally adjusted value of imports for the June 2009 quarter.

According to Statistics New Zealand, the country's seasonally
adjusted trade balance for the June 2009 quarter was a deficit of
NZ$217 million (2.1% of exports), following a nearly nil deficit
(NZ$1 million) in the March 2009 quarter.  Prior to the March 2009
quarter, trade deficits of less than 5% of exports had not been
seen since the first half of 2002.  If it had not been for the
one-off import of several large aircraft during the June month,
the June quarter would have had a seasonally adjusted surplus of
NZ$354 million (3.5% of exports).  The most recent seasonally
adjusted trade surplus was in the December 2001 quarter.

In the month of June 2009, merchandise exports were valued at
NZ$3.2 billion, down 11.0% (NZ$395 million) from June 2008.  When
comparing to the same month of the previous year, this is the
largest decrease for exports since July 2007.  The value of
merchandise imports fell in the June 2009 month, down 5.1% from
June 2008, despite the one-off import of large aircraft mentioned
previously.  The falls in exports and imports in June 2009 follow
rises of 31.2% and 16.9%, respectively, in June 2008.


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


BAYAN TELECOM: SEC Approves Equity Restructuring Plan
-----------------------------------------------------
Bayan Telecommunications, Inc. has secured the Securities and
Exchange Commission's approval for its equity restructuring plan,
BusinessWorld Online reports.

The report, citing documents from the SEC, relates that the
company would use its additional paid-in capital of PHP4.17
billion to reduce its PHP14.43-billion deficit as of December
2008.  According to the report, BayanTel told regulators the plan
would allow it to retain the par value of its shares and the
current level of its authorized capital.

BusinessWorld Online cites Tunde Fafunwa, chief executive
consultant of BayanTel, as saying that the equity restructuring is
to ensure that the company's structure would be conducive to take
advantage of opportunities in the industry.  The equity
restructuring would also allow the company to further expand its
broadband and information technology services, Mr. Fafunwa added.

Mr. Fafunwa, as cited by the report, declined to say how the
company plans to address the remaining deficit, noting only that
it is part of a long-term plan to improve the business.

The regulator approved the restructuring scheme on July 22, while
the company's board of directors gave its green light to the plan
on May 28, the report notes.

Bayan Telecommunications Holdings Corporation, which is 85.4%
owned by Benpres Holdings Corp. and the Lopez Group, was
incorporated on October 15, 1993.  Bayan Telecommunications Inc.
-- http://www.bayantel.com.ph/-- is the operating arm of BTHC
and is formerly known as International Communications
Corporation.  BayanTel is a telecommunications company offering
an extensive breadth of traditional links and circuitry as well
as cutting edge data and voice applications.  BayanTel's
existing service areas in Metro Manila and Bicol, as well as its
local exchange service areas in the Visayas and Mindanao regions
combined, cover a population of over 25 million, nearly 33% of
the population of the Philippines.  BayanTel has operations in
Japan and the U.K.

In a report on Aug. 15, 2007, the Philippine Star said BayanTel
was setting aside PHP760 million to PHP800 million in 2007 to pay
down debt, using internally-generated cash.  BayanTel was placed
into receivership in 2004.

Weighed down by its huge debt, the company sought corporate
rehabilitation with the Pasig City Regional Trial Court in July
2003 to restructure its short-and long-term bank loans and bonds
payable.  The Pasig Regional Trial Court Branch 158 approved the
company's financial rehabilitation on June 28, 2004, based on
sustainable debt level of PHP17.13 billion, payable over 19
years.  According to RTC Judge Rodolfo R. Bonifacio, the
remainder of BayanTel's debt may be converted to another
appropriate instrument that will not be a financial burden to
parent Benpres Holdings Corp.  It also mandated BayanTel to
treat all creditors equally.  Some of BayanTel's creditors have
appealed the lower court decision.


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


ASIAPAC (I & E): Members' Final Meeting Set for August 20
---------------------------------------------------------
The members of Asiapac (I & E) Pte Ltd will hold their final
meeting on August 20, 2009, at 11:00 a.m., at 25 International
Business Park, #04-22/26 German Centre, Singapore 609916.

At the meeting, Steven Tan Chee Chuan and Douglas Tan Kay Yeow,
the company's liquidators, will give a report on the company's
wind-up proceedings and property disposal.


BLACK ICE: Court to Hear Wind-Up Petition on August 7
-----------------------------------------------------
A petition to have Black Ice Capital Pte Ltd's operations wound up
will be heard before the High Court of Singapore on August 7,
2009, at 10:00 a.m.

Phillip Futures Pte Ltd filed the petition against the company on
July 16, 2009.

The Petitioner's solicitors are:

          Messrs Rajah & Tann LLP
          4 Battery Road, #15-01 Bank of China Building
          Singapore 049908


EZY DIAL: Creditors' Proofs of Debt Due on August 17
----------------------------------------------------
Ezy Dial Pte. Ltd, which is in members' liquidation, requires its
creditors to file their proofs of debt by August 17, 2009, to be
included in the company's dividend distribution.

The company's liquidators are:

          Sajjad A. Akhtar
          Chin Sek Peng Michael
          c/o PKF ? CAP Advisory Partners Pte Ltd
          146 Robinson Road #08-01
          Singapore 068909


HAACH PACIFIC: Creditors' Proofs of Debt Due on September 4
-----------------------------------------------------------
Haach Pacific Lifestyle & Wellness Pte Ltd, which is in
liquidation, requires its creditors to file their proofs of debt
by September 4, 2009, to be included in the company's dividend
distribution.

The company's liquidator is:

         Heng Lee Seng
         15 Hoe Chiang Road #12-02 Tower Fifteen
         Singapore 089316


HOCEN INTERNATIONAL: Pays First and Final Dividend
--------------------------------------------------
Hocen International Pte Ltd, which is in compulsory Liquidation,
paid the first and final dividend to its creditors on July 24,
2009.

The company paid 100 cents to a dollar to all received claims.

The company's liquidator is:

          c/o PricewaterhouseCoopers LLP
          8 Cross Street #17-00
          PWC Building
          Singapore 048424


=============
V I E T N A M
=============


DOT VN: Louisa Huynh Names Communications and Biz Dev't Director
----------------------------------------------------------------
Dot VN, Inc., has hired Louisa T. Huynh as the Director of
Communications and Business Development.  Huynh will be
responsible for managing communications, including all internal
and external Vietnamese communications, as well as managing public
relations in Vietnam, assisting in the development of the
Company's communication strategies and developing marketing and
sales campaigns that appeal to the Vietnamese market.

"Ms. Huynh is a highly respected and recognized journalist in
Vietnam," said Thomas Johnson, Chief Executive Officer of Dot VN,
Inc. "While located in the U.S., she will assist in building the
Company's image and communications program. We are very happy to
have her on Dot VN's team."

Ms. Huynh began as a journalist in the VTVNews department of
Vietnam Television's International Channel, VTV4. While at VTV4,
Huynh hosted the first talk show ever to be aired on Vietnamese
television conducted entirely in English.  On Talk Vietnam, Ms.
Huynh interviewed guests of a wide variety, including diplomats,
Nobel Laureates, business development executives and international
superstars.  Her program reached audiences in five continents.

Ms. Huynh also served as a consultant for the Vietnam Chamber of
Commerce and Industry, consulting in matters related to the
preparation of the 2006 APEC Summit in Hanoi, Vietnam.  As a
consultant, Ms. Huynh reviewed press releases and literature
written for the event in addition to taking on duties as emcee for
the 2006 "Doing Business with Vietnam" Forum.

Ms. Huynh has accumulated an expansive portfolio of emcee work.
Some events in which she has hosted include a discussion with Bill
Gates, the 2006 APEC CEO Summit, 2006 Discussion with President
Bill Clinton and the 100 ASEAN Leadership Forum.

Ms. Huynh graduated with a degree in Journalism from New York
University.

                         About Dot VN, Inc.

Dot VN, Inc. (OTC: DTVI.PK) -- http://www.dotvn.com-- offers
Internet services and related online business e-commerce services
in Vietnam and internationally.

At January 31, 2009, the company's balance sheet showed total
assets of US$2,192,062 and total liabilities (all current) of
US$11,436,827 resulting in a shareholders' deficit of
US$9,244,765.

                        Going Concern Doubt

As reported in the Troubled Company Reporter on Sept. 23, 2008,
Chang G. Park, CPA, from San Diego, California, expressed on
Sept. 10, 2008, substantial doubt about Dot VN Inc.'s ability to
continue as a going concern after auditing the company's condensed
consolidated balance sheet as of July 31, 2008.  The auditing firm
reported that the company experienced losses from operations.

The auditor said the company has had limited revenues due to
the early stage of its efforts to transition into the marketing of
its Internet resources.  Consequently, the company has incurred
recurring losses from operations.  These factors, as well as the
risks associated with raising capital through the issuance of
equity and debt securities creates uncertainty as to the company's
ability to continue as a going concern, the auditor continued.


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


LEAR CORP: Canada Units Obtain CCAA Stay Order
----------------------------------------------
The Honorable Madam Justice Sarah Pepall of the Ontario Superior
Court of Justice, Commercial List, has recognized the proceedings
commenced by Lear Canada, Lear Canada Investments Ltd., Lear
Canada Corporation Ltd., and the non-Canadian applicants as a
"foreign proceeding" as defined in Subsection 18.6.1 of the
Companies' Creditors Arrangement Act.  The Canadian Court also
recognized all the Orders entered by the U.S. Bankruptcy Court
for the Southern District of New York.

Madam Justice Pepall stayed all proceedings, actions and suits
against the Applicants or their property through August 7, 2009.
During the Stay Period, the Canadian Court prohibits all persons
from discontinuing, altering, interfering with, repudiating,
ceasing to perform any right, renewal right, contract agreement,
license or permit in favor of the Applicants, except with the
written consent of the Applicants, or leave of the Canadian
Court.

The lending institutions led by J.P. Morgan Chase Bank N.A.,
acting as general administrative agent under the Credit
Agreement, will not be obligated to advance or re-advance any
amount or otherwise extend any credit to the Applicants under the
Credit Agreement.

Moreover, Madam Justice Pepall prohibits the Canadian Applicants
from:

  * making any advances or transfers of funds to any of the
    Applicants or any of their affiliates by way of loan or
    otherwise except that the Canadian Applicants may pay for
    goods or services in the ordinary course of business and in
    accordance with existing practices;

  * granting security or otherwise encumber or release the
    Property, including by way of incurring indebtedness to
    other Applicants as permitted by the Cash Management Order,
    except in respect of the purchase of goods or services in
    the ordinary course of business and in accordance with
    existing practices; and

  * paying current service and special payments as required
    under the Pension Benefits Act in respect of its facilities
    at Ajax, St., Thomas, Kitchener and Whitby and its former
    facilities at Maple.

The Canadian Court held that during the Stay Period, no
proceeding may be commenced or continued against any of the
former, current or future directors or officers of the Canadian
Applicants with respect to any claim that arose before July 9,
2009 and that relates to any obligations of the Canadian
Applicants whereby the directors or officers are alleged under
any law to be liable in their capacity as directors or officers
for the payment or performance of those obligations, until the
later of the termination of the CCAA proceeding or the U.S.
Proceedings, or until further order of the Canadian Court.

Madam Justice Pepall has directed the Canadian Applicants to
indemnify their directors and officers from all claims, costs,
charges and expenses in respect of any liabilities and
obligations that arise or are incurred, after July 9, 2009, in
relation to their capacities as directors.  The directors and
officers of the Canadian Applicants are granted a charge on the
Property, which charge will not exceed $9,000,000, as security
for the indemnity.

The Canadian Court also appointed RSM Richter Inc., as the
Canadian Applicants' information officer.

RSM Richter, counsel to RSM Richter and Canadian Applicants'
counsel to the Applicants will be paid by the Applicants as part
of the costs of the CCAA proceeding on a monthly basis.  The
Information Officer, counsel to the Information Officer and the
Applicants' Canadian counsel are granted a charge on the
Property, which charge will not exceed $750,000 as security for
their professional fees and disbursements incurred at normal
rates and charges.

Furthermore, the Canadian Court authorized the Applicants to
retain McCarthy Tetrault LLP as their counsel.

Lear Canada Investments Ltd., Lear Corporation Canada Ltd., are
each wholly-owned indirect subsidiaries of Lear Corporation.
Both Lear Canada Investments and Lear Corporation Canada are
corporations incorporated pursuant to the laws of Alberta.

As of May 31, 2009, Lear Canada had total liabilities of
$54,000,000.  The May Financials show that for the year to date
in 2009, Lear Canada has a net loss of $66,000,000 on total sales
of about $115,000,000.  Lear Canada's balance sheet includes an
intercompany loan payable to Lear Canada by its parent Lear
Corporation of approximately $82,000,000 as of May 31, 2009.

Due to the integration of Lear's North American operations and
the commencement of the U.S. Proceedings, the Applicants believe
it is necessary to obtain recognition of the US Proceedings as
Foreign Proceedings in Canada.

                         About Lear Corp.

Lear Corporation -- http://www.lear.com/-- is one of the world's
leading suppliers of automotive seating systems, electrical
distribution systems and electronic products.  The Company's
products are designed, engineered and manufactured by a diverse
team of 80,000 employees at 210 facilities in 36 countries.
Lear's headquarters are in Southfield, Michigan, and Lear is
traded on the New York Stock Exchange under the symbol [LEA].
Outside the United States, Lear has subsidiaries in Germany,
Luxembourg, Sweden, Singapore, China, India and Mexico, among
others.

Lear Corporation and its affiliates filed for Chapter 11 on
July 7, 2009 (Bankr. S.D.N.Y. Case No. 09-14326).  Affiliates part
of the Chapter 11 filing include Lear South Africa Limited, Lear
Corporation (Germany) Ltd., Lear Corporation Canada Ltd., Lear
Mexican Holdings Corporation, and Lear South American Holdings
Corporation.

Attorneys at Kirkland & Ellis LLP, serve as the Debtors'
bankruptcy counsel.  McCarthy Tetrault LLP has been engaged as
CCAA counsel.  Bodman LLP has been hired as special Michigan
counsel.  Winston & Strawn LLP and Brooks Kushman P.C. have also
been tappes as special counsel.  Alvarez & Marsal North America
LLC, is the Debtors' restrcturing advisors.  Ernst & Young LLP is
the Debtors' auditors and tax advisors.  Kurtzman Carson
Consultants LLC is the Debtors' claims and notice agent.  Simpson
Thacher & Bartlett LLP represents JP Morgan, as admin. agent for
senior secured lenders and DIP lenders.

As of May 30, 2009, Lear has assets of US$1,270,800,000 against
debts of US$4,536,000,000.

Bankruptcy Creditors' Service, Inc., publishes Lear Bankruptcy
News.  The newsletter tracks the Chapter 11 proceedings undertaken
by Lear Corp. (http://bankrupt.com/newsstand/or 215/945-7000)


* Last Week's 3 Defaults Raise S&P Tally to 184
-----------------------------------------------
Three global corporate issuers defaulted in the week of July 17,
bringing the 2009 year-to-date tally to 184 issuers -- nearly 4x
the 48 defaults at this time in 2008, said an article published
July 24 by Standard & Poor's, titled "Global Corporate Default
Update (July 17 - 23, 2009) (Premium)."

The three defaults were spread equally among the U.S., Europe,
and the emerging markets, bringing the default tallies by region
to 131 issuers in the U.S., 10 in Europe, 31 in the emerging
markets, and 12 in the other developed region (Australia, Canada,
Japan, and New Zealand).

"All three defaults this week were the results of distressed
exchanges, upping the distressed exchange tally to 54 issuers so
far this year," said Diane Vazza, head of Standard & Poor's Global
Fixed Income Research Group.

"Distressed exchanges have surged this year, with the midyear 2009
tally at more than 3x the full-year 2008 total and almost 14x the
count of four issuers in 2007."

Bankruptcy filings remain at 51 issuers, which is more than the
full-year 2008 total of 49 bankruptcy-related defaults.  The sharp
increase in corporate bankruptcies brings with it significant
difficulties to private equity investors, particularly for those
whose buyout activities in the past several years placed much of
their risks squarely in the speculative-grade domain.

Indeed, more than half of the defaulters this year either had or
continue to have private equity involvement, which presents both
challenges and opportunities to private equity investors during
restructuring and reorganization.

Of the global corporate defaulters so far this year, 41% of issues
with available recovery ratings had recovery ratings of '6'
(indicating our expectation for negligible recovery of 0%-10%),
17% of issues had recovery ratings of '5' (modest recovery
prospects of 10%-30%), 12% had recovery ratings of '4' (average
recovery prospects of 30%-50%), and 10% had recovery ratings of
'3' (meaningful recovery prospects of 50%-70%).  And for the
remaining two rating categories, 12% of issues had recovery
ratings of '2' (substantial recovery prospects of 70%-90%) and 8%
of issues had recovery ratings of '1' (very high recovery
prospects of 90%-100%).

The precipitous increase in defaults reflects a pronounced decline
in economic fundamentals and earnings prospects, as well as the
continued unfavorable environment for the lowest rungs of the
ratings latter, effectively halting lending to low-rated
speculative-grade borrowers.  A large number of defaults likely
will be concentrated in the first two or three quarters of 2009 as
a result of these factors, coupled with distressed exchange
offers.  Four other factors make the current environment more
conducive to defaults: deep recessionary conditions in the U.S., a
record-high proportion of issuers with speculative-grade ratings,
the highest volume of low-rated issuance since 2003, and the
seasoning of much of the debt rated 'B-' or lower issued in the
past several years.

Because of these factors, our current 12-month-trailing U.S.
corporate speculative-grade default rate forecast is 13.9% by mid-
2010, with a pessimistic scenario of 18% and an optimistic
scenario of 11.4%.

This article is part of S&P's premium Global Fixed Income Research
content, which is available to premium subscribers to
RatingsDirect, at http://www.ratingsdirect.com/ Ratings
information can also be found on Standard & Poor's public Web site
at http://www.standardandpoors.com/; under Ratings in the left
navigation bar, select Find a Rating. Members of the media may
request a copy of this report by contacting the media
representative provided.

Global Fixed Income Research:
    Diane Vazza, New York
    (1) 212-438-2760;
    diane_vazza@standardandpoors.com

Media Contact:
    Mimi Barker, New York
    (1) 212-438-5054;
    mimi_barker@standardandpoors.com


* Weakest Links Ease to 285 as Defaults Mount, S&P Article Says
---------------------------------------------------------------
The number of global weakest links continued to decline to 285 as
of July 17, 2009, from 290 in June and a record high of 300 in
April.  The decline was largely attributable to the sharp rise
in defaults, many of which were weakest links, said an article
published July 27 by Standard & Poor's.

"This is a trend that likely will continue for some time," said
Diane Vazza, head of Standard & Poor's Global Fixed Income
Research Group.  "Eroding credit quality leads to lower ratings
and more entities with negative outlooks or with ratings on
CreditWatch with negative implications as well as increased
vulnerability to default."

The 285 weakest links have combined rated debt worth
$397.8 billion.  By sector, media and entertainment, forest
products and building materials, and retail and restaurants were
the most vulnerable, with the highest concentrations of weakest
links, according to the article, titled "Global Bond
Markets' Weakest Links And Monthly Default Rates (Premium)."

Weakest links are defined as issuers rated 'B-' or lower with
either a negative outlook or with ratings on CreditWatch with
negative implications, and they are at greater risk of default.
Corporate defaults continue to rise rapidly in 2009, already
surpassing the number in all of 2008.  Through July 17, 2009, 179
issuers defaulted, affecting debt worth $424.44 billion. By
comparison, 126 defaults were recorded in all of 2008, affecting
debt worth $433 billion.

The 12-month-trailing global corporate speculative-grade bond
default rate increased to 8.25% in June 2009 from 7.3% in May and
is now more than 10x the 25-year low of 0.79% recorded in November
2007.

The standard version of this article is part of S&P's standard
Global Fixed Income Research content.  The premium version
contains expanded analysis of the article's most significant
points, typically broken out by sector and region.

Also in the premium version are in-depth charts and tables, the
underlying data of which are available for download.  Ratings
information can also be found on Standard & Poor's public Web site
at www.standardandpoors.com; under Ratings in the left navigation
bar, select Find a Rating.  Members of the media may request a
copy of this report by contacting the media representative
provided.

Global Fixed Income Research:
    Diane Vazza, New York
    (1) 212-438-2760;
    diane_vazza@standardandpoors.com

Media Contact:
    Mimi Barker, New York
    (1) 212-438-5054;
    mimi_barker@standardandpoors.com


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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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


                         *********

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

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

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


                            *********


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

Troubled Company Reporter-Asia Pacific is a daily newsletter co-
published by Bankruptcy Creditors' Service, Inc., Fairless
Hills, Pennsylvania, USA, and Beard Group, Inc., Frederick,
Maryland, USA.  Valerie C. Udtuhan, Marites O. Claro,
Rousel Elaine C. Tumanda, Joy A. Agravante, 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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