TCRAP_Public/090820.mbx         T R O U B L E D   C O M P A N Y   R E P O R T E R

                     A S I A   P A C I F I C

           Thursday, August 20, 2009, Vol. 12, No. 164

                            Headlines

A U S T R A L I A

GOODMAN GROUP: Sells Stake in NZ Trust for NZ$88.4 Million
LEHMAN BROTHERS: Australia-Based Hyro Settles With Liquidators
PARMALAT SPA: ACCC Approves US$70 Million Australian Expansion
STORM FINANCIAL: ASIC Defends Role in Firm's Collapse
STORM FINANCIAL: ANZ Admits Breach on Lending Policies


C H I N A

CHINA MINSHENG: Gets Regulatory Approval for HK Share Sale


H O N G  K O N G

ANTEX ELECTRONIC: Creditors and Contributories to Meet on Aug. 22
BIG RESOURCES: Creditors' Proofs of Debt Due on August 28
CITIC PACIFIC: Cathay Stake Sale Won't Affect Moody's 'Ba1' Rating
CITIC PACIFIC: Planned Sale Won't Affect S&P's 'BB+' Rating
FIRST INK: Court Enters Wind-Up Order

MEYCO INTERNATIONAL: Court Enters Wind-Up Order
ZFRICTION LIMITED: Court Enters Wind-Up Order


I N D I A

ACTION GINNI: ICRA Puts 'LBB' Rating on INR20MM Fund Based Limits
ANGEL BABY: CRISIL Rates INR150 Million Term Loan at 'BB-'
MAHENDRA EXPORTS: ICRA Reaffirms 'LBB+' on INR351.4MM Term Loans
NANDED COOP BANK: RBI Rejects Gov't. Plan to Reopen Bank
RK VICTUALS: CRISIL Places 'B+' Rating on INR185 Million Term Loan

SWASTI POWER: Default on Loan Payment Cues CRISIL 'D' Rating
VIRENDRA & CO.: Low Net Worth Prompts CRISIL 'BB' Ratings
WINDLASS ENGINEERS: CRISIL Rates INR44.6 Million Term Loan at 'B+'


I N D O N E S I A

KERTAS KRAFT: Liquidation Plan Maybe Cancelled as Aceh Mulls Aid


J A P A N

JAPAN AIRLINES: Int'l. Traffic Down 4.5% on Summer Vacation
JAPAN AIRLINES: Japan Gov't. to Set Up Restructure Panel
JLOC XXIV: S&P Downgrades Ratings on Class C Certificates
L-JAC THREE: S&P Downgrades Ratings on Various Classes of Notes
ORIX-NRL TRUST: S&P Downgrades Ratings on Various Classes

TOSHIBA CORP: Unit to Check Over 82,000 Washer-Dryers
XANADEUX: Goes Belly-Up Amid Declining Film Distributor Market


M A L A Y S I A

TIME ENGINEERING: Posts MYR8.73M Net Income in Qtr Ended June 30


N I G E R I A

INTERCONTINENTAL BANK: S&P Downgrades Counterparty Rating to 'B'


P H I L I P P I N E S

NATIONAL POWER: Fitch Affirms 'BB' Rating on US$500 Mil. Notes


S I N G A P O R E

CONTIPAC SHIPPING: Pays First and Final Dividend
JURONG TECHNOLOGIES: Posts SG$502.33 Million Net Loss for FY2008


S O U T H  A F R I C A

FINTECH RECEIVABLES: Fitch Assigns 'BB+' Rating on Class E Notes


T A I W A N

SPANSION INC: Suspends Memorandum of Understanding With ASE


V I E T N A M

JOINT STOCK: Fitch Puts 'D' Individual Rating on Negative Watch


                         - - - - -


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


GOODMAN GROUP: Sells Stake in NZ Trust for NZ$88.4 Million
----------------------------------------------------------
Goodman Group has sold down its stake in its New Zealand
operations for about NZ$88.4 million, Carolyn Cummins at The
Sydney Morning Herald reports.

The deal, which was revealed by BusinessDay in June, will see
Goodman's interest drop from 28% to 17% with the completed sale of
93 million units to a number of institutional investors at NZ$0.95
per unit, the report said.

According to the Herald, Goodman Group chief executive, Greg
Goodman, said the 17% holding in Goodman Property Trust was a
long-term investment position and was in line with the group's
strategy of keeping investments at a level of 15-20% in the
group's funds.

"The group's interests continue to be aligned with those of its
investors through the retention of a significant cornerstone
investment.  The sell-down will assist Goodman to pursue its core
operation of owning, developing and managing industrial property
and business space in its key markets," the report quoted
Mr. Goodman as saying.

Mr. Goodman said the sale follows the recent announcement of the
group's $1.8 billion capital raising and further demonstrates
continued strong investor confidence and support in GMT and the
group's managed fund platform.

                        About Goodman Group

Goodman Group (ASX:GMG) -- http://www.goodman.com/-- is engaged
in fund management, property services, development management and
investment in directly and indirectly held industrial property.
The Company is based in Australia and has operations in Asia
Pacific (primarily Australia, New Zealand, Hong Kong, People's
Republic of China and Japan) and Europe.  On December 17, 2007, it
sold a 50% equity interest in Highbrook Developments Limited (HDL)
to Goodman Property Trust.  On March 27, 2008, it completed the
disposal of its 40% interest in Ascendas MGM Funds Management
Limited (AMFM) and also sold its 6.8% stake in Ascendas Real
Estate Investment Trust (A-REIT).  On May 31, 2008, the Company
sold its investment in Goodman Property Investors Limited (GPI).

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Aug. 10, 2009, Moody's Investors Service said it is maintaining
its review for possible downgrade on Goodman Group's Baa3 issuer
and senior unsecured ratings.  It is also continuing its review
for possible downgrade on the subordinated "Ba1" rating on
Goodman's hybrid securities.  The review will be concluded upon
the successful completion of the recapitalization.

This follows Goodman's announcement of its capital management plan
-- which involves the issuance of an underwritten equity of
AU$1.3 billion and preference securities of AU$500 million -- and
its extension of debt at the headstock as well as the managed
funds.


LEHMAN BROTHERS: Australia-Based Hyro Settles With Liquidators
--------------------------------------------------------------
Hyro Limited said in a statement it has discharged its
AU$20,000,000 convertible note and associated interest
obligations, after reaching a settlement with the liquidators of
Lehman Brothers Commercial Corporation Asia Limited, the
liquidators of Lehman Brothers Asia Holdings Limited and the
administrators of Lehman Brothers International (Europe)
which includes release of all fixed and floating charges over
Hyro's business.

Hyro had previously reached a binding agreement with the
liquidators of LBCCAL in October 2008.

Disagreement emerged, however, between KPMG, as liquidators of
Hong Kong-based LBCCAL, and PriceWaterhouseCoopers, as
administrators of UK-based LBIE, over which Lehman Brothers entity
was the legal and beneficial owner of the convertible notes.

The settlement positions Hyro to move forward with its plans for
pursuing growth opportunities in the digital services market.

Hyro Chairman, Rob Clarke said "This transaction is the
culmination of a sustained negotiation led by Hyro CEO, Bill
Votsaris.  The reduction in debt leaves Hyro in a significantly
better position to execute its growth strategy in one of the
fastest growing and commercially important industries in Australia
and Asia."

"We are glad to have brought the negotiations to a successful
conclusion," says Hyro CEO, Bill Votsaris.  "By agreeing to move
to an equity position, the administrators of Lehman Brothers
International (Europe) have given the company a significant vote
of confidence. We are very happy to have Lehman Brothers on our
share register."

"We started 2009 with a clear vision for Hyro as Australia's only,
truly native digital services company, capable of providing
enterprise clients with customer experience, technology and
managed services.  Finalising our equity deal with Lehman Brothers
has removed the constraints we've had in putting our growth plans
into action," Votsaris said.

Pursuant to the settlement, Hyro is released from all current and
future liabilities with respect to the convertible notes, with the
effect that:

    * Repayment of the AU$20 million of convertible notes is no
      longer required;

    * Interest totalling AU$4.125 million (being AU$3.7 million
      current and AU$425,000 future interest) no longer needs to
      be paid; and

    * The fixed and floating charges over the Hyro group of
      companies have been removed.

In return for these agreed terms, Hyro has provided:

     * Cash payment of AU$1.2 million; and

     * An allocation of 107,000,000 fully paid ordinary shares in
       Hyro Limited to LBIE.

This allocation, made on August 6th, ensured that the total number
of shares issued to the administrators of LBIE was roughly 17% of
Hyro's post dilution share capital.

Founded in 1994, Hyro is Australia's oldest Digital Services
company.  Hyro provides digital, technical and managed services to
the enterprise and government sectors across Australia, New
Zealand and Asia.  This end-to-end capability uniquely positions
Hyro in the Australian marketplace with its ability to understand
the issues in transforming innovative business strategies
and creative concepts into working technical solutions.

                     About Lehman Brothers

Lehman Brothers Holdings Inc. -- http://www.lehman.com/-- was the
fourth largest investment bank in the United States.  For more
than 150 years, Lehman Brothers has been a leader in the global
financial markets by serving the financial needs of corporations,
governmental units, institutional clients and individuals
worldwide.

Lehman Brothers filed for Chapter 11 bankruptcy September 15, 2008
(Bankr. S.D.N.Y. Case No. 08-13555).  Lehman's bankruptcy petition
listed $639 billion in assets and $613 billion in debts,
effectively making the firm's bankruptcy filing the largest in
U.S. history.  Several other affiliates followed thereafter.

The Debtors' bankruptcy cases are handled by Judge James M. Peck.
Harvey R. Miller, Esq., Richard P. Krasnow, Esq., Lori R. Fife,
Esq., Shai Y. Waisman, Esq., and Jacqueline Marcus, Esq., at Weil,
Gotshal & Manges, LLP, in New York, represent Lehman.  Epiq
Bankruptcy Solutions serves as claims and noticing agent.

On September 19, 2008, the Honorable Gerard E. Lynch, Judge of the
U.S. District Court for the Southern District of New York, entered
an order commencing liquidation of Lehman Brothers, Inc., pursuant
to the provisions of the Securities Investor Protection Act (Case
No. 08-CIV-8119 (GEL)).  James W. Giddens has been appointed as
trustee for the SIPA liquidation of the business of LBI

The Bankruptcy Court has approved Barclays Bank Plc's purchase of
Lehman Brothers' North American investment banking and capital
markets operations and supporting infrastructure for US$1.75
billion.  Nomura Holdings Inc., the largest brokerage house in
Japan, purchased LBHI's operations in Europe for $2 dollars plus
the retention of most of employees.  Nomura also bought Lehman's
operations in the Asia Pacific for US$225 million.

              International Operations Collapse

Lehman Brothers International (Europe), the principal UK trading
company in the Lehman group, was placed into administration,
together with Lehman Brothers Ltd, LB Holdings PLC and LB UK RE
Holdings Ltd.  Tony Lomas, Steven Pearson, Dan Schwarzmann and
Mike Jervis, partners at PricewaterhouseCoopers LLP, have been
appointed as joint administrators to Lehman Brothers International
(Europe) on September 15, 2008.  The joint administrators have
been appointed to wind down the business.

Lehman Brothers Japan Inc. and Lehman Brothers Holdings Japan Inc.
filed for bankruptcy in the Tokyo District Court on September 16.
Lehman Brothers Japan Inc. reported about JPY3.4 trillion (US$33
billion) in liabilities in its petition.

Bankruptcy Creditors' Service, Inc., publishes Lehman Brothers
Bankruptcy News.  The newsletter tracks the Chapter 11 proceeding
undertaken by Lehman Brothers Holdings, Inc., and its various
affiliates. (http://bankrupt.com/newsstand/or 215/945-7000)


PARMALAT SPA: ACCC Approves US$70 Million Australian Expansion
--------------------------------------------------------------
The Australian Competition and Consumer Commission has approved
Parmalat's proposed US$70,000,000 purchase of certain dairy assets
held by National Foods Limited, the Australian Food News reported
on June 25, 2009.

Parmalat confirmed on July 27, 2009, that its Australian
subsidiary, Parmalat Food Products Pty, Ltd., completed the
acquisition from National Foods Limited of fresh milk businesses
in New South Wales and South Australia.

Daniel Palmer of AFN said that as a result to the transaction,
Parmalat's presence down under will increase, adding 26% to
Parmalat's revenue from Australian operations.

Among the assets that Parmalat will acquire are 12 National Foods
depots, 13 Dairy Farmers depots in South Australia and the
Lidcombe processing plant.

                    About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than
US$200 million in assets and debts.  The U.S. Debtors emerged from
bankruptcy on April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
Jan. 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presides over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.

                    About Parmalat S.p.A.

Headquartered in Milan, Italy, Parmalat S.p.A.
-- http://www.parmalat.net/-- sells nameplate milk products
that can be stored at room temperature for months.  It also has
about 40 brand product lines, which include yogurt, cheese,
butter, cakes and cookies, breads, pizza, snack foods and
vegetable sauces, soups and juices.

The Company's U.S. operations filed for Chapter 11 protection on
February 24, 2004 (Bankr. S.D.N.Y. Case No. 04-11139).  Gary
Holtzer, Esq., and Marcia L. Goldstein, Esq., at Weil Gotshal &
Manges LLP, represent the Debtors.  When the U.S. Debtors filed
for bankruptcy protection, they reported more than US$200 million
in assets and debts.  The U.S. Debtors emerged from bankruptcy on
April 13, 2005.

Parmalat S.p.A. and its Italian affiliates filed separate
petitions for Extraordinary Administration before the Italian
Ministry of Productive Activities and the Civil and Criminal
District Court of the City of Parma, Italy on December 24, 2003.
Dr. Enrico Bondi was appointed Extraordinary Commissioner in
each of the cases.  The Parma Court has declared the units
insolvent.

On June 22, 2004, Dr. Bondi filed a Sec. 304 Petition, Case No.
04-14268, in the United States Bankruptcy Court for the Southern
District of New York.

Parmalat has three financing arms: Dairy Holdings Ltd., Parmalat
Capital Finance Ltd., and Food Holdings Ltd.  Dairy Holdings and
Food Holdings are Cayman Island special-purpose vehicles
established by Parmalat S.p.A.  The Finance Companies are under
separate winding up petitions before the Grand Court of the Cayman
Islands.  Gordon I. MacRae and James Cleaver of Kroll (Cayman)
Ltd. serve as Joint Provisional Liquidators in the cases.  On
January 20, 2004, the Liquidators filed Sec. 304 petition, Case
No. 04-10362, in the United States Bankruptcy Court for the
Southern District of New York.  In May 2006, the Cayman Island
Court appointed Messrs. MacRae and Cleaver as Joint Official
Liquidators.  Gregory M. Petrick, Esq., at Cadwalader, Wickersham
& Taft LLP, and Richard I. Janvey, Esq., at Janvey, Gordon,
Herlands Randolph, represent the Finance Companies in the Sec. 304
case.

The Honorable Robert D. Drain presides over the Parmalat Debtors'
U.S. cases.  On June 21, 2007, the U.S. Court granted Parmalat
permanent injunction.


STORM FINANCIAL: ASIC Defends Role in Firm's Collapse
-----------------------------------------------------
The Australian Securities & Investments Commission defended its
role in dealing with the collapse of Storm Financial Limited, The
Australian Associated Press reports.

Citing ASIC in a submission to a federal parliamentary inquiry
into the collapse, the AAP relates that the corporate watchdog
rejected criticism it could have taken action earlier.

"Criticism has been levelled at ASIC that it should have done more
to prevent the collapse of Storm . . . ASIC rejects those
criticisms," the report cited ASIC as saying in its submission.

According to the AAP, ASIC said "prior to 2006, there were
communications between ASIC, Storm and its officers based on
routine ASIC surveillance in Queensland on financial planners".
But "financial disclosure matters" that arose at that time were
resolved, the AAP notes.

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.


STORM FINANCIAL: ANZ Admits Breach on Lending Policies
------------------------------------------------------
The Sydney Morning Herald reported that the Australia and New
Zealand Banking Group has joined the Commonwealth Bank of
Australia in admitting that its lending to clients of Storm
Financial Ltd breached its own policies.

The bank's involvement with Storm is not as deep as the
Commonwealth's, but marks a second troubled relationship for the
ANZ on the back of its links with Opes Prime, the report said.

The Herald, citing ANZ in a submission to a government inquiry,
relates that ANZ had identified about 160 customers who had
borrowed from the bank through Storm.

"We have determined that the lending decisions for a small number
of customers did not comply with ANZ's credit policies and we are
undertaking further review to assess whether others could also be
in that group," the report cited ANZ's submission to the Joint
Committee on Corporations and Financial Services.

The report notes that the bank, however, said it did not have a
formal business relationship with Storm.  According to the Herald,
ANZ rejected overtures from Storm in November 2007 for closer
links, on the basis that the financial adviser's approach to
lending did not match the bank's.

The submission, as cited by the report, said ANZ has set up a
hardship team to work with Storm customers and was offering
interest-free loans and deferred payments to some.

                      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.


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C H I N A
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CHINA MINSHENG: Gets Regulatory Approval for HK Share Sale
----------------------------------------------------------
China Minsheng Banking Corp. won initial approval from China's
securities regulator to revive a first-time share sale in
Hong Kong after shelving the plan for four years, Bloomberg News
reports.

The China Securities Regulatory Commission accepted the
application on August 18 after examining the sale documents,
Bloomberg related citing China Minsheng in a statement.

The share sale is yet to be approved by regulators in Hong Kong,
the report says.

Minsheng yesterday reported a 22 percent increase in first-half
profit on investment gains. The bank aims to boost net income by
35 percent this year after growth slowed to 25 percent in 2008,
the weakest since its initial public offering in Shanghai in 2000.

Minsheng's capital adequacy ratio, a key measure of financial
strength, stood at 8.48 percent at the end of June, down from 9.22
percent at Dec. 31.

Based in Beijing, China, China Minsheng Banking Corporation Ltd.'s
mainly provides commercial banking services that include absorbing
public deposits, providing short term, medium term, and long term
loans, making domestic and international settlement, discounting
bills and issuing financial bonds.

                          *     *     *

China Minsheng Banking Corporation Ltd continues to carry Fitch
Ratings' individual rating of "D" and support rating at "3".


================
H O N G  K O N G
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ANTEX ELECTRONIC: Creditors and Contributories to Meet on Aug. 22
-----------------------------------------------------------------
The creditors and contributories of Antex Electronic Systems Co.,
Limited will hold a meeting on August 22, 2009, at 11:00 a.m. and
11:30 a.m., respectively, at Room 203 of Duke of Windsor Social
Service Building, 15 Hennessy Road, in Wanchai, Hong Kong.


BIG RESOURCES: Creditors' Proofs of Debt Due on August 28
---------------------------------------------------------
The creditors of Big Resources Industries Limited are required to
file their proofs of debt by August 28, 2009, to be included in
the company's dividend distribution.

The company's liquidators are:

         Desmond Chung Seng Chiong
         Roderick John Sutton
         The Hong Kong Club Building, 14th Floor
         3A Chater Road
         Central, Hong Kong


CITIC PACIFIC: Cathay Stake Sale Won't Affect Moody's 'Ba1' Rating
------------------------------------------------------------------
Moody's Investors Service sees no immediate impact on the Ba1
corporate family rating of CITIC Pacific Ltd. and the Ba1 bond
rating of CITIC Pacific Finance (2001) Ltd after the announced
sale of CITIC Pacific's 14.5% stake in Cathay Pacific Airways Ltd
for about HK$7.3 billion.  The outlook on these ratings remains
negative.

"The sales proceeds will help CITIC Pacific better manage, albeit
slightly, the deterioration evident in its credit profile over the
last few years, but the action is not sufficient -- at this stage
-- to affect its ratings and outlook," says Elizabeth Allen, a
Moody's Vice President & Senior Credit Officer.

"CITIC Pacific's underlying business risk profile had risen and
its operating fundamentals remain very challenging, while its
credit metrics are also weak for its rating," adds Allen.

"The sale of the stake in Cathay is consistent with CITIC
Pacific's strategy of focusing on core operations and disposing of
non-core assets," says Allen, adding, "Aviation was identified as
non-core some time ago."

As indicated, CITIC Pacific's financial profile will remain under
pressure -- despite this asset sale -- with adjusted debt at
HK$76 billion as of December 2008.  This situation translates into
debt/capitalization of 57% and FFO/Debt in the low single digits.

Moody's views such ratio levels as weak, especially in the context
of CITIC Pacific's relatively volatile key businesses of specialty
steel manufacturing, iron-ore mining and property development in
China.

On the other hand, the company maintains a good liquidity profile
with adequate cash and undrawn committed facilities available.  It
also has a balanced debt maturity profile.

In addition, the Cathay sale will enhance its liquidity position
as it continues to go through its peak investment period.  In
particular, its Sino Iron project in Western Australia still
requires significant investments before becoming operational in
2H2010.

The Ba1 rating continues to reflect CITIC Pacific's linkages to
and potential support from CITIC Group (Baa2/negative) -- and
which results in its rating being 2 notches higher than it would
otherwise be.

The negative rating outlook reflects CITIC Pacific's modest level
of cash flow generation and increasing leverage as it goes through
its investment cycle.  It further captures the company's business
risk exposure as well as the uncertainties associated with its
medium-term business direction in view of changes in top
management in April 2009.

The last rating action with respect to CITIC Pacific was on
February 17, 2009 when the rating was upgraded from Ba2 to Ba1
with a negative outlook after CITIC Group's ownership in CITIC
Pacific increased from 29% to 57.6%.

CITIC Pacific Ltd, listed in Hong Kong, is a conglomerate 57.6%
owned by CITIC Group.  It is engaged in a range of businesses,
including specialty steel manufacturing, iron-ore mining, property
development and investment, power generation, infrastructure,
communications and distribution.

CITIC Group, headquartered in Beijing, is a conglomerate
investment company wholly owned by the State Council of the
Chinese government.


CITIC PACIFIC: Planned Sale Won't Affect S&P's 'BB+' Rating
-----------------------------------------------------------
Standard & Poor's Ratings Services said that its rating on CITIC
Pacific Ltd. (BB+/Stable/--) was not immediately affected by the
company's plan to sell 12.5% and 2% of its stake in Cathay Pacific
Airways Ltd. (not rated) to Air China Ltd. (not rated) and Swire
Pacific Ltd. (A-/Stable/--), respectively, for a total
consideration of about Hong Kong dollar (HK$) 7.3 billion.  In
S&P's view, although the proceeds from the disposal will improve
CITIC Pacific's liquidity position, its credit profile is unlikely
to change materially as the company's core businesses--iron ore,
special steel and real estate in China--still require high capital
expenditure in the coming year.  S&P expects the company's debt
leverage, as measured by a ratio of total debt to total capital,
to remain at about 50%.  CITIC Pacific also continues to generate
negative free operating cash flow after capex.

The rating on CITIC Pacific is based on the company's standalone
credit quality and the benefits it derives from being
strategically important to the wider CITIC Group, which owns
57.56% of the company.


FIRST INK: Court Enters Wind-Up Order
-------------------------------------
On August 3, 2009, the High Court of Hong Kong entered an order to
wind up the operations of First Ink Manufacturing Limited.

Yu Tak Yee Beryl and Choi Tze Kit Sammy were appointed as the
company's liquidators.


MEYCO INTERNATIONAL: Court Enters Wind-Up Order
-----------------------------------------------
On June 26, 2009, the High Court of Hong Kong entered an order to
wind up the operations of Meyco International Industrial Limited.

Yu Tak Yee Beryl and Choi Tze Kit Sammy were appointed as the
company's liquidators.


ZFRICTION LIMITED: Court Enters Wind-Up Order
---------------------------------------------
On June 18, 2009, the High Court of Hong Kong entered an order to
wind up the operations of Zfriction Limited.

Yu Tak Yee Beryl and Choi Tze Kit Sammy were appointed as the
company's liquidators.


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


ACTION GINNI: ICRA Puts 'LBB' Rating on INR20MM Fund Based Limits
-----------------------------------------------------------------
ICRA has assigned an 'LBB' rating to INR20 million fund based
limits and INR240 million term loan of Action Ginni Devi Cancer
Hospital.  This is the inadequate-credit-quality rating assigned
by ICRA.

The rating takes into account high competitive intensity in the
National Capital Region (NCR) which is expected to increase
further as significant hospital room supply is planned in the
short to medium term; the possibility of time and cost overruns in
the project and the fact that the hospital has still to enter into
contract with reputed medical practitioners and consultants.
Nevertheless, the rating derives comfort from support provided by
Sri Balaji Action Medical Institute (rated LBBB- by ICRA) for its
oncology facilities, demonstrated support from Action group and
the fact that debt has been tied-up for the project.

Action Ginni Devi Cancer Hospital is a single specialty Cancer
hospital promoted by Manav Sevarth Trust, a charitable trust of
the Action Group.  The Action Group, founded by Mr. Nand Kishore
Aggarwal, commenced its business operations in 1971 as a
manufacturer and supplier of footwear and its components.
Currently, the group has presence in diversified business segments
including Chemicals and Plastics, Computer Monitors and
Peripherals, Power Back Up / Inverters, Batteries, Housing
Projects, Health Care and Steel.


ANGEL BABY: CRISIL Rates INR150 Million Term Loan at 'BB-'
----------------------------------------------------------
CRISIL has assigned its rating of 'BB-/Stable' to the INR150
million term loan facility of Angel Baby Products Pvt Ltd.

The rating reflects Angel Baby's exposure to risks relating to
concentration of revenues in its four-star hotel at Noida, its
limited experience of managing hotel operations, vulnerability of
business to economic cyclicalities and dependence on financial
support from promoters/group companies to repay debt obligations.
These weaknesses are, however, partially offset by Angel Baby's
stable business risk profile, supported by location advantages,
and association with Indian Tobacco Company (ITC) group of hotels.

Outlook: Stable

CRISIL believes that Angel Baby's occupancy rates will improve
over the medium term, as operations at the hotel stabilize, and
the economic conditions improve.  The outlook may be revised to
'Positive' if the company's financial risk profile improves as a
result of increase in occupancy levels and average room revenues
(ARRs) resulting in high cash accruals.  Conversely, the outlook
may be revised to 'Negative' if low occupancy rates, and ARRs
continue to constrain the company's debt repayment capacity.

                         About Angel Baby

Set up in 2005, Angel Baby has constructed a full-service, four-
star hotel at Noida, National Capital Region (NCR).  The property
will feature 32 rooms, two restaurants, and a spa.  The company
has entered into an exclusive management agreement with Fortune
Park Hotels Ltd., a wholly owned subsidiary of ITC Limited.  The
hotel enjoys locational benefits of being situated in Noida which
has emerged as a key business destination over the last decade.
The hotel commenced commercial operations in April 2009 under the
name and ageis of "Fortune Inn Grazia".


MAHENDRA EXPORTS: ICRA Reaffirms 'LBB+' on INR351.4MM Term Loans
----------------------------------------------------------------
ICRA has reaffirmed the 'LBB+' rating, indicating inadequate-
credit-quality, assigned to the INR351.4 million term loans and
the INR1.14 billion fund based limits of C. Mahendra Exports
Limited.

ICRA has also reaffirmed the A4+ rating, indicating risk-prone-
credit-quality in the short term, assigned to the fund based
limits of CMEL for an enhanced amount of INR7.50 billion (from
INR5.22 billion; including INR920.0 million proposed fund based
limits.  ICRA has also assigned A4+ rating to the INR1.0 billion
proposed non-fund based limits of CMEL.

The ratings reflect the significant deterioration in CMEL's
financial risk profile following the drop in demand in the export
markets since the second half of 2008-09, the significant increase
in working capital requirements because of build up of receivables
and consequent pressure on liquidity as reflected in almost full
utilization of bank limits in the last few months.  The operating
cash flows have also witnessed substantial pressure on account of
drop in margins following increase in trading operations (owing to
scale down of manufacturing activities) and sharp decline in
diamond prices.  Even as the potential price loss on diamonds/
inventory in the near term is likely to be mitigated to some
extent by lower input costs, the margins/ cash flows remain
vulnerable to high volatility in diamond prices and foreign
exchange movements.  The ratings also take into account the
intensifying competitive pressures in the fragmented cut and
polished diamonds industry.

The ratings continue to also remain constrained by CMEL's highly
leveraged capital structure and low debt protection indicators,
which have further weakened in 2008-09 driven by the increase in
working capital intensity of operations and low cash accruals.
While around 17% of the debt is in the form of interest-free
unsecured loans from the promoters, and is subordinate to the
loans taken from other creditors, CMEL's gearing levels of 5.5
times (x) as on March 31, 2009 were high at around 2.4x even on
adjusting for promoters' loans as quasi-equity.  ICRA expects that
the pressure on CMEL's credit risk profile will continue in the
near term because of sluggish off-take from export markets.  ICRA
also takes note of certain non-standard accounting policies that
are currently followed by the Company and the disclosure levels
that have scope for improvement.

CMEL had proposed a public issue of around INR3.0 billion for its
expansion plans in 2008-09 across the diamond processing,
jewellery manufacturing and retailing operations of the CMEL group
(the group).  While the Company had earlier deferred the proposed
issue and expansion plans in view of the unfavourable market
conditions, it now envisages a public offer in the short term.
ICRA, however, notes that in the event of any delay or inability
to raise equity, the Company's financial profile could be
adversely impacted.

The ratings, however, recognizing track record of the Company in
the diamond business; and its association with the diamond mining
major company, De Beers, as DTC (Diamond Trading Company)
Sightholder since 1991.

                     About C. Mahendra Exports

Initially promoted as a partnership firm by Mr. Mahendra Shah,
Mr. Champak Mehta and Mr. Pravin Shah in 1974, C. Mahendra Exports
Limited was first incorporated as a private limited company in
January 2007 and converted into a public limited company in March
2007.  CMEL is closely held by the promoters'/ promoters' family.
The Company is engaged in manufacturing cut and polished diamonds
(ranging from 0.01 carat to 1 carat).  It exports diamonds
primarily to Hong Kong (HK), the United States (US) and the United
Arab Emirates (UAE).  The company has two manufacturing facilities
at Surat (Gujarat).  CMEL is the flagship entity of the CMEL
group, which also has a diamond jewellery manufacturing and
retailing division (under the brand name Ciemme).  The group's
sales and distribution network is spread across major diamond
centres of the world such as HK, Chicago (US), Houston (US), Los
Angeles (US), New York (US), Dubai (UAE), Antwerp (Belgium) and
Bangkok (Thailand).

CMEL reported a profit after tax (PAT) of INR198.9 million on an
operating income of INR14,132.7 million in 2008-09, against a PAT
of INR385.3 million (before prior period expenses‡) on an
operating income of INR13,666.4 in 2007-08.


NANDED COOP BANK: RBI Rejects Gov't. Plan to Reopen Bank
--------------------------------------------------------
The Economic Times reports that the Reserve Bank of India has
rejected the Maharashtra government’s plan to reopen the Nanded
District Co-operative Bank, which has been under moratorium since
November 2005.

The report relates that Chief Minister Ashok Chavan last week
sanctioned a INR110-crore grant for the ailing bank that was once
led by Mr. Chavan’s brother-in-law and Nanded MP Bhaskarrao Patil
Khatgaonkar,

According to the report, the Banking Regulation Act doesn’t permit
cooperative banks to receive a government as its principal source
of fund.  But the state government took the decision unilaterally
and without consulting the regulator, the report notes.

The RBI on Tuesday clarified that the bank is not yet ready to
resume operations, the report says.

The report notes that the central bank, however, has raised the
amount a Nanded bank depositor can withdraw to INR3,000 from
INR1,000.

While keeping the “other terms and conditions” (imposed on the
bank) unchanged, the regulator has noted that the “above
relaxation should not be construed to imply that the RBI is
satisfied with the substantive improvement of the financial
position of the bank,” the ET cited an RBI communique as saying.

The Nanded co-operative bank will continue to be under RBI
moratorium, the report adds.


RK VICTUALS: CRISIL Places 'B+' Rating on INR185 Million Term Loan
------------------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to RK Victuals Pvt
Ltd's INR185.0 million term loan facility.

The rating reflects RK Victuals' exposure to risks relating to
delays in commercialization of its hotel project, vulnerability of
the business to economic cyclicalities and dependence on financial
support from promoters/group companies to repay its debt
obligations.  These weaknesses are, however, partially offset by
healthy business prospects for its three-star hotel, backed by
location advantages, and its operations and maintenance contract
with Royal Orchid Hotels Limited.

Outlook: Stable

CRISIL expects RK Victuals to complete its three-star hotel
project without time or cost overruns.  The outlook may be revised
to 'Positive' if increase in occupancy levels and average room
revenues (ARRs) result in strong cash accruals, and therefore, in
improvement in financial risk profile for RK Victuals.
Conversely, further delays in project implementation may result in
a revision in outlook to 'Negative'.

                         About RK Victuals

Set up in 2005, RK Victuals is developing a full-service, three-
star hotel at Vashi, Mumbai.  The property will feature 68 rooms,
two restaurants, and a spa.  The hotel is aimed at business and
leisure travellers to Mumbai.  The company has exclusive
management agreement with ROHL.  Currently ROHL manages 12 hotels
at 6 destinations in India under its various brand extensions.
The hotel is expected to commence commercial operations in
October 2009.


SWASTI POWER: Default on Loan Payment Cues CRISIL 'D' Rating
------------------------------------------------------------
CRISIL has assigned its rating of 'D' to the bank facility of
Swasti Power Engineering Ltd, as the company has defaulted on its
term loan because of weak liquidity.

   Facility                           Rating
   --------                           ------
   INR950.00 Million Long Term Loan   D (Assigned)

Set up in 1993, Swasti Power is promoted by Mr. Y Raveendranath
Reddy and Mr. Y Vivekananda Reddy. Swasti Power is implementing a
22.5-megawatt power project, Bhilangana Hydro Power Project
(BHPP), in Uttarakhand, across the Bhilangana River, which is a
major tributary of the Bhagirathi River.  Swasti Power has
received the project on allotment basis from the Government of
Uttarakhand (GoU) on a build, own, operate, and transfer (BOOT)
basis.  The ownership of the unit vests with Swasti Power for a
period of 35 years from commercial operation date (COD), after
which, the project will be transferred to GoU free of charge.
Swasti Power has entered into power purchase agreements with PTC
India Ltd and Uttarakhand Power Corporation Ltd.  The company is
expected to commercialize operations by mid-August 2009.


VIRENDRA & CO.: Low Net Worth Prompts CRISIL 'BB' Ratings
---------------------------------------------------------
CRISIL has assigned its ratings of 'BB/Stable/P4' to the bank
facilities of M/s. Virendra & Co.

   Facilities                          Ratings
   ----------                          -------
   INR31.5 Million Cash Credit         B/Stable (Assigned)
   INR265.0 Million Letter of Credit   P4 (Assigned)
   INR3.5 Million Proposed Short Term  P4 (Assigned)
                   Bank Facility

The ratings reflect V&C's vulnerability to cyclicality in the
ship-breaking industry and fluctuations in the prices of steel
scrap, weak financial risk profile marked by low net worth and
small scale of operations, and exposure to risks relating to
unfavorable government regulations. These weaknesses are, however,
partially offset by the benefits that V&C derives from the strong
track record of its promoters, and the healthy growth prospects
for the ship-breaking industry.

Outlook: Stable

CRISIL expects V&C to maintain a stable credit risk profile over
the medium term on the back of revival in the fortunes of the ship
breaking industry in 2009-10.  The outlook may be revised to
'Positive' if the firm benefits from the boom in the ship-breaking
industry, and increases its scale of operations.  Conversely, the
outlook may be revised to 'Negative' if a significant fall in
steel scrap prices leads to deterioration in the firm's financial
risk profile.

                       About Virendra & Co.

V&C has capacity to break ships ranging from 5,000 tonnes to
22,000 tonnes at its 50-meter plot at Alang (Gujarat), the leading
centre for ship-breaking and recycling in Asia.  The firm breaks
ships such as general cargo, oil tankers, reefers and bulk
carriers. V&C's promoters, the Shah family headed by Mr. Kirit
Shah, have been in the business for the past 25 years.  V&C
imports ships, breaks them into iron and steel plates, and sells
the same to re-rolling mills in and around Bhavnagar area.  V&C
reported a profit after tax (PAT) of INR9.9 million on net sales
of INR 371.3 million for 2008-09, as against a PAT of INR4.6
million on net sales of INR 298.3 million for 2007-08.


WINDLASS ENGINEERS: CRISIL Rates INR44.6 Million Term Loan at 'B+'
------------------------------------------------------------------
CRISIL has assigned its ratings of 'B+/Stable/P4' to the bank
facilities of Windlass Engineers & Services Pvt Ltd (WESPL), which
is part of the Windlass group.

   Facilities                          Ratings
   ----------                          -------
   INR44.60 Million Term Loan          B+/Stable (Assigned)
   INR47.90 Million Export Packing     P4 (Assigned)
                     Credit*
   INR20.00 Million Bill Discounting   P4 (Assigned)
   INR7.50 Million Stand-by Line of    P4 (Assigned)
                             Credit
   INR5.00 Million Letter of Credit#   P4 (Assigned)
   INR5.00 Million Bank Guarantee#     P4 (Assigned)

   * contains a proposed limit of INR17.9 million and is
     interchangeable with Bill Discounting for INR10 million

   # Letter of credit and bank guarantee are fully interchangeable

The ratings reflect the Windlass group's small scale of
operations, weak financial risk profile, and working capital-
intensive operations.  The ratings also factor in WESPL's exposure
to risks relating to fluctuations in crude oil prices, and to
uncertainties in the business environment.  These weaknesses are
partially offset by the benefits that the group derives from the
extensive experience of its promoters, its established
distribution network in steelcraft business, and diversification
of business through WESPL.

As part of this rating exercise, CRISIL has combined the business
and financial risk profiles of WESPL and Windlass Steelcrafts
(WSC); this is because the two entities, together referred to as
the Windlass group, have common ownership and management teams,
shared premises, and fungible funds, despite the absence of
business linkages between them.  In 2008-09, the partners withdrew
INR38 million from WSC, and invested the same in WESPL as
interest-bearing unsecured debt.

Outlook: Stable

CRISIL believes that the Windlass group's scale of operations will
remain small and its financial risk profile, weak.  The outlook
may be revised to 'Positive' in case of substantial improvement in
the group's scale of operations and financial risk profile.
Conversely, the outlook could be revised to 'Negative' in case the
Windlass groups' financial risk profile weakens because of higher-
than-expected withdrawal of capital by the partners in WSC, or
significant pressure on WESPL's revenues and cash accruals amid
slow down in demand from end-user industry.

                          About the Group

Set up in 1943 by the late Mr. V P Windlass, WSC produces replicas
of swords, bayonets, daggers, sabres, and other historical arms
and armour.  The firm is the flagship entity of the Windlass
group, and the official contractor to the United States Marine
Corps for ceremonial swords; it also supplies its products for
movie productions.  WESPL and WSC share common premises at
Dehradun (Uttarakhand).

WESPL, promoted by the Windlass family, was incorporated in 2007.
It manufactures a variety of oil-field equipment, catering mainly
to the oil exploration industry.  Its product portfolio consists
of blow out-preventer (BOP) control units, hammer unions, high-
pressure test units, gaskets, and spools.

The Windlass group reported a profit after tax (PAT) of INR27
million on net sales of INR177 million for 2007-08, as against a
PAT of INR37 million on net sales of INR157 million for 2006-07.
For 2007-08, the company's first year of operation, WESPL reported
a negative profit after tax (PAT) of INR14.57 million on net sales
of INR1.36 million.


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


KERTAS KRAFT: Liquidation Plan Maybe Cancelled as Aceh Mulls Aid
----------------------------------------------------------------
The State Ministry for State Enterprises said it might cancel a
plan to liquidate PT Kertas Kraft Aceh because Aceh’s provincial
government appeared willing to come to the company’s rescue, The
Jakarta Globe reports.

“The Aceh provincial government is studying the company’s profile
now,” State Enterprises Minister Sofyan Djalil was quoted by the
Globe as saying.  “There is a possibility that we won’t have to
liquidate the company.  However, we’re still exploring the
possibility, as the local government said that it would reach a
compromise with the company on the shortage of raw materials.”

The report relates Mr. Sofyan said Aceh Governor Irwandi Yusuf has
already discussed the matter with ministry officials and Kertas
Kraft’s management.  “We’ll see how things turn out, but some
employees will still have to be laid off,” Mr. Sofyan said.

As reported in the Troubled Company Reporter-Asia Pacific on
Oct. 2, 2008, PT Kertas Kraft Aceh will be likely closed down by
the Indonesian Government due to the company's losses and problems
in acquiring raw materials after the Aceh administration turned
down the company's request to cut down pine trees to supply its
raw material.

                        About  Kertas Kraft

Based in Aceh province, Indonesia, PT Kertas Kraft Aceh (Persero)
-- http://www.KKA-lsm.com/-- produces long fiber pulp for sack
kraft used for cement sacks.  It focuses on offering sack paper.

                           *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
June 16, 2006, Bank Mandiri asked the company to settle its
non-performing loans, which comprise 26.2% of its total loans,
otherwise it would be forced to seek legal action against them.

On Feb. 13, 2006, TCR-AP reported that the Government injected up
to IDR50 billion into ailing Kertas Kraft to enable the company to
resume normal operations.  At that time, Minister of State
Enterprises Sugiharto has said that Kertas Kraft needs up to
IDR200 billion in order to resume its operations.


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


JAPAN AIRLINES: Int'l. Traffic Down 4.5% on Summer Vacation
-----------------------------------------------------------
Japan Airlines Group disclosed its international and domestic
passenger traffic results for the Japanese summer vacation period
that stretched from August 7 to August 16 this year.

The international passenger traffic on JAL Group flights during
the 10-day period is 347,209, down by 4.5% on the same period last
year, JAL said in a statement.  However, the number of passengers
that departed Japan for China, Guam and Europe in particular,
showed an improvement of 31.1%, 3.1% and 1.4%, respectively, when
compared to the same period last year.

With the exception of routes to Hawaii and Guam, on which
capacities were down by 2% and 1% respectively, capacity was down
by more than 10% on all other international routes due to either
reductions in scheduled flight frequency or the switch to smaller-
sized aircraft from the beginning of FY2009.  This contributed to
a drop in the number of available seats on the Group's
international network by 16.2% compared to last year.  JAL also
operated only half the number of extra flights it operated during
the summer vacation period last year; 26 extra international
flights were operated this year to such destinations as Alaska,
Honolulu, Latvia and Palau.

The load factors on Hawaii, transpacific, Europe and Taiwan routes
exceeded 90%, and the load factor on all the other international
routes from Japan were above 70%.  This led to a high overall load
factor of 84.5% on international routes and which represents a
rise of 10.4 percentage points versus previous year.

For domestic traffic, the JAL Group carried 1,312,717 domestic
passengers during this period which is a 7.6% decline compared to
last year's result.  Seat supply on domestic routes is 3.4% lower
than the same period last year and the load factor is 70.5%.  73
additional flights on domestic routes in Japan were operated
during this summer vacation period, to such key vacation
destinations as Okinawa, Sapporo and Kagoshima.

                             About JAL

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

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

                          *     *     *

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

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


JAPAN AIRLINES: Japan Gov't. to Set Up Restructure Panel
--------------------------------------------------------
Japan's transport ministry will establish a panel to help
restructure Japan Airlines Corp., Bloomberg News reports citing a
statement by the transport ministry.

Bloomberg relates the ministry said the panel's first meeting will
be held Aug. 20 and include legal and academic experts.  Takehiko
Sugiyama, President of Hitotsubashi University, will chair the
group.

Development Bank of Japan, Japan Bank for International
Cooperation, Mizuho Corporate Bank and Bank of Tokyo-Mitsubishi
UFJ will act as panel observers, Bloomberg relates.

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

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

                          *     *     *

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

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


JLOC XXIV: S&P Downgrades Ratings on Class C Certificates
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its rating on the class
C floating-rate trust certificates issued under the JLOC XXIV
transaction and affirmed its rating on class B, and removed the
ratings on both tranches from CreditWatch with negative
implications, where there were placed on July 6, 2009.  In
addition, Standard & Poor's affirmed the ratings on classes A and
X.

Standard & Poor's reviewed about 100 loans (total outstanding loan
balance: about JPY660 billion) backing rated CMBS transactions
that are due to mature by the end of August 2010.  Following the
review, on July 6, 2009, S&P placed the ratings on 93 tranches of
23 CMBS transactions, including those on classes B and C of JLOC
XXIV, on CreditWatch with negative implications.

One of the loans backing this transaction, which is due to mature
by the end of August 2010, is one of the "loans considered to be
in default" as stated in the aforementioned report.  Accordingly,
Standard & Poor's has reviewed the property management report for
the property backing the loan and spoken with the asset manager
about the loan.

The downgrade reflects a downward revision in S&P's assumption
regarding the likely recovery amount from the aforementioned loan.
Following S&P's review on July 6, it is Standard & Poor's view
that there is uncertainty clouding the prospects for recovery from
the loan, which accounts for about 17.7% of the initial issuance
amount of the trust certificates.  Although there is no major
concern over cash flow from the underlying properties backing the
loan, there appears to be uncertainty over loan repayment by the
maturity date.  As such, Standard & Poor's lowered its assumption
regarding the recovery amount from the loan under the current
severe real estate market circumstances if it is not redeemed by
the maturity date.

Standard & Poor's will continue to monitor the redemptions from
the loan, performance of underlying real estate properties, and
recovery prospects in case of default of the underlying loan.

S&P is considering amending the rating methodology for interest-
only (IO) certificates, which include class X of this transaction.
If the proposal is adopted, it could affect the rating on class X.
At this point, however, Standard & Poor's has affirmed its rating
on class X.

This is a multi-borrower CMBS transaction that was initially
backed by a pool of 12 nonrecourse loans that were secured by 56
real estate properties.  The arranger for this transaction is
Morgan Stanley Japan Ltd., and the servicer is ORIX Asset
Management & Loan Services Corp.

             Rating Lowered, Off Creditwatch Negative

                            JLOC XXIV
  JPY252.8 billion floating-rate trust certificates due May 2014

         Class   To    From          Initial Issue Amount
         -----   --    ----          --------------------
         C       BBB   A/Watch Neg   JPY1.8 billion

            Ratings Affirmed, Off Creditwatch Negative

         Class   To    From          Initial Issue Amount
         -----   --    ----          --------------------
         B       AA   AA/Watch Neg   JPY2.2 billion

                         Ratings Affirmed

               Class   Rating   Initial Issue Amount
               -----   ------   --------------------
               A       AAA      JPY18.8 billion
               X       AAA      JPY22.8 billion*

                       * Notional principal


L-JAC THREE: S&P Downgrades Ratings on Various Classes of Notes
---------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on classes
D1 to I issued under the L-JAC Three Trust Beneficial Interest
transaction and removed the ratings from CreditWatch with negative
implications.  In addition, Standard & Poor's affirmed the ratings
on classes B and C and removed them from CreditWatch with negative
implications.  The ratings on classes D1 to I and classes B and C
were placed on CreditWatch negative on July 6, 2009, following the
aforementioned review.  Meanwhile, Standard & Poor's also affirmed
its ratings on other classes of this transaction.

Standard & Poor's reviewed about 100 loans (total outstanding loan
balance: about JPY660 billion) backing rated CMBS transactions
that are due to mature by the end of August 2010.  Following the
review, on July 6, 2009, S&P placed the ratings on 93 tranches of
23 CMBS transactions, including those on classes B and C and
classes D1 to I of L-JAC Three Trust Beneficial Interest, on
CreditWatch with negative implications.

Two of the transaction's underlying nonrecourse loans, which are
due to mature by the end of August 2010, are "loans considered to
be in default," as stated in the aforementioned report.
Accordingly, Standard & Poor's has reviewed the property
management reports for the properties backing the two loans and
met with the asset manager.

The downgrades reflect a downward revision in S&P's assumption
regarding the likely recovery amount from the two aforementioned
loans.  Following S&P's review on July 6, it is Standard & Poor's
view that uncertainty clouds the prospects for recovery from the
two loans, which account for about 43.7% of the initial issuance
amount of the beneficial interests.  Although there is no major
concern over cash flow for the two loans and negotiations for
refinancing have commenced for one of the two loans that account
for about 36.8% of the total initial issuance amount, there
appears to be uncertainty over loan repayment by the maturity date
considering the overall leverage levels.  As such, Standard &
Poor's lowered its assumption regarding the recovery amount from
these two loans under the current severe real estate market
circumstances if they are not redeemed by the maturity date.

Standard & Poor's will continue to monitor the redemptions from
these loans, performance of underlying real estate properties, and
recovery prospects in case of defaults.

S&P is considering amending the rating methodology for interest-
only (IO) certificates.  If the proposal is adopted, it could
affect the ratings on the IO certificates of this transaction.

This is a multi-borrower CMBS transaction that was initially
backed by a pool of seven nonrecourse loans that were secured by
17 real estate properties.  The arranger for this transaction is
Lehman Brothers Japan Inc., and the servicer is Capital Servicing
Co. Ltd.

             Ratings Lowered, Off Creditwatch Negative

               L-JAC Three Trust Beneficial Interest
JPY70.889 billion floating-rate trust certificates due April 2013

       Class   To     From             Initial Issue Amount
       -----   --     ----             --------------------
       D-1     BBB-   BBB/Watch Neg    JPY4.0 billion
       E-1     BB+    BBB-/Watch Neg   JPY1.4 billion
       F-1     BB     BB+/Watch Neg    JPY1.4 billion
       G-1     BB-    BB/Watch Neg     JPY1.5 billion
       H-1     B+     BB-/Watch Neg    JPY1.0 billion
       I       B-     B+/Watch Neg     JPY0.583 billion

            Ratings Affirmed, Off Creditwatch Negative

       Class   To     From             Initial Issue Amount
       -----   --     ----             --------------------
       B       AA   AA/Watch Neg   JPY7.0 billion
       C       A    A/Watch Neg    JPY7.0 billion


ORIX-NRL TRUST: S&P Downgrades Ratings on Various Classes
---------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on the
class D to H trust certificates issued under the ORIX-NRL Trust 13
transaction and removed the ratings from CreditWatch with negative
implications, where they had been placed on July 6, 2009.
Meanwhile, Standard & Poor's also affirmed its ratings on
classes A to C and X issued under the same transaction.

Standard & Poor's reviewed the repayment prospects of about 100
loans (total outstanding loan balance: about JPY660 billion)
backing rated CMBS transactions that are due to mature by the end
of August 2010.  Following the review, on July 6, 2009, S&P placed
the ratings on 93 tranches of 23 CMBS transactions, including
those on classes D to H of ORIX-NRL Trust 13, on CreditWatch with
negative implications.

Two of the transaction's underlying loans (representing a combined
18.3% or so of the initial issuance amount of the trust
certificates) are "loans considered to be in default," as stated
in the aforementioned report, and the loans are due to mature by
the end of August 2010.  In addition, S&P hold the view that
uncertainty is mounting over interest payments relating to one of
the underlying specified bonds of this transaction (representing
about 12.6% of the initial issuance amount of the trust
certificates).  The specified bond was not subject to the
aforementioned review.  Yet, Standard & Poor's understands that
the anchor tenant of the office building backing that bond has
experienced a credit event, causing significant deterioration in
the performance of the collateral property.  Accordingly, Standard
& Poor's has reviewed the property management report for the
property backing the specified bond and interviewed the asset
manager about the specified bond.

S&P downgraded classes D to H because: (1) S&P expects the likely
recovery amounts from the collateral properties relating to the
aforementioned "loans considered to be in default" to be lower
than S&P's initial assumptions, based on the possibility that the
loans may not be redeemed by the maturity date and the properties
may need to be liquidated; and (2) S&P see a risk that interest
payments on the aforementioned specified bond may not be made, and
S&P expects the likely recovery amount from the property that
backs the specified bond to be considerably lower than S&P's
initial assumption, based on the possibility that the specified
bond may default and the property may need to be liquidated.

Standard & Poor's intends to continue to monitor progress in the
repayment of the aforementioned loans and specified bond, as well
as the performance and recovery prospects of the related
collateral properties.

S&P is considering amending the rating methodology for interest-
only (IO) certificates, which include class X of this transaction.
If the proposal is adopted, it could affect the rating on class X.
At this point, however, Standard & Poor's has affirmed its rating
on class X.

This is a multi-borrower CMBS transaction.  The trust certificates
were initially secured by 12 nonrecourse loans and specified bonds
(tokutei shasai) extended to 11 obligors, which were originally
backed by 21 real estate certificates and real estate properties.
The transaction was arranged by ORIX Corp., and ORIX Asset
Management & Loan Services Corp. is the transaction servicer.

            Ratings Lowered, Off Creditwatch Negative

                        ORIX-NRL Trust 13
      JPY21.1 billion trust certificates due September 2013

       Class   To     From            Initial Issue Amount
       -----   --     ----            --------------------
       D       BBB-   A/Watch Neg     JPY1.1 bil.
       E       B+     BBB/Watch Neg   JPY0.4 bil.
       F       B      BB/Watch Neg    JPY0.6 bil.
       G       B-     BB-/Watch Neg   JPY0.2 bil.
       H       B-     B/Watch Neg     JPY0.3 bil.

                         Ratings Affirmed

    Class   Rating   Initial Issue Amount
    -----   ------   --------------------
    A       AAA      JPY15.4 bil.
    B       AA       JPY1.7 bil.
    C       AA       JPY1.4 bil.
    X*      AAA      JPY21.1 bil.  (Initial notional principal)

                        * Interest only


TOSHIBA CORP: Unit to Check Over 82,000 Washer-Dryers
-----------------------------------------------------
Toshiba Home Appliances Corp. said Tuesday it will check free of
charge 82,985 washer-dryers after one caught on fire, The Japan
Times reports.

According to the report, Toshiba Home said the drum-type units,
were manufactured between November 2001 and May 2007.  These units
include the TW-853EX, TW-853V6 and nine other models produced for
retailer Ryohin Keikaku Co. and the Japanese unit of General
Electric Co. under their brands.

Japan Times relates that Toshiba Home said one of the machines
caught fire in Kyoto in June, possibly because the insulator of a
lead wire was damaged by liquid detergent.  No injuries have been
reported, the report says.

Toshiba Corporation (TYO:6502) --- http://www.toshiba.co.jp/---
is a Japan-based manufacturer involved in five business segments.
The Digital Products segment offers cellular phones, hard disc
devices, optical disc devices, liquid crystal televisions, camera
systems, digital versatile disc (DVD) players and recorders,
personal computers (PCs) and business phones, among others.  The
Electronic Device segment provides general logic integrated
circuits (ICs), optical semiconductors, power devices, large-scale
integrated (LSI) circuits for image information systems and liquid
crystal displays (LCDs), among others.  The Social Infrastructure
segment offers various generators, power distribution systems,
water and sewer systems, transportation systems and station
automation systems, among others.  The Home Appliance segment
offers refrigerators, drying machines, washing machines, cooking
utensils, cleaners and lighting equipment.  The Others segment
leases and sells real estate.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
May 20, 2009, Moody's Investors Service assigned a rating of Ba1
to JPY180 billion The 1st Series Unsecured Interest Deferrable and
Early Redeemable Subordinated Bonds solely for qualified
institutional investors (Tekikaku Kikan Toshika Gentei) issued by
Toshiba Corporation.  The rating outlook is negative.

The TCR-AP reported on Aug. 13, 2009, that Fitch Ratings affirmed
the FC and LC IDRs of Toshiba Corporation:

-- Long-term FC and LC IDRs affirmed at 'BB'; Off RWN; Negative
    Outlook assigned;

-- Short-term FC and LC IDRs affirmed at 'B'; and

-- Senior unsecured notes affirmed at 'BB'.


XANADEUX: Goes Belly-Up Amid Declining Film Distributor Market
--------------------------------------------------------------
Xanadeux became the latest small to medium-sized Japanese
distributor to go out of business, according to Screendaily.com.

Xanadeux president and founder, Hiroki Numata, has been missing
since June while its phones, websites and offices are gone, the
report said.

According to the report, the company has struggled in the current
declining market.  Screendaily.com said the box office failure of
170-screen March 2008 release Postman and subsequent horror
release Shinizokonai No Ao are said to have been the start of the
company's serious financial problems.

According to Screendaily.com, the closure is one of a string of
bankruptcies and upheavals in the local industry which has seen
the shuttering of Movie-Eye Entertainment, Wise Policy and the
near collapse of film fund operation Japan Digital Contents.

Several more small-to-medium sized companies are in financial
trouble but have yet to make public announcements, the report
added.

Xanadeux is a Tokyo-based film distributor.  Founded in 1996,
Xanadeux gained notice for the Tamil-language release Muthu (aka
The Dancing Maharaja) in 1998, which grossed $2 million of its
$6 million worldwide box office in Japan, and made Tamil superstar
Rajnikanth famous among Japanese audiences.


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


TIME ENGINEERING: Posts MYR8.73M Net Income in Qtr Ended June 30
----------------------------------------------------------------
Time Engineering Berhad swung to an MYR8.73 million net income in
the second quarter ended June 30, 2009, from MYR90,000 net loss in
the same quarter in 2008.

For the current quarter, the Group recorded higher revenue of
MYR38.5 million, compared to MYR37.0 million for the preceding
year’s corresponding quarter mainly due to the partial revenue
recognition of new projects.

The Group recorded a higher operation profit margin before tax of
30% compared to preceding year’s corresponding quarter of 26%.
The improved operation performance was mainly due to cost control
initiatives and contributions from new projects.

For the six months ended June 30, 2009, the Group recorded lower
revenue of MYR63.7 million, compared to MYR90.9 million for the
six months 2008.  The decrease was attributable to the completion
of the PPSMI project Phase V in the first quarter of 2008.

The Group’s operation remained profitable with the current period
operation profit margin before taxation of 31% as compared to 29%
for the six months 2008.  The improved margin resulted from
controlled spending and contributions from new projects.

As of June 30, 2009, the Group's consolidated balance sheet showed
MYR551.89 million of total assets, MYR400.11 million of total
liabilities and shareholders' equity of MYR151.77 million.

                      About TIME Engineering

TIME Engineering Berhad is an investment holding company engaged
in information technology, telecommunications and engineering
services.  The company operates through three segments.  The
information communication technology segment is engaged in the
supply, delivery, installation, testing, commissioning and
maintenance of teaching aids equipment; development, management
and provision of business to business e-commerce, and
computerized transaction facilitation services; provision of
media and electronic communications services; provisioning of
managed and Internet-related services, and total systems
integrators and information technology consultancy.  The
telecommunication segment is engaged in the provision of
telecommunications, Internet and multimedia facilities, and
services of an associate.  The others segment is engaged in the
supply, installation and maintenance of engineering and other
equipment for expressways, telecommunications network and other
general engineering works.

                         *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
May 9, 2008, Time Engineering Berhad was considered as an
affected listed issuer of the Practice Note No. 17/2005 of Bursa
Malaysia Securities Berhad as the auditors have expressed a
modified opinion on the company's going concern status and on
its shareholders' equity, which is less than 50% of its total
issued and paid-up share capital.


=============
N I G E R I A
=============


INTERCONTINENTAL BANK: S&P Downgrades Counterparty Rating to 'B'
----------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its long-
term global scale counterparty credit rating on Intercontinental
Bank PLC to 'B' from 'BB-'; the short-term global scale rating
remains at 'B'.  S&P has also lowered the long- and short-term
Nigeria national scale ratings on Intercontinental to 'ngBBB-/ngA-
3' from 'ngA/ngA-1'.  All ratings have been placed on CreditWatch
with negative implications.

The downgrade of the ratings on Intercontinental follows the
announcement on Aug. 14, 2009, by the Central Bank of Nigeria that
senior management of five domestic Nigerian banks
(Intercontinental, Oceanic Bank (not rated), Union Bank PLC (not
rated), Afribank PLC (not rated), and Finbank PLC (not rated)
(collectively, Banks and individually, a Bank)) had been removed
due to the uncovering of "excessively high" asset quality problems
that, according to the CBN, were endangering the Banks' solvency.
Standard & Poor's understands that the Banks account for about 30%
of the Nigerian banking system's assets.

The CBN has reportedly provided liquidity support through its
"Expanded Discount Window" mechanism and has announced the
injection of capital funds to the amount of Nigerian naira (NGN)
400 billion ($2.5 billion, at NGN157: $1) to help stabilize the
Banks' liquidity and solvency.

"We have currently limited the downgrade to two notches in light
of the capital and liquidity support provided to Intercontinental
by the Federal Republic of Nigeria via the CBN, given the bank's
systemically important status in Nigerian banking and the CBN's
own objective to prevent bank failure," said Standard & Poor's
credit analyst Matthew Pirnie.  According to the CBN, its capital
injection into the Banks will stabilize and enable them to
continue normal business.  Furthermore, the CBN states that the
capital injection is a temporary measure as the government intends
to divest its holdings as soon as new investors recapitalize the
Banks.

Although the ratings on Intercontinental continue to reflect its
stand-alone creditworthiness, and thus do not include any uplift
for extraordinary external support, temporary capital and
liquidity support provided by the CBN has partly mitigated the
impact of the deterioration in Intercontinental's credit profile.

"To resolve the CreditWatch placement, S&P will review information
from Intercontinental's new management team and the CBN (which now
effectively controls Intercontinental) to assess the extent of the
bank's deteriorated financial profile and the adequacy of the
CBN's emergency financial support," said Mr.  Pirnie.
Specifically, S&P will need to review information detailing the
extent of current and expected asset quality deterioration and the
related impact on capital.  S&P also expects to review
management's plans for improving Intercontinental's governance,
internal procedures, and risk management framework.

In the event that Intercontinental's financial profile
deteriorates further, without receiving more capital and/or
liquidity support from the government, further downgrades would be
likely.  S&P could, on the other hand, resolve the CreditWatch by
affirming the ratings if S&P feel that government-sponsored
support sufficiently stabilizes the bank's financial profile and
that measures to be taken by new management also provide for a
significant moderation in Intercontinental's risk profile going
forward.


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


NATIONAL POWER: Fitch Affirms 'BB' Rating on US$500 Mil. Notes
--------------------------------------------------------------
Fitch Ratings has affirmed the rating of the notes issued by
National Power Corporation in the Philippines in 2006 and
maintained a Stable Outlook.

  -- US$500 million fixed rate notes affirmed at 'BB'; Outlook
     Stable

The notes are irrecoverably and unconditionally guaranteed by the
Republic of the Philippines, and hence the rating of the notes is
based on the ROP's Long-term foreign currency Issuer Default
Rating of 'BB', with a Stable Outlook.

The rating addresses the timely payment of interest and the
ultimate payment of principal of the notes by the legal final
maturity in November 2016.

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


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


CONTIPAC SHIPPING: Pays First and Final Dividend
------------------------------------------------
Contipac Shipping Lines Pte Ltd, which is in creditors' voluntary
liquidation, paid the first and final dividend on August 18, 2009.

The company paid 10% to all admitted unsecured claims.


JURONG TECHNOLOGIES: Posts SG$502.33 Million Net Loss for FY2008
----------------------------------------------------------------
Jurong Technologies Industrial Corp. Ltd. disclosed its financial
results for the year ended December 31, 2008.

The company posted a net loss of SG$502.33 million on revenue of
SG$110.57 million, compared with a net loss of SG$114.31 million
on revenue of SG$218.95 million in the prior year.

As of December 31, 2008, the company's consolidated balance sheet
showed SG$141.85 million in total assets and SG$468.31 million in
total liabilities, resulting in stockholders' deficit of SG$326.45
million.

The company's consolidated balance sheet as of December 31, 2008,
also showed strained liquidity with SG$107.77 million in total
current assets available to pay SG$468.10 million in total current
liabilities.

Full-text copy of the company's consolidated financial statements
for the year ended December 31, 2008, is available for free at:

               http://ResearchArchives.com/t/s?423c

                     About Jurong Technologies

Based in Singapore, Jurong Technologies Industrial Corpn. Ltd --
http://www.jurtech.com-- is an investment holding company.
Through its subsidiaries, it provides assembling of electronic
products, assembling printed circuit boards, electronics contract
manufacturing and acting as electronics supplier, provision of
surface mount technology manufacturing services, marketing of
telecommunication products, manufacture of uninsulated wire
(electronic component wire and bonding wire), original development
manufacturing and research and development services of various
electronic and designing and sale of multimedia products.

On February 20, 2009, the High Court of Singapore entered a
judicial management order for Jurong Technologies Industrial
Corpn. Ltd.


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


FINTECH RECEIVABLES: Fitch Assigns 'BB+' Rating on Class E Notes
----------------------------------------------------------------
Fitch Ratings has assigned final National ratings and Loss
Severity ratings to the term notes issued by Fintech Receivables 2
(Pty) Limited (Fintech 2):

  -- ZAR232.55 million class A Series A1C floating rated notes:
     'AAA(zaf)'; Outlook Stable; Loss Severity Rating LS-1

  -- ZAR70.84 million class E Series D1C floating rated notes:
     'BB+(zaf)'; Outlook Stable; Loss Severity Rating LS-3

Fitch has simultaneously affirmed the National Long-term ratings
for these securities previously issued by Fintech 2:

  -- ZAR50.0 million class A2A affirmed at 'AAA(zaf)'; Outlook
     Stable; Loss Severity Rating LS-1

  -- ZAR306.3 million class A2B affirmed at 'AAA(zaf)'; Outlook
     Stable; Loss Severity Rating LS-1

  -- ZAR31.4 million class B2B affirmed at 'AA(zaf)'; Outlook
     Stable; Loss Severity Rating LS-4

  -- ZAR44.1 million class C2B affirmed at 'A(zaf)'; Outlook
     Stable; Loss Severity Rating LS-4

  -- ZAR31.8 million class D2B affirmed at 'BBB(zaf)'; Outlook
     Stable; Loss Severity Rating LS-4

  -- ZAR14.0 million class E3B affirmed at 'BB+(zaf)'; Outlook
     Stable; Loss Severity rating LS-3

The new notes were issued to refinance these notes that have
reached their scheduled maturity dates:

  -- ZAR300.0 million class A1B floating rate notes: 'Paid in
     Full'
  -- ZAR19.9 million class D1B floating rate notes: 'Paid in Full'

The transaction is a securitization of equipment leases originated
by Fintech Underwriting (Proprietary) Limited, which is wholly
owned by Fintech (Proprietary) Limited.

The transaction is an existing pool of assets that was included in
a ZAR2 billion multi-seller asset-backed note programme
established in August 2008 with the issuance of the first series
of notes.  Under the programme, the issuer, from time to time, may
issue securities with maturities of less than 365 days (CP) and
longer-dated maturities (term notes).  No CP has been issued to
date.

Credit enhancement for the class A notes equal 32.45% of the
ZAR848.4 million collateral and is provided by subordination of
the class B, C, D and E notes, subordinated loan and the available
Arrears Reserve Fund.  The issuer can, after the inception date,
issue CP, which will rank senior to the class A notes.  The
issuance of CP is subject to the issuer meeting certain issuance
conditions prior to funding.

The final ratings on the term notes address the payment of
interest on the notes according to the terms and conditions of the
transaction documents, subject to an interest deferral trigger on
the class B, C, D, and E notes, as well as the repayment of
principal by legal final maturity for each note.  Should a
deferral trigger be hit on the class B, C, D or E notes, interest
may not be received for a certain period, but will, in Fitch's
judgment, be received by legal final maturity.  No unpaid interest
will accrue on the deferred interest.


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


SPANSION INC: Suspends Memorandum of Understanding With ASE
-----------------------------------------------------------
Lisa Wang at Taipei Times reports that Spansion Inc., as part of
restructuring efforts, has backed out of its memorandum of
understanding with Advanced Semiconductor Engineering Inc.

Taipei Times says that Spansion and ASE had planned to form a chip
testing and packaging venture.

According to Taipei Times, Spansion corporate marketing director
John Nation said that the restructuring will focus on cutting
costs, strengthening efficiency, and improving asset management.
The report quoted Mr. Nation as saying, "We signed the MOU last
year.  It did not go anywhere since we filed for Chapter 11
protection" in March.

Spansion wanted to achieve greater flexibility in its
manufacturing strategy by subcontracting part of capacities to
other companies, Taipei Times states, citing Mr. Nation.

Mr. Nation, according to Taipei Times, said Spansion would keep
its partnership with contract chipmakers, including Taiwan
Semiconductor Manufacturing Co. and SMIC.

Spansion Inc. (NASDAQ: SPSN) -- http://www.spansion.com/-- is a
Flash memory solutions provider, dedicated to enabling, storing
and protecting digital content in wireless, automotive,
networking and consumer electronics applications.  Spansion,
previously a joint venture of AMD and Fujitsu, is the largest
company in the world dedicated exclusively to designing,
developing, manufacturing, marketing, selling and licensing Flash
memory solutions.

Spansion Inc., Spansion LLC, Spansion Technology LLC, Spansion
International, Inc., and Cerium Laboratories LLC filed voluntary
petitions for Chapter 11 on March 1, 2009 (Bankr. D. Del. Lead
Case No. 09-10690).  On February 9, 2009, Spansion's Japanese
subsidiary, Spansion Japan Ltd., voluntarily entered into a
proceeding under the Corporate Reorganization Law (Kaisha Kosei
Ho) of Japan to obtain protection from its creditors as part of
the company's restructuring efforts. None of Spansion's
subsidiaries in countries other than the United States and Japan
are included in the U.S. or Japan filings.  Michael S. Lurey,
Esq., Gregory O. Lunt, Esq., and Kimberly A. Posin, Esq., at
Latham & Watkins LLP, have been tapped as bankruptcy counsel.
Michael R. Lastowski, Esq., at Duane Morris LLP, is the Delaware
counsel.  Epiq Bankruptcy Solutions LLC, is the claims agent.
The United States Trustee has appointed an official committee of
unsecured creditors in the case.  As of September 30, 2008,
Spansion disclosed total assets of US$3,840,000,000, and total
debts of US$2,398,000,000.

Spansion Japan Ltd. filed a Chapter 15 petition on April 30, 2009
(Bankr. D. Del. Case No. 09-11480).  The Chapter 15 Petitioner's
counsel is Gregory Alan Taylor, Esq., at Ashby & Geddes.  It said
that Spansion Japan had US$10 million to US$50 million in assets
and US$50 million to US$100 million in debts.


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


JOINT STOCK: Fitch Puts 'D' Individual Rating on Negative Watch
---------------------------------------------------------------
Fitch Ratings has placed Joint Stock Commercial Bank for Foreign
Trade of Vietnam's Individual rating of 'D' on Rating Watch
Negative.  The Support rating has been affirmed at '4'.

"There are concerns regarding Vietcombank's weak balance sheet
strength due to potential under-provisioning associated with loan
quality deterioration as the country's trade-dependent economy
slows," says Sabine Bauer, Director in Fitch's Financial
Institutions Team.  "Fitch would consider downgrading the
Individual rating if it cannot gain sufficient comfort from the
bank's loans quality, in particular the differences in loan
classifications using international and local accounting
standards," adds Ms.  Bauer.  The Individual rating also reflects
solid profitability and the bank's strong franchise as one of four
major state-owned banks with 10% of system assets.

Under IFRS, Vietcombank's NPLs rose to a very high 18% at end-May
2008 (2007: 14%) and net NPLs stood at 115% of equity.  In
addition, special-mention loans were very high at 23%.  Audited
IFRS 2008 accounts are not yet available, but Fitch anticipates
that loans quality will have deteriorated further due to very high
inflation and interest rates in H208 and a slowing economy.  NPLs
under local accounting standards (increased moderately to 4.3% of
end-H109 loans from 3.3% at FYE07; this is however well above the
system's 2.5%.  In addition, special-mention loans rose to 5.4%
from 2.0%.  Loan quality may deteriorate further given strong loan
growth over H109 (16% for the bank versus 17% for the system),
particularly if borrowing rates rise with the state ultimately
having to remove its current subsidization of them.  In addition,
Vietcombank is exposed to a depreciation of the Vietnamese Dong as
40% of its loans are in foreign currency.

Pre-provision profit has remained solid (2.9% of assets in H109;
3.0% in 2008), but is somewhat under pressure as limited
availability for deposits drives up funding costs and squeezes
margins, especially as lending rates are capped.  Meanwhile,
liquidity tightened slightly in H109 as the bank funded its loan
growth through liquid assets as customer and bank deposits
contracted.

While capital appears adequate under VAS, based on IFRS loans
quality data, there is the potential for it to be significantly
eroded.  That said, the bank holds significant loan collateral.
At end-June 2009, the regulatory total CAR stood at 8.8% (2008:
9.3%).

Vietcombank is 90.7%-owned by the state and is Vietnam's third-
largest bank.  It employs 9,056 staff and has 65 branches.  Its
shares were listed in June 2009.

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


                         *********

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.


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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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