TCRAP_Public/090908.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

           Tuesday, September 8, 2009, Vol. 12, No. 177

                            Headlines

A U S T R A L I A

RMA ENERGY: Gets $14.8-Mln Takeover Bid from CREC Resources
SONS OF GWALIA: Former Auditors Agree to AU$125-Mln Settlement
SUNCORP METWAY: Sells AU$750-Mln Government-Guaranteed Bonds


C H I N A

CHINA EASTERN: Wins Shareholders OK for US$1-Bln Share Sale Plan
VENETIAN MACAU: Bank Debt Trades at 8% Off in Secondary Market


H O N G  K O N G

BERCHET ASIA: Appoints Katherine and Alex as Liquidators
BERCHET TOYS: Appoints Katherine and Alex as Liquidators
COMERICA TRADE: Appoints Seng and Lo as Liquidators
DOMINION INTERNATIONAL: Creditors' Proofs of Debt Due on  Oct. 5
EAST ASIA: Creditors' Proofs of Debt Due on  October 5

GOODVALE LIMITED: Ho Wai Chi Steps Down as Liquidator
HEALTHCARE INTERNATIONAL: Final General Meeting Set for October 9
LA TACHE: Tai Liang Chuan Steps Down as Liquidator
MARVEL TOYS: Seng and Lo Step Down as Liquidators
MASTER GATE: Cheuk Yee Man Steps Down as Liquidator

RICHCOME INDUSTRIAL: Inability to Pay Debts Prompts Wind-Up
RICOH ELEME: Lam and  Toohey Step Down as Liquidators
SPORTS AND OUTDOOR: Final General Meeting Set for October 5
TECH SYSTEM: Placed Under Voluntary Wind-Up


I N D I A

BHAKTI EXTRACTION: CRISIL Gives 'B+' Rating on INR50.0MM L-T Loan
CIMARON CONSTRUCTIONS: ICRA Rates INR242.9MM LT Loans at 'LBB+'
DINESH OIL: CRISIL Cuts Ratings on Various Bank Facilities to 'BB'
DULI CHAND: CRISIL Places 'BB+' Rating on INR50MM Standby LOC
ENERGY LEADER: CRISIL Cuts Ratings on INR254.8MM LT Loan to 'B-'

FORD MOTOR: On Track to Start Selling Small Car in India
GAYATRI HI-TECH: ICRA Puts 'LBB-' Rating on INR3.17BB Term Loan
HYDRO PRIVATE: ICRA Places 'LBB' Rating on INR24.94MM LT Loans
INDUS BIO: CRISIL Assigns 'D' Ratings on INR66.8 Million LT Loan
JHAMB ENTERPRISES: CRISIL Places 'B-' Rating on INR101MM Term Loan

METAL CLOSURES: CRISIL Cuts Rating on INR207.8MM LT Loan to 'D'
MITTER FASTENERS: ICRA Assigns 'LBB-' Rating on Bank Limits
MUKESH STEELS: ICRA Assigns 'LBB+' Rating on INR120 Million Limits
PRADIP OVERSEAS: CRISIL Downgrades Rating on INR239.2 Loan to 'BB'
RAM INFRASTRUCTURE: ICRA Rates Long Term Bank Facilities at 'LB+'

RAMYA SPINNING: ICRA Puts 'LBB' Rating on INR162.9MM FB Facilities
SARVESH REFRACTORIES: CRISIL Assigns 'D' Rating on INR95.1MM Loan
SATYAM COMPUTER: Fast-Track Court for Satyam Case Approved
SKH METALS: ICRA Puts 'LBB+' Rating on INR1 Bln Bank Facilities
TARELA POWER: ICRA Assigns 'LBB' Rating on INR282.1 Mln LT Loans

TEJASSARNIKA HYDRO: ICRA Assigns 'LBB-' Rating on INR521.6MM Loans
TRANSWORLD HIRE: CRISIL Rates INR250MM Cash Credit Facility at BB+
UDYOG LIMITED: ICRA Assigns 'LBB+' Rating on INR486MM Term Loans
VITAL HEALTH: CRISIL Cuts Rating on INR57.3MM LT Loan to 'C'
VITAL LABORATORIES: CRISIL Cuts Ratings on Various Loans to 'C'

WADPACK PVT: CRISIL Assigns 'BB-' Rating on INR131.5 Mln LT Loans


I N D O N E S I A

BANK DANAMON: Hearing on Red Dragon Lawsuit Moved to November


J A P A N

CAPMARK FINANCIAL: US$1.6 Bil. Losses Cue S&P to Junk Corp. Rating
JAPAN AIRLINES: May Sell Shares in JALways to Pay Back Debts
JLOC 36: S&P Downgrades Ratings on Various Floating-Rate Notes
MOMENTUM CDO: S&P Corrects Rating on Class AX Credit Linked Notes


K O R E A

HYNIX SEMICONDUCTOR: Creditors to Invite Bids for 28% Stake Sale


N E W  Z E A L A N D

AIR NEW ZEALAND: Virgin Blue, Delta Air Slam Tie-Up Objections
ASCOT DOWNS: In Liquidation; Creditors Unlikely to Get Repayment
DESANI LTD: Goes Into Voluntary Liquidation
LINE 7: No Payment for Creditors Owed NZ$5-Mln, Receivers Say


P H I L I P P I N E S

POWER SECTOR ASSETS: EDC Offer Tops Bid for Two Geothermal Plants


S I N G A P O R E

ARTS & THOTS: Creditors' Proofs of Debt Due on September 18
DONNA FOOD: Court Enters Wind-Up Order
LION HEART: Members and Creditors to Meet on September 23
TRANSBILT ENGINEERING: Pays Third Dividend


X X X X X X X X

* BOND PRICING: For the Week August 31 to September 4, 2009


                         - - - - -


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A U S T R A L I A
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RMA ENERGY: Gets $14.8-Mln Takeover Bid from CREC Resources
-----------------------------------------------------------
China Railway Resources Group's Australian subsidiary, CREC
Resources (Aust) Pty Ltd., has made a $14.8 million bid for 80% of
RMA Energy Ltd. as its first venture in the Australian resources
space, Sarah-Jane Tasker writes for The Australian.

According to the report, RMA Energy said Thursday that CREC
Resources, which has an 11.18% interest in the company, had
announced an intention to make a proportional takeover offer for
the Company.

"The announcement from CREC was unsolicited and upon receipt of
the notice caused RMA's board to immediately respond by advising
RMA shareholders to take no action," the report cited RMA Energy
in a statement.

Citing CREC in the bidder's statement, The Australian notes CREC
said its parent, China Rail, would loan it the funds needed to
complete the transaction.

The Australian states that the deal, an offer of 6.5c a share,
will hinge on the major shareholder, Queensland business identity
Terry Byrt, who has a 42.95% stake in the company.  It was
expected that Mr. Byrt would roll his stake into the bid, The
Australian says citing industry sources.

                         About RMA Energy

RMA Energy Limited (ASX:RMT) -- http://www.rmaenergy.com.au/--
is an Australia-based company engaged in the exploration of
uranium, tin and coal.  The Company holds three granted tenements
in Queensland: EPM 15117 (Macaulay Creek), EPM 15127 (Coane Range)
and EPC 1000 (Emerald).  Its other exploration projects include
Bulburrum (four coal tenements), Moonie (two coal tenements) and
Cliffdale Creek (uranium).  The Moonie Coal Project application
covers an area of 1636 square kilometers.  The Bulburrum Coal
Project area is located about 120 kilometers south of Blackall,
120 kilometers north of Charleville and 75 kilometers south west
of Tambo.  The application covers an area of 2803 square
kilometers.  The Cliffdale Creek Uranium Project covers an area of
287.5 square kilometers.

RMA Energy Limited reported two consecutive annual losses of
AU$1.36 million and AU$377,105 for the year June 30, 2008 and
2007, respectively.

RMA Energy's auditors, BDO Kendalls Audit & Assurance (WA) Pty
Ltd., said in its audit report that the company will have to seek
additional funding in order to progress exploitation of its
exploration assets.  If the company is unable to obtain additional
funding it may cast material uncertainty on company's ability to
continue as a going concern and to realize its assets and
extinguish its liabilities in the normal course of business.


SONS OF GWALIA: Former Auditors Agree to AU$125-Mln Settlement
--------------------------------------------------------------
Andrew Main at The Australian reports that audit firm Ernst &
Young has agreed to pay the administrators of Sons of Gwalia Ltd.
AU$125 million, to settle a AU$1.3 billion damages case based on
an inadequate audit of the miner.

The settlement, according to The Australian, will be subject to a
vote by creditors at a meeting on September 23, although they are
unlikely to rebel unless they think the payout should have been
higher.  If approved, says The Australian, it will go into a pool
with a previous payout of AU$53 million made by the company's
directors and insurers to compensate creditors for the
consequences of the board's actions.

Citing a statement from Ferrier Hodgson on September 4, the report
notes the new agreement "will allow for a significant dividend to
be paid by December 2009 and will assist in bringing this long-
running administration to a close".

The Australian relates Ernst & Young's chief executive for
Oceania, Gerard Dalbosco, said in a statement that the decision to
settle "is a commercial one and after four years of litigation we
want to bring this matter to a close".  The two opposing parties
went into mediation about a month ago, The Australian notes.

                       About Sons of Gwalia

Headquartered in Perth, Western Australia, Sons of Gwalia Ltd. --
http://sog.com.au/-- is a mining company listed on the
Australian Stock Exchange for over 20 years.  The Company had
two operating divisions, Gold and Advanced Minerals.  Sons of
Gwalia is the world's single biggest producer of Tantalum.

In August 2004, Gwalia announced a strategic review, which
included AU$10 million in cost savings for 2003-04 and the loss
of 100 jobs from the gold division and Perth head office, after
the Company failed to meet its hedging commitments due to the
serious deterioration of its gold reserves and resources.

The Company collapsed with AU$862 million in debt, and called in
joint and several administrators Andrew Love, Garry Trevor and
Darren Weaver of Ferrier Hodgson.  The Company was also unable
to obtain agreement of all creditor counterparties to a
standstill agreement.  In February 2006, Gwalia announced that
it will undertake an operational restructure following recent
agreements reached with its two major customers for reduced
sales volumes in return for production and product specification
flexibility.  The operational restructure will maximize tantalum
production at Gwalia's lower cost Wodgina mine.

The Company is operating under a Deed of Company Arrangement.


SUNCORP METWAY: Sells AU$750-Mln Government-Guaranteed Bonds
------------------------------------------------------------
Suncorp-Metway Ltd. is selling at least AU$750 million (US$641
million) of government-guaranteed bonds, Bloomberg News reports.

Citing a person familiar with the transaction, Bloomberg discloses
that the company may price fixed- and floating-rate four-year
notes at between 38 basis points and 39 basis points more than the
swap and bank bill swap rates.

RBC Capital Markets and UBS AG are jointly managing the sale,
Bloomberg says.

Brisbane, Australia-based Suncorp-Metway Ltd. --
http://www.suncorp-metway.com.au/-- is engaged in the business of
banking, insurance, investment and superannuation, focusing on
retail customers and small to medium businesses.  The Company's
banking division provides a range of banking services including
loans, savings and investment accounts, credit cards, foreign
currency services for retail and small- to medium-business
customers.  It includes general insurance group, which offers a
range of covers across Personal, Commercial, Workers Compensation
and CTP insurance.  Wealth Management covers life, super and
managed investments.  It also includes the funds management
activities of the Company.  Suncorp Metway Investment Management
Limited (SMIML) is a wholly owned subsidiary of Suncorp-Metway
Ltd.  It is responsible for wholesale investment management of the
Suncorp Group.  On April 15, 2008, the Company acquired Prophet
Financial Advice Pty Ltd.  On March 20, 2007, it acquired Promina
Group Limited.

                           *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
Feb. 11, 2009, Fitch Ratings affirmed and removed from Rating
Watch Evolving Suncorp-Metway Limited's and Suncorp Metway
Insurance Limited's ratings.

These rating actions have been taken:

     -- Individual rating: affirmed at 'B', removed from RWE

     -- Support Rating Floor affirmed at 'BB+'; removed from RWE

At the same time, Fitch placed Suncorp's 'A+' Long- term Issuer
Default Rating on Negative Outlook, and SMIL's Insurer Financial
Strength Rating on Stable Outlook.  The actions follow Suncorp's
announcement that there has been a significant increase in bad
debts, which will affect H109 profits.  With signs that the
Queensland and Australian economies are facing significant
challenges, risks to asset quality are clearly on the downside.


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C H I N A
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CHINA EASTERN: Wins Shareholders OK for US$1-Bln Share Sale Plan
----------------------------------------------------------------
Bloomberg News reports that China Eastern Airlines Corp. won
shareholder support for a US$1 billion stock sale as it seeks to
cut debt ahead of the planned takeover of Shanghai Airlines Co.

Bloomberg says the carrier intends to sell 1.35 billion Shanghai-
listed shares at CNY4.75 each to as many as 10 investors.  State-
controlled parent China Eastern Air Holding Co. will also buy 490
million new Hong Kong-listed shares for at least HK$1.40 apiece,
Bloomberg adds.

The report notes the airline intends to pare debts before
absorbing Shanghai Airlines.

                        About China Eastern

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

                          *     *     *

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


VENETIAN MACAU: Bank Debt Trades at 8% Off in Secondary Market
--------------------------------------------------------------
Participations in a syndicated loan under which Venetian Macau US
Finance Co. LLC is a borrower traded in the secondary market at
91.86 cents-on-the-dollar during the week ended Friday, Sept. 4,
2009, according to data compiled by Loan Pricing Corp. and
reported in The Wall Street Journal.  This represents an increase
of 1.56 percentage points from the previous week, The Journal
relates.  The loan matures on May 25, 2013.  The Company pays 225
basis points above LIBOR to borrow under the facility.  The bank
debt carries Moody's B3 rating and Standard & Poor's B- rating.
The debt is one of the biggest gainers and losers among widely
quoted syndicated loans in secondary trading in the week ended
Sept. 4, among the 149 loans with five or more bids.

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

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

As reported by the TCR on Aug. 4, 2009, Moody's Investors Service
has placed Las Vegas Sands, Corp.'s ratings, including its B3
Corporate Family Rating, on review for possible downgrade.  The
review for possible downgrade reflects LVSC's weak fiscal 2009
second quarter operating results and Moody's heightened concern
regarding the company's ability to maintain an adequate liquidity
profile, reduce leverage, and remain in compliance with its
financial covenants.


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


BERCHET ASIA: Appoints Katherine and Alex as Liquidators
--------------------------------------------------------
On August 28, 2009, Chiu Soo Ching Katherine and Cho Che Kwong
Alex were appointed as liquidators of Berchet Asia Pacific
Limited.

The Liquidators can be reached at:

          Chiu Soo Ching Katherine
          Cho Che Kwong Alex
          Central Plaza, 38th Floor
          18 Harbour Road
          Wanchai, Hong Kong


BERCHET TOYS: Appoints Katherine and Alex as Liquidators
--------------------------------------------------------
On August 28, 2009, Chiu Soo Ching Katherine and Cho Che Kwong
Alex were appointed as liquidators of Berchet Toys International
Limited.

The Liquidators can be reached at:

          Chiu Soo Ching Katherine
          Cho Che Kwong Alex
          Central Plaza, 38th Floor
          18 Harbour Road
          Wanchai, Hong Kong


COMERICA TRADE: Appoints Seng and Lo as Liquidators
---------------------------------------------------
On August 28, 2009, Natalia K M Seng and Susan Y H Lo were
appointed as liquidators of Comerica Trade Services Limited.

The Liquidators can be reached at:

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


DOMINION INTERNATIONAL: Creditors' Proofs of Debt Due on  Oct. 5
----------------------------------------------------------------
The creditors of Dominion International Limited are required to
file their proofs of debt by October 5, 2009, to be included in
the company's dividend distribution.

The company's liquidator is:

          Wong John Wing Kit
          Two Chinachem Plaza
          Unit B, 21st Floor
          68 Connaught Road
          Central, Hong Kong


EAST ASIA: Creditors' Proofs of Debt Due on  October 5
------------------------------------------------------
The creditors of East Asia Property Agency (China) Company Limited
are required to file their proofs of debt by October 5, 2009, to
be included in the company's dividend distribution.

The company commenced wind-up proceedings on August 25, 2009.

The company's liquidators are:

          Seng Sze Ka Mee, Natalia
          Cheng Pik Yuk
          Three Pacific Place, Level 28
          1 Queen's Road East
          Hong Kong


GOODVALE LIMITED: Ho Wai Chi Steps Down as Liquidator
-----------------------------------------------------
On August 25, 2009, Ho Wai Chi stepped down as liquidator of
Goodvale Limited.


HEALTHCARE INTERNATIONAL: Final General Meeting Set for October 9
-----------------------------------------------------------------
The members of Healthcare Internatioanal Management Limited will
hold their final general meeting on October 9, 2009, at
10:00 a.m., at 3 Phillip Street #18-00, in Commerce Point,
Singapore 048693.

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


LA TACHE: Tai Liang Chuan Steps Down as Liquidator
--------------------------------------------------
On September 4, 2009, Tai Liang Chuan stepped down as liquidator
of La Tache International Limited.


MARVEL TOYS: Seng and Lo Step Down as Liquidators
-------------------------------------------------
On August 22, 2009, Natalia K M Seng and Susan Y H Lo stepped down
as liquidators of Marvel Toys Limited.


MASTER GATE: Cheuk Yee Man Steps Down as Liquidator
---------------------------------------------------
On August 22, 2009, Cheuk Yee Man stepped down as liquidator of
Master Gate Limited.


RICHCOME INDUSTRIAL: Inability to Pay Debts Prompts Wind-Up
-----------------------------------------------------------
On August 21, 2009, the members of Richcome Industrial (Hong Kong)
Co., Limited resolved to voluntarily wind up the company's
operations due to its inability to pay debts when it fall due.

The company's liquidator is:

          Hui Sze Wai
          Hang Seng Mongkok Building
          Room 1102, 677 Nathan Road
          Mongkok, Kowloon


RICOH ELEME: Lam and  Toohey Step Down as Liquidators
-----------------------------------------------------
On August 25, 2009, Rainier Hok Chung Lam and John James Toohey
stepped down as liquidators of Ricoh Eleme Office Machine (HK)
Limited.


SPORTS AND OUTDOOR: Final General Meeting Set for October 5
-----------------------------------------------------------
The members of Sports and Outdoor Media (HK) Limited will hold
their final general meeting on October 5, 2009, at 10:00 a.m., at
the 7th Floor of Alexandra House, 18 Chater Road, in Central,
Hong Kong.

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


TECH SYSTEM: Placed Under Voluntary Wind-Up
-------------------------------------------
At an extraordinary general meeting held on August 31, 2009, the
members of Tech System Technology Limited resolved to voluntarily
wind up the company's operations.

The company's liquidators are:

          Lai Kar Yan (Derek)
          Darach E. Haughey
          One Pacific Place, 35th Floor
          88 Queensway
          Hong Kong


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BHAKTI EXTRACTION: CRISIL Gives 'B+' Rating on INR50.0MM L-T Loan
-----------------------------------------------------------------
CRISIL has assigned its 'B+/Stable' rating to the bank facilities
of Bhakti Extraction Pvt Ltd.

   Facilities                                Ratings
   ----------                                -------
   INR150.0 Million Cash Credit              B+/Stable (Assigned)
   INR50.0 Million Long-Term Loan            B+/Stable (Assigned)
   INR22.5 Million Standby Line of Credit    B+/Stable (Assigned)
   INR5.0 Million Proposed Long-Term
      Bank Loan Facility                     B+/Stable (Assigned)

The rating reflects delays in payment of interest on term loans by
Bhakti Extraction's group company, Abhay Cotex Pvt Ltd (Abhay
Cotex).  The rating also factors in Bhakti Extraction's low net
worth, and its exposure to volatility in soya bean prices and to
intense competition in the edible oil industry.  The impact of
these weaknesses is mitigated by the benefits that Bhakti
Extraction derives from its promoters' industry experience, and
its plant's location -- Jalna (Maharashtra), which is abundant in
raw materials.

For arriving at its rating, CRISIL has combined the business and
financial risk profiles of Bhakti Extraction and Abhay Cotex,
together referred to as the Bhakti group. This is because both the
companies have common promoters, are in similar lines of business,
and have mutual operational linkages and fungible cash flows.
Furthermore, CRISIL believes that Bhakti Extraction will extend
need-based support to Abhay Cotex.

Outlook: Stable

CRISIL expects the Bhakti group's financial risk profile to remain
weak, because of its low expected cash accruals and moderately
aggressive capital structure.  The outlook may be revised to
'Positive' if the group is able to substantially improve its cash
accruals, and successfully commission and ramp up the capacity
being set up in Abhay Cotex.  Conversely, the outlook may be
revised to 'Negative' if the group undertakes a larger-than-
expected debt-funded capital expenditure programme, affecting its
capital structure.

                          About the Group

Set up in 2004 by Mr. Ashish Mantri, Bhakti Extraction
manufactures soya bean oil and soya de-oiled cakes. Its production
facility at Jalna has a seed crushing capacity of 250 tonnes per
day (tpd). Bhakti Extraction is also setting up a soya flour mill.
The mill is expected to commence commercial production by the end
of September 2009. Bhakti Extraction holds 26 per cent stake in
Abhay Cotex.

Abhay Cotex was floated by the Bhakti group in 2007. The group is
setting up a cotton seed solvent extraction plant at Jalna under
the company. The plant is expected to begin commercial production
in September 2009.

Bhakti Extraction reported a profit after tax (PAT) of INR28.5
million on net sales of INR744 million for 2007-08 (refers to
financial year, April 1 to March 31), against a PAT of INR12.6
million on net sales of INR511 million for 2006-07.


CIMARON CONSTRUCTIONS: ICRA Rates INR242.9MM LT Loans at 'LBB+'
---------------------------------------------------------------
ICRA has assigned rating of LBB+ to the INR242.90 million long
term loans of Cimaron Constructions (P) Limited.  This rating
indicates inadequate-credit-quality rating assigned by ICRA.

The rating assigned by ICRA factors in the significant hydrology
risks inherent to small run-of-the-river hydro projects like the
Taraila II implemented by CCPL, given that there are no deemed
generation clauses.  The project has been operational for only 4
months and thus the project’s ability to generate the proposed
design energy of 27 Mus on a sustained basis remains yet to be
established.  Thus, the profitability of the project will be
dependent on the company’s ability to maintain operating
parameters within the designed levels given that the tariffs are
fixed at INR2.87 per unit and the costs are not a pass-through.
The project cost also includes approximately INR44 million towards
transmission project and although HPSEB is committed to
reimbursing the same over a five year period, any delays in
receipt of the same may have an adverse impact on the liquidity
and debt servicing given that the company’s debt repayment
schedule specifies fixed dates for repayment of loans taken
towards funding of the transmission project.  The rating however
draws comfort from the firm power purchase agreement (PPA) with
the Himachal Pradesh State Electricity Board (HPSEB) to supply
power for 40 years and limited demand risks given the competitive
tariffs and energy deficit status in northern India.  The rating
also draws comfort from the receipt of project clearances, the
project’s eligibility for capital subsidy from Ministry of New and
Renewable Energy (MNRE) and registry with UNFCC which has already
been completed which will enable it to generate additional revenue
from sale of carbon emission reduction (CER’s) certificates for
being registered as clean development mechanism project with
UNFCC.  Going forward, the ability of the company to meet the
designed performance parameters and availability of adequate water
in the catchment area will be key rating drivers.

                    About Cimaron Constructions

Cimaron Constructions P Ltd is a company promoted by Mr Ramesh
Reddy and family to develop, own and operate a 5 MW (2x2.5 MW))
small hydro power project (referred as Taraila II) in Chamba
District of Himachal Pradesh.  This project is backed by a
Memorandum of understanding (MOU) with Govt of Himachal Pradesh
for implementing of 5 MW SHP on Taraila Nallah, a tributary of
Baira Khad, which in turn is a tributary of Ravi River.


DINESH OIL: CRISIL Cuts Ratings on Various Bank Facilities to 'BB'
------------------------------------------------------------------
CRISIL has downgraded its ratings on the bank loan facilities of
Dinesh Oils Ltd to 'BB/Stable/P4' from 'BBB-/Stable/P3'.

   Facilities                         Ratings
   ----------                         -------
   INR85.0 Million Cash Credit        BB/Stable (Downgraded from
                    Facilities                   BBB-/Stable)
   INR7.3 Million FCNRB (Term Loan)   BB/Stable (Downgraded from
                                                 BBB-/Stable)
   INR12.5 Million Standby Line       BB/Stable (Downgraded from
                   of Credit                     BBB-/Stable)
   INR480 Million Letter of Credit/   P4 (Downgraded from P3)
                  Buyer's Credit
   INR5.0 Million Bank Guarantee      P4 (Downgraded from P3)

The downgrade reflects the deterioration in the company's
financial risk profile because of significant increase in gearing,
and pressures on its profitability leading to weakening in its
debt protection measures.  The company has also increased its
crude palm oil imports in the past two years, and has undertaken
letters of credit-backed buyer's credit transactions for the same.
This has led to increased exposure to foreign exchange risks for
the company, and has also rendered its profitability vulnerable to
fluctuations in CPO prices.

The ratings continue to reflect DOL's strong presence in the
vanaspati oil industry in western Uttar Pradesh, and the
longstanding experience of its promoters in the edible oil
processing industry.  These strengths are partially offset by the
company's weak financial risk profile marked by low net worth and
below-par debt protection indicators, and the high fragmentation
in the industry, leading to low operating margins.

Outlook: Stable

CRISIL expects DOL to maintain its position in the vanaspati oil
market in western UP, driven by its established brand. The outlook
may be revised to 'Positive' in case of higher-than-expected
growth in profitability. Conversely, the outlook may be revised to
'Negative' in case of more-than-expected deterioration in the
company's capital structure because of large debt-funded capital
expenditure and increased working capital requirements.

                         About Dinesh Oils

DOL, promoted by Mr. Dinesh Arora in 1989, is engaged in
manufacturing vanaspati oil, refined oil, and mustard oil under
the Gold Mohar brand.  The company set up its first mustard oil
unit in 1989. DOL started its refined oil manufacturing unit in
the Panki industrial area in 1996, and set up vanaspati
manufacturing operations in the same plant in 1998. The company
started its edible oil and vanaspati operations with an installed
capacity of 18,000 tonnes per annum (tpa).  Over the years, it has
increased its installed capacity to 75,000 tpa. The company mainly
caters to the UP market, which accounts for around 80 per cent of
the company's sales. DOL has 8 consignee agents, and over 350
dealers across UP, and in parts of Bihar.

DOL reported a profit after tax (PAT) of INR13 million on net
sales of INR3.6 billion for 2007-08 (refers to financial year,
April 1 to March 31), as against a PAT of INR7 million on net
sales of INR2.8 billion for 2006-07.


DULI CHAND: CRISIL Places 'BB+' Rating on INR50MM Standby LOC
-------------------------------------------------------------
CRISIL's rating on Duli Chand Narender Kumar Exports Pvt. Ltd.'s
bank facilities continues to reflect Duli Chand's weak financial
risk profile, and exposure to risks relating to unfavorable
changes in government regulations, increasing raw material prices,
and deficient monsoons.  These weaknesses are partially offset by
Duli Chand's strong operating income growth, improving cash
accruals and operating efficiency, and established presence in the
basmati rice export market.

   Facilities                              Ratings
   ----------                              -------
   INR 2200 Million Cash Credit Limit*     BB+/Positive
   (Enhanced from INR 1350 million)
   INR 50 Million Stand By Line of         BB+/Positive (Assigned)
                  Credit
   INR 625 Million Term Loan^              BB+/Positive
   (Enhanced from INR 180 million)

   *Fungible with Export packing credit (up-to INR 1100.0
    million), bill discounting, (up-to INR 50.0 million) & Foreign
    bills payable (up-to INR 400.0 million)
   ^Includes proposed limits of INR 290 million.

Outlook: Positive

CRISIL believes that Duli Chand's credit risk profile will improve
over the near to medium term if the company sustains its healthy
operating income growth and cash accruals, while maintaining its
current capital structure.  This is despite the continued delay in
Duli Chand's planned equity infusion through private placement.
The rating may be upgraded in case of continued healthy accruals
with efficient control over working capital requirements, leading
to a comfortable financial risk profile. Conversely, the outlook
may be revised to 'Stable' if the company's financial risk profile
weakens because of pressure on margins, larger-than-expected debt-
funded capex, and large incremental working capital requirement.

                         About Duli Chand

Set up in 1979, Duli Chand mills, processes, and sells plain and
par-boiled basmati rice in the export and domestic markets.  In
2008-09 (refers to financial year, April 1 to March 31), the
company exported around 50 per cent of its output. Duli Chand's
rice milling facility at Karnal (Haryana) has capacity of 24
tonnes per hour.

Duli Chand reported a profit after tax (PAT) of INR259 million on
net sales of INR4.02 billion for 2008-09, as against a PAT of
INR109 million on net sales of INR2.86 billion for 2007-08.


ENERGY LEADER: CRISIL Cuts Ratings on INR254.8MM LT Loan to 'B-'
----------------------------------------------------------------
CRISIL has downgraded its rating on the above-mentioned long-term
bank facilities of Energy Leader Batteries India Ltd to
'B-/Negative' from 'BB+/Positive', while reaffirming the rating on
the short-term facility at 'P4'.

   Facilities                       Ratings
   ----------                       -------
   INR280 Million Cash Credit       B-/Negative (Downgraded from
                                                 'BB+/Positive')
   INR254.8 Million Long Term Loan  B-/Negative (Downgraded from
                                                 'BB+/Positive')
   INR342 Million Letter of Credit/ P4 (Reaffirmed)
                  Bank Guarantee*

   * Includes proposed limit of INR192 million.

The rating downgrade reflects deterioration in Energy Leader's
liquidity because of significantly lower-than-expected level of
sales for, and losses in, 2008-09 (refers to financial year,
April 1 to March 31).   The downgrade also factors in pressure,
both current and expected, on the company's business risk profile
because of failure of its sales arrangement with Aster
Infrastructure Pvt. Ltd. in 2008-09.

The ratings continue to reflect Energy Leader's moderately
leveraged funding structure and the fact that the company is a new
entrant in the highly competitive industrial battery segment. The
impact of these weaknesses is mitigated by the good growth
prospects of the industrial battery industry and the strong
industry background of the promoters.

Outlook: Negative

CRISIL expects Energy Leader's liquidity to remain weak over the
medium term because of the company's significantly lower-than-
expected cash accruals; the liquidity pressures may adversely
affect the company's ability to service its debt obligations. The
rating may be downgraded further if Energy Leader over draws its
working capital bank lines continually, or continues to report
losses, leading to further deterioration in its financial risk
profile. Conversely, the outlook may be revised to 'Stable' in
case of a significant improvement in the company's cash accruals
and liquidity.

                        About Energy Leader

Incorporated in February 2007, Energy Leader has its registered
office in Hyderabad and wholly-integrated manufacturing facility
near Vijayawada.  The company manufactures valve-regulated lead
acid batteries for industrial applications.


FORD MOTOR: On Track to Start Selling Small Car in India
--------------------------------------------------------
The Wall Street Journal reported that Ford Motor Co. said Thursday
it's on track to start selling its first small car in India from
early 2010 as part of its strategy to make the country a global
production hub.

WSJ said the car will be built at a factory near the southern city
of Chennai where production is being doubled to 200,000 cars a
year.  According to the report, Ford is also building a new plant
at the same facility that will have an annual capacity to make
250,000 diesel engines when it goes onstream next year.

Headquartered in Dearborn, Michigan, Ford Motor Co. (NYSE: F) --
http://www.ford.com/-- manufactures or distributes automobiles in
200 markets across six continents.  With about 260,000 employees
and about 100 plants worldwide, the company's core and affiliated
automotive brands include Ford, Jaguar, Land Rover, Lincoln,
Mercury, Volvo, Aston Martin, and Mazda.  The Company provides
financial services through Ford Motor Credit Company.  The Company
has operations in Japan in the Asia Pacific region.  In Europe,
the Company maintains a presence in Sweden, and the United
Kingdom.  The Company also distributes its brands in various
Latin-American regions, including Argentina and Brazil.

Ford Motor carries a 'Ca' issuer credit and a 'Caa3' long term
corporate ratings, with negative outlook, from Moody's.

Fitch Ratings said via Business Wire on August 26 that it has
revised the Rating Outlook on Ford Motor Company and Ford Motor
Credit Company to Stable from Negative.  In addition, the Issuer
Default Rating of Ford is affirmed at 'CCC'.


GAYATRI HI-TECH: ICRA Puts 'LBB-' Rating on INR3.17BB Term Loan
---------------------------------------------------------------
ICRA has assigned a LBB- rating to the INR3.17 billion term loan
of Gayatri Hi-Tech Hotels Limited .  LBB- is an inadequate-credit-
quality rating assigned by ICRA.

The assigned rating takes into account the experience of the
management team and GHHL’s tie-up with Hyatt Hotels which would
provide operational, sales and marketing support to the project.
The rating is however constrained by the delays in project
implementation and competitive supply scenario in the Hyderabad
region.  The repayment for the INR2.25 billion term loan
originally sanctioned would need to be refinanced or rescheduled
in order to match operational cash inflows.  The full commercial
operation is likely to be deferred by 18 months.  The enhanced
project cost of INR1.5 billion would require additional funding
and the company is negotiating with existing lenders to tie-up for
part of this funding requirement. GHHL plans to bring in
incremental equity to maintain project debt to equity ratio at 1.6
times.

The project cost of INR5.15 billion is estimated to be funded by
INR1.98 billion of equity and INR3.17 billion of debt.  Out of the
total debt requirement, INR2.25 billion is tied up while the
company is seeking approvals from the consortium bankers to
sanction the additional loan facilities amounting to INR0.92
billion.  GHHL is also negotiating rescheduling of the repayment
obligation to cover for the implementation delay and ensure
matching operational cash inflow to service the debt.  The project
is likely to be commissioned by October 2010.  The project would
have 211 rooms and 44 service apartments.

Prime location at Banjara Hills in Hyderabad for the project would
enhance accessibility and visibility for the property.  The
hospitality sector demand has been subdued resulting in lower
occupancies and diminished Average Daily Rate (ADR) for the
existing similar category hotels in the city for the year 2008-09.
Whereas on the supply front considerable activity is expected as
many leading brands are planning to set up capacities in the city.
With significant capacities slated to be introduced the
competitive scenario is expected to intensify further in the near
future.

GHHL has employed renowned consultants and architects including
John Portman and Associates (Principal Architect) and Hirsch
Bedner Associates (Interior Designer) for the project.  The civil
work is being done by Gayatri Projects Limited, a group company.
GHHL has signed a 25 year agreement with Hyatt International SEA,
(Pte) Ltd. to provide sales and marketing services for the Hotel
at a charge of 2.2% of revenue.

                      About Gayatri Hi- Tech

Gayatri Hi- Tech Hotels Limited is in the process of constructing
a 5-Star super deluxe luxury hotel consisting of 211 guest rooms
and 44 service apartments at Hyderabad. The

integrated hotel cum-service apartment project is proposed under
brand name of Park Hyatt with specialty restaurants, lounge, bar,
meeting rooms, board rooms, banqueting facility, swimming pool,
health club and spa. The company has signed a 25 year agreement
with Hyatt Hotels for operations and marketing of the project. The
hotel is expected to be operational by October 2010. Promoted by
Mr. T Subarami Reddy and his family, GHHL is a closely held public
limited company.  The promoter group through other companies has
interests in construction, real-estate development, sugar,
chemicals, film screening and financial service.


HYDRO PRIVATE: ICRA Places 'LBB' Rating on INR24.94MM LT Loans
--------------------------------------------------------------
ICRA has assigned rating of LBB to the INR24.94 million long term
loans of AT Hydro Private Limited.  This rating indicates
inadequate-credit-quality rating assigned by ICRA.

The inadequate-credit-quality rating assigned by ICRA factors in
execution risks that are typical of green-field projects and
implementation risks arising out of factors like risks of
geological surprises and seismic risks.  Further, the project once
operational will also be subject to hydrology risks given that
there are no deemed generation clauses.  The rating is also
constrained by relatively high project cost, high proposed gearing
and other capital expenditure being planned by the promoter's
family.  Further, the profitability of the project will be
dependent on the company's ability to maintain project costs and
operating parameters within the designed levels given that the
tariffs are fixed at INR2.50 per unit and the costs are not a
pass-through.  The project has already witnessed some delays and
cost over runs although with the project nearing completion,
likelihood of any further cost escalations is limited. The project
cost also includes INR44 million towards transmission project and
although HPSEB is committed to reimbursing the same over a five
year period, any delays in receipt of the same may have an adverse
impact on the liquidity and debt servicing given that the
company's debt repayment schedule specifies fixed dates for
repayment of loans taken towards funding of the transmission
project.  The rating however draws comfort from the firm power
purchase agreement (PPA) with the Himachal Pradesh State
Electricity Board (HPSEB) to supply power for 40 years and limited
demand risks given the competitive tariffs and energy deficit
status in northern India.  The rating also draws comfort from the
financial closure of the project, receipt of project clearances,
the project's eligibility for capital subsidy from MNES and
registry with UNFCCC as clean development mechanism (CDM) project
for power generation which will enable it to generate additional
revenue from sale of carbon emission reduction (CER's)
certificates.  Going forward, the ability of the company to
complete the project with minimal cost and time overruns, meet the
designed performance parameters and availability of adequate water
in the catchment area will be key rating drivers.

                           About AT Hydro

AT Hydro Private Limited is a company promoted by Mr Ramesh Reddy
and family members to develop, own and operate a 5 MW (2x2.5 MW))
small hydro power (SHP) project (referred as Upper Taraila) in
Chamba District of Himachal Pradesh.  This project is backed by a
Memorandum of understanding with Govt of Himachal Pradesh for
implementing of 5 MW SHP on Taraila Nallah, a tributary of Baira
Khad, which in turn is a tributary of Ravi River.


INDUS BIO: CRISIL Assigns 'D' Ratings on INR66.8 Million LT Loan
----------------------------------------------------------------
CRISIL has assigned its ratings of 'D/P5' to the bank facilities
of Indus Bio Sciences Pvt Ltd., as IBPL has delayed servicing of
its term loan obligations because of weak liquidity.

   Facilities                       Ratings
   ----------                       -------
   INR66.8 Million Long-Term Loan   D (Assigned)
   INR32.0 Million Cash Credit      D (Assigned)
   INR4.8 Million Bank Guarantee    P5 (Assigned)

                          About Indus Bio

Set up in 2001 by Bhaskar R. Venepalli, Srinivas Rao Chittineni,
and Venkatiah Sunku, IBPL provides lead optimisation, medicinal
chemistry, contract research and development, scale-up synthesis
of pharmaceutical intermediates, and process development services;
it also manufactures intermediates and active pharmaceutical
ingredients (APIs).  The company undertakes its entire operations
through CiVentiChem LLC, which is owned by the same promoters and
is engaged in the same business.

IBPL is setting up a large scale chemical manufacturing plant,
with a capacity of 30 tonnes per annum, in Hyderabad, at a cost of
INR130 million.  IBPL reported a profit after tax (PAT) of INR4.1
million on net sales of INR49.9 million for 2007-08 (refers to
financial year, April 1 to March 31), against a PAT of INR2.4
million on net sales of INR43.7 million for 2006-07.


JHAMB ENTERPRISES: CRISIL Places 'B-' Rating on INR101MM Term Loan
------------------------------------------------------------------
CRISIL has assigned its ratings of 'B-/Stable/P4' to the bank
facilities of Jhamb Enterprises Pvt. Ltd.

   Facilities                            Ratings
   ----------                            -------
   INR170.0 Million Cash Credit Limit    B-/Stable (Assigned)
   INR101.0 Million Term Loan*           B-/Stable (Assigned)
   INR30.0 Million Letter of Credit      P4 (Assigned)

   * Including a Proposed Limit of INR60.4 Million.

The ratings reflect JEPL's weak financial risk profile, marked by
high gearing, and exposure to risks relating to competitive
pressures and unfavorable changes in government policy on minimum
support prices.  However, these weaknesses are partially offset by
the benefits that the company derives from its status as exclusive
supplier to Malwa group of companies, which helps mitigate demand/
inventory risks.

Outlook: Stable

CRISIL believes that JEPL will maintain stable operating margins
and the operating income will grow over the medium term on the
back of established relationships with the Malwa group.  However,
JEPL's capital structure is expected to remain weak, given its
proposed debt funded diversification into the dairy business.  The
outlook may be revised to 'Positive' if significant increase in
cash accruals leads to improvement in JEPL's capital structure.
Conversely, the outlook may be revised to 'Negative' if the
company undertakes large, debt-funded capital expenditure, and its
operating margins deteriorate substantially over the medium term.

                      About Jhamb Enterprises

Set up in 1992 by Mr. Prem Sagar Jhamb, JEPL gins and presses
cotton. It is sole purchasing agent of cotton for the Malwa group,
which includes Malwa Cotton Spinning Mills Ltd, Malwa Industries
Ltd, and Oswal Knit India Ltd.  The company also trades in items
such as acrylic, viscose, cotton seeds, yarn and fabric. The
company's manufacturing unit at Fazilka (Punjab) gins cotton and
extracts oil from cotton seeds, while its unit at Ludhiana
(Punjab) manufactures warp-knitted fabric.  JEPL reported a profit
after tax (PAT) of INR2 million on net sales of INR1955 million
for 2007-08 (refers to financial year, April 1 to March 31), as
against a PAT of INR2.9 million on net sales of INR1454 million
for 2006-07.


METAL CLOSURES: CRISIL Cuts Rating on INR207.8MM LT Loan to 'D'
---------------------------------------------------------------
CRISIL has downgraded its rating on the bank loan facilities
of Metal Closures Pvt Ltd. (Metal Closures) to 'D/P5' from
'BB-/Negative/P4'.

   Facilities                             Ratings
   ----------                             -------
   INR207.80 Million Long Term Loan       D (Downgraded from
                                             BB-/Negative)

   INR257.20 Million Cash Credit Limits   D (Downgraded from
                                             BB-/Negative)
   INR340.00 Million Letter of Credit     P5 (Downgraded from P4)
   INR10.00 Million Bank Guarantee        P5 (Downgraded from P4)

The downgrade reflects delay by Metal Closures in repayment of its
debt obligations, owing to stretched liquidity.

                      About Metal Closures

Incorporated in 1977 in Bangalore, Metal Closures manufactures
metal packaging material, including crown corks, shoe-care
products, dry cell battery jackets and components, and twist-off
closures.  The company's clientele include multinationals such as
Coca Cola, Pepsi Foods, Hindustan Lever, Reckitt Benckiser, Glaxo
Smith Kline, Panasonic Batteries, Saab-Miller, Seagram, and Sara
Lee. Metal Closures has manufacturing units at Kanakapura and
Kunigal in Karnataka, and Kal-amb in Himachal Pradesh.

For 2008-09 (refers to financial year, April 1 to March 31), Metal
Closures reported a profit after tax (PAT) of INR78.3 million on
net sales of INR1547.9 million, as against a PAT of INR54.9
million on net sales of INR1119.9 million for 2007-08.


MITTER FASTENERS: ICRA Assigns 'LBB-' Rating on Bank Limits
-----------------------------------------------------------
ICRA has assigned an LBB- rating to the INR175.1 million fund-
based bank limits (INR105.1 million Term Loan and INR70 million
Cash Credit facilities) of Mitter Fasteners.  This is inadequate-
credit-quality rating assigned by ICRA to long term debt
instruments.  ICRA has also assigned an A4 rating to the INR17
million non-fund based bank limits (INR15.0 million Letter of
Credit and INR2 million Bank Guarantee) of Mitter Fasteners.  This
is risk-prone-credit quality assigned by ICRA to short-term debt
instruments.

The non-investment grade ratings factor in relatively high
operating risks in its core business of manufacturing of fasteners
and the high financial risks arising out of its adverse capital
structure.  The firm's high operating risk profile arises out of
the low value addition of its operations, high competitive
pressures arising out of low entry barriers and fragmented nature
of industry and vulnerability to steel price movement.  ICRA also
takes into account the modest scale of operations with limited
bargaining power vis-a-vis suppliers and customers and current
slowdown in the automotive sector (a key consuming industry) which
is likely to have an adverse impact on turnover and profits.  The
rating reflects Mitter Fasteners stretched financial profile
characterized by its modest profitability, low cash accruals and
leveraged capital structure.  However, ICRA also takes into
cognizance the longstanding promoter's experience, operational
excellence and strong relationship that the firm enjoys with its
customers.

                      About Mitter Fasteners

Established in 1982, Mitter Fasteners, a proprietorship firm,
promoted by Mr. Mukesh Sahani and his family members is involved
in the business of manufacturing of fasteners and other fabricated
items.  The firm manufactures cold forged products, sheet metal
components, and machined products.  It supplies its products
directly to reputed and established Original Equipment
Manufacturer (OEM) and ancillary units.  The firm has set up its
manufacturing facility in Ludhiana and is also setting up a new
plant at Lucknow.


MUKESH STEELS: ICRA Assigns 'LBB+' Rating on INR120 Million Limits
------------------------------------------------------------------
ICRA has assigned an LBB+ rating to the INR120 million fund based
limits of Mukesh Steels Limited.  The rating indicates inadequate-
credit-quality rating in the long term.  ICRA has also assigned an
A4+ rating to INR100 million non fund based limits of Mukesh
Steels Limited.  The rating indicates risk-prone-credit-quality
rating assigned by ICRA to short term debt instruments.

ICRA's non-investment grade rating factors in risks arising out of
factors such as the cyclicality inherent in the steel business,
volatility in production of steel ingots and rounds which has
resulted in volatile manufacturing sales over the years, highly
competitive and fragmented nature of industry and susceptibility
of its margins to raw material price fluctuations.  The rating is
also constrained by the low capacity utilization levels on account
of tight power supply situation in Ludhiana, Punjab where the
company's operations are located.  These factors have resulted in
low profitability indicators as reflected by low operating margins
of 2.49% and net profit margins of 0.28% in FY09.  Although the
company's gearing is low at 0.13 times, below average
profitability indicators have resulted in modest coverage
indicators.  The ratings are however supported by the long
experience and established track record of promoters in the steel
industry, low gearing levels of the company and moderate client
concentration risk.

                        About Mukesh Steels

MSL was originally incorporated on August 29, 1981 under the
Companies Act, 1956 as Mukesh Steels Private Limited.  The Company
was converted into public limited company on October 09, 1987 and
the name changed to Mukesh Steels Limited.  The company is listed
in Ludhiana Stock Exchange, Delhi Stock Exchange, Vadodara Stock
Exchange and Bombay Stock Exchange.  MSL in the business of
manufacture of steel ingots and re-rolled products.  The main
application of products manufactured by MSL is in the bicycle,
auto parts, scaffolding, forging and hand tool industries. MSL
also sells ingots manufactured in the furnace division to various
industries including other rolling mills.


PRADIP OVERSEAS: CRISIL Downgrades Rating on INR239.2 Loan to 'BB'
------------------------------------------------------------------
CRISIL has downgraded its ratings on the bank facilities of Pradip
Overseas Ltd. to 'BB/Negative/P4' from 'BBB/Stable/P3+'.

   Facilities                       Ratings
   ----------                       -------
   INR 435.00 Million Cash Credit   BB/Negative (Downgraded from
                                                   BBB/ Stable)
   INR 239.20 Million Term Loan     BB/Negative (Downgraded from
                                                   BBB/ Stable)
   INR 650.00 Million Proposed      BB/Negative (Downgraded from
               Term Loan                       BBB/ Stable)
   INR 800.00 Million Proposed      BB/Negative (Downgraded from
       Long Term Bank Facility                     BBB/ Stable)
   INR 459.00 Million Packing Credit    P4 (Downgraded from P3+)
   INR 306.00 Million Foreign Bills     P4 (Downgraded from P3+)
             Discounting / Purchase
   INR 772.50 Million Letter of Credit  P4 (Downgraded from P3+)
   INR 22.50 Million Bank Guarantee     P4 (Downgraded from P3+)
   INR200.00 Million Proposed Short     P4 (Downgraded from P3+)
                 Term Bank Facility

The rating action reflects deterioration in the company's
financial risk profile due to significant increase in its debt
levels; this debt has been contracted to fund the high incremental
working capital requirement on account of strong operating income
growth and working capital intensive nature of operations.
Despite robust growth in operating income, the company's cash
accruals have not grown significantly due to pressure on margins.
In the absence of fresh equity infusion, this has led to strained
liquidity position for the company.

Outlook: Negative

CRISIL expects Pradip's liquidity to remain stretched because of
its increasing working capital requirements.  The company is
planning a large capital expenditure (capex) programme, which, if
implemented without fresh equity infusion, will lead to a further
deterioration in its capital structure and financial risk profile.
The rating may be downgraded in case of further deterioration in
the company's financial risk profile.  Conversely, the outlook
could be revised to 'Stable' if there is improvement in Pradip's
liquidity and if the company raises adequate capital soon enough
through its proposed initial public offering.

                       About Pradip Overseas

Ahmedabad-based Pradip is a manufacturer and processor of home-
linen textiles.  Its products include cotton- and polyester-
blended bed sheets, duvet covers, fitted sheets, pillow covers,
and curtains.  The company currently operates two textile
processing units, with a combined installed capacity to process
115.5 million meters per annum (mpa) of home linen.  Pradip is
expanding its wide-width home linen capacity by adding a fabric
processing unit (with a capacity of 33.0 million mpa).  This will
increase the company's total home linen processing capacity to
148.5 million mpa.

For 2008-09 (refers to financial year, April 1 to March 31),
Pradip reported a profit after tax (PAT) of INR443.6 million on an
operating income of INR11705.8 million, against a PAT of INR390.2
million on net sales of INR6580.2 million in the previous year.


RAM INFRASTRUCTURE: ICRA Rates Long Term Bank Facilities at 'LB+'
-----------------------------------------------------------------
ICRA has assigned a long term rating of LB+ and short term rating
of A4, to fund based and non-fund based limits of Ram
Infrastructure Limited.  LB+ is the risk-prone-credit-quality
rating assigned by ICRA to long term debt instruments.  A4
indicates risk-prone-credit-quality rating assigned by ICRA to
short term debt instruments.

                              Amount         Rating Outstanding
                            (Million)            August 2009
                            ----------       ------------------
   Fund Based limits        INR1019.00             'LB+'
   Non-Fund Based limits      INR80.00             'LB+/A4'

The ratings are constrained by overall high indebtedness of RIL &
its subsidiaries and the dependence of various subsidiaries on RIL
for their funding requirements.  This increases the overall
gearing of the group and exerts periodic liquidity pressure on
RIL.  The funds raised in RIL have been used to support its
subsidiaries executing two BOT projects and any delay in
completion of these projects would have an adverse impact on the
debt servicing capability of RIL.  ICRA notes that the short term
liquidity would be a major concern as RIL may require additional
funds for undertaking major maintenance of its existing toll roads
and completion of phase II of Malegaon toll road project.
Moreover, RIL has provided corporate guarantee for the debt taken
up by two of its subsidiaries -- Pranjal Infrastructure Private
Limited (PIPL) and Nagar Kopargaon Infrastructure Private Limited
(NKIPL) which are both under project implementation phase and are
not expected to generate any revenues at least till November 2009.
The cash flows generated from RIL in future may not be adequate to
meet the contractual debt obligations of all the subsidiaries.

The ratings take into account a certain provision in the
concession agreement which allows for the downward revision in
toll rates by 10% by Government of Maharashtra (GoM) once during
the concession period.  Nevertheless, the rating takes into
account the favorable business risk profile of RIL by virtue of
the fact that two projects- Malegaon toll road project and
Dharangaon bridge project are operational with established traffic
density.  The rating also favorably factors in the experience of
the promoters, the increase in toll rates after every three years,
no significant alternate route risk and the possibility of
extension in concession period for Malegaon toll road project
which may lead to additional cash flows in the long term.

                     About Ram Infrastructure

Ram Infrastructure Limited was incorporated on January 24, 2001,
by Mr. Umakant Dinkar Nehete for undertaking projects on Build
Operate Transfer (BOT) basis.  Mr. Nehete is a civil engineer and
has professional experience of around 20 years as a PWD contractor
for GoM in the past.  RIL started business by undertaking
construction of two major and minor bridges in Jalgaon on BOT
basis (Dharangaon Project).  The first project undertaken by RIL
(Dharangaon Project) was completed in March 2003, two months ahead
of schedule at the total cost of INR33.5 million.  This project
was followed by another BOT project (Malegaon project) awarded to
RIL in 2003 and the scope of work was divided into two phases with
lengths of 86.4 Km (Phase I) and 13.45 Km (Phase II).  Phase I was
completed in June 2005.  While Phase II is still under
construction, the tolling started as per schedule in FY 2006.  The
two toll plazas of Malegaon project witnessed significant traffic
growth over the past few years leading to RIL generating OI of
INR182.70 million and PAT of INR22.9 million in FY 2009.
Subsequently RIL incorporated three subsidiaries -- Hari
Infrastructure Private Limited (HIPL), Pranjal Infrastructure
Private Limited (PIPL) and Nagar Kopargaon Infrastructure Private
Limited (NKIPL) for undertaking various BOT projects awarded by
PWD, GoM.  The project under HIPL achieved COD in 2007 and is
currently an operational toll road while NKIPL and PIPL are
expected to achieve COD in FY 2010 and FY 2011 respectively.


RAMYA SPINNING: ICRA Puts 'LBB' Rating on INR162.9MM FB Facilities
------------------------------------------------------------------
ICRA has assigned LBB rating indicating inadequate-credit-quality
to INR162.9 million fund based facilities of Ramya Spinning Mills
Private Limited.

The assigned rating factors in company's weak financial risk
profile characterized by stretched coverage indicators,
vulnerability to high degree of competition given the small scale
of its operations and commoditized nature of the cotton yarn.
ICRA notes that the operating performance of the company is
vulnerable to power supply situation from state electricity board
in the absence of adequate power backup facility.  The rating
however, favourably factors in promoter's experience in cotton
trading, the location advantage on account of close proximity to a
major cotton growing area and low power tariffs in the state.
ICRA draws comfort from the reduced repayment obligations post
rescheduling of term loans in May 2009.

                       About Ramya Spinning

Incorporated in 2000, Ramya Spinning Mills Private Limited is
engaged in production of 100% grey cotton yarn with the average
count of 40s.  RSMPL has spinning facilities located in Guntur
district of Andhra Pradesh.  RSMPL commenced operations in June
2004 with 6,336 spindles and subsequently increased its production
capacity to 12,096 spindles by 2006-07.


SARVESH REFRACTORIES: CRISIL Assigns 'D' Rating on INR95.1MM Loan
-----------------------------------------------------------------
CRISIL has assigned its rating of 'D' to the bank facilities of
Sarvesh Refractories Ltd.

   Facilities                         Ratings
   ----------                         -------
   INR240 Million Cash Credit Limits  D (Assigned)
   INR95.1 Million Term Loan          D (Assigned)

The ratings factor in the default by Sarvesh on its term loan
obligations owing to weak liquidity.

                    About Sarvesh Refractories

Sarvesh, a closely-held company, manufactures refractory products.
The company's facilities at Rourkela and Ahmedabad have an
aggregate capacity of 72,000 tonnes per annum (tpa).  Sarvesh
reported a profit after tax (PAT) of INR24 million on net sales of
INR762 million for 2007-08 (refers to financial year, April 1 to
March 31), as against a PAT of INR19 million on net sales of
INR722 million for 2006-07.


SATYAM COMPUTER: Fast-Track Court for Satyam Case Approved
----------------------------------------------------------
The Andhra Pradesh High Court has approved setting up a fast track
court to settle the multi-crore accounting fraud in Satyam
Computers Services Limited, now known as Mahindra Satyam, The
Times of India reports citing corporate affairs minister Salman
Khurshid.

The report quoted Mr. Khurshid as saying that "The Andhra Pradesh
High Court has agreed to our appeal and has already given an in-
principal approval to set up a fast track court for the settlement
of the Satyam fraud issue.  We're now awaiting the final
notification."

According to the Times, the minister said investigation into the
Satyam case had almost been completed by the Central Bureau of
Investigation (CBI).  "The CBI probe is almost over and now we are
waiting for the report from US' Internal Revenue Services (IRS),"
Mr. Khurshid said.

                           Fraud Revelation

As reported in the Troubled Company Reporter-Asia Pacific, on
January 7, 2009, former Satyam Chairman Ramalinga Raju resigned
after saying he manipulated the company's accounts.  Specifically,
Mr. Raju said that as of September 30, 2008, the company's balance
sheet carries:

  (1) inflated (non existent) cash and bank
      balances of 50.40 billion rupees (US$1.04 billion)
      (as against 53.61 billion reflected in the books);

  (2) an accrued interest of 3.76 billion rupees which
      is non existent;

  (3) an understated liability of 12.30 billion rupees
      on account of funds arranged by Mr. Raju; and

  (4) an overstated debtors position of
      4.90 billion rupees (as against 26.51 billion
      reflected in the books).

Mr. Raju's confession prompted investigations into the company by
different entities including Andhra Pradesh state police, the U.S.
Securities and Exchange Commission and the Securities and Exchange
Board of India.  Several groups also considered filing class
action suits against the company.

A three-member board was subsequently created by the government
which appointed KPMG and Deloitte Touche Tohmatsu for
re-evaluation of the software company's books.

Mr. Raju was later found to have invented more than one quarter
of Satyam's workforce and used fictitious names to siphon INR200
million (US$4.1 million) a month out of the company.

The TCR-AP reported on March 9, 2009, that Satyam won approval to
sell stake in itself, as the company seeks to restore investor
confidence and stem client defections.

Satyam said it received approval from the Securities and Exchange
Board of India to facilitate a global competitive bidding process
which, subject to receipt of all approvals, contemplates the
selection of an investor to acquire a 51% interest in the company.

On April 14, 2009, the TCR-AP reported that Tech Mahindra Limited
emerged as the top bidder with an offer of INR58 a share for a 31
per cent stake in Satyam Computer Services Limited, beating strong
rival L&T.  Tech Mahindra would acquire the stake in an all-cash
deal, followed by an open offer for a 20 percent stake to take
management control of the company.

On June 21, 2009, Satyam unveiled its new brand identity,
"Mahindra Satyam."

                        About Satyam Computer

Headquartered in Secunderabad, India, Satyam Computer Services
Limited (BOM:500376) -- http://www.mahindrasatyam.net/-- is a
global information technology (IT) services provider, offering a
range of services, including systems design, software development,
system integration and application maintenance.  Satyam offers a
range of IT services to its customers, including application
development and maintenance, consulting and enterprise business
solutions, extended engineering solutions and infrastructure
management services.  The Company provides services to customers
from various industries, including insurance, banking and
financial services, manufacturing, telecommunications,
transportation and engineering services.  Satyam BPO Limited
(Satyam BPO), a majority-owned subsidiary of the Company is
engaged in providing business process outsourcing (BPO) services.
Satyam operates in two segments: IT services and BPO services.  As
of July 6, 2009, Tech Mahindra Limited had acquired approximately
31.04% of the Company's outstanding shares of common stock.


SKH METALS: ICRA Puts 'LBB+' Rating on INR1 Bln Bank Facilities
---------------------------------------------------------------
ICRA has assigned LBB+/ A4+ rating to the INR1.0 billion bank
facilities of SKH Metals Limited.  LBB is the inadequate credit-
quality rating assigned by ICRA to long term debt instruments.  A4
is the risk-prone-credit-quality rating assigned by ICRA to short
term debt instruments.

The rating is constrained by SKH’s high client concentration risk,
high gearing, and moderate debt coverage indicators.  SKH faces
high client concentration risk, being focused predominantly on
MSIL (with 96% sales to MSIL, including through Tier II route,
during 2008-09).  This risk, however, is partly mitigated on
account of MSIL’s status as a leader in the domestic passenger car
industry and the strong business relationship between MSIL and
SKH.  The company’s high debt funded capacity expansion has led to
increasingly high gearing (4.8x as on March 31, 2009) even though
some portion of the debt pertains to inter-corporate deposits and
tooling advances from MSIL.  With large capex outlay in 2008-09
towards setting up of a new plant at Manesar (Haryana), the
company’s return on capital employed (RoCE) is likely to remain
impacted over the medium term.  The rating, however, recognizes
SKH’s favorable ownership pattern, strong business position with
Maruti Suzuki India Limited (MSIL), and a diversified product
portfolio.  SKH has maintained a steady share of business for the
products supplied to MSIL, besides benefiting from gaining
business for additional product lines from MSIL.

Recent Results

In 2008-09, SKH’s Net Sales at INR4,706 million reported a growth
of 36.2% over the previous year.  The company’s operating profit
before depreciation, interest and tax at INR410 million reported a
growth of 49.5% in 2008-09 over the previous year. SKH’s profit
after tax (PAT) increased from Rs.84 million in 2007-08 to Rs.111
million in 2008-09.

                          About SKH Metals

SKH Metals Limited was incorporated in 1986 as Mark Auto
Industries Limited as a joint venture between MSIL (48.7% equity
stake) and other Indian Promoters including Mr. Ashok Madhukar,
Mr. Ratan Kapur, Mr. K.M. Talwar, and M/s Madhukar Engineering
(with a combined equity stake of 51.3%).  The manufacturing
facilities of the company were set up in the MSIL JV Complex
(Gurgaon) for the supply of critical sheet metal components and
assemblies to MSIL.  In 2005, the Krishna Group led by its
chairman Mr. Ashok Kapur bought out the 51.3% equity stake held by
the initial promoters and the remaining shares continued to remain
with MSIL.

SKH Metals is the largest manufacturer of Fuel Tanks in India.  In
addition, it also manufactures Suspension Frames, Suspension Arms,
Pre-Catalyzers, Axle Housings and other sheet metal welded
assemblies for passenger vehicles.  The company has one
manufacturing facility located at Gurgaon (Haryana) and two at
Manesar (Haryana).


TARELA POWER: ICRA Assigns 'LBB' Rating on INR282.1 Mln LT Loans
----------------------------------------------------------------
ICRA has assigned a rating of LBB to the INR282.10 million long
term loans of Tarela Power Limited.  This rating indicates
inadequate-credit-quality rating assigned by ICRA.

The rating assigned by ICRA factors in execution risks that are
typical of green-field projects and implementation risks arising
out of factors like risks of geological surprises and seismic
risks.  Further, the project once operational will also be subject
to hydrology risks given that there are no deemed generation
clauses.  The rating is also constrained by relatively high
project cost, high proposed gearing and other capital expenditure
being planned by the promoter’s family.  Further, the
profitability of the project will be dependent on the company’s
ability to maintain project costs and operating parameters within
the designed levels given that the tariffs are fixed at INR2.87
per unit and the costs are not a pass-through. The project has
already witnessed around 12 months’ delay and cost over runs.  The
project cost also includes approximately INR60 million towards
transmission project and although HPSEB is committed to
reimbursing the same over a five year period, any delays in
receipt of the same may have an adverse impact on the liquidity
and debt servicing given that the company’s debt repayment
schedule specifies fixed dates for repayment of loans taken
towards funding of the transmission project. The rating however
draws comfort from the firm power purchase agreement (PPA) with
the Himachal Pradesh State Electricity Board (HPSEB) to supply
power for 40 years and limited demand risks given the competitive
tariffs and energy deficit status in northern India.  The rating
also draws comfort from the receipt of project clearances, the
project’s eligibility for capital subsidy from Ministry of New and
Renewable Energy (MNRE) and registry with UNFCC which will enable
it to generate additional revenue from sale of carbon emission
reduction (CER’s) certificates for being registered as clean
development mechanism project with UNFCC. Going forward, the
ability of the company to complete the project with minimal cost
and time overruns, meet the designed performance parameters and
availability of adequate water in the catchment area will be key
rating drivers.

                         About Tarela Power

Tarela Power Limited is a company promoted by Mr Ramesh Reddy and
family members to develop, own and operate a 5 MW (2x2.5 MW))
small hydro power project (referred as Taraila IIIa) in Chamba
District of Himachal Pradesh.  This project is backed by a
Memorandum of understanding (MOU) with Govt of Himachal Pradesh
for implementing of 5 MW SHP on Taraila Nallah, a tributary of
Baira Khad, which in turn is a tributary of Ravi River.


TEJASSARNIKA HYDRO: ICRA Assigns 'LBB-' Rating on INR521.6MM Loans
------------------------------------------------------------------
ICRA has assigned rating of LBB- to the INR521.6 million of long
term loans and INR20.1 million of working capital lines of
Tejassarnika Hydro Energies (P) Limited.  This rating indicates
inadequate-credit-quality rating assigned by ICRA.

The inadequate-credit-quality rating assigned by ICRA factors in
execution risks that are typical of green-field projects and
implementation risks arising out of factors like risks of
geological surprises and seismic risks.  Further, the project once
operational will also be subject to hydrology risks given that
there are no deemed generation clauses.  The rating is also
constrained by relatively high project cost, high proposed gearing
and other capital expenditure being planned by the promoter's
family.  Further, the profitability of the project will be
dependent on the company's ability to maintain project costs and
operating parameters within the designed levels given that the
tariffs are fixed at INR2.87 per unit and the costs are not a
pass-through (as applicable to small hydro power plants).

The project has already witnessed some delays and cost over runs
and the company is yet to obtain financial closure for funding of
cost over's for the project.  The project cost also includes INR.
112 million towards transmission project and although HPSEB is
committed to reimbursing the same over a five year period, any
delays in receipt of the same may have an adverse impact on the
liquidity and debt servicing given that the company's debt
repayment schedule specifies fixed dates for repayment of loans
taken towards funding of the transmission project.  The rating
however draws comfort from the firm power purchase agreement (PPA)
with the Himachal Pradesh State Electricity Board (HPSEB) to
supply power for 40 years and limited demand risks given the
competitive tariffs and energy deficit status in northern India.

The rating also draws comfort from the project's eligibility for
capital subsidy from MNES and likelihood for registry with UNFCCC
as clean development mechanism (CDM) project for power generation
which will enable it to generate additional revenue from sale of
carbon emission reduction (CER's) certificates.

Going forward, the ability of the company to obtain financial
closure for the cost over runs and complete the project with
minimal cost and time overruns, meet the designed performance
parameters and availability of adequate water in the catchment
area will be the key rating drivers.

                     About Tejassarnika Hydro

Tejassarnika Hydro Energies (P) Limited is a company promoted by
Mr Ramesh Reddy and his family members to develop, own and operate
a 12 MW small hydro power (SHP) project in Chamba District of
Himachal Pradesh (HP).  This project is backed by an
implementation agreement with Govt of Himachal Pradesh for
implementing of 12 MW (4X3) SHP on joiner Khad, a tributary of
river Siul, which in turn is a tributary of Ravi River.  The
project is currently under construction, and as per the revised
construction schedule, it is targeted for commercial operations
from December 2009.


TRANSWORLD HIRE: CRISIL Rates INR250MM Cash Credit Facility at BB+
------------------------------------------------------------------
CRISIL has assigned its 'BB+/Stable' rating to the cash credit
facility of Transworld Hire Purchase India Ltd.:

   INR250 Million Cash Credit Facility   BB+/Stable (Assigned)

The rating reflects TWHP's modest earnings profile, limited
resource profile, small scale of operations, and negligible market
share.  The impact of these weaknesses is mitigated by the
company's adequate capitalization.

Outlook: Stable

CRISIL believes that TWHP's financial risk profile will remain
constrained by its limited resource profile and modest earnings;
however, TWHP's capitalization and asset quality will remain
adequate over the medium term.  The outlook may be revised to
'Positive' if TWHP improves its capitalization or earnings profile
substantially, while maintaining its asset quality. Conversely,
the outlook may be revised to 'Negative' in case of significant
deterioration in TWHP's asset quality, leading to stress on the
company's capitalization and earnings profile.

                       About Transworld Hire

Incorporated in 1990, TWHP is engaged in the business of
commercial vehicle and construction equipment financing.  The
company has six branches in the southern districts of Kerala.  For
2008-09 (refers to financial year, April 1 to March 31), TWHP's
profit after tax (PAT) is estimated at INR6.0 million on total
income of INR20 million; the company reported a PAT of INR6.5
million on a total income of INR22 million in the previous year.
As on March 31, 2009, TWHP had a loan book of INR87 million (INR86
million as on March 31, 2008).


UDYOG LIMITED: ICRA Assigns 'LBB+' Rating on INR486MM Term Loans
----------------------------------------------------------------
ICRA has assigned an LBB+ rating to the INR486 million term loans
and INR150 million fund based limits of Mukesh Udyog Limited. This
is inadequate-credit-quality rating assigned to long term debt
instruments.  ICRA has also assigned an A4+ rating to INR50
million non fund based limits of Mukesh Udyog Limited.  The rating
indicates risk-prone-credit-quality rating assigned by ICRA to
short term debt instruments.

ICRA's non-investment grade ratings factor in the significant
business risks arising out of factors like volatility in raw
material prices (as it is not backward integrated), highly
competitive nature of the spinning industry and downturn in the
Indian textile sector with slowdown in retail demand.  These
factors have led to a significant decline in net profit margins-
from 3.2% in FY08 to 1.4% in FY09 and this situation is unlikely
to change significantly in the medium term.  The rating action
also factors in the high financial risks arising out of high
gearing of the company following substantially debt funded
capacity expansion of its spinning mill.  The ratings are however
supported by low client concentration risk with top ten customers
contributing less than 20% of sales, diversification into cotton
yarn manufacturing which is likely to result in a more diversified
product mix and planned diversification into steel manufacturing
which is going to reduce sectoral concentration risk.

                        About Mukesh Udyog

The Company was incorporated in the year 1994 under the name of
M.S. Finvest Limited with the main object of Finance and
Investment Company.  The name of the company was changed to Amit
Udyog Limited in 1999 and further changed to Mukesh Udyog Limited
in 2001.  MUL is promoted by Mr. Krishan Chand Gupta who is the
chairman of Mukesh group of companies and has over 45 years of
industry experience.  MUL started with a spinning unit in
Buddhewal Ludhiana with installed capacity of 6912 spindles in
2002 which has now been enhanced to 30000 spindles.  MUL
manufactures polyester yarn, acrylic yarn in the count range 15s -
60s and 16s-40s cotton yarn.  MUL reported net sales of INR1381.13
million in FY09 as against net sales of INR739.51 million in FY08.
Net profit of the company was at INR19.6 million in FY09 as
against INR23.4 million in FY08.


VITAL HEALTH: CRISIL Cuts Rating on INR57.3MM LT Loan to 'C'
------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Vital Health Care Pvt. Ltd. to 'C' from 'BB/Stable', and has
reaffirmed the rating on the company's short-term bank facilities
at 'P4'.

   Facilities                        Ratings
   ----------                        -------
   INR160.0 Million Cash Credit*     C (Downgraded from BB/Stable)
   INR57.3 Million Long Term Loan    C (Downgraded from BB/Stable)
   INR22.7 Million Proposed Loan     C (Downgraded from BB/Stable)
          Term Bank Loan Facility
   INR60.0 Million Letter of Credit**  P4 (Reaffirmed)

   * Sublimit for book debts INR60 Million. & Packing Credit
     INR120 Million.

   ** Sublimit for Buyers Line of Credit INR60 Million.

The downgrade is driven by the company's continuous overdrawn cash
credit facilities because of its stretched liquidity as a result
of delays in collections from customers, coupled with substantial
import payments and currency devaluation.

CRISIL has consolidated the business and financial risk profiles
of Vital Health Care and Vital Laboratories Pvt Ltd (Vital Labs)
for arriving at its ratings.  This is because the two companies,
together referred to herein as the Vital group, have a common set
of promoters -- Mr. Rajiv Bajaj and his family. The Bajaj family
holds majority stakes (directly or indirectly) in, and has
management control over, the two companies.  The companies are
engaged in similar lines of business, have a common management
team, and are managed as a single business.  Both the companies
have undertaken corporate guarantees for each other.  Also, the
management intends to merge the two companies at an appropriate
time in the future.

                          About the Group

The Vital group was established in 1998 with the incorporation of
Vital Health Care, which was promoted by Mr. Shrigopal Bajaj and
his family, and supported by the Mehta family.  In 2002, the Bajaj
family promoted Vital Labs.  The Vital group manufactures and
sells bulk drugs.  The group's largest-selling active
pharmaceutical ingredients (APIs) include hyoscine butyl bromide,
digoxin, quinine, and artimisinin, and their derivatives.  For
2008-09 (refers to financial year, April 1 to March 31), the Vital
group reported a profit after tax (PAT) of INR61.9 million on net
sales of INR1077.4 million, as against a PAT of INR18.5 million on
net sales of INR668.3 million for 2007-08.


VITAL LABORATORIES: CRISIL Cuts Ratings on Various Loans to 'C'
---------------------------------------------------------------
CRISIL has downgraded its rating on the long-term bank facilities
of Vital Laboratories Pvt. Ltd. to 'C' from 'BB/Stable', and has
reaffirmed the rating on the company's short-term bank facilities
at 'P4'.

   Facilities                        Ratings
   ----------                        -------
   INR60.4 Million Long Term Loan    C (Downgraded from BB/Stable)
   INR60.0 Million Cash Credit       C (Downgraded from BB/Stable)
   INR29.6 Million Proposed Loan     C (Downgraded from BB/Stable)
          Term Bank Loan Facility
   INR50.0 Million Packing Credit    P4 (Reaffirmed)
   INR70.0 Million Letter of Credit  P4 (Reaffirmed)

The downgrade is driven by the continuous overdrawn cash credit
facilities of group company Vital Health Care Pvt Ltd, because of
its stretched liquidity as a result of delays in collections from
customers, coupled with substantial import payments and currency
devaluation.

CRISIL has consolidated the business and financial risk profiles
of Vital Labs and Vital Health Care for arriving at its ratings.
This is because the two companies, together referred to herein as
the Vital group, have a common set of promoters -- Mr. Rajiv Bajaj
and his family.  The Bajaj family holds majority stakes (directly
or indirectly) in, and has management control over, the two
companies.  The companies are engaged in similar lines of
business, have a common management team, and are managed as a
single business.  Both the companies have undertaken corporate
guarantees for each other. Also, the management intends to merge
the two companies at an appropriate time in the future.

                          About the Group

The Vital group was established in 1998 with the incorporation of
Vital Health Care, which was promoted by Mr. Shrigopal Bajaj and
his family, and supported by the Mehta family. In 2002, the Bajaj
family promoted Vital Labs.  The Vital group manufactures and
sells bulk drugs.  The group's largest-selling active
pharmaceutical ingredients (APIs) include hyoscine butyl bromide,
digoxin, quinine, and artimisinin, and their derivatives.  For
2008-09 (refers to financial year, April 1 to March 31), the Vital
group reported a profit after tax (PAT) of INR61.9 million on net
sales of INR1077.4 million, as against a PAT of INR18.5 million on
net sales of INR668.3 million for 2007-08.


WADPACK PVT: CRISIL Assigns 'BB-' Rating on INR131.5 Mln LT Loans
-----------------------------------------------------------------
CRISIL has assigned its 'BB-/Stable/P4' ratings to the bank
facilities of Wadpack Pvt. Ltd.

   Facilities                         Ratings
   ----------                         -------
   INR60 Million Cash Credit          BB-/Stable (Assigned)
   INR131.5 Million Long Term Loans   BB-/Stable (Assigned)
   INR23 Million Letter of Credit*    P4 (Assigned)

   * Interchangeable with Bank Guarantee

The ratings reflect Wadpack's low margins and exposure to intense
competition because of the fragmented nature of the corrugated box
business, modest scale of operations, and sub-par financial risk
profile marked by high gearing and modest net worth.  The impact
of these weaknesses is mitigated by Wadpack's established market
presence, supported by its longstanding customer relationships,
and the expected improvement in its revenues and profitability on
the back of its newly-commissioned unit at Doddaballarpur,
Karnataka.

Outlook: Stable

CRISL believes that Wadpack's attempts at diversifying its
customer and product base, supported by higher operating benefits
derived out of its newly commenced unit at Doddaballapur, will
help the company improve its business levels and operating
profitability over the medium term.  The company's financial risk
profile will, however, remain constrained because of its high
gearing and modest net worth.  The rating outlook could be revised
to 'Positive' if Wadpack improves its gearing and net worth
through additional equity infusion or proceeds from sale of its
Yeshwantpur property, or if it shows better-than-anticipated
revenues and profitability, leading to higher cash generation.
Conversely, the rating outlook could be revised to 'Negative' in
case of lower-than-anticipated business growth and profitability,
or in case of any significant fresh debt-funded capital
expenditure.

                        About Wadpack Pvt

Wadpack, incorporated in 1977 by Mr. K C Wadhwa, manufactures
corrugated boxes from kraft paper at its units in Yeshwantpur and
Doddaballarpur, near Bengaluru, Karnataka.  Wadpack is a private
company closely held by the Wadhwa family, which has been engaged
in the corrugated box business since 1965.  Mr. K C Wadhwa, the
Managing Director of the company, is assisted in day to day
operations by his son, Mr. Sandeep Wadhwa (Joint Managing
Director).

Wadpack had a capacity to manufacture around 11,250 tonnes per
annum (tpa) of corrugated boxes per annum at its manufacturing
unit in Yeshwantpur, Bengaluru.  In March 2009, the company
commissioned its new unit at the Apparel Park in the Doddaballapur
Industrial Area, close to Bengaluru.  The unit has the capacity to
manufacture around 25,000 tpa of corrugated boxes.  During 2008-09
(refers to financial year, April 1 to March 31), the company sold
its unit at Peenya (close to Bengaluru) and proposes to
discontinue operations at the Yeshwantpur unit as well over the
near term, as operations at the new unit at Doddaballapur have
fully stabilised.

For 2008-09, Wadpack reported a provisional net profit of INR22.4
million on net sales of INR353 million, against a net profit of
INR8.4 million on net sales of INR384 million in 2007-08.


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


BANK DANAMON: Hearing on Red Dragon Lawsuit Moved to November
-------------------------------------------------------------
The Jakarta Globe reports that the first hearing in a US$4 billion
suit against PT Bank Danamon and Bank of New York Mellon has been
rescheduled for November in a dispute between a Thai investment
group holding a majority stake in PT Central Proteina Prima and
the group's international bondholders.

Edward Lontoh, a Red Dragon Group spokesman, told the Jakarta
Globe on Friday that the legal action in Central Jakarta District
Court had been pushed back from Aug. 20 this year, but gave no
reason for the change.

The report notes Mr. Lontoh said the group was determined to
defend itself against a "smear campaign" by the bondholders, which
he had earlier claimed were trying to take control of CP Prima by
seizing the shares.

The Globe relates Mr. Lontoh added that Mellon had not issued a
"notice of remedy," a necessary precondition for declaring a
default, making the action invalid because it violated the terms
of agreement between the bondholders and Red Dragon.  "We only
want them to abide by the agreements, including the procedures
that must be followed before an event of default is declared,"
Edward said.

According to the report, Bono Baru Adji, a lawyer for Danamon,
earlier dismissed Red Dragon's claims as groundless, saying Mellon
Bank and Danamon had been required to take steps to protect the
interests of the bondholders.

As reported in the Troubled Company Reporter-Asia Pacific on
July 14, 2009, The Financial Times recalled that the case began in
July 2007 when Red Dragon Group and the three other companies
pledged about US$1 billion worth of shares in PT Central Proteina
Prima to guarantee US$200 million in secured exchangeable bonds.
According to the FT, their troubles began last year when CP
Prima's share price plunged.

The FT related that efforts to restructure the deal failed and
bondholders ordered Bank of New York Mellon, the trustee, and Bank
Danamon, the security agent, to seize the collateral because they
believed the companies had defaulted on the bond.

On July 17, Red Dragon, Regent Central International, Charm Easy
and Surya Hidup Satwa, all controlled by the Chearavanont family,
sued the banks, and thus effectively the bondholders, for
US$1 billion for "causing very large losses to the claimants" and
for seizing their assets after allegedly deciding without proof
that the companies were in default of their obligations to the
bondholders, according to four Jakarta court filings obtained by
the FT.

Red Dragon and Pertiwi Indonesia, another Chearavanont-owned
company, are also suing in London, the FT added.

Thailand-based Red Dragon is a special purpose vehicle controlled
by the Chearavanont family.

                          About Bank Danamon

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

                           *     *     *

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


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


CAPMARK FINANCIAL: US$1.6 Bil. Losses Cue S&P to Junk Corp. Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it lowered its
ratings on Capmark Financial Group Inc., including lowering the
local-currency, long-term corporate credit rating on the company
to 'CC' from 'B-'.  At the same time, S&P revised the CreditWatch
listing of the ratings to negative from developing, where it was
placed on April 24, 2009.

All of S&P's Capmark-related commercial mortgage-servicer rankings
(in the U.S., S&P's "strong" commercial mortgage master servicer,
primary servicer, and special servicer rankings on Capmark Finance
Inc.; in Japan, S&P's "above average" commercial mortgage master
servicer and commercial mortgage primary servicer rankings on
Premier Asset Management Co.; and in Canada, S&P's "above average"
commercial mortgage primary servicer ranking on Capmark Canada
Ltd.) are unchanged and remain on CreditWatch with negative
implications, where S&P placed them on March 5, 2009.  Although
the lowered credit rating has changed the financial position
associated with these servicer rankings to "insufficient" from
"sufficient," Capmark's servicer entities remain on S&P's Select
Servicer List in accordance with S&P's revised criteria dated
April 16, 2009.  The CreditWatch on the servicer rankings also
remains in place as S&P conducts additional reviews of these
servicing operations.

The downgrade follows Capmark's announcement that it lost
US$1.6 billion in second-quarter 2009 and that it has entered into
an asset-put agreement that gives it the right to sell its North
American servicing and mortgage-banking businesses.  "We expect
Capmark either to enter Chapter 11 bankruptcy proceedings or to
negotiate a distressed exchange outside of bankruptcy, which most
likely would affect most of its debt.  "We will consider either of
these events to be a default," said Standard & Poor's credit
analyst Jeffrey Zaun.

By selling its servicing and originations businesses, the firm
should be able to preserve their value.  But the consideration
received in the sale -- US$375 million in cash and a US$75 million
note -- will not enable Capmark to meet its debt obligations.

The CreditWatch with negative implications indicates that S&P
expects the firm to default in the coming months.  Because the
company has enough unrerestricted cash to meet short-term
obligations and funding commitments (US$1.2 billion at the holding
company), S&P expects that default may be delayed while management
negotiates with creditors.


JAPAN AIRLINES: May Sell Shares in JALways to Pay Back Debts
------------------------------------------------------------
Japan Airlines Corp. is considering selling shares in a unit that
operates resort-bound international flights and using the money to
pay back debt, Bloomberg News reports citing Japan's Nikkei
newspaper.

Bloomberg reports the company may sell shares in JALways Co.,
which operates resort flights, to travel services and trading
houses.  According to Bloomberg, JAL may also split off its Hawaii
and Guam flights as a subsidiary and seek investments in the unit
while maintaining a majority stake in the resort businesses.

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


JLOC 36: S&P Downgrades Ratings on Various Floating-Rate Notes
--------------------------------------------------------------
Standard & Poor's Ratings Services lowered its ratings on JLOC 36
LLC's class C1, C2, and D floating-rate secured notes and removed
the ratings on classes C1 and C2 from CreditWatch with negative
implications, where they had been placed on July 6, 2009.  At the
same time, Standard & Poor's affirmed its ratings on the class A1
through B and X secured notes 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 C1 and C2 of JLOC 36 LLC, on CreditWatch with
negative implications.

One of the transaction's underlying nonrecourse loans
(representing 7.6% of the total initial issuance amount of the
notes) is due to mature by the end of August 2010 and is a "loan
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 loan.  In
addition, another five underlying nonrecourse loans (representing
a combined 19% or so of the total initial issuance amount of the
notes) have defaulted.  The collateral property backing one of the
five defaulted loans has been sold, and the full amount of the
loan (rated portion) is set to be recovered.  In addition,
procedures are underway to sell the collateral property backing
another of the five defaulted loans at an amount covering the
rated portion of the loan.

The downgrades are based on these factors: (1) with respect to the
"loan considered to be in default," S&P does not regard cash flow
as a major potential risk factor at this point.  Nevertheless, S&P
hold the view that uncertainty remains over the repayment of the
loan by the maturity date.  Accordingly, S&P has lowered its
assumptions with respect to the recovery amounts from the
collateral properties relating to the loan based on the
possibility that the loan may not be repaid by the maturity date
and the properties may need to be liquidated; (2) according to
this transaction's servicer agreement, although collection
procedures relating to the sale of the collateral properties
backing the three remaining defaulted loans (the loans other than
the two aforementioned defaulted loans from which S&P expects
recoveries to be made) are underway, uncertainty appears to be
mounting over the recovery prospects of the properties, given
current severe real estate market conditions; and (3) it is highly
possible that the recovery amounts from the sale of the collateral
properties backing some of the defaulted loans may be less than
the loan amounts (rated portions).  Accordingly, it is Standard &
Poor's opinion that there is increasing likelihood that payments
on the most subordinate class D notes would be affected.

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

The rating affirmations on the class A1 to B notes reflect
prospects for collection from the collateral properties backing
those loans, as well as credit support provided through the
senior/subordinate structure and the reserve account.

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 notes were
originally secured by 34 nonrecourse loans, which were originally
backed by 99 real estate properties.  The transaction was arranged
by Morgan Stanley Japan Securities Co. Ltd., and ORIX Asset
Management & Loan Services Corp. is the transaction servicer.

            Ratings Lowered, Off Creditwatch Negative

                           JLOC 36 LLC
          JPY59.1 billion secured notes due February 2016

        Class   To   From           Initial Issue Amount
        -----   --   ----           --------------------
        C1      A-   A/Watch Neg    JPY3.6 bil.
        C2      A-   A/Watch Neg    EUR24,250,000

                          Rating Lowered

        Class   To   From           Initial Issue Amount
        -----   --   ----           --------------------
        D       CCC   B-            JPY4,300 mil.

                         Ratings Affirmed

    Class    Rating   Initial Issue Amount
    -----    ------   --------------------
    A1       AAA      JPY29.05 bil.
    A2       AAA      EUR65,300,000
    A3       AAA      $8,000,000
    B        AA       JPY6.8 bil.
    X (IO)   AAA      JPY59.1 bil. (initial notional principal)

                          * Interest-only

The issue date was May 2007.


MOMENTUM CDO: S&P Corrects Rating on Class AX Credit Linked Notes
-----------------------------------------------------------------
Standard & Poor's Ratings Services corrected its rating on the
class AX credit linked notes issued under Momentum CDO (Europe)
Ltd.'s series 2006-12 transaction by lowering its rating on the
tranche to 'D' from 'CCC-', following the receipt of a loss
calculation notice.

On Sept. 2, 2009, the calculation agent notified Standard & Poor's
that on June 3, 2009, the losses from credit events in the
transaction's underlying portfolios had exceeded the available
credit enhancement.  S&P lowered the rating on class AX to 'D'
based on the fact that noteholders have suffered a principal loss.

The rating action did not occur contemporaneously with the loss
realization because the loss calculation notice was not delivered
to us until September 2009.

                          Rating Lowered

                    Momentum CDO (Europe) Ltd.
OPALE floating and fixed-rate credit linked notes series 2006-12
                             due 2011

                 Class   To   From   Issue Amount
                 -----   --   ----   ------------
                 AX      D    CCC-   JPY600.0 mil.


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


HYNIX SEMICONDUCTOR: Creditors to Invite Bids for 28% Stake Sale
----------------------------------------------------------------
Yonhap News Agency reports bank officials said creditors of Hynix
Semiconductor Inc. will invite bids for a major stake in the
company and receive letters of interest from strategic investors
this week.

The news agency, citing Korea Exchange Bank, the main creditor of
Hynix Semiconductor, says managers for the sale of the chip maker
are set to send out invitational notices on the sale of a combined
28% stake in the company.  Yonhap relates the invitations were
made only to South Korean companies.

Yonhap discloses that the stake sale, which is estimated to be
worth KRW4.5 trillion  (US$3.65 billion), is being managed by
Credit Suisse Ltd., Woori Investment & Securities Co. and state-
run Korea Development Bank.

The creditors plan to select a preferred bidder for their
controlling stake within the year, Yonhap notes.

Hynix Semiconductor Inc. -- http://www.hynix.com/-- is an Icheon,
South Korea-based memory semiconductor supplier offering Dynamic
Random Access Memory chips and Flash memory chips to a wide range
of established international customers.  The Company's shares are
traded on the Korea Stock Exchange, and the Global Depository
shares are listed on the Luxemburg Stock Exchange.

                          *     *     *

As reported in the Troubled Company Reporter-Asia Pacific on
July 6, 2009, Fitch Ratings affirmed Hynix Semiconductor Inc.'s
Long-term foreign currency Issuer Default Rating at 'B+' and
assigned a Negative Outlook.  Accordingly, the Rating Watch
Negative status previously assigned to the company's IDR on
December 12, 2008, has now been resolved.  At the same time, the
agency downgraded the ratings for its outstanding senior unsecured
debt to 'B'/'RR5' from 'B+' and removed it from RWN.

Moody's Investors Service downgraded to B1 from Ba3 Hynix
Semiconductor Inc's corporate family and senior unsecured bond
ratings on Dec. 26, 2008.  The outlook for both ratings remains
negative.


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


AIR NEW ZEALAND: Virgin Blue, Delta Air Slam Tie-Up Objections
--------------------------------------------------------------
Ari Sharp at The Age reports that Virgin Blue and Delta Air Lines
have struck back at Air New Zealand over its objections to a
trans-Pacific tie-up between the two airlines.

"The submissions made by Air New Zealand are without a sound
factual, legal or economic basis," the report quoted Virgin and
Delta as saying in their submission, written by their law firm
Gilbert+Tobin.

The Age notes Virgin and Delta said that while the rejected Air
NZ-Air Canada application would have given the airlines involved
100% of market share for flights between Canada and Australia or
New Zealand, the latest proposal would give Delta and Virgin only
26% of seat capacity on direct flights between Australia and the
U.S.

The Age states that the two carriers also argued that while the
rejected proposal was a defensive strategy by Air NZ and Air
Canada to offset the risk of declining demand, Virgin and Delta's
proposal was intended to allow them to introduce new routes and
services to take on United Airlines and Qantas.

According to the report, they also insisted ticket prices would be
lower under the joint venture because of additional capacity.

As reported in the Troubled Company Reporter-Asia Pacific on
July 27, 2009, Air New Zealand confirmed it will officially lodge
an objection to the proposed tie-up between Virgin Blue and Delta
Airlines with the respective authorities.  Virgin and Delta had
unveiled plans to form a revenue-sharing agreement under which a
steering committee would manage aircraft on the trans-Pacific
route.

Air NZ's general counsel John Blair, however, said the proposed
joint venture would be anti-competitive and most of the benefits
the two airlines had outlined in their regulatory filings could be
achieved through arrangements such as code sharing.

Air New Zealand has been joined by the Singapore-backed Tiger
Airways in opposing the deal, while Qantas, Singapore Airlines and
United Airlines declined to object, according to The Age.

                       About Air New Zealand

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

                           *     *     *

As of June 29, 2009, Air New Zealand Ltd. continues to carry
Moody's Investors Service "Ba1" Senior Unsecured Issuer rating
with stable outlook.


ASCOT DOWNS: In Liquidation; Creditors Unlikely to Get Repayment
----------------------------------------------------------------
Ascot Downs Developments Limited has been wound up, leaving
creditors of the NZ$15 million development unlikely to receive
payment, Jazial Crossley at The National Business Review reports.
The company was placed in receivership on July 9, 2009.

Citing liquidators Meltzer Mason Heath's first report, the
Business Review relates that the liquidators said that
Pricewaterhouse Coopers receivers advised that the development has
been stalled for one year due to council requirements.

According to the Business Review, Meltzer Mason Heath liquidators
Karen Mason and Rachel Mason said in their first report that the
delay resulted in existing sale and purchase agreements on
sections lapsing, and the company was unable to on-sell the
sections "at the price required to satisfy the lender."

"In turn, this led to the company being unable to pay its other
creditors, and the company was placed in liquidation on the
application of one such creditor," the liquidators said in their
first report as cited by the Business Review.

The Business Review relates the liquidators said that at this
stage it appears the company has a deficiency of NZ$3.7 million
and it is unlikely creditors will receive a distribution.

Ascot Downs Developments Limited is a luxury Papamoa subdivision
company.


DESANI LTD: Goes Into Voluntary Liquidation
--------------------------------------------
Heather McCracken at The New Zealand Herald reports that Desani
Ltd., trading as Carpet Court Howick, was put into voluntary
liquidation by its shareholders on August 3.  Alliott Thompson
Francis were appointed liquidators for the company.

The report said several customers have been left out of pocket
after the shop closed its doors on the final day of a promotion
encouraging customers to pay up early for a chance to win a free
trip.

According to the report, other Carpet Court stores are separately
owned and unaffected by the closure, but the major franchise
holder has said it won't walk away from those affected.

Franchiser Flooring Brands Ltd, which owns more than half the
Carpet Court stores, said it was working with liquidators to help
customers left out of pocket.

"It's just a matter of waiting for the liquidators to come up with
the numbers. Then we need to find out what product is there, what
needs to be ordered, and what, if any, has been repossessed or
claimed back by suppliers," the report quoted Franchiser Flooring
Chief operating officer Chris Ogden as saying.

The Herald relates Mr. Ogden said the promotion was held across
all Carpet Court stores, and customers from Howick would still be
entered in the draw.

Desani Ltd., trading as Carpet Court Howick, sells carpet, wood,
rugs, tiles, vinyl, and vinyl planking.


LINE 7: No Payment for Creditors Owed NZ$5-Mln, Receivers Say
-------------------------------------------------------------
The New Zealand Herald reports the receivers of Line 7 Ltd. said
creditors owed NZ$5 million by the collapsed clothing firm are
unlikely to be paid.

Citing receivers KordaMentha in their first report, the Herald
relates that the company had assets of NZ$8.16 million including
stock at the date of the receivership.  The report says the
company owed NZ$8.08 million to secured and preferential
creditors.

However, the report notes the receiver said Line 7 also owed an
additional NZ$4.98 million outstanding to other creditors.

"While it is early in the receivership we do not anticipate that
there will be funds available for distribution to this class of
creditor," the report cited receiver Grant Graham in his first
report.

According to the Herald, Mr. Graham said KordaMentha was in
discussions with more than one potential buyer for the Line 7
business.  It had issued 57 information memorandums to interested
parties, he said.

A receivership sale had been held to clear stock, and the
company's nine retail and two outlet stores had been closed, the
report notes.

Based in New Zealand, Line 7 Ltd. -- http://www.line7.com/--
manufactures sailing and outdoor apparel.

On June 29, 2009, Grant Robert Graham and Brendon James Gibson
were appointed Joint and Several Receivers and Managers of the
assets and undertakings of Line 7 Limited.


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


POWER SECTOR ASSETS: EDC Offer Tops Bid for Two Geothermal Plants
-----------------------------------------------------------------
The Manila Standard Today reports that Power Sector Assets and
Liabilities Management Corp. said Green Core Geothermal Inc., a
unit of Energy Development Corp., has offered a higher bid of
US$220 million to top the auction for two geothermal power plants.

The report said Green Core won the auction for the 192.5-megawatt
Palinpinon and 112.5-MW Tongonan geothermal plants.  The Standard
notes that Green Core bested the US$200-million offer of Therma
Power-Visayas Inc. of the Aboitiz Group.

According to the report, PSALM is set to review the bid documents
of Green Core before formally declaring the winning bidder for the
packaged sale of the Palinpinon-Tongonan power facilities.

Green Core is a wholly owned subsidiary of First Luzon Geothermal
Energy Corp., which is wholly owned by EDC.   EDC is the largest
geothermal producer in the country with an installed capacity of
1,149.4 MW, or 60% of the country’s total geothermal capacity, the
Standard discloses.

                          Credit Ratings

As reported in the Troubled Company Reporter-Asia Pacific on
May 15, 2009, Standard & Poor's Ratings Services said that it had
assigned its 'BB-' rating to the proposed issue of U.S.-dollar
senior unsecured notes by Power Sector Assets & Liabilities
Management Corp.  The net proceeds from the sale of the notes will
be used for general corporate funding requirements, including
servicing payments arising under contracts with independent power
producers.  The rating on the notes is subject to finalization of
documentation.

S&P said the issue rating reflects the Philippine government's
(foreign currency BB-/Stable/B; local currency BB+/Stable/B)
irrevocable, unconditional, and timely guarantee on the notes,
which is in accordance with S&P's criteria.  The stand-alone
credit profile of PSALM may differ substantially from the
guarantor and that profile may change in future; if the profile
deteriorates, the possibility that the guarantee has to be called
upon may increase.

Meanwhile, the TCR-AP reported on July 27, 2009, that Moody's
Investors Service upgraded the senior unsecured bond rating of
Power Sector Assets & Liabilities Management Corporation to Ba3
from B1.  The bonds are irrevocably and unconditionally guaranteed
by the Philippines government.  The rating outlook is stable, in
line with the sovereign outlook.  This rating action follows
Moody's decision to upgrade the Philippines government's long-term
foreign currency rating to Ba3 from B1.

Power Sector Asset & Liabilities Corporation, wholly-owned and
controlled by the Philippine government, was established in 2001
to take ownership, manage, privatize and dispose of all
generation-related assets, liabilities, contracts with Independent
Power Producers, real estate and other disposable assets of the
National Power Corporation, including National Transmission
Corporation.

PSALM has a corporate life of 25 years.  Any remaining assets and
liabilities after this period will be assumed by the government.

                       About National Power

Headquartered in Quezon City, Philippines, National Power Corp.
-- http://www.napocor.gov.ph/-- is a state-owned utility that
builds and operates nuclear, hydroelectric, thermal, and
alternative power generating facilities.  It works with
independent producers under a build-operate-transfer program.
With a generating capacity of more than 11,500 megawatts,
National Power sells electricity to distributors and industrial
companies.

National Power first incurred losses in 1998 after the Asian
financial crisis and expensive contract terms from independent
power producers, and reported a PHP29.9 billion loss in 2004,
after a PHP117-billion net loss in 2003.

The Troubled Company Reporter-Asia Pacific reported on April 5,
2006, that Napocor posted a PHP16-million profit in 2005, the
first time in seven years, on the Energy Regulation Commission's
approval of a rate increase, the use of an improved fuel mix and
better fuel prices.

A subsequent report by the TCR-AP states that in the first
review of Napocor's portfolio, it was projected that the
Philippine Government would have to absorb some PHP600 million
worth of debt.  The Government initially absorbed Napocor's PHP200
billion debt, which was incurred when the state firm adopted
international accounting standards, forcing it to report its
foreign exchange losses.  The Department of Finance is studying
the legality of the Government's absorption of the debt.

To comply with the privatization bill approved by the Philippine
Congress, the Company started selling off its generation assets
to help pay for the utility's total estimated debt.  It also
separated its transmission operations into a new subsidiary, the
National Transmission Corporation.

Napocor's remaining debt could still be absorbed by the
Government, but the Development Budget Coordinating Committee
wants to see the Company improve operations and sell off non-
profitable assets in order to reduce its debt, instead of
relying on government aid to do so.


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


ARTS & THOTS: Creditors' Proofs of Debt Due on September 18
-----------------------------------------------------------
Arts & Thots Pte Ltd, which is in creditors' voluntary
liquidation, requires its creditors to file their proofs of debt
by September 18, 2009, to be included in the company's dividend
distribution.

The company's liquidator is:

          Victor Goh
          c/o Phoenix Corporate Advisory Pte Ltd
          101 Upper Cross Street
          #08-15 People’s Park Centre
          Singapore 058357


DONNA FOOD: Court Enters Wind-Up Order
--------------------------------------
On August 28, 2009, the High Court of Singapore entered an order
to wind up the operations of Donna Food Holdings Pte. Ltd.

Singapore Food Industries Limited filed the petition against the
company.

The company's liquidator is:

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


LION HEART: Members and Creditors to Meet on September 23
---------------------------------------------------------
The members and creditors of Lion Heart Properties Pte Ltd will
hold their meeting on September 23, 2009, at 10:00 a.m., at One
Raffles Quay, North Tower, in Level 18, Singapore 048583.

At the meeting, the members and creditors will be asked to receive
the liquidators' report on the progress of the liquidation and
discuss other matters.

The company's liquidator is:

          Seshadri Rajagopalan
          One Raffles Quay
          North Tower, Level 18
          Singapore 048583


TRANSBILT ENGINEERING: Pays Third Dividend
------------------------------------------
Transbilt Engineering Pte Ltd, which is in liquidation, paid the
third dividend on September 4, 2009.

The company paid 10% to all received claims.

The company's liquidator is:

          Goh Ngiap Suan
          336 Smith Street
          #06-308 New Bridge Centre
          Singapore 050336


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


* BOND PRICING: For the Week August 31 to September 4, 2009
-----------------------------------------------------------

   AUSTRALIA
   ---------
Ainsworth Game                8.000%   12/31/09   AUD       0.68
AMP Group Financ              9.803%   04/01/19   NZD       0.92
Antares Energy               10.000%   10/31/13   AUD       1.81
Aurox Resources               7.000%   06/30/10   AUD       0.75
Babcock & Brown Pty           8.500%   11/17/09   NZD      49.87
Becton Property Group         9.500%   06/30/10   AUD       0.40
Bemax Resources               9.375%   07/15/14   USD      68.12
Bemax Resources               9.375%   07/15/14   USD      68.12
Bounty Industries Ltd        10.000%   06/30/10   AUD       0.03
Capral Aluminum              10.000%   03/29/12   AUD      39.00
CBD Energy Ltd               12.500%   01/29/11   AUD       0.10
China Century                12.000%   09/30/10   AUD       0.67
CIT Group Au Ltd              6.000%   03/03/11   AUD      73.10
Djerriwarrh Inv               6.500%   09/30/09   AUD       4.04
First Australian             15.000%   01/31/12   AUD       0.35
Griffin Coal Min              9.500%   12/01/16   USD      53.62
Griffin Coal Min              9.500%   12/01/16   USD      53.62
Heemskirk Consol              8.000%   04/29/11   AUD       2.35
Insurance Austra              5.625%   12/21/26   GBP      69.94
Jpm Au Enf Nom 1              3.500%   06/30/10   USD       4.50
Jpm Au Enf Nom 2              7.000%   06/30/11   AUD      41.31
Macquarie Bank                6.500%   05/31/17   AUD      50.42
Minerals Corp                10.500%   09/30/09   AUD       0.70
Metal Storm                  10.000%   09/01/09   AUD       0.09
New S Wales Trea              1.000%   09/02/19   AUD      62.26
Nylex Ltd                    10.000%   12/08/09   AUD       0.84
Orchard Invest                9.000%   12/15/10   AUD      29.50
Resolute Mining              12.000%   12/31/12   AUD       0.55
Sun Resources NL             12.000%   06/30/11   AUD       0.40
Suncorp-Metway                6.500%   06/22/16   AUD      67.32
Suncorp Metway I              6.750%   10/06/26   AUD      54.29
Timbercorp Ltd                8.900%   12/01/10   AUD      26.10


   CHINA
   -----
China Govt Bond               4.860%   08/10/14   CNY       0.00
Jiangxi Copper                1.000%   09/22/16   CNY      71.22
Sichuan Changhon              0.800%   07/31/15   CNY      72.54


   INDIA
   -----
Aftek Infosys                 1.000%   06/25/10   USD      61.50
AKSH Optifibre                1.000%   01/29/10   USD      58.00
Flex Industries               4.000%   03/09/12   USD      65.75
Gemini Commnica               6.000%   07/18/12   EUR      52.50
ICICI Bank Ltd                7.250%   08/29/49   USD      72.77
JCT Ltd                       2.500%   04/08/11   USD      31.50
Kei Industries                1.000%   11/30/11   USD      67.00
Sterling Biotech              0.500%   09/30/10   USD      67.54
Subex Azure                   2.000%   03/09/12   USD      34.75
Wanbury Ltd                   1.000%   04/23/12   EUR      69.50


   INDONESIA
   ---------
Bakrieland Dev               12.850%   03/11/13   IDR      70.00
Bank DKI                     12.250%   03/04/18   IDR      70.00


   JAPAN
   -----
Aiful Corp                    4.450%   02/16/10   USD      73.62
Aiful Corp                    4.450%   02/16/10   USD      73.62
Aiful Corp                    2.930%   06/28/10   JPY      72.55
Aiful Corp                    5.000%   08/10/10   USD      48.12
Aiful Corp                    5.000%   08/10/10   USD      49.97
Aiful Corp                    6.000%   12/12/11   USD      39.12
Aiful Corp                    6.000%   12/12/11   USD      39.12
CSK Corporation               0.250%   09/30/13   JPY      44.90
Daikyo Inc.                   1.880%   03/12/12   JPY      72.30
Japan Airlines                3.100%   01/22/18   JPY      74.35
JPN Exp Hld/Debt              0.500%   09/17/38   JPY      57.94
Nippon Residentl              1.500%   02/18/11   JPY      73.09
Nippon Residentl              1.900%   09/13/12   JPY      73.19
Nis Group                     8.060%   06/20/12   USD      39.00
Orix Corp                     2.190%   04/18/17   JPY      74.65
Promise Co Ltd                2.060%   03/20/14   JPY      71.44
Shinsei Bank                  3.750%   02/23/16   JPY      72.75
Shinsei Bank                  5.625%   12/29/49   GBP      55.00
Takefuji Corp                 9.200%   04/15/11   JPY      47.87
Takefuji Corp                 9.200%   04/15/11   USD      47.87
Takefuji Corp                 8.000%   11/01/17   USD      12.12
Takefuji Corp                 4.000%   06/05/22   JPY      64.65
Takefuji Corp                 4.500%   10/22/32   JPY      58.41


   MALAYSIA
   --------
Advance Synergy Berhad        2.000%   01/26/18   MYR       0.07
Aliran Ihsan Resources Bhd    5.000%   11/29/11   MYR       1.02
AMBB Capital                  6.770%   01/29/49   USD      74.33
Berjaya Land Bhd              5.000%   12/30/09   MYR       3.38
Crescendo Corp B              3.750%   01/11/16   MYR       0.73
Dutaland Bhd                  4.000%   04/11/13   MYR       0.77
Dutaland Bhd                  4.000%   04/11/13   MYR       0.46
Eastern & Orient              8.000%   07/25/11   MYR       1.21
EG Industries                 5.000%   06/06/10   MYR       0.38
Huat Lai Resources            5.000%   03/28/10   MYR       0.40
Kamdar Group Bhd              3.000%   11/09/09   MYR       0.25
Kretam Holdings               1.000%   08/10/10   MYR       1.00
Kumpulan Jetson               5.000%   11/27/12   MYR       1.03
LBS Bina Group                4.000%   12/31/09   MYR       0.40
Lion Diversified              4.000%   12/17/13   MYR       0.92
Mithril Bhd                   3.000%   04/05/12   MYR       0.55
Nam Fatt Corp                 2.000%   06/24/11   MYR       0.20
Olympia Industri              2.800%   04/11/13   MYR       0.21
Olympia Industri              4.000%   04/11/13   MYR       0.22
Plus SPV Bhd                  2.000%   03/11/19   MYR      72.94
Puncak Niaga Hld              2.500%   11/18/16   MYR       0.70
Rubberex Corp                 4.000%   08/14/12   MYR       0.95
Talam Corp Bhd                2.000%   06/28/19   MYR      23.39
Tradewinds Corp               2.000%   02/08/12   MYR       0.70
Tradewinds Plant              3.000%   02/28/16   MYR       1.10
TRC Synergy                   5.000%   01/20/12   MYR       1.10
Wah Seong Corp                3.000%   05/21/12   MYR       2.30
Wijaya Baru Glob              7.000%   09/17/12   MYR       0.41
YTL Cement Bhd                4.000%   11/10/15   MYR       1.86


   NEW ZEALAND
   -----------
Allied Nationwid             11.520%   12/29/49   NZD      41.00
BBI Ntwrks NZ Ltd             8.000%   11/30/12   NZD       0.43
Blue Star Print               9.100%   09/15/12   NZD       2.18
Capital Prop NZ               8.000%   04/15/10   NZD      14.00
Contact Energy                8.000%   05/15/14   NZD       1.03
Fidelity Capital              9.250%   07/15/13   NZD      74.06
Fletcher Buildin              7.550%   03/15/11   NZD       7.60
Fletch Build Fin              8.850%   03/15/10   NZD       8.70
Fletcher Bui                  8.500%   03/15/15   NZD       9.25
Fonterra                      8.740%   11/29/49   NZD      68.05
Infrastr & Util               8.500%   09/15/13   NZD       9.70
Infratil Ltd                  8.500%   11/15/15   NZD      10.00
Infratil Ltd                 10.180%   12/29/49   NZD      59.00
Marac Finance                10.500%   07/15/13   NZD       0.64
Provencocadmus                2.000%   04/15/10   NZD       0.69
South Canterbury             10.500%   06/15/11   NZD       0.73
South Canterbury             10.430%   12/15/12   NZD       0.59
St Laurence Prop              9.250%   07/15/10   NZD      73.62
St Laurence Prop              9.250%   05/15/11   NZD      58.90
Tower Capital                 8.500%   04/15/14   NZD       0.99
Trustpower Ltd                8.500%   09/15/12   NZD       8.00
Trustpower Ltd                8.500%   03/15/14   NZD       7.90
Vector Ltd                    7.800%   10/15/14   NZD       1.00
Vector Ltd                    8.000%   12/29/49   NZD       7.65


   SINGAPORE
   ---------
Blue Ocean                   11.000%   06/28/12   USD      34.92
Sengkang Mall                 8.000%   11/20/12   SGD       1.49
WBL Corporation               2.500%   06/10/14   SGD       1.89


   SOUTH KOREA
   -----------
United Eng                    1.000%   03/03/14   SGD       1.20
Woori Bank                    6.208%   05/02/37   USD      73.50


   SRI LANKA
   ---------
Sri Lanka Govt                7.500%   08/15/18   LKR      71.87
Sri Lanka Govt                7.000%   10/01/23   LKR      62.81


   THAILAND
   --------
G Steel                      10.500%   10/04/10   USD      14.99


                         *********

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

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

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


                            *********


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

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

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

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

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





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