TCRAP_Public/090914.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

           Monday, September 14, 2009, Vol. 12, No. 181

                            Headlines

A U S T R A L I A

BEARINGPOINT INC: Closes Sale of Australian Consulting Business
SMART SERIES: S&P Raises Ratings on Four Classes of 2007-1 Notes


C H I N A

CHINA SOUTHERN: Seeks for More Government Funding
VENETIAN MACAU: Bank Debt Trades at 7.04% Off in Secondary Market


H O N G  K O N G

ASCENT VANTAGE: Inability to Pay Debts Prompts Wind-Up
ASIA ALUMINUM: S&P Withdraws 'D' Long-Term Corporate Credit Rating
CHINA POWERLIGHT: Creditors' Proofs of Debt Due on October 11
EASTMAN BASE: Creditors' Proofs of Debt Due on October 15
FOOTSTOP LIMITED: Arboit and Blade Step Down as Liquidators

HUGO EDUCATION: Creditors' Proofs of Debt Due on October 31
KAR SHING: Chung and Har Step Down as Liquidators
KHIVA LIMITED: Creditors' Proofs of Debt Due on October 9
PALMY ENTERPRISE: Seng and Lo Step Down as Liquidators
POLAND TRADING: Placed Under Voluntary Wind-Up

RIGHTMAN INVESTMENT: Seng and Lo Step Down as Liquidators
SHANGHAI METROADS: Members' Final Meeting Set for October 12
SOCIETY FOR: Placed Under Members' Voluntary Liquidation
TOP WONDER: Appoints Chung and Kit as Liquidators
VSNL INTERNATIONAL: Yu and Chiong Step Down as Liquidators

YI FENG: Placed Under Members' Voluntary Liquidation


I N D I A

HOTHUR TRADERS: CRISIL Assigns 'C/P4' Ratings on Bank Facilities
JET AIRWAYS: Pilots Agree to End Five-Day Strike
KARUR VYSYA: Fitch Assigns Individual Rating at 'D'
KINGFISHER AIRLINES: Faces Winding Up Suit from BPCL
LAKSHMI VILAS: Fitch Affirms Individual Rating to 'D/E'

MITTAPALLI AUDINARAYANA: CRISIL Rates INR300MM Bank Debt at 'B+'


I N D O N E S I A

BANK CENTURY: Former Owner Gets Four Years Prison Term
PT INDOSAT: Plans to Sell Bonds Worth IDR1.5 Trillion in Q4


J A P A N

HARVEST TWO: Fitch Downgrades Ratings on Various Classes
JAPAN AIRLINES: AMR Aims for Expansive Joint Venture With JAL
JAPAN AIRLINES: Delta Air Courting JAL for Minority Stake
NEW CITY: Oaktree Ready to Renew Talks with Creditors


K O R E A

AIRPORT RAILROAD: KORAIL to Acquire Firm for US$979.3 Million
* SOUTH KOREA: IDK to Lend Struggling Firms Over KRW2 Billion


M O N G O L I A

TRADE AND DEVELOPMENT: Moody's Confirms Ba3 Ratings


N E W  Z E A L A N D

HANOVER FINANCE: Investor Withdraws NZ$697 Claim
* NEW ZEALAND: Retail Sales Down 0.5% in July 2009


P A K I S T A N

HOUSE BUILDING: Is Technically Bankrupt, Finance Adviser Says


P H I L I P P I N E S

TRIFECTA TRADING: Inability to Pay Taxes Spurs BIR Closure Order


S I N G A P O R E

AVAGO TECH: Offers 95 Cents on Dollar for Floating Rate Notes
LEHMAN BROTHERS: Singaporean Minibond Investors Sue RBS


                         - - - - -


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


BEARINGPOINT INC: Closes Sale of Australian Consulting Business
---------------------------------------------------------------
BearingPoint Australia Pty. Limited, a wholly owned subsidiary of
BearingPoint, Inc., on August 6, 2009, entered into a Business
Sale Agreement with BPA MBO Pty Limited, BPA MBO Asset Pty Limited
(as trustee for the BPA MBO Asset Unit Trust), BPA MBO Services
Pty Limited and BPA MBO Trading Pty Limited for the sale of the
Company's consulting business in Australia to local management.

Pursuant to the Australian Business Sale Agreement, the MBO team
agreed to purchase the business of BearingPoint Australia through
the purchase and assumption of certain assets and liabilities of
BearingPoint Australia and for a purchase price of AU$1,000
(exclusive of Australian Goods and Services Tax).

Additional fees are payable by the MBO team pursuant to a
Trademark License Agreement and Cross-License Agreement.  The
BearingPoint Australia Transaction was completed on September 4,
2009.

                            Asset Sales

The Company is pursuing the sale of all or substantially all of
its businesses and assets to a number of parties.  The Company
expects that the sale transactions will result in modification of
the plan of reorganization originally filed with the Bankruptcy
Court on February 18, 2009 and, if the Company is successful in
selling all or substantially all of its assets, in the liquidation
of the Company's business and the Company ceasing to operate as a
going concern.

On April 2, BearingPoint International Bermuda Holdings Limited,
BearingPoint's indirect subsidiary, entered into a Share Sale
Agreement with PwC Advisory Co., Ltd., the Japanese member firm of
the PricewaterhouseCoopers global network of firms, for the sale
of BearingPoint's consulting business in Japan to PwC Japan for
roughly $45 million.  In addition, PwC Japan assumed the
intercompany debt owed by certain non-debtor subsidiaries of
BearingPoint to BearingPoint Co., Ltd. (Chiyoda-ku).  The closing
of the PwC Japan Transaction occurred on May 11.

On May 8, 2009, BearingPoint closed the sale of a significant
portion of its assets related to BearingPoint's North American
Public Services business to Deloitte LLP.  BearingPoint received
net proceeds of roughly $329.3 million.

On April 17, BearingPoint and certain of its subsidiaries entered
into an Asset Purchase Agreement with PricewaterhouseCoopers LLP
pursuant to which BearingPoint agreed to sell a substantial
portion of its assets related to its North American Commercial
Services business unit, including Financial Services, to PwC and
PwC agreed to assume certain liabilities associated with the
assets.  In addition, affiliates of PwC also entered into
definitive agreements to purchase the equity interests of
BearingPoint Information Technologies (Shanghai) Limited, a
subsidiary of BearingPoint that operates a global development
center in China, and certain assets of a separate global
development center in India.

On June 15, 2009, BearingPoint closed the sale of their Commercial
Services Business to PwC.  The purchase price for the PwC U.S.
Transaction was $39 million.  BearingPoint also sold BearingPoint
China GDC to PwC, and anticipates closing the China Transaction
and the PwC India Transaction will close within the next several
months; however, there can be no assurance that the transactions
will be completed.

On July 23, BearingPoint won approval to sell to CSC Brazil
Holdings LLC and Computer Sciences Corporation its consulting
business in Brazil.  CSC agreed to purchase BearingPoint, S.A.,
through the purchase of all issued and outstanding shares of
common stock of BearingPoint Brazil, for a purchase price of
US$7.9 million.  The consummation of the Brazil Transaction was to
occur on or prior to August 7.

As reported by the Troubled Company Reporter on September 7, 2009,
BearingPoint completed the sale of the Company's Europe, Middle
East and Africa practice to its European management team for an
aggregate price of approximately US$69 million in total
consideration.

                         About BearingPoint

BearingPoint, Inc. -- http://www.BearingPoint.com/-- was one of
the world's largest providers of management and technology
consulting services to Global 2000 companies and government
organizations in more than 60 countries worldwide.  Based in
McLean, Va., BearingPoint -- a former consulting arm of KPMG LLP -
- has approximately 15,000 employees focusing on the Public
Services, Commercial Services and Financial Services industries.
The Company's service offerings are designed to help clients
generate revenue, increase cost-effectiveness, manage regulatory
compliance, integrate information and transition to "next-
generation" technology.

BearingPoint, Inc., fka KPMG Consulting, Inc., together with its
units, filed for Chapter 11 protection on February 18, 2009
(Bankr. S.D.N.Y., Case No. 09-10691).  Alfredo R. Perez, Esq., at
Weil Gotshal & Manges LLP, in Houston; Marcia J. Goldstein, Esq.,
Ronit J. Berkovich, Esq., and Jose R. Alcantar, Esq., at Weil
Gotshal & Manges LLP, in New York, represent the Debtors as
restructuring counsel.  AlixPartners, LLP, is the Debtors'
restructuring advisors.  Greenhill & Co., LLC, is the Debtor's
financial advisor & investment banker.  Jeffrey S. Sabin, Esq., at
Bingham McCutchen LLP represents the Creditors' Committee as
counsel.

BearingPoint disclosed total assets of $1,762,689,000, and debts
of $2,231,839,000 as of September 30, 2008.


SMART SERIES: S&P Raises Ratings on Four Classes of 2007-1 Notes
----------------------------------------------------------------
Standard & Poor's Ratings Services raised its ratings on class B,
C, D, and E notes issued by SMART Series 2007-1 Trust.  At the
same time, Standard & Poor's affirmed the 'AAA' rating on the
class A-2 notes.  SMART Series 2007-1 Trust's AU$1,700 million of
floating-rate notes were issued in March 2007 and are backed by
commercial hire purchase, chattel mortgage contracts, novated
leases, and finance leases originated by Macquarie Leasing Pty
Ltd.

The upgrades reflect the strong asset performance over the life of
the transaction and increases in the subordination as a percentage
of outstanding balance for each class of notes.  The credit
support available for each upgraded class of notes is sufficient
to cover S&P's estimated losses under a higher level stress
relative to their previous ratings.  To date, cumulative net
losses are equal to 0.44% of the original receivables balance and
have been absorbed by excess spread; there is currently no charge-
offs to notes.  Furthermore, the levels of arrears are within
S&P's expectations, with loans in arrears greater than 30 days
totaling 0.49% of the current receivables balance.  The portfolio
is well seasoned; 78% of the underlying receivables have paid down
and the weighted average term to maturity of the remaining
receivables is 14 months.

                          Ratings Raised

   Name                         Class    Rating to   Rating from
   ----                         -----    ---------   -----------
   SMART Series 2007-1 Trust    B        AA          A
   SMART Series 2007-1 Trust    C        A           BBB
   SMART Series 2007-1 Trust    D        BBB         BB
   SMART Series 2007-1 Trust    E        BB          B

                         Ratings Affirmed

        Name                            Class      Rating
        ----                            -----      ------
        SMART Series 2007-1 Trust       A-2        AAA


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


CHINA SOUTHERN: Seeks for More Government Funding
-------------------------------------------------
China Southern Airlines Co. is applying for more government funds
and projecting improved earnings in the second half, The Wall
Street Journal reports.

Citing China Southern Chairman Si Xianmin in an interview Thursday
on the sidelines of the World Economic Forum, the Journal
discloses that the airline, China's largest carrier by fleet size,
is applying for a fresh capital injection from the government and
hopes Beijing will offer more stimulus measures to lift the ailing
industry out of a slump.

The Journal notes Mr. Xianmin also said China Southern will
postpone the delivery of six Boeing-777 cargo planes by an average
of one year.

He said the carrier's earnings in the second half of 2009 will be
stronger than in the first half due to recovering passenger and
cargo demand, the Journal relates.

Headquartered in Guangzhou, China, China Southern Airlines Co.
Ltd. -- http://www.cs-air.com-- operates airlines, as well as
perform aircraft maintenance and air catering operations in the
People's Republic of China and internationally.  It provides
commercial airlines, cargo services, logistics operations, air
catering, utility service, hotel operation, travel services,
aircraft leasing, and Internet services.

                          *     *     *

As of September 11, 2009, China Southern Airlines Co.
Ltd continues to carry Fitch Ratings 'B+' Long-term foreign
and local currency Issuer Default Ratings.


VENETIAN MACAU: Bank Debt Trades at 7.04% 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
92.96 cents-on-the-dollar during the week ended Sept. 11, 2009,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal.  This represents an increase of 1.11
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. 11,
among the 154 loans with five or more bids.

Meanwhile, participations in a syndicated loan under which Las
Vegas Sands Corp. is a borrower traded in the secondary market at
78.19 cents-on-the-dollar during the week ended Sept. 11, 2009,
according to data compiled by Loan Pricing Corp. and reported in
The Wall Street Journal.  This represents an increase of 0.69
percentage points from the previous week, The Journal relates.
The loan matures on May 1, 2014.  The Company pays 175 basis
points above LIBOR to borrow under the facility.  The bank debt
carries Moody's B3 rating and Standard & Poor's B- rating.  The
debt is also one of the biggest gainers and losers among widely
quoted syndicated loans in secondary trading in the week ended
Sept. 11, among the 154 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
================


ASCENT VANTAGE: Inability to Pay Debts Prompts Wind-Up
------------------------------------------------------
At an extraordinary general meeting held on August 31, 2009, the
members of Ascent Vantage Limited resolved to voluntarily wind up
the company's operations due to its inability to pay debts when it
fall due.

The company's liquidators are:

          Huen Ho Yin
          Mok Hon Kwong Thomas
          Li Po Chun Chambers, 8th Floor
          189 Des Voeux Road
          Central, Hong Kong


ASIA ALUMINUM: S&P Withdraws 'D' Long-Term Corporate Credit Rating
------------------------------------------------------------------
Standard & Poor's Ratings Services said that it had withdrawn its
'D' long-term corporate credit rating on Asia Aluminum Holdings
Ltd. and the 'D' issue rating on the company's US$450 million
senior unsecured notes due 2011.  The ratings were lowered to 'D'
on March 17, 2009, following the appointment of a provisional
liquidator.

The withdrawal of ratings reflects the limited assets remaining
under Asia Aluminum after an asset sale approved by a Hong Kong
court in June 2009.  The provisional liquidator, Ferrier Hodgson,
has confirmed that it has received payment for the sale.

According to the asset sale agreement, loans made in China and a
Hong Kong secured loan are expected to be repaid in full, while
Hong Kong unsecured bank lenders will receive about 50% of the
total loan amount.  Lenders for the US$450 million senior
unsecured notes will receive 19% of the principal amount and
payment-in-kind noteholders will receive less than 1%.


CHINA POWERLIGHT: Creditors' Proofs of Debt Due on October 11
-------------------------------------------------------------
The creditors of China Powerlight Limited are required to file
their proofs of debt by October 11, 2009, to be included in the
company's dividend distribution.

The company commenced wind-up proceedings on September 11, 2009.

The company's liquidator is:

          Lam Chin Chiu
          The Kwangtung Provincial Bank Building
          Room 2301-02, 23rd Floor
          409-415 Hennessy Road
          Causeway Bay, Hong Kong


EASTMAN BASE: Creditors' Proofs of Debt Due on October 15
---------------------------------------------------------
The creditors of Eastman Base Garment Factory Limited are required
to file their proofs of debt by October 15, 2009, to be included
in the company's dividend distribution.

The company commenced wind-up proceedings on August 31, 2009.

The company's liquidator is:

          Wong Kit Sang
          Tern Centre
          Tower 1, 8th Floor
          237 Queen's Road Central
          Hong Kong


FOOTSTOP LIMITED: Arboit and Blade Step Down as Liquidators
-----------------------------------------------------------
On September 11, 2009, Bruno Arboit and Simon Richard Blade
stepped down as liquidators of Footstop Limited.


HUGO EDUCATION: Creditors' Proofs of Debt Due on October 31
-----------------------------------------------------------
The creditors of Hugo Education Institute Company Limited are
required to file their proofs of debt by October 31, 2009, to be
included in the company's dividend distribution.

The company commenced wind-up proceedings on August 20, 2009.

The company's liquidator is:

          Chan Hung Pan
          FL D, 1st Floor, T 29
          Classical Gdn, Ma Wo Rd, Tai Po


KAR SHING: Chung and Har Step Down as Liquidators
-------------------------------------------------
On August 31, 2009, Wan Yiu Chung Paul and Lin Lai Har Wendy
stepped down as liquidators of Kar Shing Restaurant Limited.


KHIVA LIMITED: Creditors' Proofs of Debt Due on October 9
---------------------------------------------------------
The creditors of Khiva Limited are required to file their proofs
of debt by October 9, 2009, to be included in the company's
dividend distribution.

The company commenced wind-up proceedings on August 31, 2009.

The company's liquidators are:

          Thomas Andrew Corkhill
          Iain Ferguson Bruce
          Gloucester Tower, 8th Floor
          The Landmark, 15 Queen's Road Central
          Hong Kong


PALMY ENTERPRISE: Seng and Lo Step Down as Liquidators
------------------------------------------------------
On August 29, 2009, Natalia K M Seng and Susan Y H Lo stepped down
as liquidators Palmy Enterprise Limited.


POLAND TRADING: Placed Under Voluntary Wind-Up
----------------------------------------------
On August 28, 2009, the shareholders of Poland Trading Company
Limited passed a resolution that voluntarily winds up the
company's operations.

The company's liquidator is:

          Wong Pui Wing
          Victoria Towers, Unit G
          25th Floor, Tower 2
          188 Canton Road, Kowloon
          Hong Kong


RIGHTMAN INVESTMENT: Seng and Lo Step Down as Liquidators
---------------------------------------------------------
On August 29, 2009, Natalia K M Seng and Susan Y H Lo stepped down
as liquidators Rightman Investment Limited.


SHANGHAI METROADS: Members' Final Meeting Set for October 12
------------------------------------------------------------
The members of Shanghai Metroads Advertising Company Limited will
hold their final meeting on October 12, 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.


SOCIETY FOR: Placed Under Members' Voluntary Liquidation
--------------------------------------------------------
At an extraordinary general meeting held on September 9, 2009, the
members of The Society for the Promotion of New Fourth Army
History Limited resolved to voluntarily liquidate the company's
business.

The company's liquidator is:

          Lai Ka Cheung
          Hong Kong Trade Centre
          Room 1901-2, 19th Floor
          161-167 Des Voeux Road Central
          Hong Kong


TOP WONDER: Appoints Chung and Kit as Liquidators
-------------------------------------------------
On August 29, 2009, the creditors of Top Wonder Development
Limited appointed Lui Pui Chung and Ng Wai Kit as the company's
liquidators.

The Liquidators can be reached at:

          Lui Pui Chung
          Ng Wai Kit
          Bank of East Asia Harbour View Centre
          29th Floor, 56 Gloucester Road
          Wanchai, Hong Kong


VSNL INTERNATIONAL: Yu and Chiong Step Down as Liquidators
----------------------------------------------------------
Fok Hei Yu and Desmond Chung Seng Chiong stepped down as
liquidators of VSNL International (Hong Kong) Limited.


YI FENG: Placed Under Members' Voluntary Liquidation
----------------------------------------------------
On August 29, 2009, the members of Yi Feng Consultants &
Engineering Limited resolved to voluntarily liquidate the
company's business.

The company's liquidator is:

          Daniel Chun-Chiu Ng
          Enson CPA Limited
          Star House, Suite 607
          3 Salisbury Road
          Tsimshatsui, Kowloon
          Hong Kong


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


HOTHUR TRADERS: CRISIL Assigns 'C/P4' Ratings on Bank Facilities
----------------------------------------------------------------
CRISIL has assigned its ratings of 'C/P4' to the bank facilities
of Hothur Traders 100% EOU (HT), a part of the Hothur group. The
ratings reflect delays in term loan servicing by group company
Hothur Ispat Pvt Ltd (Hothur Ispat, rated 'D/P5' by CRISIL).  The
ratings also reflect the group's exposure to risks relating to
aggressive debt-funded capital expenditure and project
implementation, cyclicality in the iron and steel industry, and
volatility in raw material prices.  The impact of these weaknesses
is mitigated by the group's established presence in the sponge
iron business.

   Facilities                                Ratings
   ----------                                -------
   INR150.00 Million Cash Credit Limit *     C (Assigned)
   INR50.00 Million Bank Guarantee Limit     P4 (Assigned)

   *Fully Interchangeable with Export Packing Credit.

As part of this rating exercise, CRISIL has combined the credit
risk profiles of Hothur Ispat, HT, Hothur Trader, and Sharmeen
Transport Company, collectively known as the Hothur group.  This
is because the entities are under a common management and have
intra-group operational and financial linkages, including fungible
cash.

                          About the Group

Set up in the 1960s by Mr. Hussain Deeran, and currently managed
by his son, Mr. Hothur Mohammed Iqbal, the Hothur group is a major
player in the steel-related business in Bellary, Karnataka.  The
group consists of four entities engaged in iron ore mining, iron
ore crushing, and sponge iron manufacture. HT commenced operations
in February 2008, and is a 100 per cent export-oriented unit that
processes and exports iron ore fines.

The Hothur group reported a profit after tax (PAT) of INR0.33
billion on net sales of INR1.80 billion for 2007-08 (refers to
financial year, April 1 to March 31), against a PAT of INR0.21
billion and net sales of INR1.76 billion for 2006-07.


JET AIRWAYS: Pilots Agree to End Five-Day Strike
------------------------------------------------
Dow Jones Newswires reports that pilots of Jet Airways (India)
Ltd. agreed to resume work beginning Sunday, September 13, ending
a five-day deadlock with the management, which agreed to take back
four sacked pilots.

Dow Jones, citing Jet Airways in a statement, says the management
and the pilots have also agreed to form a consultative group to
continue the current dialogue.

According to Dow Jones, the company said the consultative group
will comprise its Chief Executive Officer and at least two
directors.  It will also have at least five pilots and two flight
operations representatives, Dow Jones adds.

As reported in the Troubled Company Reporter-Asia Pacific on
August 25, 2009, that Jet Airways' pilots sent a strike notice to
the management saying they would go on an indefinite strike from
September 7.  The pilots are demanding the reinstatement of two
colleagues -- Sam Thomas and G Balaraman -- who had been
terminated for joining a new formed union, the National Aviators
Guild.

On September 9, 2009, the TCR-AP reported that Jet Airways (India)
Ltd. canceled at least 130 flights Tuesday after a large chunk of
pilots failed to report for work as a protest against the
termination of two pilots.  Jet Airways said in a press statement
that a section of the pilots have resorted to a "simulated strike
by reporting sick".

Dow Jones relates that K.G. Vishwanath, vice president for
commercial strategy and investor relations told reporters on the
sidelines of a news conference that Jet Airways lost up to US$2.2
million in revenue each day as more than 1000 flights got canceled
and the airline lost 100,000 passengers due to the standoff that
last for five days.

Separately, Bloomberg News reports that Jet Airways, seeking to
regain customer confidence following a five-day strike by its
pilots, said it would cut local fares by half for three days
starting Monday, September 14.

"With these new low, limited-time fares, we hope to welcome
travelers back aboard Jet Airways," Bloomberg quoted Chief
Executive Officer Wolfgang Prock-Schauer as saying.

                         About Jet Airways

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

                           *     *     *

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


KARUR VYSYA: Fitch Assigns Individual Rating at 'D'
---------------------------------------------------
Fitch Ratings has assigned south India based Karur Vysya Bank
Limited a National Long-term rating of 'A+(ind)', and the same to
its proposed INR3 billion Lower Tier 2 subordinated bonds
programme.  The Outlook is Stable.  Meanwhile, the agency has also
affirmed KVB's other ratings:

  -- National Short-term rating at 'F1(ind)';
  -- INR3 billion certificates of deposit at 'F1(ind)';
  -- Individual rating at 'D' and
  -- Support rating at '5'

KVB's ratings are driven by a track record of stable profitability
and satisfactory core capitalization which provides it resilience
during the cyclical downturn.  The ratings also reflect the bank's
vulnerability to asset quality shocks due to concentration risks
in its credit portfolio, in particular industry sectors and small
and mid-sized companies.  While Fitch expects KVB's profitability
to fall slightly in FY11 (year-end March) due to credit costs, its
ROA is expected to remain slightly higher than its south India
based, small private sector bank peers.

The bank restructured 5.1% (higher than system average of 4.3%) of
loans in Q110 and Fitch expects fairly high delinquencies from the
portfolio.  This is because more than 50% of these loans are in
the textile sector which, in Fitch's opinion, may not recover in
the near term.  However, the impact of delinquencies from these
loans by way of credit cost will be felt more in FY11 than in FY10
as most of the loan reschedulement is done for more than 18
months.  Consequently, ROA is expected to improve slightly in FY10
and fall in FY11.  The downward repricing of deposits till the
third quarter of FY10 will also support profitability for that
period.

KVB has generally been conservative in maintaining higher
capitalization and this has remained one of its key rating
strengths.  Core capital level (FY09: equity to assets ratio of
7.9%) as well as regulatory Tier 1 (FY09: 14.40%) and total
capital ratios (FY09: 14.92%) have been higher than the system
median in the last five years.  Also, the reduction in dividend
payout ratio to 33% in FY09 from 39% in FY07 is, in Fitch's
opinion, timely and prudent as credit conditions in FY10 and FY11
are expected to be challenging.

KVB is a small private sector bank that focuses on small and mid-
sized companies.  It operates with a network of over 300 branches;
the two south Indian states of Tamil Nadu and Andhra Pradesh
together account for close to 60% of its loans and deposits.  The
bank is listed on the domestic bourses and its shares are widely
held.


KINGFISHER AIRLINES: Faces Winding Up Suit from BPCL
----------------------------------------------------
State-owned oil marketer Bharat Petroleum Corp. Ltd. has filed a
winding up petition against Kingfisher Airlines Ltd. in the
Karnataka high court due to unpaid jet fuel, livemint.com reports
citing two executives aware of the matter.

According to the report, this is the first instance of a refiner
filing a winding-up petition against a local airline following the
slump in air travel last year that led some of them to rack up
losses.  A company that's wound up would go into administration
and its assets sold to pay off dues, livemint.com notes.

The report discloses that as of August 24, Kingfisher owes:

   -- INR314 crore to BPCL;
   -- INR26.18 crore to Indian Oil Corp. Ltd; and
   -- INR587 crore to Hindustan Petroleum Corp. Ltd.

"BPCL approached Bombay high court on August 11, asking us to
deposit funds pending hearing and disposal of arbitration
proceedings.  The matter was heard on September 4 and the court
has given us two weeks to file a response," the report quoted
Kingfisher Airlines spokesman as saying.

The report says the petition filed by BPCL follows a plea for
arbitration in the Bombay high court in June.

Headquartered in Mumbai, India, Kingfisher Airlines --
http://www.flykingfisher.com/-- formerly known as Deccan
Aviation Ltd, serves about 35 domestic destinations with a fleet
of more than 40 aircraft, including Airbus jets and ATR 72
turboprops.  It maintains bases in major cities such as Delhi and
Mumbai.  Kingfisher Airlines is a unit of UB Holdings, best known
for its United Breweries unit, and the carrier shares the
Kingfisher brand with a popular Indian beer.  UB Holdings also
owns a stake in another domestic carrier, Air Deccan, whose
operations it combined with Kingfisher Airlines in mid-2008.
Kingfisher Airlines began flying in 2005.

                          *     *     *

Kingfisher Airlines reported a net loss of INR16.09 billion for
the year ended March 31, 2009, compared with a net loss of
INR1.89 billion in the year ended March 31, 2008.

In the financial year ended June 30, 2007, Deccan Aviation
reported a net loss of INR4.2 billion, up 23% from the
INR3.41 billion loss incurred in FY 2006.


LAKSHMI VILAS: Fitch Affirms Individual Rating to 'D/E'
-------------------------------------------------------
Fitch Ratings has downgraded south India based Lakshmi Vilas
Bank's National Long-term rating to 'BBB+(ind)' from 'A-(ind)',
and its National Short-term rating to 'F2+(ind)' from 'F1(ind)'.
The agency has simultaneously downgraded LVB's INR300 million
Lower Tier 2 subordinated bonds to 'BBB+(ind)' from 'A-(ind)' and
assigned its proposed INR1bn Lower Tier 2 subordinated bonds
programme a 'BBB+(ind)' National Long-term rating.  The Individual
and Support ratings have been affirmed at 'D/E' and '5',
respectively.  The Outlook on the Long-term ratings is Stable.

A D individual rating shows that a bank has weaknesses of internal
and/or external origin.  There are concerns regarding its
profitability and balance sheet integrity, franchise, management,
operating environment or prospects.  Banks in emerging markets are
necessarily faced with a greater number of potential deficiencies
of external origin.

An E individual rating shows that a bank has very serious
problems, which either requires or is likely to require external
support.

LVB's loans increased 35% in FY09 (year end-March) and the bank
plans to maintain a similar pace of growth in FY10 and FY11 - a
time that Fitch expects credit conditions to remain difficult.
Therefore, the agency believes the bank will be vulnerable to
asset quality deterioration.  Even though LVB's specific and
general loan loss reserve coverage remains adequate (at 73% as of
FY09), overall defenses to manage such risks will be limited
because a planned capital infusion along with future profits are
expected to go towards supporting growth.  In Fitch's opinion,
this will increase the risk profile of the bank, and hence
reflected in the downgrades.

LVB's total capital adequacy ratio (end-June 2009: 10.02%) is
lower than peers and the bank plans to raise up to INR3bn common
equity through a rights issue in FY10.  Given the rapid growth
plans, this new capital could get used up within two years and
further issuances may be needed to maintain the capital adequacy
ratio at the bank's targeted level of 12% on a sustained basis.

While the bank's gross NPL ratio improved to 2.7% in FY09 from
3.5% in FY08, Fitch notes that this is due to the denominator
effect of loan growth, as well as the reporting of restructured
loans (Q110 4%) as standard assets under a special regulatory
dispensation.  The ratio may continue to improve in FY10 as the
majority of restructured loans are due in FY11.  Fitch expects a
large portion of these loans could become NPLs because most of
these pertain to the textile sector, which in Fitch's opinion is
likely to take time to recover.

LVB has been aggressive in pricing term deposits and to some
extent, loans.  This strategy, along with the reduction in low-
cost current and savings deposits has resulted in its net interest
margin to be the weakest among its peers.  However, its NIM is
expected to improve in FY10 due to falling deposit rates,
especially on high-cost wholesale deposits, which accounts for 15%
of LVB's term deposits.  This, combined with lower credit costs
due to restructuring, could improve the return on assets ratio in
FY10.

LVB is a south India focused, small private sector bank in India.
It operates a network of 251 branches and lends mainly to small-
to-mid size companies.  After the capital infusion, LVB plans to
increase its lending to larger corporations, and has implemented
core banking software at all its branches with an aim to expand
its technology based services, particularly for mobilizing
deposits.


MITTAPALLI AUDINARAYANA: CRISIL Rates INR300MM Bank Debt at 'B+'
----------------------------------------------------------------
CRISIL has assigned its rating of 'B+/Stable' to the bank
facilities of Mittapalli Audinarayana Enterprises Pvt Ltd:

   INR300 Million Open Cash Credit/    B+/Stable (Assigned)
                   Packing Credit

The rating reflects Mittapalli's weak financial risk profile,
marked by low net worth and weak debt protection measures, and
exposure to risks relating to intense competition in the tobacco
leaf processing industry.  These weaknesses are, however,
partially offset by Mittapalli's average business risk profile,
and the benefits that the company derives from its promoters'
experience in the tobacco processing industry, and established
relationships with customers.

Outlook: Stable

CRISIL believes that Mittapalli will maintain a stable business
risk profile over the medium term, on the back of established
relationships with customers, and promoters' experience.
Substantial improvement in Mittapalli's financial risk profile
through improved gearing, or high profitability, will result in a
revision in outlook to 'Positive'.  Conversely, deterioration in
financial risk profile on account of unexpected increase in debt
or reduced profitability, or adverse government regulations may
lead to a revision in outlook to 'Negative'.

                   About Mittapalli Audinarayana

Set up as a partnership firm in 1964, Mittapalli converted to a
private limited company in 2006.  It is promoted by Mr. Mittapalli
Rama Rao and his sons, Mr. Mittapalli Umamaheswar Rao and Mr.
Mittapalli Siva Kumar.  Mittapalli processes tobacco leaves for
sale in India and abroad.  Exports account for around 75 per cent
of Mittapalli's sales.  Mittapalli reported a profit after tax
(PAT) of INR10million on net sales of INR674 million for 2008-09
(refers to financial year, April 1 to March 31), as against a PAT
of INR3 million on net sales of INR506 million for 2007-08.


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


BANK CENTURY: Former Owner Gets Four Years Prison Term
------------------------------------------------------
The Central Jakarta District Court has sentenced former owner of
Bank Century Robert Tantular to four years in prison for violating
banking law, The Jakarta Post reports.  A panel of judges also
ordered the defendant to pay IDR50 billion (US$5 million) in fines
or serve an additional of five months in jail, the report says.

Mr. Tantular was found guilty for his involvement in the purchase
of dubious securities worth US$230 million in 2002 along with
other Bank Century shareholders UK national Rafat Ali Rivsi and
Saudi Arabian Hesyam Al Warraq, the report said.

According to the Post, the sentence is less than the eight years
prosecutors wanted because Mr. Tantular was cleared of other
charges of alleged embezzlement of a US$18 million deposit of
tycoon Boedi Sampoerna and related to dubious loans of IDR121.3
billion and IDR60 billion to PT Wibowo Wadah Rejeki and PT Accent
Investment Indonesia.

The report notes Mr. Tantular said he would file an appeal against
the four-year jail term and fine imposed.

Rivsi and Al Warraq, along with Dewi Tantular, Mr. Tantular's
sister, went on the run and are now being hunted by Interpol for
their role in ransacking Bank Century.

As reported in the Troubled Company Reporter-Asia Pacific on
November 25, 2008, the government-sanctioned Deposit Insurance
Corporation (LPS) was injecting INR1 trillion into PT Bank Century
Tbk to keep it afloat.  LPS injected a total of IDR6.76 trillion
as of July 21, according to The Jakarta Post.

Bank Century is a relatively small lender with total assets of
IDR15 trillion (US$1.3 billion).  The Post said the government
decided to take over Bank Century -- the first such move since the
1997-1998 crisis -- to save it from collapse and restore
confidence in the banking sector.

                         About Bank Century

Headquartered in Jakarta, Indonesia, PT Bank Century Tbk --
http://www.centurybank.co.id/-- is a financial institution.  The
Bank's products and services include deposits, savings, loans,
mutual funds, bank notes, export and import financing, credit and
commercial banking.  The Bank is supported by 27 branch offices,
30 supporting offices and eight cash offices nationwide.


PT INDOSAT: Plans to Sell Bonds Worth IDR1.5 Trillion in Q4
-----------------------------------------------------------
The Jakarta Post reports that PT Indosat plans to sell bonds worth
IDR1.5 trillion (US$149.6 million) in the fourth quarter of the
year to help refinance its maturing debts.

According to the report, Indosat President Director Harry Sasongko
said the company had appointed PT Mandiri Sekuritas, PT DBS
Vickers and PT Danareksa as underwriters in the rupiah-denominated
bond issue.

The report says the bonds will be IDR1.1 trillion in the form of
conventional bonds and IDR400 billion in sharia bonds and will
have a maturity period of up to 5 years.

Mr. Sasongko, as cited by the Post, said the proceeds would be
used to repay the company's loans.   The company's total
liabilities, according to its latest statement, rose 15.3% to
IDR22.68 trillion in the first half of this year, the Post notes.

                         About PT Indosat

PT Indosat Tbk -- http://www.indosat.com/-- is a
telecommunication and information service provider in Indonesia
that provides cellular services (Mentari, Matrix and IM3), fixed
telecommunication services or fixed voice (IDD 001, IDD 008 and
FlatCall 01016, fixed wireless service StarOne and I-Phone).
Indosat also provides Multimedia, Internet & Data Communication
Services (MIDI) through its subsidiary company, Indosat
Mega Media (IM2) and Lintasarta.  Indosat also provides 3.5 G
with HSDPA technology.  Indosat's shares are listed in the
Indonesia Stock Exchange (IDX:ISAT) and its American Depository
Shares are listed in the New York Stock Exchange (NYSE:IIT).

                          *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
February 27, 2009, Fitch Ratings upgraded PT Indosat Tbk's Long-
term foreign currency Issuer Default Rating to 'BB+' from 'BB-'
(BB minus) and Long-term local currency IDR to 'BBB-' (BBB minus)
from 'BB-' (BB minus).  The Outlook is Stable.  At the same time,
the ratings on Indosat's senior unsecured notes programme have
been upgraded to 'BB+' from 'BB-' (BB minus).

The TCR-AP also reported on March 23, 2009, that Indosat's
announcement that it intends to solicit consent from creditors to
loosen the Debt/Equity covenant and liken the financial
definitions of the covenants across the company's different debt
instruments, will have no immediate impact on the company's Ba1
local currency corporate family and Ba2 senior unsecured ratings
rated by Moody's.


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


HARVEST TWO: Fitch Downgrades Ratings on Various Classes
--------------------------------------------------------
Fitch Ratings has downgraded three classes of trust beneficiary
interests from Harvest Two Trust due September 2011, following the
implementation of the recently published criteria for Japanese
CMBS surveillance.  Fitch took these rating actions:

  -- JPY70.5 billion* Class A TBIs affirmed at 'AAA'; off Rating
     Watch Negative (RWN); Outlook Negative;

  -- JPY13.6 billion* Class B TBIs downgraded to 'A+' from 'AA';
     off RWN; Outlook Negative;

  -- JPY13.6 billion* Class C TBIs downgraded to 'BBB-' from 'A';
     off RWN; Outlook Negative; and

  -- JPY14.3 billion* Class D TBIs downgraded to 'B' from 'BBB';
     off RWN; Outlook Negative.

  * as of 10 September 2009

The Class B, C and D TBIs have been downgraded as a result of
Fitch's view regarding the potential recovery amounts from the
underlying loan.  Fitch has also resolved the RWN status on all
classes, since the likelihood of additional rating action has
reduced due to the revaluation performed.  However, the agency has
assigned Negative Outlooks to all classes to reflect the short
time to loan maturity and legal final maturity of the transaction
(September 2011).

Fitch notes that although the operating performance of the
underlying collateral has generally remained in line with the
agency's initial expectations, market rents have notably declined
since early 2009 for similar properties in the same area, and cap
rate expectations quoted by real estate investors have somewhat
increased.

In line with recently published criteria, the underlying property
has been revalued in accordance with the loan status and time to
loan maturity.  As a result, assuming disposition under the
stressed market condition, Fitch has adopted a value for the
underlying property that is 35% lower than its initial valuation,
for the purpose of this review.

Fitch assigned ratings to the Harvest Two Trust transaction in
November 2007.  The TBIs are backed by one real estate loan, which
is ultimately backed by a condominium ownership interest in a
Class A office building located in Chiyoda-ku, Tokyo.

For further information on the surveillance criteria and
methodology, please see the criteria report, 'Criteria for
Japanese CMBS Surveillance' and the special report, 'Application
and Impact of the Japanese CMBS Surveillance Criteria'.  Both
reports were published on 2 September 2009 and are available on
the agency's website, www.fitchratings.com.  Note that the reports
have been published simultaneously and are intended to be read in
conjunction with each other.  The criteria report describes the
approach and framework of the methodology, and the special report
details the application and assumptions adopted for the 2009
surveillance review.

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


JAPAN AIRLINES: AMR Aims for Expansive Joint Venture With JAL
-------------------------------------------------------------
AMR Corp. is in talks with Japan Airlines Corp. to forge an
expansive joint venture with the carrier, Mike Esterl at The Wall
Street Journal reports, citing people familiar with the matter.

The Journal says that American Airlines would also consider taking
a minority stake in JAL, although any such investment would likely
be capped at hundreds of millions of dollars.  The report states
that American Airlines, which doesn't have a hub in Japan, relies
on JAL.  The two airlines, says the report, have had code-sharing
deals since the 1990s.

According to The Journal, AMR is trying to keep JAL away from
Delta Air Line Inc.  The Journal says that Delta is negotiating to
acquire a minority stake of around US$300 million in JAL.  The
Journal relates that Delta wants JAL to join its rival SkyTeam
alliance.

                             About AMR

Headquartered in Forth Worth, Texas, AMR Corporation (NYSE:
AMR) operates with its principal subsidiary, American Airlines
Inc. -- http://www.aa.com/-- a worldwide scheduled passenger
airline.  At the end of 2006, American provided scheduled jet
service to about 150 destinations throughout North America, the
Caribbean, Latin America, including Brazil, Europe and Asia.
American is also a scheduled airfreight carrier, providing
freight and mail services to shippers throughout its system.

Its wholly owned subsidiary, AMR Eagle Holding Corp., owns two
regional airlines, American Eagle Airlines Inc. and Executive
Airlines Inc., and does business as "American Eagle."  American
Beacon Advisors Inc., a wholly owned subsidiary of AMR, is
responsible for the investment and oversight of assets of AMR's
U.S. employee benefit plans, as well as AMR's short-term
investments.

                      About Japan Airlines

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.


JAPAN AIRLINES: Delta Air Courting JAL for Minority Stake
---------------------------------------------------------
Delta Air Line Inc. is seeking a minority stake of around
US$300 million in Japan Airlines Corp., much to the chagrin of
American Airlines, Mike Esterl at The Wall Street Journal reports,
citing people familiar with the matter.

The Journal relates that Delta also wants JAL to join its rival
SkyTeam alliance.

According to The Journal, AMR is in talks with Japan Airlines
Corp. to forge an expansive joint venture with the carrier, to
keep JAL away from Delta.

The Journal says that American Airlines would also consider taking
a minority stake in JAL, although any such investment would likely
be capped at hundreds of millions of dollars.  The report states
that American Airlines, which doesn't have a hub in Japan, relies
on JAL.  The two airlines, says the report, have had code-sharing
deals since the 1990s.

                      About Japan Airlines

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.


NEW CITY: Oaktree Ready to Renew Talks with Creditors
-----------------------------------------------------
Oaktree Capital Management LLC said it is ready to renew
discussions with New City Residence Investment Corp. creditors
who rejected a plan from Lone Star Funds to take control of
Japan's first failed property trust, Bloomberg News reports.

"We remain ready, willing and able to re-engage the
discussion with the New City creditors," Bloomberg quoted Robert
Zulkoski, head of Oaktree's special situations and real estate
team in Asia, as saying.

Bloomberg recalls that Mr. Zulkoski said in an interview on
Sept. 1 that Oaktree would be prepared to combine its Tokyo-based
property trust, Japan Rental Housing Investments Inc., with New
City should creditors reject the receivership plan from Lone Star.

Mr. Zulkoski said then that Oaktree, a Los Angeles-based private-
equity fund with about US$61 billion of assets, is exploring
merger opportunities for Japan Rental Housing with other Japanese
real estate investment trusts, Bloomberg relates.

Daiwa House-managed property trust BLife Investment Corp.,
meanwhile, said it will propose its own rehabilitation plan after
the rejection, Bloomberg notes.

The Troubled Company Reporter-Asia Pacific, citing Bloomberg News,
reported last week that New City Residence Investment Corp.'s
creditors rejected Lone Star Funds' revised plan to take control
of the company, opening the way for a rival bids.

New City's lawyer Makoto Tahira said creditors voted down Dallas-
based Lone Star's plan to pay JPY12.4 billion (US$134 million) for
Tokyo-based New City at a meeting at the Tokyo district court on
September 9, after an initial plan was rejected in July.

As reported in the TCR-AP on April 9, 2009, Lone Star beat Daiwa
House Industry Co., Oaktree Capital Management LP and other
investors in a bid to acquire New City, subject to creditor and
shareholder approval.  Bloomberg News, citing three people with
knowledge of the transaction, had said the deal would total about
US$1.2 billion including debt.

                      About New City Residence

Japan-based New City Residence Investment Corporation is a real
estate investment trust.  The company owns more than 6,700
apartments in Japan.

                           *     *     *

New City Residence Investment Corp. filed for bankruptcy on
Oct. 9, 2008, with JPY112.4 billion of debt attributing its
failure to difficulties in raising funds and selling properties
because of the global financial crisis.


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


AIRPORT RAILROAD: KORAIL to Acquire Firm for US$979.3 Million
-------------------------------------------------------------
Korea Railroad Corporation, a state-run railroad and train
company, said that it will acquire Airport Railroad Co. for
KRW1.2 trillion (US$979.3 million), The Korea Times reports.

The decision, however, is expected to stir up criticism that the
government is worsening management of KORAIL by putting the burden
of a failed privately-run infrastructure project on it, the report
said.

The report relates that KORAIL signed a memorandum of
understanding on the deal with Hyundai Engineering & Construction,
the representing seller of AREX, on the purchase of its 88.8%
stake.

The report says the deal will be finalized within this month if
the agreement is approved by a special board of both parties.

According to the report, the ministry said the takeover will
substantially lower the government's subsidy on the AREX
management.  "The deal will pull down the subsidy on deficit-
ridden AREX from 13.8 trillion won to below 6.7 trillion won until
2039," a ministry official was quoted by the Times as saying.

Citing critics, the Times notes that the takeover is likely to
further worsen the financial status of KORAIL, in a vicious circle
in which a faltering firm buys another.  KORAIL currently has an
accumulated deficit of KRW2.4 trillion, the Times discloses.

Airport Railroad Co. (AREX), is a private firm that operates the
railway linking Incheon International Airport and Seoul.


* SOUTH KOREA: IDK to Lend Struggling Firms Over KRW2 Billion
-------------------------------------------------------------
KBS WORLD Radio reports that the Industrial Bank of Korea will
introduce a program that provides funds for small firms in
difficult financial situations to help put them on the right track
before they become insolvent.

The report says the bank plans to select by year's end about 200
small firms with loans over KRW2 billion and a risk of insolvency.
The bank will lend the firms additional funds of up to KRW500
million and help them overcome financial difficulties by lowering
interest rates or principals, KBS WORLD notes.

KBS WORLD notes the bank will also help facilitate the selling of
the firms' assets to normalize business operations, while checking
the firms' implementation of restructuring plans.


===============
M O N G O L I A
===============


TRADE AND DEVELOPMENT: Moody's Confirms Ba3 Ratings
---------------------------------------------------
Moody's Investors Service has confirmed Trade and Development Bank
of Mongolia's D- Bank Financial Strength Rating, Ba3 local
currency long-term deposit rating, Ba3 local and foreign currency
long-term issuer ratings, Ba3 foreign currency senior unsecured
rating, Ba3 foreign currency senior unsecured medium-term notes,
and B1 foreign currency subordinate MTN rating

At the same time, Moody's has assigned all the above ratings a
negative outlook.

The rating action concludes the review for possible downgrade
initiated on June 11, 2009.  The review was originally prompted by
concern over the high refinancing risk that TDB faces as its
US$75 million euro medium-term notes is due in January 2010.

"Moody's confirmation of TDB's ratings and the assignment of a
negative outlook are based upon its stand-alone financial
strength, after reviewing its capital position, asset quality
trend, and adequacy in liquidity management," says Yvonne Zhang, a
Moody's VP/Senior Analyst.

TDB indicated its intention to gradually retire its US$75 million
EMTN through a combination of repurchases and repayments using its
short-term assets.  Based on TDB's 1H2009 financials, Moody's
notes that TDB has strengthened its liquidity position by reducing
its lending.  However, after reviewing TDB's GAP analysis, Moody's
believes that TDB's liquidity position would be significantly
weakened if it were to rely solely on its short-term assets to
retire the US$75 million EMTN.  The rating agency is also
concerned about the stability of TDB's deposits.  As the largest
corporate lender in Mongolia, TDB's corporate loans account for
the majority of the bank's loan portfolio.  As a result, almost
50% of TDB's deposits are from its corporate customers, which, in
Moody's view, are susceptible to economic volatilities than retail
deposits.

In addition, TDB's loan portfolio has experienced rapid
deterioration since the end of 2008, though the rate of
deterioration has moderated in recent months.  Non-performing
loans (defined as 90+ days past due) ratio was 3.4% at the end of
June 2009, compared with 1.6% at the end of 2008.  Loans 1-89 days
past due amounted to 8.5% at the end of June 2009, up from 1.4% at
the end of 2008.

At the same time, TDB's capital position has weakened.  Reported
tier 1 capital adequacy ratio and total CAR were 8.9% and 13.5% at
the end of June 2009 respectively, down from 10.2% and 14.7% at
the end of 2008.  This is partly due to the bank's dividend
distribution in May 2009 which roughly equaled its 2008 net
income.

Potential future rating actions will depend on how successfully
TDB manages its capital and liquidity positions.

Because the Mongolian government rating is lower than TDB's stand-
alone ratings, Moody's does not incorporate systemic support into
TDB's deposit and debt ratings.  As a result, these ratings are
based on the bank's stand-alone creditworthiness, measured by its
BFSR of D- and Baseline Credit Assessment of Ba3.

TDBM is headquartered in Ulaanbaatar, Mongolia.  It reported
assets of MNT659.3 billion (approximately US$514 million) at
December 2008.

Below is a list of the ratings for TDB:

   * Bank Financial Strength D- with negative outlook
   * Long-Term Bank Deposits (Foreign) B2 with negative outlook
   * Long-Term Bank Deposits (Domestic) Ba3 with negative outlook
   * Long-Term Issuer Rating (Foreign) Ba3 with negative outlook
   * Long-Term Issuer Rating (Domestic) Ba3 with negative outlook
   * Senior Unsecured (Foreign) Ba3 with negative outlook
   * Senior Unsecured MTN (Foreign) Ba3 with negative outlook
   * Subordinate MTN (Foreign) B1 with negative outlook
   * Short-Term Bank Deposits (Foreign and Domestic) NP
   * Short-Term Issuer Rating (Foreign and Domestic) NP
   * Other Short-Term (Foreign) NP


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


HANOVER FINANCE: Investor Withdraws NZ$697 Claim
------------------------------------------------
The New Zealand Herald reports that a small investor in Hanover
Finance Ltd. has dropped his NZ$697 Disputes Tribunal claim
against the company.

According to the report, Michael Fallows on September 10 wrote to
the tribunal requesting that his claim for NZ$697 owed to his
teenage daughter be dismissed.  "I now accept that the Disputes
Tribunal has no jurisdiction over my claim," the report quoted
Mr. Fallows as saying.

Hanover co-owner Mark Hotchin said it did not pressure Michael
Fallows, and the decision to discontinue the claim was made off
the claimant's own bat, the Herald notes.

The Troubled Company Reporter-Asia Pacific, citing a previous
report from The New Zealand Herald, said that Hanover Finance Ltd.
and its part-owner Mark Hotchin were taking a small investor to
the High Court over NZ$697.96 owed to the man's teenage daughter.

Mr. Fallows, who put NZ$500 on term deposit with Hanover in 2007
for his 14-year-old daughter Katie, lodged a claim with the
Disputes Tribunal in Tauranga, saying the company misled his
family by lying in its prospectus.  The investment was due to
mature in January 2012.  Mr. Fallows is claiming the principal
plus interest at 8.35%.

However, the Herald noted, Hanover has filed actions in the High
Court against Mr. Fallows and the tribunal, saying the latter does
not have jurisdiction to decide the matter.

                            About HFL

Hanover Finance Limited -- http://www.hanover.co.nz/--is
New Zealand's third-largest privately-owned finance company with
total assets of NZ$796 million at December 31, 2007.  The company
was established in 1984 to provide finance to the rural sector
and began lending to property developers and investors in 1995.
The loan portfolio has been gradually downsized since 2006 as a
result of a more cautious approach to lending in the face of
retail funding constraints.

                          *     *     *

The Troubled Company Reporter-Asia Pacific on Dec. 10, 2008,
reported that Hanover Finance's investors have voted in favor of
the company's Debt Restructure Proposals, including a plan to
fully repay NZ$552.6 million principal it owes over five years.


* NEW ZEALAND: Retail Sales Down 0.5% in July 2009
--------------------------------------------------
New Zealand seasonally adjusted total retail sales were down 0.5%
(NZ$25 million) in July, following flat sales in June 2009,
according to the country's statistics agency.  In core retailing,
which excludes the four vehicle-related industries, sales also
fell 0.5% (NZ$20 million).

Statistics New Zealand said the biggest changes were both in the
motor vehicle-related industries; automotive fuel retailing fell
2.9% (NZ$15 million) while motor vehicle retailing rose 2.1 %
(NZ$11 million).  These industries were the only two with
movements exceeding NZ$7 million; most industries moved up or down
by less than NZ$3 million.

In the core industries, the biggest movers were department stores
(down 2.2 % or NZ$7 million), recreational goods retailing (up
3.3 % or NZ$7 million), and accommodation (also up 3.3% or NZ$7
million).  Of the twenty core industries, thirteen showed sales
decreases in July 2009.

The total retail sales trend has increased 0.9% since February
2009, after falling 3.3 % between February 2008 and February 2009.
The core retail sales trend has been rising since September 1995
at an average of 0.4% per month.  However, this rate of increase
has slowed to 0.2% per month since December 2006.

Seasonally adjusted sales were up in Auckland (0.8%), and down in
all other regions.  The retail sales trend for the North Island
has been rising over the past five months, whereas the South
Island trend has been declining since February 2009.


===============
P A K I S T A N
===============


HOUSE BUILDING: Is Technically Bankrupt, Finance Adviser Says
-------------------------------------------------------------
Bloomberg News reports that GEO television, citing Finance Adviser
Shaukat Tarin, said Pakistan's state-run House Building Finance
Corp. is technically bankrupt after failing to recover 65% of its
loans.


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


TRIFECTA TRADING: Inability to Pay Taxes Spurs BIR Closure Order
----------------------------------------------------------------
The Bureau of Internal Revenue has ordered the closure of Trifecta
Trading Corp. after being found to have committed gross violations
of the National Internal Revenue of 1997, as amended (Tax Code),
including non-payment of correct Value-Added Tax (VAT), The Daily
Tribune reports.

According to the report, Trifecta was temporarily suspended from
operating its business after the closure order signed by BIR
Commissioner Sixto Esquivias IV was served and enforced.

The Tribune relates that the closure order was served after
Trifecta failed to comply with the 48-hour notice and five-day
value-added tax (VAT) notice issued and served by the BIR.

The notes investigation per Post-Reporting Notice by field men of
Revenue District Office (RDO) 40, Cubao, Quezon City showed
Trifecta owed the BIR deficiency VAT for 2007 and 2008 amounting
to PHP321,287.90, including increments.

Among its violations were failure to pay correct VAT, failure to
pay correct income tax, failure to supply correct and accurate
information, attempt to evade or defeat tax, failure to register
(as VAT taxpayer after exceeding the PHP1.5 million sales
threshold), and perjury.

Located in Quezon City, Philippines, Trifecta Trading Corp. is
engaged in the selling of pet supplies.


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


AVAGO TECH: Offers 95 Cents on Dollar for Floating Rate Notes
-------------------------------------------------------------
Avago Technologies Limited's wholly owned subsidiary, Avago
Technologies Finance Pte. Ltd. commenced a cash tender offer to
purchase up to US$250 million aggregate principal amount of its
outstanding notes as described below.  The tender offer is
described in an offer to purchase, dated September 3, 2009 and
related Letter of Transmittal.  Avago Finance reserves the right
to increase the Maximum Tender Amount subject to compliance with
applicable law.  The company expects to use net proceeds from the
previously completed initial public offering of Avago Technologies
Limited's ordinary shares and cash on hand to purchase the
outstanding notes.

Upon the terms and subject to the conditions described in the
Offer to Purchase and the Letter of Transmittal, and any
amendments or supplements to the foregoing, Avago Finance is
offering to purchase for cash the notes below in the following
Acceptance Priority Level:

                                Aggregate        Tender
                                Principal    Consideration
Title of            CUSIP       Amount        Per $1,000
Securities          Number     Outstanding  Principal Amount
----------          ------     -----------  ----------------
11-7/8% Senior
Subordinated
Notes due 2015      05336XAF8  US$247,500,000  US$1,065.00
                                                 US$20.00*
                                              ---------
                                              US$1,085.00
10-1/8% Senior
Notes due 2013      05336XAD3  US$403,121,000  US$1,035.00
                     U05212AA0                   US$20.00*
                                              ---------
                                              US$1,055.00

Senior Floating
Rate Notes
due 2013            05336XAE1  US$50,000,000     US$930.00
                                                 US$20.00*
                                              ---------
                                                US$950.00
       * early tender premium

The tender offer will expire at 12:00 midnight, New York City
time, on October 1, 2009, unless extended or earlier terminated.
Holders of notes that are validly tendered at or prior to 5:00
p.m., New York City time, on September 17, 2009 and accepted for
purchase will receive the Tender Offer Consideration for such
series, plus the applicable early tender premium set forth in the
table above.  Holders of notes validly tendered after the Early
Tender Date but before the Expiration Date and accepted for
purchase will receive the applicable Tender Offer Consideration,
but not the Early Tender Premium.  All holders of notes who
validly tender their notes on or before the Expiration Date and
whose notes are accepted for purchase will receive the applicable
consideration set forth in the table above, plus accrued and
unpaid interest from the last interest payment date to, but not
including, the payment date.

If notes are validly tendered in the tender offer such that the
aggregate principal amount tendered exceeds the Maximum Tender
Amount, Avago Finance will accept for purchase, up to the Maximum
Tender Amount, notes in accordance with the Acceptance Priority
Level in numerical priority order.  Avago Finance will apply the
Maximum Tender Amount first to purchase the 11-7/8% Notes.  To the
extent any amounts remain in the Maximum Tender Amount after Avago
Finance purchases the 11-7/8% Notes, Avago Finance will then apply
the balance to purchase the 10-1/8% Notes, subject to proration,
if applicable, based on the aggregate principal amount of the 10-
1/8% Notes validly tendered, rounded down to the nearest integral
multiple of US$1,000.  To the extent any amounts remain in the
Maximum Tender Amount after Avago Finance purchases the 11-7/8%
Notes and the 10-1/8% Notes, Avago Finance will then apply the
balance to purchase the Floating Rate Notes, subject to proration,
if applicable, based on the aggregate principal amount of the
Floating Rate Notes validly tendered, rounded down to the nearest
integral multiple of US$1,000.

Payment for the 11-7/8% Notes validly tendered at or before the
Early Tender Date and accepted for purchase is expected to be made
promptly after the Early Tender Date.

Payment for (a) the 11-7/8% Notes validly tendered after the Early
Tender Date and at or before the Expiration Date and accepted for
purchase, and (b) the 10-1/8% Notes and the Floating Rate Notes
validly tendered at or before the Expiration Date and accepted for
purchase is expected to be made promptly after the Expiration
Date.

Tenders of the notes may be withdrawn at any time at or prior to
5:00 p.m., New York City time, on September 17, 2009, but may not
be withdrawn thereafter.

The consummation of the tender offer is not conditioned upon any
minimum amount of notes being tendered, but is conditioned upon
the satisfaction or waiver of the conditions set forth in the
Offer to Purchase.

Citi is the sole dealer manager of the tender offer.  Global
Bondholder Services Corporation has been retained to serve as the
depositary and information agent.

None of Avago Finance or its affiliates, its board of directors,
the dealer manager, the depositary and information agent or the
trustee for the notes, makes any recommendation as to whether
holders of the notes should tender or refrain from tendering the
notes.

                    About Avago Technologies

Headquartered both in San Jose, California, and in Singapore,
Avago Technologies Holdings Pte. Ltd. -- http://www.avagotech.com/
--   is a semiconductor company, with approximately 6,500
employees worldwide.  Avago provides an extensive range of analog,
mixed-signal and optoelectronic components and subsystems to more
than 40,000 customers.  The company's products serve four end
markets: industrial and automotive, wired networking, wireless
communications, and computer peripherals.

Worldwide Design, Manufacturing and Marketing Centers in the
United States, Italy, Germany, Singapore, Korea, China, Japan
and Malaysia.

Avago Technologies is the successor to the Semiconductor
Products Group of Agilent.  Avago Technologies purchased the
business of SPG as of December 1, 2005, for US$2.6 billion in
cash.

Avago Technologies had total assets of US$1,775,000,000 against
debts of US$1,017,000,000 as of August 2, 2009.

                       *     *     *

As reported by the Troubled Company Reporter-Asia Pacific on
Jan. 11, 2008, Standard & Poor's Ratings Services removed its
ratings on San Jose, Calif.- and Singapore-based Avago
Technologies Finance Pte. Ltd. and related entities, from
CreditWatch, where they were placed on Sept. 19, 2007, with
positive implications, and raised the company's corporate credit
rating to 'BB-' from 'B'.


LEHMAN BROTHERS: Singaporean Minibond Investors Sue RBS
-------------------------------------------------------
Andrea Tan and Valarie Tan at Bloomberg News report that a group
of Singapore investors sued the three parties, including Royal
Bank of Scotland Group Plc, responsible for separately issuing,
arranging and distributing securities linked to Lehman Brothers
Holdings Inc. for misrepresentation and negligence.  RBS,
according to Bloomberg, is being sued because it now owns the ABN
Amro Holding NV Singapore unit that originally sold the products.

Citing a statement issued by the Minibond Investors Action Group's
lawyer, Conrad Campos, on September 10, Bloomberg says the group
alleged that the ABN Amro Holding NV Singapore unit, which is now
owned by RBS, failed to understand what it was selling.

According to the report, the group represents more than 165 people
with at least SGD20 million (US$14 million) of investments in
Lehman notes through various financial institutions in Singapore.

The issuer, Minibond Limited, and arranger, Lehman Brothers
Singapore Pte Ltd, are also being sued, according to the statement
cited by Bloomberg.

                       About Lehman Brothers

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

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

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

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

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

               International Operations Collapse

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

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

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


                         *********

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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